Category: Process & Frameworks

Checklists, models, and structured approaches to marketing. Frameworks that make complex challenges simpler, repeatable, and easier to scale across teams.

  • My weekly routine

    My weekly routine

    I’ve noticed recently how the advent of AI tools has significantly changed my work routine during the course of the week. Historically, Monday morning has been “Well that was a nice weekend, what the hell was I doing at work?”. This then takes me to my scribbled notes about what I was working on and what was left undone.

    The problem with this approach is that it can keep you in the task-oriented world rather than stepping back to looking at your higher level goals. Rather than thinking “How are we going to win this market? What were those great ideas I had a few weeks ago? How can I make progress on the bigger picture?”, we jump straight into the pile of TODOs.

    My way round this is to use my own AI bot “Skynet”, as an additional copilot*. All of my knowledge from the last 13 years including a recency bias adjustment accessible through a simple interface. This means that every Monday morning I can do research from my knowledge about how to address the issues at hand.

    A simple example from this morning, I was looking for some research I had done a couple of years ago about marketing performance measurements – leads, MQLs, opp values, reporting approaches. Rather than trawling through my old notes, a lot of which is in my own childlike handwriting (so yes, good OCR is key to this process), I just ask Skynet and it gives me a well structured starting point which includes all of those little details that I would otherwise forget. This last point is the most important of why building your own chatbot is important. ChatGPT will give you generic answers but you have your own experience that you need to include, otherwise you might as well just do a Google search.

    * Microsoft has the best brand name here, just not quite the best product yet…


  • Stage 1 – getting set up: foundations of my AI-powered chatbot project

    Stage 1 – getting set up: foundations of my AI-powered chatbot project

    Over the past few months, I’ve been building something a bit different: a real-time AI-powered assistant designed to help me work better with my own content. The goal is to create a system that can scan and catalog documents, blog posts, audio recordings, and notes, then surface that information back to me as I need it—almost like a second brain. I wanted it to pull from tools I already use daily, like Google Sheets, OneNote, and GitHub, and use technologies like Pinecone, OpenAI, and Google Cloud to power the intelligence behind it.

    This blog series is a step-by-step breakdown of how I built it—from a messy OneNote notebook into a working system. Each post will focus on one key stage, including the code, architecture, and lessons learned along the way. This first post is solely about the tech stack that I chose, actually one of the most fun stages.


    Setting Up the Environment for a Python-Based AI Chatbot

    This project runs on Linux, primarily because I want to use Python, which I have some basic experience with. Here’s how I set up the development environment and supporting tools.

    Core Tools and Services

    • Google Cloud
      • Speech-to-Text for audio transcription
      • Cloud Run to execute background processing tasks
      • Google Sheets for structured data storage (e.g., cataloging blog posts)
    • OneDrive (Personal) for general document storage
    • iCloud Drive for mobile voice recordings
    • GitHub to manage Python code and version control
    • Trello as a lightweight project tracker
    • ChatGPT to assist with development and planning

    Getting Linux + WSL Working Smoothly

    There were a few initial stumbling blocks in getting everything up and running, especially around Windows Subsystem for Linux (WSL). Here’s the distilled process:

    1. Launch CMD as Admin, then enter WSL with:
      wsl
    2. Activate the virtual Python environment:
      source myenv/bin/activate
    3. Navigate to the correct project folder:
      cd ~/skynet/

    Code and Repository Setup

    • All code is version-controlled in GitHub
    • To update code:
      git add PopulateChatSystemDataRepository.py
      git commit -m "Message"
      git push origin main
      git pull origin main
    • Libraries required when switching machines:
      pip install gspread
      pip install oauth2client

    Purpose of This Setup

    One of the key tasks here is to catalog blog posts into a Google Sheet using Python:

    python3 SendDataToGoogleSheets.py

    This setup forms the backbone of a knowledge base that can be queried by an AI chatbot.

    Why Use Google Cloud Run?

    I plan to regularly publish new blog posts and documents. These need to be automatically picked up by a cloud-based system, not just left on a drive. To do that, I’m using Google Cloud Run to host the background process that parses and ingests this content.

    Useful Links:

    The service is named skynet, though it hasn’t been deployed live yet—waiting until the code is fully tested.

    Setting Up the Google Sheet Database

    1. Create a Google Sheet and give it a meaningful name (e.g., “Chat System Data Repository”).
    2. Enable the Google Sheets API in the Google Cloud Console.
    3. Set up the API key and credentials for access.
    4. Code integration is done using Python with the gspread library—no Zapier or low-code tools.

    Data Format for Each Entry

    Each blog post entry should include:

    • Message ID
    • User ID
    • Timestamp
    • Message Text
    • Source (e.g., Slack, WhatsApp)
    • Response Status (e.g., Processed, Pending)

    Parsed via Python’s feedparser, which extracts standard RSS fields such as title, link, description, content, and publication time.

    Next Steps

    There are two major next steps:

    1. Add additional content sources into the pipeline (see Trello board).
    2. For any new source, take the data through the same ingestion process.

    Currently, everything runs through the PopulateChatSystemDataRepository.py script, which has been updated to handle edge cases like escape characters.

    Now that the core data is in place inside a Google Sheet, the next stage is testing the pipeline end-to-end. Once that’s working, I’ll expand to include additional data sources.


  • What makes a great company culture?

    What makes a great company culture?

    A Year at Syskit

    This is a personal view. All I can write about is what I find to be a great culture, and I know others will have a very different point of view.

    And I definitely have it in my employer, Syskit. I have been lucky to work at some great companies (and some not so great companies…). But for some very specific reasons I believe Syskit to be at the top of that group. I have now been there for a full year so I wanted to do a quick review of why it’s so good, in no particular order.

    Fewer meetings

    As a company grows it gets more and more difficult to keep to a common path and collaborate effectively across so many different people.

    The answer to this problem is most definitely not having more meetings though. At first look, this seems like a good response. We all want to keep in sync with each other we’re struggling working remotely (if this is the case). Why not put in some regular weekly meetings or “catch-ups” to achieve that?

    From my experience, a great company culture needs as little time as possible in meetings. Why? First of all the obvious – nobody likes meetings! But there is something more subtle. There are some very important meetings that are needed for a company to run and those should be kept. What I believe should be lost, and what I see in great companies is the removal of “catch-ups” and other weekly meetings. My starting point with all of my colleagues is that I trust them all and know that they know their jobs. Why then do I need a meeting to check in? What information is actually being communicated, that couldn’t be sent in an email?

    At Syskit, I have now managed to get my weekly meetings down to about 4 or 5 per week. Most days, I have days with absolutely no meetings at all. Crucial to a well run company because it frees up your time for more impactful deep work. Looking back at the times when I have made big strategic changes or fixed really knotty problems they are always on days which are completely free. This is why I protect them so closely.

    Crucially, this is the culture at Syskit and it fits me very well 😊

    Informality

    It is hard to explain why this is so important to me and it’s not just a “work thing”. It is important to have structures and models in the workplace, but that doesn’t mean to say we need a culture of formality. I can genuinely say that I enjoy the company of my colleagues, that we chat about things other than work, and that we “get on”.

    My test for this is always:

    “If you were told that you were going to be stuck on a three hour train journey with a colleague with no books or phones, how would you feel about that?”.

    I believe this tells you a lot about whether you are on the same wavelength as your colleagues and for me informality is very important. We are not doing God’s work here (as an old boss put it), and I believe informality is a crucial part of any culture of smart people.

    A great product

    Why should this matter when we are talking about culture? Surely a great product is just about your company’s commercial viability?

    I think it is a lot more than that. You want to believe that you are genuinely creating something great. You might not be saving the world with your product, but you should be proud of it and for me, that is a really important part of company culture.

    Again, I have a test for this:

    “Would I recommend this product to a friend? I mean, a “non-work” friend?”

    I have worked at places where I wouldn’t recommend the company’s product to my friends, and that is fine. But I would recommend Syskit’s product to friends (who happen to be Microsoft 365 administrators! – that’s not all of them 😊), and that means that there is an honesty about the work which I think is important.

    This is strongly related to another point which is a focus on the numbers. Is the company hitting its targets?

    Again, why does this matter when we are talking about culture? Personally, I much prefer conversations in the workplace which are about customers, the product and whether the company is doing well. I find this more interesting than conversations about HR policy, organisation, and holiday entitlement.

    So what I like in a workplace is spending time talking about the commercials and driving the success of the company. It is only the numbers that show whether you are succeeding in your role and again, that is part of the culture.

    Expertise

    Again, a strange one perhaps. But I would argue in marketing in particular, that there is a very wide range in expertise in the market. Marketing well is very difficult. It is subtle, complex, often unintuitive and I would argue that B2B are marketing is just a completely different field to B2C. Budget allocation is difficult; explaining what you are doing to non marketers is difficult; getting alignment between marketing and other areas is difficult; focusing on three things instead of 30 is difficult. And getting into the minds of customers is the most difficult thing of all.

    Working with other experts and experienced people is crucial for me and I believe crucial for the success of any company. If you are working with people who think that marketing is just about optimising some Google ads then I believe you might struggle to grow in that environment.

    All of this is why I think expertise in a company is crucial to the culture. You need to be having intelligent conversations with people about tricky problems and personally, that is what I enjoy most about it.

    If any of this sounds even remotely interesting and you are looking for a new role in any field – marketing, development, product, sales – then reach out to me through LinkedIn and let’s talk.

  • How to add ChatGPT to your own website

    How to add ChatGPT to your own website

    There are many stages of exploring ChatGPT:

    • Reading about it on the Internet
    • Finding a website with a chatbot on it (for example, https://chat.openai.com/), and having a go yourself, if only to see what everybody is talking about
    • Adding a generic chatbot to your own website. I’m not quite sure why you would do this, but it’s part of the process understanding how to integrate ChatGPT into your website
    • (now it starts to get more interesting…) automatically creating an FAQ for your website based on your content
    • Creating a ChatGPT bot that can go on your site for your customers to use to find out more about you and your company

    I’ll talk about the first four points here and then, in the next article, the last point. This is a considerably bigger task, so needs a post of its own. The end goal is to allow customers and potential customers to come to your site and ask questions about your offering. There are two advantages to this approach:

    • If you’re resource constrained, you don’t have the people to be on the phones answering questions all the time.
    • Consistency. You can manage and see what’s being said to your customers on the website.

    But where should I start?


    Reading about it on the Internet

    Not a whole lot more I can add here. If anything it’s hard to escape articles about the topic. The BBC has some good articles

    Playing with a chatbot yourself

    The first question most people have is “But are these things any good? They’ll never fool me!”. Don’t listen to others, try it out yourself. I’d suggest that the openAI website itself is a great starting point. You may need to create credentials first, but spending some time here will really show you the power of what everybody is talking about. Here’s a pretty random example. I asked “What is account based marketing?”:

    That’s very good. Yes, it’s a little generic, but I’ve done that with no effort, no research. If you wanted to find out about a new topic at work, 30 minutes with chatGPT would get you on your way.

    Adding a generic chatbot to your site

    Really this is a preparatory step before going on to the next more interesting stage. But it does introduce some of the useful resources. 

    I use WordPress for my site, set my example here is for WP. But the principle is the same – the difficult bit is creating the training data and then training up a model. If you can do that then getting it on WordPress is easy.

    I started at: https://www.forbes.com/sites/barrycollins/2023/02/18/how-to-build-a-chatgpt-chatbot-for-your-website-in-minutes/. Rather than me writing out a step by step guide, all of which I would be plagiarising from this and related sites, I’d suggest working through the guide here (if you’re willing to wait through all the pop ups that plague of the modern website!). 

    This is where you’re really starting:

    In particular, I want to highlight the Jordy Meow plugin. This is an incredible bit of kit, I was repeatedly pleasantly surprised by what was available and how easy it was to install and get working. This is no mean feet given that we’re moving into the territory have training AI models. 

    Like any WordPress plugin you install it from your dashboard. Then, on your WordPress site you’ll have something that looks a bit like the following:

    Creating an FAQ for your website

    So far we’ve looked at generic chatbots which are all over the web. But you want something for your website, based on your industry. 

    Again, I’m not going to go through the details of doing this because there are some fantastic notes on the AI engine help pages, and it will be different for different sites. But the most important point, the place where you need to spend most time and the place where you can really differentiate is on the training content. This will sound familiar to anybody who’s worked in marketing, but if you’re creating something to help you generate interesting content, then you have to have some interesting content to start with. I’ve used the process on this site to create 100+ questions and answers, without having to write a single question myself. The engine is so powerful that you can just give it a block of well written marketing text and it will automatically create some questions and answers from that text. To create the FAQs on this site I simply fed the engine the 94 blog posts I’ve written over the last 10 years and asked it to give me some questions based on this input. 

    You can see some of the results on this page. Remember all of these were auto generated, including the actual questions:

    I’ve been enormously impressed by AI engine and the work done by Meow apps

    All great, but isn’t this a marketing blog? This just feels like a lot of technical detail! Well yes, that’s true. But one of the ways you can differentiate yourself from the crowd as a marketer is by moving on from just talking about technology to actually showcasing it. You can significantly boost your career by properly understanding how AI technologies can impact marketing. This needs to be more than just “Add AI to your marketing efforts!”. Your claims need substance and this is where the hard work comes in. I had the advantage that I’ve been writing blog posts for 10 years or more, so I had the source material. But you have to start somewhere, and this is one way to take the content that you’re writing and getting out to more people in a more palatable form.

    Any further questions please feel free to get in touch to discuss how I can help.


  • The marketing flywheel – an alternative to the marketing funnel

    The marketing flywheel – an alternative to the marketing funnel

    A lot has already been written about how the old marketing funnel model is no longer as relevant in modern B2B organisations as it used to be, and how a flywheel model is more appropriate for how customers really buy (as an old colleague said to me “The person who invented the marketing funnel should be shot!”. I think that’s excessive, but it makes the point…). Here’s how HubSpot describe the alternative approach: https://www.hubspot.com/flywheel.

    But rather than just repeat the work of others, I wanted to write an article on a model that I’ve been using for a few years now and which I found very helpful when making practical decisions about marketing activities. Models are all well and good but the reality is we have to make calls every day on where to spend our marketing budget and for this we need a robust model to help guide us in the right direction. Should we spend more on PPC ads? On brand building? On events? What? That’s more importantly, why? You will be asked why you decided to spend all of the budget on activity A rather than B. You need to have answers to those questions.

    Here is the short version of my PowerPoint that goes through this model (there is an 80 slide version of this that I’m working on as well). To summarise the context for this:

    1. It’s focused on B2B marketing; a small to medium sized businesses; in the tech space; in the English speaking world. It certainly won’t be relevant to everyone – take the best, leave the rest.
    2. It’s really only about marketing. For this to really work it has to be part of an overall marketing/sales/product plan.
    3. It assumes you already have a little traction in the market. If you’re starting from zero brand awareness, that’s a different job.
    4. There isn’t really anything here about the order in which to do things. I.e. what’s the strategy to do the right things first to make the biggest impact earliest? That requires a diagnosis of your company’s current performance and challenges, which is different for every organisation. But that’s the most interesting and difficult part of the job. If you try to do everything in this deck all at once you will fail – the trick is getting the ordering correct.
    5. The plan relies on and assumes a relentless focus on the customers’ real problems. This is a cliche for a reason – the best marketing plan in the world will fail if you don’t have a deep understanding of the customers’ problems.
    6. It uses the “Pincer” GTM strategy, where you are selling to both the senior decision maker and the end user at the same time. If you only need to reach one of those people, your job is much easier 🙂

    But to repeat, having some sort of model for how marketing works is crucial. Otherwise how can you make decisions about which levers to pull? About what effect you think you’re having? Of course sales is the end goal here but you need to understand what happens before the customer makes the purchase if you want to influence what happens at the end. And in a B2B process that can take months if not years from initial awareness to signing on the dotted line. Understanding the drivers between these two stages is the key to knowing how are you can influence the process and increasing the chances of hitting the revenue goals.

    A final note – all of this is, of course, based on the work of many others and I’ve blatantly taken diagrams and paragraphs from other marketing practitioners. Almost all of the ideas here from other people, all I’ve tried to do is bring it together and find the links and similarities. Any errors are mine.


  • How to make decisions

    How to make decisions

    There’s a myth that as you get more senior, you get to make more autonomous decisions about what happens in your business – what strategies to pursue, tools to buy, markets to go after and so on. “I’m the Head of Marketing, so surely I decide all the marketing stuff!?”

    In fact it’s the opposite – the more senior you get, the fewer autonomous decisions you make. Why? Because those decisions have a wider impact, so you need to consult more with others and bring others along with you. That doesn’t mean you don’t own decisions – you still need to lead on making the right choices and pushing changes through. But you don’t get to do that all on your own.

    I’ve used the following framework to help me decide how to make different types of calls – hopefully you’ll find it useful. Whenever a new decision needs to be made, I try to classify it in to one of three categories:

    1. Decisions I can make on my own. Using the example of marketing, there are certain things which have more or less zero impact outside your department. Things like “What subject should I put in this email header? What messaging should we use for this campaign? How should we set up Marketo to work more effectively? What ideas do we have for getting more people on the newsletter?”. I struggle to think of more! You might still choose to communicate what you’re doing for info – transparency is always preferable – but it’s optional and something you might do after the fact. I think, for a senior role, this is around 5-10% of the decisions you make.
    2. Decisions that I make, but where I need to consult others. If something is a marketing problem, then you should make the call. However, this doesn’t mean you don’t need to consult your partners first – Sales, Product, Finance, HR, Technology (depending on what the question is of course). Most decisions you make will have upstream or downstream consequences – if I change our Marketing Automation tool, what will happen to the leads going to Sales? If I decide to target Belgium instead of Netherlands, how will that impact Sales figures? If I decide to position our product differently, how does that align with the Product roadmap? And so on. Crucially, this isn’t just about telling people what you’re doing – you should be consulting with those people to really understand the impact, then adjusting your thoughts accordingly. The trick is being clear upfront about the decision-making process – that yes, you’ll be deciding whether to switch to Marketo, Hubspot or Pardot, and you’ll be listening to everyone’s views on the subject. But ultimately you’ll carry the can for that decision, so it needs to be yours. I estimate around 70-80% of decisions are like this, depending on your role.
    3. Decisions that I want to happen/influence, but aren’t mine to make. We all depend on each other to be successful – the success of a marketing department is wholly dependent on the activities of other teams. We can’t sell a product that doesn’t exist (well, you can, but you shouldn’t!). Sales teams close our pipeline. HR helps us build our team, and so on. And we’ll often need those teams to do things for us. But if it’s a Product, Sales, Finance or HR decision to make, then it’s not your call – and it’s important to recognise that. Your role is to try and influence that plan. Sometimes you’ll get your way and sometimes you won’t. If it’s the latter, you need to adjust your plans accordingly and still find a path to success – there will be reasons why option B was taken instead of option A, and you need to find a way to accommodate that decision. Around 10-15% of decisions are like this, in my experience.

    Being clear at the start of a process on which of these you’ll take is really the difference between a decision that lands with an organisation (because you’ve taken their views into account) and a decision that never quite gets taken up and implemented. The real skill is balancing the consultative approach with the importance of actually making a decision and driving it through. Not easy, but it’s a far stronger approach than making calls on your own – and none of them ever being implemented.


  • Beware roles that advertise long hours

    Beware roles that advertise long hours

    A friend is looking for a new role at the moment. He’s lucky enough to be able to pick and choose what he goes for, so I asked “What really attracts you to a job? What puts you off?”. It’s always interesting to know what people are looking for, how to genuinely attract great candidates (or put them off of course).

    His response was interesting – “The biggest red flag is when they talk about long hours. Something like ‘This won’t be a 9-5 you know!’. Something like that really worries me”. I pushed a bit further, wondering what it was in particular that worried him.

    “It’s a sign that they don’t know what they’re doing. Any manager who know how to do his or her job, should know how to fix processes and automate systems so that the job could be done in normal hours. And I don’t want to work for someone who doesn’t know what they’re doing – it will just frustrate me”.

    There’s a lot being written at the moment of how important flexible working is, for work/life balance. And a few companies are even pushing towards 4 days weeks or 4½ day weeks. But that wasn’t the point here – the issue was that, if a manager is consistently asking their team to work 8am-6pm, or longer, it shows that they are winging it – they’re not making the effort to improve productivity, by automating systems and fixing processes, and therefore don’t know how to run a department properly. And who wants to work for somebody like that!?

    Of course there are blips – sometimes end-of-quarter can get a bit much. Planning processes often don’t fit into a neat 37 hour week. And if you’re out on the road, you have to do what needs to be done in the time available. But in the general course of things, 37 hours should be enough to do most roles.

    Crucially though, if this doesn’t sound like reality for you, remember, it’s not completely up to you to fix it. This is largely the role of a good operational manager – someone who understands the importance of fixing processes so that that painful activity only takes 20 minutes next time, instead of 5 hours. This is a Sisyphean task – hence why it’s called Continuous Improvement – but you need to get started.

    I’ve always believed in automating and fixing processes. Sometimes this come from buying tools, sometimes from fixing processes, often a combination of the two. Some of the improvements we’ve made in marketing the last six months include:

    1. Using Canva to significantly speed up production of ads. We’ve created core templates so that we’re not asking the design team to repeatedly produce the same thing, and we can create ads quickly in multiple languages.
    2. Improve processes around briefs and tickets – like any fast growing company, there’s too much to do. So many great ideas, so little time! For one part of marketing we’ve already moved off JIRA and onto Airtable, fixing lots of associated workflows at the same time, and will likely follow suit for other areas too. It’s improved flow enormously and cut out unnecessary manual steps that caused a lot of pain for various folk.
    3. Improve autonomy for regional marketers. This isn’t something a tool can fix – this is about how you collaborate as a team, when you need to ask for permission to do something, when you can approve something yourself and so on. Personally I’ve always believed in “Ask for forgiveness, not permission”, so I strongly encourage everyone to do things, to try things without checking in with five other people first. If, for example, you spot an opportunity to place an ad somewhere, and it’s in budget – go for it!
    4. Brand guidelines – again, rather than asking for all work to be checked all the time, by providing the company with brand guidelines, it enables people to create ads and copy themselves – they can do the work themselves to figure out if, for example, they’re using the logo in the right way, without checking in with someone first.
    5. WordPress permissions. On the same theme of autonomy and delegation – set permissions for people on your website so that, for different sorts of copy, the right people can make the changes needed as-and-when. NB: these permissions should be very different for the homepage vs. a blog article! But for the latter, any marketer should be able to write, publish and share a blog on their own.

    These all sound like quite minor things. But continuous improvement is a long game – lots of small fixes that, one by one, lead to enormous improvements in productivity. We’ve already improved our speed to create agile, relevant ads down from weeks to hours and, hopefully, given the freedom to various marketers to jump on opportunities when they see them. And we’ve certainly made the process of managing expenses much easier – as an employee it’s almost trivial now, and I know there’s far less pain for our finance team too.

    So anyway, next time you go for a job and you hear a lighthearted quip like “We like to burn the midnight oil here, that’s alright isn’t it?” – run a mile. It’s not laziness on your part, it’s a sign that your future manager doesn’t quite know how to run a department, and that’s something that will impact your job satisfaction far more than the number of working hours in the day.


  • Why ROI calculators aren’t enough

    Why ROI calculators aren’t enough

    ROI calculators are a pretty common tool amongst B2B marketers. On the face of it, the logic is simple – show a calculation of how the time saved from subscribing to your product equates to money and how that money is less than the annual subscription cost charged. Then surely the sale should be in the bag – who wouldn’t want to save $$, how could anyone say No?

    I think this sort of calculator is useful for a limited purpose – it provides a supporting tool for your advocates in the org to help them convince their bosses to make the purchase. And for that it’s valuable. However, I’d argue it doesn’t help with the core problem – convincing buyers of the real value they’re getting – as it doesn’t help with the core reasons why people actually make purchases like yours.

    An ROI calculator usually looks something like:

    1. Your devs/finance team/marketing team/HR/etc. cost $50 an hour per person in fully loaded costs.
    2. At the moment, 10 of them are wasting an hour a day on repetitive tasks – tasks that your product can automate away.
    3. In any given week that’s 10x50x5 = $2,500 wasted on pointless tasks. In a year, that’s $125k.
    4. Your software only costs $35k per year. So that’s an ROI of over 250% ! Or more simply, a straight saving of $90k a year.

    At this point, you can produce your pen and ask them sign on the dotted line (well, click a button on a Docusign document) and start figuring out your commission.

    Why doesn’t this work? There’s some lower level arguments to be made against a calculation like this – do you really believe the figures? Is all of that time genuinely saved or does someone else still need to do some manual work somewhere? Is the org really doing the task that badly today? And of course this is missing the implementation fees and ongoing work needed to keep the automated system working.

    But I think there’s something more important, particularly when selling to senior buyers. There’s a dual problem with this calculation – firstly, that to make this saving the company would effectively have to fire someone, and secondly, in today’s environment, hiring and retaining staff is a far bigger headache than saving costs from letting people go. The calculation assumes an environment where the manager currently has too many people working for them, and is being asked to make savings. But this isn’t the reality for almost every manager I’ve spoken to in the last 10 years – the perennial problem managers have is growth and finding talent to fuel that growth. What they’re asking is “How do I find great people? I’m short-staffed, and just can’t hire the people I need. And when I do hire them, it’s such a hot job-market, I lose them unless I keep them happy!”. I can’t remember a single situation ever where someone has bought a product/service from a vendor, then “made the savings” by firing someone – it just doesn’t happen, and so is not believable to a client.

    The real pain that clients have is hiring a great team, building and developing that team, then keeping them engaged. By building that great team, they not only get the obvious advantages and pride of running a great organisation, they also get multiple benefits from being able to provide much more value to the rest of the org. I.e. instead of my team being seen as a “Cost centre, to be reduced wherever possible”, it’s seen as “An incredibly value part of the company that’s helping us grow and be successful”. This “Soft ROI” is what senior buyers are really worried about. Here’s how I’d describe the world of the average finance team, from talking to our customers:

    1. Finance teams are generally seen as a “necessary cost”. There is an unfair perception that they add little value.
    2. They spend enormous amounts of time on manual drudge work. I’ve seen this sort of activity called things like “Hamster work”, “Treacle” and similar terms, but the idea is the same – you have humans doing work that computers were designed to do.
    3. This is particularly bad in finance teams – practices that would be deemed unacceptable in a development or marketing department – are somehow okay in finance. I’ve seen teams working till midnight manually refreshing spreadsheets every 30 minutes, teams spending 1-2 weeks on month end (I mean, there are only 4 weeks in the actual month!). This sort of time-wasting has been reduced or removed entirely in most other parts of a high-functioning company.
    4. This drudge work leads to a very specific people problem – how do you keep your talented people motivated? There’s a chance that, when you hired them, you weren’t fully transparent with the manual work involved – now they’re here and they’ve had that rude awakening, they’re not happy about it, they’re getting de-motivated, and they’ll start to look for other opportunities.
    5. In parallel, your team isn’t doing any particularly interesting or value-add activity. This is problem both in reality and perception – that crucial project to work out the ROI on your vast marketing budget has been on hold for 9 months now, leading to significant waste. And your boss can only ask you so many times why it hasn’t happened yet?
    6. This all leads to employee churn, poor performance overall, and an endless cycle of hiring, and less-than-impactful work.

    This is an example from the world of finance, but of course the same could be said for other teams – though I’d argue to different degrees. The sort of waste I’ve seen in finance teams was ironed out years ago in development, where you see people automatically running 512 cloud-based tests at the push of a (build) button without a manual step in sight – the sort of automation finance teams can only dream of.

    How do you present this value, if an ROI calculator isn’t enough? Through great marketing – all great marketing is based on a deep understanding of your customers’ genuine pain points and how you can resolve those pain points. Instead of (or “as well as”) an ROI calculator, I’d be writing content about the pain points above. Show how you understand your customers’ worlds, how you understand that pain and can help solve it. It’s also a question of positioning – if you position your product as “A tool that helps save time”, then you’ll never really resonate with the manager’s pain. Alternatively if you position your product as “A service that supports you transforming your team from a cost centre [to be reduced] into a high-performing and motivated function valued by the rest of the company” – and you can connect the dots between that message and your product – then this is a much stronger way to appeal to the target audience.

    As I mention, I think ROI calculators still have their place. Once you’re in the door, and you have an advocate on the inside, then a tool like this can really help him/her make the case to their boss, who might want some numbers to back up the investment. But you need to win hearts and minds first – and that happens by understanding peoples’ real problems, and finding a way to help them solve those problems – ideally with the help of your product of course.


  • How Collaboration Can Grow Revenue

    How Collaboration Can Grow Revenue

    Why do Marketing and Sales departments need to collaborate? Sure, it’s nice, but beyond people getting on better together, how can it really impact the numbers, the outcomes for the business?

    We’ve just spent a month at Redgate improving the collaboration between the two departments and we can see the direct and measurable impact on new opportunity generation. Here’s what we did and what happened. NB: None of this is rocket science, these all seem like really obvious things to do. But it’s quite rare to see such a direct impact on the numbers, so I wanted to share “What we actually did” as it may be useful to others – it can be easy to miss some of the basics.

    What is Collaboration?

    To start with the obvious, it’s nothing to do with whether you “get on” or not, whether you’re friends. We have great relationships between the marketing and sales departments, we get on incredibly well, and we talk all the time. But that’s not collaboration.

    I feel there are three levels of what could be called “collaboration”:

    1. Sitting in a (virtual) room telling each other things – what your plans are, what the latest results are, your ideas for the future.
    2. Sitting in a (virtual) room listening to each other. A step up from above, actively finding out what others are working on, trying to understand their goals, and how you might fit in.
    3. Sitting in a (virtual) room looking at the same numbers, working on a common goal

    The first two are fine, and communication is great. But the third is what I consider true collaboration – what is our shared goal? What are the (shared) numbers showing? What can we do to fix this, together?

    And it’s the third of these that we kicked off at the start of 2021, and has shown direct impact on the outcomes we care about.

    What Did We Do?

    Redgate has a good problem (and has had that problem for a while) – too many “leads”. We get around 500 leads a day (a lead being “Someone who expresses an interest in one of our offerings, and gives us some of their details”). Great, what’s the problem? The problem is that salespeople’s time is invaluable and scarce. If we asked Sales to follow up on all 500 leads every day, they would waste an incredible amount of time chasing low quality leads, tyre-kickers, people who will never buy from us and so on.

    This is a standard problem in marketing/sales and the solution is some sort of qualification process. There are various models out there (the SiriusDecisions Demand Waterfall being one of the more common frameworks), but we have a pretty simple process – use Marketo to score leads on two perpendicular scales – engagement, and firmographics, then only pass the good Marketing Qualified Leads (MQLs – the Glenngarry leads!) through to Sales. It’s generally around 10% of the total, or 50 a day. Then keep the rest back to be nurtured from within Marketo until they’re ready for prime time.

    So far, so easy. But of course the point is that it isn’t easy. When you move from theory into practice, here are some of the problems you hit:

    1. What you think is an MQL, is not was Sales think is an MQL
    2. Worse – different sales folk in different offices have different views on what should or should count
    3. Different salespeople are happy with, and capable of taking on leads at different “stages” – from very early “Can I have a chat with someone?” enquiries to late stage “Can I get a quote please?” orders
    4. Even if you agree on criteria, what cadence should a salesperson follow with different types of leads? Three calls? A call, an email, then a call? When should they give up? How do you know if the process is being followed?
    5. How much extra work should sales people do to add context and info for a lead? Marketo/Marketing provides some data (industry, job title, company info, web usage etc), but not as much as everyone would like
    6. If you agree on lead qualification, how do you get the right leads to the right people in a timely manner?
    7. How do you learn and adjust qualification over time? If you find leads of type X are gold and leads of type Y never seem to go anywhere, how do you change the qualification process quickly? How do you get that feedback back in to marketing from an enormous and global Sales team?

    Most of this is operational – needing marketing operations and sales operations teams to work together alongside the rest of their colleagues. And there’s a lot to figure out here. But these are the things we did in January to try and tackle some of these problems. Not everything went smoothly, but enough went well to achieve noticeable differences in the numbers. And everything here was a joint project between various people in Marketing and Sales at different levels.

    • Reporting. We started by putting together some basic reports of MQLs and Opportunity numbers. We focused on “Consistent, simple but imprecise” over “Complicated but accurate”. And we spent time running these through with Marketing and Sales leadership, to see if we had a common agreement that we were looking at the right things.
    • Definitions. Next, we realised there were a lot of different definitions out there – what was an “Inbound lead”? What was a “Good download”? What should we do with “renewal referrals”? So we spent a lot of time talking these through – in 95% of cases, we were all aligned to start with, so we spent time on the 5%. As an example – what should we do if a customer has asked a renewal rep to add a license on to an order? Is that a sales person upsell, or just a customer enquiry that came through a circuitous route? (We decided on the latter btw)
    • Lead Types. We spent a lot of time simplifying the types of leads we’re interested in. From analysis of 2020 data we realised that the vast majority of leads came from a small set of sources – inbound emails/phone calls, web orders, downloads & free trials, events/webinars, reaching out to current customers, and prospecting out to new customers. There were then about 10 additional sources, most of which generated less than 1% of leads each – we simplified the model to the few that really matter.
    • Lead Flow. Armed with an understanding of different lead types, who should get what? And how quickly? We spent a lot of time with operational teams working out the processes then implementing manual processes (we’ll automate later…) to make sure all the leads found the right home (I like to think of this as “No lead left unturned”)
    • Follow up. Is every lead being followed up? With the right cadence? Again, some great work from our SalesOps team, and Sales Leadership making sure this was happening.
    • The Feedback Loop. We now track which leads are converting and which are too early stage or low value. We’ve already made one round of changes to the qualification process, and expect many many more as we learn over the coming months.

    What Impact Did it Have?

    This is what matters. If you did all of the above, you can give yourself a pat on the back, but it only matters if it made a difference to the numbers. So did it?

    Yes it did. I can’t post all of the charts here, but in summary:

    • January opportunity generation (before we’d actually made any changes) was more or less the same year-on-year. A bit disappointing, but we are in the middle of a pandemic.
    • So far, February opportunity generation has been between 20% and 30% up year-on-year, after we made the changes described above.

    Could this just be luck/the market? It could be, but poring through the data for “What actually happened here?” it clearly shows that the new opportunities are coming from the right leads being placed in the hands of the right sales people with the right information at the right time. Sales people feel like they’re getting decent leads from Marketing. Marketing people feel that all their leads are being “maximised”. And most importantly customers are getting the service they expect – help from Redgate when needed, and left alone when that’s what they want.

    I’ve been watching the figures every day like a hawk, to wait for things to go wrong, but the increase is very consistent.

    Looking back over January, this effort would have failed if it hadn’t been for us taking a collaborative approach. As mentioned at the start, these things aren’t rocket science. So why didn’t we do it all years ago? Well, a number of reasons (having the right people in place for example), but primarily, that taking the more forensic, tougher and collaborative approach was necessary to proceed. We could have tried doing these things in isolation, but it would never have landed as well as it did.


  • How to Present to an Exec or Board

    How to Present to an Exec or Board

    For better or worse I find a lot of my tips and tricks for working in a software company from fiction books and films. I learnt most of what I know about how to present to senior folk (an Exec team or a Board even) from a two-minute scene in David Mamet’s film “The Spanish Prisoner”:

    In this scene, the main character (played by Campbell Scott) has to present to the board on his new idea (“The Process”) – how do you present something extraordinarily complex and nuanced to a group like this?

    There’s a great line early in the scene when Ricky Jay’s character starts to talk about the team and the effort behind the work and the CEO responds with “I know you’ll understand when I say that’s neither here not there”. Harsh, but what the board really want to hear about is:

    1. How much money will we make?
    2. What are the risks? What do we actually own?
    3. What are the timelines?

    The presenters then go on to speak to these points and get what they want from the group.

    Of course this is fiction – rarely would a senior team make investments based on so little information (and I’ve never known a senior team care so little for the people behind a project!), but it makes the important point – know your audience, don’t waste their time and concern yourself with what they want, not what you want. At a very practical level, next time you’re presenting to a senior group, consider chopping half of your presentation out (regardless of how short it is already) – the skill of summarising key strategic points, and speaking to the point is valued enormously in any company.

    Of course I’ve always found marketers good at this sort of thing. Good presentation skills are often expected of marketing people, but there’s more to a great presentation than good elocution. What’s needed for a pitch to a senior team? Knowing your audience, not wasting their time, and concerning yourself with their needs, not yours – a concise description of “Marketing humility”, the skill of putting the customer at the centre of everything you do, and leaving your own concerns to one side. It’s at the centre of how great marketers think.

    Watching this scene again also reminded me of a great talk I heard from Erica Seidel a few years back at a MarTech conference. There she talked about the three skill areas she looked for when hiring senior roles:

    • Attitude – what general approach/attitude does the candidate bring to a role? Positive? Pro-active? Team player? Team builder?
    • Aptitude – can they do the actual thing they’re being recruited for!? A VP of Sales needs to know Sales obviously.
    • Altitude – can the candidate talk to colleagues at all levels? Can they summarise a strategy in 2 minutes to the CEO, then spend all afternoon in a workshop going through the details with the implementation team?

    Erica’s point in the talk was that, of course, everyone focuses on the 2nd of these. And most people ask about the 1st. But few ask about the last, and it’s a great skill to have as a candidate. The ability to turn on a sixpence and completely change the way you present a proposal from “This is how much money we’ll make, and why the risk is low” to “Here’s the 25 pages detailing how this is all pieced together, and how we’ll run the project” is a scarce talent and invaluable to employers.

    The film is one of my all time favourites, and of course anything by David Mamet is great. Films and books often provide great lessons like this because a great writer will be able to summarise the essence of a situation in a few moments, more succinctly than a 256-page book. I strongly recommend watching the whole film through – there’s so much more in there about other aspects of company life too, all of which I’ve found useful over the years :).


  • Focus on Marketing Effectiveness to Scale Up

    Focus on Marketing Effectiveness to Scale Up

    Here’s a very non-theoretical problem – you’ve got two ways of spending some digital marketing budget, either a) LinkedIn advertising, or b) Facebook advertising. The former works pretty well, you manage to calculate a return of $1.50 for every dollar you spend. The Facebook adverts are more effective though – a return of $1.80 for every dollar spent. Question is – which do you do? Obvious isn’t it, it’s Facebook?

    No, the answer is both. I’d argue that, for most orgs, particularly those in a mid-stage, scaleup phase, the more you can spend on things that work, the better. Why? Because the only reason you’d choose one over the other is from a desire to improve Efficiency – to get more bang for your buck. But for many orgs that isn’t your job, your objective is to improve Effectiveness – to improve your outcomes, to grow, to maximise your revenues and profits as soon as possible. It doesn’t matter if some activities are less efficient – do them all!

    Les Binet and Peter Field explain the difference very clearly here, around 5:58:

    I think there’s an additional subtlety here for growing businesses – that the relative importance of these two approaches varies depending on the stage of growth for your company, and the objectives handed down by your boss or board. For some very early start-ups, you’re not worried about metrics like “Marketing ROI”, “Marketing generated pipeline” and so on – you’re just trying to find product-market fit, and finding any way of reaching your audience. Marketing effort is far more likely to be focused on early strategy – what is the market we’re after? Who are these people? What would they use instead of our product? Who are we competing with? How would we reach these people anyway? You’re not yet at a point where you know how to spend marketing dollars!

    For many large orgs, particularly those with investors, efficiency does become much more important – growth is relatively flat and the strategies might focus more on reducing the customer acquisition costs. I’ve spoken to a couple of people at this sort of company in recent years – not a role I envy perhaps, but at least it’s clear what you’re being asked to do. Your job is to optimise, find efficiencies, cut costs, track the Marketing ROI ruthlessly, and cut waste.

    The middle stage is interesting though. You’ve got product-market fit, you know your market, why customers buy from you and you’ve figured out a few channels and activities that seem to work. But now everyone just wants more. More leads, more growth, more $$ – there’s never enough! This is a great time for marketing – as noted in Rise of the Revenue Marketer, there’s a clear link between the activities of the marketing department and company success – it’s exciting, but it can also be a little daunting. Here’s a poorly sketched illustration, of the phase I’m referring to:

    Phases of growth

    The trick is to remember that efficiency is not your goal here. In the example at the top of this page, both tactics give profitable return – so you just need to do both. Accept that you’re picking both low-hanging fruit and high-hanging fruit. Some of your leads will be easily won – great customers, right in the middle of your Ideal Customer Profile. Sales pick them up, work the order in a matter of weeks, and hey presto – easy money. Others will be much harder to convince – the customer is a long way from a sure bet (maybe wrong industry, wrong org size, wrong technology stack). They’re very early stage – sort of interested, but they’re not sure what they want, or if they want it from you (tip – this is where great lead nurturing becomes invaluable). It’s going to take a lot of effort to win those deals – but you still need to do it. You’re not being measured on how efficiently you ran your campaigns (as mentioned in the video above, the most efficient way of running a campaign is to not run it at all!). You’re being measured on the maximisation of outcomes of leads, opportunities and revenue.

    There’s an obvious chink in this armour – a well run business has to be profitable. Is it really okay just to spend wildly? I believe strongly in tight budgetary constraints – total freedom on spend leads to laziness, and a lack of focus. In the example at the top, we’re still trying to measure what’s working and what isn’t. We’re not doing things that are unprofitable. And if the return on something was $1.01 for every dollar spent, I’d be far less interested. It’s important to still work very hard measuring what does work. You should be constantly looking for more impactful ways of spending money, and also discarding tactics that aren’t working (easier said than done!).

    But you need to be careful on cutting spend on the long-term brand building activities – the money you spend on non-activation activities that can’t be measured in the short term. These are the things that make you more effective in the long term. In a marketing department you have to weigh up your investments in short-term activation activities (“Click on this link to download our report!”), with those for long-term awareness of what you do – warming up customers for future activation. If you get this right, then you will be considerably more profitable – we all know it’s infinitely easy to get a customer interested when he/she is already aware of you, and has a positive inclination towards your offering or brand.

    So a strong mix of long-term brand building (or “Investment in propensity to buy” – far more palatable to many 😉) and a wide range of activation activities, focused on how you can be most effective – winning both low and high-hanging fruits – is, for me, the strongest strategy when your goal is growth. And if you want to scale up as quickly as you can – stop worrying about efficiencies – that’s a problem for the future!

  • Review: “Subscribed”​ by Tien Tzuo

    Review: “Subscribed”​ by Tien Tzuo

    The Subscription Economy is the idea that more and more customers (and therefore vendors) are moving over to being subscribers of services rather than purchasers of products. An obvious example is Spotify – the money spent by consumers on streaming services now significantly outweighs revenue from physical CDs or even digital downloads:

    In 2019, more money is spent by music listeners on monthly subscriptions to music services, where customers never actually “own” anything in any real sense – a complete transformation in the industry.

    Central to Tien’s book is the argument that this change in behaviour is far more widespread than the obvious examples (mostly from consumer goods, such as music or films) – and, particularly for those companies selling software products, those vendors will have to switch away from selling products (with things like “Release versions”, “Upgrades” and so on), instead moving to evergreen services, based around customer need.

    Tl;dr – I like the book, and it makes some great points. But – and this is a point made explicitly by Tien part-way through the book, without any irony! – it is essentially an evangelical marketing book. So it’s very strong on selling the idea of subscriptions as a business model, but a little thin on the actual details. Still, well worth a read.

    Longer

    The book is in two halves – the first half providing many examples of industries where this transformation is happening, the second a more practical guide to how to make changes in your org to move over to a subscriptions business.

    In the first section, he moves on quickly from the obvious examples like Netflix and Spotify, to a number of industries where the move to a subscriptions model is either happening already or “inevitable”. For example, travel, newspapers or retail. It’s the first half that I find least convincing for two reasons – firstly, where significant brands are offering subscription services, these are still pretty minor, even experimental. A good example is Fender. facing a downturn in guitar sales, Fender now offer an online teaching services (called “Fender Play”) as part of the deal – buy an axe and get a monthly learning app as part of the deal. This is great but – I struggle to believe this is a significant revenue stream for them. If anything it’s closer to the old “Upfront perpetual license + ongoing support costs” model (they certainly don’t take the guitar away if you stop playing!). There are lots more examples where the offerings provided by major brands are only bit parts. The obvious one is Apple – yes Apple Music is very successful, but nothing compared to their product revenue. Obviously I could just be taking a rather backward-looking view here. But the examples given don’t make the point strongly enough – the number of large brands that have switched to the alternate model seems small.

    But maybe the future is with the disruptors? The small orgs disrupting these Goliaths with subscription models. The second reason this first section is a little unconvincing is that the examples given are still very much small fry. An example is Zipcar – a car service that you use where you just pay for what you need – hire by the day or hour. Again, an example where instead of customers owning a car, the subscription offering is far easier. Again, fine, but Zipcar is still a tiny part of the market. But at least I’ve heard of them! Many of the other examples given (e.g. for shaving or flying) are still very minor brands that I’ve never even heard of.

    Of course, it’s perfectly possible these are just early signs, the innovators that will lead the way to tomorrow. And that’s very very possible – my argument is that the examples given aren’t enormously convincing of the inevitability of this transition. Later in the first half Tien talks about the move to subscriptions being necessary as companies selling non-SaaS products, tied to old revenue models plateau and start to decline. But this isn’t the case where I work (Redgate), where we’ve seen significant growth in this older revenue model. Of course we’re looking in to subscriptions as a way forward – but the start of the book is a little too evangelical for my liking. The nuance is that, for different orgs in different industries they should look at the change carefully and with a very strong strategy in place. Is it right for our customers? Will we really get new customers through this offering? How will we manage the change, the impact on profitability and value? Do we do it now, or in two years? Or 5 years?

    But – what if you’ve already taken the red pill and want to know what happens next? This Tien addresses in the second half, which I found stronger. Here he goes through each part of the business – sales, marketing, IT, product, finance – and works through the impact on each area. For example, the vital importance of getting your finance reporting and infrastructure changed for the subscription business – all of the old models and KPIs change, and you have to address this upfront.

    And the strongest part of this section is the discussion of culture. There’s a great chapter called “That WTF moment” – Tien describes a situation where the board announce the transition, provides flashy PowerPoints, does the internal sale and the company react with “WTF”! He then talks about the change management process needed to get everyone on board and transform to a customer-centric culture focussed on subscriptions (rather than the “sell-and-forget-the-customer” model associated with product sales). It’s really useful to see this part of the change understood and addressed.

    There are weaker sections here where he talks about breaking down siloes, how Zuora doesn’t have “Sales”, “Marketing” or other departments, instead having divisions like “Position”, “Acquire”, “Deploy” – without siloes between these departments. But this is missing the point – all org structures have inter-departmental collaboration issues that need to be pro-actively handled. Just re-branding the departments, or changing the responsibilities of different areas doesn’t change that at all – you still have to do the work to get people to work together.

    But that aside, I really liked the second half, maybe because our company is further down the subscriptions path already (e.g. we have some products on this model now). I particularly liked the detail under “Finance” – you really need to understand the different ways in which you financially govern a company, the metrics you look at and so on, and this is really well explained. The “Marketing” section is a little weak, but ho hum – to the outside observer most of marketing is a mystery anyway 🙂

    Nevertheless, I still found the second half a little thin. I was left wanting to know more, to understand the nuances, the subtleties of these changes, and the book ran out of pages at this point. There’s a slightly surreal moment on p150, in the marketing section where Tien states:

    What you are holding in your hands is the work Zuora does in Room One, which is the story of the Subscription Economy.

    I.e. Tien is explicit that the book is a marketing tool to create early interest in customers! Fine, but it does slightly undermine his story – he’s explicit that the book is basically just a marketing campaign to get people interested in buying a copy of Zuora in the future. Personally I’d rather have seen a book from a third party, a contractor or thought leader. In the DevOps and Continuous Delivery space, an independent offering like Jez Humble and Dave Farley’s Continuous Delivery book is far more insightful and impactful and has had a much longer shelf-life than I think this book will have.

    Tien is the CEO of Zuora, a vendor selling subscriptions licensing software. In this sense it reminds me of a very similar book from Hubspot about “Inbound Marketing” from 2009. This latter book again was pretty evangelical about how every marketing org would need to throw out all the old marketing strategies to be replaced wholly by “Inbound marketing” – a concept sold by Hubspot who sell inbound marketing software. But with hindsight that was overstating the case; and this book from Tien Tzuo feels very similar. So he makes some great points – particularly around cultural changes that you need to address, to effect the changes needed in your company – but the book only really scratches the surface of the changes you need to make, and is really targeted at people who haven’t yet made the leap to a subscriptions-based business. If you’re already a long way down this rabbit-hole, you’ll be left wanting more insight and analysis by the end.


  • Sentiment Analysis of Twitter – Part 2 (or, Why Does Everyone Hate Airlines!?)

    Sentiment Analysis of Twitter – Part 2 (or, Why Does Everyone Hate Airlines!?)

    It took quite a while to write part 2 of this post, for reasons I’ll mention below. But like all good investigations, I’ve ended up somewhere different from where I thought I’d be – after spending weeks looking at the Twitter feeds for different companies in different industries, it seems that the way Twitter is used and is useful varies enormously by industry. This makes it difficult to build a generic model for Twitter sentiment analysis (because a model built from, say, small B2C companies, isn’t really applicable for large B2B companies) – but it also makes interesting suggestions for how companies in different industries should use Twitter to help their businesses.

    Oh, and my main conclusion? People sure do hate the airlines! More on that later.

    First, a potted history of how I got here:

    1. I wanted to build some models for Twitter sentiment analysis. What does that mean? It means “Give me a tweet for your company, and I’ll tell you whether it’s negative, neutral or positive. That allows you to monitor the Twitter feeds for you (or your competitors of course ? ), and track whether they’re getting better or worse”.
    2. I’ve collected millions of tweets from a number of different industries, B2B, B2C, small companies and large companies.
    3. In part 1, I hit some problems with mis-classification of tweets. This came from (I believe), a problem that the base models from Stanford NLP are built from a different corpus of texts – from a generic domain (of English sentences and paragraphs) rather than, say, tweets for companies. There were also still problems with creating a decent model for tweets specifically as opposed to general blocks of English text (again, more on that below in Appendix 1).
    4. So the next job was – could I use the millions of tweets for various companies to build some sort of generic predictor model. I.e. give me a company tweet, I’ll tell you whether it’s Good, Bad or Ugly?

    Well, the answer is No. Or at least not within the time that I’ve had so far. And the issue seems to be that the way Twitter is used by companies and by companies’ customers varies significantly by industry.

    A first step in creating a predictor model is to manually assign sentiment scores to a long list of tweets – this creates a training set that you then use to train and create a model. During the creation of the model you repeatedly test the model against an out-of-sample dataset to see if your model is working (to avoid things like over-fitting). As a first step, I assigned manual values to around 500 tweets (i.e. I manually tagged 500 tweets as either very negative, negative, neutral, positive or very positive), then I tried to create a model from this. However, my cross-validation scores were terrible – the model was struggling to predict the sentiment of other unseen tweets. I know this is partially because 500 isn’t nearly enough, but still – how could the scores be so bad?

    What was the problem? Like all machine learning issues, I’ve generally found that eye-balling the data can tell you a lot. I believe there were two problems with my model:

    1. The problem already mentioned that the Stanford NLP Parser struggles with tweets. And it’s not a trivial case of just swapping in a new POS Tagger for Tweets. Let’s put that to one side for now.
    2. The bigger problem is that, from looking at the manual tags I was assigning to tweets, the values I was using varied enormously by domain.

    The latter creates the problem of domain-specificity. Is a model created from, say, tweets about the airline industry, relevant to tweets about online cloud storage? It seems not.

    The first clue is the distribution of scores I was giving. Remember, 0=very negative, 1=negative, 2=neutral, 3=positive, 4=very positive. For the airline industry I found the following:

    0 1 2 3 4
    10% 32% 41% 12% 4%

    I.e. though there were a lot of neutral tweets, there were a lot of negative tweets. Here’s a very standard example:

    @Delta just rebooked my 70yr old parents on a longer flight back to cvg from fco and no extra legroom that I had paid for. Fail.

    There’s a lot of this sort of thing going on for the airlines.

    In contrast, here’s the distribution for a couple of big cloud providers (specifically, AWS and Azure combined):

    1 2 3 4
    3% 83% 11% 2%

    An enormous number of utterly neutral tweets. Here’s a standard example:

    RT @DataExposed: New #DataExposed show: Data Discovery with Azure Data Catalog.  https://t.co/5sWuKpdoYx    @ch9 @Azure

    ..pretty dry stuff.

    This actually presents two distinct problems – firstly, as mentioned, if the nature of Twitter usage and the type of tweets varies so much by industry, then models will only be really effective within their domains. Fine – if you work in a given industry (e.g. Airline, IT, Fashion), then you can create a model for your industry and use that.

    The second problem however is more difficult to work around. For a given industry, I’ve found that the way in which Twitter is used varies enormously. This is what you’re seeing in these very different distributions. And if the vast majority of tweets are of a given sentiment, then sentiment analysis becomes not only difficult, but actually not particularly useful!

    In the airline industry, as far as I can see, Twitter is used almost exclusively for telling airlines how bad they are. There’s a pretty strong correlation between the number of tweets mentioning a given airline and the negative feeling towards that airline. This distribution does vary by airline (see table below), but when you know that most tweets are just complaints, what’s the value in searching for the occasional (positive) needle-in-a-haystack?

    If I worked for an airline and wondered “How could we use Twitter to improve our brand?”, the answer would be pretty simple – firstly, improve my product! and second, employ customer service reps to look after these people and react to the complaints. As I say, some airlines are worse than others:

    Row Labels 0 1 2 3 4
    American Airlines 12% 35% 37% 14% 2%
    British Airways 10% 29% 46% 12% 3%
    Delta 10% 37% 38% 12% 5%
    SouthWest Airlines 5% 26% 47% 16% 5%
    United Airlines 12% 43% 35% 6% 4%
    Virgin 0% 13% 44% 25% 19%

    Well done Virgin and SouthWest. Delta and United – you have work to do…

    The problem in the cloud services industry (AWS and Azure) is the opposite – mentions of these services tend to consist of semi-banal tweets about new services offered, new features and so on. I.e. Twitter is used to share information about the products and services and rarely to express emotive responses (it’s very rare to read “Can’t believe how amazing @AWS was today!!! #FTW” – it just doesn’t happen). Certainly the split between B2B and B2C tweets shows this difference (I looked at small and large orgs as well, from local shops, to fashion houses, to small tech companies).

    I still think there’s value in implementing a domain-specific model (for example,  a model “Just for small tech companies”). The only block is, as described in Appendix 1, the problem of Parsing tweets properly. Maybe once I’ve figured that out, I’ll find a way to classify the other million-odd tweets I’ve collected for the airline industry as a starting point (there are a lot of unhappy airline passengers out there!)

    Appendix 1

    The problem of parsing tweets

    I was warned by the following tweet from the team at Stanford NLP:

    The problem we’re trying to fix, as described in the previous post, is that, for us to understand the sentiment of any sentence we have to carry out a couple of stages first. To begin with we need to Part-of-Speech tag a sentence. So, identify “Dog” as a Noun, “Catch” as a Verb and so on. This has challenges with Twitter which is full of URLs, hashtags, #LOLs and so on. But – the GATE Twitter model mentioned above solves this by adding in this functionality to the POS tagger. If you run a tweet through the GATE POS-tagger it will identify http://some.url/ as a URL and so on.

    So far, so good. However, the problem comes with the next stage – Parsing. What’s this? If you look at a sentence such as “I don’t like ice-cream”, the tagger will identify and POS-tag each component of this sentence – I, do, not, like, ice-cream. Great, but to understand the sentiment of this sentence, we need to group these elements further. We need to understand that there’s a hierarchy whereby do and not are grouped together, and apply to like to negate this term. I.e. this sentence is actually negative despite the fact that like is a positive word.

    And herein lies the problem with parsing tweets – because of the language used in Twitter, often abbreviated, often partial, it’s very hard to properly parse tweets and work out this structure. This seems to be the problem from the very brief analysis I’ve done. The Stanford team (and others) do state “Sure, you can try the standard parsers using tweets tagged with the GATE POS tagger, but good luck with that!”. It obviously needs more work, and maybe when I have more free time, I’ll have a look!


  • There are Three Types of Marketing – Inbound, Outbound and… Plain Rude

    Reading one of the many number of content marketing pieces from HubSpot, I noticed the following from a basic piece on What is Digital Marketing?, after paragraphs about the virtues of Inbound marketing techniques:

    Digital outbound tactics aim to put a marketing message directly in front of as many people as possible in the online space -- regardless of whether it’s relevant or welcomed. For example, the garish banner ads you see at the top of many websites try to push a product or promotion onto people who aren’t necessarily ready to receive it.

    Now HubSpot obviously have an agenda here – their whole business model rests on the validity of the Inbound marketing approach over Outbound approaches (such as “garish” banner ads ), and so they’ve over-stated their belief in the inefficiency of ads. But are ads really garish and intrusive? Are they really “push” advertising (rather than the “pull” of good content)? What’s the problem here?

    Since becoming CMO of Redgate and, perhaps foolishly, updating my LinkedIn profile to reflect this, I’ve started receiving endless emails from agencies, recruiters, marketing data organisations and so on. And many of these are what, I would call, if not rude, certainly intrusive and over familiar. These techniques have been written about elsewhere – this week alone I’ve had:

    • Use of “RE: Our conversation” in the subject line (really, I don’t remember this!?)
    • Taking names from my LinkedIn network and saying “Your colleague <Insert Name Here> said I should speak to you…” – when I know that’s not true
    • Assumptive closes (“Shall I book 20 minutes in for a chat on Wednesday?”)
    • Stalking (early messages which seem innocent enough, chatting about marketing issues, but then soon turn in to sales patter)

    …and so on.

    I find all this pretty intrusive. But isn’t it just the same thing as “garish” banner ads, intruding on my field of vision, when I’m trying to get something done on the Internet? Interrupting my work when it should be me in charge of my flow (as per the Inbound model)?

    I think this is to overstate the intrusion from banner ads. Firstly, yes there are very interruptive ads which fill the screen, and you have to either play “hunt the X” to try and close them, or wait 15s before you can move on. These are pretty annoying. But most graphical ads aren’t like that – they’re well branded rectangles, which are as ignorable as you like. As a marketer I hope you’ve picked up on the branding, noticed a message, that the ad has lodged somewhere in your subconscious, so that next time you’re looking for a solution you think, “Oh yeah, who were those Redgate guys?”. But of course, you might just ignore them (and I’d be very surprised of you clicked on them – we all know the stats on banner ad click-through rates), and that’s fine.

    I don’t feel this is nearly as intrusive as aggressive cold-calling and emailing – these are marketing techniques too, but exhibit the worst traits of “push” marketing – interruptive, based on your timetable, not mine and quite frankly, not leaving me with a particularly positive experience of your company. A well designed ad, perhaps with humour, certainly beautifully designed isn’t in the same category.

    As I say, HubSpot have an obvious agenda – to push the Inbound model and disparage outbound techniques, but the latter shouldn’t all be tarred with the same brush. Ads are as popular as ever on the web, and as more options for personalisation and targeting become available to graphical media – combined with the deluge of mediocre content – I feel this un-intrusive channel will have a resurgence.

    But you’ll never find me pushing the dishonest cold-call/email (“I spoke to your colleague yesterday about how we could help you..” – no, you didn’t!). That’s truly interruptive marketing, which does nothing but damage to your brand.


  • Why Doing Nothing Inevitably Leads to Failure

    Expo 70Every new idea is a bad idea. Well, not quite, but every time you choose to do something new, there always seems to be 100 reasons why it’s going to fail.

    Wrong people, not enough people, misunderstanding of the market, can’t extract value from it, too many changes needed, not our core competence, not completely aligned with everything else, too aligned with everything else (“it’s nothing new”), inability to execute on the plan, too many great competitors, too few competitors (so how can there be a market?), and so on and so on.

    So what do you do? There is always the easy option – do nothing! If the project looks Herculean, you always have this as a fallback option. By doing nothing you avoid all of the problems and risks listed above in one fell swoop. And think of all the the effort and resource you’ve saved? Sounds like a great option, no?

    Before my father retired, he was an architect. Winning business in the architectural profession changed significantly during my dad’s career. When he started most work was obtained through getting to know people in your area, discussing the idea then getting the job. And if you did a first piece of work for someone, then chances are you’d get every subsequent piece of work after that.

    But all has changed during the last 20-30 years, to a process of bidding for almost every job, similar to the world of advertising. Almost any piece of work over a certain value involves multiple firms bidding for the project. This is of course, a burden on every organisation leading, in the majority of cases, to completely wasted effort. You can argue it’s inefficient – so much time that could be spent more productively – but that’s the system.

    My dad’s approach in this situation was to bid on a lot of jobs. He had specialisms, in types of buildings, size of projects, and location, but he often strayed well outside these specialisms and sunk a great deal of effort in to bidding on all sorts of weird, wonderful and occasionally distant projects. A lot of time and effort was spent in bids that led to nothing, so why take such an inefficient approach?

    Whatever the reasons why, it worked. My dad’s firm grew over the last 20-30 years, and in all sorts of unpredictable ways. Where his earlier career covered a lot of factories and industrial work, later he did work for schools, medical centres, and a lot of very interesting housing work.

    For me, the secret of this success, which my dad confirmed, was that “You never know what will come of the work you do – the future is unpredictable”. He would often bid on, say, a school extension, lose the bid but then a year later, the school governors would get back in touch saying “We really liked the bid you presented a year ago, do you want to come in and talk to us about a new school building we’re doing?”. And this happened all the time. The point of course, is that if he had never bid on that piece of (rather speculative) work, he would never have made that contact, impressed that board, and ended up with another job a year later (followed by lots of follow-up work..).

    When he retired and passed the firm on to others, they took a different, far more cautious approach. Every potential bid went through a rigorous vetting process, questions like “Is this our specialism?”, “Is it too far away?”, “Do we have enough people to cover this if we win it?” (oh, what a good problem to have!) and so on. Through this, they bid on far fewer contracts and, guess what, are not doing so well.

    So, whatever the risks, however big the mountain of problems you face, however many countless ways something could go wrong, bear in mind that repeatedly doing nothing inevitably leads to a downward trajectory, particularly given the complete unpredictably of the future. Though it may be a high risk path, taking on all sorts of new and unknown projects, the alternative of doing nothing – though less risky and unpredictable – can be a somewhat sadder affair.


  • Why Complex Decisions Inevitably Take Weeks

    convergenceI often find that, when it comes to make certain types of decision in an organisation, this just seems to take weeks. And if you’re unlucky, this can roll in to months. Why? What is it, a lack of decisiveness? An unwillingness to commit to anything? Lack of identification of a “Decision maker”? Just weakness!? I suggest that it’s none of these things, but in fact inevitable, when it comes to a certain classification of problems. More specifically, with complex problems (definition below), there’s actually very little you can do, but accept the time it takes, and stop worrying.

    Here’s an example, of the sort of discussion that’s happening in offices up and down the country. NB: this is purely for illustrative purposes, and not related to any real events!:

    • Colleague 1 – “We’ve got a problem hiring account managers. Let’s have a meeting to figure out what we’re going to do about it”.
    • Three colleagues sit and discuss the problem and decide “We’re going to increase the salary on the website, to attract more people”
    • Colleague 1 tells the HR team. At which point the Head of HR points out “What do you think our current account managers are going to think when they see that salary on the website? We can’t do this – let’s have a meeting”
    • Colleague 1 and Head of HR have meeting and decide “We’ll increase salary for the role, but we’ll put a very wide range, to keep current employees happy”.
    • New salary range goes on job ad, on site
    • Applications start coming in – from lots of junior people who assume it’s a junior role, from the low starting salary
    • At the same time, account manager colleagues start asking “Why aren’t I getting that top range salary? I did an amazing job last year!”
    • Various colleagues and HR people sit and have another discussion about the salary range, and decide to tighten it up again, to stop junior people applying and to keep employees happy
    • Update page goes live
    • Colleague 1 chips in  – “Hang on, we’re back where we started! We still haven’t solved my problem of getting an account manager – what’s going on?” 

    This isn’t supposed to be an example of the difficulties of hiring. It’s an example of a long decision making process going round and round in circles, leading I suspect, to frustration amongst all of those involved.

    But why has this happened? Why is it so difficult? Fundamentally, it’s because the problem of “How will we get more account managers in the building?” is a complex issue – and therefore has different characteristics to simpler problems.

    The Harvard Business Review article A Leader’s Framework for Decision Making outlines a framework for classifying problems, crudely summarised as follows:

    1. Simple Problems – simple cause-and-effect problems, often with obvious answers. And often something that happens all the time. The example I like best is “What to do if someone comes in to complain about your hotel?”. Is this a difficult problem, requiring a committee of your greatest minds to figure it out? No! Just give the guy some kind words, may be a discount code and keep him happy. It’s a simple problem, and generally “Best Practice” should be applied.
    2. Complicated Problems – again, there is cause-and-effect here, but more expertise is needed to fix the problem. The example in the text is a problem with your car engine. There is a cause-and-effect going on here, but what is it? Can anyone fix it? No, you need expertise and it might take hours to diagnose the problem. Software Engineering can also, often, fit in to this category – okay, you want the website to do X and Y, and it’s certainly possible to do this, but it might take years of experience and expertise to make that happen.
    3. Complex Problems – the key difference between complicated and complex problems is that, for the latter, the domain is simply too complex and unpredictable to undertake a priori analysis and come up with the answer in one shot. There are feedback loops – making one decision impacts other parts of the problem space, which feed back in to the original decision and change the context. In the example above, increasing the salary range on the site causes disgruntlement amongst employees, leading to a revision of the original decision and so on.
    4. Chaos. No-one knows what the hell is going on, and trying to sit back and rationally analyse cause-and-effect is pointless. Your job is to “Stop the bleeding” and manage the problem actively.

    So, our example is a “Complex” problem – and I’d argue that a large number of management problems fall in to this category. Why? Because you’re dealing with people, their aspirations, irrationalities, emotions and so on, and these are unpredictable at best. Or even without the need to take peoples’ responses in to account, many problems still fall in to the domain of the complex. We had a recent process to try and figure out a new pricing structure for our products and suites of products, and this took weeks to figure out. Why? Because all of our products, functionality and bundles are weaved together in a web of interdependency – decreasing the price of product X makes bundle A a more difficult up-sell, but that makes the prices of other products in the bundle up for change, which then affects bundles B and C and so on, and so on. This took weeks to resolve as we went round and round trying to reach a stable equilibrium which made sense.

    So, making decisions like this are always multi-step. And worse, almost always involve lots of different people (particularly in an org where consensus building is important – a different topic, to come!). Many of whom won’t be available at the same time (people are busy), who often need different levels of information, already have different levels of knowledge of the domain space and so on.

    A very large number of problems fall in to this type – where meeting 1 leads to a decision which then affects others, leading to meeting 2, which then affects the decisions in meeting 1, leading to meeting 3 and so on and so on. What you’re trying to do is reach a stable equilibrium point – where, all things considered, most people are kind of happy with the outcome and all of the issues have been considered (many of which won’t have come out till meeting 2 or 3). NB: This is also why these decisions can often feel like compromises – because they are, and the better for it! There is no simple, obvious-to-all answer, a silver bullet which we should have realised on day 1.

    So next time you’re getting frustrated with a decision making process, asking your colleagues “Why is this taking so long? Just make a decision already?” take in to account that it’s likely to be a complex problem which can’t be forced.

    What you can do of course, is create an environment where the process happens as smoothly as possible – are the right people involved at different points? Are there people making the problem worse? Do you have people who can work through complex problems, with poor quality data, and intangible concepts? Can you yourself facilitate the process (rather than jumping in with the magic answer)? On this last point, I like the comment made by Kishgore Sengupta*:

    Instead of saying ‘Don’t just stand there, do something’ your new behaviour should be ‘Don’t just do something, stand there’”

    * I’d like to thank Cambridge Judge Business School for introducing me to these concepts, particularly for the course given by Kishgore Sengupta on complexity – fascinating stuff!


  • Process Hawks and Doves

    In US politics, and now politics around the world the terms “hawk” and “dove” (really “war hawk” and “war dove”) are used to identify politicians who have leanings in a particular direction – either towards controversial wars or against. The arguments always play out on both sides, hopefully tending towards a solid, well-argued solution for a particular scenario. But I always get the impression in these debates that really, almost regardless of the facts on the ground, there are individuals who have a leaning towards war and, in the absence of counter-argument, would take that route; and there are those of the opposite persuasion.

    This made me think about this notion of an internal bias, towards one approach or another, in the much less controversial area of process in the workplace.

    My very first working day (in a proper “grown-up” job, rather than spending Saturdays in a shoe shop) was at British Airways on their computer training scheme (the BACT program, now sadly no more) and I still remember my new boss’s boss coming in to give us a welcome speech. The main point he made, that I remember at least, was that the JFDI approach just wouldn’t fly at at BA. In a company of 50,000 with an IT department of 2,000, there were processes and systems that had to be adhered to, if the whole machine was going to work. I didn’t question this at the time and happily spent a pretty large proportion of my working life at BA making sure everything was in its right place – that docs were named and catalogued accordingly, that all docs were written in a certain style, signed by the right people and that all software was developed in the standard approach (whether changes were big or small). The incident I remember most was having to move my PC from one desk to another. I was about to unplug the thing and pick it up when I was given a stern look by my team leader – there’s a number to call, a form to fill in, then you wait for a team of two (always two), to come down and move it for you. Probably two days later.

    Since then I’ve worked in companies from two people in size to 75,000 and those companies have had very different approaches to process. At a two-person standup, the idea of adhering to some sort of heavyweight process (rather than JFDI) is laughable – we were always flying by the seats of our pants, just about getting things done as quickly as possible, nothing documented, done differently every time, code being shipped without testing, marketing copy being finished and sent out minutes before the deadline. Terrifying – or exciting, depending on the outcome!

    But the point of this post is not to argue for one way or the other. It’s obvious that in a larger organisation, there is a need for process. And in a startup it’s neither possible nor desirable to spend time creating much process.

    What I have found however, and have always found this, is that people seem to have an innate bias towards more process or against. And, like the war hawks and doves, there’s really not a whole lot you can do to change that innate bias. We can certainly have arguments in a specific situation – should we apply a new process to fix a given problem, or just get on with the job? And hopefully everyone will be swayed by the evidence – but this is always a fight against one’s own internal biases. I tend to think of those that prefer the JFDI approach as hawks (perhaps an association with a more cavalier, devil-may-care approach), and the process fans as doves (an association with meekness, and a desire for peace and order, perhaps?).

    (In contrast to my views on war!), I’m quite a hawk when it comes to process. I struggle with, what I perceive as, treacle, oozing through a company and slowing down progress. Particularly in the world of marketing, which for me is about inspiration, excitement, ideas, all mixed with a bit of science, marketing is an area where for me, process can slow down and kill the sort of ideas and innovation needed for great work to be done.

    But here I am, of course, exhibiting my internal bias! I believe it comes from working at startups (which made more of an impression on me than BA ever did), though maybe I’ve always been that way inclined. So I have to fight my own internal bias in discussions on bias and make sure my prejudices don’t colour my judgement.

    And, thinking more widely, I think this extends to many other areas of working life – we all have biases, whether it’s towards process or against, towards short-termism or long-termism, towards a more or less scientific approach to marketing, towards argumentative or inclusive management methods, towards talking or doing – but it’s important to be self-aware of what our biases are, and to adjust our arguments accordingly. What I often find is that spending time listening to the opposite point of view can really help making sure you’re not letting your prejudices override others’ views. It’s not always easy, but I think it can really help to keep yourself in check and, at least try, to come to some sort of evidence-based approach to debate and argument.


  • The Need to Constantly Change in Marketing

    images
    There’s a quote that I really like from one of Christopher Isherwood’s early novels, The Memorial:
    “Men always seem to me so restless and discontented in comparison to women. They’ll do anything to make a change, even when it leaves them worse off. […] Whereas […] we women, we only want peace.”

    Removing the sexism from this quote (it was written over 80 years ago…), gives you something like the following – I’ve removed all of the brackets etc, to make this more readable:

    “Some people always seem to me so restless and discontented in comparison to others. They’ll do anything to make a change, even when it leaves them worse off. Whereas others only want peace.”

    Now I think this quote applies to an awful lot of people and situations, but this is a marketing blog, so why is it relevant here?

    If you step back and look at the ever-changing world of marketing methodology, and look at it over a timescale of years, and really, decades, then the one obvious feature is the constant change in the methods recommended and used over this period. Some examples known to all of us:

    1. The Internet and digital media. I still remember the first time I saw a website address advertised anywhere, on the back of a Björk CD. At the time I had no idea what to do with it (I didn’t have a computer on the Internet) but I know I was impressed. Now of course, over the last 10-20 years, a marketing strategy which doesn’t involve a website and other elements of web presence would be laughed out of the room.
    2. The death of print media. Apart from the very occasional experiment, we haven’t used print media for advertising at Red Gate for at least 10 years. Again, when I was a kid, every video game, bit of software or hardware would buy quarter, half or full page slots in various print magazines and newspapers. This was expensive and, as an advertiser, you had no idea whether it worked or not. In contrast to digital media, a campaign based entirely on print media would struggle to be taken seriously today.
    3. Banner ads. Getting in to something more specific, banner ads are I think the VHS recorders of our generation. It is a “technology” that has both risen and (almost completely) fallen in our lifetimes. Obviously it grew with the growth of the Internet as a medium and was the obvious like-for-like swap for quarter page ads in print media (just scan in your print ad, and send it over to the magazine to put on their website!). But it has the same problems (lack of feedback for the advertiser) and, as we all know, nobody likes or clicks on them. There have been some advances in recent years (using pay-per-click banner ads through Google Display Network), but banner ads are now rarely at the centre of any campaign.
    4.  Adwords. Again, a medium which as grown with the rise of the Internet and Google specifically. Google make an incredible amount of money, almost exclusively from Adwords, and their whole machine is set up to promote Adwords as a necessary and wise choice for the modern marketer (have you ever seen a Google blog post titled “How you could spend a lot less on Google Adwords”?!). Ten or more years ago, the individual who looked after marketing at our company at the time saw how it could be used to massively reduce our marketing spend (compared to print media) and still get the same results (as well as the benefits of knowing what’s actually worked). This was something that was instrumental in the early success of Red Gate, particularly on a limited budget. But could the same be said today? Is Adwords still the most cost-effective way of generating leads, easily outstripping all others? What sort of future does it hold? I’d suggest the jury is out.
    5. Content Marketing. As I’ve written before, hard to find a marketing blog that doesn’t hail content marketing as the new messiah. One group in particular who were very early to recognise its value were the people who run marketing automation companies…

    6. Marketing Automation. The natural progression on from blind content marketing is the use of marketing automation tools to apply that content in the most relevant scenarios, measure the results, then adapt based on feedback. This is an area which is still in its infancy I believe, simply because of the hurdle to getting started (you have to install and setup something like HubSpot, Eloqua or Marketo – no mean feat).

    There are many other methods of course that have had their ups and downs – mobile advertising and social media are also current fashions but the general point is that like everything in the world of marketing these things come and go.

    But, there’s another important thing to note here – there are people who recognise the importance of the new marketing approach before others and are therefore, arguably, more likely to get the full benefit of using that new method first. Björk has always had a great reputation in the world of digital media (her latest idea – Biophilia, a sort of multimedia collection “encompassing music, apps, Internet, installations, and live shows”) is once again at the forefront of what can be done with digital technology (and its great btw!). Bowie is another who was always at the forefront with www.davidbowie.com – its changed many times over the years, but was a pioneering site for fans in the early days.

    Which brings me back to the Christopher Isherwood quote. There are marketing people who, because of their need to always be doing something new are more likely to find the new things that could be valuable for your business. They’ll always be on the lookout for the new trends, what’s coming up in the future and so on. In contrast there are also people who will stick to what they know, and will struggle to try out new things. Each of these approaches has pros and cons – there is a danger, with constantly looking for the Next Big Thing, that we can fritter away our time on endless trends that go nowhere when that time could have been better spent just getting the Adwords campaigns right.

    But the danger with the reverse position – of always sticking to what you know, and ignoring the world around you – is that you stick with something long after its valuable and never fail to capitalise on the new things coming along (in the early days, when you can have most impact). I interviewed someone for a marketing role 2-3 years ago who said “There’s nothing wrong with print media – have you considered going back to that?”. It’s not about whether he was wrong or right, it’s that this exhibited an approach to marketing that I would have really struggled to work with.

    I’ve no idea what the next big trend will be of course. I think there’s another phase in the content marketing/marketing automation marriage where we’ll soon be able to auto-create content for customers based on their very specific needs (imagine a situation where articles could be automatically created from pre-defined blocks of copy, pieced together based on our knowledge of the customer – an article for a large, late adopter pharmaceutical company would be subtly different to that for a small, early majority financial firm), though a lot of these things will require some real, solid output from the Big Data/Hadoop community. But who knows? The point is unless you’re looking for these new trends – or rather, employing people who yearn to find these new things – then you’re almost certain to miss them till its too late.


  • What I Should Be Doing as a Marketer. But Won’t Be

    1988_2014-durer-kdd

    “Should” is a complicated – and dangerous – word in marketing. How many times have you read blogs and articles proclaiming that you “Should be doing more mobile marketing”, that you “Should have full content strategy”, that you “Should be creating personae for all of you target segments”, “Should be doing more on Twitter”? And it’s not just from marketing “thought-leaders” – as a marketer, I probably hear suggests on a daily basis of new things that we “should” be doing.

    But I want to use this post to dissect the word “should” a little. When someone says “You should be doing more social media advertising”, what do they mean? I think “should” is a word with too broad a definition in this context.

    As a first pass, I’d like to narrow “should” to mean “Activities which will have a positive impact on the business and affect the KPIs you worry about”. I know this is obvious but we’re not doing God’s work here – marketing activities and spend exist to generate and nurture leads to make money for your business. Unless you’re doing marketing for the church, in which case, yes – you are doing God’s work.

    A second criteria that has to be applied is a constraint – you only have limited resource (either people or money). I suspect there are very few activities that would be particularly negative for your business. The problem is that many have very little impact at all. This would be fine, if it weren’t for the fact that marketing costs money – so it needs to do something positive for your business, or you’re just wasting your limited resource.

    So the criteria so far is that you “should” carry out an activity if it positively affects your business and if it’s do-able with your limited time and money. So far, so obvious. But, how do you know whether these criteria are met (the first one is the hard one – it’s pretty easy to know how much something will cost to do, much harder to know if you get a return on that investment)?

    I try to use four levels of qualification to assess whether we do something. I’ll describe these below, then try to apply them to the plethora of activities that our business does. Really these are measures of “How strict am I going to be on the evidence I need and level of analysis required to say that a given activity is really worthwhile?”.

    The levels are:

    1. “Should” do, because thought-leaders on the Internet think it’s a good idea,
    2. “Should” do, because although there’s no data to support it at all, I believe these are having a beneficial impact,
    3. “Should” do, because there’s pretty good data showing it actually works,
    4. “Should” do, because there’s good data that would stand up to scrutiny by any scientist worth his/her salt.

    And here’s my table of activities showing whether I think we “should” do these things using these criteria. NB: By “Should” I really mean “Spend a lot of time and/or money getting this right”:

    Chart

    As you can see – a lot.

    Couple of points to make:

    1. Nothing fits the fourth criteria – having evidence good enough that wouldn’t be ripped apart by a half-decent scientist. I studied science at college, and remember ripping apart published psychology papers because of poor experimental setup (there is always an alternative explanation in psychology!). I’ve never seen any study or data in the area of marketing which reaches even the lowest standards applied by a psychology researcher – for example, running longitudinal studies or setting up proper controls. Still, if we applied this criteria, we’d never do a single thing in marketing!
    2. The list of things where there is even half-decent data supporting the work (criteria three) is also pretty short. As per my previous post, this is why we’re working with HubSpot – that list has to grow bigger, so that I can more confidently say “Yes, that works, and here’s the evidence (albeit, scientifically embarrassing) that it does”, converting criteria three items in to criteria two items.

    Given all of the above, here’s what we’re planning to spend more time on going forward shown in red. As I say, the fact that there’s nothing against “SEO Optimisation”, say, doesn’t mean we don’t spend some effort on it as a company. What it means is that I don’t believe spending a lot more time and effort on it, will move any needle that I’m interested in:

    Chart2

    Again, a few points:

    1. Everything we’re doing is something I believe works! Even if I have no evidence for it…
    2. But we’re not doing everything I believe works – this is the time/resource constraint. We have to prioritise and some activities that could have an impact just won’t happen. Even though we “should” do them.
    3. There are things like “Google Adwords” which we won’t be spending more time on, not because it’s not very important but actually because I think we already do a great job and we’re in the arena of diminishing returns.

    But, we do plan to kill a lot of activity. Activity that we really “should” be doing. It’s just that I need to use a different definition of “should”, one that allows us to focus and focus on things that I think will make a difference.


  • When Marketing Isn’t Really Marketing – Google Analytics Multi-Channel Funnels

    I was excited this week about the prospect of finally having the time to play with Google Analytics’ advanced Multi-channel Funnel (MCF) functionality. As announced at their summit last year, they’ve extended their advanced attribution modelling to all GA users and this provides the opportunity to (finally!) try and attribute some measure of value to the various different marketing activities that are carried out as part of the marketing role.

    There are three things that have been introduced that are particularly interesting:

    1. The facility to look back 90 days in a visitor’s history rather than just 30
    2. The option to create custom groupings of channels to be used in the MCF
    3. Most interestingly, the option to create a custom attribution model (more below)

    There are/were lots of blog posts written about these changes. On the 2nd item, this post from the Search Engine People is a great summary of what can be done with this functionality (essentially, re-grouping the standard channels groups – organic, direct, PPC etc – in to groups more relevant to your business).

    The new type of model (called a Proportional Multi-touch Attribution Model) does away with the idea that it is the order or position of a touch point in the model that matters in the process. In a standard “last-click” model for example, then it is the last thing that a visitor did before hitting your site (whether typing your URL in to a search box, clicking on an Adword ad, or whatever), that gets all of the credit for the visit to the site (or for triggering the specified goal).

    In the new model (PMAM for short!), it is simply the importance that you assign to a given touch point that actually makes the difference to the attribution model, regardless of position. For example, if customer 1 clicked on a banner ad, then carried out an organic search before hitting your site and customer 2 carried out an organic search, then clicked on a banner ad, then both of these funnels would be treated in exactly the same way.

    But, what’s even more interesting, is that not all touch points are treated equally. For me, the purpose of most marketing activity is to somehow nudge customers along some sort of customer buying journey. We use quite a simple framework at Red Gate as follows:

    1. Awareness of problem – is the customer aware of the problem or opportunity that your product addresses?
    2. Discovery – can you help customers discover your solution to that problem/opportunity in the market?
    3. Validation – can customers validate your product?
    4. Retention – after they’ve bought, can you look after them and keep them?

    NB: This model is taken almost wholeheartedly from the book Digital Body Language by Steven Woods – a great and simple read which I’ll review on this blog sometime soon.

    Anyway, the point is – marketing activity, I think, should be focussed on moving people down this funnel. If you were selling a bit of anti-virus software, is everyone out there Aware that this is even a problem? In this market, I expect so, so perhaps your biggest problem is helping people Discover your particular solution amongst the masses. So if you were marketing an anti-virus product, you really should be working on helping people who haven’t Discovered your product to do so.

    So, when putting the PMAM together, you need to make some decisions about how valuable you think different activities are at pushing people through the funnel. And this is where I think the custom channel groupings get really useful. A good example in The Search Engine People article is the need to split branded and non-branded organic and PPC searches. Why? If your anti-virus software was called “Ben’s AVSoft” (for some unknown reason!) then people might find your website through two distinct types of search – by typing something like “Great windows anti-virus software” (non-branded) or by typing in “Ben’s AVSoft” (branded – because the customer obviously already knows about your product). If a customer clicks on an ad of the former type that you’ve put up, then I would argue that that marketing activity has done more to push that customer down the funnel than the latter. This is because you’ve moved that customer from being just Aware of the problem to having Discovered your solution. With the branded search, you haven’t done any such thing – they’d previously discovered your product by some other means, and are now probably just coming to your site to have another poke around.

    I.e. the purpose of bits of marketing activity is to effect some sort of state change in the potential buyer – and the values you give to different touch-points should reflect how impactful those touch points are at effecting those changes. The way the PMAM works (or at least, the way I’m going to try and implement it in Google Analytics) is that you give a value, relative to 1, for how important you think each touch point is. So, if you think a non-branded Google PPC Ad is 10 times more effective than a branded Ad for marketing effectiveness/effecting a state change, then you could give the former a rating of 1 and the latter a rating of 0.1.

    And this is where the Custom Channel Groupings as outlined in the Search Engine People article are so useful. You can’t for example, go through every single referring site and mark each one on this scale. Instead you merge them up in to groupings meaningful to your business then provide a rating for each group. As they suggest, I would certainly split branded and non-branded PPC Ads in some way (perhaps based on the Ad Group names, if a good convention is used?), but you could also split up types of referrers, types of email and so on.

    And this is why I titled this article “When Marketing isn’t really Marketing”. Can you really call it “marketing success” in, say, SEO, when a customer types in “Ben’s AVSoft” and comes straight through to your page? Of course some earlier bit of marketing activity was phenomenally successful because the customer must have heard of you somewhere – may be a conference, or a blog post, or from a colleague. But each of these activities were what I would call “successful marketing” – they’d effected a state change in the mind of the customer to bring them closer to your product. The search for “Ben’s AVSoft” wasn’t marketing at all. If anything it was just a semi-technical piece of work to make sure your Google result looked bearable (because it’s not hard to get high ranking for a search on your exact product name – as long as you don’t call your product “Taylor Swift”).

    And, just for the record, here are my strawman ratings for some of the most important touch points that we use:

    1. Non-branded PPC and organic – 3
    2. Branded PPC and organic – 0.1
    3. Direct – 0.01
    4. Banner ads – 2
    5. Referrals – 2-4 depending on details
    6. Social Media – 2
    7. Emails to customer base – 1
    8. Emails to non-customers – 2


  • Lean Personas – How to Make Personas More Useful

    First of all, I prefer the term “Personas” to “Personae”. Doesn’t “Personae” just seem pretentious, n’est-ce que pas?

    Anyway, the point is, I’ve always struggled, over the years, to find personas a useful tool in marketing. I’m specifically talking about marketing here, rather than user-centred design – I know these are two sides of the same coin, but my main concern is with their use in marketing.

    The process of creating personas has often been interesting, perhaps even fun, but then when it comes to the next stage – of actually using them in some way to drive marketing effort – they never seem quite right and they never seem very usable. I think they can also be slightly dangerous – if the process for creating personas hasn’t been cast-iron, then you can find yourself making messaging and positioning decisions based on, what – a few Google searches, chats with a couple of customers and a few internal meetings? Not really good enough!

    So I thought I’d describe the process I prefer to use. A key part of this, though, is the end goal. For me this is:

    Resulting personas should be strong enough that they are believable, simple and genuinely useful for sales, marketing, user experience and any other member of the team.

    This seems a little vague, but the point is – the usual problem with personas is that a lot of effort is made, some big pictures of archetypes are printed on the walls… then everyone gets on with their jobs, ignoring the work that’s been done. A persona should be so strong, that the sales team members recognise that person perfectly, have just spoken to five of them that week, and keep referring to the persona, without being hustled by marketing or UX.

    So, the process I use is as follows, and is actually very simple:

    1. Start with some market segmentation. Don’t be tempted to jump in to personas yet, but start by trying to figure out a few basic segments for your market. There are lots of ways of doing this but, for me, the key point is to avoid personas at this stage. Why? Because it can bias your segmentation towards familiar and known archetypes, undermining the validity of your segmentation. For example, if you’d worked marketing mortgages for a living, and you’d always worked in the homeowner segment only, then you might be able to come up with a rich and powerful set of personas for types of mortgage owner such as “Young, stretched first-time buyer”, “30s affluent”, “Older, careful-with-money” and so on. These would be based on your biases about people you’ve encountered in your work. But what about Buy-to-Let borrowers? If you’ve never encountered them before, you wouldn’t even consider different BTL personas. It might be (I don’t know) that a quarter of all mortgages are lent to this group, and by missing out this group in your work, you’re forgetting to create personas for a key segment. If you start with a segmentation first, based on some real data, then you’ll be spending your efforts on persona creation in the most valuable areas.
    2. Once you have your segmentation, take the largest ones of most interest (2-4, any more can get confusing) and create personas based on these. NB: It may be, in the above example, that you’re just not interested in Buy-to-Let borrowers. Fair enough, ignore them, but at least you’re doing that based on real data.
    3. There are a lot of well-documented processes for creating individual personas. Your user-experience teams, if you have them, are likely to be of great help here. For me though, a guiding principle is that these have to be based on real people. I know this is obvious, but if the end goal is believable and useful personas, then these will only happen if you’re pulling out traits from people you’ve actually spoken to. In the example above, if you were trying to better define a “30s affluent” persona, you need to speak to some people in their 30s, who are genuinely affluent. Are they actually in their 20s, or 40s? Does age even matter? And do they feel affluent? What’s that based on? Then, when you go in to further characteristics (such as “Where do they go out?”, “What websites to they read?”, “What newspapers?”, “What sort of neighbourhoods do they live in?”, or whatever you’re interested in), these also need to be validated. It’s very easy to fall in to stereotypes here (“Go to the theatre”, “Read The Guardian” etc) but are these true or just projections of our own prejudices?
    4. Once you have some interesting personas, the next stage is to then validate and adjust these with customers. This is why I call this post “Lean Personas”. Rather than spending months coming up with perfect personas, then launching these in your marketing, I think it’s a lot more useful to do an initial, decent job, then to test these against the people you’re talking to, whether on the phone, at conferences, or wherever. Obviously you can’t ask someone “Would you consider yourself a 30s-affluent type!?”. But you can ask, as background, “What papers do you read?”, “Where do you go out?” and so on.
    5. Repeat steps 3 and 4 a few times, perfecting your personas as you go along. Of course you can start using these in early marketing, but the real value can often take quite a few months, if not longer – when you reach a point where your sales and other people are willingly using your personas to help them in sales conversations, and when you can classify people in to personas at the drop of a hat, because they’re so familiar and so right, then at that point, you’ve got some great personas going forward.

    Good luck. I’m about to embark on this exercise myself, so I’ll write up how I get on!