In the book "The Black Swan" Nassim Nicholas Taleb wrote:
"History and societies do not crawl. They make jumps. They go from fracture to fracture, with a few vibrations in between. Yet we (and historians) like to believe in the predictable, small incremental progression."
In addition to Mr. Taleb's comments about change happening in
jumps, he also makes the point that most people do not see the change
while living through it and it is only in hindsight that we construct
history - from a future point of view, as if we knew what was going on
at the time.
I think we're in that time right now. The current stimulus bill and
all the associated bailout plans are the cause - and re-crafting marketing
will be the effect.
(FYI - This book is one of the few I always keep handy, earmarked, dogeared, postit noted, and highlighted. It is truly one of the best books you can buy. I urge you to do that NOW.)
Marketing is Becoming a Bad Thing
It started innocently enough... AIG ran an incentive program for it's top-performing independent agents. Agents who sold more or contributed more than the others - were rewarded for that effort. But because AIG was receiving bailout money the press jumped on the story and incorrectly reported it as an "executive retreat" on the taxpayers dime. Poor reporting - wrong facts - but major buzz.
Then, Citigroup get's slammed for their naming rights contract - again - poor reporting - and omitting truths that would have lowered the "buzzworthyness" of the story. The result of this bad journalism in some cases and outright lies in others, led to more companies getting slammed for running legitimate marketing events. The most recent example is that of Northern Trust getting rousted in the press for the Northern Trust Open golf tournament.
But the impact isn't just on companies who have taken (or will need) bailout funds from our government. When helping Barbara De Lollis on her article on group travel awards for USA TODAY I asked a few CEO contacts of mine who value programs such as incentives, meetings and sponsorships if they would be willing to contribute to the cause and speak up on behalf of these proven tactics - the answer was a resounding "No." Not one person wanted to raise their head above the log in fear of getting it shot off.
Marketing is becoming something companies don't want to talk about.
But Company-sponsored Marketing is Really, Really Bad
It is now becoming apparent to me that any marketing activity initiated and paid for by a company is seen as a potential lightning rod for bad press. It's as though journalists woke up yesterday and discovered marketing as if it were fire to a Neanderthal. Eyes wide with excitement and awe, they write, post, and report on all the ways companies spend money to convince employees, partners and consumers to do business with them - and why that expense is a waste!
Marketing is now a tipping point that won't be visible for a few years and only with hindsight. That tipping point is from company sponsored-marketing to audience-sponsored marketing. I know there are few of you who have been preaching this for a while - "the audience owns the message." I think the difference now is that up until today, the audience was just the consumer and those activities were an adjunct to other marketing tactics. But the future will be audience sponsored marketing as the ONLY marketing tactic and encompass ALL audiences - consumer, channel and employee.
What will it look like?
Let's Peer Into the Incentive Intelligence Crystal Ball...
Employee Programs
- More peer-2-peer programs with more functionality that allow employees to connect their recognition to sources outside the company. Awards not only will be visible on the cubicle walls but in local news papers, websites and blogs, expanding the sphere of recognition, increasing the employee's satisfaction, and serving as advertising for future employees
- More communication on the total package of "rewards" the employee receives from their employer to better communicate the company value
- More employee referral programs - using your employees as a recruiting tool is and always has been smart marketing
- More programs connecting employees to channel and end-user customers - diffusing the marketing from a "company" talking "at" a target, to employees (people) talking "with" potential customers (people)
Channel Programs
- Companies will focus on increasing the connections between channel members to allow for conversations and recommendations. Even when competitive, channel partners talk and help each other out. Enabling more dealer-2-dealer or distributor-2-distributor communications will enhance a brand in the marketplace
- Increasing use of local advertising - further distancing the marketing from the company
- Hand-in-hand with local advertising I see more liberal application of existing co-op money to provide more targeted business building for the individual channel partner (local incentives, consumer programs, employee retention for the distributor, dealer)
Consumer Programs (This one is moving pretty quick so some of these are here now and will only get stronger)
- More programs that allow consumers/customers to talk to each other and recommend products/services
- Consumer generated ad content
- Programs that allow customers to reward other customers for choosing specific products/brands
- Associate networks like amazon.com's except for consumers, allowing the individual to pick and choose the brands, retailers, etc. they recommend to their friends
The Technology Is Here but is the Mindset
Social networking tools are more and more prevalent today and being adopted at increasing rates. These tools will form the backbone for future audience-driven marketing. While they have been applied in the consumer space I suspect you'll see
more and more programs created by, managed by, and used by not only the
end-user customers, but employees and channel partners as well.
I almost can see every Facebook page, linked in profile and twitter home page looking like a NASCAR driver uniform - each person connecting their contacts to their favorite brands - and getting something in return.
Marketing will make that leap from being sponsored by the company to being ENABLED by the company. It will probably be cheaper and more effective in the long run.
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