Why Marketing is Becoming Like Software Development

by Nick Van Weerdenburg on July 30, 2010

Software development is influencing marketing a lot these days with the emergence of Agile Marketing and Test-Driven Marketing- Agile and Test-Driven concepts being two concepts that have dominated software development for the last 5 years.

The reason is not a fad crossing over, but rather a more fascinating and powerful phenomena. As the Internet has become pervasive in our lives Marketing has become testable, much like software, as well as more impactful due to the amount of reading buyers now do during the buying cycle.

Agile software development embraces change and measurement, allowing responses to “market” signals that are leading indicators of failure. Signals include early customer feedback, early robustness feedback from automated tests, and ongoing feedback from regression testing, which captures failures due to the landscape changing.

But so what, you might ask? Marketing has become testable. Whoop-de-do. I’ve been marketing for twenty years, and we’ve done just fine without testing.

My answer? Marketing mostly sucked from a customer perspective. And this was effective and professional because there wasn’t much other option. Marketing wasn’t sales, and sales was the group responsible for strongly targeting messages to buyers. Marketing was background support. Marketing didn’t have access to the customer mind, by message or by volume of content (diversity in customers makes available volume of content critical for targeted messaging), and as a result marketing was largely product focused.

That’s no longer the case. Where sales was once needed to deliver targeted content, buyers now look for the content themselves online. And if they don’t find yours, they’ll find someone else’s. Last generation marketing that was background to the targeted sales message is now leading in the foreground, and landing with a awkward thunk.

In the new marketing environment, we need marketing to work well or we’ll fail. The Internet has changed how we sell, and marketing does a lot more of the selling because that’s where the customers are- at their computers researching their own needs. Selling has become buying facilitation, and if marketing doesn’t step up and do more of this type of selling with relevant targeted messaging, failure is almost unavoidable.

The other massive influence in the new marketing environment is that we can now measure if marketing is working. Considering that we now need marketing to work, that is very good thing.

Inbound marketing, Internet lead generation and Pay-Per-Click advertising (PPC) all test marketing through conversion rates on multiple website goals such as newsletter signup, RSS subscription, Facebook fans, white-paper downloads, requests for a demo, successful multiple touches, purchases, and so on. There are literally hundreds of amazing measurements and tests that can be applied- either on existing data or on data created from intentional tests.

This is enabling marketing to be test-driven, and in complex markets, it’s providing the tools for marketing to become agile. This is exactly what happened in software- the focus on feedback from customers and tests enabled software development to become agile. Indeed, the concept of Agile Software Development was somewhat meaningless until the feedback mechanisms were there.

Marketing has become like software. You run it, test it, and it either works or it doesn’t.

The bottom line is that today we must sell with marketing, and we can now measure our marketing. These two incredibly strong influences have combined in a way that will fundamentally change the entire business world.

And that means we can start applying some of the same processes- agile responses to market signals, testing for user adoption, testing for relevance, and actually building our marketing collateral so that it is in fact testable.

If you think marketing automation and automated lead nurturing are a fad, you better have lots of brand equity to ride on. Because if you don’t, you are not going to be able to build it in this brave new world.

For more on this topic, I recommend checking out some of the new wave of marketing automation vendors- Marketo, Manitcore, Eloqua , MarketBright or Hubspot, as well as the Analytics vendors such as Google Analytics, Yahoo Analytics, and Omniture and see what they are saying.

And if you are convinced and want more details, or unconvinced but open to the possibility, subscribe to this blog via the Test-Driven Marketing RSS Feed or subscribe with the simple email subscription form over there on the right sidebar. Our next post, coming later today, goes will go deeper into the changing roles of Sales and Marketing.

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Why Don’t B2B Marketers Test More?

by Nick Van Weerdenburg on July 22, 2010

There was a post yesterday by Seth Godin on testing and how B2B marketers often avoid the early testing work that can save so much money later:

“Business to business marketing is almost always better if you treat it like direct marketing. ”

and

“Get it right for ten people before you rush around scaling up to a thousand. It’s far less romantic than spending money at the start, but it’s the reliable, proven way to get to scale if you care enough to do the work.”

You can read the full post here- Getting to scale: direct marketing vs. mass market thinking.

Testing is a common theme today- analytics, metrics and data-driven activities are exploding in popularity- but adoption is  slow. Marketers simply don’t take the time to test.

Data-Driven Marketing, a new book on data-driven marketing by Mark Jeffery, spends a lot of time on the challenge of getting to a data-driven marketing process, with the first two chapters being about why it’s not being done and how to overcome that:

Chapter 1: The Marketing Divide- Why 80 Percent of Companies Don’t Make Data-Driven Marketing Decisions- And Those Who Do Are the Leaders

Chapter 2: Where Do You Start? Overcoming the Five Obstacles to Data-Driven Marketing

In chapter 2, when discussing starting with small experiments to test campaigns before rolling out, Jeffery says:

“Although the majority of marketers are aware of this approach, my research shows that the vast majority of marketing organizations, almost 70 percent, do not use experiments to pilot test marketing campaigns relative to a control group. Why? The answer is that most marketing organizations’ reward systems are based on activities, not results”

This is what Pragmatic Marketing calls “list based marketing” and actively tries to change with their excellent Effective Product Marketing seminar.

In Chapter 2 Data-Driven Marketing lists 5 specific obstacles:

1. Getting started

2. Causality

3. Lack of Data

4. Resources and Tools

5. People and Change

Jeffery’s core recommendation? Start small and use wins to driven recognition of value and garner more focus and investment in data-driven activities. Also, find and partner with like-minded people to gain more influence. He also makes the important point that planning for testing and measurability early on allows you to structure your campaigns for those goals without a significant increase in cost.

Avinash Kaushik, Googles Analytics Evangelist,  identifies similar issues in the world of web analytics:

“You’ll find that data or tool are not your problem, it really is your company culture (both in terms of using data or getting your site tech teams to do things to give you data)” from How to Choose a Web Analytics Tool: A Radical Alternative

And Avinash has a good post on Seven Steps to Creating a Data Driven Decision Making Culture. where he talks about making the data easily relevant to the needs of stakeholders and showing specific wins in those areas.

Taking the direct marketing practice of testing to other areas is compelling. David Ogilvy, in Ogilvy on Advertising, published 1985, spends a lot of time talking about testing and what advertising can learn from direct marketing. Reading this book suggests that much of the success of Ogilvy’s advertising business flowed from a strong product marketing mindset (knowledge of the product and customer) and a strong testing ethos- things that weren’t traditional in advertising at the time.

In short, everyone agrees they need to be more data-driven, barriers to getting there are largely cultural, and small wins are the way to shift the culture and gather the focus required to scale the resources and infrastructure needed to effectively get there.

And if you are having trouble getting momentum even towards getting analytics support even towards a small win? Maybe you can’t get access to that data?

Consider using external analytical infrastructure- tools like Hubspot’s website grader, the Compete website for competitive information (Keep Your Enemies Closer), and Alexa for website traffic information. Also, Google is more powerful the you think. Use Advanced Google search methods to analyze your site for inbound links (link:<yoursite.com>) and help you search your and competitors sites (site:<site.com>) to look for trends and statistics.

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Are You Serving Extra Chunky Products and Messages?

July 19, 2010

Malcolm Gladwell on spaghetti sauce | Video on TED.com http://bit.ly/9K6Amd
A great video on how testing uncovered hidden diversity that 20 to 30 years of asking questions didn’t and led to the creation of extra-chunky spaghetti sauce.
Another interesting example from the video- creating one coffee roast for a group would test an average of 60/100. Segmenting [...]

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How to Effectively Delete a Blog Post

July 19, 2010

Google Reader Loves Your Content So Much It Just Doesn’t Want to Let Go
Sometimes when you delete a post, it doesn’t go away- Google Reader keeps it around. And with up to 65% of your readership using Google Reader directly or indirectly (many standalone readers sync with Google Reader, including NetNewsWire on Mac and [...]

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TED for Marketers

July 19, 2010

TED has become a phenomena, and an addictive one at that. It is a great source of inspiration for both presentation and content.
Top 5 TED Talks for Inbound Marketers is a great set of links and comments regarding TED talks of particular interest to marketers.
As a bonus, there is also a good eBook on content [...]

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Can Subject Matter Experts Destroy Your Company?

July 15, 2010

People have an expert problem. When faced with an expert, they become dumb.
So when you place a subject matter expert in the middle of your company or group, does your group become smarter or dumber?
A bit of both, depending on the personality of the subject matter expert and the personality of the people in [...]

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Please Stop Generic Enterprise Marketing!

June 22, 2010

The biggest challenge for most tech companies is marketing. You often hear companies lamenting poor technology winning out due to superior marketing.
I’m not sure if this is true. Maybe it was poorer technology (read less cool) but was it a poorer solution?
I don’t believe you can have a superior solution without superior marketing. If you [...]

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The Dark Matter of Selling: The Missing 90% of the Sales Process

June 10, 2010

The universe is made of stuff. The fancy term for the basis of this stuff is matter. But based on some calculations, we can only account for 10-20% of the matter in the universe- the other 80-90% is missing. The common term for this missing matter is Dark Matter.
The same concept applies to selling. Only [...]

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When Being Customer Driven is Dangerous

May 6, 2010

Is Being Customer Driven Great?
Being customer driven is great. Tap into the voice of the customer, and channel his wants and needs into compelling products and messages for rapid business growth, high profits, and stellar performance.
How can that be dangerous?
Simple- the wrong customer. You don’t tap into the voice of your TARGET customer in your [...]

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How to Be Test-Driven In Your Blog Marketing: Comments, Subscriptions, Social Media, Links and Traffic

April 12, 2010

I am making the assumption, based on effort and focus, that my articles are interesting and, hopefully, somewhat unique. But, in keeping with the theme of my blog, I need to test that.
Also, my goal is relevant readership. I don’t have any ads on this site and page views aren’t the main goal. A strong [...]

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