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Author: Mark DiMassimo

Drucker on Two-Track Planning.

I recently discovered in reading my copy of The Daily Drucker that I’ve long shared one of Peter F. Drucker’s main management philosophies – the concept of two-track planning.

For decades, I’ve heard the following sentiment.

“We can’t solve your problem because we haven’t done our strategic work yet.”

When I worked at other agencies, I always thought this to be the ultimate bureaucratic blindness.

Building the BRAND while we build the BUSINESS.

This is the core promise of our agency, DiMassimo Goldstein. This is the experience our clients have bought when they’ve bought us.

Not: “First we’ll build the brand, then we’ll build the business.”

Not: “First we’ll build the business, then we’ll build the brand.”

Instead, we do both, and simultaneously. Like you do!

Sometimes this translates as “Building the brand while lowering the cost of acquisition.” 

Sometimes it’s “Building the brand while driving sales efficiency.”

Sometimes it’s just “Growing the business and the brand.”

Our clients never wait months to see returns from an agency engagement. We typically deliver measurable revenue within the first 30 days, and we don’t have to sacrifice future success to do it.

Drucker calls this the harmonization of the immediate and long-range future, going on to state that “a manager must, so to speak, keep his nose to the grindstone while lifting his eyes to the hills.”

At DiGo, we call this practice two-track planning, and it’s implemented in everything we do. Imagine two columns on a page, the left titled URGENT and the right titled IMPORTANT.

Some urgent things are truly unimportant, but some we term “The Runway.” The board meeting coming up. The quarterly results reporting. The partner’s meeting.

If a plane doesn’t get aloft by the end of the runway, it doesn’t matter how good the food service and the movie were going to be. There are things you just need in the short run to make the long run possible. Often these things include results. That’s the Runway.

And, we don’t lose our strategic heads. We see the long-term opportunities in urgent problems.

And we manage them both, so that our clients can move forward, paying for tomorrow’s opportunities with today’s wins, all while strategically planting the seeds that ensure growth for the future in a time-starved world.

Let’s talk about inspiring action in the short and long term!

The Best Intentions Deserve The Best Creativity

Steve Jobs once asked John Sculley, then the CEO of Pepsi,

“Would you rather spend your life selling sugar water, or do you want to change the world?”

Old Advertising has answered with a resounding,

“I’ll have the sugar water!”

Great talent will line up to sell sugar water. Award show judges will reward them for it. Industry press will laud them for it.

The best intentions deserve the best creativity.

But, that’s not the way things work, in this system or any system we know.

In this system, if Pepsi has the most money, Pepsi can get a great effort from any number of great agencies.

Sugar water puts their kids through college and pays for their beach houses.

The best intentions will only get the best creativity if enough of us choose to make that so.

If you choose helping people change their lives over manipulating them.

A whole economy is being built on helping people change the behaviors they want to change in the way they want to change them.

But the old advertising industry is only seeing a small part of that business, because they are focused on where the big money still is.

And, because they’re focused on the easy.

It’s easy to be lighthearted and engaging about bubbly sugar water.

It’s harder to bring that same touch to things that matter.

The Founder CEO, A Marketer’s Orientation.

I love working for and with Founder/CEOs.

No doubt, this makes me an eccentric marketer and an odder ad guy, and casts extreme suspicion on my membership in the creative community.

Marketers are supposed to want to run their own empires – otherwise why spend all that money on a Harvard MBA and all that energy climbing the corporate ladder? Creative directors think the ideal client listens to their presentations, and then applauds. Ad agencies think their job is to please the target audience no matter what the client might think.

I’ve always hated that stuff.

You don’t let your target audience tell you what to be any more than you let your friends tell you who to be. There’s no integrity, surprise or life in that at all. Yet, in many places, it’s the norm.

And you don’t go to a dynamic, growing company – or a turnaround – to run a department like a fiefdom. You go there to be a key member of the CEO’s leadership team. You need that CEO to help you succeed even more than the CEO needs you.

I’ve always sought out clients with vision. Not rude or insulting, but laser focused, blunt, and as domineering about the brand as possible. Sometimes they are articulate. Sometimes they just know it when they see it. Either way, as long as there is really an “it” that will ultimately differentiate the brand in a world of bland, I’m in.

There will be twists and turns. I’ll hang in. I’m in it for the ride and because I believe in the destination.

As a marketing director or CMO, you are going to get the ride of your life working for a Founder CEO, and the twists and turns are no small part of it.

That inertia you feel is the marketing strategy hugging the road of a changing growth strategy. That’s a feeling you’ll rarely get in a big, lazy company.

But if you care about getting to the destination, you’ve got to care about making all the right turns along the way.

It’s exhilarating. But it’s not for everyone. If you can deliver on the business results, if you can be resilient through the twists and turns, and if you can bring on partners who share your passion and resilience, you will become irreplaceable to your visionary leader.

You’ll play your best game along side stunning colleagues. These will be the days and years you’ll never forget.

If you want to make a mark in the world, this is the way. And I’ll see you at the weekly meeting with the Founder/CEO.

The Behavior Change Manifesto

Inspiring Action.

People pay us to get people to do things.
And we’re really good at it.

It’s an awesome responsibility.
Changing people’s behavior.
Their decisions and habits.

That’s why we’re not a “performance marketing” agency. Or a “digital” agency. Or a “direct” agency.

That’s why we’re an Inspiring Action agency.

That’s why we only incite more inspiring actions.
And more empowering habits.
And why we use our powers to ignite growth only in organizations that promote those kinds of behaviors.

But responsibility isn’t the only reason.
People bet their careers on our results every day.
We have learned by long experience that inspiring action simply works better.
We learned by being in big, siloed agencies that undermined our results by separating us.
We learned by proving it through results.

That the two most important factors for igniting growth are Inspiration and Action.
Inspiration – is there an idea or experience at the core of the brand that inspires unreasonable passion.
Action – is there urgency and ease and flow and momentum in the funnel of actions that create even deeper engagement and customer value.

Inspiring Action ignites growth by changing behaviors. Each one of us made an inspiring decision to come together.
To use what we’ve learned to inspire action for worthy organizations.

 

Inspiring Action Organizations

Some organizations so outperform most organizations that it seems wrong to put them in the same category.

While most organizations fail in their early years, most of the survivors also fail. Among the majority that survive, generating average growth means growing at a few percentage points per year.

Only a small minority are fast-growing companies. Of the fast-growing companies, many are in fast-growing categories. No doubt, the leaders of these companies know that they are beating the odds. Likely, they feel very successful. But the fact is that most of these companies only grow fast quickly for a limited time, and then they revert to the mean — or fail. Particularly in gold rush industries, there may be many fast-growing companies, but nearly all bubbles end in pretty much the same way. They burst.

I’ve long been fascinated with the extreme exception — the company or organization that builds an iconic brand and inspires a movement.

Most businesspeople miss the most important things that make for this kind of success. Perhaps this is because they try to reduce the life of the business to just business. Working closely with the leaders of rare outperforming, high-impact organizations, I’ve always found them to be on a mission to create something very different in the world. While the people at the top of these organizations are typically extremely savvy about business, they haven’t been so much business managers as movement leaders.

Call it “purpose” or “meaning” or “an inspiring idea” that fuels these businesses. Behavior change scientists might call it “a moral frame” that attracts, inspires and encourages the identification we measure as brand affinity, customer loyalty and advocacy.

While most businesspeople seem to judge incentives by the simple measure of whether they bring about the desired action, the leaders of these companies see incentives differently. They realize that all action is not created equal, and they appreciate that the meaning behind the behavior is actually much more important for long-term success and impact. The results of behavioral economics experiments actually bear this out.

Most business managers incentivize action, but great leaders inspire action.

Part of inspiring action is actually forgoing the easy results that could come from generating action with cheap but unaligned incentives. Don’t read that wrong — they don’t forgo the results. In fact, their results are much, much better.

It’s not the results they sacrifice. It’s the ease. Cheap tricks are common, easy to explain and relatively easy to execute. Copying your competitor’s “loyalty” program, for example.

Building a distinct and meaningful brand with an entirely integrated experience is a whole other thing entirely. It just happens to work so much better.

Behavior Change Science Update: Moral Reframing

When Steve Jobs was trying to hire John Sculley, then the CEO of Pepsi, to come and work with him at Apple, Jobs said,

“Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?”

Sculley did leave Pepsi and join Jobs at Apple, becoming CEO. At first, it was a lovefest, but over time they clashed, leading to Jobs’ ouster from the company he had founded.

It turned out they didn’t share the same values.

For Jobs, changing the world was a moral imperative. For Sculley, the technology business was a cool consumer products business that was first and foremost a business.

This cautionary tale is a good way to introduce the topic of moral reframing. It contains all the tensions a behavior change marketer must resolve in order to successfully use this technique.

The news is that Robb Willer, a Stanford sociologist, has found that an effective way to persuade people in politics is to reframe arguments to appeal to the moral values of those holding opposing positions (https://news.stanford.edu/2015/10/12/framing-persuasive-messages-101215/).

We know from testing and experience that similar reframing works outside of the political realm as well.

For example, let’s say my company has invented a new way to get you to exercise more.

I believe that if you were to try my product, you would exercise more, be healthier, live longer and feel more energy and vitality.

In other words, in my moral universe, exercise is about health.

But, maybe my audience cares about cool experiences and being part of an “in” crowd. If I reframe my presentation of my innovation in that frame, I’ll make many more sales. My persuasive communication will be much more successful, creating much more behavior change.

If we design our experience around this frame, we’ll create much more sustainable behavior change.

So, why doesn’t this happen more often?

“Moral reframing is not intuitive to people,” Willer said. “When asked to make moral political arguments, people tend to make the ones they believe in and not that of an opposing audience – but the research finds this type of argument unpersuasive.”

Most people tend to pitch from their own frames of reference, and moral frames are the least flexible.

But, understanding the audience and employing the audience’s frame of reference is the core of successful communication.

So, let’s get back to that Steve Job’s story.

Did he know something about Sculley? Did he know that Sculley had achieved wealth, respect and power and was now looking for a legacy?

Very likely. Jobs was an excellent salesman.

Or, did Jobs just speak from his own moral frame and it happened to work in this case?

Jobs was a true believer, so this is likely.

I tend to think it was both. Jobs thought he’d found someone who was ripe to be influenced by a moral frame they could share.

This is the tension between leadership and sales, between brand and response, that must be managed.

Excessive personalization tends to obliterate integrity in the brand. By attracting people who don’t share your values, you end up with a customer, an employee – or in Job’s case, a boss – who doesn’t really share your values.

And, bad things happen.

One approach that works particularly well in politics is to look for a larger frame. This is a way to get beyond my frame or your frame.

For example, Lincoln believed “if anything is evil, slavery is evil.” Others believed “slavery is our God-given institution,” while still others believed “slavery is an evil, but it’s not worth risking war over.”

Lincoln looked for a new moral frame that could be shared by more of his audience. He found several. The first was: “A house divided against itself cannot stand.” This, from the Bible, spoke to a broad swath of Lincoln’s audience. He employed the frame he later used in the Gettysburg Address, when he argued that the Founding Fathers had already dealt with the issue of slavery, that they had worked to set it “on a course of ultimate extinction.”

At the time, respect for the Founding Fathers was very great – it was a moral frame shared by a large percentage of the audience.

So, in sum:

  • Speaking from your own moral frame is integrity, but it is often ineffective integrity.
  • Speaking from your audience’s moral frame is more effective, but it can be manipulative and hurt the brand.
  • Finding a frame that can include both the brand’s values and the audience’s too ultimately creates the most sustainable behavior change while it builds the brand.

For our client, Weight Watchers, which believed in healthy weight, healthy lifestyle and healthy community and then found that their audience had shifted focus to healthy lifestyle, we found that their frame was already broad enough to adapt, and all that was needed was to refocus the members themselves.

For Sallie Mae, we saw that “Let’s Make College Happen” could unite all the constituencies – parents, students, guidance professionals and Sallie Mae employees – all of whom are focused on making college happen.

TradeStation was obsessively focused on the most powerful trading technology while living the Miami lifestyle. When it became clear that the audience cared about both, rather than just the awesome technology, TradeStation widened the marketing frame, and the result has been like a beautiful big blue wave.

Frame like a master, and you’ll love the results.

This has been your Behavior Change Science Update: Moral Reframing.

Happy #InspiringAction

Welcome to the Direct Age.

People have never had access to so many amazing tools for connecting with organizations and services that can inspire them to achieve incredible things. Not so long ago, “consumers” were out there. Marketers needed to learn about their customers and their preferences from “the channel,” the sales team, or from expensive market research. They needed to be recruited through retail or sales. It was hard to know much about them as individuals. Today, your customer holds you in her hand. Texts you. Tweets you. You are the button she pushes. You are the apps she launches. You are the tool she uses to get from here to there. Physically. Emotionally. Mentally. You are your customer’s utility. Today, consumers have unprecedented direct access to the organizations that serve them. Equally, companies have unprecedented direct access to their customers and prospects. The direct age is the age of interactive selling. It’s the age of collaboration. It’s also the age of social customer service. If your service and your story works best for inspiring action in the customer, and if that action becomes habit, then you win.

We inspire greatness in individuals and in the companies that serve them through great direct experiences that inspire action.

 

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Brand Is What People Say About You When You’re Not In The Room.

brand blog

Branding is the process of building a coherent and distinct pattern of associations in the mind of a target audience.

When I say, “Apple,” a whole world of associations come up. When I say “Microsoft” a different world of associations come to mind. To the extent that both bring up associations, they have been “branded.” To the extent that those associations are clear, distinct, and helpful, they have been successfully branded.

Branding firms use culture, product, image, design, sound, voice, language, price, service, entertainment, celebrity, fashion, and interaction – an extremely broad range of tools – to build the brand. Today, the mission of an organization and the meaning of being associated with that mission is important to many people as well.

Too often, branding is associated with much more limited objectives. For example, logo and visual identity standards. While these are key tools for branding, they alone don’t create the brand.

Very often, when people use the word “brand” they are referring to what the company thinks and says about itself.

But brand is what other people say about you when you are not in the room. Brand is about what your audience feels about you in their heart of hearts. Your brand is not what you tell people it is, your brand is what people tell people it is. What you say is just your attempt to affect that understanding.

Today, brands are built by great products and services, first and foremost. In a world of online reviews, advertising and spin cannot trump a predominance of bad experiences. Not everyone, but your target audience must be delighted.