Brand Culture: Mixed martial arts & brand architecture

by DK Badenhorst (@BrandCultureSAUFC 229’s recent McGregor/Nurmagomedov fight was said to be one of the biggest fights in Ultimate Fighting Championship history and, as it turns out, the fight made headlines —for all the wrong reasons. But between Conor McGregor, Khabib Nurmagomedov and Dana White lie some interesting cultural branding lessons and, more specifically, a brand architecture lesson.

While the fight itself was indeed something to witness, YouTube search recommendations sadly include the phrase “post fight brawl”. For those not familiar with the combat world, ‘brawling’ is not something that any self-respecting mixed martial artist wants to be associated with. Entry-level students train to defend themselves against ‘brawls’ and experts tend to avoid them at all costs.

While the broader outcome was disappointing, the details remain interesting.

Personal brands

Jumping right in, it’s important to understand the two fighters. Beyond their styles of fighting, their personal brands also pulled them apart. McGregor is known as a dangerous striker and Nurmagomedov is arguably one of the best wrestlers the UFC has seen. But their personal branding seems to stretch even further apart. This difference was brought to life by Beats and Reebok, the brands using McGregor and Nurmagomedov respectively in their commercials.

https://youtu.be/nRKeamyoTsQ

The Beats commercial features McGregor and does a fantastic job of capturing the spirit of the Irish fighter. Starting in the middle-class suburbs of Ireland, we follow a group of boys collecting in what seems to be a communal area to support their friend, Liam, in an upcoming fight. While the boy in the ad is not supposed to mirror McGregor, you may be excused if you interpret it as a childhood version. The boys in the commercial were given free rein with improvisation and the opening lines “Yo, ginger”, “What’s up, Ugly?” are said to be completely off the cuff. Knowing this is a lovely little detail and helps us understand how the fast-talking, bombastic McGregor is adored in his home country — this and, of course, the pride that sporting heroes contribute to their nations.

The group of boys will be familiar to many: joking insults, mock punching, open affection and, if you look closely, the deep need for pride and belonging. A frame-by-frame analysis isn’t necessary to see how the TVC is littered with the defiance and rebellion that McGregor is known for. It tells the story of working hard and dreaming big in order to make it against a system that tries hard to keep you down. Because the archetypal nature of it is so easy to recognise and understand, the McGregor brand personality makes for great entertainment.

Reebok’s Nurmagomedov’s commercial couldn’t be more different if it were briefed to be. It has the same structure as the Beats ad: childhood, upbringing, camaraderie and fighting style. But this is simply the spectrum on which they oppose each other. The Reebok TVC replaces the urban setting with the vast mountainous landscape of what I assume is Dagestan — Nurmagomedov’s home country. The rags-to-riches Juicy soundtrack is replaced by music that sounds far more cultural and the banter of young boys replaced by feet on gritty mountain trails and the sounds of combat. Instead of casual t-shirts and jeans, the boys here wrestling singlets and the mock jabs through clothes lines is substituted for training videos that even features the clip of a childhood Khabib wrestling a bear. One YouTuber has joked that he would’ve bet differently, had he seen that clip.

If anything, this ad is about obedience and diligence. The boys in Nurmagomedov’s commercial are not so much concerned with the success that being a champion will bring. Instead, they do seemingly nonsensical exercises — running in lines, climbing ropes and wrestling exercises. The underlying narrative is not against a system; instead, it paints a picture of the obedience and hard work that’s required to carve success out of the unforgiving natural order.

Important distinction

A very important distinction here is that McGregor’s brand sees the world of MMA as a vehicle through which chaos and violence may be brought into culture, while Nurmagomedov’s brand treats it as a vehicle through which we may order and channel our destructive violent nature. The former brings violence to order and the latter brings order to violence.

So, what’s the architecture lesson? The two fighters are different brands but aren’t fundamentally different. We’re not comparing Nurmagomedov to Michael Phelps, nor are we comparing him to Floyd Mayweather. The two fighters are UFC sub-brands.

The UFC may be seen as a house of brands, just like Unilever. The mother brand provides some fundamentals or table stakes, such as quality, reassurance and care, while the brands are free to evolve in order to keep up with the people that use the brand. Whether brand is a stylish haircare brand or a nurturing food item, you can always be sure that it’s a safe, quality product because it’s a Unilever product.

The UFC is an interesting brand. The origin isn’t a tournament but rather a US$100 000 standing offer for anyone who could beat a Gracie family at Jiu Jitsu. When challengers filled the gym, Rorion Gracie decided to put on a bigger show and UFC1 was born. A large part appeal of the event was rooted in the fighters and, in 1993, the fighters were given ultimate freedom while the UFC brand protected this freedom by arranging a cage. The story goes that some of the ideas for the original Octagon included barbed wire to prevent fighters from getting out; true or not, it’s an interesting little detail given UFC229. The UFC was really a portal that allowed us to peer not into violent culture but even deeper: right into our violent nature.

One of the UFC1 challengers, Ken Shamrock, makes an interesting comment in this regard. The first fight was a slender Sevante fighter, Gerard Gordeau, vsa mammoth sumo fighter, Teila Tuli. The fight quickly ended when Gordeau kicked three teeth clean out of Tuli’s mouth (while he was down) before landing one last punch. The locker rooms went quiet. This wasn’t supposed to be legal.

Spectacle

It wasn’t a brand but rather a spectacle. Unlike other businesses, the struggle wasn’t ‘how do we make this culturally relevant’ but rather ‘how do we make this cultural’. It is worth noting here that we’re talking about mainstream American culture in the ’90s. This sort of tournament wasn’t uncommon in other parts of the world.

Culture is very complex and the meaning structures evolve in very different ways to allow for cohesive and sustainable societies in the face of a human nature and a dynamic environment. It’s also worth noting Clotaire Rappeile’s link between sex and violence in American culture — both are taboo in cultural terms and deeply codified in cinema. That is to say, we don’t see the actual deed; we see, for instance, the panning of a camera followed by the couple lying in bed smoking a cigarette. That means that they did it. Many cultures structure these elements of our nature differently and this should be kept in mind.

The sport struggled along, introduced more regulation (to control the violence) and eventually got sold to the Fretitta brothers with their business partner, White. Growth was in line with an increased adspend and it was only in UFC40, when the now-legendary Ken Shamrock took on reigning champion, Tito Ortiz, that things took off. As with any business, it’s difficult to pinpoint a reason for a spike but it’s widely agreed that the public disagreements and rivalry meant that it was going to be less of a martial arts event and more of a fight — like in the school yard. And this drew the crowds.

But, given the nature of the culture it operates in, the UFC (and other promotor brands) needs to maintain its ability to bring the excitement of combat to the masses while, at the same time, protecting us from the anxiety, confusion and fear caused by actual violence. A bit like your browser protects you from the real evils of the internet (think dark web).

Pre-fight banter, the actual fight and post-fight interviews (and keeping them separate) are a strong tradition in mainstream combat sports. Providing the platform and the cultural norms and expectations for this is the job of the mother brand. Build the rivalry to promote the fight, control the fight to make it safe, and reward the winner afterwards to keep people coming back. Mainstream sports like boxing and UFC are all about the entertainment and the athletes tend to abide by the implicit rules of leaving most of the pre-fight banter outside the cage and then calling it off once the fight is over. While the tension might carry through, the actual disagreement is cut clean. This tradition goes beyond American combat and reaches into music (rivalry between musicians) and other celebrities (celebrity roasting). This culture of tongue-in-cheek insults doesn’t always translate as we saw when South Africa had a roast of Steve Hofmeyer. The insults didn’t seem to roll off anyone’s back as they should and seem to build tension, rather than relieve it. The US is different. Sarah Silverman noted on an age-related insult that it cut a bit deep but that it was fair, so no hard feelings. If the culture doesn’t have this attitude somewhere in the coding, you probably shouldn’t try to import roasting.

Nestled in culture

The UFC’s pre-fight banter, set up for fighters to have a go at each other, is nestled in this culture. The Irish fighter seemed to take to this like a fish to water and here we may argue that American and Irish cultures overlap. McGregor took pre-fight banter a bit too far and he leant too heavily on the ropes of culture (that is to say, he expected culture to defend him against the consequences of his increasingly offensive insults). A slew of unacceptable comments was aimed at Nurmagomedov’s country, family, religion and he even went so far as to force a glass of whiskey on the devout Muslim (think here of how religious culture shoots its roots far deeper than roasting culture). This was after McGregor threw a dolly at Nurmagomedov’s bus, shattering a window and taking some fighters out of action. In many ways, this was more violent than UFC1 and started tugging at the modern brand that had been crafted. The mother brand was slowly losing control of its sub-brands, fueled by the UFC’s own decision to use the dolly incident as advertising for the fight. In looking at it through our brand lens, we can say that they disregarded the brand and became obsessed with the popularity of the sub-brands and ‘what will sell’.

The Russian fighter felt differently about insults and it’s possible to argue that the mother brand didn’t provide an adequate platform for the Russian sub-brand — especially with the new direction that McGregor was taking them in. The pre-fight banter cut deeper than the UFC could cater for and the boundaries around the octagon collapsed. The misunderstanding is clear when, in the third round, Nurmagomedov mounts McGregor, landing one devastating punch after the other, punctuating it with “let’s talk now”. After the round is called, a baffled McGregor is heard saying “it’s just business” and here lies the difference. To the one, it was show business and, to the other, it was personal.

The real brand damage was yet to come. Nurmagomedov submitted McGregor, shouted a final insult and leapt out of the cage to continue the fight outside the ring, which was followed by his team jumping into the cage to tackle the now-exhausted McGregor. In that moment, the UFC became a spectacle and violated the category norms of containing and controlling violence.

The Octagon is a registered trademark and one of the key brand assets of the mother brand. It’s comical but not entirely accurate to say the sub-brand literally leapt over the boundaries of the mother brand. But it’s close.

I’m not sure whether the UFC will suffer ticket sales or pay-per-view (PPV) viewers. But, from a brand perspective, we’ll be dealing with a different animal if White can’t align fighters with the UFC and what it stands for. I happened to read a comment about someone who, after months of nagging, managed to get his partner to go to a fight. Her feeling after interacting with the brand was not the excitement expected but confusion and fear. I’m sure she’s not alone, too. Die-hard fans felt disappointed and some simply feel that this isn’t something that should be supported.

Rock and a hard place

The UFC is now between a rock and a hard place. The culturally unacceptable ‘no-holds-barred fighting’ didn’t go away; it simply moved to pre-fight. But now it seems that a combination of the fighter’s personality, values and cultural background (the cornerstones of a brand) means that they can no longer guarantee the integrity of the Octagon.

How do we prevent this from happening to a brand? It’s first important to understand what your relationship to culture and, better yet, that cultural phenomena’s relationship to human nature. Social media brands play in our desire to cooperate and be social, traditionally a good thing, but when groups form without authority, we see the dark side of groups in the form of pro-anorexia and pro-suicide groups. So, too, the UFC is rooted in our complex relationship with violence and the phenomenon of organised tournaments. Tournaments traditionally allowed societies to determine who their strongest combatants were without killing the second strongest. It’s just a bad cultural norm to kill the second-in-line in case the enemy manages to kill the first. In this, combat has a lot to do with glory and strength and less so with insults and fame. Clotaire Rappaile did call the US a culture trapped in its teens, which gives things like strength and glory less traction and schoolyard fighting a lot more.

Beyond this understanding, the brand then needs a why — something we can believe in. This belief should first be something that inspires people, encourages sales and drives the business. Secondly, it should be culturally responsible, promoting values and beliefs that would improve society if everyone bought into the brand. And while both McGregor and Nurmagomedov stand for things we can believe in (should or shouldn’t is a different story), the UFC seem to lack anything of this sort — at least from where I stand. Granted, it’s tough for a combat brand to bring this sort of thing to the table. Our knee-jerk reaction is to say that violence is bad. But old-fashioned boxing seemed to have organically grown a positioning as something that orders violence into a force for good. An old Everlast commercial is the best articulation of this, dealing with purposeful violence and giving it shape. It shows the enthusiasm of a youngster being guided by the wisdom of an older man. The tagline summarises wonderfully: “Boxing makes you bigger.”

In an interview, White suspects that this will be felt for a while. I do hope this is not the case. I like the UFC and, as with most people, a fight gets my attention — it’s entertaining. But violence, guided to a benevolent end, might well be the steel girders that holds culture together — the watchers on the wall, if you would. Violence is simultaneously an enemy’s ability to destroy, our own ability to defend and our ultimate source of agency. Its’ therefore important not to regulate the UFC into impotency but rather to articulate the combat brand as a source of pride, strength and order.

 

DK BadenhorstDK Badenhorst (@BrandCultureSA) brings cultural context and long-term trend insights to brand communication through cultural insight and semiotics. He is back to contributing the monthly “Brand Culture” column, exploring the value and meaning interaction between brands and society, to MarkLives.com.

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Only Connect: What China’s wǎnghóng teaches us about influence

by Bradley Elliott (@BradElliottSA) Welcome to China, where 26-year-old Yiang Xia-Sunny is up early and hard at work. If she’d been born 40 years ago in the People’s Republic, she may have been set to work on state-owned farms or in a government-run factory. Her other option would have been to join the military. But this is 2018, and Sunny — the nickname she’s known by to all her fans — is carefully groomed and hard at work in China’s booming ecommerce economy.

Yiang Xia-Sunny on WeiboYiang Xia-Sunny
Yiang Xia-Sunny on Weibo

Slow economic reform, started by Deng Xiaoping in 1978, has provided a host of opportunity for young Chinese that their parents could only have dreamed of. Sunny’s day starts with posing in front of famous landmarks in the Macao Special Administrative Region of the People’s Republic of China, where she lives. Photographers click cameras to take images of Sunny, who is a member of that country’s wǎnghóng. Loosely translated from Mandarin, the word means a person who has gained popularity through the internet — an internet ‘star’.

Drive sales

Knowing this, it would be easy to label this social media dynamo as an influencer, but Sunny is so much more. Her power is in her very ability to drive sales using her massive database of some 3m+ fans on Weibo. A massive micro-blogging platform that has taken the republic by storm, Weibo was launched by the Sina Corporation in 2009. Today, its user base is almost twice the population of the US.

Weibo by the numbers
Registered users: 600m
Active users: 431m
Mobile: 93%
Revenues 2017: US$1.15bn

Sunny entertains her fans on Weibo by carefully nurturing them, and engaging with them regularly — when she’s not busy selling fashion and makeup and other beauty products through Alibaba’s Taobao, one of the world’s biggest online marketplaces.

Power

How powerful is Sunny? If you measure power by the ability to move product, you’ll get a sense of her prowess. During a recent online shopping festival known as “Singles Day”, she achieved sales of some 2.7m yuan (about R5.5m) in 24 hours.

It’s important to understand what underpins the wǎnghóng phenomenon. Factors that drive growth for online retail sales include the rapid expansion of the Chinese middle class, and a switched-on, tech-savvy youth. This is no longer Mao’s China; the cultural revolution has been digitised and China has fully embraced consumerism for the country’s benefit. And China is revolutionising online retail by making it as easy as possible for ecommerce to happen. This is done by empowering massive businesses such as Alibaba and Weibo, which in turn empower the wǎnghóng to do what they do best: to sell and to grow.

Trend and innovation channel, Online Media Rockstars (OMR) pegs the wǎnghóng economy at some €15.8bn in market volume (or R261.69bn in local terms). The market is so massive that it has spawned wǎnghóng incubators and training companies, and the product/service mix is enormous. As OMR says: “The Chinese influencer-marketing sector is an eclectic mix of the bizarre and the massive.”

Learnings

This is what the South African influencer community, and online retailers in this country, may learn from China’s wǎnghóng:

  • OMR reports wǎnghóngs or key opinion leaders (KOLs ) aren’t measured by followers but in sales per minute. An example? Last year in July, fashion wǎnghóng Becky Li sold 100 turquoise MINI Coopers in just four minutes. Those cars went at €36 000 (R596 260) each. As markets mature, measurements will become more sophisticated, and more directly linked to the bottom line.
  • China’s social media and ecommerce structures are entirely integrated, which makes buying easier for customers/fans and selling more accessible for the wǎnghóng.
  • China’s ecommerce is customer-centric. Everything is done to make the customer experience frictionless and to grow customer trust in ecommerce.

The integration of technology is key to the success of wǎnghóng, and something that local online retailers, technologists and service providers, which are driving ecommerce in SA, would be wise to emulate. By putting customers at the core of all we do, we can move from mere influence to sales. And it is sales and revenues (rather than influence) that will drive the growth of SA’s ecommerce and our economy.

 

Bradley ElliottThe founder of Continuon and Platinum Seed, Bradley Elliott (@BradElliottSA) is a serial entrepreneur who’s created a number of businesses in the digital and technology sectors. He believes that marketing needs to be reinvented so that it becomes more useful to humans and brands. He’s also a collector of fine whiskey. Bradley contributes the monthly column, “Only Connect”, which focuses on influencer marketing, to MarkLives.com.

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Media Redefined: Moving digital out of the toy shop

by Martin MacGregor (@MartMacG) I recently attended the Red & Yellow School Digital Showcase where a number of different agencies presented their take on digital. (Alright, I didn’t attend but watched it on Facebook Live which, for something like this, definitely counts.) The day reminded me of a visit to Hamleys, with most speakers and agencies unveiling a series of cool things they had done in digital.

Just like walking through a toy shop, the expectation from the audience was to be amazed by each reveal. It highlighted for me one of the main problems I have with most digital ideas I see. The focus is always on the WOW: “Here is this new thing that will be a first in the country using this cutting-edge tech that will just be awesome. We will give it a hashtag and, before we know, it will become a movement. And if it doesn’t, it will win us an award.”

This approach fails to answer two fundamental questions.

1. Why are we doing digital in the first place?

A colleague put it very simply on the day: It’s not about creating digital ideas; it’s about creating ideas for a digital world.

This immediately orientates thinking around consumer-centric, touchpoint-neutral ideas that are grounded in a consumer insight which might or might not include digital in the solution, dependent on consumer behaviour. As consumers become more digitally orientated in their behaviour, digital will naturally become a part of the idea.

Creating digital ideas force-fits digital onto ideas and results in the random sparklers that populate digital awards shows these days.

2. What does success look like?

Looking at lot of the case studies on the day, I got the sense that the wow of the idea was meant to overshadow any conversation around return for the brand. Even when mentioned, it was more in the usual award-entry metrics of “global conversations” and a gazillion impressions that, again, look great but have zero substance and lack credibility.

Every idea should be grounded in meaningful return numbers that will help shift a client’s business. Otherwise, what’s the point?

Every brand is very interested in the power of digital to help transform their businesses. Dazzling digital ideas might seem like the obvious solution but are often nothing more than a distraction. It’s time for agencies to get out of the toy shop, and develop ideas that harness all the right touchpoints, digital and non-digital, for all the right reasons. Only then will the true power of their ideas be harnessed.

 

Martin MacGregorMartin MacGregor (@MartMacG) is managing director of Connect, an M&C Saatchi Company, with offices in Johannesburg and Cape Town. Martin has spent 18 years in the industry, and has previously worked at Ogilvy and was MD of MEC Nota Bene in Cape Town. He contributes the monthly “Media Redefined” column, in which he challenges norms in the media space, to MarkLives.com.

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SA TV Ratings: SABC 3 — primetime top 20 for Oct 2018

by MarkLives (@marklives) The hottest primetime shows on SABC 3 in South Africa revealed: TV ratings for October 2018.

SABC 3 logoSABC 3, October 2018

Top 20 Programmes All Adults 15+
October 2018 Prime Time 5.30pm—10pm
Adults 15+ years U:35520 S:8436

Day

Date

From

To

Station

Programme title

Genre

AR

Viewers

Share

Mon 15/10/2018 1900 1930 S3 Isidingo:the Need Soap 2.9 1 020 712 8.4
Sun 21/10/2018 1830 1929 S3 Safari Live Docu 2.2 801 862 7.4
Sun 14/10/2018 1831 1929 S3 Blue Planet II Docu 2.1 736 435 6.6
Mon 22/10/2018 1730 1757 S3 The Bold and the Beautiful Soap 2.1 731 948 8.8
Sat 27/10/2018 1857 2103 S3 The Preacher’s Wife Movi 1.9 664 496 6.4
Sat 20/10/2018 1800 1900 S3 Top Billing Maga 1.7 618 761 6.5
Fri 12/10/2018 1758 2059 S3 Kfc T20 International:South Africa vs Zi Spor 1.7 607 948 5.4
Sat 27/10/2018 2103 2130 S3 News News 1.7 606 888 6.7
Sat 20/10/2018 1901 2056 S3 Father of the Bride Part II Movi 1.7 598 055 5.6
Sun 21/10/2018 1459 1747 S3 Yeh Jawani Hai Deewani Movi 1.5 550 473 6.9
Sat 13/10/2018 2129 2259 S3 Private Resort Movi 1.5 538 438 9.8
Sun 21/10/2018 1747 1755 S3 Music Musi 1.5 528 909 6
Mon 29/10/2018 1929 2022 S3 Survivor:Cambodia Real 1.5 525 491 4
Sun 28/10/2018 1800 1826 S3 Brooklyn Nine-Nine Dram 1.5 521 102 6.5
Wed 03/10/2018 1314 2058 S3 Momentum One Day International:South Afr Spor 1.4 501 104 5.8
Sat 13/10/2018 1900 2054 S3 Father of the Bride Movi 1.4 505 570 4.9
Sun 28/10/2018 1500 1800 S3 Lingaa Movi 1.4 503 283 6.8
Fri 12/10/2018 1730 1758 S3 Cricket Build up Spor 1.3 457 670 5.9
Thur 11/10/2018 1702 1730 S3 The Scoop – R Real 1.3 454 580 6.8
Thur 18/10/2018 1631 1730 S3 Afternoon Express Maga 1.3 446 975 6.7

Source: BRCSA October 2018

In 2016, the Broadcast Research Council of South Africa (BRCSA) changed its policy about giving away TAMS and now only monthly reports, highlighting the top 20 or 30 primetime shows on several popular channels, are available.

 

Broadcast Research Council of South AfricaThe Broadcast Research Council of South Africa (the BRC) is a non-profit, industry body that was incorporated in 2015 to cater to the audience research needs of the radio and television industry in South Africa.

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#AgencyFocus: iProspect — playing the numbers game

by Sabrina Forbes. With access to best-practice and learnings from peers around the world, iProspect South Africa believes it’s positioned to deliver global-minded strategies localised to specific nuances. The digital marketing specialist is part of the global Denstu Aegis Network, which acquired John Brown Media SA in 2015 and ad agency FoxP2 earlier in 2018, and the SA team works across a network of 4200 employees spread over 91 offices in 55 countries.

iProspect 3D ogo“We drive business performance with passionate specialists focused on measurable results,” says its website, in bold. With services ranging through display, content, paid search, conversion optimisation, design and UX, web development, social media management, programmatic, structure data and feeds, lead generation, mobile and organic search — all underpinned by data and analytics — iProspect positions itself as the digital marketing specialist in the Denstu Aegis Network, something that’s grown in importance with the rise of digital and hyper-expectant consumers.

Recent group client wins in the past 18 months have more than doubled the agency’s staff count, billings, and revenue in the past year, one such win being Absa Group, a regional win across 10 sub-Saharan African markets.

Driving performance

Jaco Lintvelt
Jaco Lintvelt

According to Jaco Lintvelt, iProspect SA and Amnet SSA managing director, driving performance for clients is at the heart of everything his team does and is becoming a greater requirement from clients themselves. While there are a few agencies parading as performance marketing specialists, for Lintvelt, iProspect was born out of that offering. “Performance marketing is in our DNA, which gives us a massive advantage. We’re very closely aligned to the global partners in our network and want to be pioneers in the field, which drives us to push the performance marketing agenda.”

Performance marketing, as defined by the American Performance Marketing Association, is a “comprehensive term that refers to online marketing and advertising programs in which advertisers and marketing companies are paid when a specific action is completed; such as a sale, lead, or click”. For Lintvelt, what performance really means for iProspect is “to be the critical partner to our clients, providing solutions that deliver transformative business results through specific combinations of our products and services.

“We have a team of well-trained and very passionate specialists that are fully committed to deliver to our clients’ requirements and help them grow their business[es] with performance-media campaigns that deliver business value. It comes through in our strategies, the way we optimise campaigns, and the way we think about marketing in general. This is why we say: Performance. It’s not what we do. It’s who we are,” he adds.

Increasing revenue opportunities

The industry, however, still has a long way to go and, according to Lintvelt, we haven’t gotten to a point where performance marketing has reached the full scale of brands. “The gap between those getting it right and those who aren’t is increasing,” he says, also sharing that he’s seen a rapid adoption in the ecommerce, financial, and insurance sectors. These have seen value and are beginning to invest even more.

An industry he believes will soon adopt performance marketing more heavily is retail, specifically fashion. It’s about increasing revenue opportunities and ensuring the overall consumer experience online is a lot better. The experience a consumer has with a brand should tie in on all touchpoints with SEO and UX perspective optimisation, as well as message and tone optimisation core to this requirement.

iProspect’s USP when it comes to standing out from the rest is how it builds a foundation on its data proposition before anything else. By understanding its clients’ business objectives and challenges and then deciding which media channels to push, it believes it’s setting itself apart from its competitors. Find out what you’re trying to solve, what data points you need to solve it and what data points you’re trying to gather, and then plan from there, not the other way around.

Trust incredibly important

Lintvelt also believes that trust is incredibly important when it comes to dealing with media channels. Clients are expecting personal communication and, by making use of the relationships the media platforms already have with their audiences, brands may begin to leverage and build their own personal relationships. Again, data is at the heart of all relationship building and the ability to track and measure consumer behaviour.

The Denstu Aegis Group recently conducted a major, global survey of over 1000 CMOs and senior-level marketers across 10 countries. What was revealed is that “marketing investment is on an upward curve, as marketing’s role as the primary ‘growth antennae’ for organisations is strengthened by the use of data. CMOs are really in a unique position to turn consumer insight into the next commercial opportunity and create new sources of revenue,” says Lintvelt.

Lintvelt and his team have noticed massive changes in the level of performance delivery put on marketers and agencies alike. Every CMO is now starting to ask, ‘Where did my 1c go?’. Reporting on data metrics is going to become more and more granular as “greater performance attributes become aligned with all elements of the industry,” he says. Even creativity needs to prove ROI. Is this perhaps the end of creative agencies as we know them or will they get absorbed and their work become part of a performance-based offering, as has happened with FoxP2?

Room for improvement

“Everyone has data now but how do we classify it into what is and isn’t useful?” ask Lintvelt. It seems there’s a lot of discussion around the potential of digital marketing but there’s still much room for improvement across the industry.

Businesses wouldn’t exist without people and he believes the agency is “successful because of the people [they] have in the business.” Finding the right people, however, isn’t that easy, and Lintvelt remains heavily involved in the recruitment and hiring at iProspect. He believes that people need to be passionate about the industry and feels he’s pretty good at picking up whether they truly are or aren’t.

To get the best out of people, a trusting environment with a collective responsibility is what’s being built at iProspect. Yes, there’s a pool table but that doesn’t breed culture. For Lintvelt, it’s about “creating an environment where people as a collective become smarter”. The agency invests heavily in its employees through a Google-based digital learning platform called NextGen. This education ethos stems from the leadership’s belief that, by giving people the tools to improve themselves, they’re being shown how much they are valued. For the agency, it doesn’t hurt that its staff are continuously upskilled and offering their clients new and exciting ideas. “You want to be in a position where you are leading the conversation,” he says.

Clear vision

2019 plans for the Denstu Aegis Network include creating a clear vision to make sure the momentum created in 2018 keeps flowing. “As a business, we really see the digital economy as an opportunity and are committed to digital transformation, but what we would really like to achieve in 2019 on a practical level is to further drive and refine the digital and data leadership that we showcased to our clients this year and build on it, as we understand it will pay an even more important role in our client’s marketing mix next year,” he ends.

iProspect logo
iprospect.comRamify

  • Office locations: Cape Town, Joburg
  • Revenue band: R20m+
  • Staff count: 40–50
  • Key clients: Dentsu Aegis Network clients
  • Services: Activations, advertising, B2B, creative, content, data, design, digital, media buying, media planning, programmatic, SEO, social, strategy

 

Sabrina ForbesSabrina Forbes (IG) is an experienced and published writer covering the food, health, lifestyle, beverage, marketing and media industries. She runs her own full-stack web/app development and digital-first content creation company. For more, go to moonwrench.com. She is a contributing writer to MarkLives.com.

“#AgencyFocus” is an ongoing weekly series updating the market on ad agency performance, including business performance, innovation, initiatives, the work, awards and people.

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Young, Gifted & Killing It: Tshegofatso Phetlhe

by Veli Ngubane (@TheNduna) We chat to Tshegofatso Phetlhe, an award-winning creative from Soweto, about the industry and her career —so much achieved, yet it feels like the beginning.

Veli Ngubane: Tell us more about yourself: where did you grow up and what did you want to be when you were growing up?
Tshegofatso Phetlhe:
I grew up in the south of Johannesburg in Naturena (there by Kaizer Chiefs) for a few years, then my family relocated to Diepkloof. Growing up, I wanted to be everything, from Oprah to Beyonce to a Picasso to Brenda Fassie. I wanted a career that meant I could be everything and anything.

VN: Tell us what you do and what does a typical day look like for you?
TP:
I am currently an art director at M&C Saatchi Abel and a typical day involves being in way too many meetings, stealing moments in between to brainstorm around very tight deadlines and doing some post- or pre-production on any upcoming campaigns. Our days are never the same, which is a blessing and a curse, ’cause you never really know what’s coming.

VN: Your educational background, where and what did you study?
TP:
I studied at the one and only greatest college in the world, Red & Yellow School in Cape Town, and I did both art direction/graphic design and the post grad in strategic marketing and communications.

VN: How can the creative industry attract and keep more black female creatives?
TP:
The industry can attract and keep us simply by putting us in the ring. Put the black girls in the ring and see what happens. Too many times I have witnessed and experienced instances where black female creatives are acknowledged as a part of the quota but not further than that. Get us in the ring and let us show you what we can do.

VN: Why do you think the advertising industry is struggling to transform and what do you think should be done to fast-track transformation in the advertising industry?
TP:
The industry is struggling to transform because it is still obsessed with the word[s] “transformation” and “diversity” as buzzwords and not what they actually mean. Just because you’ve hired the right people in the right amount of numbers doesn’t mean that the job is done. That’s where it starts. Transformation is also not just on the bottom of the food chain in the form of juniors and interns; it’s also a change in appearance of the ‘people’ tab on your agency’s website. Representation matters, on the studio floor and in the work and those doing it. We say it all the time but, until people who want to join the industry actually see versions of themselves there, it’s going to be a steep mountain to climb. But we’ll get there. We have no choice but to.

VN: I’m interested in your thoughts on how women are portrayed on TV and in adverts, and what you as a female creative are doing to change how women are represented in advertising?
TP:
I don’t think I’ve done enough (yet) to completely alter how women are portrayed, as the South African consumer is actually still a lot more conservative than people think. So, we still have a whole lotta ways to go. But I do believe that when we speak of women, especially black women, we need to shake off a lot of the beliefs that we’ve been holding on to for so long. So, my hope is that we show the strong woman, the depressed one, the joyous one and the smart one but also not confine her to being just that. Let her be multifaceted. It’s who we are.

VN: What advice would you give someone completing their high-school education this year and looking to follow a career in the creative industry?
TP:
Connect with the first person [who] exposed you to the industry. Don’t be afraid of connecting with them on what you want to do and where you want to go. Chances are that they will always want to help you get to where you want and help you focus in on which part of this lovely industry of ours you want to be a pro at. And research, research, research. The internet is in the palm of your hand and, if not, it’s on your mom’s phone, so do best.

VN: What do you feel is missing in advertising industry today and what should the future look like in South Africa and the rest of the continent?
TP:
The industry is way too comfortable with the way in which it has always functioned. It’s missing that startup culture that disrupted the technology industry and the transport industry alike. That energy of disruption is what’s missing but it’s also a burgeoning culture that is growing on our continent. Especially with the growth in access to digital knowledge. I see the agency model that we have today completely disappear as roles become more fluid, giving birth to better and more powerful ideas for change [and] empowering both client and agency.

VN: Where and when do you have your best ideas?
TP:
Just before I fall asleep and as I wake up. Those are the moments when I’m at my most unencumbered from doubt and the outside world. It’s the best.

VN: If you had a super power, what would you want it to be?
TP:
Time travel. I’m currently getting obsessed with learning how to do the same thing but doing it better every time. Imagine having the luxury of time to try out different ways of working, thinking and living to see the best way of doing it. I’d be a better pro than I am now, at living this one life that we have.

VN: Tell us something about yourself not generally known?
TP:
I can sing. In my next life, I’m doing a visual album and harmonising and creating songs that my friends and I can listen and jam to. I’m getting excited just typing this. Ha.

VN: What exciting projects are you working on at the moment?
TP:
A lot of the exciting things are currently in motion so I can’t say much but keep your eyes peeled for some stuff in the new year.

VN: Brag a bit: what is your career highlight to date; awards, brands you’ve worked on…? Don’t be shy, tell us.
TP:
Career highlight would be winning a Loerie Grand Prix on #rightmyname, a campaign my partner Thomas Kratz and I worked on for Nando’s. To be able to win so big on a brand that literally every creative I’ve ever known has wanted to work on is crazy beautiful. And, of course, the Golds and the Silver etc. Ja no, 2018 has been one helluva year of blessings and I couldn’t be more grateful. I’ve never flexed like this before but I think I’m allowed to here, right?

VN: Please would you supply two or three pieces of work you have been involved in?
TP:
#rightmyname, a Nando’s campaign aimed at removing that annoying red line that appears under non-English names. Probably my favourite piece of work to date.

Show Them. The Superbalisty Brand ad that we did to establish the brand for the year and the future. In the height of Black Panther and before that, the world has been keeping an eye on Africa and watching what comes out of it. This ad was a response to that.

For more, go to behance.net/TshegofatsoMo.

 

Veli NgubaneVeli Ngubane (@TheNduna) entered the world of advertising with a passion after completing his BSocSci (law, politics and economics) at UCT and a post-graduate marketing diploma at Red & Yellow, where he’s currently advisory board chairman. He also sits on the IAB’s Transformation & Education Council, is a DMA board member and has judged Loeries, Apex and AdFocus. He is the Joburg MD and founding partner of the largest black-owned and -managed full-service agencies in the country, AVATAR. He is also co-founder of M&N Brands, which is building an African network of agencies to rival the global giants. In his monthly column “Young, Gifted & Killing It”, he profiles award-winning, kick-ass black creative talent in South Africa.

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Brands & Branding: ROR— the (not so) new marketing imperative

by John Little (@litjohn2) Not a day goes by without somebody, somewhere, writing an article about slow (if not stagnant) growth, pressure on marketing budgets and the need for marketing to demonstrate real business success to meet the relentless pressure from the C-suite.

A recent example comes from the US Association of National Advertisers’ Masters of Marketing Annual Conference. ANA president, Bob Liodice, revealed that over half of the companies on the Fortune 500 list had declining revenues in 2016. He went on to remark. “the decline in business sales, over the last two years, is a sad reflection on the effectiveness of US marketing.”

More recently, an article in Forbes magazine put it succinctly: CMOs On The Hook To Prove ROI In 2018”.

Strategies to deliver ROI

In today’s complex marketing ecosystem, there is no shortage of strategies designed to address the ROI challenge:

  • Customer-centricity
  • Purpose-driven marketing
  • Digital transformation
  • Innovation
  • Agility
  • The list goes on….

Many of these so-called strategies are not new. They just have new names. The truth is that. if marketers just focused on doing the marketing ‘basics’ better — much better — the returns would follow.


Brands & Branding 2018 — order your copy now!Order your 2018 copy now!


‘Best work’ delivers best business results

There is a growing body of research-based evidence that the best ideas, however they may be taken to market, deliver superior results. For example, research from the UK’s IPA (Institute of Practioners in Advertising) and Thinkbox, in conjunction with the Gunn Report, revealed the direct correlation between strong advertising creativity and business success. The study showed that the most creatively awarded advertising campaigns were 11 times more efficient at delivering business success.

Further, an event report, presented by McKinsey, at the 2017 Cannes Lions, revealed that “enterprises which flourish in the creative realm, as a rule, witness equally impressive outcomes on the fiscal measures favored by the C-suite and Wall Street: namely organic revenue growth, total return to shareholders and net enterprise value. On each of these indices, firms receiving a high ‘Awards Creativity Score’ doubled the ratings posted by their low-ranking competitors.”

In a study released in 2018, Kantar Millward Brown used 12 years’ worth of BrandZ data to analyse 3.6m consumer interviews comparing perceptions of 122 000 brands in 51 markets. The results demonstrated that brands that are perceived to be creative and disruptive generated an average brand value growth of 154%. But add ‘great advertising’ and brands have the opportunity to achieve growth of 265%.

‘Great relationship/great work’ correlation

In the first study of its kind, debuted at the Cannes Lions Festival of Creativity 2016, Razorfish and Contagious analysed 15 years of entries and awards from the industry’s most-prestigious festival of international creativity to reveal the patterns, attributes and secrets behind the world’s top creative performers. Amongst the findings, they stated: “Agency/client relationships that last past the 10-year mark have win rates twice the average.”

Their recommendations included: “Invest in long-term relationships — it’s the long-established creative relationships that are proven [by data science] to be the highest performing over time.”

Perhaps not unexpectedly, time-starved marketers are finding it increasingly difficult to allocate time to the ‘softer’ functions such as external performance evaluation and feedback. However, despite the 24/7 ‘pressure’ experienced by marketers, most would agree that applying the discipline of management by objectives is key to improving marketer/external partner relationships, the corresponding output and, most crucially, marketing ROI.

Return on relationship (ROR)

Marla Kaplowitz, appointed president of the American Association of Advertising Agencies (4As) in 2017, had this to say: “People are at their best and most creative when they feel trusted and valued. Trust is the cornerstone of any good relationship. We must foster it through candid collaboration and conversations.”

On the other side of the Atlantic, the UK’s IPA put it this way: “Better client agency relationships lead to better commercial creativity and only the fittest survive and thrive, so it is in our best interest to put energy and effort into making them better.”

These opinions, combined with published data, should be enough to convince us that the best marketer/agency relationships, usually enduring ones, produce the best work. And the best work gets the best business results (ROI). Or, better still, one might call it return on relationship (ROR).

But there is no ‘return’ without ‘investment’. Marketers (and their external partners) need to invest in initiatives designed to improve the quality, efficiency and effectiveness of their relationships.

Performance management

That is where performance management/measurement comes in. It is the ‘tool’ that generates the right ‘conversations’ and identifies the need for ‘corrective action’. This might include:

  • Realignment on goals or objectives
  • Revisiting ‘rules of engagement’
  • Fine tuning team make-up
  • Improving skills sets
  • Refining process
  • Reengineering structure

From a practical standpoint, we need an approach that is time-efficient and cost-effective but is capable of generating the ‘right’ feedback that will lead to meaningful conversations between the parties. Any successful ocean racer, worth his or her (sea) salt, will tell you that constant ‘course correction’ is the key to success. Managing marketing’s key communications partner relationships is no different.

Appropriate frequency in performance measurement is important as relationships can get ‘off course’ very rapidly in today’s ‘always-on’ marketer/consumer dialogue. Best practice, these days, would likely include quarterly ‘light-touch’ interventions, followed by an annual ‘deep-dive’ survey.

Postscript: Payment by results

Globally, fueled by C-suite pressure and the rise of marketing procurement, there has been an increasing adoption of payment by results (PBR) mechanisms in external partner compensation arrangements. This is borne out by data from the 4As that indicates that, of its member agencies with 500+ employees (handling the larger, more-sophisticated marketers), over 90% are engaged in PBR schemes.

Incorporated Society of British Advertisers (ISBA) have been tracking the adoption of PBR incentive schemes, in the UK and Europe, since 1997. The latest data shows that an incentive scheme is used by 60% of advertisers.

Performance measurement will, inevitably, be a key requirement in assessing specific external partner performance metrics or key performance indicators (KPIs), as a part of a broader PBR ‘scorecard’.

 

Brands & Branding 2018 available shortly
2018 edition now available

John Little (@litjohn2) has close to 40 years’ advertising and marketing industry experience, gained in the UK, Canada and South Africa. Between 1981 and 2009, he held the positions of MD of Ogilvy Joburg, group MD of Leo Burnett, MD of Ogilvy Africa and CEO of WPP’s media arm, GroupM Africa. He served on the board of the Association of Advertising Agencies (today the ACA) for 16 years and was chairman in 1997 and 1998. He co-founded the Marketing Industry Trust in 1997, was its first chair and again chaired the body 2000–2003. He chaired the Advertising Standards Authority, and served on the ASA Appeal Committee. He launched The Observatory International in SA in 2009.

The article first appeared in the 2018 edition of Brands & Branding in South Africa, an annual review from Affinity Publishing of all aspects of brand marketing — consisting of case-studies, profiles, articles and research — also accessible at Brands.MarkLives.com. Order your copy of the 2018 edition now!

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Media Design: Techonomy, Blind Man, Economist, Role of Design in SV

Shane de Lange (@shanenilfunct)’s weekly analysis of media design from South Africa and around the world:

  • Independent print: Techonomy exposes the face of Facebook’s failure to take responsibility for a global issue that it caused through the best of intentions
  • Iconic: The Blind Man created awareness around conceptual art practices during the early 20th century, using arguably the most important artwork of the century to do so
  • Commercial print: The Economist effectively illustrates a complex situation plagued by division and dissent
  • Online: The Role of Design in Silicon Valley, by Baunfire provides an education in how important design is to tech-based companies in Silicon Valley and, by proxy, the world

Find a cover we should know about? Tweet us at @Marklives and @shanenilfunct.
Pinterest icon Want to view all the covers at a glance? See our Pinterest board!


Print

The Economist, 10-16 November 2018 - Donald TrumpHeart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos   The Economist (US), 10–16 November 2018

The recent mid-term elections in North America on 6 November 2018 was insightful as it revealed a clearly divided United States. The Democratic party won the House of Representatives, and the Republicans managed to keep the Senate, holding a larger majority overall. With this, however, the Democrats have gained an oversight authority over the Republicans in the new Congress. More so, this divided America has confirmed that it also has a divided government, practically split down the middle

The cover, illustrated by Italian illustrator Luca D’Urbino, portrays US president, Donald Trump, sitting backwards on a Democrat Donkey, attempting to coerce it to move with his infamous, red, “make America great again” cap. A poetic depiction of an uncanny situation at hand in one of the world’s most-powerful nations.

 

 

Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos   Techonomy (US), fall issue, November 2018

Techonomy November 2018, NYT Mag April 2017, Mike McQuade cover and content illustrationImplied by a clever bit of alliteration on the cover to the fall issue of Techonomy, the failure of Facebook to foresee, and to take responsibility for, the harmful effects of its global platform — specifically the way in which it can be abused — has placed historic levels of pressure on the tech company. Facebook now needs to remedy a global problem that it caused with the best of intentions. That said, the best of intentions is often the result of sheer ignorance or a lack of foresight, and inadequate levels of comprehension about any given situation.

The cover for this issue is art-directed by Rob Hewitt and Illustrated by the prolific Mike McQuade (who also illustrated some spreads inside). This cover is reminiscent of the latter’s earlier work, riffing off his cover for The New York Times Magazine in April last year, where he also uses emoticons as a narrative device. The key here is how Facebook seems to lack any form of ethical foundation, aiding in the proliferation of cultural destruction and perceived loss of values globally. Yet this is merely one case study among a plethora of other corporations which simply can’t see how they impact people’s lives the world over.

 

Online

Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos   The Role of Design in Silicon Valley, by Baunfire (US), November 2018

The Role of Design in Silicon Valley by Baunfire, online, November 2018Design is one of many pivotal mechanisms in society for the creation of values and the production of culture. With the problems facing Facebook mentioned already, Silicon Valley is one geography that certainly can’t afford to lose sight of the important space that design fills in our lives. The Role of Design in Silicon Valley is a microsite produced by Baunfire, a digital web design agency based in the Bay Area, that presents a series of opinions and perspectives from design-centered, technology-based brands.

The site illustrates six key insights about design in the context of tech-brands and their current values:

  • Design is not a service; it’s a necessity
  • Design is a leadership tool, seeking out and solving brand challenges
  • Design breeds creativity, which gives any brand the upper hand
  • Design implies clear intent, which further implies consideration and foresight
  • Design nurtures diversity, and feeds off different perspectives
  • Design produces culture, based on strong values and the creation of meaning

The microsite is an easy read and a pleasing user experience, thanks in part to the rad and off-beat Illustrations by Bay Area local, Ralph Buenconsejo.

 

Iconic

The Blind Man, issue 2, May 1917Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos   The Blind Man (US) 1917

In last week’s column, in relation to Ordinary magazine, mention was made of the contribution that Marcel Duchamp made to the language of conceptual thinking and approaches to idea-based creative practices during the last century; the early 20th century saw the dadaist movement produce many publications linked to Duchamp. Of interest here is a lesser-known magazine called The Blind Man, the product of a network of proto-dada, avant-garde exponents living and working in New York. The Blind Man is considered one of the earliest publications to promote the New York chapter of dadaism.

Only two issues were published, edited by Duchamp, alongside co-editors Beatrice Wood and Henri-Pierre Roché, and included the work of key dada exponents practicing in New York and Europe, such as Francis Picabia, Alfred Stieglitz, and Erik Satie, to name a few. The first issue was published in April 1917, with the second issue followed shortly thereafter in May 1917. The Blind Man provided a platform for those experimental artists and writers who didn’t fall in line the status quo still dictated by the European cultural establishment. It attempted to enlighten the broader public about art that was produced outside the confines and norms dictated by highbrow art critics and snobbish scholars.

The first issue brought attention to the opening of the Independent Exhibition, and emphasis was placed on “the R. Mutt case” in defense of Duchamp’s “The Fountain”, which got a lot of negative attention at the time. The readymade ‘fountain’, signed using the pseudonym “R. Mutt,” was not included in the Independent Exhibition, and this caused an uproar amongst avant-garde artists. The second issue of The Blind Man again defended “R. Mutt”, creating a spectacle around this found object and its fictitious author, exposing the narrowmindedness of the exhibition’s selection committee.

The reason more issues of The Blind Man weren’t published was because of a bet made between Roché and Picabia. Picabia wanted to publish his magazine, 391 (featured in this column earlier this year), and The Blind Man must have been a deterrent of sorts.

References

 

 

Shane de LangeShane de Lange (@shanenilfunct) is a designer, writer, and educator currently based in Cape Town, South Africa, working in the fields of communication design and digital media. He works from Gilgamesh, a small design studio. Connect with him on Pinterest and Instagram.

Media Design, formerly Cover Stories and MagLove, is a regular slot deconstructing media cover design, both past and present.

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Africa’s 2018 Epica winners — view all the work

by MarkLives (@marklives) South Africa has taken home a total of five awards at this year’s Epica Awards, the advertising awards show judged by industry journalists across the globe. Egypt has bagged three and Kenya six.

FoxP2 brought home the only Gold for its Life Beyond the Logo campaign for National Geographic Kids magazine, while TBWA\Hunt Lascaris’ Breaking Ballet campaign for Joburg Ballet won a Bronze and two Silvers. M&C Saatchi Abel won Bronze for its #rightmyname campaign for Nando’s.

Egypt’s FP7/CAI won three Bronzes for its campaign for Orange. Kenya took home six Bronzes, three for Mandevu Beard Care and another three for Hotpoint Appliances.

Seven South African entries, three Egyptian, two Kenyan and Nigerian, and one Namibian had made the shortlist for this year’s Epica, out of 4020 entries from 69 countries. South African jury members were not allowed to vote on South African award entries. MarkLives was one of the South African jury members.

Egypt

“Now or Never”

FP7/CAI
Orange

 

Kenya

Mandevu Beard Care - Beard Wash - Wild - Plump, Long, Wild

“Flipped”

CREATIVE VMLY&R
Mandevu Beard Care

 

Hotpoint Appliances - Sound Waves - Laughter, Drama, Game

“Sound Waves”

CREATIVE VMLY&R
Hotpoint Appliances

 

South Africa

FoxP2: Angry Birds

“Life Beyond the Logo”

FoxP2
National Geographic

 

“Breaking Ballet”

TBWA\Hunt Lascaris Johannesburg
Joburg Ballet

 

“#rightmyname”

M&C Saatchi Abel
Nando’s

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Gestalt: Managed digitalisation to reduce customer churn

by Leeya Hendricks (@LeeyaHendricks) Digital transformation is a must for continued survival, but companies setting out on this journey must manage digitalisation in a way that will provide them with a competitive edge and not threaten their survival. One of its great risks is its potential disruption to customer relationships.

There’s a known link between healthy customer relationships and continuous revenue growth coupled with lower expenses. It’s simply cheaper to keep existing customers than to win new ones with every sale. Conversely, a sizeable portion of generating new demand must be from keeping existing customers.

While reducing churn is challenging, it’s a challenge worth prioritising: A 5% increase in customer retention may increase profits by 25% to 95%, according to research from Bain & Company.[1]

Built to change

In short, companies should find ways to effectively manage the risk that digitalisation will disrupt client relationships. The alternative, not transforming, is unthinkable. After all, change is the only constant. Companies that don’t keep up with it or engineer themselves to do so should get with the programme.

Fortunately, just as digitalisation has upended companies and entire industries though enablement of new business models, it has also enabled new customer models. [2] When put to proper use, digital transformation may help companies engineer processes and channels for change.

Customers, too, change with pervasive digitalisation, requiring companies to keep up. Instant gratification and a wide range of choices mean they enjoy far greater flexibility to move as and when they want, so ensuring they’re fully satisfied at all times is integral to business performance.

Are your customers satisfied? Do you always deliver the right products for their needs? Is your business geared for change to capitalise on market opportunities?

Being sticky

How will you ensure you can answer all of that in the affirmative, to create true stickiness?

For years, customer satisfaction was measured in renewals and continued sales and, while this is still relevant, it leaves a glaring gap; these are merely symptoms of satisfaction and give no indication whether customers are indeed happy. Also, they don’t provide positive answers to the questions above.

Instead, the most-critical factor in preventing customer churn is by measuring customer engagement. Customers who engage regularly with your platform and brand are often the stickiest customers. They are the ones who simply won’t leave, even if a cheaper option shows up on the market.

Introducing customer engagement into the mix sheds a new light on retention — no longer is it merely an exercise in damage control; it’s an opportunity to dig deeper into your customer relationships. The way to get as many customers as possible to stick is by making it easy to integrate your product into their daily workflow. And therein lies more opportunity to win more customers — and keep them.

Are your customers satisfied?

Whether or not your customers are satisfied determines if they will renew or grow their investment in your products and recommend you to other customers. It also demonstrates your organisation’s ability to meet the needs of your customers and shows its worth and effectiveness to stakeholders, which is important for maintaining their support.

If avoiding churn is important to your business, from time to time you should ask your customers how satisfied they are and behave according to their response.

To respond to the competitive landscape and provide greater customer choice, many global IT organisations are further changing their internal processes and workforce structures and so making it easier for customers to switch to them.

Digitalisation provides altogether more-cogent answers to the modern challenges of companies operating in a digital world, enabling them to keep up and ensure their processes enable a quick and agile response to change. With new cloud technologies and subscription models, you may create the appropriate processes, products and structures to become a connected customer organisation and optimise customer value.

Put your customer first!

References

[1] blog.hubspot.com/service/how-to-reduce-customer-churn
[2] weforum.org/agenda/2018/01/the-world-is-changing-here-s-how-companies-must-adapt

 

Leeya HendricksLeeya Hendricks (@LeeyaHendricks) is a designated chartered marketer, global marketing strategist, digital driver and a Women in Tech leader. She holds a BA degree in fine arts, a BA honours degree in brand marketing management, an MBA in business management and is completing her PhD in marketing management. She is now director of customer first marketing at ORACLE UKI, responsible for driving customer success through customer advocacy, and building strategic partnerships focused on emerging technology and the changed customers’ buying behaviour. Leeya contributes the monthly column “Gestalt”, about putting customers first for sustainable business success, to MarkLives.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

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