Categories
CRO Customer Engagement Highlights Paid Media Product Design Reaching New Customers SEO Strategy

Cracking the code: Proven tactics to boost email engagement rates

Crafting compelling email campaigns is more than just stringing together words and hitting “send.” It’s about forging genuine connections with your audience, driving meaningful interactions, and ultimately, achieving your marketing goals. But in our overflowing inboxes, cutting through the noise and grabbing attention can feel like a constant battle, making email engagement difficult to achieve.

Email engagement refers to the level of interaction your subscribers have with your emails. This can encompass everything from simply opening the email (open rate) to clicking on links, forwarding content, or even making a purchase.

The good news? You can dramatically increase your email engagement rates by implementing a strategic approach that leverages current email marketing trends. Let’s look at common problems and proven tactics that will encourage your subscribers to open each message with excitement.

The problem: Apathy in the inbox

Let’s face it: our inboxes are bombarded daily with generic, one-size-fits-all emails. Many recipients are quick to hit “delete” without a second thought, which is why you might consider a “good” email open rate to be only between 17% and 28%. With so many unread emails going into the digital waste bin, how do you stand out from the crowd and capture their attention?

Solution: Capture readers’ attention through personalization

Gone are the days of mass email blasts. Today’s audience craves personalized experiences. Personalization involves tailoring your email content to individual subscribers based on their interests, purchase history, demographics, or website behavior. This can be achieved by:

  • Utilizing dynamic content: You can automatically insert personalized elements into your emails, such as the subscriber’s name, location, or past purchases.
  • Using subscriber data: Leverage website behavior data from your customer data platform to send emails based on a subscriber’s recent interactions on your site. For example, if they viewed a specific product category, send them a follow-up email with relevant recommendations.
  • Segmenting your email list: Divide your audience into smaller groups with shared characteristics to share content personalized to user interest. Segmentation allows you to create targeted email campaigns that speak directly to specific audience groups. This ensures your messages are relevant and avoid being perceived as generic spam.
  • Automating sending: Automation takes your email marketing to the next level by creating automated email sequences triggered by specific subscriber actions. For example, you can set up an automated welcome series for new subscribers, a re-engagement campaign for inactive subscribers, or abandoned cart emails to remind users about products left behind.

Prioritizing personalization can create engaging email experiences that drive results.

The problem: Feeling fatigue from tired UX/UI

Many email marketing platforms offer a plethora of pre-designed templates and interfaces. While convenient, relying solely on templates and cookie-cutter designs can create uniformity and predictability in your emails. Subscribers become accustomed to the format and lose interest.

Solution: Embrace a stand-out design aesthetic

Don’t be afraid to break away from the template trap! Invest in creating a unique and visually appealing email design that reflects your brand identity.

Here are some tips for standing out:

  • Integrate high-quality visuals: Use on-brand images and graphics that complement your message, and avoid stock photos that feel generic.
  • Strategically use white space: A clean and structured layout with intentional white space makes your email easier to read and navigate, directing the subscriber’s eye toward important calls to action.
  • Implement a mobile-friendly design: Ensure your emails render flawlessly across all devices, especially smartphones, where approximately half of all emails are opened today.
  • A/B test: Be bold and experiment! A/B testing different design elements, subject lines, or calls to action can help you identify what resonates most with your audience.

The problem: One-way communication

Traditional email marketing often falls into the trap of a one-sided conversation. Subscribers receive information, but there needs to be an opportunity for them to interact or engage.

Solution: Create interactive experiences and invite two-way communication

Transform your emails from static messages to interactive experiences! Here’s how:

  • Embed polls or surveys: Ask your subscribers for their feedback or opinions directly within the email.
  • Incorporate quizzes or product configurators: These interactive elements can increase engagement and provide valuable data about subscriber preferences. We love how eMarketer does this.
  • Encourage replies: Structure your emails to prompt replies or questions. This fosters a sense of two-way communication and builds stronger relationships with your audience.

Another two-way communication street? Customer reviews. See how to master the art of the ask, how to respond to-less-than-favorable feedback, and how to leverage that shiny new UGC.

Ready to increase email open rates?

Email marketing remains a powerful tool for connecting with your audience and driving business growth. By implementing these proven tactics you can dramatically improve your email engagement rates and turn passive subscribers into loyal brand advocates. Remember, a commitment to personalization, stand-out design aesthetic, and two-way communication are all key ingredients for crafting email campaigns that get noticed, get opened, and get results.

Email marketing is just one piece of the integrated digital marketing puzzle. We can work with you to enhance your email strategy, boost email engagement, and ensure integration with your other marketing channels. 

Don’t let your emails get lost in the inbox. Let’s talk about how we can help you increase email engagement.

Categories
Customer Engagement Data Strategy Reaching New Customers SEO Strategy

Leading the conversation: B2B thought leadership in action

Regardless of your industry or vertical, today’s B2B landscape is crowded. That means standing out from the competition is more crucial than ever. But standing out requires more than just shouting louder. It demands a strategic approach that positions your brand as a trusted advisor, rather than simply a vendor. This is where authentic B2B thought leadership comes into play. 

Authentic thought leadership isn’t about empty self-promotion. It’s about creating genuine value for your target audience, sharing valuable insights, and becoming a trusted resource for complex B2B marketing challenges. 

Let’s examine B2B thought leadership, why it matters, who can be a thought leader, and, most importantly, how to develop a strategy that delivers real results.

What is thought leadership?

Thought leadership is the process of establishing yourself or your company as an expert in a specific field. It involves sharing insightful knowledge, innovative ideas, and valuable solutions with your target audience. By consistently providing valuable content and demonstrating expertise, you can position yourself as a trusted authority, influencing industry trends and decision-making.

Why authentic B2B thought leadership matters

Thought leadership goes way beyond buzzwords. In fact, it’s a strategic imperative for B2B success. By positioning your brand as a trusted authority, you can transform mere awareness into deep engagement and loyalty. It’s about elevating your company from a service provider to a strategic partner.

Thought leadership can be a catalyst for:

  • Lead generation: Attract high-quality prospects seeking expert guidance.
  • Brand differentiation: Stand out in a crowded marketplace and build a strong brand identity.
  • Customer loyalty: Retain customers by establishing trust and credibility.
  • Revenue growth: Drive increased sales and profitability.

Thought leadership can also:

  • Enhance employee morale and engagement: A strong thought leadership position can establish a brand as an authority figure in their industry, boosting employee pride and motivation.
  • Improve customer retention: By demonstrating expertise and care, you deepen customer relationships and keep customers coming back.

Thought leadership and B2B content strategy are investments in your business’s future. By consistently delivering value and establishing yourself as an industry expert, your organization can reap the rewards for years to come.

What does a B2B thought leader look like?

A B2B thought leader is more than just a knowledgeable individual. They consistently offer fresh perspectives, insightful analysis, and valuable solutions to the challenges faced by businesses. 

Unlike traditional marketing, which often focuses on selling products or services, thought leadership focuses on building trust and credibility. This, in turn, positions your brand as a go-to resource for B2B buyers (potential clients) seeking information to support intelligent decision-making.

Qualities of a successful B2B thought leader

Authentic thought leadership is about positioning your brand as a problem-solver, not just a product provider. Regardless of their industries or areas of expertise, all successful B2B thought leaders have a few things in common.

  • Deep industry knowledge and expertise: Thought leaders are true subject matter experts. They stay ahead of the curve, understanding their industry’s trends, challenges, and opportunities.
  • Strong communication skills: They can explain complex concepts clearly, concisely, and engagingly, resonating with their target audience.
  • A passion for sharing knowledge: True thought leaders are driven to educate and empower others, not just promote themselves.
  • Authenticity and credibility: Their insights are grounded in research, data, and real-world experience, establishing them as a reliable source.

Does this sound familiar? Good. You’re on the right track. But keep in mind that possessing these qualities is just one single aspect to consider when it comes to developing an authentic B2B leadership strategy.

The pillars of authentic B2B thought leadership

Building a successful B2B thought leadership strategy requires a multi-pillared approach. To truly establish yourself as a thought leader and implement an effective thought leadership content strategy, you need to get down to the details. Here’s a more granular look at some of the most important considerations.

Understand your audience and craft a resonant message

  • Identify your target audience: Go beyond basic demographics. Create detailed buyer personas that establish the values that motivate your audience’s behaviors. This detailed understanding is essential for tailoring content effectively.
  • Content ideation: Once you have a deep understanding of what motivates your audience, brainstorm content ideas that address their specific pain points and questions. For a more organized approach, consider creating content pillars and topic clusters.
  • Keyword research: Use tools like SEMRush and Google Trends to identify high-intent and high-demand keywords and phrases. This will help you understand how your target audience searches for information and what they are talking about and searching for at the moment.

Develop a content strategy

A robust content strategy is the backbone of thought leadership. Here’s how to create one:

  • Content calendar: Plan content in advance to ensure consistency and variety. However, part of content calendar management is planning for change. Be prepared to flex in response to changing trends or pivot your plan as breaking industry news emerges.
  • Content formats: Experiment with different formats, like blog posts, social media posts, whitepapers, infographics, webinars, videos, and podcasts to reach a wider audience.
  • Content distribution: Determine the best channels to share your content (social media, email, industry publications).
  • Content promotion: Develop a comprehensive promotion plan to maximize visibility.

What happens when a content strategy comes together? It connects consumers with the services they need. Learn more about how Tallwave identified a target audience and created customized content for that audience in our case study.

Engage your audience

Building a loyal following requires consistent engagement. Here are some tips:

  • Social media: Actively participate in industry conversations, share valuable content, and respond to comments and messages.
  • Email marketing: Build an email list and nurture leads with valuable content.
  • Webinars: Host live events to interact with your audience directly.
  • Public speaking: Participate in industry conferences and webinars to share your expertise.

Measure and refine your strategy

To gauge the effectiveness of your thought leadership efforts, track key metrics:

  • Website traffic: Monitor increases in organic traffic to your website.
  • Website engagement: Measure user engagement by tracking time spent on page, page scroll depth, and pages per session.
  • Lead generation: Track the number of leads generated from thought leadership content.
  • Social media engagement: Measure likes, shares, comments, and follower growth.
  • Brand awareness: Track changes in brand perception and sentiment.
  • Conversion rates: Monitor the conversion rates of visitors who engage with thought leadership content into customers.

Use these insights to refine your strategy and optimize content performance.

Learn more about how metrics inform action by exploring Tallwave’s data strategy and analytics services.

By following these steps and consistently delivering value, you can position your brand as a trusted authority in your industry. Remember, thought leadership is a journey, not a destination. Like with most things, continuous learning and adaptation are key to long-term success.

Putting it all together: Thought leadership in action

Authentic B2B thought leadership isn’t a one-and-done project. It’s a strategic, long-term approach that requires consistent effort and dedication. However, the rewards are substantial. By becoming a trusted voice in your industry, you can attract leads, generate revenue, and establish your brand as a leader. Ready to put pen to paper (or pixels to screen)? Tallwave can help you develop and execute a comprehensive thought leadership content strategy. Let’s chat.

Categories
CRO Customer Engagement News Paid Media Product Design Reaching New Customers SEO Strategy

Planting the seeds: A guide to authentic green marketing

The climate crisis is no longer a looming threat; it’s a pressing reality demanding action. 

Marketers have a unique opportunity to influence consumer behavior and promote positive impact, including those related to climate change and environmental responsibility. Enter green marketing, a powerful tool for businesses to not only connect with environmentally conscious consumers but also make a genuine difference for the planet.

What is green marketing?

Green marketing, also known as environmental marketing or eco-marketing, is a business practice that promotes products, services, or practices that are environmentally friendly. It’s about going beyond simply selling a product to actively contributing to a more sustainable future.

Green business practices that can be marketed to consumers might encompass a wide range of initiatives:

  • Modifying existing products: Developing products with recycled materials, promoting reusability, or focusing on energy efficiency.
  • Changing production processes: Implementing sustainable manufacturing practices, minimizing waste, and utilizing renewable energy sources.
  • Using eco-friendly distribution processes: Optimizing logistics for reduced fuel consumption and exploring greener delivery options.
  • Using sustainable packaging: Opting for biodegradable or recyclable packaging materials to reduce landfill waste.
  • Modifying advertising: Crafting messaging that emphasizes the environmental benefits of your product or service and avoiding misleading claims.
  • Creating new products that reduce a consumer’s carbon footprint: Developing products designed for long lifespans, repairability, or energy efficiency.
  • Making public donations to nonprofit organizations with sustainability initiatives: Demonstrating your commitment to environmental responsibility beyond your core business practices.

Why go green? The benefits of green marketing

The shift toward sustainability isn’t just a trend (though it is trending— more on this later); it’s a fundamental change in consumer behavior. Here’s how green marketing and environmentally friendly business strategies can benefit your business:

Meeting consumer demand

Studies consistently show a growing preference for eco-friendly products and companies with strong sustainability practices. By embracing green marketing, you tap into a rapidly expanding market segment.

Brand reputation

Consumers are increasingly associating environmental responsibility with brand trust and loyalty. Green marketing allows you to build a positive brand image and foster deeper connections with environmentally conscious consumers.

Competitive advantage

In a crowded marketplace, green marketing can differentiate your business from competitors. Sustainable practices and a commitment to the environment can set you apart and attract environmentally responsible partner organizations and consumers.

Increased efficiency

Embracing a sustainable approach often leads to cost savings, even if it requires an extra upfront investment. Reduced resource consumption, waste minimization, and energy efficiency can all translate to improved profitability in the long run. For example, switching to LED lighting in your facilities might be expensive upfront, but will ultimately reduce energy consumption and utility costs.

Regulatory compliance

Environmental regulations are constantly evolving and impact a wide array of business sectors. Proactive green marketing efforts can help you stay ahead of the curve and avoid potential legal or financial repercussions.

Seeing green: Examples of green marketing in action

The benefits of green marketing are clear, but how does it translate into real-world campaigns? Let’s take a look at some innovative companies that are putting their sustainability commitments into action:

Patagonia’s “Don’t Buy This Jacket” Black Friday ad

Way back in 2011, Patagonia ran a full-page ad in the New York Times that gave readers one simple instruction: Don’t buy this jacket

This unconventional campaign challenged consumer culture and promoted product longevity. Patagonia encouraged customers to repair their existing jackets instead of buying new ones, highlighting their commitment to sustainable practices and reducing environmental impact. And even though more than a decade has passed since this ad put us all in an environmentally minded chokehold (and even though Patagonia has been in the news for less-admirable measures recently), this campaign still discussed in marketing boardrooms and college classrooms.

This isn’t the first time we’ve admired Patagonia. Learn more about organizational growth strategies that align purpose with practice.

Coca-Cola’s PlantBottle campaign

More recently, Coca-Cola addressed plastic waste concerns with its still-ongoing PlantBottle initiative. These bottles are partially made from plant-based materials, showcasing the company’s commitment to innovation and reducing its environmental footprint. The company seeks to collect and recycle or reuse 100% of what it sells by 2030 and support a Net Zero carbon goal for 2050.

IKEA’s “People & Planet Positive” campaign

IKEA’s campaign highlights its commitment to sustainability throughout its supply chain by balancing social impact and environmental protection. Its focus is on using recycled materials in its furniture, promoting energy efficiency in its products, and sourcing wood from responsibly managed forests. IKEA states that its sustainability ambitions and commitments are set for 2030 in line with the UN Sustainable Development Goals. The company also promotes its “zero-waste” mindset through a new circularity campaign in which IKEA offers furniture buy-back and resale options in certain markets to further promote sustainability.

Green marketing on TikTok

Another (and perhaps more surprising) place where green marketing practices are growing is TikTok. In early July 2024, a handful of creators started making “underconsumption core” videos showcasing their simple lifestyles on the platform. In the few short weeks since then, thousands have followed suit. The “underconsumption core” or “underconsumerism” trend on TikTok is all about rejecting excessive consumerism and embracing a more minimalist lifestyle. 

@yasmeennjesusgonzaga

The way i could make so many of these videos 🙂‍↕️ #underconsumption #minimalist

♬ original sound – speedz!

But this trend goes beyond just personal choices. It has surprising connections to the world of green marketing. The trend focuses on reducing environmental impact and quality over quantity. It’s a sharp contrast to typical influencer marketing involving product consumption, and the trend showcases shifting consumer values in a new way. 

Influencer marketing amplifies awareness, even when it’s about underconsumption. See how it aligns with SEO and other ways to boost online visibility.

These examples showcase different approaches to green marketing. Some green marketing strategies focus on product innovation (PlantBottle), others emphasize ethical sourcing and production practices (IKEA), while Patagonia’s campaign and the recent TikTok trend directly challenge consumer behavior. The key takeaway is that successful green marketing goes beyond messaging; it requires a genuine commitment to environmental responsibility.

Implementing green marketing strategies: A framework for success

As you can see in the examples above, going green isn’t just about slapping a recycled symbol on your packaging. Authentic green marketing requires a holistic approach that integrates sustainability throughout your business practices. Here are some key strategies we can extract from the successes above to consider implementing in your green campaigns:

  • Showcase sustainability: Transparency and authenticity are paramount. Don’t just tell consumers you’re green; show them. Highlight your ongoing efforts to reduce your environmental footprint and prioritize genuine transparency in your messaging. 
  • Prioritize sustainability in all operations: Your green marketing strategy must align with a green business strategy. Consider a product lifecycle assessment to identify areas for improvement. Prioritize sustainable sourcing practices throughout your supply chain to minimize your environmental footprint.
  • Secure partnerships and engage the community: Collaborate with environmental organizations or support local sustainability initiatives. Building partnerships showcases your commitment to a broader movement and allows you to leverage the expertise of established organizations.
  • Measure your impact: Track and report on the environmental benefits of your green marketing and business efforts. Data and metrics are powerful tools that demonstrate the effectiveness of your strategies and hold you accountable for your sustainability goals.

Learn more about Tallwave’s data strategy and analytics services and how we can help you measure impact.

How is green marketing different from greenwashing?

Green marketing is a powerful tool, but it needs to be wielded responsibly. Greenwashing, or making misleading or unsubstantiated claims about environmental benefits, erodes consumer trust and ultimately backfires. You can avoid falling into this trap with transparency and authenticity in your campaigns. You must back your claims with data, certifications, and science. This will help you avoid cliches that come across as disingenuous. You also must focus on the journey. Green business practices and marketing aren’t “one-and-done.” They require serious long-term commitment. 

It isn’t easy being green (but working with us is)

So, is it easy being green? Well, it takes effort and commitment. But with the right approach and a dedicated partner like Tallwave, you can make a real difference while connecting with environmentally conscious consumers and achieving your business goals.

Here at Tallwave, we’re passionate about helping businesses navigate the world of green marketing. We understand the importance of authenticity and transparency, and we work closely with our clients to develop data-driven strategies that genuinely align with their values. 

We’re also committed to partnering with clients who share our values and are dedicated to making a positive environmental impact. See how we helped an environmental nonprofit break revenue goals through a full-funnel paid media strategy.

Ready to cultivate a greener marketing strategy? Tallwave can help you plant the seeds for a thriving, sustainable brand. Let’s discuss how we can help your business blossom with authentic green marketing practices. Let’s work together to cultivate a greener future, one campaign at a time.

Categories
CRO Customer Engagement Data Strategy Paid Media Reaching New Customers SEO Strategy

Engage and inspire: Powerful digital marketing strategies for nonprofits

Animal welfare, environmental conservation, youth services—your nonprofit is fighting for a great cause! Who wouldn’t want to donate? Unfortunately, with nearly 2 million public charities in the U.S. alone* vying for your donors’ attention (and dollars), those donors have many options, and yours may not be at the top of the list. 

While you’re trying to increase total donations, bring in net new donors, and lower your cost per acquisition (all in the name of saving baby gorillas), you’re likely facing challenges with competition, user experience, financial constraints, or accurate reporting that hinder your ability to meet those goals. Let’s explore some digital marketing strategies for nonprofits that can help you overcome these obstacles and protect those gosh darn baby gorillas!

Meaningful moments: Connect with your audience to stand apart from competition

With so many competitors in the market, your donors have to make the tough decision of which nonprofit organizations they want to financially support (civic engagement is great and all, but also, baby gorillas). As such, it’s crucial to resonate with your audience in a way that makes you stand apart from competitors and increase brand awareness. You can do this through:

Knowing your audience: Prospective donors don’t give simply as a function of their demographics; their giving is a reflection of their values. Taking a valuegraphics-based approach to understanding your audience will empower you to position your cause in a way that resonates with the ultimate decision driver: values.

Impactful storytelling: By sharing compelling stories, you can evoke emotion and illustrate the tangible impact of your work, making your mission more relatable and memorable.

Influencers and ambassadors: 69% of consumers trust influencers over information coming directly from a brand. Consider partnering with influencers and ambassadors to amplify your message and leverage their reach and credibility to broaden awareness and build trust.

Community building: Building an online community fosters a sense of belonging and engagement. This strategy is particularly impactful for establishing a base of sustained donor relationships as opposed to singular donations.

Personalized digital experiences: Tailoring digital experiences to individual preferences and behaviors make interactions more relevant and more meaningful. Knowing when to send someone to a landing page for ocean conservation versus, say, baby gorillas, could be the difference between a one-time $20 donation and a sustained monthly donation of my entire paycheck.

Make it easy: Drive action through improved UX

You’ve connected with a potential donor and got them to your website, but now they’re not sure where to go to make a donation. Once they find the donation page, it defaults to a $100 donation, and they can only give $50 but can’t figure out how to change the amount. Fine. They’ve decided to forego Starbucks this month so that they can afford the $100 donation, but now they don’t have a credit card nearby and the mobile payment platform doesn’t take ApplePay. UGH. Your potential donor just left your site and has no intention of coming back. Be sure that you’re providing your website visitors with a great user experience and making it super easy for them to donate. You can do this by incorporating:

User-friendly features: Create or enhance features that simplify the donation process. That might include adding a prominent donate button on the homepage and throughout the site, giving users intuitive ways to change their donation amount and frequency, or providing a variety of payment methods for donors to choose from.

Accessible website design: Ensure you’re creating a welcoming space for all by designing your website and mobile app according to WCAG accessibility standards. Accessible websites and apps remove barriers for a significant portion of the population, allowing you to tap into a wider audience.

CRO strategy: Conversions rate optimization (CRO) strategy is a continual testing and optimization cycle that identifies and addresses friction points on the website in an effort to drive ongoing incremental improvement to conversion performance. Addressing even the most minor pain points on your website will improve user experience and increase your donation rate. In just 3 months, we helped an e-commerce company double its revenue with a strategic CRO campaign.

Embrace efficiency: Invest in tactics with limited waste

If you are a marketer at a nonprofit, you’re likely operating with a limited budget and resources while also striving to make a significant impact. Every penny counts, so it’s crucial to invest in tactics that drive sustainable results with minimal waste. Consider:

Google Grants: Google offers nonprofit organizations up to $10,000 of advertising credits per month. While there are some restrictions, it’s basically free money. Make sure your nonprofit is taking advantage of this great tool.

CRO strategy: We already mentioned it once in this blog, but it’s so powerful, we have to bring it up again. A strong CRO strategy is an insurance policy for your paid media campaigns. If you invest in paid media, you are spending a lot of valuable money driving people to your website, but what if they get to the website and they’re met with a bad experience? They drop from the site before ever making a donation, and given the poor experience, they’re not likely to come back. We call this the “leaky bucket effect,” and it’s something that can be greatly reduced through CRO strategy.

Full-funnel marketing: A lot of nonprofits invest heavily in lower-funnel tactics like paid search, because they can see the direct conversions. But neglecting upper-funnel awareness and consideration tactics chokes your funnel which has major downstream impact as you lose your ability to reach net new donors. Invest in a full-funnel strategy to set yourself up for long-term, sustainable growth.

Data is king: Prioritize analytics to drive growth

Accurate and accessible data can provide meaningful insights, drive strategic decision-making, and enhance the effectiveness of your mission. For many nonprofits that often find themselves wading through more data than they know what to do with, consider honing in on these strategies:

Strengthen your data foundation: A strong data foundation is the cornerstone for any organization that seeks to harness the potential of its data. Not only will this enable better decision-making throughout your organization, if you wish to level-up your marketing game with things like personalization or AI, a strong data foundation is essential. 

KPI alignment: Because nonprofits often put such a heavy emphasis on driving donations, there is a tendency to misalign marketing tactics and key performance indicators (KPIs). Bottom-of-funnel tactics, like paid search, are meant to drive conversions (a.k.a. donations), and therefore, conversion rate (CVR) or cost per acquisition (CPA) are appropriate KPIs for paid search. A podcast ad, on the other hand, is an awareness tactic that sits at the top of the funnel. It plays a crucial role in your marketing strategy for reaching net new potential donors, but it’s not likely to drive direct donations (its impact will be felt downstream through those low-funnel tactics). As such, the success of podcast advertising should be measured based on KPIs like reach, frequency, and audio completion rate (ACR).

See how right-sizing a national environmental nonprofit’s unbalanced measurement approach enabled us to implement a full-funnel media strategy that increased their conversions by over 60% and resulted in a 22% lift in peak-season giving.

Data storytelling: You’ve worked so hard to connect with your audience, stand up an efficient marketing strategy, and capture meaningful data. Make sure this isn’t lost on your executive team. Communicate data-driven insights effectively through data storytelling. By transforming complex data sets into a compelling narrative, you avoid unnecessary complexity to prevent misinterpretation, foster engagement, and enable understanding across teams.

Great marketing strategies support even greater missions

A smart marketing strategy can help you overcome many of the common challenges faced by nonprofits, setting you apart from the competition and setting you up for long-term success. Not sure where to start? Tallwave can help. Let’s save some baby gorillas together.

* Source: Statista Research Department, and Jan 5. “Public Charities by Subsector U.S. 2021.” Statista, 5 Jan. 2024

Categories
Customer Engagement Reaching New Customers Strategy

Organizational growth strategies: Aligning purpose and practice

Organizational growth isn’t just about increasing revenue or market share. It’s about building a sustainable and purpose-driven organization. 

Sure, every company aspires to quickly grow and see revenue rise. However, understanding the “why” behind that growth is critical for attracting and retaining talent, authentically engaging customers, and achieving long-term success. Simply put, understanding your “why” and aligning your purpose with your operational practices can unlock true organizational growth.

Understanding the ‘why’ in business growth

Many companies define growth in terms of financial metrics. While these are important, focusing solely on profit and EBITA is like having a destination in mind without plotting a route to get there, which can leave business strategies directionless. A truly purpose-driven business clearly understands its “why”—its core reason for existence beyond making money. This purpose serves as a guiding star, rallying like-minded employees, inspiring customer loyalty, and fostering a genuine connection between your organization and the market you serve. When companies are guided by purpose, they’re more likely to find their way to financial success.

Consider Patagonia, a company renowned for its commitment to environmental sustainability. Their purpose isn’t just selling outdoor apparel but protecting the planet for future generations. This purpose informs everything they do, from product design to marketing campaigns, and has earned them a fiercely loyal customer base for good reason. Consumers get to feel as if they are playing a part in the health of our environment by purchasing Patagonia goods while having great gear to enjoy the great outdoors. This is a great example of how threading purpose all the way through an organization drives positive business outcomes.

The significance of authentic branding

Authentic branding is the outward expression of your company’s purpose. It’s about clearly communicating your values, mission, and the impact you strive to make. Customers today are savvy; they can sniff out inauthenticity a mile away. Remember when Kellogg’s CEO Gary Pilnick suggested on national television that American families consider “cereal for dinner” in response to rising food costs? Consumers certainly do, and an organized boycott is still underway.

When your branding authentically reflects your purpose, it fosters trust and creates a positive emotional connection with your audience. Here’s where crisp and consistent storytelling comes into your brand’s message and content strategy. Your company story should be woven into every facet of your marketing and sales efforts. This can include blog posts, social media content, website copy, and even customer case studies. By consistently telling your story, you reinforce your purpose and build brand loyalty.

Linking purpose with operational efficiency

Purpose is not just a feel-good slogan; it must be operationalized to fuel your company and ultimately growth. This means ensuring your business operations and processes are aligned with your purpose and your people are equipped to deliver on your promises, not just to customers but to one another. 

Here’s where data-driven accountability and data-centricity come into play. Leaders and decision-makers need access to the right metrics and data to assess operational efficiency. These metrics should measure progress toward company goals, client satisfaction, customer perception, retention, and growth. By holding leadership accountable for key performance indicators (KPIs) that connect to purpose-driven growth, you create a feedback loop that ensures alignment across all levels of the organization.

The critical role of sales and delivery synergy

Imagine a scenario where your sales team paints a rosy picture of your product or service to close a deal, but then the internal teams responsible for delivery lack the resources or capacity to fulfill those promises. This disconnect between sales and delivery creates a frustrating experience for customers and can damage your reputation (your brand). It’s important to remember that sales are just one step in the customer journey.

For true organizational growth, your sales and delivery need to be in lockstep. This requires clear communication between both teams, ensuring everyone understands the product or service capabilities and realistic timelines. Additionally, shared goals that prioritize customer satisfaction and advocacy are crucial. By aligning purpose with operational practices, you can foster strong collaboration between sales and delivery, ensuring a seamless and positive customer experience from initial contact to successful delivery.

When internal solutions fall short: Finding the right partner

Sometimes, organizations get stuck in their siloed workflows and struggle to create the internal alignment necessary for sustained growth. This is when partnering with a trusted external partner can be invaluable. Infusing fresh perspectives and outside expertise can help you refocus your strategies with your customer at the center and your purpose as the driver for greater resonance with your target audience and purpose-driven growth for your business.

Here’s why seeking external help can help bring purpose to your efforts:

  • Internal blind spots: Teams can be too close to the problem, losing perspective on the value your brand exists to create for your customers and missing potential solutions.
  • Leadership challenges: Leaders may lack the expertise or resources to implement necessary changes when purpose becomes disconnected from practice in their business operations and strategies.
  • Translation to execution: Even when the purpose is clear at the brand level, it’s not always easy to thread it through to execution at the hands of practitioners. From sales and marketing to product, IT, finance, operations, and every other business discipline, the subject matter experts across all these domains need to approach what they do from the context of why they do it, which stems from your purpose.

By partnering with an agency that aligns with your purpose, understands the digital landscape, and approaches marketing, product, and data strategies as tools to help you fulfill your brand’s purpose and create the kinds of experiences that your customers demand, you can overcome organizational inhibitors and achieve your growth goals.

At Tallwave, we’re passionate about helping businesses unlock their full growth potential by aligning purpose with practice. We believe that a well-defined purpose, operational efficiency, and authentic execution of the brand are the keys to sustainable growth in today’s competitive environment.

Ready to take your organization to the next level? Get in touch with us today to discuss how we can help you craft a purposeful and profitable growth strategy.

Categories
Customer Engagement Product Design Reaching New Customers UX Design

UX design: Define the problem, not the solution

About this series: In the fast-paced business world, it’s all too common to hear about companies striving to become “product-led” and chasing after metrics like velocity and conversion rates. While these numbers undoubtedly hold significance, they often overshadow the underlying force that drives the success of great products: design. Design is not just about aesthetics; it’s about understanding your customers, empathizing with their needs, and crafting solutions that meet and exceed their expectations. In this exciting three-part blog series, we will dive deep into the realm of design and design strategy and its pivotal role in achieving business goals. Let’s unlock the potential of great design as the ultimate path to great business.

Understanding the cornerstones of great product design

In the ever-evolving landscape of product design, success hinges on the ability to navigate a maze of user needs and expectations. Understanding the need at hand and then defining the actual problem is a crucial first step that can make or break the entire journey. You might have a fantastic idea for a product but if you aren’t drilling down to the true problem that this product is solving, then you aren’t going to be able to truly satisfy customers. This design stage uncovers true pain points for customers to ensure your product is solving the right problem and a real problem. Understanding user needs and defining the problem are cornerstones of successful products, ultimately paving the way for continually high business value.

Empathy: The heart of a user’s needs

User needs are the foundation of good design, placing the customer at the very heart of the product development process.  It’s imperative to empathize with users’ unique experiences, desires, and pain points when creating designs that resonate. User needs specific to a problem serve as a constant reminder that humans (specifically users) are at the core of the design process. By placing the human at the center of design, user needs act as constant reminders that the end goal is not just a product but a solution that addresses real-life challenges.

Moving from good to great design requires more than just a surface-level understanding of desired functionality. It requires a combination of both qualitative and quantitative UX research techniques that delve deep into user needs. First, quantitative UX research methods provide a structured and data-driven approach to learning about user behavior and preferences. Understanding the numerical data and statistical analysis can help you quantify user interactions, preferences, and performance. Surveys, questionnaires, A/B testing, and analytics tools are common examples of quantitative research techniques. Teams don’t need to use all of them every time, but carefully selecting a combination of methods will bring some helpful data to the surface as you assess user needs. These methods allow for the identification of patterns and trends, enabling UX researchers to create informed hypotheses about user needs. Quantitative research complements qualitative research by offering a more objective and measurable perspective, providing the necessary data to think through problems and have support for business decisions.

Qualitative user experience research methods provide valuable insights into the intricacies of user behavior, emotions, and perceptions. These methods delve deep into the more nuanced and harder to quantify psychological aspects of user interactions, aiming to understand what users do and why they do it. Qualitative research techniques, such as in-depth interviews, usability testing, and ethnographic studies, offer a way to channel the individual perspectives and experiences of users. Open-ended questions and real-time observations can help researchers uncover users’ needs, pain points, and desires, shedding light on the nuances that quantitative data often cannot capture. Qualitative research is an indispensable tool for human-centered design, enabling designers and businesses to truly understand user needs on a deeper level.

User needs are the baseline of effective design and encapsulate the essence of what the user truly desires and values. Before jumping to solutions or pixels, design teams must first empathize with their target audience, truly understanding their hopes, aspirations, and pain points. Taking the time to crystallize the human-focused needs and desires of the users ensures that every design decision is rooted in empathy and a genuine desire to enhance the user experience. Businesses that research, prioritize, and build products for these needs are not only better equipped to stay competitive in an ever-changing market but also to forge lasting, meaningful connections with their customers.

We know a thing or two about consumer values. Check out our post on the new persona playbook.

Crafting the perfect product design problem statement

With a solid understanding of user needs in hand, next up is crafting a clear problem statement to fuel product creation. A well-defined problem statement encapsulates the precise challenge that needs to be addressed, serving as instructions for design teams. Outlining the problem’s scope and context ensures that the design effort remains aligned with the customers’ real pain points and needs, allowing for a solution that truly resonates with them. This clarity and alignment fosters creativity and innovation in finding the optimal solution. It ensures that the entire team is headed in one direction, toward solving one problem. A well-crafted problem statement that is based on solid UX research guides the design process toward an excellent customer experience.

When thinking about the parts of a perfect problem statement, you must consider the person as well as the problem. This might be a problem that only a certain type of person has or a problem that lots of people have but only at specific moments in their lives. The person in the middle of the problem is just as important as the problem itself and cannot be separated from the problem statement. In addition to the who, problem statements must also consider the why but without the how. When the right amount of research has been done, there should be no trouble succinctly explaining for whom the problem exists and why. As the team sets out to create a solution for this problem, user needs and problem statements come into play. The goal is to reach an actionable problem statement that defines for whom you’re  building the product or feature and why.

The positive impact of a clear problem statement reverberates through the entire business ecosystem. First and foremost, it reduces the risk of costly missteps in product creation. By defining the problem clearly, teams can avoid the pitfall of investing time and resources into solutions that do not address the root issues. It ensures that design efforts are aligned with the actual needs and pain points of the target audience and that the team is setting out to solve for the user and their why. As a result, products are more likely to resonate with and create value for users, leading to enhanced customer satisfaction, loyalty, and advocacy. A great problem statement empowers businesses to differentiate themselves in the market, gain a competitive edge, and drive sustainable growth. In sum, a clear problem statement acts as the catalyst for great design, and when design excels, so does business.

Learn more about Tallwave’s Digital Experience Design Services.

Wrapping Up: Great design, greater user experience

In the realm of product design and business success, two critical elements stand out as paramount: crafting well-defined user needs statements and clear problem statements. These statements act as the guiding light that illuminates the path to exceptional design and, in turn, outstanding business performance. User needs statements distill the essence of what customers truly value, enabling design teams to create products that resonate, cultivate customer loyalty, and fuel lasting trust. Clear problem statements also serve as a map for design, defining the challenge, scope, and objectives. They streamline decision-making, stimulate innovation, and ensure that design efforts align with real customer needs, ultimately reducing the risk of costly errors. The result is a positive ripple effect that enhances customer satisfaction, differentiation in the market, and sustainable business growth. In sum, these foundational statements are the key to unlocking the synergy between great design and great business.

Are you ready to embrace great design and improve customer experiences? We’re all ears. Let’s talk about your next project. And there’s more on the way; stay tuned for the second installment of this series! We’ll delve into how collaboration leads to the best design outcomes.

Categories
Customer Engagement Reaching New Customers Strategy

Convergent commerce: Going beyond omnichannel retail this shopping season

The holiday season is just around the corner, and that means Black Friday, Cyber Monday, and the annual avalanche of gifts, deals, and shopping sprees is practically upon us. It’s that time of year when consumers embark on an epic quest to find the perfect presents and snag the best bargains. But for frenzied holiday shoppers, a poor shopping experience goes over about as well as coal in the stocking. 

While overall holiday spending is expected to stay relatively flat with last year, shoppers are expected to purchase fewer gifts to balance the effects of inflation. That means retailers are likely competing for fewer total purchases. At a time when cost consciousness is high and consumer loyalty is low, brands that can offer consumers a friction-free, customer-centric experience all tied up with a bow will be the winners this holiday shopping season. 

Let’s delve into the latest shopping trends, highlight some common shopping experience pitfalls, and provide valuable recommendations to ensure a seamless and enjoyable holiday shopping experience for your customers that puts your brand on the nice list.

Macro Trend: What is convergent commerce?

Shopping has become an increasingly multi-channel experience, blurring the lines between digital and physical shopping experiences. While data suggested that preference for online retail was waning heading into 2023, e-commerce is expected to be a major channel for holiday spending with over 60% of consumers planning to do at least 40% of their shopping in that channel. But with channels evolving and new channels emerging, channel preferences get increasingly difficult to predict. It also makes the notion of omni-channel retail where a seamless shopping experience across several channels a less desirable goal. 

Consumers are less interested in retailers creating curated multi-channel experiences and more interested in climbing into the driver’s seat themselves. Consumers want an anytime, anywhere commerce experience where they call the shots and execute their shopping activities—from browsing products on live streams to comparing prices across brand apps and AI-powered search, checking items in person for quality, ordering online to ship directly to gift recipients and everything between—wherever they want, whenever they want based on their changing preferences. That’s convergent commerce. It’s a shift from an experience that offers optionality (online vs. in-store) with parity, to frictionless fluidity. 

If that sounds like a tall order, that’s because it is. Shifting from either/or considerations for the retail channels you engage in to activating across multiple channels at once in an integrated and seamless way requires considerable thoughtfulness. Convergent commerce relies on a data-informed (and frequently validated) understanding of what your customers value and their shopping preferences, strong data quality management, and a commitment to breaking down silos across teams, technology stacks, decision-making processes, virtually every facet of your business.

But it’s also a tremendous opportunity to create a consumer experience that’s truly differentiated. Consumers aren’t looking for more of the same; they want experiences that are uniquely tailored to them. And for brands that embrace the concept of convergent commerce, a powerfully divergent experience that sets them apart from competitors can be the reward. 

Micro Trends: Delivering a better customer experience now

According to the National Retail Federation, this holiday shopping season is already underway with over 40% of consumers reporting they planned to begin their holiday shopping in October or earlier. That means today’s consumers can’t wait for your brand’s future convergent commerce strategies to take shape. And brands can’t let perfect be the enemy of progress when it comes to making this year’s shopping experience the best it can be. So what can brands do to better meet the needs of holiday shoppers right now? Reflecting on my own shopping experience, there may be more opportunities for quick wins than many retailers realize.

As both a holiday gift giver and receiver, my shopping considerations are the same as a lot of other holiday shoppers this season. Even though I regularly start my shopping before November, I’m always short on time. So convenience is key for me and online shopping is a great fit. I want to give gifts that feel personal and thoughtful, but with family all over the country, I’m concerned about the costs and potential delays of shipping. So like 55% of Americans who will buy at least one gift card this holiday season, experiential gifts in the form of gift cards, passes, tickets, etc. are high on my list. In what will be the dominant shopping channel (online) focusing on items that are subject to fewer inventory, stocking, and supply chain disruptions than a lot of other gift categories (gift cards), my shopping experiences have included a surprising amount of friction. So my gift to you is three ways you can ensure the holiday shopping experiences you’re serving up don’t leave consumers with a “bah humbug” feeling:

Consider the End-to-End Experience Gifting Experience

The actual purchase is only half the journey, but the gifting experience begins and ends outside the shopping cart. From the ability to effectively manage an influx of traffic from holiday browsers to ensuring gifts can easily be returned or exchanged, brands must consider the end-to-end experience to eliminate friction for both gift buyers and recipients. 

There have definitely been times in my own shopping experiences where a slow, laggy, friction-filled experience has driven me to abandon ship. In fact, this year I’ve begun using the app released by one of my favorite body care retailers. I’m a bargain hunter, but I’m not great about remembering to use my coupons before they expire. I was drawn into the app by the wallet and loyalty points features that keep track of both and give me anytime, anywhere access to them right from my phone. I could shop from the app, but I like to be able to “smell before I buy” when it comes to body products and using the “pick up in store” feature allows me to browse only the inventory I can actually test in the store. Unfortunately, the popup for selecting a store by zip code or my current location just spins. This has been the case up to the time of writing this post despite multiple app updates. So I’ve got two choices when faced with this friction: I can abandon the app and move to the website in hopes of a better experience or I can say “Scrooge it” and move onto something else. 

If you want to avoid turning gift givers and recipients into Grinches here are some tips for ensuring your delivering a gifting experience that sleighs from the first mile to the last:

  • Get your website traffic-ready: There’s nothing more frustrating than a website that takes forever to load. Consumers have zero patience during the holiday rush. A slow website will send them searching for alternatives so your website should be a well-oiled machine. Test its loading speed, ensure mobile-friendliness, and fix any broken links or errors. A smooth online journey will make customers stay and shop. 
  • Take deals directly to customers: Utilize customer data to provide personalized recommendations and offers. Making your customers feel special by proactively showing them that you understand their needs and preferences will help bring them to you.
  • Offer clear and flexible pickup and returns: With consumers moving between physical and digital channels across the customer journey, offering clarity around return policies and flexible pickup and return options will better allow you to meet customers in their channels of choice. Offer the option for customers to order online and pick up items in-store or return online purchases at your physical location for maximum convenience.
  • Have strong support standing by: The holiday season means long hours for your customer support team. Failing to respond promptly to inquiries or complaints can lead to disgruntled customers who won’t hesitate to share their grievances on social media. Implement chatbots, and set up a system for addressing inquiries and complaints promptly. Social media monitoring can help you spot and address issues early.

Make conversion dead simple

Optimizing high-value actions like purchases to the fullest extent means thinking beyond the point-of-purchase mechanics of your e-commerce platform to other experiential elements. Using language within the purchase experience that makes sense to consumers, providing the information consumers need to solidify buying decisions, making relevant payment options easy to use, and ensuring parity of experience across device types can make or break the buying experience. 

I was recently on the website for my favorite purveyor of chocolates with the goal of building a custom box of chocolates and I found myself getting tripped up at key points in the experience. After selecting the size and type of box I wanted to fill, it was time to select my candies. I specifically wanted dark chocolate and was surprised that there didn’t appear to be any search filters on the page; there was just a typical-looking search bar with “Search for flavors” as the hint text and a magnifying glass at the right edge of the box. I scrolled around the site to make sure the filters weren’t just oddly placed and after finding none, I begrudgingly opted to use the search. As I clicked into the box to search the word, “dark,” I discovered that what was designed to look like a typical search bar was actually a drop-down set of filters, which included a filter for dark chocolate. I proceeded to fill my box and initiated the checkout process and got all the way to the payment screen—the final conversion point—before realizing there was no option to select a store for pickup. At no point in the process did I have an option to choose a fulfillment option other than shipping (which also had a cost). Ultimately, I abandoned my cart after the experience left me with a bad taste in my mouth. 

Here are a few tips for ensuring your conversion experience is as sweet as a box of chocolates:

  • Simplify checkout processes: Your customers are looking for a seamless shopping experience, not a labyrinth of forms and confusing steps during checkout. So your checkout process should be as easy. Offer guest checkout options that prioritize speed and simplicity, enable auto-fill features, and provide multiple payment options. Simplify the process, and you’ll see a boost in completed purchases.
  • Avoid hidden fees and charges: Shoppers hate surprises, especially when it involves extra costs at checkout. Display all costs clearly and be upfront about shipping fees, taxes, and any other charges. A transparent pricing strategy builds trust and encourages purchases.
  • Reduce the pain of out-of-stock items: Nothing’s worse than finding the perfect gift only to discover it’s out of stock, so it’s critical to stay on top of your inventory. Ensure your inventory management software is equipped to prevent overselling, notify customers promptly if a product is out of stock, and suggest similar items to keep them engaged.

Consider people and process

Successful convergent commerce experiences require a seamless transition from one channel to the next. That means that the people and processes underpinning the in-store experience need to be equipped with the tools, training, policies, etc. needed to support customers who began their shopping journey in a digital channel (and vice versa). 

I was gifted a digital gift card to one of my favorite restaurants. Because I have three kids, I tend to opt for take-out and delivery more than in-restaurant dining, and I was looking forward to redeeming my gift card for dinner after a particularly hectic day. However, I discovered I wasn’t able to redeem the gift card on my favorite food delivery app or the restaurant’s website. I had to call in and have them run the gift card over the phone. And because the restaurant offers delivery through its app partners only, I was forced to place an order for pickup rather than delivery. The restaurant is in a very busy area, and having to drive, park, and go into the restaurant completely undercut the reason why I decided to order instead of cook. To make matters worse, the staff working seemed to be confused and inexperienced with the restaurant’s pick-up processes. As a result, I spent 20 minutes sitting at the bar waiting for them to sort it out before I could pick up the dinner I’d originally intended to have delivered. I really love their food, so the experience won’t keep me away entirely. But I can tell you their gift cards won’t appear on my wish list until they offer the ability to redeem them for delivery.

Here are a couple of tips for keeping customers from going from joyed to annoyed as they transition between digital and physical experiences:  

  • Drive brand consistency across touchpoints: Your online and in-store experiences should feel like two sides of the same joyful holiday coin. That means these experiences should feel connected in every way. Avoid creating functional silos between in-store and online experiences when it comes to ease of purchase; redemption of gift cards, coupons, and promotions; and returns and ensure where differences do exist—like offering a broader range of product options online or running online and in-store exclusive promotions—they feel purposed and beneficial to your customers. 
  • Prepare your in-store team: Train your in-store staff to be knowledgeable about your online offerings and promotions. They should be ready to assist customers in placing online orders, redeeming digital gift cards, and answering product-related queries.

In the world of holiday gifting, experience is everything. Shoppers are looking for convenience, transparency, and joy during their quest for the perfect gifts. And gift recipients are looking for ease and flexibility when it comes to redeeming, exchanging, returning, and using gifts. By staying ahead of the latest trends, addressing common pitfalls, and implementing our recommendations, your business can ensure a memorable holiday shopping experience for your customers. Even if achieving truly convergent commerce is still a future destination on your roadmap, implementing these strategies will help you deliver a cohesive shopping experience that supports customers as they transition between online and in-store shopping. This flexibility not only meets the evolving demands of today’s consumers, but also positions your brand as one that truly values creating a differentiated experience that puts customers at the center. No matter where your brand is in your convergent commerce journey, we can help you ensure each step along the way creates value for your customers and your business.  

Categories
Customer Engagement Innovators Series Mindfulness Reaching New Customers Value Realization

The smart money is on treating marketing as an operating expense

As a digital agency CEO with a strong financial bent and a finance leader with deep experience in the agency space, we’ve seen the financial dance between marketing and finance teams more times than we can count. And we’ve heard some pretty creative approaches for classifying marketing expenses in different ways. While there’s no hard and fast rule that’s 100% right 100% of the time, more often than not the most compelling case is for treating marketing as an operating expense. This decision isn’t just a matter of semantics; it can have a significant impact on your business’s financial health and agility. 

Operating vs. Capital expenses

Before we dive into why you should treat marketing as an operating expense, let’s clarify the difference between operating and capital expenses.

What Is an operating expense?

Operating expenses, often referred to as OpEx, are day-to-day costs incurred to keep your business running. Think salaries, rent, utilities, and yes, marketing expenses. OpEx is immediately deductible against your revenue, reducing your taxable income.

What is a capital expense?

Capital expenses, often referred to as CapEx, are investments in long-term assets, like buying a new factory or upgrading your IT infrastructure. CapEx is typically depreciated over time, which means it’s deducted gradually over several years.

Now that we’ve defined these two expense types, let’s talk about why we recommend putting marketing investment on the OpEx side of the ledger.

The temptation of a capital expense classification

While we believe the strongest argument is for classifying marketing as an operating expense, we understand why some companies may be tempted to categorize it as a capital expense. It can inflate the company’s assets on the balance sheet, potentially presenting a more favorable financial picture to investors and stakeholders. Additionally, tax implications can sometimes favor capitalizing marketing expenses, especially when a company is looking to spread out deductions over several years to minimize immediate tax liability. However, it’s essential to weigh these potential benefits against the flexibility and transparency that come with treating marketing as an operating expense to make an informed decision that aligns with the company’s overall strategy.

 In cases where marketing initiatives have long-lasting effects, such as brand-building campaigns, there might be an argument for considering them as capital investments. One area where this argument tends to be the strongest is in investment in digital properties like websites.

Websites can serve as long-term assets, contributing to a company’s brand image, customer acquisition, and revenue generation over an extended period. This aligns with the capital expense criteria of enduring benefits and a useful life spanning several years, so classifying website investment as a capital expense has its merits. By capitalizing website development costs, companies can gradually expense them over time, smoothing out the financial impact.

However, there’s a counterargument to consider. Capitalizing certain marketing costs so they don’t hit your expense line and EBITDA can be enticing, but in the future, these become dead expenses because they’re being depreciated. Doing this over multiple years will lead to carrying depreciated expenses that you’re not realizing tangible return on, which hinders your marketing team from driving a full return on each year’s expenses.

Additionally, the digital landscape evolves rapidly, and website technology becomes outdated quicker than many other capital assets. Treating website development as an operating expense recognizes the need for continuous updates, improvements, and adaptations to keep pace with changing user expectations and technological advancements. Moreover, categorizing website investment as OpEx offers immediate tax benefits, as these expenses are fully deductible in the year they occur, potentially reducing tax liability in the short term.

Ultimately, the classification of website investment as a capital or operating expense depends on the specific circumstances and strategic goals of the company. CFOs and finance teams must carefully assess whether the long-term benefits and gradual expense recognition of capitalizing website costs outweigh the agility and tax advantages offered by treating them as an operating expense. It’s a balancing act that requires a nuanced understanding of the company’s digital strategy and financial priorities.

The argument for marketing as an operating expense

Potential exceptions like website investment aside, marketing investments represent ongoing, essential costs incurred to sustain day-to-day business operations, promote revenue generation, and adapt to dynamic market conditions. Treating marketing as an operating expense aligns with the constantly evolving nature of the marketing landscape and offers a host of advantages:

It gives you the flexibility needed to adapt to rapid change

One of the primary reasons to treat marketing as an operating expense is that it reflects the reality of the marketing landscape today. Marketing isn’t a one-time investment; it’s an ongoing effort to connect with your audience, build brand awareness, and drive sales. In today’s fast-paced digital world, consumer preferences can change on a whim and marketing campaigns must be able to adapt rapidly. When it comes to marketing, you can’t simply “set it and forget it” like you would with a capital asset.

When it comes to marketing, you can’t simply “set it and forget it” like you would with a capital asset.

Treating marketing as OpEx provides greater financial flexibility, allowing you to adjust your marketing budget more easily in response to changing market conditions or business needs. When marketing is a capital expense, you’re stuck with the initial investment, whether it’s performing as expected or not, which can limit your ability to evolve and adapt. As companies take greater control over their data and leverage technologies like AI and ML to execute data-driven decision making at scale, the capacity for ongoing, real-time optimization of marketing activity to drive performance improvement will only increase. With OpEx, you can scale your marketing spend up or down as needed, allocate resources to new marketing channels, and pivot your strategy without making the same level of long-term commitment from a finance and accounting standpoint and without the burden of depreciating assets.

It enables better ROI tracking and more accurate financial reporting

Accurate financial reporting is essential for making informed business decisions. When it comes to marketing investment, treating marketing as an operating expense ensures your income statement accurately reflects the real cost of doing business. This transparency helps you understand the true profitability of your operations and facilitates more accurate forecasting.

For its part, marketing efforts have high expectations for delivering quantifiable returns, whether it’s in the context of return on ad spend, reduced cost of acquisition, improved lifetime value, or any number of other metrics used to evaluate return on marketing investment. When marketing is categorized as OpEx, it’s easier to track and measure its ROI in real-time. You can see how your marketing efforts impact revenue and adjust your strategy accordingly. With CapEx, ROI calculations become more complex and less immediate.

It makes your CFO’s job easier

Given our roles and backgrounds in financial stewardship, we know the importance of prudent financial management. And we know that’s the love language of most CFOs. Treating marketing as OpEx actually makes your CFO’s job easier. Here’s how:

  • Clearer financial statements: Treating marketing as OpEx leads to cleaner, more straightforward financial statements, simplifying your job in preparing financial reports and ensuring transparency for all stakeholders.
  • Easier budget management: With marketing as OpEx, you have greater control over the budget. You can allocate resources more dynamically, responding to changes in the market or business priorities. It’s easier to manage and forecast expenses when they align with the business’s actual needs.
  • Reduced risk: Capital expenses carry inherent risks. What if the asset becomes obsolete or doesn’t perform as expected? Treating marketing as OpEx eliminates the risk associated with depreciating assets, offering a more predictable financial landscape.

Take it from us, it’s a great way to endear yourself to your head of finance, which can grease the wheels when you’re looking for approval on decisions that need to be made quickly.

It can send the right signal to strategic marketing hires

This last advantage of classifying marketing as OpEx is an easy one to overlook, but it can be really impactful. Top marketing talent often prefers companies that treat marketing as an operating expense. You might be surprised if this question comes up in an interview for a strategic marketing hire. But when a candidate poses this question, it can be a great indicator of strategic thinking about the level of ongoing business value your company ascribes to marketing. Because they know it demonstrates a commitment to staying current and competitive, being able to tell candidates that you classify marketing as OpEx shows that your company views marketing as a dynamic and mission-critical function and is willing to invest in it continually for long-term success.

Betting on marketing as a dynamic driver of growth

Things are rarely cut and dry when it comes to strategic budgeting, and marketing is no exception. There will always be a need to balance near-term and long-term financial constraints, business goals, and the marketing strategies and assets that support them. And there may be sound business reasons to capitalize on certain marketing investments under particular circumstances. But in general, treating marketing costs as operational versus capital expenses provides the greatest benefit when it comes to optimizing marketing performance, maximizing ROI, simplifying marketing budget management, and positioning marketing as the dynamic level for driving business growth that it is. 

Regardless of how you classify marketing expenses on your budget sheet, fostering collaboration between marketing and financial leadership is key. Driving ongoing conversations between marketing and finance will help ensure that your finance team has a clear understanding of the business context for marketing investment, including the roles that various marketing investments play in achieving business goals, how return on those investments is defined, and what short- and long-term management and stewardship of those investments looks like and requires. It will also help your marketing team understand the broader financial parameter and requirements within which the business operates and the considerations that go into expense classification. 

Sometimes the best way to foster understanding between your marketing and finance teams is with a partner who understands both sides of the coin and can translate between their unique points of view. If you’re looking for guidance or support bringing these critical business functions closer together, let’s talk.

Categories
Customer Engagement Reaching New Customers Strategy

Mastering full-funnel marketing for lasting growth

Many companies have shifted their focus to bottom-of-funnel tactics, like paid search and retargeting ads, as economic uncertainty drives budget constraints and increases the pressure to make sales. However, this imbalanced approach will almost certainly have a lagging negative impact on revenue and ROI.

Implementing a full-funnel marketing strategy can fix the imbalance and ensure long-term growth and sustainability. Let’s look at the full marketing funnel, why stage-specific engagement matters, and how to bring them to life.

What are the stages of full-funnel marketing?

Marketing strategy is often compared to a funnel because of the shape it takes as consumers move through the purchase journey. 

A chart showing the conversion funnel.

Stage 1: Top-of-funnel

Awareness tactics (at the top of the funnel) are broad and cast a wide net to reach consumers. This might include things like radio ads, billboard ads, blogs, or public relations campaigns. 

The purpose of top-of-funnel tactics is to get your brand in front of your audience and generate brand awareness. As such, success for these individual tactics should be measured by publisher metrics like impressions, reach, frequency, and video completion rates or through survey metrics like lift in brand awareness and ad recall. A common misstep we see marketers make is trying to measure the success of a top-of-funnel tactic by the number of conversions it drives. Billboards aren’t going to result in a click-through conversion, but they do influence consumers who may not even know they want to buy your product or service yet. Similarly, an attribution model that ignores the role top-of-funnel tactics play as part of the confluence of factors that ultimately drive conversion can work against you.

Stage 2: Mid-funnel

Consideration tactics (in the middle of the funnel) focus on consumers who are familiar with and evaluating the brand. Tactics deployed at this might include product-specific emails, FAQ pages, and organic search strategy. 

This is the stage where we start to see consumers interacting with the brand so success metrics look different than those in the top of the funnel. Here, we are interested in engagement metrics like click-through rates, social media interactions, rich media interactions, average time on site, pages visited per website engagement, scroll depth, and non-conversion website events (e.g., PDF downloads, webinar registrations, video completions, etc.).

Stage 3: Bottom of the funnel

Conversion tactics (at the bottom of the funnel) get in front of consumers who are ready to make a purchase. Paid search is a major tactic at this stage of the funnel, but tactics might also include website content like comparison charts or savings calculators.

This is the stage at which we measure tactical success in terms of conversions. Consumers, influenced by the awareness and consideration driven higher up in the funnel from other tactics, are now ready to make a purchase or submit a lead form.

But it doesn’t end there! After consumers convert, they move into the loyalty part of the funnel. The tactics in this part of the funnel keep consumers coming back. It might include things like personalized content, rewards and loyalty programs, or incentive campaigns.

The success of your loyalty program can be measured by customer retention rate, customer lifetime value, and repeat purchases.

The lowest part of the funnel is advocacy, which is all about getting consumers to tell their friends about your brand. This often takes the form of customer reviews and referral programs and can be measured by metrics like customer satisfaction scores, online reviews and sentiment analysis, and social listening insights.

Why does a full-funnel marketing strategy matter?

Although marketers like to position their strategy into a nice, neat little funnel, the reality is that the consumer journey is not so nice and neat. It’s also not linear. On average, it takes 8-12 touchpoints with a brand to convert a customer! 

An image depicting the unclear path that often occurs between the first point of contact and conversion.

The beauty of a full-funnel marketing strategy is that it helps you meet consumers where they are in their journeys. It is a holistic, integrated approach that drives repeat exposure and facilitates multiple touch points with customers at different stages of their journey, which is critical for ensuring your brand is top of mind when the moment of truth comes and a buying decision is made.

The negative impact of a bottom-of-funnel approach

Conversion-focused tactics often get the most attention because they produce the most conversions. But consumers can’t convert if they aren’t aware of your brand. Consumers won’t convert if they know about your brand, but haven’t taken the time to consider what it means to them. By neglecting the upper parts of the funnel, you choke the funnel and restrict your ability to drive conversions in the long term.

Unfortunately, many companies get overly focused on the bottom-of-funnel tactics due to the very real and understandable pressure that marketers get from leaders focused only on transactional KPIs. This is especially true in times of economic uncertainty (check out our white paper on how to optimize your customer experience for recession resilience) when driving revenue takes on a heightened priority.

A broken funnel can manifest in many ways:

Poor engagement rates

If you skipped over the awareness part of the funnel, consumers may not be familiar with your brand. Trust and credibility have yet to be established and so they are not prepared to engage with your content.

High engagement, but low conversion

Similarly, if consumers are clicking, but not converting, may not be meeting them at the right point in their journey.

Conversion stagnation

Often a symptom of low-funnel strategies, you may have tapped out your available audience by ignoring critical awareness tactics.

Unintentionally over-indexing on first-time customers

It is 5-7 times more expensive to acquire new customers than to retain existing ones. If your customer base is over-indexed on new customers, you may need to double down on your retention efforts.

Decrease in branded searches

Customers can’t search for you if they don’t know about your brand. Investing in top-of-funnel tactics is crucial to driving brand awareness.

Increase in costs to convert

Persistent increases in cost per lead (CPL) or cost per acquisition (CPA) signal that you are competing for a finite, over-indexed audience and would benefit from upper-funnel tactics.

Bringing a full-funnel marketing strategy to life

If any of the scenarios above sound familiar, it’s probably time to evolve your marketing strategy to adopt a full-funnel approach.

Here are some key considerations when establishing a full-funnel marketing strategy: 

Teamwork makes the dream work

A full-funnel marketing strategy requires collaboration across multiple teams (think strategy, brand, paid media, creative, content, design, PR, email, loyalty… the list goes on!) to ensure thoughtful, cohesive customer experiences. Make sure you are pulling in representatives from all the appropriate teams to drive alignment and ensure consistency.

Measurement matters

An appropriate measurement strategy is key to keeping a full-funnel strategy on the rails. As we described when defining the stages of the funnel, KPIs must reflect where tactics sit within the funnel to properly measure success and make informed marketing decisions.

Similarly, an attribution model can make or break your strategy. Last-click attribution models in particular can influence over-indexing on bottom-of-funnel tactics by assigning credit to the last touch before a conversion. This model puts a thumb on the scale for bottom-of-funnel tactics, limiting the ability to optimize for the distinct goals of tactics that play other roles in the funnel. Linear or data-driven models are generally more effective at assigning appropriate value to tactics throughout the funnel. 

Be patient

The impact of a full-funnel strategy won’t be felt immediately. Upper-funnel efforts build future demand. Building loyalty and driving advocacy takes time. But this strategy sustains growth marketing investment in the long term by allowing you to reach more potential customers, extending the lifetime value of those customers, and generating more profit for less investment by driving efficiencies across the program.

The bottom line: full-funnel marketing strategies work

A recent Nielsen study of CPG brands showed that those with a full-funnel strategy had 45% higher ROI and a 7% increase in offline sales compared to marketing campaigns running in a single purchase stage.

We recently published a case study about how we helped a nonprofit client of ours drive efficiencies in their paid media program by enhancing their bottom-of-funnel paid media program to a full-funnel one. In the first year of running this full-funnel program, our client spent 9% more on paid media year over year, but produced 61% more donations.

Designing holistic customer experiences that drive growth is our strength. Because full-funnel marketing strategy is a team sport that requires participation from multiple teams, internal silos are the enemy of creating a holistic, integrated strategy. At Tallwave, we pride ourselves on two things: 1) relentlessly keeping the customer at the center of what we do at every stage of the journey and 2) driving integration and collaboration in the strategies that drive the customer experience so we can deliver successfully against your customers’ needs and your business goals. 

Ready to learn more about how Tallwave can help enhance your marketing program? Give us a shout!

Categories
Customer Engagement Reaching New Customers Strategy Value Realization

Driven by values: The new persona playbook

Target audience research and persona profiles have become a standard part of the marketing toolkit. Despite the changes I’ve experienced in my 20 years as a marketer as new technologies have emerged, channels have evolved, and customer expectations have become more demanding, the importance of persona profiles has been one of the few constants. A rich persona can be hugely beneficial in driving and informing how we engage with prospective customers, certainly through marketing efforts, but more broadly as well. 

Despite the rapid rate of change that has shaped the marketing landscape, how we approach persona profiles hasn’t changed all that much. I’ve seen personas with different levels of depth and layouts, but they’re generally pretty similar at their core. Most of the time, they include a combination of what your audience looks like, with details like their age, income, job title, and marital status. The more creative ones even include fictitious names and pictures. And the rest is some combination of consumer behaviors, statements, pain points, and information gathered from a fairly small number of representatives of your audience, often through interviews. 

But there’s one big problem with the traditional approach to personas. Nearly all the information they include has very little to do with what you care about most: WHY your customers buy and HOW to get prospective customers to do the same. The good news is we believe we have a better approach. In this post, I’ll share a method for audience research and persona development that taps into a huge repository of existing data to deliver insights on the values that drive your customers’ decisions.

Why Values Matter for Driving Consumer Behavior

Roy E. Disney, nephew of Walt Disney and longtime senior executive for the Walt Disney Company, put the power of values into the most succinct statement I’ve seen yet: “When your values are clear to you, making decisions becomes easier.” He understood that, just like our customers, we make decisions every day, not based on our demographics or our past behaviors, but on our values. And brands can tap into that power. If you know which values your best customers share, the values that motivate the buying behaviors you’re trying to inspire in prospective customers, you have the power to know what to do and say to get existing customers to say yes more often and to drive new customers to purchase.

The Disconnect between Values and Demographics

As it turns out, our values have little to do with our demographics. Our demographics might be part of the reason we don’t take a particular action. For example, odds are if I don’t have children, I’m not searching for pediatricians or childcare options. Being childless, which is part of my demographics, is the reason for my inaction. But for people who share the demographic condition of parents, that common characteristic only determines that searching for and selecting a pediatrician or a childcare option is a choice they’re likely to make. The demographic condition of being a parent has nothing to do with which choice they make and why. If it did, all parents would make the same choices. But of course, they don’t. They make different choices based on what they value. That’s why using demographics alone to connect with and influence your audience doesn’t really work. 

I think the values gap that exists within a traditional demographic and psychographic approach to audience research and persona profile development is something that most marketers recognize intuitively. But there haven’t been a lot of better options for uncovering the nuances of what an audience values in a scalable way. That is, until I listened to episode 331 of the Digital Marketing Podcast, The Death of Demographics, An Interview With David Allison. In it, David Allison talked about his book, The Death of Demographics, and the research data behind it that spawned the first big data tool that makes a scalable, data-driven approach to values-centric audience research and persona creation possible. 

The book is the product of a massive global research study known as the Valuegraphics Project (more on that in a minute) that finds that when it comes to values, humans agree about 8% of the time as a baseline. When you group by any demographic cohort—age, gender, income, marital status, you name it—that agreement only increases by 2.5%. So building a marketing campaign around what you think “Gen Z” or “working moms” or “retirees” care about is going to be only slightly more effective than throwing the spaghetti at the wall and deploying your campaign to anyone and everyone. Because while the year you were born, whether you have kids, and your employment status may influence decisions you will or won’t make, they don’t have anything to do with the “why” behind them.

So what will be more effective? The answer is valuegraphics.

The Valuegraphics Project

The Valuegraphics Project is a global mapping of core human values, the drivers behind all our decision making. Through nearly a million surveys deployed in 152 languages in 180 countries across the world evaluating 436 values-related metrics, 56 core human values emerged. And 15 statistical clusters of agreement around subsets of those values, which the architects of this project call “archetypes,” emerged from that research data. Those 15 archetypes can be used as the basis for valuegraphic personas, each representing an audience that is demographically diverse, but highly aligned on values.

So building a marketing campaign around what you think “Gen Z” or “working moms” or “retirees” care about is going to be only slightly more effective than throwing the spaghetti at the wall and deploying your campaign to anyone and everyone.

This focus on values doesn’t mean demographics and psychographics don’t have a place—they do. They can be practical and effective ways to limit your audience based on functional barriers to making the decisions you want them to make. But demographics and psychographics won’t help you understand what actually drives those decisions. You need valuegraphics for that. That audience data triad of demographics, psychographics, and valuegraphics all come together with your audience engagement strategy in the Value Thinking process.

A Venn Diagram showing Values Thinking. Values Thinking is a process for identifying the underlying values that motivate your target audience so you can build an engagement strategy around those values.
Values Thinking is a process for identifying the underlying values that motivate your target audience so you can build an engagement strategy around those values.

Valuegraphics in Action

Chart showing Value Graphics in Action: The U.S. vs the world.
Value Graphics in Action: The U.S. vs the world.

So how do you go about putting valuegraphics to work to better understand and engage your audience? It starts with understanding the valuegraphics profile for your target regions and then surveying your target audience to illuminate their dominant and least dominant valuegraphic archetypes. 

Regional Valuegraphic Profiles

One of the outputs of the Valuegraphics Project is a set of region-specific profiles that tell you the top values for each region. Looking at the regional valuegraphics profile for the US, we know that belonging, family, relationships, personal growth, and health and wellbeing make up the top 5 values for the region. Looking at the top 5 values for the US compared to the rest of the world, we see that family and relationships are valued similarly. But there’s significant divergence between the US and the rest of the world when it comes to belonging and health and wellbeing. 

If you’re targeting a US-based audience, that’s already much more useful than any demographic or psychographic data when it comes to not just getting in front of, but influencing your audience to take a particular action. No matter what else you say, if you can connect your product or service to the values of belonging and health and wellbeing, your efforts will be much more effective at striking a chord than they would be with demographic and psychographic data alone.

Valuegraphic Archetypes

Value Graphics in Action. This chart shows "The Adventurer" archetype.
Value Graphics in Action: Adventurer Archetype.

With the valuegraphic profile for your target region, you’re ready to uncover the most and least dominant valuegraphic archetypes of your audience. Let’s say you’ve surveyed members of your audience and determined that the dominant valuegraphic archetype among them is the Adventurer. This is the 7th most common archetype globally representing 10% of the population. So you’re already getting much more narrow than the regional profile. When you get down to archetypes and the values they contain, you’re tapping into a currency that not only drives human behavior, but drives it in remarkably similar ways for those who share these values. 

Comparing the regional valuegraphic profile of the US with this specific archetype, two points of meaningful distinction in the top 5 values are immediately apparent. Experiences aren’t in the top values for the region at all, so focusing on this value will be uniquely resonant to this group. Personal growth is in the top 5 values for the region, but it’s ranked much higher for this particular archetype. Tapping into these values will create an engagement strategy that’s uniquely relevant for this specific audience. So in this example, we’ve deployed a valuegraphic survey to the kinds of customers we want to find more of. And in analyzing that data, we uncovered the Adventurer as the dominant archetype. How do we get from here to a values-driven persona that marketing and other teams within our business can sink their teeth into? 

Building a Better Customer Profile: Valuegraphic Personas

We’ve taken this process one step further to create personas based on the valuegraphic profiles we’ve built around specific audiences. One of the first things that makes these personas stand out from the traditional fare is what they don’t include. What you won’t see in this kind of persona are the demographic elements you typically see (a picture, fake name, age, and bio). That’s by design because they generally have nothing to do with the action we want to compel. And including them can imply that they do. Best case scenario, it’s not helpful. Worst case scenario, it can cause us to arbitrarily limit our audience and cut us off from engaging with values-aligned prospective customers.

Here’s what you will find in one of our valuegraphic personas:

  • The valuegraphic archetype(s) represented and a brief description of it, including contextual statements from people who share the archetype(s)
  • Statistics on how common this persona is in your region and their degree of values alignment
  • Highlights of the most and least dominant values, which serve as driver and detractor values respectively
  • A list of qualities and characteristics that are virtually certain (in that they’re true for 90%+) and highly likely (75-89%) to be shared by people who represent the persona and implications for your brand

The information in the first three bullets helps us start to get inside the minds of this persona. But the last bullet contains the gold nuggets that have actionable impact on marketing and beyond. The certainties and likelihoods for valuegraphic personas cover broad and sometimes unexpected ground, from unique perspectives on values to common behaviors and preferences related to travel, mobility, money management, leisure, the list goes on. And they can inspire insights that can influence everything from product and service innovation to content and creative, targeting, affinity and partnership marketing, and more. And these insights aren’t the product of a handful of qualitative interviews; they’re the product of a massive global research study that included analyses on massive quantities of research data at a level of statistical rigor that would exceed the requirements of most major universities. 

Beyond B2C: The Value of Valuegraphics for B2B Brands

It’s easy to see how a valuegraphics-based approach to target audience research and persona profile development applies to B2C companies. But the applicability to B2B companies might not seem as obvious because in these scenarios, we tend to adopt an institutional view of our buyers. In reality, purchase decisions for businesses are still made by human beings (and in most cases, multiple human beings). That means that not only is the concept of connecting with the values of your buyers still very much in play, one could argue that the impact is compounded given that purchase decisions are made by multiple decision makers. So if you’re engaging in a way that’s not aligned to your target audience’s values, you’re going to hit the same snags over and over again with multiple decision makers. 

In the context of the traditional approach to target audience research for B2B companies, it would be typical to develop buyer persona profiles for the different stakeholders who play a role in making purchase decisions and develop distinct persona-specific value propositions for those different decision makers. In the context of valuegraphics, the same logic holds. Illuminating the values that drive decision making for your cadre of B2B buyers will make you more successful in aligning to those values and compelling the desired action.

Evolving Your Approach to Understanding and Driving Consumer Behavior

With the execution of the Valuegraphics Project, we now have a way to leverage a much bigger body of data in the art and science of developing persona profiles. As marketers and growth drivers for our businesses, that gives us the ability to develop a deeper understanding of our audience at scale and parlay that understanding into action both within and beyond our marketing strategies to align better, resonate more, and compel action more effectively. As the world around us grows increasingly privacy-sensitive and the data at our disposal to drive reach with our audiences becomes more limited and nuanced, the brands who know their audiences best will have the greatest advantage. 

If you’re ready to evolve your approach to target audience research and harness the power of valuegraphics data to drive your market engagement strategies, I highly recommend checking out David Allison’s book, The Death of Demographics. Or better yet, give us a call for the CliffsNotes and our playbook for putting it into action.

Play Video

Bunger Steel

Doing some things and making some impacts