Predictability of outcome.
“True, business isn’t as good as it was, but we can still make money the way we have been operating for the past 5 years. If we initiate a change, it will be an extra expenditure and we could never be sure that it will work because if it is a new idea, we will have nothing to compare it with.
In response to the above reaction, we posted a KPI warranty for branding on June 4th, 2012. The idea was to make branding accountable.
The concept of a warranty:
The branding warranty was designed to establish a more realistic, returns on investment from a marketing communication program right from the start. The warranty would apply to a mutually agreeable KPI. The set goals would be based on facts and information about the Brand in its marketing environment at a given time frame.
And because both parties (client and the brand communication company) need to agree on the outcome, it will yield better results. Should the MAR-COM effort fail to reach its target, the client will be entitled to a refund or compensation, depending on the arrangement.
The justification for a Branding warranty :
Buying an electronic equipment comes with a limited warranty. Within a certain period of time and under the provision that the equipment has not been tampered with, the customer is entitled to a refund or a replacement, if the equipment does not perform as indicated. One could argue that equipment is different from a service Brand, but in the airline industry, for example, there are also warranties. Even though airlines are not directly responsible for many factors that affect their service, when an Airline fails to get its passengers to a destination on time, passengers are being compensated with alternative flights or with free overnight accommodations.
Marketing communication is exempt from performance responsibility partly because it is often based on presumptions of vaguely understood customer’s responses. In general, decisions about marketing communication are based on personal preferences.
As soon as the MAR-COM warranty went on line I received some strong reactions.
One creative director from New York responded as follows:
Actually, I have twenty-five years of developing advertising concepts from conceptualizing through to the final hands on edit and client presentation. Oh yes, I want my work to be absolutely beautiful, however, I care about my client. I need the creative plan to work for my client. Creative for the sake of creative can fail and I am seeing more and more creative for the sake of creative where the client message, the call to action is lost or never present. We are obviously on opposite sides of the fence. I am a creative, I care about results, results pay my salary and give me a solid reputation. Yes, I want the work to shine but success for my client is and always has been the destination. The awards I value the most are my Consumer Choice Awards. Again, you are a marketer and me, a creative. Therefore we come from two different points of view. It was fun engaging this topic but maybe not my best use of time.
(The writer didn't know that I am a creative too.)
Another response from the USA:
You know what would be REALLY interesting - to find out what actually happened after these ads were run. Did the advertisers actually get a refund due to the screw-ups? Did they even notice them? Did the publications apologize? Was anyone sacked? Did a competing magazine ever use these as bad examples to show clients "we'd never do something like this.."? I've seen these types of images sent around in emails before; usually as a way to get a laugh. I often wonder though, ultimately what was the result after the error was discovered. What happens after something like this is just as good an indicator of good management as discovering it beforehand so it doesn't happen in the first place.
While the response from the creative director was defensive, the client’s response was inquisitive.
This was the strategic outline for a Branding Warranty:
- One valid performance metrics to be negotiated and agreed upon at the outset.
2. Expenditure shall be estimated in terms of expected returns at a given time span in a defined market.
3. Collaborative enablers. The agreed upon action plan will spell out the types and extent of the marketing communication measures that must take place in order to achieve a set KPI. Any deviations from that plan would affect the scope and validity of the warranty.