redefining business models in a post-penguin world
DESCRIPTION
Following the Penguin update, there has been a real shift in the digital marketing industry towards strategies and tactics that are more defensible in the long-term. This presentation uncovers the ways that BlueGlass has responded to this changing market and how we've developed a business model that will help our clients not only to drive results in the short term, but to build an online foundation that can weather algorithmic changes into the future. We discuss the challenges we've faced in making a transition towards this much more powerful model, and give tips for agencies looking to make a similar change.TRANSCRIPT
Redefining Business Models in a Post-Penguin World
Greg BoserPresident
BlueGlass Interactive
http://www.blueglass.com
@GregBoser
About BlueGlass
BlueGlass is a full service digital marketing agency. BlueGlass was formed with the goal of providing high quality services that deliver real, clear, results.
About Me
Spent 14 years in a consultant/small boutique agency environment primarily focused on organic SEO
About Me
Joined BlueGlass as SVP of Search Services by way of an acquisition in October of 2010.
About Me
March of 2011 took on the role of President of Products & Services, and focused on the task of integrating the Mash up.
About Me
Dropped the “Products & Services” part in January 2012 so I could: A) Fit my title in the PubCon speaker registration
form. (Brett still believes in character limits)
B) Spend more time working on the Biz Dev side of things with our VP of Excitement, Loren Baker.
Google Goes Completely Insane
Google Launches Caffeine in June of 2010
Google Goes Completely Insane
Size of index explodes
Google Goes Completely Insane
New automated filtering can’t keep up
Google Goes Completely Insane
Onslaught of “poor quality” articles floods the web
Google Goes Completely Insane
October of 2010 Google rolls out an excessive localization tweak
Google Goes Completely Insane
February 2011 Google retreats to “iterative filtering” to control all of the spam getting through (Panda)
Google Goes Completely Insane
Follows up a year later with a little “Behavioral Correction” filtering. (Penguin)
Google Goes Completely Insane
Everyone’s skeleton's are exposed.
Our Goal
Build a fully integrated and scalable data-driven, digital marketing agency that focuses on developing and executing content-based marketing strategies.
Issue #1
Siloed Internal Structure
Trying to build integrated marketing strategies from a vertical silo structure doesn't work.
Siloed Internal Structure
Trying to build integrated marketing strategies from a vertical silo structure doesn't work.
Ditched channel-specific silos in favor of a structure based client lifecycle workflow. (one team works on all components)
Ditched channel-specific budgeting (no internal fighting over budgets).
Implemented a greater level of top-down transparency (entire team knows more about the engagement much earlier in the process)
Implemented open ideation (If the janitor has a good idea, I want to hear it)
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Better ability to address all marketing goals
Higher level of agility
Better ideas
Happier employees
Product Ambiguity(Consultancy Vs. Vendor Services)
Pick one or the other. Trying to offer both really doesn’t work.
Killed One-off Production-only and 3rd Party Vendor Services
We don’t sell articles and infographics; we sell content marketing strategy
Killed One-off Production-only and 3rd Party Vendor Services
We’re not a vendor; we’re a strategic transparent partner
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Relieved overloaded production department
Made content production profitable!
Antiquated Pricing Models
Content-driven strategies are more complex, and the margins associated with the various pieces involved can be quite different.
Antiquated Pricing Models
Grouped all services based on the project lifecycle model
Antiquated Pricing Models
Tracked the true costs of each group
Antiquated Pricing Models
Made value-based adjustments to bundled pricing distribution
Antiquated Pricing Models
Introduced performance-based pricing and guarantees for promotion services
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Antiquated Pricing Models
Reduced redundancy
Antiquated Pricing Models
Identified unprofitable services
Antiquated Pricing Models
Improved client perception
Antiquated Pricing Models
Increased margins
Antiquated Pricing Models
Increased client adoption
Antiquated Pricing Models
Created a pro-experiment/failure-is-ok environment
Poor Client Selection
Content-driven strategies are a lot more work. Not every company that wants to hire you is a good fit.
Poor Client Selection
At the end of the day, you need wins!
Poor Client Selection
Implemented a “High Probability Selling” sales model
Poor Client Selection
Rejected the traditional RFP model
Poor Client Selection
Focused on “changing the conversation”
Poor Client Selection
Learned to say no to abusive “dangling carrot” clients
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Poor Client Selection
Dramatic improvements in:
Landing “great fit” clients
Poor Client Selection
Dramatic improvements in:
“Time to Trust”
Poor Client Selection
Dramatic improvements in:
Average engagement length
Poor Client Selection
Dramatic improvements in:
Overall profitability
Issue #5
Outdated Contract Structures
Legacy contracts completely lacked the type of language necessary to deal with the unique issues related to content marketing.
Outdated Contract Structures
Legacy contracts completely lacked the type of language necessary to deal with the unique issues related to content marketing.
Changes We Made
Outdated Contract Structures
• Implemented SLA’s with guarantees• Added client obligations/responsibilities• Implemented subscription model pricing for
production services• Added simple budget reallocation tools
Outdated Contract Structures
Implemented SLA’s with guarantees
Outdated Contract Structures
Added client obligations/responsibilities
Outdated Contract Structures
Implemented subscription model pricing for production services
Outdated Contract Structures
Added simple budget reallocation tools
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Outdated Contract Structures
Dramatically improved client response time
Outdated Contract Structures
Greater ability to forecast and budget for labor
Outdated Contract Structures
Much happier clients through the production phase
Outdated Contract Structures
Overall reduction in overrun engagements
Outdated Contract Structures
Much better ability to pivot
Issue #6
Content Quality Consistency
Relying solely on outside vendors for content production can work really well at the boutique level. But it doesn’t always scale well.
Content Quality Consistency
Relying solely on outside vendors for content production can work really well at the boutique level. But it doesn’t always scale well.
Content Quality Consistency
Acquired Voltier Digital
Content Quality Consistency
Brought writers in-house
Content Quality Consistency
Aggressively hired new writers
Content Quality Consistency
Applied subscription model to vendors
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Content Quality Consistency
• Dramatic improvement in consistency• Huge reduction in revision work• Greater ability to scale
Issue #7
Lack of Process Documentation
Being really good at what you do doesn’t mean you are prepared to teach others to be good too.
If you plan on growing in the future, take the time to analyze and document what you do and how you do it!
Lack of Process Documentation
Being really good at what you do doesn’t mean you are prepared to teach others to be good too.
Lack of Process Documentation
If you plan on growing in the future, take the time to analyze and document what you do and how you do it!
Lack of Process Documentation
Added a dedicated person to oversee the process development and documentation process.
Issue
Lack of HR Identity
The day-to-day environment of a larger organization is quite a bit different than that of a boutique consultancy.
Being great at what you do doesn’t necessarily translate into a situation that’s a fit.
Lack of HR Identity
The day-to-day environment of a larger organization is quite a bit different than that of a boutique consultancy.
Lack of HR Identity
Being great at what you do doesn’t necessarily translate into a situation that’s a fit.
Lack of HR Identity
Took the time to identify those in the organization who had the right personality traits
Lack of HR Identity
Found them positions that best matched their skill sets
Lack of HR Identity
Empowered them to go find and hire themselves
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Lack of HR Identity
A super awesome, dedicated staff that kicks ass!
Issue
Practicing What We Preach
The cobbler’s children often have no shoes.
Practicing What We Preach
The cobbler’s children often have no shoes.
Practicing What We Preach
Built a dedicated internal marketing team
Practicing What We Preach
Made the commitment to grow our company only using the methodologies we preach
Practicing What We Preach
Use ourselves to R&D new products and workflows
Benefits
• Better ability to address all marketing goals• Higher level of agility • Greater level of top-down transparency• Better ideas• Happier employees
Practicing What We Preach
We’ve seen massive increases in:
Overall brand awareness
Practicing What We Preach
We’ve seen massive increases in:
Size of our own audience
Practicing What We Preach
We’ve seen massive increases in:
Flow of quality leads
Practicing What We Preach
We’ve seen massive increases in:
Actual new business
Change and Chaos is Good
Complacency is the kiss of death
Never stop innovating and iterating
Greg Boser
President
BlueGlass Interactive
http://www.blueglass.com
@GregBoser