This is the first in a two-part article series, featuring the topic of the Payments by Results remuneration structure. This article is entitled 'Prove your Value'. The article series will conclude next issue with 'The Climate for Success'.

The August 13th National Post article entitled 'Show me your worth' illustrates how marketing firms such as MYRIAD are responding to the demand, moreover mandate for increased accountability and responsibility towards driving bottom line revenue in favour of the clients they represent. Sophisticated analytical database filtering and campaign management technologies such as those employed by the Closed Loop Marketing™ process, allow for the tracking, nurturing, evolution, and retention of customers.

Payment by Results (PBR) is a system of remunerating Marketing/Advertising firms, whereby a fixed or standardized type of payment is used to cover the agency's costs and an agreed minimum level of agency profit. This base payment is in turn subsidized by a goals and objectives reward, based on a sliding scale. A customized pre-determined system of measure designed by the client and agency in tandem is used to assess whether goals have been met or not.

Payment by Results is not seen as solely a mechanism towards goal-based remuneration but moreover a working methodology linking performance to its analytical measurement and commensurate reward. At the heart of the concept is knowledge sharing for the mutual benefit of the client and marketing partner alike. It is proven* that the more aligned and clear the objectives and goals of the client, the more integrated the supplier is to these objectives and strategies, and the more the supplier is rewarded based on achievement of the objectives, the more effective and cost efficient, is the work provided by the partner.

Based on this proven research the following findings are self-evident:

• Most often, Marketing Services firms are also committed and enthusiastic supporters of their client's business interests.
• The trend towards PBR has been motivated by the demand for ongoing improvements in productivity, fostering greater commitment, encouraging better communication and improving the overall quality of work, both client side and agency side.
• The association of performance-based measurement with remuneration is not new. It has become widely practiced in a broad range of business activities, striving for increased accountabilities.

In return for a Payment by Results relationship the benefits are multi-dimensional, as follows:

• Increased productivity and quality of work.
  
• Better mutual understanding of goals and corporate cultures, and subsequently more succinct understanding of shared interests.
  
• Greater cost efficiency and accountability on both sides of the relationship.
  
• Increased ability to attract top of class talent to the assignment, given long-term goal alignment and commitment.
• Overall improved effectiveness of Marketing Communications
  product and process.

However, for a PBR relationship to succeed, both parties must be prepared for compromise and a change of mindset. The following factors must be in place:

• Full support and sponsorship at the most senior levels of the client organization.
• Existence of, and agreement on the measures to be used.
• An acknowledged understanding of the Marketing Team's contribution to the achievement of the Client Organization's business goals.
• An environment of partnership and trust between the client and the agency.
• A clear agreed understanding of the roles, responsibilities and accountabilities on both sides.
• Goal alignment between the Marketing Department and other parts of the Client Organization.
• Goal alignment between the Client and the Marketing Services firm.
• A broad client understanding of the marketing firm's business.
• A deep agency understanding of the client's business.

A successful and effective integration of Client and Agency interests requires alignment of the remuneration system. This more entrepreneurial style of partner relationship may not be for all clients, but for those who commit themselves to making it work, the payoffs in a significantly improved marketing product and process are substantial and realized.

* Statistical references garnered from an industry survey report, Marketing Magazine July 2001.

For more information on PBR, write to chris@myriadinc.com

"Those businesses that relegate themselves to the diminishing world of goods and services will be rendered irrelevant. To avoid this fate, you must learn to stage a rich, compelling experience."
from The Experience Economy by Joseph Pine & James Gilmore

I visited the WWWebster Dictionary Website to check the definitions of a couple of words. Here's what I found:
Conversation: an exchange of sentiments, observations, opinions, or ideas.
Monologue: a long speech monopolizing conversation.

It's a funny thing. This incredible age of electronic communication has made face-to-face interactions more important than ever. In the wide realm of digital communications, customers still look for that reassuring personal contact, an elucidation or affirmation of the standard, service and support your company will provide. And in the face of ever-increasing competition, a rapport-building approach can be the differentiator to message retention and brand loyalty; a communications stance that focuses on initiating, maintaining, and improving conversations with consumers, in place of the old-fashioned advertising monologues of mass media: a tactic by which to put a human face to your brand.

Like MYRIAD's method of 'edutainment', whereby information, interactivity and entertainment are combined to convey your message as ultimately memorable, it's the experience that customers remember. By imbuing the experience with your message - be it a face-to-face interaction, an event, or a targeted guerilla marketing tactic - you can ensure more retention in your audience, better meet your company's communication goals, and kick-start results.

This is not to say that your face-to-face communications will eliminate the need for wider-based messaging. Today's digital resources can play a strong role in making these contacts even more effective. Directing visitors to the web for a stated deliverable provides:

• Another point of contact and communication with your customers/prospects (increased frequency = increased brand equity)
• A venue to continue the dialogue and build momentum with valuable information or offers available only online
• A persuasive forum by which to gather valuable information about customers and prospects, and input into preferences and trends, which will aid in developing and fine-tuning future communications

For customer contact opportunities such as tradeshows or conferences, the web also allows you to offer your audience a level of convenience and efficiency they'll appreciate. Maps, introductory information, speaker bios and other compelling content will serve to preempt and promote the event, providing both practical and value-added information, not to mention opportunities for branding along the way.

Driving customers to the web as the next step to your face-to-face interaction can ultimately mean a more solid relationship. The information you are able to capture about your customers means that your next interaction will be more informed than the last. One-to-one disciples proclaim that marketers, who always want to move more product, can get instant feedback, near-perfect information, and deeper insights into the habits, feelings, likes, and dislikes of their often elusive customers, when they support their initiatives on the web. No longer should we witness the mass-market economy's unproductive fashion of managing commercial relationships, too often mired in guesswork on the part of the seller and frustration on the part of the buyer.

As Charlie Parker said, "Music is your own experience. If you don't live it, it won't come out of your horn."

For more information on face-to-face marketing write to amy@myriadinc.com

If you had asked someone two years ago about webcasting, chances are the discussion would have been relatively short. It's a solution that, like many others, has experienced staggering technological growth over the last 24 months.

Nowadays, virtually everyone has at least seen a webcast, if not participated in one. It's a technology that has grown up, and is now not only viable, but in many instances, a preferred way to communicate with an audience.

In simple terms, a webcast is the broadcast of media (audio, video, graphics, text) over the Internet or Intranet. And its simplicity and effectiveness is making it more attractive to companies every day.

Whether live or on-demand, it is a media rich environment that an audience not only watches, but experiences, thus better understanding and retaining your message.

So what are the uses for this burgeoning technology? Chances are they are as varied as your needs may be. For any organization, large or small, effective and frequent communications with employees, customers, investors, members or partners is the key to success. Webcasting can save time, money and allow you to compete more effectively by extending your reach, conveniently and economically, to the widest possible audience via the Internet.

It also allows you to effectively share your corporate communications in a way that can motivate your audience and strengthen your company in today's dynamic marketplace. Sales and marketing presentations, employee communications, training, even conventions and tradeshows can all take advantage of this truly unique one-to-many communications tool.

Webcasting can even offer you insight into your audience. Because this medium is Internet based, many of the web tools that you may already be familiar with are at your disposal. Know your audience size at any moment, how long they watched, what they watched, what player they used, what operating system. By analyzing this data, you can see what is of interest to your viewers and offer more of the information that your audience wants.

Including live chat areas, audience polling and links to other information as it pertains to your event can significantly enhance your webcast initiative.

This great tool has evolved, allowing for flexibility and cost savings that many of our clients are now taking advantage of. Implementation…it's as easy as a phone call.

For more information on webcasting, write to roman@myriadinc.com

What does your organization stand for?

Now is the time to get back to basics and rediscover our core values. What's important to your company's clients, customers, staff, and stakeholders? The tragic events of September have highlighted to us all, that life is too short. This translates into a value shift from accumulation to rationalization. Forward thinking companies are asking, "What is important to our customers, and how can we align our organization to that meaning?" Some organizations are going even further, to develop what is meaningful to their company, and incorporate those findings into a values-centred marketing program.

The 2001 Cone/Roper Corporate Citizenship Study (www.coneinc.com), which surveyed Americans in March and October of 2001, documents a major shift in attitudes and values towards corporate responsibility:

• 79% of individuals believe companies have a responsibility to support causes (up from 65%)
• 88% state that during an economic downturn, it is important for companies to continue to support causes (up from 71%)
• 89% say that companies should tell them how they are supporting causes (up from 73%)

As people seek meaning in their lives, those organizations that best communicate their brand values can provide assistance. Some have called this trend the third wave of marketing: the Social, Spiritual or Ethical Selling Proposition. There are more products and services available then ever before, and media saturation and audience confusion continues to grow. Values-centred marketing can enable companies to illustrate their core values through support and collaboration with charities and other not-for-profit entities.

People are currently overloaded with choice and yet have never been better informed. More and more individuals are seeking to learn what's behind the products and services they purchase. Research continues to illustrate that people in affluent societies are looking for ways to meet their higher-order needs, put something back into the community - and they will pay for this opportunity. Purchasing a brand that supports a cause that consumers are interested in is the easiest way to achieve this level of relationship. The root here is a symbiotic benefit of both the corporation and the cause. This is what sets the action apart from a traditional charity program.

It is important for marketers to get this right! Programs that are ill-conceived, where there is no synergy between the brand and the chosen cause initiative can be ineffective, or even worse backfire. Astute marketers will incorporate a values-centred approach to selecting a cause, and then leverage that support through the appropriate marketing channels. The development of a values-centred strategy can add a unique and crucial dimension to an organization's brand profile and marketing communication activities.

Happy holidays.

Contact baron@myriadinc.com for more information on Values-Centred Marketing.

MYRIAD recently launched its new Website featuring an important repositories of information on relationship marketing. The new revitalized look-and-feel compliments MYRIAD's recent re-branding initiative and demonstrates the true power of Closed Loop Marketing™.

Launched in September 2001, myriadinc.com is designed to showcase MYRIAD Web design capabilities as well as to help organizations "understand MYRIAD's competencies in building brands and optimizing customer relationships, says Baron Manett, MYRIAD's Director of Strategy and Client Services. "By showcasing our capabilities using actual case studies - from concept development to creative design and execution - we can help clients and prospective clients quickly determine the potential of integrated marketing for their own businesses."

The site includes information relevant to relationship marketing. Visitors can search the site by specific marketing need and by particular MYRIAD expertise.

"We think of our site as our calling card on the Internet, a place where marketers can quickly and independently turn to find integrated marketing solutions, " says Baron. We recognize that organizations need new ways to communicate. Through the site, organizations have a point of reference for what we can do for them."

If you are seeking a 'concept to execution' provider of integrated marketing communications solutions that can optimize your brand performance, then check out myriadinc.com.

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Watch for the latest on Payment by Results (PBR), Closed Loop Marketing™, Multimedia Communications, Cause Marketing, Creative Design, Sponsorship Marketing and much more, all in upcoming issues of in the loop.

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