Redefining Business Models in a Post-Penguin World

Post on 08-May-2015

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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.

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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