Transcript
WEBVTT
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There's a ton of noise out there. So how do you get decision makers
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to pay attention to your brand?
Start a podcast and invite your ideal clients
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to be guests on your show.
Learn more at sweetphish MEDIACOM. You're listening
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to be tob grows, a daily
podcast for B TOB leaders. We've interviewed
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names you've probably heard before, like
Gary Vanner, truck and Simon Senek,
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but you've probably never heard from the
majority of our guests. That's because the
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bulk of our interviews aren't with professional
speakers and authors. Most of our guests
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are in the trenches leading sales and
marketing teams. They're implementing strategy, they're
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experimenting with tactics. They're building the
fastest growing BTB companies in the world.
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My name is James Carberry. I'm
the founder of sweet fish media, a
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podcast agency for BB brands, and
I'm also one of the CO hosts of
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this show. When we're not interviewing
sales and marketing leaders, you'll hear stories
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from behind the scenes of our own
business. Will share the ups and downs
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of our journey as we attempt to
take over the world. Just getting well,
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maybe let's get into the show.
Welcome to the BTB grows show,
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the human to human segment. I
am Carlos so Dalgo, chief strategy officer
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for demand JEN, author of driving
demand in the American dream, and I
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am also the host of the human
to human segment, Hashtag H to h,
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for the be to be gross show. And today I have a longtime
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colleague, longtime friend. He and
I go back to our days at BMC
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and mark, I think there's always
a six degrees of separation from BMC software,
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as we've discussed early. Yeah,
but I'm going to ask you to
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introduce yourself. So, Mark Stews
Code, are founder of proof analytics,
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CEO and just killing it from a
start up perspective. So mark, introduce
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yourself to our audience. Well,
first of all, it's just great to
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see you again and really happy to
be on this having this conversation with you.
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You know I mean. I'm a
communicator turn marketer, turned business leader,
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turned CEO of a software start up. Right my life is a metamorphosis
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and then some. And essentially what
proof is is we have automated marketing,
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mixed modeling, we've automated regression analytics, putting the power that has existed for
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thirty years in the fortune five hundred, but very expensively and kind of incrementally,
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and we have a harnessed it to
the power of automation and now we're
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we're off for the races in a
really big way. I mean marketing mixed
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modeling has been the goal standard for
Understanding Marketing Rli for a long time.
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I mean it is the application of
advanced regression analytics to the marketing business equation.
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It is one of those things,
though, that the cost of it,
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the difficulty in scaling it and the
slowness of delivery of the analytics has
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kind of kept it a rarefied discipline
in the fortune five hundred for a long
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time. So you see a lot
in retail, you see a lot in
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B Toc. You have not really
seen it a lot in BTB until just
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recently. Part of that is the
availability of data has exploded in B Tob,
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but also they're just people are starting
to realize that multi touch, attribution
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and a lot of the other things, while they have a purpose and and
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they deliver value, aren't you can't
use them to decide how much money you're
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going to spend and where. Yeah, and that's a really interesting viewpoint.
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Not why, it's one that I
agree with, quite frankly, and I've
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talked about a lot with some of
the clients that I've had over the years.
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So when you were talking about that
data, we were talking a little
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bit before we came on air about
the relationship. It's more than just the
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data, it's the relationship that the
data has to the business. We were
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talking about the dollars, but you
too, you hit on something that's near
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and dear to every CMOS heart and
every marketers heart, is the allocation of
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budget. And you and I both
have been in meetings before where there's a
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lot of emotion that can go around
in a budget meeting. So how are
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you right now seeing that data that
companies are using, fortune five hundred,
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mid market otherwise, and saying,
Hey, we're going to actually use this
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to shape our behavior as a company? Where we spend, what we spend
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on, how we spend it?
How are they stewarding the budget, which
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is something that marketing people don't talk
a whole lot. So give me some
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flavor on that that you're you're seeing
in your clients and some of the best
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practices that you've been able to encounter. Well, I think that. I
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think that the issue is that the
data is really important, without doubt,
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right. The analytics without data is
like a gun with no bullets, right,
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I mean it's just not going to
do much for it. However,
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data is by itself a static measurement. That's it says this happened at this
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time, full stop. Right.
Can You? Can you repeat that again,
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because I think that's so important.
When I read Oh, it's all
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about the data, say that statement
again because I want everybody to hear that.
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Sure. So the bottom line is
is that it's really important, but
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it's a static measurement of something that
happened at a certain time and a certain
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place and it doesn't tell you anything
about why it happened, how it happened,
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what else might have impinged upon it
or made it happen. It just
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says this happened, and that's important, but is in no way the end
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game, right, and so this
is why we can talk about KPI's and
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it's relevant, but it is in
no way the final solution to the problem.
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The final solution is all about the
fact that really what we're talking about
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here is not static. It's dynamic
and relational. It is. How did
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this thing impact this thing over here? And you know, a big part
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of this, particularly in B tob
but also in B Toc, is the
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issue of time lag, the fact
that when you make a marketing investment,
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you put something out into the market
place, it does not have, for
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the most part, an immediate impact. It is there is a delayed effect.
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And then, so let's say that
that you do something and there's a
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delayed effect on the beliefs in the
mentality of your audience, and then so
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that took that took a while to
happen, and then it's going to take
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more time for them to translate those
changing beliefs, those changing understandings, into
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action in terms of buying your product. So at Honeywell Aerospace, where I
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was CMO, the time lags were
months for the most part, because we
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were talking about a very long business
cycle to begin with and we were talking
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about audiences that change their views very
slowly and carefully. This was a function
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of risk and risk mitigation, which
is kind of a dramatically underdiscussed topic and
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be to be as a rule,
but it is what it's the reason why
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sale cycles and be tob are what
they are, right. I mean more
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than fifty percent of it is risk
mitigation and due diligence on what the vendor
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is saying. The vendor is actually, after a certain point in time,
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the source of the risk. Yes, so, so it's so fight,
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you know, coming back full circle. You have to you have all this
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data that represents this universe that's swirling
around, right, and you have to
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be able to associate that data and
say, okay, this is the outcome
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that we were striving for. These
are the ten things that we were doing,
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hopefully to have an impact on this
end game. WHAT'S THE STACK RANK?
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Right, the most powerful, second
most powerful, third most powerful,
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net of time lag. So really, this is actually, I mean,
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a great analogy here for everybody is
if you have a K and you manage
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it and you're called upon by your
employer from time to time to re balance
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your for one ky, it's the
same idea, right, you are rebouncing
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your marketing spin based upon what is
actually happening out there in the marketplace.
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So it's definitely not the bit,
it's not the Bitcoin of marketing, because
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I'm hearing so let me ask you, because you said something that is,
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I think, is really important because
I hear this from marketers all the time,
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the pressure from the sea suite to
show immediate results, and I oftentimes
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I just got on the phone yesterday
with a colleague who said I'm just getting
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I'm getting hammered and they've been in
the role for forty five days. So
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how should marketers use the data that
they have and again, whether or not
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they have a system like prove for
anything, to show and prove to and
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actually educate? I believe the sea
level that marketing is not a wishing well.
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We don't drop a coin in wish
for something and all the sudden leads
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populated and our revenue grows. How
are you seeing or how do you advise
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your customers a proof to use the
data to educate, because it really is
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that pressure in a lot of organizations. No, it's a huge pressure.
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And so I was I was in
a Gbr not too long a ago with
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a brand new customers that this customer
had ingested some data into proof, but
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basically they were totally the beginning of
the process right, and I had I
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had met with the CMO go ahead
of time and I had told him I
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said, look, you know,
if you go in there and you this
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was their q two. If you
go in there and you're comparing your Qto
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to the sales leaders qt, this
is not going to work. Well,
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this is just not going to work. I said, I don't know what
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the time lag is, but there
is a time lag in your business and
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that this is just going to be
dangerous. So sure enough, you know,
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he had his own plan. So
he stood up, he delivered his
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grand and glorious marketing summary For q
two. Sales leaders stood up and delivered
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it. You know, pretty much
a really tough report out and he ended
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up by saying, and once again
we see marketings report as evidence of how
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disconnected from reality they really are.
Wow, right. So I raise my
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hand in the in the in the
back of the room and I say,
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Hey, you know, I'm marks
to some with proof analytics. Right,
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I think that actually, this is
a this is not representing what's actually happening
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here. And so we talked about
time lag, we talked about the fact
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that that marketing impact and sales impact
are asynchronous across time and space. And
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then, if you it's one thing
to kind of know this conceptually, and
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I think that a lot of people
do know kind of conceptually, but if
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you can't say this is the timeline
and this is the point in the calendar
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where you're going to see the results
from this, you're going to have and
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so we I actually, I mean
you want to talk about high wire act.
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I mean it was kind of where
I rushed in, where angels here
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to bread and finally importulate. But
I pulled a proof on their big screen
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and I did a real life demo
with their data right there, not knowing
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what the answer was going to be. Right, right, sure enough.
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Right, marketing and sales are separated
by about five quarters. So I said,
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marketings q two had absolutely nothing to
do with your qt. Right.
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Nothing. Well, right, your
your Qtwo was impacted by the previous what
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que, a year and a border. Right, and I said so,
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there is no hey, you know
what, we're halfway through the quarter.
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We know we need marketings helped pull
out this quarter. That's just not happening
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in this business. In some businesses
you could, because the cycle time is
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tight enough, but not in this
one, and there's many other make it
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right where the die is cast.
And so one of the things that this
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means in many be to be marketing
organizations is that the risk on their sin
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is back in loaded, and so
that means that they won't know for a
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long time really what unless they have
analytics, unless they're running regression right,
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they won't know whether they're even on
track. You have a good outcome right
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in five quarters, and so you
have to this is where regression become so
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critical. You know, it's the
it's the early warning system. Right,
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it's hey, you know, this
is the track we're supposed to be on,
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you know, but we're actually down
here and it doesn't look like things
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are going to get better. So
maybe we ought to kill this thing early,
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before we have spent every last time
in the budget on this, right,
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because probably not going to get better. Yep. So this is a
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that's a really important statement here.
And you're not going to get that same
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level insight from the raw data that. That's not my opinion. That's just
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a mathematical fact. Now, and
I agree with that, and that's,
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you know, to me, data
without context is just data. So one
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of the things I hear, one
of the pushbacks I hear from CMOS,
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svp's marketing, whoever, whether they
agree with you or not, oftentimes you
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hear yeah, but we're built to
be a data science organization. Or,
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you know, there's there's so much
data we don't even know how to begin.
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or The you know, we look
at the numbers and they don't tell
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a story. So what kind of
skill set really, just at the human
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level, are you seeing? To
say, it's one thing to show a
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dashboard, it's another thing to know
the story, about the backstory and then
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the future story of what that Dashboard
is showing. So what kind of skill
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set are you seeing? Whether it's
from a marketing organization? I've even said
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go, go partner with your bi
group. If you can't figure it out,
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what do you see in in the
market right now that marketing teams are
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doing to enhance that skill set?
Well, it's without a doubt it is
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always a collective solution. So if
you know, you can go out and
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hire ten PhDs and data science and
they will absolutely know how to crunch your
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data, but they will have no
domain knowledge right on your business or marketing
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or anything else. So there's a
term and data science that essentially gets to
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the heart of this problem and that's
packing pacting. It is running all kinds
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of correlation and regression analytics without a
thesis, without an understanding, without any
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domain knowledge, you're just kind of
like everything against everything and we're just going
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to kind of look at what pops
out right. And there is actually a
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time and a place to do that, but not on a regular basis.
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And so the flip of that relationship. So so the the data scientists need
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the marketers in the business people to
help guide them, them to help all
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the right models to answer the right
questions. That's the essence of that.
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The marketers and the business people need
the analysts to do this work or they
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need software to help do this work
right, because they don't have a freaking
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clue most of the time how to
do it right. And even though I
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mean this is this is kind of, you know, funny. It's cool,
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but it's also funny. So I
was just named, much to my
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great and enduring surprise, right one
of the top ten most influential analytics leaders
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in the world for two thousand and
twenty that congrats. Yeah, no,
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and and it is really cool,
but I am not a mathematician. If
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you ask me to do this,
I would bust right. It's kind of
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like when you and I were at
BMC I could talk about data center automation.
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I was totally fluent and all that
stuff, but if you put me
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in a in a data center and
said turn it on, I would know
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how to turn it off exactly.
I wouldn't know how to operate it,
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right. I mean all I am
as an empty suit at that point,
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right. And so, but my
skill set is actually in being able to
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listen to the data scientists and I
know enough about their world to ask the
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right questions, to listen to the
marketers and listen to the business people and
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kind of bring it all together.
So I am a professional con Sumer of
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analytics. Right, I'm a I'm
a kind of a little bit of a
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maybe even a connoisseur of analytics from
the standpoint that I'm very just you know,
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I can differentiate, I can distinguish
and I know kind of what is
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the best thing to use in a
particular situation. So I don't ask anymore.
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I used to do it all the
time, but anymore I don't ask
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a lot of dumb questions, you
know. But that's really what makes me
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an influential analytics leader. It's not. I mean, I'm in there the
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other nine guys they're all phds and
data science, they're all mathematicians. So
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it it's sort of like one of
those things where you just kind of go,
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okay, right, I'll think they're
yeah, I'll take it all day
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long. So from a market or
perspective, who is sitting there? They're
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saying, yeah, I'm not.
I always I kind of make a joke
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to where I say, Hey,
sucked at mass so I got into marketing
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right. But from that perspective,
you're in a whether you're an enterprise or
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mid market or an SMB, you're
still going to have the CEO who's saying
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that's kind of how I got into
the business I'm in. As my president
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said, I gave you a dollar. What are you turning back for it?
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If you can't figure it out,
your replacement will. Where can they
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start to not that they've got to
go get their PhD in analytics, but
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where can they go to find or
what steps would you recommend for them to
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say at least get to that connoisseur
level, because when I see people going
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we do dat a driven marketing,
honestly it makes my teeth hurt because I'm
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like do you? Yeah, I
really. If anything, the so the
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main reason why I think you hear
so much about data driven is that it's
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a littered alliterative right. It's yeah, but if anything, you should be
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analytics led, not data driven.
I like that and that's really the deal
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they're now in terms of the way
forward. I think the number one you
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have to begin to understand the language
of business, which is numbers, it
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is finance. It's not necessary for
you to become an accountant, right,
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but at BMC and at Honeywell,
I rotated all my teams wherever they were
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in the world, through a local
finance for non financial managers class. You
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know, most universities, most colleges
have that. You know they it's really
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important, right to have a basic
fluency in it. The other thing we
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did was we rotated everybody, particularly
at BMC but also at Honeywell, through
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sales enablement training, sales training right
the week long. You know, Mosh
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pit from Hell, you know experience, because it really gave all my guys
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a lot of knowledge, a lot
of understanding, a lot of empathy and
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a lot of great relationships with sales
teams. That then became really important.
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Now last thing is, and this
is actually one of the things that we
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discovered, certainly a year to two
years ago, with proof, is that
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you can't really show up in the
marketing analytics space or even other like HR
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analytics. You can't really show up
as a pure sass offering and be successful.
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There's just not enough skill and capacity
and capability within these organizations to run
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it and people are going to get
frustrated and it's just going to kind of
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suck. Right. And so,
even though we had built this beautiful automated
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Sass Platform, we came to conclusion
that we had to deliver it most of
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the time. We had to deliver
it as a man is service, and
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people really like that, even if
we're very mature already. So they didn't
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need help. They were like,
you mean, I can have you run
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this for me and it's just cost
me a little bit extra and that means
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my guys can go do other things. They took that in a heartbeat.
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Right. So I think that that
is right now. And we you know,
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you'll remember this at BMC, right
it service management huge dirty curve.
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Right, this is the same situation
and people are strung out all along this
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curve. And so, as a
former CMO, right, I mean running
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this business, the one of the
things really important for us is segmentation.
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Right. So who we should be
really talking to right now, because we
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can't afford to talk to everybody.
But that said, right, you have
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to nurture in some way, shape
or form, the entire curve, because
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its people come up the curve and
they are ready for something like proof,
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it becomes really important that they know
about you. Right. So last thing,
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the last thing I just say about
this, real quick of course,
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is that it's really important to understand
how this all evolved. So people are
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doing all kinds of marketing and PR
and all this kind of stuff for years
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and then, beginning about twenty five
years ago, they came under significant pressure
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to for the first time, to
prove stuff, hmm. And so all
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they need to do, given the
state of Technology and state to the world,
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right, is to begin to measure
things. And so they were just
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measuring that, which they were doing
at the time, right. Yeah,
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that is colored the mindset on this
whole thing for agents. Right. The
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reality is is actually that that's you're
starting at the wrong end of the pole,
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so to speak, if you start
there. The place that you really
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have to start is one am I
seat? What is my CEO, my
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CFO, my business leaders? What
do they want to know? What of
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their top end questions? Those top
ten questions will spawn one or more models.
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So these are analytical models. These
are sort of think of it is
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that your hypothesis of how you think
things are adding up, how they're impacting
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each other in to achieve something right
that they're interested in. Once you have
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the model, you have to instrument
the model, and that's the data right,
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but you're usually not. You're most
of the time you're using maybe twenty
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percent of the data that you've collected
overall. So all, there's a lot
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of data that you're collecting through measurement. That is sort of maybe not something
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you should be collecting too much longer. I mean it's very expensive to do
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that. So move you know,
this is a process of reverse engineering.
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You starting with what the business wants
to know and you just kind of move
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through the process of scientific discovery,
which is really what undergirds all this,
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and you say, okay, now
I've got them, I got my question
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that I have to answer, I've
got the model which theoretically is going to
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provide the answer, I've got the
data in the model and now I can
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hit compute and it's going to give
me an answer and then I'm going to
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say, Huh, I wonder if
I can make this an even better model
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by introducing some additional data for it. Kind of perspective. You know,
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we're going to create a different model, we're going to explore that. That's
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really be the way that this works, right. So it's not a bottoms
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up, it's a tops down,
not organizationally, but water the tops down
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and then once you fill in all
these blanks tops down, you hit compute
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and it comes right back up to
the top. And in the end what
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you're really trying to do is you're
trying to say, okay, this is
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how I'll shook out, this is
what's really working, this is what's not
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really working. We're going to stop
doing that, we're going to do more
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of this and we're going to take
all that we're going to plug that into
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our planning and budgeting for next time. And that you've got the full loop
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right, the full life stuck right. So you said something about tops down
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and let me give you my perspective. And then you also likened to the
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its, the mental Idsm the IT
service management, that we worked on a
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BMC when we were both there.
Yeah, I would. I would say,
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and I'm curious to your thought,
that this is we are at a
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point, especially in B to be
where this is an imperative that marketing groups
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get their arms around. And here's
why. A stat from Mackenzie that's at
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over eighty five percent of CEOS are
now looking at marketing as a growth driver
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and only twenty three percent are saying
you're actually meeting that mark. So if
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I am a marketing executive, that
is my ocrap moment to say, Oh
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so if I'm going to go talk
to my CEO, that's a conversation that
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I'm going to have. Of I
can't walk away going wow, we just
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we can't do that. CEO's are
already we know they're looking for growth,
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we know they're looking for revenue creation
from marketing. So our am I being
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too much of an alarmist here,
or it's truly an imperative for marketing groups
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that and executive that actually want to
survive and thrive? Absolutely, and I
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think that what's happening right now.
So this is March, the fifth the
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market dropped nine hundred fifty points today, righting the gains from yesterday. High
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volatility, great uncertainty, increasing fear. You're going to see, even if
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you don't see a true economic correction, you're going to see a correction in
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the mindset of business leaders. Yep, and you're going to start tightening it
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up, and they're already starting to
tighten it up. Yes, and so
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if you are be to be and
your impact is obscured by time lag to
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begin with and by the complexity of
the business you I'm just going to be
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super clear on this, you cannot
measure your way out of that hole.
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It is just not happening. You're
right, just not. I'm not trying
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to be difficult and I'm not I'm
not trying to be false alarmists. Right,
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it's just talked to the data scientists. They'll say the same thing.
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Right. So you're going to have
to start using regret, because you're going
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to have to understand the relationships between
everything that you're doing and everything that business
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care is about and everything in between. You're going to have to understand the
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time lag so that you can calibrate
expectations. You're going to have to deal
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with budget cuts that you cannot peanut
butter right. That's going to work anymore.
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You're going to have to identify what
is really secondary and tertiary priority in
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your marking Spin and you're going to
have to whap that so that you can
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really preserve and even strengthen the stuff
that's most important. And if you don't
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use regression, you will not be
able to know what that is for a
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fact. I mean that's just again
the truth. Yeah, you won't get
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pushed back here and it's it is
amazing to me when I see CMOS and
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executives and marketing actually run from this, and I'm my thing just in all
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the data and even in the CEOS
that I speak to. You need to
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be running towards it. You need
to embrace this and yes, it is
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a massive sea change. To your
point, when you said twenty five years
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ago, I had visions of Jeff
Honeycomb in my head saying what do you
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I've given you this much money.
How much did you return back to the
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organization? And we did have to
say, you know, what we put
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in today is not going to produce
tomorrow because we have a sales cycle or
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a bicycle in that enterprise. That's
nine to twelve months. So if we're
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not investing now, you can expect
that hit to come later down the road.
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That's right. So here's the other
thing that really plays into this,
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and you just touched on it,
right. The sales contribution, right,
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is linear. Yes, if I
hire a certain point in the maturity of
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the company, I know that if
I hire two more sales guys, I'm
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going to get x amount more revenue. Yep, and it's going to happen.
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I mean there's certainly a there is
time lag there. There is not
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only time lag in the deal,
right, but there's also time lag in
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bringing a sales rep from being unproductive
to productive. Right, right, but
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it's not you know what it can
be from a marketing perspective. HMM.
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So it's what's actually amazing is how
much marketers have gotten absolutely right just by
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intuition. Yes, so, for
example, one of the things that you
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hear a lot and be to be
is consistency matters. That is actually really
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true, but they don't necessarily know
why. The reason why it matters so
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much is that the time lags are
so significant that if you've got a lot
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of oscillation like this, it's just
going to whip saw through your extended impact
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right and it's just going to be
weird. It's just not going to work
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right. So you would be better
off actually having a lower spin than you
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would ideally like. That is pretty
much locked in and what you do with
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it based on what the analytics are
telling you changes. Yeah, no,
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agree, agree, a hundred percent. You know, I I could literally
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sit and talk about this stuff.
My kids always tease me that I geek
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out on on the this marketing stuff. Obviously, mark, you're really passionate,
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but we are at time. So
before we wrap up, where can
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listeners find out more about proof analytics? Where can they find you? I
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know you do a lot of speaking
as well, so just give them some
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of that detail. Sure, absolutely
so. Proof analytics. Dot Ai is
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the website. So proof and then
analytics and then dot AI. My twitter
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is at marks douice. The proof
analytics twitter feed is proof analytics. So
396
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you can find me there. You
can certainly find me on Linkedin. On
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very active on Linkedin. Sure,
a lot of content so and I also
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I do get around. In fact, you know, in about a week
399
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or so I'm supposed to be at
south by. We're just doing you know,
400
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but I'm we're trying to figure out
whether that's actually going to happen now.
401
00:31:48.019 --> 00:31:51.539
Yeah, that's up in the air
as of this morning, especially with
402
00:31:51.619 --> 00:31:56.779
IBM and twitter and others pulling out
absolutely and, and you know I mean
403
00:31:56.220 --> 00:32:00.099
talking about human to human, right. I mean, there's nothing in my
404
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business that's worth me getting sick or
anyone else getting sick. Right, so,
405
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right, so I may hunt for
that reason, but we're just trying
406
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to kind of figure it out right
now. All right. Well, mark,
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thanks so much for sharing your time, sharing your knowledge and experience.
408
00:32:15.880 --> 00:32:19.640
You know, while we did work
at BMC, we actually reconnect it of
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00:32:19.640 --> 00:32:22.400
all places, if you remember,
and a United Club Lounge and Chicago.
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00:32:22.920 --> 00:32:25.119
That's right. We just know we're
like, wait a minute, out of
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00:32:25.200 --> 00:32:30.430
context that I know that guy.
So I'm thrilled that that Sarendipity occurred and
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00:32:31.349 --> 00:32:35.990
just that we're friends and it's been
almost twenty years that you've put up with
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00:32:36.069 --> 00:32:37.990
me. So thank you so much
for being a guest. This is going
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00:32:38.029 --> 00:32:44.539
to be a rap on the BB
gross show. Tune in for podcasts like
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00:32:44.779 --> 00:32:49.740
this and many other thanks to mark
and his entire team and go check them
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00:32:49.779 --> 00:32:57.900
out at proof analytics dot AI.
I hate it when podcasts incessantly ask their
417
00:32:57.980 --> 00:33:00.369
listeners for reviews, but I get
why they do it, because reviews are
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00:33:00.490 --> 00:33:05.569
enormously helpful when you're trying to grow
podcast audience. So here's what we decided
419
00:33:05.650 --> 00:33:07.369
to do. If you leave a
review for me to be growth in apple
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00:33:07.450 --> 00:33:13.400
podcasts and email me a screenshot of
the review to James at Sweet Fish Mediacom,
421
00:33:13.720 --> 00:33:16.039
I'll send you a signed copy of
my new book, content based networking,
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00:33:16.279 --> 00:33:20.359
how to instantly connect with anyone you
want to know. We get a
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00:33:20.400 --> 00:33:22.839
review, you get a free book. We both win.