Liz Miller of the CMO Council – Multicultural Marketing Opportunities

Announcer 0:02

Welcome to the Marketing Technology Podcast. News, tools, and tips from marketing technology companies and the marketers using them. Here's Douglas Karr.

Douglas Karr 0:13

Welcome to another of our interview series on the Marketing Tech Blog. We have with us today, well, we have Jen Lesak, who is our content in charge of all of our client content strategies at DK New Media. Welcome, Jen. Hello. And we have on the line with us, we have Liz Miller, Senior Vice President of Marketing from the CMO Council.

Liz Miller 0:39

Hello, everyone.

Douglas Karr 0:41

And this is really exciting, and we were talking before the show. Liz, I'm really just so happy that you took the time out with us. I think I absolutely want you guys – I want Marketing Tech Blog and CMO Council to be just joined at the hip on sharing all of the incredible information that you guys are revealing.

Liz Miller 1:01

Oh, I love it. Thank you so much, and thanks for having me. I'm thrilled to be here.

Douglas Karr 1:04

Yeah, and Liz, I'm going to go ahead and read your LinkedIn. So Liz's summary on LinkedIn. Liz is a marketing strategist, thought leadership, innovator, and tactical leader of company-wide initiatives that build brand value and result in sustainable, profitable growth. A driver and champion of transformational programs, able to gain executive sponsorship, build internal support at all levels, and deliver exceptional results. An expert in aligning strategy with organizational vision and goals, and interpreting the voice of the customer through enhanced customer insight. Oh, I love that.

Liz Miller 1:47

Who is this person that you're talking about? Because I'm like, wow, she sounds kind of great, but wait, when are you going to read my bio?

Douglas Karr 1:57

Well, you have a great copywriter. How's that?

Liz Miller 2:00

I

Douglas Karr 2:01

love it. I love it. I want to find that person. Let's hire them. And today's talk, this is kind of a little bit of a shift for us, but I was really – when I saw the pitch come through to talk to Liz, for an interview because I think this is so very important, the CMO Council, in coordination with Geoscape, did an incredible, concise white paper on activating – it's called Activating the New American Mainstream. And it's talking about defining, reaching, and engaging the multicultural market, which is something that I don't think we've ever talked about on the Marketing Tech Blog. And not surprisingly, the data shows that that's pretty much the rest of the industry, too.

Liz Miller 2:49

Yeah, yeah. I think you hit that right on the head there. I think a lot of us have talked about multicultural campaigns. Like, if we're really being honest with ourselves as marketers, we've probably all, at some point in our careers, talked about some type of advertising campaign that we wanted to push out that spoke directly to a specific ethnicity or a culture. And the way that we've done that historically – and, you know, again, this might sound really harsh, but it's tough love here – is, you know, we've taken our standard advertising campaign that we have about our product tool solution service, and we have either replaced all the images to be more ethnically sensitive or friendly, or we've translated it into another language, we've pushed that out through our digital channels, and we've all patted ourselves on the back and said, yes, multicultural campaign. And sadly, in this age of customer data and customer relevance, and really the customer working through digital channels to define and craft their own customer experiences their own wants, needs, desires, and behaviors, we're falling short. And I think that what this study really showed was that we get it. You know, I think as marketers, we understand that we're missing an opportunity here, but the reality that we have to face day in and day out is that we've got this mountain of priorities, ironically, that start most often with marketing technology, right? We are so busy taming this beast, this stack that we've built for ourselves, that when we look at our list of priorities, far too often something that really focuses on multicultural consumer engagement does fall towards the bottom of that list.

Douglas Karr 4:35

And some of the stats, I just want to share those, and then Jen, we'll go to you for a question. Does your company currently have a multicultural marketing initiative in place? 51% of companies said yes, 49% said no. And even a worse split of that is when you talk about B2B marketers versus hybrid organizations. 80% of B2B marketers do not have any multicultural marketing initiative in place at all. And 67% of hybrid organizations, B2B and B2C, do have a multicultural. But 80% of B2B, that's a huge market, isn't it?

Liz Miller 5:20

Yeah, it is. It's massive. And I think that the, you know, being a B2B marketer myself, I get where that comes from because I think that there is the assumption that the primary segment that we are looking at is still a business marketplace that we feel that we know and truly understand. But I think that the trend that we are seeing, and I do think that we do have technology to thank and possibly to blame for this, is that more and more the B2B buyer specifier is making active decisions on where, how, and when to engage, research, learn about, talk about their experiences with our brands, our services, and our products. In a way that mirrors the behavior of how consumer markets are engaging with, are researching, are searching for those types of solutions. So if you have someone who is looking to buy a multi-million dollar CapEx size technology buy, and they are, yes, working here in the United States of America, but they are a native Latin speaker. They are perhaps from Mexico City. Let's use that as an example. And if you are not looking at what cultural behaviors, what engagements, what language preference, what types of points of impact and engagement could be influencing that specific buyer, you really aren't getting that full picture of your customer now, are you? You're really just looking at what you are assuming influences an individual buyer specifier. So I understand why B2B marketers haven't necessarily put that foot into the water for a multicultural engagement. It makes sense. However, it's going to very quickly become in a day and age where we have to take culture, and we have to take ethnic behavior and cultural biases into that overarching picture of personalization and into that overarching picture of the customer and not segment it into this kind of weird little silo we call a multicultural campaign.

Douglas Karr 7:26

So you touched exactly on what I was going to ask you about. I think marketers traditionally get into – basically, they're trying to promote the way they think they want to be promoted to, and I'm not sure what the demographics are in terms of B2B marketers. But anyway, my big question for you is do you think as marketing evolves that they will create language that universally will be able to appeal to different cultures and multicultural campaigns, or do you think marketers will continue – will have to kind of segment campaigns to appeal specifically to those different cultures?

Liz Miller 8:15

I think we're going to have to – I think we're going to end up seeing both, to be honest with you, Jen. I think that's a great question. I think that we have been evolving the way in which we communicate across all cultures, quite frankly, across all demographics and all segments, where we used to take one piece of content and kind of shove it out, assuming that that single piece of content could be the same regardless of audience, but also regardless of channel. And I think that we have begun to evolve our sophistication in that. That people don't just want a PDF white paper anymore, right? You have some buyer specifiers who really want to engage via podcast. Perfect example, right? So you've got some people who want to engage on a graphic. They want a picture. They want an infographic. You've got some people that still really want to print out however long your document is and read it with a pen and highlight it. You know, and I'm talking about old people like me. We still want that tactile, you know, experience. But, you know, you also have people who just want to read it in the chart, right? I want the bullet points and I want to be out. So I think that we're seeing with the differences in buying and communications engagement, with that difference in that word relevance, right? It's not just delivering the content that's relevant, but the format and the channel that's relevant as well. I think that as we begin to kind of upstep our sophistication and how we develop those campaigns, absolutely ethnicity and cultural bias will absolutely come into play into that data set that we have to look at to define what it is that we're developing. You know, what is that content? What channel is it being distributed through? And how is it being received by that audience? We very well may learn that the content isn't the challenge. Maybe it's the time of day, right? It's not necessarily the, you know, the picture that shows ethnically similar faces. It could be that some cultures are actually looking for more solutions that speak to efficiency and being able to get people home on time to go spend time with their families, right? That messaging may work better than just saying we want to make you more money. So I think it's about informing relevance rather than creating a different creative front to what we're talking about.

Douglas Karr 10:35

Yes. And again, you touched on something else I was going to mention. Personally, I think multicultural, you know, people can see through if you're putting, you know, pictures

Liz Miller 10:48

of Asian babies on a website. You know what I mean?

Douglas Karr 10:51

Yep. Totally. And the same thing with how we phrase certain things. We have to, like you said, it's about developing solutions that are going to appeal as opposed to just changing language and pictures.

Liz Miller 11:06

Absolutely right. I mean, I think that the example that I always point to that kind of gets people thinking about it a lot of times, and I think it's easy to see how you might change, say, language or understanding that the exclamation point goes upside down. When you know, like it's kind of when you're in that communications campaign mindset, you can say, oh, this is how I need to communicate to a Hispanic audience. This is how I need to communicate to an Asian audience. But time of day might be what is impacting your campaign or your communications. Why would you send a predominantly Muslim audience emails during Ramadan at 1 o'clock in the afternoon?

Announcer 11:46

Are you a marketing technology company looking to increase your market share? Contact Doug and his team at DK New Media for information on their public relations, search engine marketing, and content strategies, including a dedicated show on this podcast. Email info at dknewmedia.com.

Liz Miller 12:03

Right. It's a time period when they're simply, quite frankly, being observant. This is a religious celebration and holy holiday. They are not communicating. They are not engaging with those electronic mediums. They are not working during that time period. It's understanding those nuances and making, again, timing, content, all of that relevant. And the reality is that we have the tools and technologies to be able to help us automate and manage it.

And the way that we have the opportunity to be able to get a button for send, right? So, you know, I think that it's about really using that multicultural lens and using the rich data and information that is out there, that is demonstrating what these buying patterns, what these insights and analytics are, and integrating that into our view of the customer so that we have a single version of customer truth, so that the entire organization can look at Jane Smith and say, this is what I know about her, ergo this is how we're going to communicate with her. And that's absolutely going to include, is there cultural, behavioral biases that are influencing the way Jane Smith engages with our brand?

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Douglas Karr 13:50

And I want to point back to the study, obviously put a link up for people and talk about how to find it at the end of this. But it was interesting on that very note, Liz, some of the findings in this were the companies that did say that they had a multicultural marketing approach. 54% of them did exactly what Jen was talking about, where they integrated all of it into a pooled resource. And 17%, they had one multicultural marketing initiative that combined all minorities. And then only 9% actually separated the marketing initiatives for Hispanic, Asian American, and African American with separate resources and staff for each. And then 7% targeted Hispanic. So you think about that and you think even of the half that say that they already are doing these multicultural marketing initiatives, there's really only about 15% of those. So, you know, that's like 7% total, if my math is right. But that are actually speaking directly to the community with dedicated resources, dedicated research, and dedicated staffs that can, you know, accurately and effectively communicate. That's pretty frightening given the population changes. And

Liz Miller 15:24

given the financial changes, you know, I think that it's one thing to look at just by the numbers of sheer population. It's another thing to look at. I mean, Geoscape has some incredible data around the growth of the buying influence and the buying power of, say, the Hispanic marketplace, where you're now looking at, you know, a single market group that certainly is not representative of a majority in the United States, yet represents the majority of economic growth within numerous sectors. So I think it's about, you know, what you've hit on. And I think it's such an important point is it's not even just that only that 7% are looking at individual ethnic groups as actually independent ethnic groups and individual drivers. The way I saw that was, oh, my God, only 7% are actually personalizing communications.

Douglas Karr 16:14

Yeah,

Liz Miller 16:15

yeah. Right? And that's what it boils down to is that that small sliver there are truly personalizing. Because a lot of people can say that they've deployed personalization technology, but if we're really being brutally honest, how much of that is personalization beyond putting their first name on an email and switching out the email banner to be a more ethnically friendly face?

Douglas Karr 16:39

Yeah. Yeah, that's mind-blowing. And there is a, you know, we're, of course, the marketing technologies, you know, blog, but there has to be a discussion as well of the mediums and how these groups are communicating as well because it absolutely differs from, you know, the average population, you know, habits, right?

Liz Miller 17:05

Absolutely. You know, you're dealing, certainly when you're looking at, certainly Asian American audiences, when you're looking at Hispanic American audiences, you're talking a very mobile consumer. And oftentimes it's prepaid. You know, you can look at the data and you're seeing that a lot of consumers are looking at prepaid accounts. You're not necessarily looking at postpaid accounts. You're looking at people who are very used to culturally consuming content via mobile channels. So, you know, I would, being someone who is half Korean, I can tell you right now my entire family watches Korean dramas on their mobile phones. They've got the big tablet. They're sitting there at their lunchtime watching the most recent drama. They are consuming a ton of content on that darn phone, you know. So it is something that we tend to look at and say, okay, great. That means I should push more advertising at that time when they're watching that content. And that's not necessarily true, right? Because they're watching that because they want, you know, a commercial-free experience. They want it to be easy and quick to download. They don't want to deal with buffering. They will engage with the brand that they love, but they're only going to engage in it in certain places. So, again, I think that these types of cultural nuances can really help form very smart decision-making across marketing to be able to understand not only new markets that you can have available to you, but when, where, and how should you be reaching these markets? Should you be maybe over-investing in mobile, right? Should you be under-investing in, you know, sending more emails out if they're not opening emails through mobile devices? So I think that multicultural marketing and this new mainstream consumer, understanding that we have to work with and speak to each person very differently, really puts us into a position where we have to ask something very different of our data. We have to ask new questions, and we need the tools and technology that can allow us to see those different views based on who within the marketing organization needs to see that view of the customer.

Douglas Karr 19:36

Well, and I think the other interesting factor that I'm not sure if the report touches on this, I don't know if I'm wrong, but actually Hispanic and Asian families are typically have multi-generational homes. So grandma, parents, and kids are all living in one home. And the thing that I think of, like, let's say grandma uses a brand of toothpaste, I mean,

Announcer 20:07

a toothpaste, it's

Douglas Karr 20:09

going to be passed down for generations. Right. And that could, so if you connect with those markets, the potential for having a long-term customer base is probably far more likely than, you know, the white suburban household in, well, Carmel, Indiana. Right,

Liz Miller 20:28

right.

Douglas Karr 20:29

But,

Liz Miller 20:30

you know what I mean? No, you're absolutely right.

Douglas Karr 20:32

You

Liz Miller 20:33

know, and I think that you can even take it a step farther and even say that because of a multi-generational family, you could also be making some horribly wrong assumptions about the search data and about just the insights that you might get from web browsing, because a multi-generational household is likely not necessarily handing out computers to everybody at the door. Right, so you are now dealing with search patterns and behaviors that are going to change drastically from early afternoon to when the kids come home to when mom and dad are home from work to late at night. You know, so one IP, one look at that search data is going to bring you a very wild picture of what this household may be looking at. And, you know, there are going to be, though, cultural biases that are still going to remain true. Very much that rooting in family. You know, there is that idea that you are looking to help families, support families. You know, an organization that I think has really learned a lot and has really demonstrated how much they've learned around cultural issues is MoneyGram. You know, this is a brand that looks to enable families sending money back home. Right? How do they make that faster? How do they make that easier? How do they make both sides of that customer experience relevant for the family who's sending the money and the family member who's receiving the money? You know, does this need to be in Spanish? Does it need to be in English? Does it need to be in, you know, Chinese, Korean? They understand that that family tie and that cultural leaning towards, you know, assisting and sending money back home. And

Announcer 22:18

they

Liz Miller 22:19

understand that. They get what's required there. And they get that both sides of that equation are going to have biases. They get that both sides of that equation are also going to need content that helps them be a more loyal and invested customer.

Douglas Karr 22:33

So I want to go over some stats. And I was quiet there for a second because I was actually reading through some of these and they're pretty fascinating stats. So and these are things that people I just don't think unless you go to like geoscape and you start doing this research. And that'll be my lead in question for you, Liz, is people really don't realize it. So Hispanic households, for instance, spend 17% more month to month on mobile on mobile services. I mean, 17% more. Yeah. Hispanic household spending on college tuition has doubled in the last decade. And the number of bachelor degrees has more than tripled. The number of Hispanic owned businesses has doubled, growing from 1.6 million in 2002 to 3.2 million in 2013. I mean, that's these are these are massive growth. It is. And that's what, you know, I want people to understand is it's it's not necessarily that we're talking about, hey, half the market is this. It's that it's not that it's that while one kind of portion of the market is, you know, have been stagnant over these the economic challenges the last decade. This is one sector of, you know, every community in the United States, basically. Yeah. That has doubled in growth and not just, you know, not just size, but revenue, number of businesses, education, technology usage. I mean, this this is incredible. And yeah, it's

Liz Miller 24:14

one. And one thing in the geoscape data that I thought was so interesting was that, you know, for Hispanic households, Hispanics represent really just 18 percent of the American population in the American household right now. Eighteen percent. Yet that 18 percent is responsible for all that growth you just mentioned.

Douglas Karr 24:33

Right. Right. And so here's my lead in question to you. So let's say I'm either a B2B or I'm a B2C company. B2C, we absolutely see that sense of urgency. B2B, I think there's still the urgency there, but it's a different path that needs taken. How does a company start even thinking or strategizing about how to take its marketing, you know, strategy and start to go down this road? I mean, is this something that they they absolutely have to bring in, you know, partner agencies that that focus in these areas? You know, how do we how do you even swallow this beast?

Liz Miller 25:18

Yeah, I think that's a great question. I I don't think it's going to be one thing or the other. I think it's going to be a combination of strategies and a combination of mindsets that you've really got to be willing to embrace within the organization. I think first and foremost, one of the things that stood out in the study for me was the lack of support that marketers felt they had from their CEO or from their board in really advancing this multicultural strategy and this multicultural momentum. And that's why we see such stagnance there is because we've yet to prove from a revenue language of why these campaigns and why these strategies are so critical for the organization that are critical for the business. I think that when you look at the segment within this data that we talked to that have looked at that individualized, personalized approach for multicultural, they really have been advancing their strategies. You can kind of tie that correlation or really look into a couple of things. They see that the, you know, the organization views this multicultural engagement as mission critical for their brand. It's highly embraced by their CEO and their board. They have that level of support. While we didn't ask this directly, I could probably infer just from what we know about what drives the CEO to say yes is that the reason why this is so mission critical and the reason why they're supporting this is because it directly ties to revenue, right? It directly ties to growth. So I think that one of the first things we as marketers need to do is first off kind of abandon this concept that multicultural mindset, multicultural behavioral data, that insight about our customer is a multicultural campaign. We need to integrate that into our view and our picture of the customer. We need to look at data resources. We need to look at insights and intelligence that are actually enhancing our customer profiles so that we do know what points of relevance we are potentially missing when it comes to how we connect and how we engage. The second thing I think that we also need to be doing is certainly looking at what is it that we are communicating? How is it we are choosing to engage? But also, are we looking at what that customer wants to buy, right? It's not just about what we want to push out the door and the communications we want to push out the door. It's what about these learnings? What about these culturally significant learnings that we're bringing into that customer profile? Can we then turn and share with the rest of the organization? So the point that you brought up in regard to the level of money that's being spent on college education. We need to start looking at this level of college education, the money that's being spent in college degrees. This also can infer that we've got a flood of young, creative, educated, Hispanic youth that are going to be hitting that millennial job market any minute now and are going to be searching and engaging and looking for opportunities in very new and different ways. They are going to be looking to reach and engage with brands that are relevant to them and can speak in a relevant manner to them. So I think it's really about taking that step back, asking ourselves different questions about what it is that we produce and provide and what it is that we are communicating that makes both things highly relevant, regardless of who we're speaking to. Do we have something that really speaks and directs to a marketplace, whether we're B2B or B2C, that takes all of those things into account so that we know that we're talking to that person? We're not just talking to kind of an amalgam or an assumption of the type of person we think we might be talking to.

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Douglas Karr 29:40

And so a first step for any company might be simply to go take their customer database and get some demographic enhancements and show the CEO how much of a percentage is already in that realm, right? Yeah.

Liz Miller 29:57

And I think that you've also got to take, you know, you've got to be able to show what that impact's going to be to your business. And you also need to be able to test and develop campaigns that as you can go and test those, as you can look at behavioral data about these markets and shift and tweak, you know, what that customer experience is going to be like to be more relevant, how is that impacting the bottom line?

Douglas Karr 30:25

Yeah. Oh, wow. We got a, we got a long road ahead of us.

Liz Miller 30:30

We do. We do. And you know what? It is going to keep evolving, but you know, here's, here's the bottom line. Um, we used to live in a day and age of marketing where we could set the tempo of evolution. We could kind of set the stage and anytime we'd make a leap forward, whether it was due with data or whether it was technology, we could kind of be the ones that felt like we were in the driver's seat. So, you know, when web came around, we could kind of say, look what we've done. We've created this really cool experience for you. And yay. You know, we got to be the ones that kind of felt like we were unveiling things to the world. Um, that day is long gone.

Douglas Karr 31:06

Well, like, like you said that, you know, I mean, it's presenting itself to us. You know, these people are now entering the workforce. Now they're getting their degrees. Um, they have larger families, uh, on average. Um, absolutely. And so, so they're going to have a greater consumer buying power. They're going to have more children in the household. They're going to be buying, buying bigger homes, bigger cars, more stuff, you know.

Liz Miller 31:32

Right. And they are driving their own customer experience. Exactly. Right. Because not only are these young people, Hispanic American, Asian American, African American, but they are also digital natives. These are no, this is the no core generation where they understand that they are the ones that hold the digital power.

Douglas Karr 31:52

Right.

Liz Miller 31:53

They are the ones that are starting and stopping their customer experiences where and how they want to. So they're the ones saying, hey, I'm going to start searching for you on my mobile device. And then I'm going to go and talk about you on a social network. And then I'm going to go do this. They're in control of it. We're not in a day and age anymore where we could send an email and we could kind of luxuriously sit around and think that we started a customer experience. This doesn't exist anymore.

Douglas Karr 32:22

Right. Well, for people that want more information on this, if you go to cmocouncil.org and down the left-hand side, you'll see that they have a program section. In the all current programs, you will find activating the new American mainstream. And you can download this incredible white paper. And I would absolutely recommend that you do that. As well, CMO Council, sign up for their newsletter. They have a great news app as well that you can get on Google or in the Apple store to get up-to-the-date stuff. And you guys are worldwide as well, right?

Liz Miller 33:02

We are. Gosh. We kind of feel multicultural half the time. But yes, we are. So we've got seven regions around the world. We're just about to top that 9,000, I think 700 market members. I can't believe it. Wow. But lots and lots of content and lots and lots of things to read. And I think we're partners in crime and being able to bring content and thought leadership out to these marketers, certainly around marketing technology, which I appreciate you guys are really leading the charge on.

Douglas Karr 33:30

Yeah. Well, and this was an eye-opener to us as well. I think we've worked with a couple of international companies and dealt with the challenges from a technology standpoint of internationalization and multi-language. And from a technology standpoint, that is no small feat for any company. And so I think we're going to do a lot more down those roads as well. Well, and we have to do it right in our own backyard, right? I mean, right, you know, we talk about spreading to other countries and overcoming those challenges. But the problem is that those challenges are right here at home, you know, per these, you know, studies.

Liz Miller 34:13

Yeah, totally agree. I mean, sometimes it's not easy to, you know, spread across your own state, let alone outside your own country. So there's lots of nuances and lots of, you know, lots of nuances, but gosh, lots of opportunity. And I think that's the coolest thing for marketers right now is that, you know, I think, and probably your listeners and you guys feel the same way. It kind of feels like this infinite space of opportunity right now. And it's just a matter of can we ask our data new questions? Can we interrogate things differently so that we can come up with that kind of highly relevant new experiences that our customers already have in their mind is expecting?

Douglas Karr 34:52

Well, thank you. Oh, geez. And you are, you must be a hard person to slow down.

Liz Miller 35:00

Yeah. It's all smoke and mirrors, my friends. All smoke and mirrors. Smoke mirrors and caffeine.

Douglas Karr 35:08

Well, I cannot thank you enough, Liz, for taking the time on this. And like I said, we will follow this up with, once we get the podcast up on the blog, we will put a ton of information there where you can download this. Liz, where can people, you know, follow you and listen to you online?

Liz Miller 35:27

Well, I'm on Twitter. So it's at Liz K. Miller on Twitter. Also, you know, certainly through the CMO Council, absolutely happy to connect with anyone. All of our information, we're pretty transparent. Right there on the CMO Council website. So we'd love to hear from people and happy to connect anytime.

Douglas Karr 35:47

And, you know, just in a quickie, the benefits of membership with the CMO Council?

Liz Miller 35:54

Yeah. So membership is open to corporate side marketers, senior marketing decision makers. Membership is free. We believe in social currency. So for members who qualify, all we ask for in exchange is your insights so that we can create like this that are based off of what we refer to as our peer-powered network. So that's the type of social exchange we look for. And we're really thrilled that we've got, you know, nearly 10,000 members that are happy to share their insights and experiences with us. So membership, all the criteria is right there on the website. So CMOcouncil.org. And, you know, hey, we're happy to get participation. We'd love to see if, you know, your folks qualify. It'd be great to hear from you. But our content's accessible to anyone. So even if you don't qualify for CMO Council membership, you can gain access to our executive summaries and our white papers and certainly our Twitter feeds anytime you'd like. So we'd love to hear from you.

Douglas Karr 36:49

Perfect. Thank you so much. Jen, any final thoughts? No, this was fantastic. Thank you so much for your time, Liz.

Liz Miller 36:58

Absolutely. Absolutely. Anytime. I was thrilled to be here with you guys.

Announcer 37:01

Thank you,

Liz Miller 37:01

Liz.

Announcer 37:03

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