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Ryan Buchanan's Blog

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It's that time of year again when Inc Magazine comes out with its list of the fastest growing, privately-held companies in the country.  We are stoked to make the INC 500|5000 list for a third consecutive year - I get really reflective and nostalgic of how far we've come as a company - very proud of our team.

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This year, we achieved #1,876.  It's hard to believe that we have grown 169.7% over the past 3 years.  Actually, it's not that much of a stretch - we've worked our asses off to do great work and push the ball forward.  We were also awarded #30 in the Portland Metro Area, we share the list with others like EthicsPoint, R2C Group and even Papa Murphy's International.

 

The top 10 ranged from advertising & marketing to logistics & transportation but the business who earned the crown was insurance.  Miami's Northern Capitol Insurance topped the list with 19,812.2% growth and $95 million in revenue.  Their business model changed from one of accommodating a more narrow margin of well-off home buyers to one that was focused on managing risk for large groups of re-insurers.  The foresight to change their path greatly helped them achieve the #1 company status.  Another great example of working to the market was #3 Harley Stanfield.  They used a model of sustainable housing and flexible ownership for the unstable housing market.

 

This September 24-25, I'll be in Washington D.C. at the Inc. 5000 Conference - I know some friends of mine from Brass Media and Ethics Point will be there.  How about you?  Let me know if I'll see you there.  It's my 3rd time going to this conference and get a ton of value from it every year.  I highly recommend it.

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When I first started writing for this blog, it was called "Email Days" and featured lots of examples of everyday emails, highlighting the importance of email in our every day lives, not just touting email marketing only.  So, I thought I'd go back to my roots a little bit and tell you about an email a friend sent me last night.  He is an avid cyclist and knows I like cycling as well, despite the fact that we both mainly commute to work by bike and don't get to do long rides very often as our weekends are consumed with raising young kids and different kinds of activities then biking.  He sent a link to the video below, which is filmed in Portland, Oregon, and really captures the humor of two different types of cyclists - hipsters vs performance.  This is one of the funnier videos I've seen in a while and is very close to home, literally and figuratively.  Enjoy.

 

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eROI Can Wrap Too

Posted by Ryan Buchanan Aug 25, 2009

Now we may not be as blessed in the rap department as Crispin but that doesn't mean we can't wrap with the best of them.  Andy, one of our designers, decided to go away to get married over the first weekend in August.  Poor guy had no idea that with separation anxiety in full effect the eROI team banned together to give him his biggest wedding present yet, his own desk.  The team wrapped everything - his functioning phone, his fancy tea maker, random cords on his desk and even the papers on his magnet board.

 

Andy's reaction to his newly redesigned space was pretty priceless.  Watch the video below keeping in mind that in the beginning he is standing right in front of his desk and somehow fails to look at it while the rest of the design team is gawking at him in disbelief and anticipation.

 

 

 

Moral of the story.  Your desk isn't safe on vacation.  Consider yourself warned.

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The YouTube video from Crispin interns has been circulating through agency e-zines and word-of-mouth email for the past week or more.

 

 

It made me think about the wacky stuff that free labor at other large agencies come up with and here's what I found off of a Google Search:  Crap - I searched and looked at dozens of intern videos with no sound or no humor.  Maybe Crispin nailed this better than I thought. There is opportunity for other interns to take their spin on it.  This also proves that online video still needs a lot of content - there is very little out there and much much smaller amount of quality.  As for interns at eROI, we love 'em.  Not sure I want to task any of them with spending 100's of hours putting together a rap video.  Your thoughts?  Next post...wrapping paper gone wild experiment in the office (video and pics to follow)...

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Publicis just got a little bigger as it outbid the other agency conglomerates to take Razorfish off Microsoft's hands for a mere $530 million.  I haven't had a chance to ask any longtime Razorfish employees how they feel about being traded as frequently as a baseball card, but I can't imagine that it fosters a lot of loyalty to the company. Microsoft bought Razorfish's parent company, aQuantive, for $6 billion or 10x revenue just 2 years ago, and is now shedding the business units it doesn't want (Razorfish) for 1.4x revenue, which says a lot about software company valuations vs. agency valuations.  On reflection, I couldn't be happier with the type of independent culture Portland agencies have.  Portland's largest agency, Wieden + Kennedy, is the world's largest completely independent agency and was named Global Agency of the Year last year - any coincidence that they best creative work comes from an independent agency?

 

Check out the full article here >>

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Over the past few months, a lot of what our team has been speaking, writing, and studying about relates to the philosophy that it's okay to fail, as long as you are able to learn from it and, in the end, come out achieving success.  After reading our latest study "Use of Testing in Email Marketing" - which concludes by saying "if you're not failing, you're not learning" - I began thinking about how, as an entrepreneur and  business owner, it was extremely important for me to embrace this philosophy early on and realize that it expands to every aspect of business.  I'll be the first to say it, failing isn't fun! Doing so however, can be enlightening and isn't something you should fear. If you fear failure, you will likely refrain from taking risks and experimenting with new ideas that can ultimately move you ahead.  I have gone through the "fail, learn and improve" process numerous times and each time I've learned more about it. One such lesson is that sometimes "the fail" isn't always obvious. The below video is comedy and not relevant to my particular FAIL, but it's a Fail Video worth watching.

 

 

 

There are times when the big FAIL sign isn't held up to alert you, "the fail" is often something you have to keep an eye out for. This eye-opening lesson came upon me in early 2007 when eROI was going through a big transition period accompanied by lot of growing pains. Going though this period certainly made me stronger as a leader, us stronger as a company and created a culture where my employees have a stronger voice and a bigger influence in the ongoing success of eROI -it however was an emotional and professional journey to get to this point and one that I actually documented in a 5 part blog post back in the summer of 2007. If you are so inclined, the entire series can be found in the eROI Days archive for you reading pleasure but to sum it up:  

 

The Fail

 

I had assumed that I was connected to the thoughts of each employee and each department because I had a hands-on management approach and frequently interacted socially with my employees.  I assumed that the agency was well aligned internally and that that everyone was happy, felt valued and felt they had a voice, both on a project level and within the agency as a whole.

 

As I began preparing material for a company retreat, I scheduled short one-on-one meetings with all of my employees where I encouraged them to be candid with me. Through 34 one-on-one meetings over 3 non-stop, emotionally draining days, I learned how wrong many of my assumptions were. Here are a few specific learnings.

 

The Learnings

 

As a business owner this particular "fail" taught me...

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  2. Keep your eyes (and ears) open for "failures" and when you find them... admit them, learn from them and quickly take action to implement change.
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  4. Never assume that informal socializing with employees is good enough. You must regularly meet one-on-one with your employees in a professional, confidential environment where true sharing is encouraged and rewarded.
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  6. If given the opportunity, your employees will let you know when the company has fallen out of alignment. If this happens, get their opinions on how improve and let them know you are listening by sharing their suggestions with the whole company.
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  8. Take a hard look at what and how much you delegate - you may feel like you've handed over a substantial amount and given up a lot of control over your company - but often you actually haven't. If you want your company to soar, embrace delegation on every level and truly give key pieces of control to your employees.
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  10. Get advice from other entrepreneurs. I was fortunate to have co-founded a group, called Starve Ups, of 18 founders of high-growth startups and I received a lot of trusted advice from the trenches. Additionally, I am part of another group of advertising agency owners called Agency Owner Roundtable which is run through the Portland Advertising Federation. Both of these groups gave me pointers of real-world experiences on employee advice, branding advice, and strategic direction that I couldn't get anywhere else.

 

The Results

 

Here we are 2 years later and as an agency we've come a long way from the above "fail". We have seen some awesome changes, implemented great processes and overall, better aligned ourselves internally to cultivate better communication, collaboration and creativity.

 

The "Process Team" we created in the summer of '07, with a representative from each department, continues to be an integral part of implementing ongoing improvements to our process - both between and within departments as well as between us and our clients.

 

My employees have a voice - and they use it! Although many are comfortable speaking up when they feel there is reason to, we've made it a semi- annual practice to schedule a day of one-on-one meetings where employees are encouraged to meet with not just me, but anyone on the management team, and candidly talk about what they're loving, hating, or frustrated with (i.e. processes, projects, or communication breakdowns). Following these meetings, the management team meets to review and discuss new strategic and performance related goals, as well as create an action plan for any needed change.

 

On a daily basis I am impressed and inspired by the level of work our team continuously produces as result of the open, collaborative environment we've created.  Of everything that resulted  from this particular "fail" my favorite remains this personal one - As a business owner,  I get an enormous amount of pride and satisfaction seeing my employees being truly passionate about eROI and seeing their continuous ability to reach new levels of synergy as a team, resulting in the accomplishment of work I never thought possible.

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We, at eROI, just released a survey study called “Use of Testing in Email Marketing.” You can download the full study here - http://idek.net/Kxk.  In our last study, Use of Analytics in Email Marketing Campaigns, we showed email marketers how important metrics are in making decisions and proving campaign ROI. One major opportunity to improve metrics and strengthen brand positioning with potential customers is to optimize email campaigns through consistent, careful testing. So, in our newest study, we show how 623 email marketers are currently using, or not  using, testing to improve their email marketing efforts.  One of the key takeaways of this study is that 4 out of 10 marketers are not testing campaigns - but why aren’t they? And for those that are testing, what elements are being tested and what can we learn from them?

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Some stats from this study at a glance:

• 37% aren’t testing

• Of marketers that don’t test their email campaigns, 33% say it’s because they do not know how

• 27% say they don’t have time

• 13% say their platform doesn’t have testing capabilities

• For those that are testing, they are testing a wide variety of elements including design, frequency, calls to action and day/time sent. Our survey shows this breakdown for email content testing: 85.2% test subject lines, 54.8% test calls to action, 50.9% test designs, 49.1% test copy, 41.7% test offers, 36% test timing of campaigns.

• The survey showed that 36% of marketers are testing timing, which includes day of week, time of day, and frequency. Although history shows that results on the most successful time and day are constantly changing, here’s the latest trends:

• Time of Day - 37.86% of marketers testing timing are testing time of day. Of those, 49.4% currently find sending mid-day (10am-2pm) to be best, while start of the business day (6AM – 10AM) showed to be second best at 31.5%

• Tuesday ranks as the most successful day, followed closely by Wednesday.  Let us know what kind of insights you get from the new eROI Study Report -

Use of Testing in Email Marketing

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Lovefest 2 - Motivation

Posted by Ryan Buchanan Aug 20, 2009

There's nothing like a few, good quality testimonials to re-charge your optimism and give the extra motivation to kick it into high gear for the day.  Here are a few that have me psyched about a full-throttle week coming up:

 

I have worked at three agencies that have completed successful interactive engagements with eROI: McMillan, Copeland Communications and iSoftStone. In all three instances, eROI provided great ideas, good counsel, and most importantly a solid understanding of the agency’s very unique needs, based on the marketing campaigns being created for our clients. They were able to help strategically and tactically (implementation) and were proactive in thinking ahead to possible road-blocks for ideas that we wanted to bring to life, and more importantly looking at solutions to problems before we knew they existed. They cleared understand the unique needs of agencies and that will continue to serve them today and in the future.  If you have any specific questions in regard to the engagements and why eROI are able to provide strong value in agency/client engagements, please feel free to contact me."

- David Sly, iSoftStone

 

 

eROI’s work on Arboria.com has been integral in turning our brand into a crowd pleaser. We have transformed from a primarily dealer-centric existence, to a touchy-feely existence that consumers want to buy direct."

- Mario Alfonse, Arboria.com

 

eROI is a company that gets it. They get customer service, so they hire outstanding account teams. They get that not everyone speaks tech-ese, so they know how to articulate web functionality to a “normal” person. They get that customers don’t want to be told “you need to…”, so they listen to what you want and work hard to deliver it. I have been very impressed with eROI’s ability to translate my sometimes vague “I wants” into a great campaign website and SEO strategy that upped our web presence by several degrees."

- Laura Wieking, Credit Union Association of Oregon

 

Email plays a key role in our integrated marketing programs and EROI has been our email software provider for over six years. eROI offers us two critically important services: 1) an email system that is easy to use for program deployment and campaign tracking, and 2) email marketing insights and guidance that has helped us to create highly successful client and agency programs."

- Peter Levitan, Citrus

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Dawn Foster just sent out an awesome Flickr slideshow done by Aaron Hockley. I'll figure out the iframe work-around to get the embedded slideshow working correctly when I get into the office tomorrow.  As I was sitting next to fellow current, current, and former eROI teammates Dylan, Summer, and Garrett, I couldn't help but commenting on all of the things that Portland creativity, informality, and general vibe offer that you simply can't find anywhere else. For example: I would never see a toddler or infant at a late-night business event on the East Coast where "ear muffs" are needed in many of the presentations. I doubt other cities have women crescendo into near-real orgasms over vegetables during a presentation. So, to start off my twitter stream from the big Ignite6 night, I'll pick the one that sums it all up - "What's great about portland? So communal - techies bring kids to the event, casual, real, accepting, creative, inspiring." Here's the rest of my tweets:

 

# James keller on being a hooker in rugby. Great lessons, entertaining #ignite6 

 

Eva - brilliant thinking   

 

Authority - like librarians - its about what's real   

 

Anything happens at #ignite6 - veggies an aphrodisiac

 

Ice cold swim after sauna - shrinkage can be an issue #ignite6   

 

Sauna cleanses you inside and out #ignite6   

 

After intermission - sauna etiquette pres, #ignite6

 

# Kgw - lesson 1 - be careful who you call a hipster. Epic fail. At #ignite4

 

http://ohac.org - getting kids insured   

 

Healthcare presenter - diy - ducttape your broken finger, mental stuff, manage risk. 1 of 6 americans don't have health insurance      Pet your dog at shoulder, not on head.   

 

Pet your dog at shoulder, not on head   

 

Treat your dog like a dog, not like your inner child #ignite6   

 

Bridget talks about how you can stop shitty little dog syndrome. Like junk-scratching in public   

 

The turk was a machine in 1734 that beat chessmasters of the day ( actually a man hidden in the machine)   

 

@magicseth is up now #ignite6   

 

Myofacia - gotta learn good posture to optimize muscle memory in your body   

 

Chris espouses mindful commerce in last slide - love it - thinking of @sevenplanet   

 

Chris doing presentation on being a gentleman - great delivery   

 

Multi-touch acquarium app on display table - art coming to life 

 

Microsoft display costs 17k, todd's team create display table for 1k and do it 2 weeks #ignite6   

 

Todd - presenter 1 - multi-touch display like iphone   

 

Startupalooza is oct 10, #ignite7 is nov 12   

 

What's great about portland? So communal - techies bring kids to the event, casual, real, accepting, creative, inspiring   

@ignitepdx, very simply, I love portland.

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I came across a New York Times article the other day that told the story of Howcast.com.  The site features how-to videos done by the  Howcast team, aspiring film makers and average YouTube video users.  Video isn't exactly new to the internet but their unique brand of specific short how-to's on topics such as "How to Survive a Bear Attack", "How to Look Great in Photographs" and, yes, "How to use Twitter" create a new niche in the video market.  Howcast has had solid success with clients who are primarily in the Business to Consumer market.  They know it takes more than their own site to create an internet destination and have been smart enough to quickly sign "deals with the likes of Google, Facebook and Hulu to spread their videos across the Internet."  They have integrated sharing through Facebook and you have the options to copy and customize embedded code similar to YouTube.  Ads have also been added to some videos and there is talk of making products pertaining to certain videos available for sale.  At this point Howcast.com is a fun and informative resource and could potentially have B to B clout.  For the tech and software world, it'd be cool to experiment with emerging products in this forum but expecting big results at this point is a little premature.

 

Read the rest of the NY Times article »

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Chad White wrote an eye-opening story about the real ROI in email.  The raw return is not being measured in the traditional sense.  Having a ROI of $43.52 is killer, but the fact that the real number may be closer to $103 is astounding.  Devoting more budget towards email is the smart thing to do.  It should put a smile on your face to know that when you are tracking your data the numbers are higher than they first appear.

 

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Even online, where it's easiest for email marketers to track the path of subscribers, we're not getting credit for much of the action that our messages drive. That's because 33% of permission-based email recipients say they usually visit sites directly, instead of clicking on an email link, according to Epsilon. This means conversions may be undercounted by 50%.

Taking into consideration the action that email drives offline and directly to Web sites, email marketing's ROI is probably closer to $130 -- about three times the DMA's estimate. And that's clearly ignoring email's ability to drive interest and actions in other channels like catalogs and social networks.


Email Marketing's ROI Probably Closer To $130 Than $43.52 By Chad White  Read the rest of the MediaPost article »

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OMS has been touring the country to spread the word on online marketing the right way.  On June 29th, OMS set up in Portland for a day full of expertise.  I brought something back from every speaker and got to watch. eROI's own Alex Williams did a great job of breaking down the value of a good welcome email for the crowd. Here are some of my other notes from the event:  Aaron Khalow started the event off with key points like 63% of website visitors who don't find what they are looking for will never come back.  It makes a strong case for optimizing your site.   He stressed that your website is your foundation but it won't matter unless you have the tools to encourage people to find it.  The three pillars were search - with SEO having the largest impact, email - the fabric that holds it all together, and analytics - customization is key.

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Ray "Catfish" Comstock, from Business Online, went deeper into some of these subjects. He illustrated a search cycle that went from ranking to repeat customer.  Ranking - [SEO] → Traffic - [Landing Page Optimization] → Conversions - [Marketing and Sales ]→ Sale - [Customer Service] → Repeat Customer  Why is ranking so important?  90% of traffic happens on the first page of search engines which means you have to be in the top 10 results to have a chance.  Like Khalow pointed out, analytics play a huge factor in how you get to the repeat customer.  Finding out what keywords are relevant is extremely valuable, personalization and location are both key components.  Other strategies Catfish brought up were optimizing video, news and the use of internal linking.  These techniques are effective because there is a lot less competition than with traditional searches.

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Recently eROI launched the newly redesigned SpiritMountain.com and with it an exclusive case study.  The re-invention of Spirit Mountain Casino's online presence made it possible to achieve the marketing, sales, and customer engagement goals of their organization.  With a more organized layout, new functional elements and fresh content, it kept visitors interested and connected. These improvements raised Coyote Club signups 31% while turning more SpiritMountain.com visitors into Spirit Mountain Casino guests.  Our team had a great time with this project and Spirit Mountain was psyched with the results.  Learn how we did it and see the drastic before and after in our new case study.

 

 

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No Guts, No Glory

Posted by Ryan Buchanan Jun 19, 2009

The Portland Creative Community took some bold steps with its launch of the Portland Ad Federation Rosey Awards website themed "Nothing Says I'm Better than you Like a Rosey."  The messaging has an East Coast directness to it that takes many Portlanders by surprise in a city that fosters friendliness to strangers, foes, and friends.  However, I think it's the perfect time for Portland to step up and talk with confidence about its creative talent here.  Yes, we've recently been discovered by the NY Times, Wall Street Journal, and other publications as the destination for hipsters (employed and unemployed) to hang out.  But, we aren't getting much positive press for having the second highest unemployment in the country.  Now is the right time to shout from the roof-tops that Portland creative agencies do kick-ass work! Kudos to Anthill Marketing for the concept, design, and messaging in the site and entire Roseys this year!

 

2009 PAF Rosey Awards site

I'm not so sure this site would work in most other industries as it is definitely edgy, controversial, and provocative, but I think it's a shot in the arm that Portland needs.  The true test is to see if agencies from other cities take notice.  Then, an interesting dialog will begin.  You'll start to see this campaign promoted more on Twitter (I love the "Rosey Smack Feed" section of the 'Win Tix' part of the site), Facebook, and other blogs in the upcoming months.  I've got to sign off from this blog post to think of some good Smack Talk myself -

submit your own here >>

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I met Tom Szaky, barely 25 years old at the time, and a pure, scrappy, entrepreneur's entrepreneur, at the 2007 Inc. 500 conference in Chicago.  He spoke before keynote President Clinton and was clearly the more engaging speaker of the two (a pretty tough feat considering how dynamic Clinton used to be). Tom, born in Hungary, grew up in Canada, and dropped out of Princeton to start "The Coolest Startup in America" called Terracycle where every product and its packaging is made out of garbage.  His story is fascinating and the lessons business leaders and public policy-makers can learn from his success are significant.  The irony for Portland, one of the greenest cities on Earth, is that most business leaders and policy folks had never heard of him and were quite doubtful that some young kid would be any good as a keynote speaker at the wildly successful Greenlight Greater Portland annual event - thankfully, Tom proved them wrong with an excellent presentation of how to win by innovating and by being greener, better, AND cheaper.  I don't have his presentation electronically, so until I get it, you'll have to settle for the YouTube video on his Good Morning America and Oprah appearances six weeks prior.

 

 

The fun part of the day came later when Portland entrepreneurs John Friess (Wired.MD, Journey Gym, Seven Planet), Josh Friedman (Eleven Wireless, NedSpace), Martin (Climate Prosperity Portland, Formos) and I had drinks with Tom Szaky - it wasn't your normal night of casual conversation over a beer.  We took a detour to NedSpace and watched Friess give a straight-faced demo of his prototype product Journey Gym while the four of us were heckling him (at 10pm with a few drinks in us).  The evening continued at next-door bar Lotus where we all brainstormed various products to make out of used toothbrushes, sun glasses, and dozens of other waste streams that could now have innovative uses once they've been separated from the rest of garbage before they get to landfills. Most off-the-wall idea: make kid-wagons out of compressed, used toothbrushes.  Friess - you're going to need to explain that concept a little better to me now, because it sounded so good Thurs night.

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