Today’s Ad Industry Innovator is Jake McKee from Ant’s Eye View.  Talk about a niche, these guys get customer engagement like Picasso gets painting.

The founders have very diverse backgrounds: Jake McKee built his reputation playing with Legos and Sean O’Driscoll in a company you may have heard of in Redmond, WA called Microsoft. These guys are bright.  They’re insightful.  Ant’s Eye View occupies a place in marketing that’s not only unique, but 5 years ago, wasn’t even talked about–now every company needs to be listening.  The voice of your Customer demands to be heard.

Ant’s Eye View recognizes that as companies grow, often they unintentionally detach from the customer relationship and miss out on crucial conversations happening about their brand.   Through grassroots, online and offline collaborative processes, Ant’s Eye View helps companies engage with those customers by developing strategies that identify, address and leverage those conversations.

What was the aha moment when you realized “our company needs to be doing things differently than we have been?”

Actually we’ve developed our company specifically around the aha moment! Our team has been doing customer engagement work for a combined total of something like 40 years. We get that this customer engagement stuff is the path to amazing business success and customer loyalty. When Sean O’Driscoll left Microsoft and when I left LEGO, it was because we saw that so many of those companies and agencies talking about this stuff had never been on the frontlines of customer engagement and we thought this “in the trenches” understanding was important to share.

What books are on your nightstand or great blogs on your Google reader?

Well, selfishly, I just got my first copy of the 10^th anniversary edition of The Cluetrain Manifesto, where I had the extreme honor of being asked to write the afterword. On top of that, I just got a review copy of Angela Connor’s 18 Rules of Community Engagement. It’s an exciting to book to have gotten in the mail: small, tactical, and smart.

Give me an example of marketing you think is brilliant and why.

One of my favorite examples, an example that makes me just giddy with excitement is the new and much written about Skittles.com. I once had someone ask me “how do we create community and social media for a particular soda pop?” At its core, the question was really about an agency trying to understand how to pitch “social” to clients. But the problem with the question is that soda pop in itself doesn’t have much inherent social interest. Marketers can work hard to create some type of inherent value, but what Skittles realized is that it would be smarter to simply highlight the conversations, interest, and inherent value already being created by their customers. Replacing nearly their entire Web site with a floating nav item that links to Wikipedia articles, YouTube videos, and a Twitter search. Brilliant. It’s the most compelling CPG Web site I’ve seen to date. If I meet the person that sold this into the organization, I’m buying them a drink for work well done.

We’ve all read that the pitch / RFP process is broken.  Many agencies aren’t even interested in competing in pitches.  Do you see an alternative to this process?

I do agree that the pitch/RFP process is broken in today’s marketing climate, but not for the reason so many agency people talk about. The agency focused argument is one that goes back years, well before the rise of the Social Web: pitches are little more than free spec work that allows clients to get far too much for free and agencies to deal with too much risk.

From my perspective, the problem is that the pitch/RFP process work happens almost entirely void of true strategy development activity. When developing strategy, and certainly strategy work around social engagement immersed marketing, you want to have a better understanding of your customers by first engaging. Listen first, generate ideas second. But a pitch to get business is inherently based in ideas. Certainly agencies are doing research, often expensive research, but that misses a great many opportunities for the client. My work at LEGO had me listening for 6 months to adult fans who were angry that the company had ignored them for decades. After joining fans in basements, classrooms and restaurants to hear their concerns, not only did I learn, but I proved to them that the company was honestly interested in knowing more about how to serve and work with them.

How can that happen if your ideas are being largely generated as a means to first win the business?

What does the agency of the future look like?

I don’t know what it looks like, but I know it has to have a new billing model. In my opinion, traditional marketing agencies will only be able to move to a place where they can more effectively help their customers understand and plan for a more social customer experience once they figure out how to charge for the time that that takes to do. We’re not talking about limited, specific campaigns anymore. Or at least not those alone. But agencies are setup to bill against that model, and it’s nearly impossible for them to effectively teach rather than implement.

What do marketers need that agencies are not giving them?

An agency that is happy, both in approach and in billing model, to train their clients to not need them after a reasonable period of time. Today’s marketing and agency culture is based on the fundamental principle that the bigger check the brand writes, the less work the brand’s marketing person has to do in the daily grind work. When headcount is a core metric of a division’s success, writing checks, even big checks is easy but hiring is not. Unfortunately that simply doesn’t work in today’s environment. When I talk to one of my favorite brands, I don’t want to talk to their agency, I want to talk to the employees of the brand. Agencies have traditionally existed to take the load off the shoulders of their clients, but today they have to be switching to helping their clients learn techniques and tactics for being able to better engage, to scale that engagement, and to support the daily grind in a way that helps build internal competency.

I’m not suggesting that agencies don’t have or shouldn’t have long-term clients. My suggestion is that agencies large and small should be working with their clients “teach, learn, own” model. Once the client owns the project, the (hopefully and expected) success will drive a more complex project that will start the process over.

Oh, and to be clear, I’m talking about marketing agencies, not advertising agencies. There is a often forgotten difference between the two and sadly they’ve gotten mixed up into one concept when we talk about this stuff.

Who do you admire and why?

Easy to explain, hard to name. I really respect and enjoy meeting the practitioners at brands that are doing this social stuff every day, toiling away in relative obscurity. You may know the “social media experts” who blog and twitter and speak constantly, but do you know the folks at H&R Block who are convincing a company working in a highly regulated industry to get involved in Second Life? Do you know who convinced Skittles.com to give up thousands of dollars of Flash development and replace it with Social Web content? Do you know who at Alaska Airlines is the face behind the official twitter stream? If not, you should find out. Those are the true experts, the experts you can learn from.

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A blog post I read today about the fate of agencies in a digital world sent me scurrying back to my bookmark of the Cluetrain Manifesto I had saved years ago.  

This slideshare I also found will pretty much give you the gist; because if there’s one critcism I’ve heard about Cluetrain, it’s that they could have made their points more succinctly.  This slideshare does that brilliantly.

It reminded me what a forward-looking document the Cluetrain was.  Interesting how it means even more now than when it first came out.  Could it be that so much of it has come true?

What do you think?