Elen Lewis talks to Sir Keith Mills about competition, customer loyalty and why he has to start something new every three years
What's the most valuable lesson you've picked up in your marketing career?
Always listen to the customer, but never rely on research alone. Continually invest in the product or service, and make sure that innovation is at the heart of the organisation.
What's the best decision you've ever made? And the worst?
(a) To agree to run the 2012 Olympic Bid even though I had never been to any Olympic Games.
(b) Trying to launch Air Miles simultaneously in the US and Canada.
What brand do you most admire and why?
Google a global brand that’s become generic. A simple idea brilliantly executed.
What's the biggest challenge facing the marketing industry over the next year?
The biggest challenge for the marketing industry in the short term is clearly the global down turn in the economy and the pressure this will put on innovation and marketing. In the long term consumer demand will outstrip the supply of basic commodities.
What achievement are you most proud of in your career?
Leading the team that won the 2012 Olympic Bid in 2005.
Who is your marketing hero and why?
Richard Branson – he’s created a global brand across multiple sectors of the market, on many occasions using other people’s money and very often through innovation and product promotion, rather than traditional medal led advertising.
Tell us something we should all know about customer loyalty?
Firstly, customer loyalty has to be earned by providing great products and services fairly priced. To do this you need to know lots about your customers, who are they, what do they need, what are they buying, how frequently do they busy and how profitable are they. I am still dismayed how little most companies know about their customers, and even more dismayed that most companies deploy the majority of their marketing spend chasing their least profitable customers compared to investing in retaining their most profitable customers.
In an interview with my old magazine, Brand Strategy in 2005, you said every two or three years you've either bought or launched a company. How do you maintain the momentum?
I concluded many years ago that I was much better at starting new companies, launching new products, innovating and creating something from nothing, rather than managing established businesses or projects over the long term. So every 3 or 4 years I start something new, and then find outstanding senior executives to manage the organisation over the long term. I usually remain on the board or chair the company, but rarely run a business long term.
How did your experience with Airmiles and Nectar inform your work with London 2012?
Air Miles and Nectar were start ups based around a strong idea. Similarly the London 2012 Bid was simply an idea. Like Air Miles, and Nectar, at London 2012 I had to bring together a team of people to devise the product (venues, transport plans, accommodation, ticketing etc), build a business plan, package up the product (branding, positioning etc), and finally take it to market. Firstly, we had to persuade the country that bidding was worthwhile and secondly we had to persuade 115 IOC members from 80 countries to vote for London.
The whole country's buzzing after the success of the British Olympics team in China, how are you going to harness this feeling for London 2012?
The biggest challenge for London 2012 is to maintain the momentum following the success of Team GB in Beijing, and our handover ceremonies in the UK and China. We have a huge range of Olympic events and programmes planned over the next four years, starting with the cultural Olympiad this autumn. The media scrutiny of the planning and development of our preparations for the Games will now intensify and will undoubtedly be challenging. The Olympic and Paralympic Games is the biggest event to organise in peacetime and inevitably there will be hitches along the way. However, we have built an extraordinary management team and I have every confidence that by the time we get to 2012 the whole country will be excited and proud that we’re hosting the Games.
How does it change things for you and your team?
The success of Team GB has given us a huge boost, particularly at a time when we are still in the market looking for commercial partners. We have already secured contracts with several major companies, including Lloyds TSB, BT, BA, BP etc, worth over £400m, but with a domestic sponsorship target of £650m we still have some way to go.
China's a tough act to follow. How will London 2012 live up to the example set by China?
The Beijing Games were brilliantly organised and no expense spared to bring the world fantastic sport and stunning Opening and Closing Ceremonies. The London Games will also be spectacular but will have a very different character. It will be fun, accessible and we are intent on ensuring that the whole country will join in and enjoy the sport and the celebrations.
You recently sold LMG. Do you find it difficult to walk away from a business you've launched and grown?
By selling LMG last year it brought to an end for me thirty years of launching and developing customer loyalty programmes all over the world. I look back over the last twenty years with great memories. I worked with some great people, I had a lot of fun and I made a few quid as well. I have sold a number of businesses over the years – I don’t find it difficult to move on as I generally look forwards and not backwards.
I've read that you hate losing. But have you ever lost in anything? And what will you do if you do?
I do hate losing, but that’s not to say I’m a bad loser. I love competition, whether its business or sport. I can’t see any point in just taking part if the object is not to win then I’m not interested. However, most great businessmen and sportsmen will tell you how you recover from a loss is just as important as enjoying a win.
Today all your business interests seem to be in sports – London 2012, America's Cup and Spurs. Is this where you've always wanted to be?
In the late 90’s I made a conscious decision to get more involved in sport, (although clearly not as an athlete), because I love the competition. So I bring my business skills to sport and I really love it. But I’m still investing in start up businesses too, I still love the entrepreneurial buzz that comes from starting something new.