WELCOME TO OUR SEMINAR ON BIG DATA, LITTLE INSIGHT ?

THOMAS OOSTHUIZENGLOBAL CONSULTING DIRECTOR15 OCTOBER 2014

“ALWAYS ON” CONSUMERS GENERATE POWERFUL DATA, BUT DO WE AS MARKETERS USE IT TO CREATE THE INSIGHTS, STRATEGIES - AND LEVERAGE THE MOST APPROPRIATE TOOLS – THAT WILL GROW OUR BRANDS?

- What is digital?

- How – and why - is it relevant to my business?

- What works?

- How much of the budget should be spent on digital?

- Why do so many global multinationals wax and wane regarding social media usage?

- Is digital a high-level business issue - or is it a tactical marketing issue?

- Will very good data frameworks and analytics drive greater results in my marketing?

- How does the new digital landscape impact my marketing department?

- How do we measure real business results (ROMI), not just impressions like Facebook “likes”?

THE DIGITAL ERA LEAVES US ALL WITH A LEVEL OF DISCOMFORT

MARKETING IN A DIGITAL WORLD IS WHEN WE ALIGN OUR BRANDS WITH THE NEEDS, DIALOGUE AND BEHAVIOURS OF OUR CUSTOMERS, TO BECOME ONE SEAMLESS PROCESS WHERE WE CREATE VALUE IN OUR CUSTOMER RELATIONSHIPS & IN OUR BRANDS AND COMPANIES.

QUOTE, SENIOR BRAND MANAGER IN A LARGE GLOBAL MULTINATIONAL COMPANY

“OUR COMPANY IS IN THE ANALOG AGE, YET OUR CONSUMERS HAVE MOVED INTO THE DIGITAL AGE.”

YET, THE NEW ERA IS THE GREATEST POTENTIAL OPPORTUNITY WE HAVE EVER HAD!

DEEP INSIGHT EMPOWERS RESULTS-DRIVEN MARKETING. RESULTS-DRIVEN MARKETING EMPOWERS GREATER EFFICIENCIES IN BUSINESS.

The job of marketing is to “keep”, “grow” and “get customers. Digital marketing is the best tool we have ever had, it takes us back to the origins of marketing.

THE DEMOCRATISED CONSUMER IS PROBABLY THE BIGGEST CHALLENGE THAT HAS EVER FACED BRANDS: ADD TO THIS THE COMPLEX NEW MARKET UNIVERSE.

“CONSUMERS HAVE REALISED THEY CAN BE AT THE CENTRE OF THEIR OWN WORLD.”

CHIEF DIGITAL OFFICER CLUB2014

MCKINSEY CONDUCTED A SURVEY OF 418 SENIOR EXECUTIVES ACROSS THE AMERICAS, EUROPE AND ASIA, MAY-JUNE 2013,

49% OF COMPANIES WHO CHAMPION THE USE OF CUSTOMER ANALYTICS ARE LIKELY TO HAVE PROFIT WELL ABOVE THEIR COMPETITORS.

COMPANIES THAT USE ANALYTICS WELL OUTPERFORM THOSE THAT DON’T:

Profit Sales Sales growth ROI0

10

20

30

40

50

60

Extensive use No extensive use

ANALYTICS DRIVE PERFORMANCE & SALES

Customers

acquire

d

Customers

retained

Customer s

atisfacti

on

Sales to existi

ng custo

mers

Customer p

rofitability

0

10

20

30

40

50

60

70

80

90

FURTHERMORE, INCREASING THE “LIFETIME VALUE” OF CONSUMERS INCREASES THE STOCK PRICE OF COMPANIES. THIS IS TOTALLY DEPENDENT UPON DATA INSIGHTS & TRACKING

From MIT Sloan Management Review, Kumar & Shah, June 2011:

“…using a consumer lifetime value metric (to micro target segments) to allocate the marketing budget and differentiate the marketing strategy helped

both companies maximise their return on their marketing spending…”

“the two companies saw their stock prices increase by 33% and 58% - … substantively above their three top competitors…”

“the current business environment drives marketing to be more of a science than an art…”

“SO HOW?”WE ALL TODAY LEAVE DIGITAL “FOOTPRINTS” IN OUR DAILY LIVES…THIS CAN BE LEVERAGED BY MARKETERS BY FITTING THEIR BRANDS INTO THE NATURAL ACTIVITIES OF CONSUMERS

- We do. We talk. We ask. We cry. We laugh- We interface with brands - We make observations- We get an education- We are entertained- We search for information of a myriad of kinds and a myriad of reasons- We read real newspapers and magazines- We listen to music, on whatever device we choose- We watch television and listen to the radio- We receive post- We buy things- We browse around in stores

AS CONSUMERS, WE LIVE THROUGH THE MOMENTS OF OUR DAY

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

Where consumers and the brand connects, online & offline, usual & unusual places

CONNECTING CONSUMERBEHAVIOUR & BRAND TOUCH POINTS

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

From becoming aware of a need to buying a brand

GOOD DATA = GOOD MARKETING: WE NEED TO UNDERSTAND & CONNECT CONSUMER DATA TO ENABLE THE BRAND BEING THERE ON-TIME, ON SPEC

Knowing where the brand is interfacing with consumers & can

interface with consumers

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

What we know about IMC as well as data tracking behaviour online, there is strong

incremental benefit in being at all touch points

THE BRAND NEEDS A PRESENCE WHEREVER IT MATTERS IN THE LIFE OF THE CONSUMER: THE GREATER THE NUMBER OF CONNECTIONS, THE BETTER

Using own device for assistance tocheck price: 59%; sales associate: 17%*

incremental conversion to sales: using mobile only before purchase: +20%; using mobile

before and after: + 40%.*

*DELOITTE

2014

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

Level of engagement is exponential, meaning that

marketing becomes more effective

THIS ALSO MEANS THAT THE LEVEL OF CUSTOMER ENGAGEMENT INCREASES ALL THE TIME

We focus on the right messages which means that marketing becomes more

efficient with less wastage

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

Better insights into customer behaviour means the brand value proposition improves all the time

THIS MEANS THE BRAND STAYS CLOSE TO ITS CUSTOMERS AND CAN INNOVATE BETTER AND MORE OFTEN

Better ongoing insights into consumer: brand touch points, means marketing

becomes more innovative

CONSUMER BUYING BEHAVIOR

BRAND TOUCH POINTS

Knowing what to measure. Learning what works and what does not. Knowing where

to focus marketing spend

ULTIMATELY, OUR MARKETING PRODUCES BETTER ROI

THECONSUMER’SLIFE

THEBRAND TOUCH

POINTS

COMMUNICATING WITH THE CONSUMER WITH THE RIGHT MESSAGE, THE RIGHT PRODUCT OR SERVICE, THE RIGHT TONALITY, AT THE RIGHT TIME, IN THE RIGHT PLACE.

HOW CONTENT CONNECTS WITH STRUCTURE

5. MULTIPLIER EFFECT:LEVERAGING MULTIPLE CONNECTIONS ACROSS CHANNELS

4. CONTENT & CREATIVITY:IDEA UNIQUENESS

3. SYSTEMS/ APPLICATIONS/ TOOLS

2. DATA ANALYTICS & INSIGHTS

1. DATA STRUCTURE & STRATEGIC FRAMEWORK

AwarenessPerceptionsPositioning/

TonalityTrial

UsageLoyalty

Advocacy

Infrastructural & analytical

development that enables real-time

consumer engagement & customisation

CMO

CIO

Digital technology is part of the business strategy. Digital marketing requires the alignment of all executives. It is not the job of the CIO or the CMO alone. It impacts the business as a whole.

Digital technology connects marketing objectives, with customers and brand touch points.

The foundation of any good marketing strategy is a sound data framework. • Any brand is after all about customers. The value of our brand to them and what they will pay

for it. Now the consumer can demand to be at the centre of our company. • To do that, we need to align their needs with our brand, online and offline. • It is now about real-time marketing, or working towards it. When consumers have a need, we

need to understand it and be there with the right offer.• This will take time, but we need a plan to get there.

Digital transformation needs to connect marketing with the operational systems of the business, i.e. Customer Service, the Call Centre.

SO WHAT DO I DO ABOUT THIS TODAY?

Do not divorce B2B and B2C: it is about how the different brand touch points are managed, interfaces and integrates. They are all part of one seamless process the consumer is exposed to. He or she does not see it as separate things, touch points either build the brand or they don’t.

All engagement must create a seamless brand experience for the consumer, one that will build value for the consumer and for the brand.

Work within the data and planning framework. If not, activities will be anecdotal and your executive team will lose confidence in the process.

As every touch point can now be managed and monitored, we can track performance and ROMI like never before.

For companies, it will eliminate wastage and make marketing investment more results-driven. It will make your marketing more efficient and effective.

DO TODAY:

THANK YOU!

INTRODUCTIONS

• NAME• COMPANY/ROLE

• WHAT IS YOUR ORGANIZATION’S BIGGEST CHALLENGE WITH DATA?

THANK YOU FOR YOUR TIME TODAY, PLEASE JOIN US FOR DRINKS