ORM - Digital Transformation in Travel and Transport

Simply strategic – The new grammar of marketing Mark Hopkins | Version 1.2 | 10 February 2016

My talk

Because of digital, marketing has more meaning

It’s the skilful pursuit of understanding and monitoring customer behaviours

It’s about creating insight-led strategies that move a business forward

This session is about how to side-step the obstacles that stop your marketing firing

It’s about why engaging with customers means doing research, and supporting business objectives

It’s also about how to get the most of your agencies

And, finally, why you should never under-estimate the art of story-telling in getting people’s attention

| © 2016 ORM | Private & Confidential

“Digital is the main reason why over half of the businesses on the Fortune 500 have disappeared since 2000”

– Pierre Nanterme, CEO, Accenture


“Marketing strategy has the fundamental goal of increasing sales and achieving a sustainable competitive advantage.

“It includes all basic activities in the field of marketing that deal with the analysis of the strategic initial situation of the company and the formulation, evaluation and selection of marketing-orientated strategies.

And, therefore, contributes to the goals of the company and its marketing objectives.”

– Wikipedia


What is marketing strategy?

Was anything missing?

Customers


Products Formats Business objectives

1. 2. 3. 4.

1. Start with the customer, not the idea

• If you don’t truly know your customer, start now

• There are many methods and tools to get a handle on your customers are.

• The answer isn’t relying on one source of information, or discounting qualitative data

• It’s about doing the research and interrogating what information you’re provided

• It’s not about your NPS, it’s about the opinion of your customers that matter

• What do your customers say about you behind closed doors?


40Exit websites if they don’t load in 3 secs

%

8Customer attention is at an all-time low

secs 64Of people visit a website in reaction to receiving DM

%

1.9The average # of social media profilesa UK adult has

46Of under 24 year olds do not read newspapers or magazines

%

1Country for Twitter engagement is Holland

No.

“Marketing is not the art of finding clever ways to dispose of what you make. It’s the art of creating genuine customer value.”

– Professor Phillip Kotler


Who knows their customers?

• Amazon • RWC Australia 2003 • Google / YouTube



And who really doesn’t…

• Kodak • Camden Town Brewery / ABinBev • Microsoft

2. Focus on the product

• If you have products, monitoring their performance is critical

• This analysis should then loop back into the business to inform future iterations

• Not enough companies monitor performance. It’s all hard graft… then onto the next thing

• Hire an analyst – they’ll safeguard your assets

• The ratio of showroom visits to cars sold at Mazda has decreased since they invested in digital

• GWR were able to save >£1.2m in lost ticket revenue by retaining a data analyst last year

• EasyJet’s CRM and ticket app enables brand loyalty


“Don’t find customers for your products. Find products for your customers.”

– Seth Godin


Research, research… The heart of a successful product is great user experience

Virgin America

• Simplicity

• Content hierarchy

• Focused design

• Convenience


Research, research… The heart of a successful product is great user experience

Pebble

• Design

• Community focus

• Price point

• Innovation


“We need to stop interrupting what people are interested in, and be what people are interested in”

– Craig Davis


3. Choose the right format

• Marketers tend to choose the format or channel they are most familiar with

• They fail to interrogate the data, which supports its use

• A business analyst will save your precious budget

• There’s no-one-size fits all format for engagement but there are some commonalities:

• Know your customer

• Support it with great creative idea

• Ensure quality, consistent content

• A digital presence – for ZMOT

• Measure it

| © 2016 ORM | Private & Confidential Volvo Trucks – 72 million hitsNo traceable ROIAv

erag

e co

sts

Average ROI (%) - North & Eastern European Countries

Total

TV

Cinema

Outdoor

Radio

Print

PR

Digital

26

22

37

28

83

217

76

377

What’s the right marketing for you?


• There are 52 types of marketing, but only 1 focus: the customer

• Marketing in 2016 shouldn’t be over-complicated

• It shouldn’t be about focussed around the creative, format or style

• The need should come first, and then the idea – supported by data – and your agency should start with that

• If they come to you with a format, or a piece of creative first – turn them away

Opportunity/need

Align with business

objectives?

Create proposition

ResearchHypothesisIdea

Go / no go Execution Test

Sign-offMeasure + returnIterate

4. Align to business objectives


• Marketing doesn’t work unless it supports at least one of the business’ core objectives

• By contrast, it can influence business direction

• There’s more to marketing strategy than just shaping the pointy end of the business. It can:

• improve operational efficiencies

• generate new revenue streams

• improve products

• It is also measurable; be it KPIs or more focussed micro-conversions

• Measurement keeps the strategy honest and is the justification for future investment

“Creativity without strategy is called art. Creativity with strategy is called advertising.”

– Professor Jef L. Richards


A marketing strategy isn’t the be all and end all. To sustain an advantage, you should consider:

• Timeliness

• Research

• Innovation

• Simplicity

• Consistency

• Quality

• Measurement

• Leadership

Seize the competitive advantage


A marketing strategy isn’t the be all and end all. To sustain an advantage, you should consider:

• Timeliness

• Research

• Innovation

• Simplicity

• Consistency

• Quality

• Measurement

• Leadership

Seize the competitive advantage


• Time to market

• Customers change

• Ideas connect

• Engagement

• Joined up content

• People pay for it

• Learn and evolve

• Solves issues

How to get more bang for your buck

• Playing nice with your agency can aid your marketing

• An effective client-agency relationship will result in heightened customer engagement

• Get the relationship right, and an agency will run through walls for you

• Low morale can lead to losing the stars and reduced productivity

• At the heart of success is clear communication and honesty

• Not just the brief, but your expectations and the opportunities


Briefing Collaboration

Defined objectives

Review period

Stakeholder access

Share news

Clear comms

Data access

Co-creation

How to pick the right team

• There is a growing trend towards self-sufficiency in marketing

• Marketing teams are skilling up with agency staff and/or modelling themselves structure-wise

• Teams that adopt a publishing or digital-first culture but rely on specialist support is a clever model

• What follows is a team structure of a bank I work with:

• It focuses on digital but includes channels

• Affords SME knowledge

• Allows a focus on UX and data

• Retain control of your content


Head of Digital

Content Editor/Strategist

Marketing Manager

CRM Manager

Data Analyst

Communications Manager

Journey Manager

Digital Marketing Manager

Project Manager

Final words

• One thing remains constant in marketing – good content stands out

• Don’t focus on disrupting: ensure engagement and story-telling is core

• People are over-loaded with messages, yet the desire for entertaining, timely, consumable content remains

• Content creates closer, longer relationships with customers

• It isn’t even hard or expensive to achieve, you just need some expert advice


“Stories make it easier to understand the world. [They] are the only way we know to

spread an idea. Marketers didn’t invent storytelling. They just perfected it.”

– Seth Godin


Thank you

Mark Hopkins, Executive Client Services [email protected]

ormlondon.com@ormlondon