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THE ARCHITECTSFUTURELAB
We assist
Marketers to maximise the return on their investments
Innovators to create more successful propositions.
CEO’s to grow profits through customer-centricity.
Athens Brussels Bucharest Hamburg IasiKievMoscowShanghai
Some CredentialsAstra ZenecaDeloitteFortis InvestmentsHeinekenHewlett PackardLegoMobistar
Special Relationship
GemaltoLexusPhilipsPireaus
CHANGE MARKETING? YES WE CAN.DIGITAL EDITION
FUTURELAB
Flashback 2006:
I Am The Media
FUTURELAB
The traditional marketing model is being challenged, and
(CMOs) can foresee a day
when it will no longer work.
McKinsey Quarterly, 2005, Number 2
FUTURELAB
2009-2011
The End is Here
FUTURELAB
For many traditional mass-habits
US media fragmentation and the demise of the “big 3”
Source: Deloitte – State of the Media Democracy Survey, 2008
FUTURELAB
Over one-third of US consumers are watching TV shows online
Always & almost al-ways; 88%
About half the time; 7%
Hardly ever; 3%
Never ; 6%
UK DVR owners who fast-forward the adverts(% of recorded programmes)
Source: Ofcom Research, February-March 2008
Europe West Europe East/ME
8.6
1.1
48.2
9.4
20082013
DVR Growth by Region(millions of units)
Source: Informa Telecoms & Media, Q4-2008
TV Ads are being “tuned out”
FUTURELAB
Source: Europe Logs On, Microsoft, April 2009
European Internet vs. TV consumptionHours/week
37% of french consumers already listen to radio via the internet (IT,UK,DE = ca. 1/3)
Internet usage on PC will drop from 95% today to 50% in 5 years time as people switch to other methods
In Europe, Internet will soon be bigger than TV
FUTURELAB
18-32 33-44 45-54 55-63 64-72 73+
26%
20% 20%
13%
9% 9%
30%
23% 22%
13%
7%
4%
% of total population
% of internet population
Source: Pew Internet and Americal Life Project December 2008 Survey
Internet vs. real world population by age groupUnited States, December 2008
And it ain’t just the kids
FUTURELAB
FUTURELAB
The answer ... go socio-digital !!
“The workers should
appropriate the means of production”
After all, there is an ever expanding universe to play with
FUTURELAB
84% of Germans under 30 would rather give up their car or partner than live without internet or mobile telephone.Source: Bitkom study via Onlinekosten.de – March 2, 2009
72% of British male gamers would avoid having sex for a chance to try their hands on a brand new PS3-game.Source: PS3 Price Compare study, via Itproportal, March 3, 2009
And engagement goes deep ... very deep
FUTURELAB
Many digital marketing herd activities just don’t cut it either ...
FUTURELAB
The Sad Reality
78% of consumers consider in-stream advertising as “intrusive”. Half of viewers stop watching an online video once they encounter an in-stream ad.Source: Burstmedia, January 2008
29% of consumers leave a website that appears to be cluttered with advertising.
Source: Burstmedia, December 2008
Only 13% of UK consumers pay attention to ads on social networking sites.
Source: Ebay Advertising, March 2009
BANNER/AD BLINDNESS
FUTURELAB
NEW !!TWITTER SPAM
Different Channel, Same Problem
Reality CheckWhat does this mean for the business???
“If I tell my Facebook friends about your brand, it’s not because I like your brand, but because I like my friends.”
Mike Arauz
FUTURELAB
Different Channel, Same Problem
“The problem is not the [online] medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed”
Eric Clemons
“Informed” consumers are much less reliant on advertising for product information
Out of 20 media company blogs are “least trusted” sources of information. Consumer product ratings/reviews are the second most trusted source.(Forrester, Q2-2008
FUTURELAB
MarCom Needs A Reboot
FUTURELAB
Across the board (including digital) ...
The Core Issue
People who live near train lines adjust to
the noise.
They do the same with advertising.
Imag
e: (
c) A
dam
boot
h
FUTURELAB
BRANDS HAVE TO STOP BEING NOISEAlso in the digital space
FUTURELAB
Getting consumers to embrace the message
FUTURELAB
Imagine instead …
It can be done
• Harry Potter Books ( + 3000 pages)• General Hospital (11,800 episodes)• The Matrix • Star Academy• Fan Protest Save Jericho• Harrypotterfanfiction.net (54,000 stories)• Of Gods and Men
FUTURELAB
Talking about what YOU want to say
Interrupting me
Treating me like any other 35-45 year old male
FUTURELAB
Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
FUTURELAB
AN OPEN SOURCE MODEL
Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
FUTURELAB
BRAND-CENTRICCOMMUNICATION PLANNING
HUMAN-CENTRICCOMMUNICATION PLANNING
To make me pay attention, stop looking at yourself
FUTURELAB
Starts from what the brand wants to say and how to efficiently get it to pre-defined homogeneous audiences.
Starts from what the customers want to “hear” and and being relevant to their situation, environment, interests and needs.
How to advertise at a busstop?Illustrating the point
FUTURELAB
Brand/Media-Centric Communication Planning
You need to get extreme to get noticed
FUTURELAB
relevance = f(personality, need, situation)
What would this man want to hear?Human Centric Communication Planning
FUTURELAB
I consume a massive amount of media every moment of my day … it’s just not yours. But as a brand, there is no reason why you can’t change this.
Audio/Video Podcasts
Mobile Games
Books & Magazines
Mobile Television
Social Applications
Story Posters
Busstop Conversations
Human Communication Planning
A World of Opportunity
FUTURELAB
relevance = f(personality, need, situation)
Don’t look at the box, look at the personAlso in digital/web
FUTURELAB
TODAY:
Take your existing plan and ask yourself “what’s in it for the customer to give me his media-time?”
How can I make it more relevant and interesting?
And if you don’t know, go into the street and ask.
Project Battlecry: Challenge 1
Introduce Human-Centric Communication Planning
FUTURELAB
STRUCTURAL SOLUTION
Establish a “human driven” communication planning model
Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
FUTURELAB
Trust us - Engage with us - Become an Advocate - “Love Us”
Brands seek loyalty for life
FUTURELAB
One Night BrandBut in Reality they behave like a
• Seduce & Forget Campaigns• Loyalty Scams• The New Customer is Prettier• Join This Week’s Community• You are just a segment
FUTURELAB
Would you still “engage”?After the lies, the forgetting, the disregard, the customer promiscuity
FUTURELAB
TODAY:
For every of your current initiatives, validate how customers can “really” talk back (and who listens).
Look at the explicit and implicit promises you make, and check whether they are kept.
Force your team and business to “talk to the customer” (cf. P&G India).
Project Battlecry: Challenge 2
Start Building Individual and Lasting Relationships
FUTURELAB
STRUCTURAL SOLUTION
Shift from campaign based, mass-comms to life-long personalised messages:
• Think microsegmentation or even individual customers
• Build customer life-time communication plans rather than campaigns
• Change your budget and people structure to accomodate this changed reality.
Of 1,365 CPG brands studied
Only 2.5% of shoppersmade up 80% of Sales
Only 25 had a shopper base of over 10% driving 80% of their respective volume
Windfall: The Mass Market is an Illusion
FUTURELAB
5,250,000 inhabitants
X 90% = 4,725,000 Shoppers
X 2.5% = 118,250 people representing 80% sales
Imagine these figures travel to Finland
Your windfall
Many CPG’s “could” know every customer
FUTURELAB
Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
FUTURELAB
I’m a great lover ...
DIRECT SALES
www.greatlover.com
ADVERTISING
He’s a *great* lover !!
BUILD A REPUTATION
FUTURELAB
Imagine that I want to convince you of my skills as a lover.
To Illustrate the value of a reputation
% of people who trust companies less in 2009 than in 2008
Source: Edelman Trust Barometer, 2009
When it comes to company information, a “peer” is as credible as an industry analyst and only preceeded by an “expert”
Source: Edelman Trust Barometer, 2009
Word-of-Mouth is the #1 influence on business-to-business buying decisions
Source: Keller Fay, 2006
Nearly 70% of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts.Source: Keller Fay, July 2008
FUTURELAB
It’s the same for any brand
FUTURELAB
The value of a reputation
Show Me the Money !!Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company
0 1 2 3 4 5 6 7 8 9 10
Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
How likely are you to recommend ?
FUTURELAB
Those who speak well about you are more profitable
Customers that are so happy they recommend are the most profitable of all…
-They spend more
-They negotiate less
-They stay longer
-They are easier to service
-They upgrade quicker
-They bring their friends
Case: Lifetime customer valueDisguised
€ 3,000
Detractors
€ 9,000
Neutrals
€42,000
Promoters
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
Case in Point: Apple
FUTURELAB
Total Customer Value of an Apple advocate is almost twice that of the industry average, mainly driven by referrals
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008FUTURELAB
Case in Point: Apple
Share of Wallet (B2B-markets)
“at the point of delight, there is an exponential increase in the
share of wallet”
Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf
FUTURELAB
Above all, your reputation drives your profit
Build a reputation
Helping your business create promoters by delighting them
Helping these promoters spread the word …
Focus on it
Project Battlecry: Challenge 3 FUTURELAB
Customer Score or NPSLow High
Low
High
Sh
are
of
Wal
let
Nurture & Leverage
Abandon
Nurture to promotion
Build business
TODAY: RECESSION DIGITAL PLANProve to your business that reputation matters and can help create or safeguard 2009 sales
Relevance: Introduce human-centric communication planning
Engagement: Start building individual and lasting relations
Reputation: Use digital marketing to create/leverage promoters
Relevance
EngagementReputation
€
BATTLECRY
AN OPEN SOURCE MODEL
Relevance Our Brand
Engagement Standardisation
Reputation Doing cool stuff
IN STEAD OF WE THINK
In which we should recognise that we are all addicted
FUTURELAB
… and that we are hostages of our own making
Þ Media-centric planning & buying systems
Þ “Big Idea” creative execution
Þ Efficiency-driven compensation systems
Þ “Mass”-based orthodoxy
FUTURELAB
Help invent a new marketing realityChallenge your agencies – your business – yourself to
FUTURELAB
Customer CentricityProfitInnovation
CHANGE MARKETING? YES WE CAN.
FUTURELAB
To contribute to the revolution, get in touch: [email protected] or @alain_thys