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Change Marketing v01

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  1. FUTURELAB THE ARCHITECTS We assist  Marketers to maximise the return on their investments  Innovators to create more successful propositions.  CEO’s to grow profits through customer-centricity. Special Relationship Athens Brussels Bucharest Hamburg Iasi Kiev Moscow Shanghai Some Credentials Astra Zeneca Deloitte Fortis Investments Heineken Hewlett Packard Lego Mobistar Gemalto Lexus Philips Pireaus


  3. Flashback 2006: I Am The Media FUTURELAB

  4. 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

  5. 2009-2011 The End is Here For many traditional mass-habits FUTURELAB

  6. FUTURELAB US media fragmentation and the demise of the “big 3” Over one-third of US consumers are watching TV shows online Source: Deloitte – State of the Media Democracy Survey, 2008

  7. FUTURELAB TV Ads are being “tuned out” DVR Growth by Region (millions of units) UK DVR owners who fast-forward the adverts (% of recorded programmes) Never ; 6% Hardly ever, 3% 48.2 About half the time, 7% 2008 2013 9.4 8.6 Always & almost always; 88% 1.1 Europe West Europe East/ME Source: Informa Telecoms & Media, Q4-2008 Source: Ofcom Research, February-March 2008

  8. FUTURELAB In Europe, Internet will soon be bigger than TV European Internet vs. TV consumption Hours/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 Source: Europe Logs On, Microsoft, April 2009

  9. FUTURELAB And it ain’t just the kids Internet vs. real world population by age group United States, December 2008 30% 26% % of total population 23% 22% % of internet population 20% 20% 13% 13% 9% 9% 7% 4% 18-32 33-44 45-54 55-63 64-72 73+ Source: Pew Internet and Americal Life Project December 2008 Survey

  10. The answer ... go socio-digital !! FUTURELAB

  11. FUTURELAB After all, there is an ever expanding universe to play with “The workers should appropriate the means of production”

  12. FUTURELAB And engagement goes deep ... very deep 84% of Germans under 30 would rather give up their car or partner than live without internet or mobile telephone. Source: Bitkom study via – 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

  13. The Sad Reality Many digital marketing herd activities just don’t cut it either ... FUTURELAB

  14. FUTURELAB Different Channel, Same Problem 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 BANNER/AD BLINDNESS Only 13% of UK consumers pay attention to ads on social networking sites. NEW !! TWITTER SPAM Source: Ebay Advertising, March 2009

  15. FUTURELAB Different Channel, Same Problem Reality Check What 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

  16. FUTURELAB “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 “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

  17. FUTURELAB Across the board (including digital) ... MarCom Needs A Reboot

  18. Image: (c) Adambooth The Core Issue People who live near train lines adjust to the noise. They do the same with advertising. FUTURELAB

  19. FUTURELAB BRANDS HAVE TO STOP BEING NOISE Also in the digital space

  20. FUTURELAB Imagine instead … Getting consumers to embrace the message

  21. FUTURELAB Harry Potter Books ( + 3000 pages) General Hospital (11,800 episodes) The Matrix Star Academy Fan Protest Save Jericho (54,000 stories) Of Gods and Men • • • • • • • It can be done

  22. FUTURELAB Talking about what YOU want to say Interrupting me Treating me like any other 35-45 year old male

  23. Relevance Relevance Engagement € Reputation Engagement Reputation AN OPEN SOURCE MODEL FUTURELAB

  24. Relevance Relevance Engagement € Reputation Engagement Reputation FUTURELAB

  25. FUTURELAB To make me pay attention, stop looking at yourself BRAND-CENTRIC COMMUNICATION PLANNING HUMAN-CENTRIC COMMUNICATION PLANNING 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.

  26. FUTURELAB Illustrating the point How to advertise at a busstop?

  27. Brand/Media-Centric Communication Planning You need to get extreme to get noticed FUTURELAB

  28. FUTURELAB relevance = f(personality, need, situation) Human Centric Communication Planning What would this man want to hear?

  29. Human Communication Planning A World of Opportunity 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 Books & Magazines Mobile Television Social Applications Story Posters Busstop Conversations Mobile Games FUTURELAB

  30. FUTURELAB relevance = f(personality, need, situation) Also in digital/web Don’t look at the box, look at the person

  31. Project Battlecry: Challenge 1 Introduce Human-Centric Communication Planning TODAY: STRUCTURAL SOLUTION Take your existing plan and ask yourself “what’s in it for the customer to give me his media-time?” Establish a “human driven” communication planning model How can I make it more relevant and interesting? And if you don’t know, go into the street and ask. FUTURELAB

  32. Relevance Relevance Engagement € Reputation Engagement Reputation FUTURELAB

  33. FUTURELAB Brands seek loyalty for life Trust us - Engage with us - Become an Advocate - “Love Us”

  34. FUTURELAB Seduce & Forget Campaigns Loyalty Scams The New Customer is Prettier Join This Week’s Community You are just a segment • • • • • But in Reality they behave like a One Night Brand

  35. FUTURELAB After the lies, the forgetting, the disregard, the customer promiscuity Would you still “engage”?

  36. Project Battlecry: Challenge 2 Start Building Individual and Lasting Relationships TODAY: STRUCTURAL SOLUTION For every of your current initiatives, validate how customers can “really” talk back (and who listens). 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 • Look at the explicit and implicit promises you make, and check whether they are kept. Change your budget and people structure to accomodate this changed reality. • Force your team and business to “talk to the customer” (cf. P&G India). FUTURELAB

  37. Windfall: The Mass Market is an Illusion Of 1,365 CPG brands studied Only 2.5% of shoppers made up 80% of Sales Only 25 had a shopper base of over 10% driving 80% of their respective volume FUTURELAB

  38. Your windfall Many CPG’s “could” know every customer Imagine these figures travel to Finland 5,250,000 inhabitants X 90% = 4,725,000 Shoppers X 2.5% = 118,250 people representing 80% sales FUTURELAB

  39. Relevance Relevance Engagement € Reputation Engagement Reputation FUTURELAB

  40. FUTURELAB To Illustrate the value of a reputation Imagine that I want to convince you of my skills as a lover. ADVERTISING DIRECT SALES BUILD A REPUTATION I’m a great lover ... He’s a *great* lover !!

  41. FUTURELAB It’s the same for any brand % of people who trust companies less in 2009 than in 2008 Source: Edelman Trust Barometer, 2009 Nearly 70% of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts. When it comes to company information, a “peer” is as credible as an industry analyst and only preceeded by an “expert” Word-of-Mouth is the #1 influence on business- to-business buying decisions Source: Keller Fay, July 2008 Source: Edelman Trust Barometer, 2009 Source: Keller Fay, 2006

  42. FUTURELAB The value of a reputation Show Me the Money !! Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

  43. Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company How likely are you to recommend ? 0 1 2 3 4 5 6 7 8 9 10

  44. FUTURELAB Those who speak well about you are more profitable Customers that are so happy they recommend are the most profitable of all… Case: Lifetime customer value Disguised €42,000 -They spend more -They negotiate less -They stay longer € 9,000 -They are easier to service € 3,000 -They upgrade quicker -They bring their friends Detractors Neutrals Promoters

  45. Case in Point: Apple Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008 FUTURELAB

  46. Case in Point: Apple Total Customer Value of an Apple advocate is almost twice that of the industry average, mainly driven by referrals FUTURELAB Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008

  47. FUTURELAB Above all, your reputation drives your profit Share of Wallet (B2B-markets) “at the point of delight, there is an exponential increase in the share of wallet” Source:

  48. FUTURELAB Project Battlecry: Challenge 3 Focus on it TODAY: RECESSION DIGITAL PLAN Prove to your business that reputation matters and can help create or safeguard 2009 sales Build a reputation Helping your business create promoters by delighting them High Nurture to promotion Nurture & Leverage Helping these promoters spread the word … Share of Wallet Build business Abandon Low Low High Customer Score or NPS

  49. Relevance € BATTLECRY Reputation Engagement AN OPEN SOURCE MODEL Relevance: Introduce human-centric communication planning Engagement: Start building individual and lasting relations Reputation: Use digital marketing to create/leverage promoters

  50. In which we should recognise that we are all addicted IN STEAD OF WE THINK Relevance Our Brand Engagement Standardisation Reputation Doing cool stuff FUTURELAB