After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014.
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Transcript of After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014.
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After the recession. How are European companies fighting
back?
Andrew Harvey
Moscow22 October 2014
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First, some warnings
• Content is practical• Basis is experience, not academic• And based on the fact that I am still learning
• Some background and then some examples• Happy to take questions
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A little about me
• Early career in travel – both business and consumer
• First Commercial Director for Virgin Trains• 15+ years in professional services sector• Firms to €400million t/o and 3000 people• Consultant to range of businesses, leading
marketing and change
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My other roles
• Board member and Chairman, Chartered Institute of Marketing (2007 to 2014)
• Board member and Chairman, European Marketing Confederation (2008 to date)
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European Marketing Confederation• Marketing associations across Europe• Based in Brussels• Sets standards for profession• Shares good practice between members• Content provider for member associations• EMCQ - common qualifications framework
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What’s the context? What’s happening in Europe?• Growth still very weak• Inflation fell to 0.4% in July (ECB target 2%)• 5 EU countries in negative growth• Some bright spots – Ireland, Latvia, Lithuania• And outside the Eurozone – Hungary, Poland,
Great Britain• For marketers in all businesses – pressure to
perform
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Marketing orientation – even more important than before• Establishing the market need• Designing a response to that need• Distributing/communicating a product or
service• Delivering customer experience• Not the preserve of private companies.
Equally applicable to government sector, charities etc
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What can happen if you get it wrong?
• Decline is inevitable• That speeds up in changing markets• And even more so in the digital age
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How to get it wrong – and right again
• Founded 1884 in Leeds, northern England• Grew for over 100 years• Reputation for value and innovation and as a
great employer• 1953 – ‘The customer is always and
completely right.’• A brand to aspire to be like, notably in retail
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What went wrong?
• No customer based strategy. For example - uncoordinated international expansion
• Poorly managed switch to international sourcing, aggressive buying policies
• Competition at both top and bottom of its markets
• No true marketing orientation• Recession
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What’s changed?
• Focus on the voice of the customer, significant effort
• Customer voice as the driver for everything• Market positioning that reinforces that• Practical change to offering
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And the impact?
• Recession caused decline but…..• Turnover back, above former levels• Profit around 50% of best years• Sentiment improving
• … but lasting damage
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What does all of that look like?
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Digital world – a way to marketing orientation
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Digital – driving reputation for a service company• 2010, started with an Icelandic volcano –
providing information• Now service support – 24/7, 10 languages, all
in one hour• As an example, ‘Meet and Seat’• Facebook – 4.7m followers, 4% engagement• Multi-platform – Twitter, Instagram….
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Digital – more than reputation
• Three pillars – reputation, service, commerce• Very personal – ‘What I need now’• Very fast – 1 hour or less• Expectations getting higher and higher
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And digital can be used to change sentiment
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And what does KLM say?
• Complete change in customer engagement• Using database to drive service changes• Social based marketing campaigns – seven
times better rate of return
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And what more does KLM say (but might rather not)?• The dog is an actor
• Keep social ‘honest’
• www.keepsocialhonest.com
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Change in communications landscape – it’s real
Online ads % Print %
Great Britain 40 28
Sweden 29 38
The Netherlands
23 40
France 21 23
• Every European country, print in decline (not Germany)
• TV varies hugely by media market
• Online growth in every country
Source: Publicis
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For some, digital is a real threat
• Some models rely on other channels
• As an example, luxury travel market
• Built on a knowledgeable adviser, quality experience
• Does the internet destroy all that?
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Kuoni
• Swiss – founded 1894, strong across Europe, particularly in Britain, Switzerland, Scandinavia
• Mixed direct and agency sales• Travel more commonplace – and much more
self-service• Needed new positioning• Really strong brand equity, needed to work
harder
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Kuoni – improving direct sales experience (fewer quality agents)
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Kuoni – advertising to reinforce strengths, extend distribution channels
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Kuoni - outcomes
• Context of weak international market• 27% improvement in income• Key elements – greater control over
distribution, improvement in sentiment amongst essential markets
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Seeking out a niche
• Insurance, a market where most do everything
• RIAS, launched 1992 as ‘over 50s’ specialist• Allowed building processes and data for that
segment, eg claims handling• Heavy reliance on ‘old fashioned e-mail’• Contact centre culture built on quality
conversations
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RIAS - results
• Renewal rate almost twice that of competitors – for same age group
• Customers buy 2.1 policies a year (compared to 1.2)
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RIAS – what does it look like
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And how can not-for-profits fight back?• Many of the same tools and techniques can be
used• Background – charitable giving under pressure• Competing pressures for money• Western governments leaving more social
care and support with charities
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Making the medium the message
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Simple but creative
• A problem most of us see every day• Irritating to us, but imagine if you were blind• 24% click through rate• Almost four times more likely to donate
• In digital, the best are still very creative
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In conclusion – what have we learnt
• Some companies buck the trend
• Thinking and planning are the key• Creative still a vital part of what we do• Common theme – thinking from the customer
perspective, or marketing orientation• Understanding your market is everything
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Thank you for listening
• What are your stories?• What are your questions?
Andrew Harvey+ 32 2 742 17 [email protected] andrewqharvey
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After the recession. How are European companies fighting
back?
Andrew Harvey
Moscow22 October 2014