Change Marketing v01
Transcript of Change Marketing v01
THE ARCHITECTS
FUTURELAB
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
Iasi
Kiev
Moscow
Shanghai
Some Credentials
Astra Zeneca
Deloitte
Fortis Investments
Heineken
Hewlett Packard
Lego
Mobistar
Special
Relationship
Gemalto
Lexus
Philips
Pireaus
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
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
always; 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
8.6
1.1
48.2
9.4
Europe West Europe East/ME
2008
2013
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
26%
20% 20%
13%
9% 9%
30%
23%22%
13%
7%
4%
18-32 33-44 45-54 55-63 64-72 73+
% 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
“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
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 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
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
The Core Issue
People who live near
train lines adjust to
the noise.
They do the same
with advertising.
Image: (c
) A
dam
booth
FUTURELAB
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
BRAND-CENTRIC
COMMUNICATION PLANNING
HUMAN-CENTRIC
COMMUNICATION 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.
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
PodcastsMobile
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
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 shoppers
made 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
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 value
Disguised
€ 3,000
Detractors
€ 9,000
Neutrals
€42,000
Promoters
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 3FUTURELAB
Customer Score or NPSLow High
Low
High
Sh
are
of
Wa
lle
t
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
Media-centric planning & buying systems
“Big Idea” creative execution
Efficiency-driven compensation systems
“Mass”-based orthodoxy
FUTURELAB
Help invent a new marketing reality
Challenge your agencies – your business – yourself to
FUTURELAB
Customer Centricity
Profit
Innovation
CHANGE MARKETING? YES WE CAN.
FUTURELAB
To contribute to the revolution, get in touch: [email protected] or @alain_thys