Digital marketing - the new customer centric future

Brand XWe help boost your business

The new way of digital marketing

Establish your dialogues•Collect intelligence that helps build engaging and relevant dialogues•Promote relevant offers for users through high involvement campaigns•Consumers involves in relevant content – not brands

This is how we do it!

Agenda

• Digital marketing models – decreasing the marketing acquisition cost• The operator situation and motivation• The Community• The new digital marketing solution – engaging your customers and prospects• Examples of concepts• Strategic way forward for digital marketers – do’s and don’t

Making room for conversations!

Elevator pitch• Marketers struggle increasing their business with existing budgets – high value exposure costs!

• Traditional Above the line marketing means that you buy in on others market place – in a ”rasing the bar competition” with your competitors and other brands

• Customers use digital platforms increasingly in their brand consumption and buying decision processes

• Customers hyper stimulated with general content and entertainment – dedicated content consumption is in increasing demand!

• As a marketer it is therefore key to establish your own low cost micro communities with relevant content - and use these as dialogue platforms – Mobile CRM!

• Either high value but also high cost content communities – eg. Football and sport in general communities

• Or lower value but also low cost communities motivated by simple gamification, community boosting contests and user to user generated content

• Mobile is the fastest growing community media!

• Use your own mobile communities as a customer dialogue tool – to be tuned in and create further insight in customer needs – be the marketer with best customer insights!

• As well as use this platform for selling and creating customer loyality/engagement

Agenda

• Digital marketing models – decreasing the marketing acquisition cost• The operator situation and motivation• The Community• The new digital solution – engaging your customers and prospects• Examples of concepts• Strategic way forward for digital marketers – do’s and don’t


Time spent on media

43

29

1611

1

40

6

22

9

23

05

101520253035404550

TV Print Web Radio Mobile

Ad spent per media Consumer time spent per media

Customer Acquisition costKolonne1 Kolonne2 Kolonne3 Kolonne4 Kolonne5 Kolonne6

TV Print Search CRM Mobile CRM

500 €

400 €

300 €

200 €

150 €

100 €

Customer First Marketing Paradigm… because customers have more options in a digital and social world

• They can choose which marketing messages they receive, when, where, and from whom. They expect, even demand, interactive communication.

• Delivering on time and according to what’s expected is no longer enough.

• Promoters demand something extra (surprise & delight)

• And detractors share (called Second moment) bad customer experience on the social web

General marketing strategy reflects 50-60 years of experience, where this has been right!

Customer way

First moment

Prospects

Aware

Præference

CTA

Sale First paradigm

UseBuy

Key is cost efficient high value sale!

and low cost production

=> Customers get less than expected

The strategic framework behind Customer First marketing paradigm

Customer way

Zerro moment First moment Second moment

Prospects being influenced by Users via Social Media!

Aware

Share UseBuy

Customer First paradigm

New focus and Ressource allocation

Moment of truth

Key is delivering a superior customer experience when being a customer

Mobile CRM Marketing

= User generated and related content within micro communities creates relevance and frees up marketing resources for other campaigns!

Agenda



General situation – eg. Mobile operators

• Limited market growth even from mobile data due to price competition. Combined with increasing customer acquisition cost and industry high churn, EBITDA (growth) is under pressure

• Increasing subsidy and or increasing marketing budgets in general only leads to short term advantages – and general trend in decreasing OPEX – also marketing spend.

• Every one talks of Customer Centricity – but limited customer dialogue and indsight is established

• Mobile services and operator offered content was’ent the profit builder as hoped for – profit to low or even negative and complexity to high = >in general are opererators still bit pipes making profit from selling acces

• Most operators use the same tactical campaign elements they have for +10 years – and as the competitors – difference is in general only segment focus and visual expression

Need to identify marketing activities that both has tacical and strategic (branding) potential

Differencing the operator

Lowering the subscriber acquisition cost

Increasing the customer dialogue & customer insight

True customer engagement builds brands and increases loyalty

The operator needs – The digital marketer partnership opportunities

Lowering the customer sales cost

Lowering the customer handling

cost

Increase brand value by introduce new innovative concepts and marketing campaigns

Increasing customer insight

and establish cost effective dialogue

Digital marketer partnership opportunities – the solutions

Mobile CRM communities – establising new marketing space estabsising motivated brand dialogue with

target segmentsThe expert – user

helping users motivated by

gamification and edjucate me –

help your customers to

become better customers

Fun and innovative campaigns – typical event based (Tour de France, local events etc.)

Use contextual CRM tools to

gather customer insight and build promotors and

minimize detractors

Agenda

• Digital marketing models – decreasing the marketing acquisition cost• The operator situation and motivation• The Community• The new digital solution– engaging your customers and prospects• Examples of concepts• Strategic way forward for digital markers – do’s and don’t


Building micro communitiesKey insights:

•Use Events and contests to boost community start up – eg. Partnership with other brands – make sure that tipping point are reached within 1-3 months in general

•Core Content interest areas to be strong micro community theme, eg. Fashion, boyz’s world, new Handsets & gadgets….

•Invest in relevant content – but minimize it and focus on user generated content and gamification elements – dramatic increase in content cost does in general not reflect in high brand commercial community value

•Building short term event community events just at costly as long term communities – ensure to have a long term vision

•Build it to last: Long term micro communities enables stronger user to user dialogue and stronger user to brand platform – and users se through fake or short term community attempts

The community journey• Phase 1 – focus on innovative marketing activities builing the community

• Often together with other brands – e.g. as Prizes ”participate in the H&M sommer campaign and win a VW Golf Cabrio. Send an SMS to … and ”

• Identify key segments and their content needs

• No or low brand exposure and commercial value

• EVENT driven/motivated!

• Phase 2: Automate customer dialogue, collecting insight, build community by motivating member get member activities and user to user generated content.

• Moderate commercial brand value – some Mobile CRM campaign activities

• Phase 3: Intense brand utilization of established segmented marketplace

Phase 1 – Embryonic and

event focus

Phase 2 – Hyper activity -

automated

Phase 3- The new media entity

Customer engage in dedicated and high quality mobile micro communities

Customer journey vs. brands:

•Relevance

•Trust•Sale

My area of

interest

You catch my interest - CONTENT

I trust you

I will buy from you

Others recommend you

The business logic model behind Mobile CRM – establish viable customer engagement

Customers

Micro segment need and intererest

s

Brand need and intention

Relevance and Interest

Push commu

ni-cation

Pull commu

ni-cation

Internal focus

Mobil CRM Customer vision - Engagement drivers needs to be end-user centric

% of customer engagement

Making room for conversation – collecting Customer insight and use it in the Dialogue

Customer X

intriguing content

What I do

Who am I

Ask & listen to

me

Talk to me

+ Identitify Promotors, Neutrals and Detractors

Mobil CRM engine

Segment needs

Collecting customer insights

Target offerings

Segmented dialogue

Intriguing Content

The customer journey – how to motivate sale or avoid churn

Any given marketeer – customer base distribution:

Eg. 40% Promotor

s

Eg. 40% Neutrals

Eg. 20% Detractor

s

Motivate KPI fufillment (Sale or Retention) takes segmented and relevant dialogue with

all segments!

Effective dialgoue – without eventual opt-out needs targeted and segmented dialgue

Interests:

Characteristica A B C

Detractors

Neutrals

Promotors

E.g. In order to avoid churn marketeers need to address all segments accordingly to their needs to achieve maximum effect

Exampel – reducing churn – traditional vs. Mobil CRM

Traditional:

•Marketeer churn eg. 10% anual churn

•Via datamining target segment are identified.

•Eg. 5% of customer base

•Segment with 4 x normal churn = 20% churn

•Effect of traditional marketing activity eg. 25% churn reduction

•That is 0,25x0,2x0,05

•Improvement on churn = 0,25% of X

•That is if X is 1.000.000 then effect is reduction of churn on 2.500 customers annually

but…

•That is out of e.g. 100.000 churners!

New Mobile marketing paradigm:

•Marketeer churn eg. 10% anual churn

•All contacted via mobil CRM.

•Eg. 50% of customer base active

•Segment with almost normal churn =8% anual churn

•Same effekt: marketing activity eg. 25% churn reduction

•That is 0,25x0,08x0.5

•Improvement on churn = 1% of X

•That is if X = 1.000.000 then effekt is reduction of churn on 10.000 customers anually

•And yes – mobile CRM is cost effective!

Cost of doing business- You need low cost scale more than targeting

Make sure you go for scale – start up cost is often the same for involving few vs. Many customers!=> Marginal cost dramatic decreased if launching high quality mobil CRM koncepts!

Agenda



What the new digital marketers - should do

• Users engage in fun and entertainment – not brands

• Content is king

• You do it by being relevant and engage users by making room for conversations in micro communities!

• Enabling both user to user but also user to (relevant) brand conversation within the community

• You collect on going both behaviour but also questionnaire based customer insight

• and segment users according to profile and interest

• and ensure that ongoing customer dialog are targeted according to this!

You build relationships with users and engage them in micro communities!

How you do it

•Target users with relevant content by controlling the conversations•Gamify the the user experience to keep users engaged and give them a sense of

progression•Automate everything to assure your user experience

Making room for conversations and creating dialogues that build loyalty!

Engaging the customers- Community and campaign building blocks

Social CRM platform

Agenda

• Digital marketing models – decreasing the marketing acquisition cost• The operator situation and motivation• The Community• The new digital solution– engaging your customers and prospects• Examples of concepts• Strategic way forward for digital marketers – do’s and don’t


Your customers- eksampel• Teenage girls age 13-25 years old

• Or woman age 30-50 years old

• Into looking good

• Socializing with friends

• And building new network

• Need:

• Boost ego

• Confirm friendsships

• Build new friendsships

• Likes gossip

• News about fasshion

• Cool events in local community

• Deals – restaurants and shopping

Silverbullet 1 – Female Micro community – 25-55 years

• Innovative new marketing event

• Build new innovative relationship with female customer segments

• If possible together with media partner – e.g. Aller or Bonnier

Your customers- eksampel 2

• Adult male 25-55 years old

• Into sport

• Socializing with friends

• And building new network

• Need:

• Boost ego

• Confirm friendsships

• Build new friendsships

• Likes being updated

• Funn and entertainment – games and quizes

• Cool events in local community

• Deals – restaurants and shopping

Silverbullet 2 – male Micro community – 25-55 years

• Innovative new marketing event – launch a new micro community targeting techies

• Build new innovative relationship with male customer segments

• If possible together with media partner – e.g. TV2

Silverbullet 3 –male Micro community – 15-25 years

• Innovative new marketing event – launch a new micro community targeting young urban male

• If possible together with media partner – e.g. Aller or Bonnier

Agenda

• Digital marketing models – decreasing the marketing acquisition cost• The operator situation and motivation• The Community• The new digital solution– engaging your customers and prospects• Examples of concepts• Strategic way forward for digital marketers – do’s and don’t


Digital business modelsAvoiding Revenue without adequate scalability

Bodyshopping – selling IT hours at

cost +

Profit Potentia

l

Solution selling – to others value chains

Micro projects

Volumen community owner – capatilizing brand

exposure to target segments

Going from what to how – to make money by focus on scalability

Do’s•Develop industry offerings with appealing event motivated concept packages

•Ensure end user relevance/community potential – despite of initial brand urge to push only brand related services

•Packages that in general are motivated by marketing KPI’s hence budget allocation here from

•Atchik core innovations should be “building blocks” development defined by 3-5 micro segment needs – eg. Men 15-30 or Tweens etc.

Don’t•Build to order – eg. self service apps – that is body shopping of IT ressources

•Sell to low level employees - ensure high level marketing commitment at C level – we sell business assistance – using mobile CRM as alternative to other medias

•Avoid over promise – do not sell loyality or direct sale – you sell enabling and customer engagement – that leads to KPI fullfilment.

•Develop aditional apps and/or platform functionality – without having clear end-user need and micro community package potential in mind!

Mobile communities –don’t• ”Just” a pack of apps or not

even an killer app!

Mobile communities –do’s• Targeted offerings – that is

community package with Apps, quizes, SMS, chat, questionaires etc.

• End user segment specific

• EVENT based

• Either constructed – eg. A big contest

• Or natural event – brand specific or content related eg. OL, EM or –Tour de France

How to engage - summary• Target segments – start

with what target segments are interested in!

• Build content elements around this!

• Supported by all mobile media – wap, sms, apps, chat and responsive web

• Focus on user to user dialogue and content creation

• Strong community building elements – not just apps or games!

• Use events to kick-start community

Also utilises legacy features!

The 3 business opportunities for Digital marketers:

1. Content kings – mobilize and build commnities around and with content brands!

• Medias like Berlingske, Bonniers, Fotball clubs etc.

• Or like guys that has all rights to FC barcelona goals the last 25 years…

• But content kings that scale – preferebly international

2. Start own targeted micro communities – in search for new mobile web opportunities!

• Like Butifull pets.com, Cool houses from the 70’s and their transition, Coolest fishermen.com etc.

3. Build content based micro communities to ”borrowing brands” - like operators.

• Consumer do not involve in brand dialgoue – but in content marketing – therefore build event drivent micro content communities.

• Adress micro segments customer needs and build high involvment communities relevant to product brand dialogue

Thats it!Questions?

Digital marketing - the new customer centric future

Business

Transcript of Digital marketing - the new customer centric future