marketing stratego for slideshare
DESCRIPTION
The presentation as delivered for Jeugdwerk Vlaanderen on May 4th, 2011TRANSCRIPT
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Een andere kijk op marketingEen sessie voor Marketing Stratego
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We are Futurelab
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A P
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We are business strategists with a passion for customers, innovation and profitWe deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation
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“Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.”
Futurelab InternationalHoornzeelstraat 243080 TervurenBelgiumT: +32 2 7338332F: +32 2 7065772E: [email protected]
For more information about this proposal, please contact
Stefan Kolle, PartnerE: [email protected] M: +32 (473) 888 996
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We do more than consult, we want to right what is wrongOpinionated – a desire to make a difference – unafraid to take the high road
• + 10,000 articles• 75,000 regular readers
+ 10,000 followers
+ 100,000 readers
Regular speaking & media appearances
RecognitionThought leadership
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Welcome to the Marketing Revolution
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Of..’hoe word ik minder ambetant ‘?
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“You can’t bore people into buying your product – you can only interest them”
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"We can't compete on price. We also can't compete on quality, features or service.
That leaves fraud, which I'd like you to call marketing."
Dilbert’s Boss
cc 3
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Me
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76% of consumers don’t believe that companies tell the truth in advertisements
Yankelowich,2006
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Advertising Myths
1. Frequency is mostly not a driver for action – on the contrary
2. There is no golden rule about “6 OTS”
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We are yelling louder and LOUDERSo, what do we do?
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People who live near train lines find ways to adjust to the noise ...
Consumers have begun to treat encroaching advertising just like those trains.
But….
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Advertising is a tax you pay for unremarkable thinking
Robert Stephens,
CEO, the Geek Squad
Last Year
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“Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities."
Jim Stengel, Global Marketing Officer P&G
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The answer ... go socio-digital.....right?
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“The workers should
appropriate the means of production”
After all, there is an ever expanding universe to play with
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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
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Many digital marketing herd activities just don’t cut it either ...
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The Sad Reality
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Banner blindness
1998!
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Contextual advertising ...has just died
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Marketing Sherpa Ad:tech survey
% told by agencies to begin/increase viral video spend
% of marketers advised by agencies to advertise in games/virtual worlds 62%
93%
% asked to start/increase viral marketing spend on social networks 87%
Lemmings?
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Hype
Hmm – what’s this?
Naah, cant measure it
Isnt there a bit much?
Sooo 5 minutes ago
Hey, actually this is cool
The Advertising Technique Hype Cycle
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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
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NEW !!TWITTER SPAM
Different Channel, Same Problem
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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
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Different Channel, Same Problem
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“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
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Is it all over?
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It’s only just begun
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MarCom Needs A Reboot
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Across the board ...
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The Core Issue
People who live near train lines adjust to
the noise.
They do the same with advertising.
Imag
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c) A
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BRANDS HAVE TO STOP BEING NOISECommunication-wise
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Getting consumers to embrace the message
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Imagine instead …
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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
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Talking about what YOU want to say
Interrupting me
Treating me like any other 35-45 year old male
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Relevance
Engagement
Reputation
Relevance
EngagementReputation
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RelationshipReinforcement
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Relevance
EngagementReputation
Relevantie x Interactie(?) x Reputatie = $$$
OUR VISION ON MARKETING
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Relevance
Engagement
Reputation
Relevance
EngagementReputation
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BRAND-CENTRICCOMMUNICATION PLANNING
HUMAN-CENTRICCOMMUNICATION PLANNING
To make me pay attention, stop looking at yourself
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 being relevant to their situation, environment, interests and needs.
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How to advertise at a busstop?Illustrating the point
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Brand/Media-Centric Communication Planning
You need to get extreme to get noticed
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relevance = f(personality, need, situation)
What would this boy want to hear?Human Centric Communication Planning
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I consume a massive amount of content every moment of my day … it’s just not yours. This means someone is doing a better job than you are.
Audio/Video Podcasts
Mobile Games
Books & Magazines
Mobile Television
Social Applications
Story Posters
Busstop Conversations
Human Communication Planning
A World of Opportunity
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relevance = f(personality, need, situation)
Don’t look at the box, look at the personWhen it comes to marketing communications
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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.
Introduce Human-Centric Communication Planning
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STRUCTURAL SOLUTION
Establish a “human driven” communication planning model
Welcome to the Marketing Revolution
Why would he pay attention to me?
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Understand what truly drives your customers
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INSIGHT
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What is my
customer trying to tell me?
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The same coffee bean
on the futures market
in a package at the grocery store
in a cup by the roadside
in a cup in a cafe
at a deluxe restaurant
in a perfect espresso in Venice together with the one you love
Cost per cup
< 1 cent
5-30 cents
€1
€1 - 5
€5 – 10
Who cares?
Insights are about money
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Choice drivers and decision makers
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Preference
“does it look nice”“is it a good drive”
Purchase
“could I afford it”“is it easy to buy”
Repurchase
“is the quality good”“repair service ?”
Loyalty
“Will they give mea good fleet deal”
Advocacy
“Do other peoplethink I’m cool”
For every step of the journey
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The Customer Journey
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A Structured Approach
The Net Promoter™Score measures your judment of this “overall experience”. But to act on it, you need to break this experience into its components: the Customer Journey.
BRAINSTORM
Which are the steps in the customer journey when going on a holiday?
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15 steps when taking the customer perspective
1. I dream of going on holiday2. I research my holiday3. I plan my holiday4. I select my holiday5. I purchase my holiday6. I receive travel documents & tickets7. I anticipate departure8. I prepare my trip9. I travel to my destination10. I discover my destination11. I experience my destination12. I record my memories13. I share my experience14. I travel back home15. I share my memories
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Case: An Automotive Brand
Pre-sales Sales After Sales
The Traditional Perspective
Search Evaluate Try Select Wait Search*** *** *** ***
* * * = Confidential
The Customer’s Reality
Radical new perspectives
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Case: Professional Services
RFP Development Delivery
The Traditional Perspective
LatentProblem
Self-study
Discuss@ office
The Customer’s Reality
InformalRFI
RFPPrep
RFP …
Radical new perspectivesDenk ook overheid/subsidies/partners etc!
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Wat is de levenscyclus van jullie doelgroepen? En wie zijn de beinvloeders?En wat beweegt hun om van stap naar stap te gaan?
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InvloedDrivers
InvloedDrivers
BRAINSTORMHuiswerk
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Understanding what customers really care aboutHow do you delight?
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How do you delight
57.
Ensure satisfaction at every step of the customer journey
Create “little wows” where customers care most …
They are your platform for advocacy.
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Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
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Trust us - Engage with us - Become an Advocate - “Love Us”
Brands seek loyalty for life
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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
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Would you still “engage”?After the lies, the forgetting, the disregard, the customer promiscuity
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TODAY:
For every one 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).
Welcome to the Marketing Revolution
Start Building Individual and Lasting Relationships
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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.
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“The workers should
appropriate the means of production”
Social Media....
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Grootste tijdsbesteding – grootste concurrent?
Super Engagement - Games
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Gaming – ook in Belgie cruciaal
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Facebook Games (maar ook Netlog, Hyves, Etc)
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They can be small, too!
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Out of 90 mln FarmVille and FrontierVille players about 25 mln are playing at any second of the day
There is someone in this building playing right now
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Feminine sanitary products
“KT's Impossi-Bubble Adventures”
Girls have to keep a brutish brother from reading their diaries
Source: And now a game from our sponsor. The economist, June 9 .2005
®
• Product presentation after the game (no in-game “push”)• 500,000 plays in first six weeks• Development cost = $ 25,000• Cost per play = $ 0.05 with “significant effect on sales”
1st year: 14 Million unique, 400 mm Hits
Advergames – the game IS the ad
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Serious games: Games with a purpose
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Strengths:• Boosting brand awareness and image• 100% attention and concentration on the screen • High user relevance and engagement• Educational value for young and senior population• Long contact time
Opportunities:• Possibility of direct response• Further localizations of worldwide games• Local developers / social networks• Pay-per-performance deals• Real world connections• Get your kids involved in this
Weaknesses:• Indirect connection to sales (through building brand values)• Potentially high development cost
Threats:• The later you try, the more expensive and cluttered it is going to be•Its easy to get the wrong tone of voice
In-game (online) advertisement SWOT
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Gamification
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Het is aan jullie:
Gaming Brainstorm
Verzin een concept dat jullie propositie in een game onderbrengt
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Relevance
Engagement
Reputation
Relevance
EngagementReputation
€
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I’m a great lover ...
DIRECT SALES
He’s a *great* lover !!
BUILD A REPUTATION
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If I wanted to convince you of my skills as a lover
Which technique would work best?
www.greatlover.com
ADVERTISING
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% of people that are more likely to believe what they see, read or hear about a company if someone they know has already mentioned it.
Source: Edelman Trust Barometer 2008
• In Brazil, Canada, Germany, The Netherlands, Spain , Sweden and the US, “ a person like me” is the most credible source of information about a company
• 84% of opinion leaders 35-64 recommend companies that they trust to people they know. 37% write “emails of support”.
• 78% share their negative company opinions with others. 44% write emails complaining to the media, a politician or an official third-party
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Recommendations Matter
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Nearly 70% of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts. "The [word-of-mouth] majority isn't coming from healthcare professionals" .
Keller Fay Group Research, July 2008
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Recommendations Matter
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Paleolithic (stone) age“hunter-gatherer”
-2,000,000 -3500
Writing
-500
InfoAge
-50
The word of a tribesman has more value than that of a stranger
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The value of a reputation
Show Me the Money !!Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company
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Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
How likely are you to recommend ?
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One simple question:“How likely are you to recommend us to a friend?”
They understand me
They value me
They listen to me
Best product
Best features
Best price
“Net Promoter is the best customer metric I’ve seen.”
Jeff Immelt, CEO, General Electric
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Happy customers are more profitableThinking beyond “word-of-mouth”
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Þ spend moreÞ negotiate lessÞ stay longer as customersÞ are more open to upsellingÞ are easier to serviceÞ upgrade quickerÞ are ready to refer to othersÞ etc.
Over the lifetime of a customer a 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (F.Reichheld)
Customers that are so happy that they’d recommend your business to a friend, colleague or family member …
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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
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Indexed average gross premium volume cancelled per customer per year
- 100
- 271
Promoter Detractor
Promoter Detractor
Promoters defect less Promoters buy more Promoters drive business
10083
Indexed average of newly concluded gross premium volume per customer per year
Indexed average new GPV generated through recommendation per customer
100
-200
Promoter
Detractor
Source: The Customer Focus Initiative, Allianz, 2006
Customer Economic Behaviour: Allianz Insurances
An approach that uncovered very interesting results ...
85.
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Looking at expenditure on LEGO, over the same time period customer spend was as follows:Promoters spent 208 EurosFence Sitters spent 165 EurosDetractors spent 136 EurosSo, for LEGO, a Promoter will spend 53% more on their product than a Detractor.
Taking into consideration not just the direct spend that the individual makes on the product, but the total contribution they make to the brand - including from recommending others, the average lifetime value for the network providers was as follows:
LEGO - NPS
ResultsEach Promoter brings an additional $693 in revenueEach Detractor is responsible for $1,495 in lost revenueSo the difference between a Promoter and a Detractor was almost $2,200.
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Hoe de vragen te stellen:
Vraag 1 : “Op een schaal van 0 tot 10, hoe waarschijnlijk is het dat je ‘ons’/’dit product’ zou aanbevelen aan een vriend of familielid?”(als zakelijk– ‘aan een collega of vriend’)
Vraag 2: Waarom geef je precies deze score?
Vraag 3: Wat is het ene ding dat we zouden moeten/kunnen verbeteren om een hogere score te krijgen?
Vraag 4: Weet je nog wie jou beinvloedt heeft om hier ‘te kopen’/’lid te worden’
Eventueel dezelfde vragen stellen over de ‘competitie’
Doe een simpele NPS test– tussen de 40 en 100 interviews
www.netpromoter.com
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Derive recommendations for improvement
Implement initiated action
NPS survey
Plan and initiate concrete actions
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Prepare and analyze results
Execute Feedback Calls
InitiateQuick Fixes
Closed loop approach
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Define the right customer strategy for the right segment
Recommend you more than the competition
Recommend you less than the competition
Hig
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At the level of the customer portfolio
Decision Maker
Influencers
Users
On the level of individual accounts
• Account management• Marketing• Product mix• Services
Denk dus vooral ook aan ouders/sponsors/partners/subsidieverstrekkers/etc
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Are you likely to recommend?YES !!
Do you actually recommend?NO
THE ACTIVATION CHALLENGE
What goes wrong ?
Getting People to Recommend You
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If it doesn’t spread … it’s dead.Customer delight stories need to memorable, but also worth mentioning
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Girls Scouts – why didnt this work?
As part of the new business strategy for making the organization become more relevant to girls and their families and thus increase membership (and cookie sales, too) in January 2010, Girl Scouts posted the “What can a cookie do?” video on YouTube.
The video focuses the connection between cookie purchases and how the girls use the funds to help their communities, learn business skills and build self-confidence. Its point: "Every cookie has a mission: to help girls do great things."
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If you want me to talk about you, make my conversations more interestingDelight is not enough
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Re-enforce and “anchor” moments of delight with messages that differentiate your company.
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Be concrete and specific – ask!
• Aan het einde van de vakantie/activiteit/etc vraag of men dit zou aanbevelen. Zo ja, geef een tegoedbon met een echte waarde die aan de aanbevolene gegeven kan worden
• Member get member. Hou op basis van die bonnen (of andere methodiek) bij hoeveel aanbevelingen er gedaan zijn.
• Maak het concreet en direct. Leg uit wat je wilt en waarom.
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Use storytelling techniques to ensure your brand benefits are easy to remember and talk about.
Re-enforce and “anchor” moments of delight with messages that differentiate your company.
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Tell your story so it can be told
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Tell your story so it can be told
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‘Monster supplies’ store hides creative writing workshop
The London-based Ministry of Stories, set up by Lucy Macnab and Ben Payne, stocks a range of everyday goods re-purposed and repackaged for use by fairytale and make-believe monsters of all varieties. For example, visitors to the volunteer-run shop can walk away with items presented as "neck-bolt tightening kits" and "edible human preserves", for later use as wrenches and snacks. The shop, however, conceals a hidden writing workshop, which can be entered via a ‘hidden’ door. Once inside the workshop area, the group or class of children collaboratively create a story, which is illustrated by an artist in residence as they build the narrative. Once the story reaches its conclusion, the children must present the tale to ‘The Chief’ — the despotic editor — who, having approved the story, presents them each with a bound copy of their tale, complete with illustrations. During the creation process, the children are given assistance with their creative writing by the Ministry's volunteers, who also offer sessions to mentor children and young adults aged 8-18 on a one-to-one basis on Thursdays and Saturdays.
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Use storytelling techniques to ensure your brand benefits are easy to remember and talk about.
Re-enforce and “anchor” moments of delight with messages that differentiate your company.
Create unfinished experiences so people can tell their own stories and improvise around your company.
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“My wife and I joined some coworkers for dinner tonight and when we got home we astonished to find that our 6 1/2 month old puppy got a hold of the last 7 of my wife's Claritin 24 hour tablets. We immediatelycalled our vet to find out what to do. He suggested to contact the ASPCA's 24 hour poison control hot-line because they have more information about possible reactions from the drug than he would have.This call will usually cost $65 to speak with someone, but when my wife told the representative that it was Claritin she was asked for the lot number on the box and was informed that the makers of Claritin pay for the call when it is their product.”
Unfinished Experiences: The Element of Surprise
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Members of Hyatt's Gold Passport loyalty program already enjoy numerous benefits when they visit one of the company's hotels. Soon, however, they'll also benefit from a new initiative at the company to deliver random acts of kindness. Hyatt's mission is to provide what it calls "authentic hospitality," defined—in the words of their CEO—as "making a difference in the lives of the people we touch, including guests, employees and others." As part of a new effort to take better care of its Gold Passport members, the company will begin targeting those guests with pleasant surprises designed to delight them during their stay. "We will be empowering hotel employees to perform what we’re calling random acts of generosity so don’t be surprised if Gold Passport picks up your bar tab, comps your massage or treats your family to breakfast. It’s part of bringing authentic hospitality to life and making you feel more than welcome."
Random acts of kindness
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Welcome to the Marketing RevolutionTo contribute to the revolution, get in touch: [email protected] or @Futurelab
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Redefine your competitive space
Your competition could be anyone – but so could be your partners!
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Een andere kijk op marketingQuestions? [email protected]