national retail federation yosi heber speech 1-15-13

Yosi N. HeberPresident

Oxford Hill Partners, LLC

January 15, 2013 – New York

Revolutionize Your Existing Retail Marketing With Mobile/Social!

10 Strategies & 12 Case Studies

National Retail Federation 2013

© Copyright 2011 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending. 2

What We’ll Cover Today

The Opportunity to Broaden Your Existing Direct Marketing Efforts

A “Framework” for Strategic Digital Revenue Growth– Mobile/Social’s “Ten Strategic Revenue Drivers”

Twelve Mini Case Studies – Illustrating the Ten Drivers Leveraging the “Social Circle” for Word of Mouth How Mobile Marketing is Changing the World The “EQ Pulse™” – Web 2.0 Strategic Framework Big Picture Example & Case Study How to Apply these Principles to Your Business

*Time for Q & A at the End*


Oxford Hill Partners, LLC – What We Do

Oxford Hill Partners, LLC is a strategic marketing firm which advises companies with executive level general management and marketing strategy, and the integration of new digital media into their overall business. Our patent pending EQ Pulse™ and EQ Pulse™ – Web 2.0 analytic processes have already been conducted for hundreds of brands around the globe.

We’ve been brought in by over thirty of the largest and well known multinational companies in the world to provide marketing, branding, sales, organizational, financial, website, digital, Web 2.0, mobile, and general strategy advice:

Air Cell

American Standard

Cherry Aerospace

Clorox Company

Con Agra Foods

Dannon Company

Direct Marketing Assoc.

Harvard Drug Group

Krispy Kreme Doughnuts

Nelsons Dr. Bach

Nestle

Novartis Consumer Health

Pitney Bowes

Procter & Gamble

Reader’s Digest

Reckitt Benckiser

Rubbermaid/Graco

Textron Corporation

Telezygology

United Health Group


Our Thinking and Our Leadership

Our “cutting edge” thinking has been featured around the world: At Industry Conferences such as DMA, Conference Board, IIR, Ad:Tech, E-Metrics Summit, and Search

Engine Strategies. At Business Schools such as Harvard, Wharton and Columbia. At in-house senior executive Corporate Seminars. In well known publications such as Advertising Age, DM News and Wharton Publishing. On a variety of podcasts and blogs such as Webmaster Radio, I-Media Connection and Podfeed.

Twenty three year track record including VP, CMO and General Management positions across multiple industries.

Fifteen years of classical consumer marketing including twelve at Kraft General Foods and Dannon (US and Europe).

– Invented the $550 million kid yogurt category.– Grew Dannon Light to become America’s #1 yogurt. Was a pioneer in sales “category/customer

management”.– Introduced most successful new kid cereal of the decade…Post Marshmallow Alpha Bits.

Ten years of extensive, profit generating, digital achievements including four years as CMO of IAC/InterActiveCorp’s Entertainment Division, part of Barry Diller’s internet marketing conglomerate where he worked with sister companies Expedia, Hotels.com, Lending Tree, Ticketmaster, and Match.com.

Wharton MBA Board member – Wharton Global Consulting Practicum.

Yosi Heber (who founded OHP) has extensive senior level experience guiding some of the largest brands in the world:


The Opportunity

Better leverage your existing website?

Tap into the power of Web 2.0, social networking,

word of mouth, and mobile to increase consumer

engagement?

Help you generate significant new and incremental

revenue for your business?

Drive incremental profit for your company?

How do you take your existing Direct Marketing programs

and widen their scope to leverage the power of social

networking, word of mouth, and mobile to:

© Copyright 2011 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending.© Copyright 2012 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending. 6

Social Networking & Mobile Ten “Strategic Revenue Drivers”

Brand’s Overall Web 2.0

Capabilities and Its

Ability to Drive Revenue

Initial Customer

“Engagement”

Customer Education &

Entertainment

2

3

EQ Pulse™ – Web 2.0 Patent Pending Methodology

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8

=10

Relationship Building & Customer Retention

Brand Building & Branded

“Advocacy”Inbound To Customer (Brand Push)=

= Outbound From Customer (Consumer Push)

1 4

5

6

“Call to Action” & Revenue

Maximization

9



Entertainment

2

1

Initial Customer

“Engagement”

3“Call to Action”

& Revenue Maximization

Word of Mouth &

Viral

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8

10Relationship Building & Customer Retention


“Advocacy”

4

5

6

9

Active Customer

“Participation”


Case Study #1Customer Education “On the Go” With Smartphones

Approach:

Leverage a creative iPhone “App” to solve a pressing issue which can’t wait until the customer gets home.

Case Study:

Clorox Stain Removal “Advisory” Tool – Mobile iPhone App


Case Study #1Clorox My Stain – iPhone App


3

Word of Mouth & Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”


“Advocacy”

4

5

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial

Customer “Engagement”


3Active

Customer “Participation”

Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #2 – Active Customer “Participation” – Consumer Generated Content

Approach:

Ask your loyal consumers to submit their own videos about your product.

Case Study:

Dove “Dare to Create A Short Film”


Case Study #2 (Cont.) – Dove – Consumer Generated Content “Dare To Create A Short Film”


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #3 – Word of Mouth & Viral to Acquire New Customers

Approach:

Leverage a viral “tell-a-friend” functionality, and if your customers tell their friends, they get a reward.

Case Study:

Time Life Store – UK


Case Study #3 – Time Life Store – UK “Tell A Friend” with Reward


Case Study #4Viral & Social Networking “Sales”

Approach:

Leverage Twitter to “tweet” about promotions and special deals.

Case Study:

Dell Computers – Dell Outlet Store‒ Dell has sold over $5 million of excess

inventory via this medium (at a cost of virtually zero).


Case Study #4 – Dell Outlet Store on TwitterDrove $5 Million in Revenue


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #5Viral & Social Networking “Sampling”

Approach:

Leverage Facebook to get loyal customers to tell others abut your product line extensions.

Case Study:

Starbucks Stores – “Share a Pint of New Starbucks Ice Cream.”


Case Study #5 – Viral & Social NetworkingSampling – Starbucks Ice Cream on Facebook


3Active


Word of Mouth &

Viral

4

Cross Consumer

“Interaction”

5


“Advocacy”

6


Maximization

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


9


Entertainment

2

1Initial



Case Study #6 – Brand Building and Branded Advocacy via Virtual and Social Pin Boards (Pinterest)

Approach:Leverage cutting edge social virtual pin boards such as Pinterest to organize, browse, and share beautiful visuals on popular social oriented topics related to your brand.

Case Study:Whole Foods Supermarkets

– Users who click on Whole Food’s website pins find recipes and discussion boards relating to food and products found at company stores.

– Stunning visual recipes, 3rd party content that aligns with company values and neat timely topics such as “Who Wants Dinner,” “Sweet Tooth,” “Mom Rocks,” “Strength,” and “Whole Planet Foundation.”

– 41,000 followers already, and 900 pins across 41 boards!


Case Study #6Whole Foods Pinterest Social Page


Case Study #7“Viral” Branded Humor Via You Tube

Approach:Subtly leverage your brand name by disseminating a humorous viral video with content that is directly relevant to your target audience’s day to day challenges.

Case Study:Blendtec

Their series of videos were seen by 60 million people and increased sales by

20% (at a cost of virtually zero).


Case Study #7 (Cont.) – You Tube – Humorous Video Blendtec Episode – 4,811,914 Views


Initial Customer

“Engagement”


Entertainment

2

3

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”


“Advocacy”

1 4

5

6 Mobility & Mobile

Accessibility

8

7

Personalization &

Customization



Maximization

9


Case Study #8Personalize Via “Augmented Reality”

Approach:

Allow retail customers to upload their picture and then try on clothing “virtually” to see how it fits and how it looks on them.

Case Study:

Retailer Tobi.com


Case Study #8Tobi.com – Augmented Reality to Drive Retail Sales

© Copyright 2011 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending.

The World of Mobile Marketing Mobile Phones Have Surpassed Computers!

Mobile has ramped up much faster than desktop computers did (Morgan Stanley).– In fact, today there are way more mobile phones in the world than

computers (CNBC). Cell phones are now used considerably more for “data” purposes (such as

web browsing, text messaging, e-mail, games, social messaging, music, etc.) than for phone calls (New York Times – 5/13/10).

Smartphone penetration (iPhone, Android, etc.) reached a staggering 50%+ by early 2012 (Nielsen – 2/12).

Today most iPhone users browse the web more on their phones than on their computers (Advertising Age).

There are already over a million iPhone/mobile “Apps” in circulation.

Mobile offers something other marketing mediums cannot… A much higher probability of a message being delivered to the right person at the right time.

Mobile coupons, transparent pricing, and branded mobile “apps” have disrupted retail and drive new traffic and sales (Morgan Stanley).

30


Case Study #9 – “Making Lives Easier” via Mobile & Driving Major Incremental Revenue

Approach:Create a “virtual” grocery store in a high traffic location. Let the store come to the people!

Case Study:Tesco’s Home Plus Virtual Grocery Store in Seoul, South Korea on subway station platforms.– Consumer scans grocery items with their smartphone using QR

code technology.– All items delivered to their door after they get home.– 10,000+ customers in first few months with major revenue

increase.– Now the #1 shopping app in South Korea with 1 million

downloads!


Case Study #9 – Tesco “Virtual” Grocery Store Seoul, South Korea – Subway Station Platforms


Case Study #10“Location Based” Mobile Services

Approach:

Leverage Location Based Services and provide incentives/rewards for people to “check in” with their mobile phone and tell their friends where they are.

Case Study:

Bergdorf Goodman/Neiman Marcus Stores Foursquare Application with Rewards

© Copyright 2011 by Oxford Hill Partners, LLC. All Rights Reserved. The EQ Pulse™ measuring system, methodology, and business process are patent pending.

#10 – Foursquare – Bergdorf/Neiman Marcus Stores – Location Based Mobile Phone – Viral “Check In”

34




Maximization

9


Entertainment

2

3

Word of Mouth &

Viral

Active Customer

“Participation”

Cross Consumer

“Interaction”

7

Personalization &

Customization

Mobility & Mobile

Accessibility

8


“Advocacy”

1 4

5

6

Initial Customer

“Engagement”


Case Study #11Revenue Maximization Via Cross Sell

Approach:

Cross Sell/Upsell Beyond the Initial Intended Purchase

Case Study:

Online Retailer – Amazon.com


Case Study #11Amazon – Revenue Maximization Via Cross Sell


Case Study #12Enhance Existing Customer Relationships

Approach: Leverage e-mails with existing customers that

inform, incentivize, and entertain. Moms sign up and get customized e-mail

tips, tools, and offers/subtle promotions for J&J Baby Products.

“Moms to be” can get ovulation alerts sent via mobile phone text messages.

Case Study:Johnson & Johnson Baby Center


Case Study #12J&J Baby Centre – E-Mail Newsletters


Case Study #12 – J&J Baby Centre“Ovulation” Alerts Via Cell Phone


How to Evaluate Your Existing Social/Mobile Efforts

So how do you know if your company is doing a good job at

leveraging these ten social/mobile revenue drivers and optimizing

customer engagement?


Introducing Our New Patent Pending Solution, EQ Pulse™ - Web 2.0 :

Social/Mobile “Strategic” Evaluation

The first, simple digital analytic methodology that provides a “30,000 foot” view of a brand’s OVERALL use of Web 2.0 marketing mediums including Social Networking, Word of Mouth and Mobile Marketing.

Total EQ Pulse™ - Web 2.0 score measures the overall effectiveness of Web 2.0 digital efforts across all drivers that can potentially increase revenue. Similar to a “FICO” score that measures a person’s credit worthiness.

In evaluating over 160 best practices of the brand’s Web 2.0 digital efforts, we issue separate scores for each of ten, broad Web 2.0 strategic revenue driver categories. These help identify strengths, weaknesses and gaps vs. key competitors and vs. industry best practices.

We explore best practices such as social networking, word of mouth, mobile marketing, blogs, podcasting, online video and gaming, widgets, Facebook and YouTube presence, consumer generated content, community, personalization, wikis, and search 2.0, etc.

We then provide Actionable, Revenue Building Recommendations as well as visual, case study examples.


Westgate Company (EQ Pulse™ - Web 2.0 Example)

average

strong

weak

Initial Customer

“Engagement”

5.5 - Average

1

Customer Entertainment & Education

7.9 - Strong

Personalization &

Customization

8.0 - Strong

7

Mobility & Mobile

Accessibility

5.4 - Average

8

STRATEGIC SCORING OVERVIEW

4

6

3

2

5 “Call to Action” & Revenue

Maximization

6.8 - Strong

Relationship Building & Customer Retention

3.9 - Weak

10

9

Active Customer

“Participation”

4.2Weak

Word of Mouth & Viral

5.7 Average

Brand Building & Branded “Advocacy”

3.9Weak

Cross Consumer

“Interaction”

3.5Weak

Total Scores(1-100 Scale)

Westgate = 52Eastport = 77Midway = 65

Best Practices = 78

52=Inbound To Customer (Brand Push)=

=Outbound From Customer (Consumer Push)


WESTGATE COMPANY (EQ Pulse™ - Web 2.0 Example)Strategic Revenue Driver #3 – Active Customer “Participation”

Westgate(4.2)

Midway(6.2)

Best Practices

(7.9)

Eastport(8.8)

0 105

WeakComments and Analysis: Eastport leveraged extensive online input gathering mechanisms including “Tell Us What You Think of

Eastport.com” links, and “Add Your Own Testimonial” links sprinkled throughout the site. A number of these testimonials were prominently featured on the Eastport homepage.

– Westgate and Midway did not ask consumers for feedback about their products, although Midway did feature an online “poll” about the benefits of the category.

Within the “blogosphere”, Eastport had the most mentions by far with over 2400. Midway had 450, while Westgate had only 33.

– Eastport and Midway’s comments were overwhelming positive, while Westgate’s were somewhat mixed.

– Core negative comments for Westgate revolved around the recent voluntary product recall and long waits for customer service representatives in general.

– Eastport was also the only brand that had their own blog. In consumer generated “visual” media, Eastport had over 500 “YouTube” placements mainly related to

their well known flagship product, some of which were very creative and humorous (Midway and Westgate had 27 and 11 YouTube mentions respectively).

– A recent campaign soliciting consumers to create their own videos generated a substantial amount of free press and goodwill for the Eastport brand.

In consumer generated “text” content, Midway’s website solicited consumers to provide a wide array of created “alternative use” ideas for its premium product.

– Westgate did not solicit any consumer generated content from its customers at all. Across the competitive landscape, only Eastport had a listing in Wikipedia (the listing was fairly

extensive).


Ask Yourself:

Applying These Methods to Your Business

Are you broadening your Direct Marketing efforts with some of the simple social networking and mobile techniques we’ve talked about today?

How do your social networking/mobile efforts stack up vs. your key competitors and the industry?

How well do you take advantage of the ten “Strategic Revenue Drivers.”

Do you feel you are making money?

Take Action: Apply the ten social/mobile strategic revenue driver concepts to

your existing Direct Marketing efforts. If needed, call us to help with a full scale EQ PulseTM – Web 2.0

or EQ Pulse - Mobile Assessment…


Comments or Questions?

Feel free to contact me:

Yosi HeberPresident

[email protected](248) 569-9366

www.oxfordhillpartners.com

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