the end of mass marketing
TRANSCRIPT
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TheEndofMassMarke+ng
TheBeginningofMarke+ngtoindividuals
Marke&ngtoempoweredconsumers
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Marke+ngtoMarke+ngtotheindividual Itusedtobe..
Yousegmentedyouraudienceondemographics.
Youdevelopedandtestedmarke&ngmessagesforthosesegments.
Youusedmassmediatoeffec&velyreachyouaudience.
Youwaitedforthesalesnumberstoincrease.
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Buttodaymassmarke&ngis
headedtowardsex&nc&on
Consumerswantmorefrombrandsandproducts.
Theyareskep&calthatcorporateAmericawilldowhatisright.
Theyarepurchasingmoreprivatelabelproducts.
TheInternet,andsocialmedia,hasgiventhema
channelwithalotof
power.
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Marke+ngtoMarke+ngtotheindividual Becausecustomersarerealpeople
Iamyourcustomer.Arealperson,ahumanbeing.
Fortoolongyouhavetreatedmeasafacelessnumberandlumpedmeintoasegmentinamassmarket.
Imnotasegment,andIwonttoleratethatanymore.Iamanindividual.
Theremayhavebeena&mewhenIdidnthavemuchchoice,butnowIhavemany
choices,soyouneedmorethanIneed
you.
IhavethepowerIamincontrol.
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Andforthemostpartthey
areignoringyourads
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Theyarealsosmarterandmore
frugalshopperstoday
Astheeconomicdownturnhascon&nued,thepercentofshopperswhotypicallybuythebrandstheywantmosthas
steadilydeclinedacrossthecategoriesexamined.
InMarch2010,lessthan50%ofshoppersreportpurchasingthebrandtheywantmost.
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Withdeeprootedcynicismtowards
companies
58%sampledfeltthatcompaniesareonlyinterestedinsellingproductsand
servicestome,notnecessarilythe
productorservicethatisrightforme.
Only9%trustedcompaniestoalwaysactintheirbestinterestalthoughmore
than50%thoughttheysome&mesdid.
Only5%trustedadver&singand8%whatthecompanysaysaboutitself.
Only17%(10%UK,23%US)ofrespondentsthoughtcompaniestook
noteofwhatthey
Source:Alterian,BrandsatRisk,2010survey
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Its&meformarketerstostop
beingzombies
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Marke+ngtoMarke+ngtotheindividual Andacceptreality
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Marke+ngtoMarke+ngtotheindividual Massmarke&ngisdead..
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Itstartedwiththeendto
tradi&onalsegmenta&on
The+meofmasssocialsegmenta+onisover.Now
peopleareclusteredin
microsegments. Youaremorelikelytohave
moreincommonwithsomeone
youfriendonsocialmediathan
yournextstoreneighbor.
Amarke&ngprogramcanbereallysuccessfulifitreaches
keyinfluencers.
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Isthisaparadigmshi]?
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No,itstheevolu&onof
consumers
Themorechoicespeoplehave,themoretheysegregate
themselvesintosmallerand
smallernichesinsociety.
TheInternethasallowedpeopletoreachouttoeachotherand
becomeapowerfulforceofone.
Therecession,whichistheworstmostofushaveeverexperienced,isleadingtothewayconsumers
shopandthinkaboutthebrand-
customerrela&onship.
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Leadingtopermanentchanges
inconsumerbehavior
Consumerstoday..
makepurchasedecisionsinanaverageof2.6seconds
abandon>50%ofshoppingcartsonlinewithoutevermakingapurchase
knowfundamentallythatpowerhasshi]edfromcompaniestothem,andthey
donto]engivebrandsasecondchance
areyourbusinesssscarcestresourceandmostvaluableasset.
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Timetoshi]focustoindividuals
ratherthanthemasses 20%ofyourcustomersproduce80%
ofyourrevenue
10%giveyou90%ofyourprofit. Asa&sfiedcustomerwilltell3
people,butadissa&sfiedcustomer
willtell
12otherpeople.
Itcost12&mesmoretowinbackdissa&sfiedcustomers
a5%increaseinreten&onwouldincreaseprofits25-55%
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Socialmediaisanimportantpart
ofastrategytoreachindividuals
WhileconsumersconsiderWebsitestobetheplacetogofor
informa&onaboutabrandandpromo&onaloffers,theyfind
Facebooktobetheidealpla@ormforvoicingtheiropinionsand
connec+ngwithothercustomers.
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Whypeopleusesocialmedia
whenitcomestoconsumerbrands1. Shareexperiences.2. Becomebrandadvocates.
i.e.Apple,BMW3. Gethelpwithtechnological
issues.
i.e.Vizio,Nokia,Samsung4. Complainaboutpoorperforming
brands/products.
5. Getspecialoffers/discounts.6. Learnmoreaboutviavalue
addedcontent.
7. Connectwithotherswhohavesimilarinterests.
i.e.Subaru,TrekBikes
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Consumersaresharingopinions
viasocialmediaonCPGs
Whenconsumerswantto"share
opinions/experiences"regardingaCPG
brand;
57%usethebrand'sFacebookpage, 50%itsWebsiteand38%itsTwier
page.
Whentheywantto"connectwithothercustomers,"54%usethe
Facebookpage,48%thebrandWeb
siteand35%theTwierpage.
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Butdontmistakenlybelieve
thatyourbrandneedssocialmedia Isyourproduct/brandworth
talkingabout?
Canyouprovideareason,otherthandiscounts,forpeopletoengagewithyouonsocialmedia?
Doesyourproducto]enrequiretechnicalassistance?
Doyougetalotofcallsfromintocustomerservice?
Arepeopleinterestedinsharingexperiencesofhowtoswhenit
comestoyourproduct.
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Anddontmakethesemistakes
whenitcomestosocialmedia
Don'tthinkyoucanjustpluginandgo. Managingcommuni&esrequiresmorethantechnologicalskillsandso]ware;technology
isjustanenabler.Ifyoudon'thavepeoplewhounderstandyourbusinessandhavethe
skillstofacilitatevibrantdiscussionswithoutdomina&ngtheconversa&onyouwon't
generategoodinsights.
Don'tbelievebiggerisbeer. Companieso]enbelievethatthebiggertheonlinecommunity,thebeertheinsights,
andsotheybuildcommuni&eswiththousandsofmembers.
Infact,largecommuni&esarelesseffec&vethansmalleronesatnurturingrela&onshipsamongmembers,andbetweenmembersandthebrand.Theyaremoretransient,less
"s&cky,"andlesssa&sfyingallaround.Whenthegoalisdeepcustomerinsights,smaller,
privatecommuni&es(upto400members)arebestfordevelopingtrust.
Don'texpectpeopletos+ckaroundfornothing. Communitymembersneedtobenefitfromtheirpar&cipa&on.Tosustaintheirinterest,
designengagingac&vi&es(onlineoroff)thatallowthemtotalkaboutthebrandinthe
contextoftheirlivesandbuildpersonalorprofessionalrela&onships.Givethemwaysto
talkwitheachother,andwithyou.
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Don't"sell". You'dbeamazedathowmanycompaniesgetcustomercommuni&esupandrunning
onlytosabotagethembytryingtoturnthemintoanothersaleschannel.Customers
wanttofeellikeyoumeanit,andtheyknowwhenthey'rebeingsuckered.They'llclam
upassoonastheygetaslicksalesvibe.Buildtrustandyourcommunitymemberswill
tellyoumore-andbuymorefromyou.
Don'tdroptheball. Showmembersthatyouareac&velylisteningandyouvaluethem:contributetothe
conversa&on,buildingontheircomments,andtellthemwhatyou'redoingwiththeir
input.Theworstthingyoucandoisstopengagingwhenyouthinkyou'vegotyour
"answer."Developalong-termrela&onshipwithyourcommunity.Deepinsighttakes
&metoemerge.
Dontmakethesemistakeswhen
itcomestosocialmedia(cont)
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Consumerss&llusebranded
productwebsitestoo Intheconsumer-packaged-goods
(CPG)sector,there'snoshortageof
onlineinterac&onbetween
consumersandbrandsthesedays.
Inthefood/beveragerealm,26%saidthey'dbelikelytogotoabrand'sWebsite,15%toabrand's
Facebookpageand12percenttoa
brand'sTwierpage.
Thepaernwasquitesimilarforhouseholdproducts(26%Website,13%Facebook,12%Twier)
personalproducts(23%Website,13%Facebook,12%Twier)
beautyproducts(26%Website,13%Facebook,11%Twier).
IpsosMarke=ng,ConsumerGoods
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Infactitswhereconsumersgo
firstwhentheywantinforma&on
Whenthepurposeisto"obtain
informa+onaboutabrand
74%saidtheygotothebrand'sWebsite
34%toitsFacebookpage 28%toitsTwierpage. Thenumberswerenearlyiden&cal
whenitcomestogengcouponsor
promo&onaloffers.
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SmartphoneappsaregrowingtooForbrandedcontent
WeseeTideastheauthorityinstainremoval,andwevehadstainsolu+onson
ourWebsiteforsome&me,andwewanted
toextendoutofhometoreachconsumers.
Wesee?Whataboutconsumers?Dotheyreallyneedtotakeupspaceontheir
smartphoneswithanappthatremindsthem
howmuchtheyhatecleaning?
Itmaybedownloadedalotatfirstbecauseitsfreebutitprobablybedeleteda]erashort&me
becauseoflileuse.
Think:Howconsumerswanttogettheirinforma+onandifyourtargetaudienceis
usingthechannel.
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Akeystepinmarke&ngto
individualconsumers:iden&fybarrierstoconversion
Onceyouhaveawarenessandconsumersareconsideringyour
brandthenextstepistodevelopa
decisiontreeanalysis;
Whatproblemsdoesyourbrandsolve?
Whatarethepoten&albarrierstoconversionas
seenbyconsumers?
Whatisbestwaytoovercomethesebarriers?
Whatisthebestchanneltoovercomethesebarriers?
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Overcomingbarriersto
conversion Onceyouhaveiden&fiedbarrierstoconversionusethebest
channeltoovercomethem.
Web:Differenthomepagesbasedonkeywords Web:Intui&venaviga&on(navbasedonthewayconsumersgo
throughbuyingprocesswithobjec&onsovercomealongtheway)
SocialMedia:Solveproblems,talkaboutyourproductinhumantermsnotsalestalk.
Printads:differentprintadsfordifferentpublica&ons.Advetorialsbasedonquality,valueaddedcontent.
Onlineads:contentcustomizedforeachsitebasedonpsychographicsandbehavioraltarge&ngofvisitors.
CRM:extensivedatabasewithcontentthatispulledbasedondataofcustomerbehavior.
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Marke&ngtotheindividualPrintMedia
Dated
Matchtargetmarketdemographicswith
magazinereadersandrunads.
NewMarke+ng
Customizedcontent(notjustads)basedon
psychographicsand
demographicsofmagazine
readers.
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Marke&ngtotheindividualBrandWebsites
Dated
Onehomepageandwebsiteforeveryone.Usesearchto
drivetraffic.
NewMarke+ng
Differenthomepagesbasedonsearchterms.
Uniquenaviga&onalpathsthroughsiteby
microsegments.
Usecookiestorotatecontent.
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Marke&ngtotheindividualSocialMedia
Dated
Usesocialmediaasanotherchanneltosellcustomers.
NewMarke+ng
Usesocialmediatolistentoyourcustomers.
Engageindialogueratherthanmonologue.
Usesocialmediaforcustomerservice.
Createbrandevangelists
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Marke&ngtotheindividualPromo&ons
Dated
Focusonpriceanddiscounts.
NewMarke+ng
Bringpeopletogethertocelebrateyourandshare
brandedcontent.
Customizepromo&onsviaindividualsratherthan
masses.
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Marke&ngtotheindividualSearchMarke&ng
Dated
Bidonkeysearchtermsandpaycostperclick.
NewMarke+ng
Understandwhatyouaresellingandusesearchterms
todrivetospecificcontent
withinyoursiteand
differenthomepages.
Costpertargetedac&onnotcostperclick.
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Marke&ngtotheindividualCustomerService
Dated
1-800#withphonetree Pleasestayonthelineacustomer
servicerepresenta&vewillbewith
youshortly.
NewMarke+ng
CustomerServiceonthecustomersterms. Twier,Facebook,Websiteinstant
chatpop-up.
FAQsupdatedbasedonfeedbackfromcustomerservicepeople.
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Marke&ngtotheindividualCRM
Dated
Customersignsupviawebsiteandreceivesemailswhichthey
usuallyignore.
NewMarke+ng
CRMbasedonprovidingvaluetotheindividualnot2-4segments.
Valuehastobetoconsumersnotmarketers.
Donttrytohardtosell
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Marke&ngtotheindividualTV(isitdead?)
No
TVisgreatforgenera&ngawarenessofnewproductsbutmarketershaveto
movefromapushmessagetoanengagementstrategyonceawareness
hasreachedacertainmeasurable
point.
Thereisverylilecorrela&onbetweenawarenessandconversioneventhoughtradi&onalmediacompaniesandad
agencieswouldhaveyoubelieve
different.
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Buttoomanyimpressioncan
wastemarke&ngdollars
Progressiveinsurancespentover$200millionontheFlo
marke&ngcampaignandtheir
marketsharewentup0.2%Progressiveinsuranceconsidera&onrose23%andits
brandimpressionsroseby18%?
Atsomepointyouhavetoaskcan
webeerspendthemoneyto
convertcustomersthaninterrup&ng
themagainandagainwiththesame
commercials?
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Execu+ononALLconsumertouchpointshastoexceedcustomer
expecta+ons.
Ifyouscrewup,askforforgivenessandmoveon.
Viewyourmarke+ngfromaconsumerspoint-of-viewbut
ensurethatitprovidesaROIfor
yourbusinessobjec+ves.
Staythecourse.Dontletshorttermsetbacksderailyour
marke+ngefforts.
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Customerexcellenceshouldbe
partofacompanyculture
Createsuperiorvalueforcustomersthroughdeeperinsights
andsolvetheirproblemswithyour
product.
Createshareholdervaluethroughsustainablegrowth,enhanced
margins,andareducedriskof
customerloss.
Customervalueisastar&ngpoint-notthefinancialvalueofthe
customertous,butthevalueyou
createforthem.
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About me
Richard Meyer
My CV http://www.richardameyer.com My marketing BLOG http://www.richsblog.com MY DTC BLOG http://www.worldofdtcmarketing.com
hp://www.twier.com/richmeyer
hp://www.facebook.com/richardameyer
hp://www.linkedin.com/in/richardameyer