The presentation as delivered for Jeugdwerk Vlaanderen on May 4th, 2011

1. Een andere kijk op marketing Een sessie voor Marketing Stratego

2. We are Futurelab FUTURELAB

3. FUTURELAB Athens Berlin Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev London Melbourne Miami Milton Keynes Moscow Prague Shanghai The Hague Valencia A Personal Introduction

4. We are business strategists with a passion for customers, innovation and profit We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation “Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.” Futurelab International Hoornzeelstraat 24 3080 Tervuren Belgium T: +32 2 7338332 F: +32 2 7065772 E: info@futurelab.net For more information about this proposal, please contact Stefan Kolle, Partner E: sko@futurelab.net M: +32 (473) 888 996 6/05/2011 4

6. 75,000 regular readers+ 100,000 readers + 10,000 followers Regular speaking & media appearances

7. FUTURELAB Welcome to the Marketing Revolution Of..’hoe word ik minder ambetant ‘? 

9. “You can’t bore people into buying your product – you can only interest them”

10. "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 3.0, Megaqwerty

11. 76% of consumers don’t believe that companies tell the truth in advertisements Yankelowich,2006

12. AdvertisingMyths 1. Frequency is mostly not adriver for action – on the contrary 2. There is no golden rule about “6 OTS”

13. FUTURELAB So, what do we do? We are yelling louder and LOUDER

14. But…. People who live near train lines find ways to adjust to the noise ... Consumers have begun to treat encroaching advertising just like those trains.

15. Last Year Advertisingis a taxyoupay for unremarkablethinking Robert Stephens, CEO, the GeekSquad

16. “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

17. The answer ... go socio-digital.....right?

18. FUTURELAB After all, there is an ever expanding universe to play with “The workers should appropriate the means of production”

19. FUTURELAB And engagement goes deep ... very deep 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

20. The Sad Reality Many digital marketing herd activities just don’t cut it either ... FUTURELAB

21. Banner blindness 1998!

22. Contextual advertising ...has just died

23. 62% % of marketers advised by agencies to advertise in games/virtual worlds 87% % asked to start/increase viral marketing spend on social networks 93% % told by agencies to begin/increase viral video spend Marketing Sherpa Ad:tech survey Lemmings?

24. The Advertising Technique Hype Cycle Isnt there a bit much? Hey, actually this is cool Hmm – what’s this? Naah, cant measure it Sooo 5 minutes ago

25. FUTURELAB Different Channel, Same Problem 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. BANNER/AD BLINDNESS NEW !! TWITTER SPAM Source: Ebay Advertising, March 2009

26. FUTURELAB 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

27. FUTURELAB “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 “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

28. Is it all over?

29. It’s only just begun

30. FUTURELAB Across the board ... MarCom Needs A Reboot

31. Image: (c) Adambooth The Core Issue People who live near train lines adjust to the noise. They do the same with advertising. FUTURELAB

32. FUTURELAB BRANDS HAVE TO STOP BEING NOISE Communication-wise

33. FUTURELAB Imagine instead … Getting consumers to embrace the message

35. General Hospital (11,800 episodes)

36. The Matrix

37. Star Academy

38. Fan Protest Save Jericho

39. Harrypotterfanfiction.net (54,000 stories)

40. Of Gods and MenIt can be done

41. FUTURELAB Talking about what YOU want to say Interrupting me Treating me like any other 35-45 year old male

42. Relevance Engagement Reputation Relevance C u s t o m e r J o u r n e y € Engagement Reputation FUTURELAB

43. OUR VISION ON MARKETING Relevance C u s t o m e r J o u r n e y FUTURELAB Relationship Reinforcement Engagement Reputation Relevantie x Interactie(?) x Reputatie = $$$

44. Relevance Engagement Reputation Relevance C u s t o m e r J o u r n e y € Engagement Reputation FUTURELAB

45. To make me pay attention, stop looking at yourself BRAND-CENTRIC COMMUNICATION PLANNING HUMAN-CENTRIC COMMUNICATION PLANNING 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.

46. FUTURELAB Illustrating the point How to advertise at a busstop?

47. Brand/Media-Centric Communication Planning You need to get extreme to get noticed FUTURELAB

48. FUTURELAB relevance = f(personality, need, situation) Human Centric Communication Planning What would this boy want to hear?

49. Human Communication Planning A World of Opportunity 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 Books & Magazines Mobile Television Social Applications Story Posters Busstop Conversations Mobile Games FUTURELAB

50. FUTURELAB relevance = f(personality, need, situation) When it comes to marketing communications Don’t look at the box, look at the person

51. Welcome to the Marketing Revolution Introduce Human-Centric Communication Planning 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. STRUCTURAL SOLUTION Establish a “human driven” communication planning model Why would he pay attention to me? FUTURELAB

52. INSIGHT Understand what truly drives your customers FUTURELAB

53. What is my customer trying to tell me?

54. 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

55. Choice drivers and decision makers

56. Purchase “could I afford it” “is it easy to buy” Preference “does it look nice” “is it a good drive” Repurchase “is the quality good” “repair service ?” Loyalty “Will they give me a good fleet deal” Advocacy “Do other people think I’m cool” For every step of the journey

57. 50 The Customer Journey 6/05/2011

58. 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? 6/05/2011 51

59. I dream of going on holiday I research my holiday I plan my holiday I select my holiday I purchase my holiday I receive travel documents & tickets I anticipate departure I prepare my trip I travel to my destination I discover my destination I experience my destination I record my memories I share my experience I travel back home I share my memories 15 steps whentaking the customer perspective 6/05/2011 52

60. Case: An Automotive Brand The Traditional Perspective The Customer’sReality Search Evaluate Try Select Wait Search *** *** *** *** * * * = Confidential Radical new perspectives

61. Case: Professional Services The Traditional Perspective The Customer’sReality Latent Problem Self-study Discuss @ office Informal RFI RFP Prep RFP … Radical new perspectives Denkookoverheid/subsidies/partners etc!

62. Wat is de levenscyclus van jullie doelgroepen? En wie zijn de beinvloeders? En wat beweegt hun om van stap naar stap te gaan? BRAINSTORM Huiswerk Invloed Drivers Invloed Drivers 6/05/2011 55

63. Understanding whatcustomersreally care about How do youdelight?

64. How do youdelight 6/05/2011 57. Create “little wows” wherecustomers care most … They are your platform foradvocacy. Ensure satisfaction at every step of the customer journey

65. Relevance Engagement Reputation Relevance C u s t o m e r J o u r n e y € Engagement Reputation FUTURELAB

66. FUTURELAB Brands seek loyalty for life Trust us - Engage with us - Become an Advocate - “Love Us”

68. Loyalty Scams

69. The New Customer is Prettier

70. Join This Week’s Community

71. You are just a segmentBut in Reality they behave like a One Night Brand

72. FUTURELAB After the lies, the forgetting, the disregard, the customer promiscuity Would you still “engage”?

74. Build customer life-time communication plans rather than campaigns

75. Change your budget and people structure to accomodate this changed reality.FUTURELAB

76. Social Media.... “The workers should appropriate the means of production”

77. Super Engagement - Games Grootste tijdsbesteding – grootste concurrent?

78. Gaming – ook in Belgiecruciaal

79. Facebook Games (maarookNetlog, Hyves, Etc)

80. They can be small, too!

81. Out of 90 mlnFarmVille and FrontierVille players about 25 mln are playing at any second of the day There is someone in this building playing right now

83. 500,000 plays in first six weeks

84. Development cost = $ 25,000

85. Cost per play = $ 0.05 with “significant effect on sales”Source: And now a game from our sponsor. The economist, June 9 .2005 1st year: 14 Million unique, 400 mm Hits Advergames – the game IS the ad

86. Serious games: Games with a purpose

88. 100% attention and concentration on the screen

89. High user relevance and engagement

90. Educational value for young and senior population

93. Further localizations of worldwide games

94. Local developers / social networks

95. Pay-per-performance deals

96. Real world connections

98. Its easy to get the wrong tone of voiceIn-game (online) advertisement SWOT

99. Gamification

100. Het is aan jullie: Gaming Brainstorm Verzin een concept dat jullie propositie in een game onderbrengt

101. Relevance Engagement Reputation Relevance C u s t o m e r J o u r n e y € Engagement Reputation FUTURELAB

102. FUTURELAB  Which technique would work best? If I wanted to convince you of my skills as a lover BUILD A REPUTATION ADVERTISING DIRECT SALES www.greatlover.com He’s a *great* lover !! I’m a great lover ...

104. 84% of opinion leaders 35-64 recommend companies that they trust to people they know. 37% write “emails of support”.

105. 78% share their negative company opinions with others. 44% write emails complaining to the media, a politician or an official third-partySource: Edelman Trust Barometer 2008 FUTURELAB

106. Recommendations Matter 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 FUTURELAB

107. The word of a tribesman has more value than that of a stranger Paleolithic (stone) age “hunter-gatherer” Writing Info Age -500 -50 -3500 -2,000,000 Print FUTURELAB

108. FUTURELAB The value of a reputation Show Me the Money !! Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

109. Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company How likely are you to recommend ?

110. 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

111. Happy customers are more profitable Thinking beyond“word-of-mouth”

113. negotiate less

114. stay longer as customers

115. are more open to upselling

116. are easier to service

117. upgrade quicker

118. are ready to refer to others

119. 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 …

121. They negotiate less

122. They stay longer

123. They are easier to service

124. They upgrade quicker

125. They bring their friendsDisguised €42,000 € 9,000 € 3,000 Detractors Neutrals Promoters

126. Customer EconomicBehaviour: Allianz Insurances Promoters defect less Promoters buy more Promoters drive business Indexed average gross premium volume cancelled per customer per year Indexed average of newly concluded gross premium volume per customer per year Indexed average new GPV generated through recommendation per customer 100 Promoter Detractor 100 83 Detractor - 100 Promoter - 271 -200 Promoter Detractor Source: The Customer Focus Initiative, Allianz, 2006 An approach that uncovered very interesting results ... 6/05/2011 85.

127. LEGO - NPS Looking at expenditure on LEGO, over the same time period customer spend was as follows: Promoters spent 208 Euros Fence Sitters spent 165 Euros Detractors spent 136 Euros So, 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: Results Each Promoter brings an additional $693 in revenue Each Detractor is responsible for $1,495 in lost revenue So the difference between a Promoter and a Detractor was almost $2,200. 6/05/2011 86

128. www.netpromoter.com Hoe de vragen te stellen: Vraag 1:“Op eenschaal van 0 tot 10, hoe waarschijnlijk is het dat je ‘ons’/’dit product’ zouaanbevelenaaneenvriend of familielid?” (alszakelijk– ‘aaneencollega of vriend’) Vraag 2: Waaromgeef je preciesdeze score? Vraag 3: Wat is het ene ding dat we zoudenmoeten/kunnenverbeterenomeenhogere score te krijgen? Vraag4: Weet je nogwiejoubeinvloedtheeftomhier ‘te kopen’/’lid te worden’ Eventueeldezelfdevragenstellen over de ‘competitie’ Doe eensimpele NPS test– tussen de 40 en 100 interviews

129. 88 NPS survey Implement initiated action Prepare and analyze results Initiate Quick Fixes Execute Feedback Calls Plan and initiate concrete actions Derive recommendations for improvement Closed loop approach 06.05.2011

131. Marketing

132. Product mix

133. Services Recommend you more than the competition Recommend you less than the competition Denkdusvooralookaanouders/sponsors/partners/subsidieverstrekkers/etc Low Engagement High Engagement

134. THE ACTIVATION CHALLENGE Are you likely to recommend? YES !! Do you actually recommend? NO What goes wrong ? Getting People to Recommend You 6/05/2011 90

135. Ifitdoesn’t spread … it’s dead. Customer delightstoriesneedtomemorable, but alsoworthmentioning

136. 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."

137. Ifyou want me to talk aboutyou, make myconversations more interesting Delight is notenough

138. Re-enforceand “anchor” moments of delightwithmessagesthatdifferentiateyour company.

140. Member get member. Hou op basis van die bonnen (of anderemethodiek) bijhoeveelaanbevelingenergedaanzijn.

141. Maak het concreet en direct. Leg uitwat je wilt en waarom. Be concrete and specific – ask!

142. Use storytelling techniquestoensureyour brand benefits are easy torememberand talk about. Re-enforceand “anchor” moments of delightwithmessagesthatdifferentiateyour company.

143. 97 Tell your story so it can be told 6/05/2011

144. 98 Tell your story so it can be told 6/05/2011

145. ‘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.

146. 6/05/2011 100. Createunfinishedexperiencessopeoplecantelltheirownstoriesandimprovisearoundyour company. Use storytelling techniquestoensureyour brand benefits are easy torememberand talk about. Re-enforceand “anchor” moments of delightwithmessagesthatdifferentiateyour company.

147. Unfinished Experiences: The Element of Surprise “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.” 6/05/2011 101

148. Random acts of kindness 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." 6/05/2011 102

149. FUTURELAB Welcome to the Marketing Revolution To contribute to the revolution, get in touch: sko@futurelab.net or @Futurelab

150. Your competition could be anyone – but so could be your partners! Redefine your competitive space

151. Een andere kijk op marketing Questions? sko@futurelab.net