FUTURELABDon’t Try This At HomeOr actually.....please do!
FUTURELAB Welcome What is this talk about Who am I Who are We Why are we here? A new age of mediaThe death of advertising The Digital trap A new model Relevance Engagement Reputation Finale (Organisation) (Segmentation) Conclusions
FUTURELAB FUTURELABA Personal Introduction Athens Berlin Brussels Bucharest Chicago Hamburg Helsinki Iasi Kiev London Melbourne Miami Milton Keynes Moscow Prague Shanghai The Hague Valencia
FUTURELAB “Like an architect, we add to the vision of our clients and manage their agencies and vendors towards the desired result.” Futurelab International For more information about this Hoornzeelstraat 24 proposal, please contact 3080 Tervuren Belgium Stefan Kolle, Partner T: +32 2 7338332 E: sko@futurelab.net F: +32 2 7065772 M: +32 (473) 888 996 E: info@futurelab.net We are business strategist with a passion for customers, innovation and profit We deliver new profit opportunities through customer-centricity, commercial sense and hands-on innovation12/11/2011 4
FUTURELABThought leadership Recognition • + 10,000 articles • 75-100k regular readers + 3.15.000 views + 10,000 followers Regular speaking & media appearancesWe do more than consult, we want to right what is wrongOpinionated – a desire to make a difference – unafraid to take the high road
FUTURELABWhy are we here?So, you‟re going to tell us we need a social media strategy, right?
FUTURELAB(cc) Lynette Webb, 2006
FUTURELAB The traditional marketingmodel is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2
FUTURELABFlashback 2006:I Am The Media
FUTURELAB Media responded by fragmentingMedia Responded by....fragmenting
FUTURELABAnd there are all these new tools of engagement “The workers should appropriate the means of production”
FUTURELABAnd 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
FUTURELAB Facebook expects its largest user base to come from India in the near future Facebooks user count in India jumped 85% to 34 million as of June this year over the 18 million last year, as per Comscore. The Economic times India 08/11/2011Sure – but all of this is not relevant for India, right?
Awareness, penetration, averagenumber of networks Aware of at least one network 98% Member of at least one network 73% Average number of networks one is 1,9 member of 86% 75% 34% 95% 44%* 1,8 76% 3,4 2,1 98% 88% 3,9 97% 86% 96% 3,1 67%Emerging markets Brazil and 1,5India show the highestawareness and penetration ofsocial networks. * The 44% share of social networkers in China is low compared to other countries. This might be due to the fact that some large Chinese networks (eg RenRen) were not included in this survey.
Daily log on to social media 60% 63% 58% 67% 82% 76% 61%N Europe = 5613 / F = If member of social network(s)
Following brands | Europe in perspectiveEurope has the lowest shareof brand fans, 51%. CompareIndia: 70% follows a brand. Brand followers 51% 60% Average no. of brands followed 12,2 9,3 57% 62% 20,2 7,9 70% 15,6 55% 19,6 55% 8,3 N Europe = 5613 / F = If member of social network(s)
FUTURELABGreat – so now start advertising to them, right?Ah, well, if you must call it spam....
FUTURELAB76% of consumers don‟t believe that companies tell the truth in advertisements Yankelowich,2006
FUTURELABAdvertising Myths1. Frequency is mostly not a driver for action2. There is no golden rule about OTS
FUTURELABAdvertising is a tax youpay for unremarkablethinkingRobert Stephens,CEO, the Geek Squad
FUTURELAB
Image: (c) Adambooth FUTURELAB The Core Issue People who live near train lines adjust to the noise. They do the same with advertising. FUTURELAB
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FUTURELAB FUTURELABTalking about what YOU want to say Interrupting meTreating me like any other 35-45 year old male
FUTURELABFUTURELAB Communication-wise BRANDS HAVE TO STOP BEING NOISE
FUTURELABDigital as the ANSWER TO EVERYTHING?
FUTURELAB2011- onwards? Insert friend movieCan I be your friend?The new paradigm FUTURELAB
FUTURELAB The Sad Reality Many digital marketing herd activities just don‟t cut it either ...FUTURELAB
FUTURELABDifferent 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 BANNER/AD BLINDNESS Only 13% of UK consumers pay attention to ads on social networking sites. NEW !! Source: Ebay Advertising, March 2009 TWITTER SPAM
FUTURELABDifferent 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
FUTURELABPick your diseaseNew technology, same old mistakes
FUTURELABPeople dont want to “socialise” with a brand What do they want? Facilitate their actual needs and desires Provide value; not noise
FUTURELABConsumers expect something for a “like” Expect access to exclusive 58% content, events or sales Expect discounts or 58% EaxctTarget reports that more than six in promotions through Facebook Expect to receive updates 10 (63%) Facebook users who “like” a 47% about the co. to the newsfeed brand or product on Facebook expect Expect the company to post 39% something in return. Results from “The updates, photos or videos to… Expect to share with friends, Meaning of Like” indicate that a leading 38% family and/or coworkers 58% of Facebook likers expect both Expect the name of co. access to exclusive content, events or 37% to show up on my profile sales, and discounts or promotions Do not expect 37% anything to happen through Facebook. Only 37% do not Expect the co. to send more expect anything to happen. 36% relevant… Expect to interact with page 28% owner (e.g., brand, person) Expect the co. to access data 27% in my public profile Expect the co. to contact me 24% through other channels The Social Media Data Stacks
FUTURELABBut they don‟t expect to be spammed! What Constitutes Permission to Market on Facebook? % of respondents, July 2011 Source: ExactTarget You click a Facebook Like The ExactTarget survey found that the button placed by the highest percentage of respondents, a rather 10% 42% 48% company elsewhere on low 15%, “always” expected a marketing the web initiative after liking a company at its You like a Facebook page source, but that dropped to comment/photo/article 9% 41% 50% 10% for a click on a “Like” button elsewhere posted by a company on Facebook on the web. You go to a company Only 9% always expect marketing after Facebook page and like 15% 46% 39% logging a reaction to Facebook content. the company Always Sometimes Never The Social Media Data Stacks
FUTURELABSo, here’s what NOT to try at homeSome worst practice examples old and new
FUTURELABThe Pen Is Mightier Than the LockSoon after the release of the so-calledunbreakable new lock, someonedescribed on a bikeforum how hemanaged to open it with an ordinaryballpoint pen.Though it waited for what some mightsay was too long, the company decidedto recall all the new and unbreakablelocks and replace them .We are accelerating the delivery of thenew disc cylinder locks and we willcommunicate directly with ourdistributors, dealers and consumerswithin the coming days. The world justgot tougher and so did our locks. -KryptoniteResults:Estimated cost for free products exchange: $ 10 million.Image damage for trying to ignore – a multiple of that
FUTURELABLesson Learned?Listen!
FUTURELAB Motrin“hell hath no fury like a mommybloggerscorned”Motrin experienced first hand the powerof social media when it released a TVcampaign that blamed carrying babies ina pouch for backpains, as a strategy tosell pain killers.After a while, the entire campaign washijacked by social media active motherswho found it offensive.Motrin responded by taking down the ad,without engaging in conversation whichonly added to the buzz.Communispace found that the moreemotional responses were about thefirestorm and how Johnson & Johnsonhad responded, not about the actual ad.Results:Motrin pulled the ad, apologized. (perhaps prematurely,– consider the following numbers:Percent of internet users who visit twitter at the time = 0.1%Days that the ad went widely ignored for = 45Mommies youtube videos exposure = less than a 30s cable adPeak number of tweets/hour = 300Estimated % of negative tweets = 35%
FUTURELAB Gap logo redesignGap Inc, puts forth a logo redesign,but is met with severe backlashfrom passionate fans, critics, andmedia on social media channels.There were thousands ofcomments, logo redesign websites,Twitter spoof accounts (over 4000followers) and even Facebookaccounts setup to lead this brandingrevolt and over 626 results inGoogle News on “Gap Logo” frommainstream press. Results: Gap reverted to the original logo
FUTURELABLesson Learned?But dont go crazy
FUTURELAB GoDaddy CEO kills Elephant, loses customersAfter Bob Parsons (GoDaddy‟sCEO) posted a video of himselfshooting an elephant in Zimbabweand then tweeted to brag about it,GoDaddy competitor Namecheapoffered to donate $1 for everycustomer who transferred theiraccounts over, raising over $20.000.for Save the Elephants, aconservation group.PETA and other organizations alsodenounced the move andencouraged customers to stopdoing business with GoDaddy Results: Besides the media backlash, GoDaddy found themselves bleeding customers as competitors jumped at the opportunity, offering discounted transfer fees and also vouching to donate money to animal welfare organization for every new account.
FUTURELAB Milk FailThe Milk Board and their agency, SanFrancisco-based Goodby, Silverstein &Partners, launched a new social mediacampaign, a tongue-in-cheek look at howdrinking “milk can help reduce thesymptoms” of premenstrual syndrome.The campaign, however was targeted atmen, and a micro-site, with the URL“everythingidoiswrong.org,” was set upand labeled for men as “your home forPMS management.” The site waslaunched around two weeks ago andoriginally scheduled to be live through theend of August. The site‟s contentincluded lists of “apologies” that mencould use with women with PMSsymptoms. Results: After just a few days, the Milk Board found themselves in the middle of a firestorm of criticism on Twitter, Facebook, and the blogosphere as women rose up . Even FunnyorDie came up with a vicious parody ripping the campaign. In the end Goodby and the Milk Board took the site down after 12 days and redirected the original URL to a site titled “Got Discussion” where they tried to undo the damage done.
FUTURELAB Kenneth Cole #cairo hijackIn a self-promotional tweet thathijacked the world sensitive #cairotag during the revolution, KennethCole promotes their own springlineup.Immediately, someone setup a fakeKC account (@KennethColePR),which posted ironic tweets such as“People from New Orleans areflooding into Kenneth Cole stores”As a sidenote, the tweet in questionwas signed –KC, meaning it wassent off by the designer himself. Results: KC later apologized via Twitter and Facebook but not before severe SM Backlash
FUTURELABLesson Learned?Understand thesensitivities of youraudience
FUTURELAB Pantene‟s Cause Marketing backfiresA cause marketing style campaignwas launched in the Philippines,asking women to get join aFacebook page called “I Commit toChange“. Once the members joinedthe independent ‟cause‟ Panteneunleashed its branding campaign,promoting their latest products asthe agent of change. Feeling duped,the women responded via socialmedia, posting blogs in which they In all of their actions in the Facebook page including the notesexpressed their discontent at the they said that it was a movement committing for change.ruse. There was not a single mention that it is connected to any commercial product or brand. – Blogger on the ICTC campaign Results: thousands of angry key influencers in the core audience
FUTURELAB HabitatThe stylish furniture maker Habitatjumped on the Twitter bandwagon ina big way but was exposed forspamming. Its self-promoting tweetsthat included popular trending topicsto attract attention.And if including a hashtag# for apopular HBO drama like "TrueBlood" wasnt enough, the companyactually took advantage of themisfortunes of others by including"Mousavi" and the "Iran Election" ontweet updates as well. Results: Retaliating against this form of parasite marketing, the Twitterverse struck back by exposing the practice to Twitters SPAM department.
FUTURELABLesson Learned?Dont lie and cheat
FUTURELABAre we dancing on the deck? So, is it all over now?
FUTURELAB • You can be the answer, not the problemOn the contrary • Re-intermediationIt‟s only just begun! • Curation • Audience Involvement • Audience Management
FUTURELABCustomer Advocacy : Your compass to actionAbout relevance, engagement and reputation
FUTURELABOUR VISION RelevanceFUTURELABRelationshipReinforcement Reputation Engagement Reputation x Relevance x Engagement = $$$
FUTURELAB FUTURELAB 19% of our detractors have an issue with misaligned touchpoints when it comes to complaint resolution.Real life caseMake the customer‟s voice more interesting
FUTURELAB FUTURELAB Real life caseYOU SUCK !
FUTURELAB How often do you and your leaders actually meet with real customers for real conversations?The best way to listen to customersMeet them for real conversations
FUTURELABThought leadership Recognition • + 10,000 articles • 75-100k regular readers + 3.15.000 views + 10,000 followersRelevance in actionAnd give it away (but dont ask for a number)!
FUTURELAB Pay with a tweetInnovative Thunder, a NY basedcreative team, started the pay with atweet project which they describe assuch:“In todays world the value of peopletalking about your product is sometimeshigher than the money you would get forit. „Pay with a Tweet‟ is the first socialpayment system, where people pay withthe value of their social network.It‟s simple, every time somebody payswith a tweet, he or she tells all theirfriends about the product. Boom.” Results: the system was launched along with their book, “Oh My God What Happened And What Should I Do?”. The book got 13.000 downloads in the first 72 hours and 170.000 downloads and tweets in just 6 months. In six months, 400.000+ people paid for something with a tweet or FB post.
FUTURELABHarley Davidson (HD Talking)Harley owners created website andsocial community totally funded byusers and user-generatedcontent. Here, Harley owners tradesphotos, jokes, where to find hard tofind parts, advice on Harley modelsand ownership plus there are at least7 mechanics on-call at alltimes. HDtalking.com now has40,000+ members and cost to Harleyis negligible.
FUTURELAB The North FaceThe popular brand joined Twitter inOctober 2007. However, they had noclear direction until 2008. In 2008, TheNorth Face went to create a free digitaltool that would enhance the user‟soutdoor experience. By December of2008, they launched a free iPhoneapplication. In 2009, they relaunched theapp with the consumers feedback inmind. The new and improved applicationincluded Twitter. They soon realized thatthe best way to leverage Twitter and builda communal following was to promoteThe North Face branded content..Serving up industry information to theirTwitter community, they quickly increasedthe following, and saw a steady flow ofre-tweets, which spurred communityinteraction. Results: several related apps for download now; combined downloads of several million apps
FUTURELAB FUTURELABBrands seek loyalty for lifeTrust us - Engage with us - Become an Advocate - “Love Us”
FUTURELAB FUTURELAB • Seduce & Forget CampaignsBut in Reality they behave like a • Loyalty Scams • The New Customer is PrettierOne Night Brand • • Join This Week‟s Community You are just a segment
FUTURELAB FUTURELABAfter the lies, the forgetting, the disregard, the customer promiscuityWould you still “engage”?
FUTURELAB FUTURELABTo build buzz for next years adcampaign, The Australian FinancialReview recently used a competitionto crowdsource ad copy fromreaders. Dubbed Write Our Next Ad,the brief was for a short, sharp,clever ad that would resonate withthe audience and promote thebenefits of regular readership, whilereflecting the brands focus onleadership, strength and inspiration.Over 13.000 entries weresubmitted.Write our next ad…campaign...businessplan for us.
FUTURELAB FUTURELABWiserPregnancy aims to help usersmake informed decisions byshowing them what others havedone in their own situation,including the choices they made,their rationale, the outcome of thosechoices, and how they felt about itafterward. The searchable includesdata from thousands of womenabout more than 600 choices thatcan be faced while pregnant. Wiser Pregnancy: jointly develop the content
FUTURELAB FUTURELABA community website where peopleafflicted with certain illnesses canread all about the experiences ofother people as well as share theirown experiences. The purpose,then, is to allow users to interactwith one another, track howtreatments are working for othermembers, and explore the sideeffects patients are seeing withcertain treatments.Patients Like Me: joint development
FUTURELAB FUTURELAB Missha‟s StoryThe South Korean cosmetics firmMissha started as an online retailerbefore opening storefronts, andfrom the beginning it invited itscustomers to provide substantivefeedback – about products,packaging, pricing, image – in short,everything.What Missha found should not havebeen a surprise, but it was new tomany: its customers had a lot to sayand they liked being asked. Results: During a period of five years, Missha has built a customer base of more than 1.8 million customers who are actively engaged with determining the company’s future.
FUTURELAB FUTURELAB Amateur OutsidersIn Brazil, Kaiser Beer embarked ona CUSTOMER-MADE adventurelast year by asking their customersto co-create its Kaiser Novo Sabor:a new premium beer reflecting theopinions and personal tastepreferences of more than 11,000contributors in 130 cities acrossBrazil. Results: The beer was an instant hit, with the initial 11,000 contributors eager to play the role of brand ambassador. (Source: Springspotter Network, Paula Rizzo)
FUTURELABFiskars – use your fans300 year old Finnish company that makesfine cutting tool created onlinesocial community of crafting enthusiastscalled “Fiskateers” to build relationshipswith the underutilized channel of smallretailers for a 3X increase in companysales.
FUTURELABSocial gaming
FUTURELAB FUTURELABIt is not only fat sociopathic 16-year-olds with acne You think “people like us” or “our women” don‟t play?http://mashable.com/2010/02/17/social-gaming-survey/
FUTURELABWho do you trust? Survey Methods Results are based on a Gallup Panel study consisting of web surveys completed by 17,254 national adults, aged 18 and older. Respondents were deemed proficient internet users based on their ability to complete the survey via the web. The study was conducted in September and October 2010. Gallup Panel members are recruited through random selection methods. The panel is weighted so that it is demographically representative of the U.S. adult population. For results based on this sample, one can say with 95% confidence that the maximum margin of sampling error is ±1.43 percentage points. Margins of sampling errors vary for individual subsamples. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.
FUTURELABKnow who the influencers are for your customers!
FUTURELABThe Power of Recommendation1955 1967 1983 2001 2007Word-of-mouth is 7x more effective than newspaper advertising,5x stronger than a personal sales pitch and 2x as effective asradio advertising Marketing Science Institute, 2006 This is not exactly news....
FUTURELAB Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & CompanyHow likely are you to recommend ?0 1 2 3 4 5 6 7 8 9 10
FUTURELABWhich provides for a simple, yet effective approach to customersegmentationDetractors (hate you) Passives (don’t care) Promoters (ambassadors) Different economic behaviour + the value of word-of-mouth = substantial profit impact
FUTURELAB Those who speak well about you are more profitable Lifetime customer value Happy customers = more profit -They spend more -They negotiate less Average -They stay longer customer -They are easier to service -They upgrade quicker -... 0 1 2 3 4 5 6 7 8 9 10Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
FUTURELABCustomers that are so happy that they‟d recommend yourbusiness to a friend, colleage or family member … spend more negotiate less stay longer as customers are more open to upselling are easier to service upgrade quicker are ready to refer to others 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)
FUTURELAB Go forth and discover this wonderful brand!Once the basics are sortedYou can start activating promoters
FUTURELAB THE ACTIVATION CHALLENGE Are you likely to Do you actually recommend? recommend? YES !! NO What goes wrong ?That‟s not the whole storyYou can start activating promoters
FUTURELAB Mmmhhh … I‟d like some of that … I just have to tell you about Stefan…Let‟s stay “in theme” with a case studySay I seek promoters for my skills as a lover.
FUTURELAB Which would be the most effective method To turn you into a promoter for my skills as lover.Direct Sales? Advertising? Sales Promotion? Recommend a friend & get e-coupon www. greatlover 60 Minutes Extra .com This voucher cannot be combined with other promotions. Hi, I‟m a great lover. Tell them he‟s a 2-for-1 Promo Bring a friend & collect Would you mind great lover!! double loyalty points to telling your friends? get those wine glasses! FUTURELAB
FUTURELABIf it doesn’t spread … it’s dead.Customer delight stories need to memorable, but also worth mentioning
FUTURELABIf you want me to talk about youTell me a storythat makes myconversations(and me) more interesting.
FUTURELABTell your story so it can be told
FUTURELABFor exampleRandom Acts of Kindness
FUTURELABRandom acts of kindness In September 2010, Interflora (www.interflora.co.uk) launched a social media campaign in the UK designed to brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitored Twitter looking for users that it believed might need cheering up. Once found, the users were contacted directly and sent a bouquet of flowers as a surprise.
FUTURELABIf you want me to introduce you to my friendsGive me toolsthat demonstrate my value to myfriends, colleagues and family
FUTURELAB We have a superpromoter who already sold 7 shavers because he wants to offer his friends the joy of a Philips shaver. Our job is to help him help his friends.Mechanisms to spread the wordCase: Philips consumer products FUTURELAB
FUTURELABIf you want me to introduce you to my friendsJust ask meYou’d be surprised how easy it isto get me to talk
FUTURELAB• After customers pay, have waiters ask if they would recommend. If they say yes, give them a voucher for the person they want to recommend to – and make it shareable online• Let them invite their friends to a testdrive; give away a testerpack of beers; give a gift subscription – but just ask them who it should be given to: Just ask.... Both in social media and real life – ask them!
FUTURELAB Prescribe the NationThe idea behind the project was togive Vaseline Clinical Therapy lotionto one Alaskan woman and to askher to lather it on everyone sheloved.The people she gave the product toloved it, and then they gave theproduct to people they loved, whogave it to people they loved, and soon.This is the essence of word ofmouth. Now, to make this Alaskannetwork go even further, Vaselinehas created a website to show uswhose hands our main character,Petal Ruch, was able to soften. Results: 1,000 of her community‟s 6,000 residents switched to Vaseline Clinical Therapy lotion. In 30 weeks of campaign, 3,000,000 people around the world have been “prescribed” Vaseline Clinical Therapy
FUTURELAB But how will I control all this? This freedom will lead to thousands of inaccurate and divergent conversations.12/11/2011 94
FUTURELAB The Answer You don‟t12/11/2011 95
FUTURELAB Timecheck hidden slides Their intentions may be pure They may just be having a bad day They may not see the (potential) harm in what they‟re doing BUT EVERYTHING THEY SAY SHAPES YOUR BRAND So be tolerant – and be ready...So dont even try...You cannot “control” every message Sources: http://blogs.forbes.com/markpasetsky/2011/02/03/news_kenneth_cole_egypt_tweet_19871/ http://jalopnik.com/#!5780113/chrysler-loses-control-of-twitter-account-drops-f bomb http://www.autoblog.com/2009/09/03/honda-purges-some-comments-from-crosstour-facebook-page/
FUTURELAB Make sure you get the basics right Integrate throughout the company Give your people space and pride Give room to the voice of the customer – by listening but also taking it into the boardroom and the rest of the company Dont do „campaigns‟ – this is about behaviour and quality Start with an insight, not an idea Provide value, not noise Build relationships Happy customers bring more money and more customers Go for the influencers – and turn them into promoters Through Relevance; Engagement, reputation Conclusions – in random order Yes we can
FUTURELABOr in a nutshellWhat does this do for the customer? How will it delight him? How will it encourage him to advocate us?
FUTURELAB KLM SurpriseKLM wanted to reach out to KLMpassengers in the real world toreward them for flying with KLM.They monitored check-ins onFoursquare at KLM locations anddid some social media monitoring tofind the people that mentioned KLMin their check-in. When they had apicture of who the person was, theiractivities, interests andpersonalities, they hunted themdown, bought them a small gift, andgave it to them as they waited fortheir flight. But people still hate the company!
FUTURELABRight at every conceivable level – best practice overall!
FUTURELABA final word of cautionPay enough – and change your password!
FUTURELABDont try this at home!Questions? sko@futurelab.net
FUTURELAB @FLB_StefanKolle www.futurelab.netYOUR FREE E-BOOK DOWNLOAD ON:http://tinyurl.com/65969kgAvailable via
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