On Marketing Accountability A Reflection FUTURE LAB Feel free to re-use or mash-up this presentation under Creative Commons 2.0 licence (non-commercial, attribution)

FUTURE LAB Alain Thys: Jekyll or Hyde ? As a retailer/VC/entrepreneur: Double digit ROI As a marketer: Close to € 100,000,000 spent to date, and very little to show for it

Alain Thys: Jekyll or Hyde ?

As a retailer/VC/entrepreneur:

Double digit ROI

As a marketer:

Close to € 100,000,000 spent to date, and very little to show for it

If you think marketing has a corporate image problem FUTURE LAB

Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey CEO/CMO Survey FUTURE LAB

The average tenure of CMOs in consumer markets is 23, 15 or 12 months . Spencer Stuart FUTURE LAB

Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. FUTURE LAB Philip Kotler

Marketers are frivolous and difficult to approach FUTURE LAB Australian Society of Certified Public Accountants

FUTURE LAB Cranfield University Withhold research Take credit for other’s work Lack structure Are always in meetings Work from 10 to 4 Have long lunches Unaccountable, untouchable Seek quick promotions Churn Care about cars, stats and lunch Use jargon Slippery Expensive

If you think marketing has a corporate image problem FUTURE LAB

FUTURE LAB

Who Killed Marketing? A Forensic Investigation FUTURE LAB Photo by ~billysriotgirl0404

Don’t shoot the messenger  Bloody Uncomfortable Confronting FUTURE LAB

FUTURE LAB THE VICTIM Accountability to the Business THE CRIME SCENE Accountability to the Customer THE VICTIM’S WORLD Accountability to the World A Forensic Investigation

FUTURE LAB THE VICTIM Accountability to the Business THE CRIME SCENE Accountability to the Customer THE VICTIM’S WORLD Accountability to the World A Forensic Investigation

WARC, 2007 Which % of marketers define clear objectives for their campaigns? 46% Which % time do Sr. Marketers spend on their media strategy (= largest budget item)? 2% EMM, 2005 Which % of Sales Promotions are Unprofitable? 85% UCLA, 2004 Which % of German TV advertising campaigns generate negative ROI? 82% Deutsche Bank, 2004 FUTURE LAB Accountability to the Business: Making Money A Forensic Investigation

The Reasons: Differing Strategies within the organisation Lack of integrated planning Resistance to Change Unco-operative Retailers Lack of Internal Communication Misalignment between Marketing & Sales Turf Battles Organisational Silos … Source: reveries.com survey, July 2005 – n = 198 US marketers FUTURE LAB Accountability to the Business: Implement Plans A Forensic Investigation

Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance 31% of projects are canceled before completion 53% of projects cost nearly double of original estimates. only 16% of projects come in time and budget. Source: Management Centre Europe FUTURE LAB Accountability to the Business: Implement ... At All A Forensic Investigation

Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance

31% of projects are canceled before completion

53% of projects cost nearly double of original estimates.

only 16% of projects come in time and budget.

FUTURE LAB THE VICTIM Accountability to the Business THE CRIME SCENE Accountability to the Customer THE VICTIM’S WORLD Accountability to the World A Forensic Investigation

ACNielsen, E&Y, 2005 Which is the failure rate of US Consumer Products? 95% Which % of CEO’s believe their brand provides superior customer experience 80% Bain & Company Which % of their customers actually agree? 8% Bain & Company Which % of Germans are irritated by TV advertising GfK Marktforschung FUTURE LAB Accountability to the Customer A Forensic Investigation 78% 88% PVR users adskip

FUTURE LAB THE VICTIM Accountability to the Business THE CRIME SCENE Accountability to the Customer THE VICTIM’S WORLD Accountability to the World A Forensic Investigation

CASE: 25% of all bottled water in the world crosses national borders. FUTURE LAB Accountability to the World: Environment A Forensic Investigation Fiji – New York : 13,000 km by boat & truck 50% of wholesale cost = transportation 1 million bottles/day = own electricity generation in “pristine” Fiji >50% inhabitants do not have reliable drinking water Glass bottle = 5x weight of plastic bottles (transport & energy) 2 liters of water to wash/rinse 1 liter bottle before filling Truck in CO2 from volcanic springwater in Tuscany

Fiji – New York : 13,000 km by boat & truck

50% of wholesale cost = transportation

1 million bottles/day = own electricity generation in “pristine” Fiji

>50% inhabitants do not have reliable drinking water

Glass bottle = 5x weight of plastic bottles (transport & energy)

2 liters of water to wash/rinse 1 liter bottle before filling

Truck in CO2 from volcanic springwater in Tuscany

http://www.youtube.com/watch?v=grH1gK1TpW0 (30 second edit) http://www.youtube.com/watch?v=9uUqPj7FLBE (45 second edit) Abroad At home FUTURE LAB Accountability to the World: People A Forensic Investigation

FUTURE LAB In Your Communication: Neutrality Accountability to the World: People A Forensic Investigation

Do you really believe in what you do? Or do you wear a mask? FUTURE LAB Accountability to the World: The Self A Forensic Investigation

SUICIDE Who Killed Marketing? FUTURE LAB Image: http://snapesluvr.deviantart.com/art/CSI-Springfield-29131429

How can you avoid it happening to you? FUTURE LAB

http://www.youtube.com/watch?v=9MaKHxsGZ-A&mode=related&search= Tom Knows FUTURE LAB

Be Accountable to the business, the customer, the world “ Drive” or prepare to “Be Driven” FUTURE LAB

MEASURE & PREDICT BUDGET ALLOCATION Case: German insurance company Case: Indian Tea company, Greek Telco. Demonstrate Financial ROI FUTURE LAB Accountability to the Business

Make Implementation Happen Align employees, agencies, vendors, retailers, … “ Companies with aligned marketing & sales grow 5.4 % faster are 38% better at “closing proposals” churn 36% less of their customers MarketingProfs Benchmark Report 2005 FUTURE LAB Accountability to the Business

“ Companies with aligned marketing & sales

grow 5.4 % faster

are 38% better at “closing proposals”

churn 36% less of their customers

FUTURE LAB Focus Your Business on the Customer Accountability to the Customer Create Meaningful Propositions Communicate with Respect, Insight, Passion Customer Delight at all Touchpoints

Life Cycle Assessment Create a win-win Aspire Neutrality Demonstrate the Profitability of Caring Accountability to the World FUTURE LAB

Challenge what has stopped making sense Look in the Mirror, Every Day... Accountability to the World FUTURE LAB

Heavy FUTURE LAB but inescapable to address its image problem, marketing needs to become more accountable ... Conclusion: The Tools Exist ... The Choice is Yours

FUTURE LAB To experiment with, learn about and act on marketing accountability: [email_address] SEPTEMBER 2007: M ARKETING A CCOUNTABILITY E X PERIMENTATION LAB (MAX)