Smlxl On Engagement

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A presentation that provides some insight into what is driving the current communications revolution. Such insight is important as it enables us to understand why business and marketing will never be the same again and why the term social media is a poor substitute to what is actually happening; a re-negotiation of the power relationships between; people, the media, organisations and even governments.

Alan Moore
SMLXL

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Smlxl On Engagement

  1. 1. SMLXL : on Engagement Creating customer and shareholder value in the digital age “What information consumes is rather obvious. It consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention ... The only factor becoming scarce in a world of abundance is human attention.” Herbert Simon – Economist
  2. 2. www.smlxtralarge.com | info@smlxtralarge.com 3 You can’t deviate. A linear process does not allow it 2 Our industrial mass media world is also linear, straight, fixed with its own rules, logic, philosophy and business models. 1 the only straight lines made in nature are made by man
  3. 3. Yet nature is not like that. Its more nuanced, more complex, more interconnected and networked, perhaps even more beautiful - As John Stuart Mill wrote in On Liberty in 1859 “Human nature is not a machine to be built after a model, and set to do exactly the work prescribed for it, but a tree, which requires to grow and develop itself on all sides, according to the tendency of the inward forces which make it a living thing.” The network is a pattern that is common to all life - but why is that important? www.smlxtralarge.com | info@smlxtralarge.com
  4. 4. Because we live increasingly in a digitally interconnected and networked world. This is an image of what multiple social networks look like. And it has been created by the hundreds and thousands and millions and billions of social interactions created and made by individuals, within their overlapping communities everyday of their lives. We are rapidly moving to a world where everyone can be con- nected and by 2015 five billion people will be connected - that is a 100 fold increase in networked traffic. Networks Economic, Cultural and Media are becoming the nervous system of society. This suggests that our: society, media and communications is evolving from the straight road of an industrial era to the more complex and networked world that mimics nature. Our new media world isn't about content and distribution. It is about people, connections and social networks. If we accept that as a truth then that truth changes what we make, how we make it and how in fact we market and communicate with our customers. 1). The change is structural 2). It requires a new logic www.smlxtralarge.com | info@smlxtralarge.com
  5. 5. www.smlxtralarge.com | info@smlxtralarge.com But what underpins all this networked conversation and information production? What is the fundamental driver to this epochal change? Is it technology? Well in a word – No – Human beings are a We species, we have an innate need to connect and communicate, and today we have been given the tools to take back control of that fundamental need.
  6. 6. People are happier when they commune together It is proven that people are much happier when they commune together. It is why we see the rise of the festival in the post- modern era. People wishing to commune together for a common purpose. And it is something that modern media and communications has often overlooked. Barbara Ehrenreich in her book Dancing in the Streets writes... At some point, in town after town throughout the northern Christian world, the music stops. Carnival customes are put away or sold; dramas that once engaged a town's entire population are cancelled; festive rituals are forgotten or preserved only in tame and truncated form, the ecstatic possibility, which had first been driven from the sacred precincts of the church, was now harried from the streets and public squares. The loss, to ordinary people, of so many recreations and festivals is incalculable, and we, who live in a culture almost devoid of opportunities either to “lose ourselves” in communal festivities or to distinguish ourselves in any arena outside of work, are in no position to fathom it. We just get drunk instead
  7. 7. Community & Identity We have always had community. Pre-industrialisation, Me we were tied to our communities by geography and ? external forces shaped our identity. I live in an old agricultural village called Over about 15Kms from Cambridge. 200 years ago I would have grown up in the Self village, worked on the land and probably never travelled the 15Kms to Cambridge. My identity would have been Single Many completely shaped by the immediate external forces around to me. Extensive research tells us that as economies become more affluent, more mobile and more urbanised - the Family values of society change and we start to de-couple from Community those external forces that had shaped our identities for Other millennia. www.smlxtralarge.com | info@smlxtralarge.com
  8. 8. Challenging the architecture of authority So from the late 50’s we get a creative explosion: Rock‘n’Roll, experimentation with religions, with drugs, we get the civil rights movement, the Paris riots of ‘68. We are challenging the fixed orthodoxies of control www.smlxtralarge.com | info@smlxtralarge.com
  9. 9. Identity in a post-modern world An oft overlooked fact when people bang on about social networking, mass collaboration is the core and central driver as to why its happening at all. We know that we are a WE SPECIES - But In a post-modern world where our identities are not constructed and defined by, tradition, geography, and economics. We can have many selves, as we undertake a quest for self identity. This is described as Psychological Self-Determination the ability to exert control over the most important aspects of ones life, especially personal identity, which has become the source of meaning and purpose in a life no longer dictated by geography or tradition. As a consequence of this people seek out those things that mean the most to them. In a digitally connected world we go where ever we want to to find those things that enable us to construct our identities. This is the central underpinning and driving force of social networking, mass collaboration, participatory media, culture etc.
  10. 10. www.smlxtralarge.com | info@smlxtralarge.com Communities of affinity form around issues that are highly motivating to each individual, it has its own theory called Group Forming Networks and it has some important implications. 1. How brands and businesses will be built in the future 2. How we attract, define and measure the audience 3. How knowledge and information will be created and shared in a world that has no barriers to time or space Food Green concerns Ethics Values Passions Group Forming Network Theory Desires Health Developed by David Reed outperforms the law of the mass media and the law of networked computing Sustainability Organics
  11. 11. * Nobody is as clever as everybody in the world of Generation “C” - the Community Generation communities dominate brands 2005 Professor Henry Jenkins of the Comparative Media Studies Program at MIT articulates a world in which young people have a very * different relationship with media consumption. This is the migration from consumption as an individual practice to consumption as a networked practice – When people consume and produce media together, when they pool their insights and information, mobilise to promote common interests, and function as grassroots intermediaries – rather than talking about personal media, perhaps we should be talking about communal media or social commerce that becomes part of our lives as members of communities – If we accept Jenkins world view, this has profound implications on how we reach out and attract our customers, talk to our suppliers and how we create value. It was Jonathan Schwartz that said our 1000 bloggers at Sun have done more for this company than a $1bn ad campaign could have ever done. This is participatory culture at the coalface. Or we could reference wikipedia, SIPHS in academia, World of Warcraft, Pop Idol, the Matrix, Citizen Journalism or social commerce platforms like Zopa, ebay, or Spreadshirt.
  12. 12. Manuel Castells argues that the central technology of our time, communication technology, relates directly to the heart of the human species: conscious, meaningful communication. It’s a We Media for a We Species
  13. 13. Companies are from Mars & Customers are from Venus “ If you had described today’s world to any five reasonable people sitting around a table in the year 1910 – before the real consolidation and diffusion of the then revolutionary new enterprise logic called managerial capitalism – they would have dismissed that description as utopian. The levels of education, health, recreational activity, living conditions and affordable goods that a majority of people in the developed world enjoy today would have seemed truly outlandish. Similarly in today’s world, a support economy seems too good to be true because it is interpreted through the lens of the now outdated enterprise logic of managerial capitalism. People have learned to expect adversarialism from corporations, and corporations have learned that they can get away with indifference, neglect, and exploitation of their end consumers”. SOSHANA ZUBHOFF - THE SUPPORT ECONOMY
  14. 14. www.smlxtralarge.com | info@smlxtralarge.com Storming the Bastille Once you have stormed the Bastille, you don’t really want to go back to your boring day job. In this instance, the day job is the consumer as an; uninformed, unconnected, passive, ignorant, non-participative, controlled individual that will happily consume what is put in front of them. It is in fact an evolving historic act of liberation. Social networking is bigger than the Industrial Revolution Business week – 2006
  15. 15. If we accept that as a truth, then that truth changes; what we make, how we make it, who we make it with and how in fact we market and communicate with each other. This has significant effects on our society, culture and economics. Gartner says for example that our current banking system will look nothing like it is today within ten years, this also goes for all media, organisations and institutions. Price Waterhouse Coopers report that consumer conversations will fundamentally transform business. It requires a new logic, a new language and a new philosophy - which is what we call Engagement. www.smlxtralarge.com | info@smlxtralarge.com
  16. 16. POWER PLAY The greatest shift of economic power for 150 years underpinned by 5 seismic shifts. This is not just about outsourcing or cheap imports, it is about an awareness of a different world* 1). Demography – how do we reach the “new old”? 2). The environment – we all want to be greener 3). Globalisation – power shifts to Asia 4). Technology – towards a global level playing field 5). Government – spend less regulate more * Hamish McCrae: Economics Editor - The Independent Newspaper
  17. 17. t h e im plic ation s 1 The fight for economic survival 11 The fight for resources 111 The fight for talent – and for the best educated young 1v The fight for the space of mind of consumers www.smlxtralarge.com | info@smlxtralarge.com
  18. 18. the era of set-piece competition is over www.smlxtralarge.com | info@smlxtralarge.com
  19. 19. The change is transformational for organi- sational structures as well as it is to how companies interact with their audiences, customers, and stakeholders and as Darwin said “it is not the strongest or the most intelligent that survive but those most adaptive to change.”
  20. 20. So - What else drives our society ? - The rise of the professional amateur - The fundamental need for story telling eg. You Tube - & being part of history - Transparency - & Trust www.smlxtralarge.com | info@smlxtralarge.com
  21. 21. 25% of all entertainment will be made by us in 2012 - Every minute 7 hours of audio- visual content is uploaded to YouTube. The implications of this are profound www.smlxtralarge.com | info@smlxtralarge.com
  22. 22. www.smlxtralarge.com | info@smlxtralarge.com There are twice as many mobile phones in the world as there are tv sets. It is defacto a Mass Media - it allows us to deliver information and communications that is: 1). Timely 2). Relevant 3). Contextual Mobile : the 7th Mass Media
  23. 23. Recounting the audience through digital footprints Today we leave digital footprints - and therefore we recount the audience to a degree of accuracy never before thought possible this is called Social Marketing Intelligence. And we need to rethink and create a new set of metrics. Based upon not cpm’s or cost per thousands but Cost Per Relevant Audience - CPRA. www.smlxtralarge.com | info@smlxtralarge.com
  24. 24. Social Marketing Intelligence : The ability to take large, raw and multiple data flows - refine those data flows to enable organisations to recognise the patterns of social interactions, social network structure, and each individual’s role therein – such granularity is critical for delivering the appropriate communication to the appropriate audience at the right time. The black gold of the 21st Century www.smlxtralarge.com | info@smlxtralarge.com
  25. 25. Social Marketing Intelligence results : The black gold of the 21st Century - 82% increase of the average ad income (from 11 cents to 20 cents) Higher premium for highly valuable audiences in Internet community. Personalised communications to engage your targeted audience. - 90% increase in sales by using Social Marketing Intelligence and Alpha Scoring - Estimated annual gain of £7.5 Million. +21% better accuracy in predicting churn - New customer acquisition grew by 25% compared to 4% with using previous marketing methods - 30% better response than previous similar mobile campaigns Increase mobile advertising response rates from an average of 3-6% to 29%
  26. 26. But what gives SMLXL the right to make such statements? Well we wrote a book way back in 2005 the culmination of five years of research. “Communities Dominate Brands “Books on business and market- offers a front line perspective on ing are launched weekly. Most are the ways that media change is weak adaptations of other transforming the branding people’s thoughts. Some authors process. They have surveyed the like Sergio Zyman, Seth Godin, best contemporary thinking Scott Bedbury, and Marc Gobe, have made bold and meaningful about engagement marketing, interpretations of contemporary participatory culture, and con- opportunities and helped me to sumer relations, translating it clarify a new advanced perspective into terms which will be accessible on how to be a more successful to industry insider and lay reader marketer. Tomi and Alan have alike.” done that and with Communities Henry Jenkins – author of Convergence Dominate Brands will end up Culture: Where Old and New Media Collide shaping our thinking and and Co-Director of the MIT Comparative approach for some time.” Media Studies Program Stephen C Jones Chief Marketing Officer the Coca-Cola Company 2000 - 2004 www.smlxtralarge.com | info@smlxtralarge.com
  27. 27. The philosophy, principles and tools of Engagement could help sell a product, an industry, a region, or combat a social issue. Engagement is built upon : the power of the meritocracy of ideas, that we live in a participatory culture, the principles of attraction, co-creation, harnessing collective intelligence and connecting people’s deep need to connect, collaborate and communicate with each other towards common goals. Engagement is about connecting large or small communities to an idea/task/goal/passion that they want to be part of, and, that they want to share with their friends driven by a commercial or social agenda. www.smlxtralarge.com | info@smlxtralarge.com
  28. 28. Engagement theory Multi-platform: Today’s world is multi-platform and multi-channel, and communications must be designed and executed around this fact. Coherent: Unity must be achieved via an overarching theme or idea. ‘Integrated’ is not really the right word, because ‘integration’ assumes we are starting with separate bits which we need to bring together. Coherence means we are starting from one single perspective and then allowing for many different manifestations of the central theme Technologies of cooperation: New technologies offer huge opportunities in areas such as interactivity, immediacy, accessibility and addressability. Communications programmes need to use these opportu- nities to the full. Which means we can Create ‘matching and connecting’ services and propositions that revolve around the rich use of personal information and new information technologies and that can put the consumer/buyer in control. Transform how organisations, businesses or brands communicate with their multiple audiences, share and harness collective intelligence and play a more meaningful role in the fabric of society www.smlxtralarge.com | info@smlxtralarge.com
  29. 29. The 12 principles of Engagement 1). Participation : physical, intellectual, emotional 2). Co-creation 3). Trust & Transparency of contract 4). Social Marketing Intelligence 5). The 4C’s: Commerce, Culture, Community, Connectivity 6). Flowability of information 7). Hot Media (We) Media 8). Higher order ideas and beliefs 9). Timely, Relevant & Contextual communications 10). Technologies of co-operation : Harnessing collective intelligence 11). From Efficiency to Effectiveness 12). Life Enabling – Life Simplifying - Navigational : services & propositions www.smlxtralarge.com | info@smlxtralarge.com
  30. 30. SMLXL What we do: Create customer and business value in the digital age SMLXL creates new products and services, new ways to communicate, new ways to create consumer communities and new ways to win their advocacy, and how to successfully derive revenues from those interactions. In today’s world, creativity has to be repurposed for the world we now inhabit. It is a synthesis of understanding business, media, technology, peer-to-peer flows of communication and, the economics of our digital world. We call it Engagement, and, were the first to do so. A lot of us see a lot of strategy, but Alan Moore’s company SMLXL has a unique way of bringing that strategy to life. You can guarantee that if you give SMLXL a problem they are going to crack it. Keith Pardy Senior Vice President, Nokia Strategic Marketing Nokia Corporation
  31. 31. You can work with SMLXL in 5 different ways 1. SMLXL : Consulting 2. SMLXL : Accelerated innovation for products and services 3. SMLXL : Technologies 4. SMLXL : Engagement Marketing/Communication Workshops 5. SMLXL : Mobile Advertising Consulting and Workshops Our Clients: Blyk, Nokia, Microsoft, T-Mobile Germany, Sony BMG, Accel, Cyrte, H&M, IPG, WPP, EMAP, TV2 Norway, The Coca-Cola Company, North One Television, News International, Masterfoods, Neals Yard Remedies, Millward Brown, Korg. “The real voyage of discovery consists not in seeking new landscapes but in having new eyes” – MARCEL PROUST www.smlxtralarge.com | info@smlxtralarge.com
  32. 32. At SMLXL we don’t do mediocrity, we are are Working with Alan Moore and SMLXL has enabled NorthOne TV to start thinking about tomorrow. We have been able to start strategis- unusual and that’s the way we like it. Who needs ing about new integrated media neutral ventures. In fact without more of the same in a world that has plenty of it? the time spent with Alan I doubt we would even be using words like “strategy” and “media neutral”. With all our clients SMLXL has : Further we look forward to continue to bring our joint ventures to fruition, after all we are a business, which is about delivery. Alan’s creative thinking allows us to hopefully deliver “dif- - Created new business concepts ferent”, deliver “better” and deliver “more profitably”. - And enabled companies large and small to rethink their business strategies John Nolan, Head of Commercial Programming, North One Television - Created ground breaking cross-platform TV formats - Relaunched TV stations As the Economist Herbert Simon wrote: “What information consumes is rather - Advised on digital and mobile strategies obvious. It consumes the attention of its - Created products & services recipients. Hence a wealth of information - Developed cross-platform marketing creates a poverty of attention ... The only communication initiatives factor becoming scarce in a world of Contact: Alan Moore abundance is human attention.” alanm@smlxtralarge.com www.smlxtralarge.com | info@smlxtralarge.com

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