EVERYTHING IS BROKEN                                                               the end of business as usual           ...
“we think that everything is broken & wethrow our computing power at it to fix it”patrick pichete global cfo google
“nearly all of the tools, processes &philosophies around marketing weredeveloped more than 50 years ago”
“we want a one to one relationship with7 billion customers” bob mcdonald ceo p&g      26 May 2010
“we are living through a                                                         change in the way ideas                  ...
what we learnt is being disrupted
old models don’t work like they used to
new methods are being explored
rules are being challengedhttp://www.flickr.com/photos/sameli/1898511953/
time to think different. think big!
what’s changing?                   3 shifts
demographicincreasing life-spansdeclining fertilityskills shortagecotton wool kidsrise of the screenagerrise in sinks & di...
1 accelerator of change
technology enabled connectivity                                  1 billion pcs & 4 billion mobiles                        ...
3 waves of change1. technology2. behavioural change3. business model     26 May 2010
“WE ARE LOSING SHARE OF RETAIL”“soon…you won’t forget anything, you’llnever be lost, never lonely, never bored &never out ...
1.SHOPPER BEHAVIOURAccelerated change in shopper behaviour challenging old norms
old ways                  new behaviours    command & clicks               touch & gesture        text & 2d               ...
2.THE LINEAR PATHTO PURCHASEThe old linear model is being replaced by a network to advocacysource: psfk
old linear path to purchase                                                           Sign Up              Receive        ...
add online & social web                                                                   Get Geo  Reorder         Follow ...
3. LINEAR DISTRIBUTIONCHANNELSThe future or retail is customer centric & channel agnostic
customer chooses multi channels                                     5%                           <1%                  44% ...
4. TRADITIONAL STOREWe crave social, physical and instant experiences. Online experiences are changing store expectations
the store needs re-invention. moreexperiential, service, social & integrated
5. DIFFERENTIATION DELUSIONBeing different & better only matters if your customer believes & values it
your brand is not as                                  different as you think it is!                           Is your bran...
consumers & businesses differ on  why they interact on social sites
6. DISCOUNT DEVOTIONWe are increasingly dependent upon deep discounts training our customers to wait for specials
the amount of purchases at discountis at a all time high & many can’t stop
7. OVER CHOICEWe need simpler solutions & more involved experienceshttp://cerisereve.deviantart.com/art/Used-Crayons-72200...
in 1997 there were 2 million brandsand now there are 8 million brands                                                     ...
in 2008 the average person’s daily intake ofinformation was 300% greater than in 1960university of california san Diego st...
8. LOYALTY PROGRAMSToo many complex reward programs with low value creating reward fatigueSource: Sparksheet.com
the world doesn’t need another hard tounderstand low value reward program             Spend $15.7K at Coles on FlyBuys or ...
9. DATA DELUGE                                Making sense of the increasingly available behavioural data is the new goldS...
most marketing departments arenot prepared to make sense ofthe data that is rapidly becomingavailable about their customers
10. LACK OF TESTINGThe world is forever in beta testhttp://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based...
amazon conducts 200tests a day to improvethe user experience
learn fast, cheap, well & first. place lots oflittle bets and scale up the ones that pay off
11. RESEARCH REACH Majority of your audience are out of reachhttp://www.qualtrics.com/blog/wp-content/uploads/2010/06/mark...
“you only get to talk to about 10% of the populationvia traditional online market research, so what aboutthe other 90%? Wh...
12. CLAIM BASEDMARKET RESEARCHYou are what you do not what you sayhttp://corporate.bangthetable.com/2009/03/14/market-rese...
we makedecisions onclaimed not actualbehaviour. whocan accurately sayhow often theyhave seen an ad orpurchased aproduct in...
13. MEDIA AGENCY DEALS                                          Channel agnostic, complete transparency & total accountabi...
media agencies who commit to futureinvestments with media owners beforeunderstanding their clients needs
media agencies that get rebates    from media owners & don’t  disclose them to their clients
14. THE AD AGENCYNew models forming for social, digital, video & mobile channels
agency resources measured on inaccuratetime sheets vs value/outputs
resourcing digital channels that are more                  intensive, reiterative & measurableSource: webzbranding.com
the creative director role will evolvefrom creator to curator because no one   person has a mortgage on creativity
agencies will collaborate more, shift to                            projects over campaigns & create ideas                ...
15. EDM INVOLVEMENTVolumes are up but open rates & click through rates are declininghttp://www.fullissue.com/index.php/ema...
why do 79% of members don’t even openyour email? & it’s getting worse!Source: Responsys
16. CPM FOR TV ADVERTISINGYour audience is not as high as you pay for!http://www.digitalproductionme.com/article-1135-midd...
viewership of ad breaks can be 10%-35% lower than the program you buy                    80Source: ikon
SO THINK ABOUT…17. YEAR OF THE MOBILEIt’s not the year but the decade of mobile which makes everything local, social & per...
“our coordinates, has the potential tochange all the outputs…where we shop,who we talk to, what we read, what wesearch for...
access reviews, pricing, content,community & buy anytime anywhere
mobile payment systemschange the pos & banking
18. ECOMMERCECONVERSIONValue, range & convenience driving online sales but conversion is extremely low
different conversion by channel                                     92%                      30%         2%        online ...
19. CHECKOUTABANDONMENT
why the high online cart abandonment?            65%                              <1%         online cart        store car...
20. ACTIVE INVOLVEMENT INSOCIAL NETWORKSToo often, acquisition is the key focus but active involvement has real value
why acquisition over involvement & value?               97.4%    passive or do nothing at all               2.6%     activ...
how do you get your community active?
22. VALUING A LIKEOR FOLLOWERApply a quality measure to all acquisition & stay agnostichttp://blog.zuupy.com/are-facebook-...
418% more likely to visit startbuck.comspent 8% more. transacted 11% more frequently                       are they pre-ex...
23. SOCIAL BUSINESS READYMost organisations were not designed for today’s networked world
old model                                   new world                          customer outside                          c...
24. CRISIS MANAGEMENTListen, shape & respond with speed & transparencyhttp://www.noupe.com/inspiration/stunningly-creative...
“Consumers havesomething theyhave never hadbefore, the powerto warn &threaten, ratherthan to punishsilently after thefact”...
25. MORE MEETINGSRunning productive meetings will free up capacity to think & create
we seek morecollaboration
why does the meetingexpands to the time allotted?           why not change the time allotted!
26. REFLECTIVE THINKING                 We are losing the ability to think in a deep, creative ways, which is affecting ou...
“teens were faster than adults atreading online but their attentionspans were much shorter, so anythingdifficult tended to...
“always on, information overload, multiple-tasking work environments are killingproductivity, attention fragmentation,damp...
KEY IMPLICATIONSAsking the right question is the first step for changesource: psfk
1.   understand the changes in your customer journey driven by connectivity2.   shift your digital gravity towards mobile3...
SOURCESStanding on the shoulders of giants
westfield study toursmorgan stanleyellie rogers of ikondr ken hudsondavid whittle of m&c saatchianouk darling of moonmicha...
LIFE MOVES PRETTY FAST
IF YOU DON’T STOP & LOOK AROUNDONCE IN A WHILE, YOU COULD MISS IT
SO, DON’T MISS THE OPPORTUNITY TO                      FIX WHAT’S BROKEN IN YOUR WORLD?http://www.creativeadawards.com/ori...
EVERYTHING IS BROKEN                                                               the end of business as usual           ...
John Batistich, Westfield Group, Everything is Broken
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  • I was fortunate enough to see John present on Everything is Broken last week (as well as a second presentation on the retail space). Amazing presentation!
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John Batistich, Westfield Group, Everything is Broken

  1. 1. EVERYTHING IS BROKEN the end of business as usual john batistichhttp://www.creativeadawards.com/original/wrecking-ball/11338
  2. 2. “we think that everything is broken & wethrow our computing power at it to fix it”patrick pichete global cfo google
  3. 3. “nearly all of the tools, processes &philosophies around marketing weredeveloped more than 50 years ago”
  4. 4. “we want a one to one relationship with7 billion customers” bob mcdonald ceo p&g 26 May 2010
  5. 5. “we are living through a change in the way ideas are created, spread & implemented. there’s a new model of leading & connecting people with ideas for change” seth godinhttp://garinkilpatrick.com/awesome-marketing-blogs/
  6. 6. what we learnt is being disrupted
  7. 7. old models don’t work like they used to
  8. 8. new methods are being explored
  9. 9. rules are being challengedhttp://www.flickr.com/photos/sameli/1898511953/
  10. 10. time to think different. think big!
  11. 11. what’s changing? 3 shifts
  12. 12. demographicincreasing life-spansdeclining fertilityskills shortagecotton wool kidsrise of the screenagerrise in sinks & dinksincreased immigration. higher ethnicityurban-rural polarisationsmaller households power returns east 1 billion new mouths market expansion product sourcing into aus/nz services outsourcing asian values & aesthetics resource competitionsustainability inbound tourism numbers protectionist backlash?environmental changeresource shortages rising costsresource nationalismcarbon economyincreased regulationpeak oilwater labelingpackaging/waste taxeseco-cynicism source: richard watson. picture: john homer
  13. 13. 1 accelerator of change
  14. 14. technology enabled connectivity 1 billion pcs & 4 billion mobiles location-based services mobile & social payments intelligent vending 3d screens rising transparency & amplification increasing collaboration personalisation acceleration of everything hunger for real shared experiences1. ubiquitous connectivity2. democratisation of production tools3. access to higher data speed/more storage source: richard watson
  15. 15. 3 waves of change1. technology2. behavioural change3. business model 26 May 2010
  16. 16. “WE ARE LOSING SHARE OF RETAIL”“soon…you won’t forget anything, you’llnever be lost, never lonely, never bored &never out of ideas” eric schmidt ceo google september 2010
  17. 17. 1.SHOPPER BEHAVIOURAccelerated change in shopper behaviour challenging old norms
  18. 18. old ways new behaviours command & clicks touch & gesture text & 2d video & 3d single task multi-taskdesk/laptop search & email social & mobile search ecommerce mcommerce & social commerce store trading hours shop anytime anywhere national service finds you appointment to view time shifting entertainment & retail merged in a closed loop seasonal sales always on special quality relationships quantity relationships private public
  19. 19. 2.THE LINEAR PATHTO PURCHASEThe old linear model is being replaced by a network to advocacysource: psfk
  20. 20. old linear path to purchase Sign Up Receive Consult Contact Visit for See an Ad Catalogue Sales Buy Customer Mail or eDM Store Loyalty Person Service cardAwareness Consideration Trial Purchase Repeat
  21. 21. add online & social web Get Geo Reorder Follow Stream Compare Create Targeted Review on via Brand on Purchase Online Tags Offer on IPTV Phone Twitter Experience Mobile Post Receive Consult Sign Up for Get up to Review Product Track Catalogue Sales Loyalty the minute Upload Search Purchase Mail or eDM Person card Reviews Picture Join a Ask Contact Visit Read relevant questions See an Ad Buy Customer Store Reviews forum for via live chat Service advice Read a Invite Read Call a 1800 Peruse Sign Up Browse Foursquare Friends to FAQs number Blogger for eDM Content or Yelp Co-Shop Sites Review Scan QR Watch Link from Create Use an Peruse Join Code for YouTube Friend’s A User application Blogger Fan Page Information Video Facebook Community for offers Sites
  22. 22. 3. LINEAR DISTRIBUTIONCHANNELSThe future or retail is customer centric & channel agnostic
  23. 23. customer chooses multi channels 5% <1% 44% $255B 50% offline search search online total only online offline only retail buy buy sales offline online
  24. 24. 4. TRADITIONAL STOREWe crave social, physical and instant experiences. Online experiences are changing store expectations
  25. 25. the store needs re-invention. moreexperiential, service, social & integrated
  26. 26. 5. DIFFERENTIATION DELUSIONBeing different & better only matters if your customer believes & values it
  27. 27. your brand is not as different as you think it is! Is your brand different? % Agree 80% 8% ceo customersource: contagious
  28. 28. consumers & businesses differ on why they interact on social sites
  29. 29. 6. DISCOUNT DEVOTIONWe are increasingly dependent upon deep discounts training our customers to wait for specials
  30. 30. the amount of purchases at discountis at a all time high & many can’t stop
  31. 31. 7. OVER CHOICEWe need simpler solutions & more involved experienceshttp://cerisereve.deviantart.com/art/Used-Crayons-72200919
  32. 32. in 1997 there were 2 million brandsand now there are 8 million brands more clutter. more confusionhttp://michaelfaber.deviantart.com/art/not-thinking-straight-35033655
  33. 33. in 2008 the average person’s daily intake ofinformation was 300% greater than in 1960university of california san Diego study
  34. 34. 8. LOYALTY PROGRAMSToo many complex reward programs with low value creating reward fatigueSource: Sparksheet.com
  35. 35. the world doesn’t need another hard tounderstand low value reward program Spend $15.7K at Coles on FlyBuys or spend $11K at Woolworths to get a $50 voucher
  36. 36. 9. DATA DELUGE Making sense of the increasingly available behavioural data is the new goldSource: impetuoussoftware.com
  37. 37. most marketing departments arenot prepared to make sense ofthe data that is rapidly becomingavailable about their customers
  38. 38. 10. LACK OF TESTINGThe world is forever in beta testhttp://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based-Learning1a.jpg
  39. 39. amazon conducts 200tests a day to improvethe user experience
  40. 40. learn fast, cheap, well & first. place lots oflittle bets and scale up the ones that pay off
  41. 41. 11. RESEARCH REACH Majority of your audience are out of reachhttp://www.qualtrics.com/blog/wp-content/uploads/2010/06/market-research.jpg
  42. 42. “you only get to talk to about 10% of the populationvia traditional online market research, so what aboutthe other 90%? Who wants their evening interruptedwith a phone call from a research agency” Peter Harris
  43. 43. 12. CLAIM BASEDMARKET RESEARCHYou are what you do not what you sayhttp://corporate.bangthetable.com/2009/03/14/market-research-is-not-community-engagement/
  44. 44. we makedecisions onclaimed not actualbehaviour. whocan accurately sayhow often theyhave seen an ad orpurchased aproduct in the last4 weeks?
  45. 45. 13. MEDIA AGENCY DEALS Channel agnostic, complete transparency & total accountabilityhttp://www.shutupitson.com/tag/mad-men/
  46. 46. media agencies who commit to futureinvestments with media owners beforeunderstanding their clients needs
  47. 47. media agencies that get rebates from media owners & don’t disclose them to their clients
  48. 48. 14. THE AD AGENCYNew models forming for social, digital, video & mobile channels
  49. 49. agency resources measured on inaccuratetime sheets vs value/outputs
  50. 50. resourcing digital channels that are more intensive, reiterative & measurableSource: webzbranding.com
  51. 51. the creative director role will evolvefrom creator to curator because no one person has a mortgage on creativity
  52. 52. agencies will collaborate more, shift to projects over campaigns & create ideas that are born to live in beta (social) not built to die (media schedules)http://steja007.deviantart.com/art/HD-wallpapers-part-2-104834273
  53. 53. 15. EDM INVOLVEMENTVolumes are up but open rates & click through rates are declininghttp://www.fullissue.com/index.php/email.html
  54. 54. why do 79% of members don’t even openyour email? & it’s getting worse!Source: Responsys
  55. 55. 16. CPM FOR TV ADVERTISINGYour audience is not as high as you pay for!http://www.digitalproductionme.com/article-1135-middle_east_tv_ad_revenues_to_buck_downturn/
  56. 56. viewership of ad breaks can be 10%-35% lower than the program you buy 80Source: ikon
  57. 57. SO THINK ABOUT…17. YEAR OF THE MOBILEIt’s not the year but the decade of mobile which makes everything local, social & personalised
  58. 58. “our coordinates, has the potential tochange all the outputs…where we shop,who we talk to, what we read, what wesearch for, where we go, they all changeonce we merge location and the web”matthew honan wired magazine
  59. 59. access reviews, pricing, content,community & buy anytime anywhere
  60. 60. mobile payment systemschange the pos & banking
  61. 61. 18. ECOMMERCECONVERSIONValue, range & convenience driving online sales but conversion is extremely low
  62. 62. different conversion by channel 92% 30% 2% online good store westfield conversion conversion conversion
  63. 63. 19. CHECKOUTABANDONMENT
  64. 64. why the high online cart abandonment? 65% <1% online cart store cart abandonment abandonment
  65. 65. 20. ACTIVE INVOLVEMENT INSOCIAL NETWORKSToo often, acquisition is the key focus but active involvement has real value
  66. 66. why acquisition over involvement & value? 97.4% passive or do nothing at all 2.6% active: like, post or comment
  67. 67. how do you get your community active?
  68. 68. 22. VALUING A LIKEOR FOLLOWERApply a quality measure to all acquisition & stay agnostichttp://blog.zuupy.com/are-facebook-likes-useful-when-there-is-no-di
  69. 69. 418% more likely to visit startbuck.comspent 8% more. transacted 11% more frequently are they pre-existing preferences?source: comscore
  70. 70. 23. SOCIAL BUSINESS READYMost organisations were not designed for today’s networked world
  71. 71. old model new world customer outside customer inside deliver a promise guided by purpose interruption interaction sell & tell loudly actively involve creative & media content & distribution communicate an image deliver an experience one to many one to one & many to many strive for perfection forever beta testing trust through authority trust through transparencyhttp://themobius.deviantart.com/art/Depth-of-Night-71363751?
  72. 72. 24. CRISIS MANAGEMENTListen, shape & respond with speed & transparencyhttp://www.noupe.com/inspiration/stunningly-creative-and-unforgettable-print-ads.html
  73. 73. “Consumers havesomething theyhave never hadbefore, the powerto warn &threaten, ratherthan to punishsilently after thefact”bruce philp consumer republic
  74. 74. 25. MORE MEETINGSRunning productive meetings will free up capacity to think & create
  75. 75. we seek morecollaboration
  76. 76. why does the meetingexpands to the time allotted? why not change the time allotted!
  77. 77. 26. REFLECTIVE THINKING We are losing the ability to think in a deep, creative ways, which is affecting our decision makinghttp://my.greasy.com/cgi-bin/blogapp/img.cgi?image=32367767.jpg
  78. 78. “teens were faster than adults atreading online but their attentionspans were much shorter, so anythingdifficult tended to be skipped” jacob nielsen
  79. 79. “always on, information overload, multiple-tasking work environments are killingproductivity, attention fragmentation,dampening creativity and making us unhappy”mckinsey report june 2011
  80. 80. KEY IMPLICATIONSAsking the right question is the first step for changesource: psfk
  81. 81. 1. understand the changes in your customer journey driven by connectivity2. shift your digital gravity towards mobile3. optimise your website for smartphones4. track the engagement of your social communities & identify value5. insist on media transparency & accountability6. review your real tv audience7. focus on activating of your edm databases8. simplify your loyalty program9. review your data analytic capability & tools10. change the focus of your research towards behaviour11. set aside 10% of your budget for testing12. evolve towards a social business design13. run productive meetings. cut meetings by 15 minutes to create 25% more time14. don’t use meaningless words like engagement & activation15. carve out time for reflection & learning16. define26 May 2010 what you need to stop, start & continue to free up capacity to think
  82. 82. SOURCESStanding on the shoulders of giants
  83. 83. westfield study toursmorgan stanleyellie rogers of ikondr ken hudsondavid whittle of m&c saatchianouk darling of moonmichael batistich of we are socialpeter harris of vision criticaljon bird of ideaworksbest buy slidesharerichard watsonyoutubegoogle & google imagesflickrtechcrunchmumbrellaemarketersmart companyinside retailpsfkmckinsey quarterly june 2011contagious q2 2011
  84. 84. LIFE MOVES PRETTY FAST
  85. 85. IF YOU DON’T STOP & LOOK AROUNDONCE IN A WHILE, YOU COULD MISS IT
  86. 86. SO, DON’T MISS THE OPPORTUNITY TO FIX WHAT’S BROKEN IN YOUR WORLD?http://www.creativeadawards.com/original/see-further/3298
  87. 87. EVERYTHING IS BROKEN the end of business as usual john batistichhttp://www.creativeadawards.com/original/wrecking-ball/11338
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