Empowering Customers to Drive Multimedia Retail Profits Jeffrey G. Molander CEO Molander & Associates Inc. [email_address]

Jeffrey G. Molander

CEO

Molander & Associates Inc.

[email_address]

My Promise

Take Home Trust your instincts Create authentic, mutually respectful relationships Be fearless, experimental Build trust-centric models Embrace long-term thinking (sustainable business!) Let customers EXPERIENCE CHOICE!

Trust your instincts

Create authentic, mutually respectful relationships

Be fearless, experimental

Build trust-centric models

Embrace long-term thinking (sustainable business!)

Let customers EXPERIENCE CHOICE!

and the biggie… You ALREADY HAVE the Answers

You ALREADY HAVE the Answers

Beaten to the Punch? “ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see … With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .” Greg Verdino Crayon

“ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see …

With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .”

Look Familiar?

Look Familiar?

Look Threatening?

Web Video: Who’s Cashing In?

$

Anyone!

Fundamentals

Goals Demystify & Define: Elements Identify Changes in customer behavior Purchase influence of Web communities How video is increasing Web buying

Demystify & Define: Elements

Identify

Changes in customer behavior

Purchase influence of Web communities

How video is increasing Web buying

Buzzwords Social Media & Web 2.0 Conversational Marketing Experiential Marketing Consumer Empowerment Word of Mouth & Buzz Marketing Alternate Reality Viral Narrative User Generated Content (UGC)

Social Media & Web 2.0

Conversational Marketing

Experiential Marketing

Consumer Empowerment

Word of Mouth & Buzz Marketing

Alternate Reality

Viral Narrative

User Generated Content (UGC)

Elements of the Social Web Websites (text) Blogging Social networks (biz and personal) Bookmarking (del.icio.us Ma.gnolia StumbleUpon) Multi-Media Video (amateur & pro, social networks, etc.) Audio & podcasting

Websites (text)

Blogging

Social networks (biz and personal)

Bookmarking (del.icio.us Ma.gnolia StumbleUpon)

Multi-Media

Video (amateur & pro, social networks, etc.)

Audio & podcasting

Elements of the Social Web Mobile Opportunity is clear: 2.5 billion mobile phones Less than 2/10ths of a percent of the total advertising spent worldwide Source: Informa Telecoms & Media 2007

Mobile

Opportunity is clear: 2.5 billion mobile phones

Less than 2/10ths of a percent of the total advertising spent worldwide

Source: Informa Telecoms & Media 2007

Collaborative Shopping Working Collaborative Narcissism “ Lifestreaming” & Micro-blogging Multi-dimensional (mobile+Web) Elements of the Social Web

Collaborative

Shopping

Working

Collaborative Narcissism

“ Lifestreaming” & Micro-blogging

Multi-dimensional (mobile+Web)

Elements of the Social Web R.S.S.

Elements of the Social Web Websites Multi-Media Collaborative Shopping Working Socializing Tech: RSS, Widgets, Java, Ajax

Websites

Multi-Media

Collaborative

Shopping

Working

Socializing

Tech: RSS, Widgets, Java, Ajax

Experiential!

What’s Changing?

The New Reality Dr. David Weinberger Author, Speaker, Academic Marketers: “There is no market for your message.”

Social ‘Currency’

Social ‘Currency’ An alternate ‘Currency’ for the Web Consumer skepticism Trust & authenticity Word-of-mouth recommendations Influence Challenges How to be trusted? Authenticity requires transparency! What are the tactics?

An alternate ‘Currency’ for the Web

Consumer skepticism

Trust & authenticity

Word-of-mouth recommendations

Influence

Challenges

How to be trusted?

Authenticity requires transparency!

What are the tactics?

Trust as Currency Source: Nielsen 2007 26,486 internet users in 47 different countries

Trust

TIME

Prime Time is ANYtime

Viewing via Web Source: Solutions Research Group 2008 “Prime Time is Anytime” 2006 – 2007 2X increase in Web viewing 80,000,000 “putting down remote, picking up mouse” February 2008: Nielsen measuring Web audiences

2006 – 2007 2X increase in Web viewing

80,000,000 “putting down remote, picking up mouse”

February 2008: Nielsen measuring Web audiences

Sling is THE Thing

New York – Philadelphia Train

Consumers’ Time Online Source: Online Publishers Association (Internet activity Index, January 2008) “ Content ” 43 % “ Communications” 28.7 % “ Commerce” 16.1 % “ Community ” 7.5 % “ Search” 5.0 %

“ Content ” 43 %

“ Communications” 28.7 %

“ Commerce” 16.1 %

“ Community ” 7.5 %

“ Search” 5.0 %

Content & Community Sites: Commercial Intent Source: Online Publishers Association (Internet activity Index, January 2008) “ Content” + Community = 51 % Comparing Researching Gathering & sharing opinions

“ Content” + Community = 51 %

Comparing

Researching

Gathering & sharing opinions

Birds of a Feather… Examples of Content/Community Sites

Exclusive Sponsorship

Who’s at the Party?

Evangelists “ Bringing the good news" Influencing…

“ Passionistas” 43% spend 12 hours+ per week visiting sites related to their obsession 50% of consumers will consider buying if it’s associated with their passion 70% are making purchases based on experiences Source: MediaVest, Yahoo and Conifer Research 2008 Allows them to feel different or better about themselves

43% spend 12 hours+ per week visiting sites related to their obsession

50% of consumers will consider buying if it’s associated with their passion

70% are making purchases based on experiences

What are they Doing at the Party? CONTROLLING & EXPERIENCING Discovering Meeting Trading (barter, auctions, buying) Borrowing, cheating and stealing Sharing Creating!

CONTROLLING & EXPERIENCING

Discovering

Meeting

Trading (barter, auctions, buying)

Borrowing, cheating and stealing

Sharing

Creating!

(using the Social Web)

SECTION II: How to Empower Customers & Drive Sales (getting invited to the party)

“ You are interrupting their life. All advertising is unwanted. So if you’re going to crash the party bring some Champagne with you.” Bob Thacker OfficeMax Inc.

Goals Where to Party Making Champagne Who to Invite Risk Management

Where to Party

Making Champagne

Who to Invite

Risk Management

Where?

The Party!

Party Planning Making Champagne

3 Types of Social Media Participants Bradley Horowitz Yahoo!

Tools of Production are Affordable Accessible

Rise of The ProSumer Anyone with a… Can be a… Publisher Photo Journalist Radio Host Author

Rise of Curators & Filters

The Business Goal of Social Web Companies Make EVERYONE a creator! 100% - creators 100% - synthesizers 100% - consumers Try to make it EASIER for everyone to participate in all roles.

YOUR Goal Make everyone an EVANGELIST On your turf

Party Planning Customer Reviews & Word of Mouth

The Recommendation Age Customer-Generated Reviews & Recommendations

Why? Authentic Trust is Implicit Authoritative *Reputation-based

Recommendations Source: Keller Fay Group 2008 Americans have 3.5 billion brand-related conversations per day 80% trust recommendations from friends, family and “trusted” sources over any form of advertising The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

Americans have 3.5 billion brand-related conversations per day

80% trust recommendations from friends, family and “trusted” sources over any form of advertising

The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship

Do Product Reviews Have Impact? Source: The eTail Group 2008

How Are They Expressing Their Preferences, Likes & Dislikes? Increasingly, VIDEO!

UGC Sources “ Fan Mail” Product Reviews Contests Product Designs! Community Sites Enthusiast Commercials

UGC Web-Video-Print Integration

Review Integration Walmart.com/ratings Store receipts Store shelf fact tags Newspaper circulars

Walmart.com/ratings

Store receipts

Store shelf fact tags

Newspaper circulars

The Risks

Threats to Brands Customer Complaints (Damage Control) No barrier to entry No truth / validity filter Exposure = credibility Monitor Watchdog Sites (ripoffreport.com) Web Communities Custom Sites (wakeupwalmart.com) YouTube

Customer Complaints (Damage Control)

No barrier to entry

No truth / validity filter

Exposure = credibility

Monitor

Watchdog Sites (ripoffreport.com)

Web Communities

Custom Sites (wakeupwalmart.com)

YouTube

WHO You Invite Matters

“ It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].” John Lazarchic Petco

SECTION III: Designing Experiences

Source: "Passionistas: The New Empowered Consumer" Conference September 2007 Edwind Wong Dir. Customer Insights Yahoo! "It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”

Source: "Passionistas: The New Empowered Consumer"

Conference September 2007

Let’s Get Radical Doc Searls Co-author, The Cluetrain Manifesto Fellow at Harvard’s Berkman Center for Internet & Society “ Advertising is about supply finding and ‘creating’ demand. [There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply .”

Content + Community “Crowdsourcing”

$30,000,000 (2007)

Secret Sauce of “Crowdsourcing?”

Emotions! Suppliers (who are customers) Approval of community Financial rewards Community Participatory Cause-minded Cool-minded

Suppliers (who are customers)

Approval of community

Financial rewards

Community

Participatory

Cause-minded

Cool-minded

Crowdsourcing!

Building a Roadmap

The world belongs to those companies that… Identify the right micro-verticals where consumers engage deeply Activate new or existing consumer communities that welcome advertiser participation Make the ‘network effect’ work for you through syndication & aggregation Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption Jeffrey Rayport Founder & Chairman Marketspace LLC

Identify the right micro-verticals where consumers engage deeply

Activate new or existing consumer communities that welcome advertiser participation

Make the ‘network effect’ work for you through syndication & aggregation

Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption

Experience Creation Process Conception Policy Planning Infrastructure Beta-testing/planning Launch Optimization

Conception

Policy

Planning

Infrastructure

Beta-testing/planning

Launch

Optimization

Case Studies Best Practices

Best Practice: Marketers as Publishers

Empowering Customers to Drive Multimedia Retail Profits Jeffrey G. Molander [email_address]

Jeffrey G. Molander

[email_address]