Everything is Broken - Westfield Retail presentation -


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Everything is Broken - Westfield Retail presentation -

  1. 1. http://www.creativeadawards.com/original/wrecking-ball/11338EVERYTHING IS BROKENTHE END OF MARKETING AS USUALtwitter @johnbatistich
  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. 26 May 2010“we want a one to one relationship with7 billion customers” bob mcdonald ceo p&g
  5. 5. what we learnt is being disrupted
  6. 6. time to think different. think big!
  7. 7. what’s changing?3 shifts
  8. 8. source: richard watson. picture: john homerincreasing life-spansdeclining fertilityskills shortagecotton wool kidsrise of the screenagerrise in sinks & dinksincreased immigration. higher ethnicityurban-rural polarisationsmaller householdsenvironmental changeresource shortages rising costsresource nationalismcarbon economyincreased regulationpeak oilwater labelingpackaging/waste taxeseco-cynicism1 billion new mouthsmarket expansionproduct sourcing into aus/nzservices outsourcingasian values & aestheticsresource competitioninbound tourism numbersprotectionist backlash?demographicpower returns eastsustainability
  9. 9. 1 accelerator of change
  10. 10. 1. ubiquitous mobile connectivity2. democratisation of production tools3. access to higher data speed/more storagetechnology enabled connectivity1 billion pcs & 4 billion mobileslocation-based servicesmobile & social paymentsintelligent vending3d screensrising transparency & amplificationincreasing collaborationpersonalisationacceleration of everythinghunger for real shared experiencessource: richard watson
  11. 11. 26 May 20101. technology2. behavioural change3. business modelschange coming in 3 waves
  12. 12. “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 google
  13. 13. 1.SHOPPER BEHAVIOURaccelerated change in shopper behaviour challenging old norms
  14. 14. old wayscommand & clickstext & 2dsingle taskdesk/laptop search & emailecommercestore trading hoursnationalappointment to viewentertainment & retailseasonal salesquality relationshipsprivateknowledgenew behaviourstouch, voice & gesturevideo & 3dmulti-tasksocial & mobile searchmcommerce & social commerceshop anytime anywherecontext. service finds youtime shiftingmerged in a closed looppricing transparencyquantity relationshipspublic with utilityresourcefulness
  15. 15. source: psfk2.THE LINEAR PATHTO PURCHASEthe old linear model is being replaced by a network to advocacy
  16. 16. See an AdReceiveCatalogueMail or eDMVisitStoreConsultSalesPersonBuySign UpforLoyaltycardContactCustomerServiceold linear path to purchaseAwareness Consideration Trial Purchase Repeat
  17. 17. AcquiringUsingHow does a customerbecome aware with yourproducts or service?How does a customer gain knowledge aboutour products and those of your competitors?Where do they go to learn and compare to getthe best solution?How does a customertransact with yourcompany? What are thedynamics of thepurchase process?How does a customertake delivery of ourproduct or service?What are logistics ofgetting it?How does a customer use our product in daily life?What do they have to do to take advantage of itsbenefits? What are the components of the userexperience?How does a customerinteract with our companypost purchase? What are theinteractions that promoteloyalty and advocacy ratherthan frustration?BuyingSearcha customer experience chainDiscoveryRelationship
  18. 18. 3. INFLUENCE VS PURCHASEchannels of influence are as important as purchase channels
  19. 19. where the purchase is influenced matters50%$255Bofflineinfluencepurchase44%1%5%influenceonlinepurchaseofflineInfluenceofflinepurchaseonlineonlineinfluencepurchasetotalretailsales
  20. 20. 4. TRADITIONAL STOREwe crave social, physical and instant experiences. online experiences are changing store expectations
  21. 21. the store is being re-invented. moreexperiential, service, social & integrated
  22. 22. seamless experience acrossany channel at anytime
  23. 23. “WE ARE LOSING SHARE OF RETAIL”Context is everythinghttp://www.theage.com.au/technology/technology-news/virtual-shop-perfect-for-the-young-and-upwardly-mobile-20120215-1t6qa.html#ixzz1mZuBOUuzretailers need to understandthat online shopping isntsomething we just do at ourdesktops any more. we nowdo it out in the real world, outon the streets and often whilewere in-store.‘’ sportsgirl
  24. 24. 5. DIFFERENTIATION DELUSIONbeing different & better only matters if your customer believes & values it
  25. 25. your brand is not asdifferent as you think it is!80%8%ceo customersource: contagiousIs your brand different?% Agree
  26. 26. 6. DISCOUNT DEVOTIONwe are increasingly dependent upon deep discounts training our customers to wait for specials
  27. 27. the amount of purchases at discountis at a all time high & many can’t stop
  28. 28. http://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based-Learning1a.jpg7. LACK OF TESTINGthe world is forever in beta test
  29. 29. amazon conducts 200tests a day to improvethe user experience
  30. 30. learn fast, cheap, well & first. place lots oflittle bets and scale up the ones that pay off
  31. 31. 8. STRONG BRANDSGET DELETEDbrands under threat from shelf space rationalisation
  32. 32. “WE ARE LOSING SHARE OF RETAIL”nielsen estimates private labelswill represent 40 per cent ofpackaged goods sales by 2015http://www.smh.com.au/business/its-war-but-how-low-can-they-go-20111125-1nz6h.html#ixzz1f25svbl5
  33. 33. http://cerisereve.deviantart.com/art/Used-Crayons-722009199. OVER CHOICEwe need simpler solutions & more involved experiences
  34. 34. http://michaelfaber.deviantart.com/art/not-thinking-straight-35033655in 1997 there were 2 million brandsand now there are 8 million brandsmore clutter. more confusion
  35. 35. in 2008 the average person’s daily intake ofinformation was 300% greater than in 1960university of california san Diego study
  36. 36. Source: Sparksheet.com10. LOYALTY PROGRAMStoo many complex reward programs with low value creating reward fatigue
  37. 37. the world doesn’t need another hard tounderstand low value reward programSpend $15.7K at Coles on FlyBuys or spend$11K at Woolworths to get a $50 voucher
  38. 38. Source: impetuoussoftware.com11. DATA DELUGEmaking sense of the increasingly available behavioural data is the new gold
  39. 39. most marketing departments are notprepared to make sense of the singleview data that is rapidly becomingavailable about their customers
  40. 40. 12. RESEARCH REACH & CLAIMmajority of your audience are out of reach. you are what you do not what you sayhttp://www.theatlantic.com/magazine/archive/2013/03/anthropology-inc/309218/
  41. 41. “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
  42. 42. we makedecisions onclaimed not actualbehaviour. whocan accurately sayhow often theyhave seen an ad orpurchased aproduct in the last4 weeks?
  43. 43. 13. EDM INVOLVEMENThttp://www.fullissue.com/index.php/email.htmlvolumes are up but open rates & click through rates are declining
  44. 44. why do 79% of members don’t even openyour email? & it’s getting worse!Source: Responsys
  45. 45. 14. CPM FOR TV ADVERTISINGhttp://www.digitalproductionme.com/article-1135-middle_east_tv_ad_revenues_to_buck_downturn/your audience is not as high as you pay for!
  46. 46. 80viewership of ad breaks can be 10%-35% lower than the program you buySource: ikon
  47. 47. SO THINK ABOUT…15. MOBILE FIRSTdesign for mobile…the most powerful technology of our generation
  48. 48. “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
  49. 49. access reviews, pricing, content,community & buy anytime anywhere
  50. 50. mobile payment systemschange the pos & banking
  51. 51. yet more than 50% of websitesare not mobile optimised
  52. 52. 16. ECOMMERCECONVERSIONvalue, range & convenience driving online sales but conversion is extremely low
  53. 53. different conversion by channelonlineconversiongood storeconversion92%30%2%mallconversion
  54. 54. why the high online cart abandonment?online cartabandonmentstore cartabandonment<1%65%
  55. 55. http://www.shutupitson.com/tag/mad-men/17. MEDIA AGENCY DEALSchannel agnostic, complete disclosure transparency & total accountability
  56. 56. media agencies who commit to futureinvestments with media owners beforeunderstanding their clients needs
  57. 57. media agencies generating undisclosedrebates from media owners
  58. 58. 18. THE AD AGENCYnew models forming for social, digital, video & mobile channels
  59. 59. agency resources measured on inaccuratetime sheets vs value/outputs
  60. 60. Source: webzbranding.comresourcing digital channels that are moreintensive, reiterative & measurable
  61. 61. the creative director role will evolvefrom creator to curator because no oneperson has a mortgage on creativity
  62. 62. http://steja007.deviantart.com/art/HD-wallpapers-part-2-104834273agencies will collaborate more, shift toprojects over campaigns & create ideasthat are born to live in beta (social) notbuilt to die (media schedules)
  63. 63. 19. PRIVACY CONCERNSall notions of privacy are being traded for personalised utilityhttp://www.google.com.au/imgres?q=cyber+privacy&start=164&hl=en&tbo=d&biw=1680&bih=909&addh=36&tbm=isch&tbnid=F5xmDMtUU7zoeM:&imgrefurl=http://www.ngcicommunity.org/wiki/index.php/Trust_and_Privacy&docid=mCXt2uOUvkUpLM&imgurl=http://www.ngcicommunity.org/wiki/images/thumb/0/0e/CyberSecWithLock_small.jpg/350px-CyberSecWithLock_small.jpg&w=350&h=263&ei=WUWtUKHlG-b3mAWKv4DwBg&zoom=1&iact=rc&dur=468&sig=117778829446237125984&page=4&tbnh=136&tbnw=181&ndsp=58&ved=1t:429,r:56,s:164,i:92&tx=131&ty=91
  64. 64. Source: Accentureretailers must offer control, relevance &value in exchange for consumer information
  65. 65. 20. ADVERTISING BRIEFSignored uninspiring briefs replaced with a business challenge
  66. 66. “were getting rid of the creative brief after we askedour agencies to be honest about whether they usedthem or not. they said they basically ignored it.rather than offering their best work, creatives focuson trying to give you what you want. instead, werenow giving creatives a business challenge” p&g
  67. 67. 21. CREATIVE FEEDBACKthe quality of the feedback & relationship supports great work
  68. 68. http://sharpsuits.net/#Homeyou get the creative work your deserve
  69. 69. 22. ACTIVE INVOLVEMENTIN SOCIAL NETWORKStoo often, acquisition is the key focus but active involvement is where the real value is…
  70. 70. 97.4%2.6% active: like, post or commentpassive or do nothing at allwhy acquisition over involvement & value?
  71. 71. how do you get your community active?
  72. 72. http://www.noupe.com/inspiration/stunningly-creative-and-unforgettable-print-ads.html23. CRISIS MANAGEMENTlisten, shape & respond with speed & transparency
  73. 73. “consumers havesomething theyhave never hadbefore, the powerto warn &threaten, ratherthan to punishsilently after thefact” bruce philp consumer republic
  74. 74. 24. ATTRIBUTIONunderstanding the value of a customer remains the holy grail
  75. 75. for every $1 spent online withmacy’s led to $5.70 in-store
  76. 76. 418% more likely to visit startbuck.comspent 8% more. transacted 11% more frequentlyare they pre-existing preferences?source: comscore
  77. 77. fans are more valuablespending $159 more per yearhttp://www.google.com.au/imgres?q=mcdonalds+facebook&um=1&hl=en&sa=N&biw=1920&bih=1019&tbm=isch&tbnid=0v3-Z2BKm1XWhM:&imgrefurl=http://blog.hudsonhorizons.com/Article/Facebook-is-the-McDonalds-of-Social-Networking-Infographic.htm&docid=92-B7tkw3-lxWM&imgurl=http://www.hudsonhorizons.com/pub/images/facebookmcdonaldssocialnetworkinginfographics.jpg&w=274&h=263&ei=aDZET97fLerkmAWRtJnYBw&zoom=1&iact=hc&vpx=1152&vpy=148&dur=327&hovh=210&hovw=219&tx=122&ty=126&sig=111856002902335195116&page=1&tbnh=151&tbnw=154&start=0&ndsp=45&ved=0CFcQrQMwBQsource: syncapse
  78. 78. 25. REFLECTIVE THINKINGhttp://my.greasy.com/cgi-bin/blogapp/img.cgi?image=32367767.jpgwe are losing the ability to think in a deep, creative ways, which is affecting our decision making
  79. 79. “teens were faster than adults atreading online but their attentionspans were much shorter, so anythingdifficult tended to be skipped” jacob nielsen
  80. 80. “always on, information overload, multiple-tasking work environments are killingproductivity, attention fragmentation,dampening creativity and making us unhappy”mckinsey report june 2011
  81. 81. source: psfk20 IMPLICATIONSasking the right question is the first step for change
  82. 82. 26 May 20101. understand the changes in your customer journey in terms of influence & purchase2. location matters. shift your digital gravity towards mobile3. determine the utility connecting content & channels for customers4. optimise your website for mobile then design for it5. track the interaction of your social communities & identify value6. review your real TV audience and then negotiate on your ad audience7. focus on activating of your edm databases8. simplify your loyalty program to create real value9. review your data analytic capability & tools10. change the focus of your research towards behaviour11. set aside 10% of your budget for testing12. personalisation is the ultimate form of membership13. evolve towards a social business design14. don’t use meaningless words like engagement & activation15. ask your media agency about undisclosed rebates16. renumerate your agency on outcomes not time17. find another way to brief your agencies. inspire with a problem not a brief18. carve out time for reflection & learning19. conduct market experiments to model channel attribution to guide future choices20. define what you need to stop, start & continue to free up capacity to innovate
  83. 83. westfield study toursmorgan stanleyellie rogers of ikondavid 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 quarterlycontagious
  84. 84. @johnbatistich
  85. 85. http://www.creativeadawards.com/original/wrecking-ball/11338EVERYTHING IS BROKENTHE END OF MARKETING AS USUALtwitter @johnbatistich