Stop Feeding the Marketing Monster
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An alternative vision of the future of marketing. Presented by Our Social Times CEO, Luke Brynley-Jones, at Digital Shoreditch 2013. See @lbrynleyjones for more details.
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Stop Feeding the Marketing Monster
- 1. Is it time to stop feeding the marketing monster? #stopfeedingthemonster Luke Brynley-Jones @lbrynleyjones
- 2. With the rise of social media, we’ve learned that building relationships with I’m your biggest fan relationships with our customers isn’t just fun… … it’s profitable.
- 3. When customers engage with a business through social media they contribute aboutthey contribute about 5.6 percent more to the firm's bottom line than customers who do not. Ram Bezawada, PhD, University of Buffalo School of Management
- 4. On average, companies spend just 8.4% of their TheCMOSurvey.org just 8.4% of their marketing budget on social media.
- 5. 59% of businesses plan to increase their spend ontheir spend on social media in 2013 Technorati Media – Digital Influence Report 2013
- 6. The global spend for advertising is around $500 billion. Imagine how many friends you could make with that!
- 7. But it’s not happening.
- 8. Let’s take a closer look at … Online retailers.
- 9. Marketing Spend Search & display advertising Email marketing 15% 4% 3% Email marketing Mobile marketing Social media 78% Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012.
- 10. New visitor Income from new customers Revenue New visitor traffic Visits by existing customers Income from existing customers41% 8% Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012.
- 11. We estimate that for each 1% of shoppers who return for a subsequent visit, overall revenue will increase by approximately… 10%
- 12. European retailers have to recruit seven new customers to equal the repeat purchase value of a single existing 7 of a single existing customer. 5 US retailers have to sign up five. The ROI from Marketing to Existing Online Customers - Adobe Digital 2012
- 13. A 5% increase in customer retention can increase a 75%increase a company’s profitability by… 75% Zero Defections: Quality Comes to Services - Bain & Co. 1990
- 14. … of your company’s future revenue will come 80% revenue will come from just 20% of your existing customers. Gartner Group 2012
- 15. Attracting new customers will cost your company 5 5 times more than keeping an existing customer. Lee Resources Inc. (?)
- 16. Developing relationships with customers also helps you to make really good friends… Advocates. Yummy!
- 18. Consumers who have used social media for customer service will share their positive experience with 42 people for social media customers vsvsvsvsexperience with more people than the general population… vsvsvsvs 15 people for the general population American Express Survey - 2012
- 19. Here’s the problem… The fact is businesses have become addicted to the hunt. We are spending billions squeezing diminishing returns from advertising, while our customers are talking to someone else! #WTFAreWeDoing
- 20. But, Luke! [I hear you cry] What about Customer Service?
- 21. The global spend for… Advertising = $500 billion CRM = $50 billion Customer service = $9 billion Genesys G-Force, 2012
- 22. So – what’s the answer?So – what’s the answer?
- 23. Stop feeding the marketing monster! Stop wasting 80% of your marketing spend on advertising. Shift your budgets to social customer service. Stop trying to sell to your friends. Empower your Customer Service team. Value customer retention and repeat revenue over customer acquisition.
Editor's Notes
- Engagement marketing – building relationships with customers – Yorkshire TeaContent marketing – providing great content that your target customers want to read and shareGenerating trust and providing value – that’s what relationships depend on in every walk of life
- This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
- This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
- This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
- Even large companies only have a small social media team – if you believe LinkedIn, consisting of only Social Media Strategists (Let’s be clear – if you manage a Facebook Page, you are not a strategist!)
- What’s the result? In spite of spending ALL your marketing budget on getting NEW customers – you still manage to get 8% coming back.
- As a result
- As a result
- As a result
- As a result
- Sony Europe has identified 53 of their top customers and nurtured them into online advocates. Each answers 1000s of online queries every year.
- So why are we spending money on advertising instead of building relationships through social media?