Strategy is choiceThe challenge for management is to pick the right game to play and play to win
5 important questions to build a strategyWhat is ourWinningaspiration?Where willwe play?How will weWin?What capabilitiesmust be in place?What managementsystems arerequired?The motivating factor, aspirationwhat area ofproducts, customersegmentation, channels– Value proposition, competitiveadvantageThe resources, the activitiesthat need to happen, etcIntegrated ApproachSource: Playing to win – How strategy really works:Harvard Business Review Press
What is your aspirationPurpose of a company is to create a CustomerThere should be a deep understanding of theCustomerServe & Win with CustomerDon’t put Product Lens - marketing blinded by products and not see the largerpictures or true market dynamics
Where to PlayThere should be a deep understanding of theconsumer, competition analysis, andcapabilitiesNeed to understand what business you are really inWhere to compete and where not to competeSome of choices:Geography, Product or service type, Consumersegment, distribution channel, vertical stage ofproduction or service you engage
Where to PlayImportant things to avoidRefuse to ChooseBuy your way out of an unattractive gameAccepting an existing choice as immutable
How to winTo provide better value proposition than competitors do, andproviding it on a sustainable basisTwo generic ways:Cost Leadership – Cost reduction is relentlessly pursued• Does not always mean charge lowest prices• Have option of under pricing•Can reinvest margin to creative competitive advantageDifferentiation – Brand is relentlessly built• Distinctively more valuable• The more a product or service is differentiated along adimension consumers care about, there can be premium price
How to winLoyalty emerges where there is a match between whatthe brand distinctively offers and the consumerpersonally valuesSustainable Winning StrategyTo have both cost leadership and differentiation
CapabilitiesCompanies activities that when perfumed at the highest levelwill enable the company’s to bring its where to play and how towin choices to lifeCapabilities should reinforce one another and should makestronger than they would be alone.Create an Activity System – Visual representation of company’scompetitive advantage, capturing on a single page the corecapabilities of the company
Management SystemsManagement is what is most neglected in companiesTo be successful a company need robust process forcreating, reviewing, and communicating about strategyNeed structures to support its core capabilitiesNeed specific measures to ensure its strategy is working
All 5 Questions need to be answeredStrategy is Iterative processOrganization has Multiple levels of nestedcascadesNo one perfect strategy; find the distinctivechoices that work for you
Website navigation and content should help tofacilitate decision, not calculate persuasion
• Increase number of results per page• Visuals (images, map)• Suggest alternativesReturn Relevant Results
Encourage Use of Filters• Dynamic• Sliders when possible• Retain all filters andsorts• Add option to clearselected fields
Clear Price Displays• Bigger is better• Highlight promotional rates• Remain consistent through funnel• Create transparency• Allow customers to modify
Create Urgency• Highlight 5 or less items• Number of times booked• Show what they can save now
Easy to Find Content• Limit tabs• Don’t make customerssearch• Show thumbnails on mainpage• Include guest reviews
DetailsPhoto Layout convertquickly2.28%Increase in conversion
Streamline Checkout• Remove Unnecessaryfields and steps• Test one-page flow• Provide phone number• Remind customer whatthey ‘re buying
• Stickiness should focus on increasing conversion. Not onthe amount of time on site.• It’s about creating a great user experience. Make it easyfor users to accomplish their goal and they will stickaround.• Be original and authentic to the value you are providing• Be transparent about what you are offering.
Content GoalsSharable (Viral): Content that is designed to spread organically. Usually, it has littlesubstance beyond the initial spark that makes viral content unique; thus, it has a fairlyshort shelf life.The main goal with viral content is to get your consumer to click the social share buttonsand build awareness of you, your product or your company.
Discussion: Content that is designedto spark a conversation within acommunity.unlike viral, its shelf life is muchlonger.The content can play on the sameextremes as viral, but its morethought-provoking.The main goal with discussioncontent is to get its consumer toleave comments and to interactwith other readers.
Lead: Content that is designed to draw people into some sort of opt-in. This contentexposes a gap in the consumers knowledge and hints at a promise of closing that gap ifthe user enters his email address or fills out a lead form.Conversion : Content similar to lead content, but with one important difference. Thiscontent convinces consumer into making a decision to alleviate whatever problem theyneed help with
Call to Action StrategyFast ThinkingSlow Thinking
Mobile Ads or Apps?Mobile ad budgets in the U.S. are expected toincrease from $2.3 billion in 2012 to almost $11billion in 2016New media require newmethods of advertising, andthose evolve over time.3 reasons why mobile adsdon’t workPeople Don’t Like ThemThere’s No Right SideThe “Fat Finger” Effect
Mobile Apps will trumpConsumers- don’t perceive them as advertising- they value them for their functionalityMarketers- more cost-efficient than traditional ads- sometimes create entirely new revenue streamsUsers spend on average,82% of their mobile minutes with apps18% with web browsers
Smartphone apps fall into five categories:1. Games and entertainment, 42% of time spent2. Social networks (especially Facebook), 31%3. Utilities, including maps, clocks, calendars, cameras, and e-mail;4. Discovery, including apps for Yelp, TripAdvisor, and Flixster;5. Brands, such as Nike and Red Bull.1. Add convenience2. Offer unique value.3. Provide social value4. Offer incentives5. Entertain.Five strategies that can help Apps succeed
Five strategies that can help Apps succeedAdd convenience Offer unique value.Provide social valueOffer incentivesEntertain
Mobile Best PracticesKEEP IT QUICKSIMPLIFY NAVIGATIONBE THUMB-FRIENDLYDESIGN FOR VISIBILITYMAKE IT ACCESSIBLEMAKE IT EASY TO CONVERTMAKE IT LOCALMAKE IT SEAMLESSUSE MOBILE SITE REDIRECTS
Experiment – The Lean WayTo Win – Set Metrics >> Build Hypothesis >> Experiment >> ActionStep 1 – Pick what key metrics you want to improveStep 2 – Form assumptions by1. With existing data2. Without DataStep 3 – Create an experimentWho is your audience?What do you want them to do?Why should they do it?Step 4 – Measure
Experiment – ResultsIf1. Success >> Next Metric to improve2. Failed spectacularly - revisit hypothesis. It’s time to identify a new who, what, and why,based on what we’ve learned.3. Marginal success - but not close enough, try another experiment. The hypothesis might stillbe valid, and we can try again, adjusting based on what we’ve learned.