TRADITIONAL
MARKETING
IS DEAD…
LONG LIVE THE CUSTOMER
STAN PHELPS
KEYNOTE & WORKSHOPS
PURPLEGOLDFISH.COM

CAUSE
OF
DEATH?

CAUSE
OF
DEATH?
The consumer is
no longer listening

TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own

TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own
Empowered to share opinions

TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own
Empowered to share opinions
Empowered to avoid marketing

YOU NOW NEED TO MAKE THE LONGEST
AND HARDEST JOURNEY IN MARKETING

The 9 inches
from the brain...
to the heart
of your customer

shift your mindset and marketing spend,
to go from impressions to...
TO REACH THE HEART, YOU NEED TOTO REACH THE HEART, YOU NEED TO

experiences

SHIFT FROM CHASING PROSPECTSSHIFT FROM CHASING PROSPECTS

...to focusing on customers…to focusing on customers

HERE ARE 9 CUSTOMER-CENTRIC
MARKETING LESSONS FROM

MARKETING LESSON #1 - PUT CUSTOMERS FIRST

“
The more you sell customers, the more you
know about them. The more you know about
them, the easier it is to sell them more
products. The more products customers have
with you, the better value they receive and the
more loyal they are. The longer they stay with
you, the more opportunities you have to meet
even more of their financial needs. The more
you sell them, the higher the profit because
the added cost of selling another product to
an existing customer is often only about ten
percent of the cost of selling that same
product to a new customer.”
80% OF GROWTH COMES FROM
CURRENT CUSTOMERS
[Source: wellsfargo.com 2009]

Acquiring a new
customer costs
up to 10 times
more than
upselling an
existing
customer

“93% of companies fail to exceed expectations”
Key Takeaway from the Barometer:
MARKETING LESSON #2 - EXCEED EXPECTATIONS

WALT ON THE
IMPORTANCE OF
GIVING MORE

There was an incident that took place at Disneyland during
the early years of the park. Walt decided to hold a
Christmas parade at the new park at a cost of $350,000.
According to Disney historian Les Perkins:

Walt’s accountants begged him to not spend money on an
extravagant Christmas parade, because the customers were already
in the park. Nobody would complain, they reasoned, if they
dispensed with the parade because nobody would be expecting it.

That’s just the point. We should do
the parade precisely because no
one’s expecting it. Our goal at
Disneyland is to always give the
people more than they expect. As
long as we keep surprising them,
they’ll keep coming back. But if
they ever stop coming, it’ll cost us
ten times that much to get them
to come back.”
“
[Source: John Torre]

MARKETING LESSON #3 - REFERRALS ARE KEY

Examples are Great, But...
THERE IS ONLY
ONE QUESTION
FOR YOUR
CUSTOMER,
[INSERTYOUR BRAND HERE]
“How likely are you to
to a colleague, family
member or friend?”
recommend

Examples are Great, But...
WHY ARE REFERRALS KEY?
Because all customers
are not created equal

Examples are Great, But...
Customers gained
through referral are four
times more valuable
than ordinary customers
Why?

Examples are Great, But...
= 2LTV + 2XR
WHY FOUR TIMES MORE VALUABLE?

Examples are Great, But...
= 2LTV + 2XR
Up to 2x the average LifeTime Value
compared to ordinary customers
CUSTOMERS GAINED THROUGH REFERRAL

Examples are Great, But...
= 2LTV + 2XR
Up to 2x the average LifeTime Value
compared to ordinary customers
Up to 2x the number of Referrals
compared to ordinary customers

(IT’S ONLY PART OF THE ANSWER)
MARKETING LESSON #4 - SOCIAL IS NOT ABOUT YOU

Yourjobistogivethem
somethingtotalkabout,
tweetabout,Yelpaboutand
postontoFacebook
THE “ME” IN SOCIAL MEDIA
IS YOUR CUSTOMER
ME

“
- Peter Shankman
Nice Companies Finish First
Stop focusing on trying
to get new customers.
Focus on the customers
you have. They will bring
you the customers you
want”

MARKETING LESSON #5 - EXPERIENCE IS AN
INVESTMENT

Zappos CEO Tony Hsieh refuses to
see the experience as an expense:
Our business is based on
repeat customers and word of
mouth. There’s a lot of value in
building up our brand name
and what it stands for. We
view the money that we spend
on customer service as
m a r k e t i n g m o n e y t h a t
improves our brand.”
“
FREE SHIPPING BOTH WAYS,
OVERNIGHT SHIPPING UPGRADES
AND A 365 DAY RETURN POLICY

TAKING CARE OF THE ONES IN HAND...
INSTEAD OF THE THOUSANDS IN THE BUSH

MARKETING LESSON #6 - THINK COMMITMENT,
NOT CAMPAIGN

LIFETIME SERVICE GUARANTEE
Do you know how much each
customer is worth over their
lifetime?
Chris Zane does. Each customer
of Zane’s has a $12,500 lifetime
value. Chris sees the whole
forest and not just the individual
trees.
Zane’s doesn’t sell stuff, they
provide “experiences” that build
relationships. They never sell
anything without sharing a story
of why its important.

“
ONE TO ONE TRAINING
The One to One program was created for one
purpose: to build a customer for life. It’s based
on a simple premise—the more a customer
understands and appreciates a product, the
more likely they are to make a deeper,
emotional connection with that product, and to
return or to recommend the product/service to
a friend.”
- Carmine Gallo
Building a customer for life.

MARKETING LESSON #7 - THINK CONVENIENCE OF
THE CUSTOMER FIRST

CEO Ed Clark in an interview with the Financial Post Magazine:
LONGER HOURS AND OPEN 7 DAYS A WEEK
“
Their branch will be closed, they’ll look
across at our store, this beautiful store,
there will be someone giving dog biscuits
to somebody’s dog, they’ll walk in and
there’s a greeter that’s unbelievably
friendly, and they’ll say, ‘So why am I
bankingattheguyacrossthestreet?”
…thegreatthingaboutourmodelisifIputabranchona
corner in New York City, I know five years later I will have
more than 25% of the local business, because at some
timeinthatfiveyearssomeonewillcomebyat4:02pm.

Examples are Great, But...
MARKETING LESSON #8 - THINK VALUE, NOT PRICE

“Alotofpeoplehavebeentryingtopickpocketandnickel-and-
dime their customers,’ says Kevin Krone, the company’s
[Southwest]headofmarketing.‘Wedon’tthinkit’sright.”
“The policy turned out to be a good business move. Part of
that growth in sales, Southwest believes, came from new
customersfleeingbagfees.Mr.Kellycallshisrivals’approach
‘agift.”
“The policy yielded another advantage. It allowed Southwest
to subtly shift the focus away from its fares. Although it still
offers low fares to many destinations, Southwest doesn’t
alwayshavethelowestfareseverydayoneveryflight.”
According to Jad Mouawad of The New York Times:
BAGS FLY FREE & NO CHANGE FEES

MARKETING LESSON #9 - DIFFERENTIATE THROUGH
ADDED VALUE

“We figure our best salesman is our customer. Treat that
person right, he’ll walk out the door and sell for you. From
the beginning, I wanted people to know that we put all our
money into the food.
BONUS FRIES, FREE PEANUTS
AND UNLIMITED TOPPINGS
That’s why the décor is so simple — red
and white tiles. We don’t spend our money
on décor. Or on guys in chicken suits. But
we’ll go overboard on food.”
Jerry Murrell
FOUNDER, FIVE GUYS

CAN YOU FEEL THE LOVE TONIGHT?
Kimpton Hotels welcomes
pets of the furry variety at all
of their hotels.
For guests in need of a little
extra, but no extra effort,
many of their hotels offer a
special something extra.

GIVE A LITTLE UNEXPECTED EXTRA
Guests have the option to
request a live goldfish to
stay overnight in their room.
GUPPY LOVE

ARE YOU STANDING OUT
IN A SEA OF SAMENESS?
-Tony Hsieh
The New York Times bestselling
author of Delivering Happiness
and CEO of Zappos.com
"In business you do must do
something that's above and
beyond what's expected.
Phelps shows the ingredients
behind signature extras that
are unconventional and
innovative. Every business
should be asking themselves,
"What's our Purple Goldfish?"

- Walt Disney
“The way to get started
is to quit talking
and begin doing”
WHAT’S YOUR
PARADE?