Traditional Marketing is Dead... Long Live the Customer

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Traditional marketing is dead. Today's consumer is empowered. Tell and sell marketing is no longer effective. Companies need to differentiate themselves to stand out in a sea of sameness. Brands need to find ways to leverage their most important asset: their current customer. Referrals and word of mouth are keys to future growth. This presentation features nine customer-centric marketing lessons from leading brands such as Apple, Disney, Five Guys, Kimpton Hotels, Southwest Airlines, TD Bank, Wells Fargo, Zane's Cycles, and Zappos.

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Traditional Marketing is Dead... Long Live the Customer

  1. 1. TRADITIONAL MARKETING IS DEAD… LONG LIVE THE CUSTOMER STAN PHELPS
 KEYNOTE & WORKSHOPS PURPLEGOLDFISH.COM
  2. 2. CAUSE OF DEATH?
  3. 3. CAUSE OF DEATH? The consumer is no longer listening
  4. 4. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own
  5. 5. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own Empowered to share opinions
  6. 6. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own Empowered to share opinions Empowered to avoid marketing
  7. 7. YOU NOW NEED TO MAKE THE LONGEST AND HARDEST JOURNEY IN MARKETING
  8. 8. The 9 inches from the brain... to the heart of your customer
  9. 9. shift your mindset and marketing spend, to go from impressions to... TO REACH THE HEART, YOU NEED TOTO REACH THE HEART, YOU NEED TO
  10. 10. experiences
  11. 11. SHIFT FROM CHASING PROSPECTSSHIFT FROM CHASING PROSPECTS
  12. 12. ...to focusing on customers…to focusing on customers
  13. 13. HERE ARE 9 CUSTOMER-CENTRIC MARKETING LESSONS FROM
  14. 14. MARKETING LESSON #1 - PUT CUSTOMERS FIRST
  15. 15. “ 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]
  16. 16. Acquiring a new customer costs up to 10 times more than upselling an existing customer
  17. 17. “93% of companies fail to exceed expectations” Key Takeaway from the Barometer: MARKETING LESSON #2 - EXCEED EXPECTATIONS
  18. 18. WALT ON THE IMPORTANCE OF GIVING MORE
  19. 19. 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:
  20. 20. 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.
  21. 21. 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]
  22. 22. MARKETING LESSON #3 - REFERRALS ARE KEY
  23. 23. 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
  24. 24. Examples are Great, But... WHY ARE REFERRALS KEY? Because all customers are not created equal
  25. 25. Examples are Great, But... Customers gained through referral are four times more valuable than ordinary customers Why?
  26. 26. Examples are Great, But... = 2LTV + 2XR WHY FOUR TIMES MORE VALUABLE?
  27. 27. Examples are Great, But... = 2LTV + 2XR Up to 2x the average LifeTime Value compared to ordinary customers CUSTOMERS GAINED THROUGH REFERRAL
  28. 28. 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
  29. 29. (IT’S ONLY PART OF THE ANSWER) MARKETING LESSON #4 - SOCIAL IS NOT ABOUT YOU
  30. 30. Yourjobistogivethem somethingtotalkabout, tweetabout,Yelpaboutand postontoFacebook THE “ME” IN SOCIAL MEDIA IS YOUR CUSTOMER ME
  31. 31. “ - 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”
  32. 32. MARKETING LESSON #5 - EXPERIENCE IS AN INVESTMENT
  33. 33. 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
  34. 34. TAKING CARE OF THE ONES IN HAND... INSTEAD OF THE THOUSANDS IN THE BUSH
  35. 35. MARKETING LESSON #6 - THINK COMMITMENT, NOT CAMPAIGN
  36. 36. 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.
  37. 37. “ 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.
  38. 38. MARKETING LESSON #7 - THINK CONVENIENCE OF THE CUSTOMER FIRST
  39. 39. 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.
  40. 40. Examples are Great, But... MARKETING LESSON #8 - THINK VALUE, NOT PRICE
  41. 41. “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
  42. 42. MARKETING LESSON #9 - DIFFERENTIATE THROUGH ADDED VALUE
  43. 43. “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
  44. 44. 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.
  45. 45. GIVE A LITTLE UNEXPECTED EXTRA Guests have the option to request a live goldfish to stay overnight in their room. GUPPY LOVE
  46. 46. 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?"
  47. 47. - Walt Disney “The way to get started is to quit talking and begin doing” WHAT’S YOUR PARADE?

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