Chris Cowan, Managing Director - Clusters
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Don't Leave Success to Chance CMO Event June 2017 - Saïd Business School, University of Oxford
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Chris Cowan, Managing Director - Clusters
- 1. Clusters Don’t leave success to chance
- 2. Our clients…. • Grow revenues • Grow margins • Secure loyalty and extract value from high-value customers • Take share from targeted competitors • Find new, untapped customers • Broaden their portfolio’s reach • Price correctly
- 5. WHO?
- 6. HOW?
- 7. The problem with demographics
- 8. LOVES COOKING SHOWSLOVES COOKING SHOWS £100k LOVES COOKING SHOWS LOVES COOKING SHOWSNEVER WATCHES TV cooking channel targeting women 18-39 NEVER WATCHES WATCHES OCCASIONALLY £100k £100k £100k £100k
- 9. The Clusters programme Clusters provides data and evidence-based insights on how specifically to drive business growth by influencing key decision points along the customer journey
- 10. Data relevance to deliver commercially-driven segments leading to real business actions Data relevance
- 11. The Clusters programme Market map: how your market breaks down into customer segments. Which segments will provide the best source of growth: • Extract greater value from existing customers • Take share from competitors in underperforming segments • Introduce a new brand or new proposition that brings new customers into the category 1 2 3 4 5 62 4 5
- 12. Feedback loop: segment-based tracking to continuously measure, adjust and improve business performance. The Clusters programme Targeting strategy: how to target them; what to do to make them more likely to choose your brand/proposition. Attribute qualitative and quantitative research respondents, web/social media users or CRM members to a segment.
- 13. Segments as living people Profiled in detail: core beliefs and attitudes, lifestyle, media usage
- 16. 12% 31% 28% 35% 30% 22% 25% 30% 27% 38%14% 22% 10% 14% 25% 38% 29% 9% 35% 6% 22% 30% 24% 28% 26% 17% 17% 10% 19% 31% 14% 11% 21% Size TotalTVviewing FactualTV History Nature Crime Geography AnimalPlanet NatGeo Discovery Seg H Seg G Seg F Seg E Seg D Seg C Seg B Seg A Totalmoviespend Targeting based on hard data….. Familymovies Animation Action Comedy Drama Piratesofthe Caribbean IceAge Shrek Too blunt Launching a family comedy drama movie
- 17. 12% 31% 28% 35% 30% 22% 25% 30% 27% 38%14% 22% 10% 14% 25% 38% 29% 9% 35% 6% 22% 30% 24% 28% 26% 17% 17% 10% 19% 31% 14% 11% 21% Size TotalTVviewing FactualTV History Nature Crime Geography AnimalPlanet NatGeo Discovery Seg H Seg G Seg F Seg E Seg D Seg C Seg B Seg A Totalmoviespend Targeting based on hard data….. Familymovies Animation Action Comedy Drama Piratesofthe Caribbean IceAge Shrek Launching a family comedy drama movie New important family segments C and E But still pretty blunt
- 18. 12% 31% 28% 35% 30% 22% 25% 30% 27% 38%14% 22% 10% 14% 25% 38% 29% 9% 35% 6% 22% 30% 24% 28% 26% 17% 17% 10% 19% 31% 14% 11% 21% Size TotalTVviewing FactualTV History Nature Crime Geography AnimalPlanet NatGeo Discovery Seg H Seg G Seg F Seg E Seg D Seg C Seg B Seg A Totalmoviespend Target acquired… Familymovies Animation Action Comedy Drama Piratesofthe Caribbean IceAge Shrek Launching a family comedy drama movie More focused and granular Now we know who to target
- 19. Targeting: how, what and where TRIGGERS for considering Drama Entertaining stories 73% Compelling characters 68% Romance 35% Action-packed plot 26% Special effects 23% BARRIERS to considering Drama Too much testosterone 82% Complex plots 67% I don’t like sequels 31% Too sentimental or soppy 23% Acting not good enough 9% Segment C
- 20. Targeting: how, what and where TRIGGERS for considering Disney The animation tradition 85% Great story-telling 63% I love everything Disney 43% Happy endings 34% Long-running stories 27% BARRIERS to considering Disney Too safe and predictable 77% Too formulaic 38% Not as good as they were 18% Too many sequels 15% Don’t use the best actors 5% Segment C
- 21. Message: Drama & Relationship Media: Magazines Message: Action Media: Cinemas Message: Adventure Media: Outdoor The campaign
- 22. And the Oscar goes to . . . 12% 31% 28% 35% 30% 22% 25% 15% 27% 38%14% 22% 10% 14% 25% 38% 9% 35% 6% 22% 30% 24%17% 10% 19% 11% 11% 21% Size Totalmovies Familymovies Animation Action Comedy Drama Pirates IceAge Holes Seg H Seg G Seg F Seg E Seg D Seg C Seg B Seg A Bullseye!
- 23. It’s a wrap!
- 24. Case study Financial services (savings focus)
- 25. Data relevance to deliver commercially-driven segments leading to real business actions Data relevance
- 26. Already saving regularly Segment 1 are the core target for established savings brands 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% All 1 2 3 4 5 6 7 8 Life insurance Premium bonds Shares Personal pension ISA Very low churn intention
- 27. Intend to start saving regularly Segment 7 have the highest purchase intent for every product 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Life insurance Premium bonds Shares Personal pension ISA 1 2 3 4 5 6 7 8
- 28. The status quo 3 4 5 1 …but segment 7 is largely ignored
- 29. A segment 7-targeted disruptive launch Be different and stand out from long-established competitors with minimal churn Other segments will spot the disruption, especially financially savvy segment 1 1. Get noticed and heard 2. Appeal to their intention triggers 3. Overcome their saving barriers
- 30. Segment 7: Intenders Aspirational and looking ahead towards their future “I’ll need to start saving sometime soon, but I don’t know much about it” 7 Life insurance Important segment for: ISAPersonal pension SharesPremium bonds
- 31. I AM… Financially cautious Health conscious Career oriented POPULATION AGE KEY LIFE EVENTS IN THE PAST/NEXT YEAR HH INCOME GENDER HH WITH KIDS WORKING STATUS LOCATIONMARTIAL STATUS 7
- 32. I AM… Financially cautious Health conscious Career oriented POPULATION KEY LIFE EVENTS IN THE PAST/NEXT YEAR HH INCOME GENDER (49.5m) Skewed 25-40 48% 52% Job change Purchasing a house / flat Moving in with partner Moving out of parent’s home HH WITH KIDS WORKING STATUS LOCATION Urban Suburban Semi-rural Rural Full TimePart TimeRetiredNot working Kids 0-15 Kids 0-6 Kids 7-17 MARTIAL STATUS Married/living together In relationship Single/divorced 7 AGE
- 33. Savings products purchase They would save with...Motivations To secure my family’s future Barriers I don’t have family yet Reason to choose They have a user-friendly website Buy through Bank, Internet Life Insurance Premium Bonds Shares Personal Pension ISA Accounts they have Intend to buy 7
- 34. Motivations & barriers Easy to buy from my bank Hassle to swap accounts Feel proud to actively taking care of my family It’s another expense Chance of a big win No guaranteed return More exciting than other savings products Difficult to get good information I don’t get enough through work Long-term commitment MOTIVATIONS TO BUY BARRIERS FOR NOT BUYING 7 Premium Bonds Life insurance Personal Pension ISA Shares
- 35. Media Use day per week State of mind Social media 4.8 Internet 5.8 Music 4.6 Podcasts 1.0 Radio 2.7 Video games 2.2 TV 5.2 Magazines 1.6 Newspapers (print) 3.1 Newspapers (online) 4.1 Media Usage (Top brands) Media usage The Times The Guardian The Sun The Guardian Daily Mail The Times BBC Facebook Yahoo National news Technology Local news Spectator Private Eye Marketing Listening to music Chatting to friends Movie reviews Films News Sitcoms Networking Chatting Reading other peoples’ updates Searchin g Discovery Learning Time- wasting Websites Use social media for Simultaneous activities Newspapers (online)Newspapers (print) Print sections Magazines (print) TV genres 7
- 36. Attitudes toward life I AGREE WITH I DISAGREE WITH “I always need to understand how things work” “Money is the best measure of success” “It is important to be well informed about things” “I don’t want responsibility. I’d rather be told what to do” “I love travelling abroad” “Family traditions are very important” “I consider myself fashionable” “I would like to know more about how to eat healthily” “It is important to be well insured for everything” “I am very good at managing money” “I want to provide a good lifestyle for my family” “I am interested in fine dining & wines” “It’s worth paying extra for quality goods” “I like giving advice” “Watching TV is my favourite pastime” “I am interested in fine dining & wines” “Once I find a brand I like I tend to stick to it” “I always look out for special offers” 7
- 37. Building a great brand
- 38. The journey “Never heard of you!” “Hmmm, that’s an interesting offer . . .” “Quote please!” “It’s a deal!”
- 39. 50% 25% Awareness responds well to marketing
- 40. Consideration
- 41. Consideration progressing impressively #7 in awareness #2 for consideration 32% would consider the brand Only one competitor has a higher conversion rate Segment 1 is driving consideration, and subsequent conversion
- 42. Strategy on target New style of saving Memorable advertising Clear, informative website
- 43. Barriers consistent My agent didn’t recommend it Not enough product choice Not a bank
- 44. Top reasons to recommend
- 45. The outcome Successful market entry • Awareness, consideration and brand KPIs • #1 savings brand for ‘standing out from the crowd’ • ‘A better new savings brand’ and ‘innovative online service’ Driven by segments 1 and 7 Appeal to 1 by building the brand around 7.
- 46. The outcome Successful market entry Ambitious commercial targets exceeded Multi-country roll out accelerated
- 47. About Clusters
- 48. Segmentation specialists since 2006 Analytical rigour and actionable outcomes Replace assumption with evidence Blend of client and agency experience Proprietary algorithms and software More accurate segmentations Segment-embedded tracking Multiple categories and in >30 countries
- 49. Clusters Limited, 30 Park Street, London, SE1 9EQ, UK. Registered in England and Wales. No. 5716244. Copyright Clusters Limited.
Editor's Notes
- Rationale for tagline change: ‘Your best chance of success’ suggests that success is still a matter of chance, even if improved. The benefit of Clusters is that it avoids the element of chance with hard and specific data.
- Ditto. Click to this for your punchline.
- No text. The picture reinforces whatever you’re saying about effective targeting. The audience should be listening to you 100%.
- This follows naturally on from the crowd pics and continues the argument
- Another good example, but there’s quite a lot to take in if the audience is simultaneously listening. Use less info on screen and you can still make the point without losing attention. Use all the info in the deliverable when people have time to study it.
- Keep audience attention by withholding text. Deliverables will be clearer. Current and intended behaviours Motivations & barriers (category and brand) And the proposition . . . If they’ve been listening, they won’t need text. If they haven’t, will text make them?
- Clusters provides data and evidence-based insights on how specifically to drive business growth by influencing key decision points along the customer journey.
- Clusters provides data and evidence-based insights on how specifically to drive business growth by influencing key decision points along the customer journey.
- Cue and speak: Challenge: Reduce >$100m cinema and home entertainment media budgets with no loss of market performance Approach: Segmentation (10 countries) to re-define previously bland “families with kids” demographic targeting Result: Not all families with kids are the same 1/3 of families with kids simply do not go to the cinema as a family. So 1/3 of $s were wasted They were ignoring some critical high-value family movie fans, especially ‘leaders’ who choose movies for groups of young movie-goers
- Give key segments what they want. Stop giving them what they don’t want. Introduce triggers and barriers separately to avoid attention drift?
- And again – click separately. Remember that slide re Pirates of the Caribbean . . .? [click]
- No need to go into detail again . . . Just flash it up.
- Media budget reduced by $8m $15m reallocated towards new ‘influencer’ segments Cinema: +2-3 %-points share growth each of next 3 years Home Entertainment: +15% growth in a declining market
- Keep audience attention by withholding text. Deliverables will be clearer. Current and intended behaviours Motivations & barriers (category and brand) And the proposition . . . If they’ve been listening, they won’t need text. If they haven’t, will text make them?
- A lot of info here, but all highly persuasive. My recommendation: introduce the categories first to whet appetites, then fill in the detail in the next slide. It has more impact. Click . . .
- A lot of info here, but all highly persuasive. My recommendation: introduce the categories first, then click to fill in the detail. It has more impact. Cue next slide to prepare audience, then click through
- Previous pic was a little cheesy. And Lego is a great brand. The original title (Building a great business) could be a little contentious – many businesses believe they are already great. And perhaps its not their whole business they’re rebuilding?
- Make it more engaging by asking audience to envisage the journey. The pic works for all four positions. People need to know you exist People need to put you on their consideration list People need to ask you for quotes and accept them
- The pic says it. 2 average number of savings brands considered
- The reasons for considering are consistent with the strategy focused on segment 7
- Barriers to considering are consistent with the 7-focused strategy
- Top 5 brand within 18 months Commercial targets exceeded Brand rolled out in four new markets Two per year planned 2017-18
- Top 5 brand within 18 months Commercial targets exceeded Brand rolled out in four new markets Two per year planned 2017-18