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ERA Europe 2008 - Home Shopping 2.0 - Jeff Molander


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Jeff Molander's presentation on Empowering Customers to Drive Multimedia/DRTV Profits. Presented at ERA Europe, Monte Carlo, June 2008

Published in: Economy & Finance, Business
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ERA Europe 2008 - Home Shopping 2.0 - Jeff Molander

  1. 1. Empowering Customers to Drive Multimedia Retail Profits <ul><li>Jeffrey G. Molander </li></ul><ul><li>CEO </li></ul><ul><li>Molander & Associates Inc. </li></ul><ul><li>[email_address] </li></ul>
  2. 2. My Promise
  3. 3. Take Home <ul><li>Trust your instincts </li></ul><ul><li>Create authentic, mutually respectful relationships </li></ul><ul><li>Be fearless, experimental </li></ul><ul><li>Build trust-centric models </li></ul><ul><li>Embrace long-term thinking (sustainable business!) </li></ul><ul><li>Let customers EXPERIENCE CHOICE! </li></ul>
  4. 4. and the biggie… <ul><li>You ALREADY HAVE the Answers </li></ul>
  5. 5. Beaten to the Punch? <ul><li>“ To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see … </li></ul><ul><li>With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains .” </li></ul>Greg Verdino Crayon
  6. 6. Look Familiar?
  7. 7. Look Familiar?
  8. 8. Look Threatening?
  9. 9. Web Video: Who’s Cashing In?
  10. 12. $
  11. 13. Anyone!
  12. 14. Fundamentals
  13. 15. Goals <ul><li>Demystify & Define: Elements </li></ul><ul><li>Identify </li></ul><ul><ul><li>Changes in customer behavior </li></ul></ul><ul><ul><li>Purchase influence of Web communities </li></ul></ul><ul><ul><li>How video is increasing Web buying </li></ul></ul>
  14. 16. Buzzwords <ul><li>Social Media & Web 2.0 </li></ul><ul><li>Conversational Marketing </li></ul><ul><li>Experiential Marketing </li></ul><ul><li>Consumer Empowerment </li></ul><ul><li>Word of Mouth & Buzz Marketing </li></ul><ul><li>Alternate Reality </li></ul><ul><li>Viral Narrative </li></ul><ul><li>User Generated Content (UGC) </li></ul>
  15. 17. Elements of the Social Web <ul><li>Websites (text) </li></ul><ul><ul><li>Blogging </li></ul></ul><ul><ul><li>Social networks (biz and personal) </li></ul></ul><ul><ul><li>Bookmarking ( Ma.gnolia StumbleUpon) </li></ul></ul><ul><li>Multi-Media </li></ul><ul><ul><li>Video (amateur & pro, social networks, etc.) </li></ul></ul><ul><ul><li>Audio & podcasting </li></ul></ul>
  16. 18. Elements of the Social Web <ul><li>Mobile </li></ul><ul><ul><li>Opportunity is clear: 2.5 billion mobile phones </li></ul></ul><ul><ul><li>Less than 2/10ths of a percent of the total advertising spent worldwide </li></ul></ul><ul><ul><li>Source: Informa Telecoms & Media 2007 </li></ul></ul>
  17. 19. <ul><li>Collaborative </li></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Working </li></ul></ul><ul><li>Collaborative Narcissism </li></ul><ul><ul><li>“ Lifestreaming” & Micro-blogging </li></ul></ul><ul><ul><li>Multi-dimensional (mobile+Web) </li></ul></ul>Elements of the Social Web
  18. 20. Elements of the Social Web R.S.S.
  19. 21. Elements of the Social Web <ul><li>Websites </li></ul><ul><li>Multi-Media </li></ul><ul><li>Collaborative </li></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Working </li></ul></ul><ul><ul><li>Socializing </li></ul></ul><ul><li>Tech: RSS, Widgets, Java, Ajax </li></ul>
  20. 22. Experiential!
  21. 23. What’s Changing?
  22. 24. The New Reality Dr. David Weinberger Author, Speaker, Academic Marketers: “There is no market for your message.”
  23. 26. Social ‘Currency’
  24. 27. Social ‘Currency’ <ul><li>An alternate ‘Currency’ for the Web </li></ul><ul><ul><li>Consumer skepticism </li></ul></ul><ul><ul><li>Trust & authenticity </li></ul></ul><ul><ul><li>Word-of-mouth recommendations </li></ul></ul><ul><li>Influence </li></ul><ul><li>Challenges </li></ul><ul><ul><li>How to be trusted? </li></ul></ul><ul><ul><li>Authenticity requires transparency! </li></ul></ul><ul><ul><li>What are the tactics? </li></ul></ul>
  25. 28. Trust as Currency Source: Nielsen 2007 26,486 internet users in 47 different countries
  26. 29. Trust
  27. 30. TIME
  28. 31. Prime Time is ANYtime
  29. 32. Viewing via Web Source: Solutions Research Group 2008 “Prime Time is Anytime” <ul><li>2006 – 2007 2X increase in Web viewing </li></ul><ul><li>80,000,000 “putting down remote, picking up mouse” </li></ul><ul><li>February 2008: Nielsen measuring Web audiences </li></ul>
  30. 34. Sling is THE Thing
  31. 35. New York – Philadelphia Train
  32. 36. Consumers’ Time Online Source: Online Publishers Association (Internet activity Index, January 2008) <ul><li>“ Content ” 43 % </li></ul><ul><li>“ Communications” 28.7 % </li></ul><ul><li>“ Commerce” 16.1 % </li></ul><ul><li>“ Community ” 7.5 % </li></ul><ul><li>“ Search” 5.0 % </li></ul>
  33. 37. Content & Community Sites: Commercial Intent Source: Online Publishers Association (Internet activity Index, January 2008) <ul><li>“ Content” + Community = 51 % </li></ul><ul><ul><li>Comparing </li></ul></ul><ul><ul><li>Researching </li></ul></ul><ul><ul><li>Gathering & sharing opinions </li></ul></ul>
  34. 38. Birds of a Feather… Examples of Content/Community Sites
  35. 40. Exclusive Sponsorship
  36. 41. Who’s at the Party?
  37. 42. Evangelists “ Bringing the good news&quot; Influencing…
  38. 43. “ Passionistas” <ul><li>43% spend 12 hours+ per week visiting sites related to their obsession </li></ul><ul><li>50% of consumers will consider buying if it’s associated with their passion </li></ul><ul><li>70% are making purchases based on experiences </li></ul>Source: MediaVest, Yahoo and Conifer Research 2008 Allows them to feel different or better about themselves
  39. 44. What are they Doing at the Party? <ul><li>CONTROLLING & EXPERIENCING </li></ul><ul><li>Discovering </li></ul><ul><li>Meeting </li></ul><ul><li>Trading (barter, auctions, buying) </li></ul><ul><li>Borrowing, cheating and stealing </li></ul><ul><li>Sharing </li></ul><ul><li>Creating! </li></ul>
  40. 45. (using the Social Web)
  41. 46. SECTION II: How to Empower Customers & Drive Sales (getting invited to the party)
  42. 47. “ You are interrupting their life. All advertising is unwanted. So if you’re going to crash the party bring some Champagne with you.” Bob Thacker OfficeMax Inc.
  43. 48. Goals <ul><li>Where to Party </li></ul><ul><li>Making Champagne </li></ul><ul><li>Who to Invite </li></ul><ul><li>Risk Management </li></ul>
  44. 49. Where?
  45. 50. The Party!
  46. 51. Party Planning Making Champagne
  47. 52. 3 Types of Social Media Participants Bradley Horowitz Yahoo!
  48. 53. Tools of Production are Affordable Accessible
  49. 54. Rise of The ProSumer Anyone with a… Can be a… Publisher Photo Journalist Radio Host Author
  50. 55. Rise of Curators & Filters
  51. 56. The Business Goal of Social Web Companies Make EVERYONE a creator! 100% - creators 100% - synthesizers 100% - consumers Try to make it EASIER for everyone to participate in all roles.
  52. 57. YOUR Goal Make everyone an EVANGELIST On your turf
  53. 58. Party Planning Customer Reviews & Word of Mouth
  54. 59. The Recommendation Age Customer-Generated Reviews & Recommendations
  55. 60. Why? Authentic Trust is Implicit Authoritative *Reputation-based
  56. 61. Recommendations Source: Keller Fay Group 2008 <ul><li>Americans have 3.5 billion brand-related conversations per day </li></ul><ul><li>80% trust recommendations from friends, family and “trusted” sources over any form of advertising </li></ul><ul><li>The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship </li></ul>
  57. 62. Do Product Reviews Have Impact? Source: The eTail Group 2008
  58. 63. How Are They Expressing Their Preferences, Likes & Dislikes? Increasingly, VIDEO!
  59. 65. UGC Sources “ Fan Mail” Product Reviews Contests Product Designs! Community Sites Enthusiast Commercials
  60. 66. UGC Web-Video-Print Integration
  61. 67. Review Integration <ul><li> </li></ul><ul><ul><li>Store receipts </li></ul></ul><ul><ul><li>Store shelf fact tags </li></ul></ul><ul><ul><li>Newspaper circulars </li></ul></ul>
  62. 68. The Risks
  63. 69. Threats to Brands <ul><ul><li>Customer Complaints (Damage Control) </li></ul></ul><ul><ul><ul><li>No barrier to entry </li></ul></ul></ul><ul><ul><ul><li>No truth / validity filter </li></ul></ul></ul><ul><ul><ul><li>Exposure = credibility </li></ul></ul></ul><ul><ul><li>Monitor </li></ul></ul><ul><ul><ul><li>Watchdog Sites ( </li></ul></ul></ul><ul><ul><ul><li>Web Communities </li></ul></ul></ul><ul><ul><ul><li>Custom Sites ( </li></ul></ul></ul><ul><ul><ul><li>YouTube </li></ul></ul></ul>
  64. 70. WHO You Invite Matters
  65. 71. “ It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].” John Lazarchic Petco
  66. 72. SECTION III: Designing Experiences
  67. 73. <ul><li>Source: &quot;Passionistas: The New Empowered Consumer&quot; </li></ul><ul><li>Conference September 2007 </li></ul>Edwind Wong Dir. Customer Insights Yahoo! &quot;It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
  68. 74. Let’s Get Radical Doc Searls Co-author, The Cluetrain Manifesto Fellow at Harvard’s Berkman Center for Internet & Society “ Advertising is about supply finding and ‘creating’ demand. [There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply .”
  69. 75. Content + Community “Crowdsourcing”
  70. 76. $30,000,000 (2007)
  71. 77. Secret Sauce of “Crowdsourcing?”
  72. 78. Emotions! <ul><li>Suppliers (who are customers) </li></ul><ul><ul><li>Approval of community </li></ul></ul><ul><ul><li>Financial rewards </li></ul></ul><ul><li>Community </li></ul><ul><ul><li>Participatory </li></ul></ul><ul><ul><li>Cause-minded </li></ul></ul><ul><ul><li>Cool-minded </li></ul></ul>
  73. 80. Crowdsourcing!
  74. 81. Building a Roadmap
  75. 82. The world belongs to those companies that… <ul><li>Identify the right micro-verticals where consumers engage deeply </li></ul><ul><li>Activate new or existing consumer communities that welcome advertiser participation </li></ul><ul><li>Make the ‘network effect’ work for you through syndication & aggregation </li></ul><ul><li>Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption </li></ul>Jeffrey Rayport Founder & Chairman Marketspace LLC
  76. 83. Experience Creation Process <ul><li>Conception </li></ul><ul><li>Policy </li></ul><ul><li>Planning </li></ul><ul><li>Infrastructure </li></ul><ul><li>Beta-testing/planning </li></ul><ul><li>Launch </li></ul><ul><li>Optimization </li></ul>
  77. 85. Case Studies Best Practices
  78. 86. Best Practice: Marketers as Publishers
  79. 95. Empowering Customers to Drive Multimedia Retail Profits <ul><li>Jeffrey G. Molander </li></ul><ul><li>[email_address] </li></ul>