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Beyond Communication: Using Digital to Build Innovation
All Along the Customer Journey
“High End Packaging and Brand Innov...
WHO WE ARE

Labbrand transforms
innovative insight
into effective brand
actions.
As a leading China-based brand
consultanc...
HOW WE DO THINGS

BRAND LIFTER
BRAND REACHER
BRAND EUREKA
BRAND TUNER

BRAND POSITIONING
BRAND ARCHITECTURE
BRAND ROADMAP
...
Digital marketing is dead.
Digital strategy killed it.

2013 Labbrand No diffusion or reproduction without authorization.
...
Marketing vs Strategy

Marketing
Process of communicating the value of a product or service to customers, for
the purpose ...
Old vs New

Digital marketing
- Focused on communication

Digital strategy

- Short term

- Communication + Product and se...
Digital strategy = teenage sex

Digital strategy (like many other
things) is like teenage sex
Everyone talks about it,
Nob...
Digital presence ≠ Digital strategy

2013 Labbrand No diffusion or reproduction without authorization.

Labbrand.com

8
The BBC model
Digital strategy happens when the brand’s digital presence isn’t designed in a
vacuum but is directly linked...
Where digital strategy fits
Strategy is what links each building block of brands’ digital presence to brand
challenges, bu...
Question:

how to make the shift from digital marketing to
digital strategy

Answer:

The customer journey framework is yo...
Technology + behavior = the new digital centric journey
Technology and behavior are coming together to create a situation ...
The customer journey model
For each stage of the journey
- How are customers behaving and what do they expect?
- What digi...
The customer journey model
The traditional “Pre-purchase, purchase, post purchase” journey is a good place to
start from. ...
Exercise for brand/digital managers
Exercise for brand/digital managers:
Fill in the following framework to get a clearer ...
Benefits of the approach
What are the benefits of using the customer journey model for digital?

1. Prioritize investment ...
A few examples

2013 Labbrand No diffusion or reproduction without authorization.

Labbrand.com

17
A few examples
Pre-purchase
What can be done

Case study

- Increase brand knowledge and visibility

To support it’s new l...
A few examples
Purchase
What can be done

Case study

- Optimize e-commerce strategy
(platforms, product mix, pricing etc…...
A few examples
Post-purchase
What can be done

Case study

- Move towards a model of permanent
brand relationship

Last ye...
The poster child: Nike

Pre-purchase

Purchase

Post-purchase

Use social media strategically
to influence customer behavi...
How do we make it happen?

2013 Labbrand No diffusion or reproduction without authorization.

Labbrand.com

22
Fight the “3 no’s”

Fight the “3 No’s”

1. No cooperation
Digital innovation does not tolerate an organization in silos. I...
Time for some questions!

2013 Labbrand No diffusion or reproduction without authorization.

Labbrand.com

24
Using digital to build innovation throughout the customer journey - Noppen brand innovation summit 2014
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Using digital to build innovation throughout the customer journey - Noppen brand innovation summit 2014

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Powerpoint deck form my talk at the Noppen brand innovation summit in November 2013.

Published in: Marketing, Business
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Using digital to build innovation throughout the customer journey - Noppen brand innovation summit 2014

  1. 1. Beyond Communication: Using Digital to Build Innovation All Along the Customer Journey “High End Packaging and Brand Innovation Summit” November 22nd 2013
  2. 2. WHO WE ARE Labbrand transforms innovative insight into effective brand actions. As a leading China-based brand consultancy, our team of crossculture experts in research, strategy, creative delivers meaningful actions to help brands grow, strengthen and innovate. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 2
  3. 3. HOW WE DO THINGS BRAND LIFTER BRAND REACHER BRAND EUREKA BRAND TUNER BRAND POSITIONING BRAND ARCHITECTURE BRAND ROADMAP DIGITAL STRATEGY BRAND NAMING OLFACTIVE IDENTITY VISUAL IDENTITY SOUND IDENTITY 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 3
  4. 4. Digital marketing is dead. Digital strategy killed it. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 4
  5. 5. Marketing vs Strategy Marketing Process of communicating the value of a product or service to customers, for the purpose of selling that product or service Strategy A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 5
  6. 6. Old vs New Digital marketing - Focused on communication Digital strategy - Short term - Communication + Product and service innovation + relationship + commerce - Tactical - Medium/Long term - Digital presence in silos - Linked to over-arching strategy - Brand centric: brand owned platforms - Digital presence is integrated - Disconnected from customer insights - Customer centric: where the customer is - Push - Created based on customer insights - Digital is just a piece of the media mix - Opt-in, collaborative - Digital is a driver of differentiation and a key variable of business and brand strategy 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 6
  7. 7. Digital strategy = teenage sex Digital strategy (like many other things) is like teenage sex Everyone talks about it, Nobody really knows how to do it, Everyone thinks everyone else has it, So everyone claims they have it too…. 2013 Labbrand No diffusion or reproduction without authorization. We have a digital strategy too! Labbrand.com 7
  8. 8. Digital presence ≠ Digital strategy 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 8
  9. 9. The BBC model Digital strategy happens when the brand’s digital presence isn’t designed in a vacuum but is directly linked to the Brand, the Business and the Consumer. Brand - Digital presence builds upon key brand assets and attributes - Digital presence is used to strengthen the brand along the right dimensions (relevancy, esteem, diff erentiation, knowledge) Business - Digital presence is used to advance the company’s overall objectives Ex: increase average consumer spending, increase retention rate, make inroads into a new customer group, increase store profitability 2013 Labbrand No diffusion or reproduction without authorization. Consumer - Digital presence is consistent with what customers are expecting and with how they are behaving all along the customer journey Labbrand.com 9
  10. 10. Where digital strategy fits Strategy is what links each building block of brands’ digital presence to brand challenges, business objectives and customer insights. It unites them all under a common vision with over-arching objectives. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 10
  11. 11. Question: how to make the shift from digital marketing to digital strategy Answer: The customer journey framework is your best friend 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 11
  12. 12. Technology + behavior = the new digital centric journey Technology and behavior are coming together to create a situation in which digital channels are integrated all along the customer journey in increasingly complex ways. Technology Behavior - Social media innovation - Trust in online information - Device diversity: desktop + mobile + tablets - Need for 3rd party advice and validation - Social approach to purchasing (online and offline) - Smartphones - Geo-location - Device agnostic digital behavior - Innovation in e-commerce platforms - - Mobile payments Meteoric rise of e-commerce and mcommerce spending - Apps - - HTML 5 High propensity to participate in discussions about brands online Sources: CNNIC, Nielsen, inSites, alibaba, GroupM 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 12
  13. 13. The customer journey model For each stage of the journey - How are customers behaving and what do they expect? - What digital channels are used? - What does the brand want to achieve? - How does the brand reach out to and influence consumers? + Where are the pain points and key areas for improvement along this journey? Pre-purchase Post-purchase Purchase How people perceive and interact with the brand and product category before they consider buying How people buy How people use the product/service and interact with the brand after buying - Perception of brand and industry - Brand and industry knowledge - On-going relationship with brand and product category (ie: how do customers form opinions about brands? Through what sources?) - Trigger for purchasing decision - Criteria for choice - Shortlisting process (portfolio behavior vs. open set) - Preferred channels for information search and purchase - Length of process - - Decision makers (who influences final decision?) Product usage over time Customer support Path to repeat purchase Loyalty schemes - Brand advocacy (how people talk about the brand and their experience) - Average spending 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 13
  14. 14. The customer journey model The traditional “Pre-purchase, purchase, post purchase” journey is a good place to start from. However you should personalize the framework to reflect the realities of your industry. Ex: model for high-end hospitality (recent Labbrand case) Pre-booking Trip Booking - Trip planning City selection Hotel selection Choice room/package - Payment - Reservation management 2013 Labbrand No diffusion or reproduction without authorization. of - Rewards program Finding the property Checking in Ordering hotel services Exploring the city Checking out - Recruitment - Redemption Labbrand.com 14
  15. 15. Exercise for brand/digital managers Exercise for brand/digital managers: Fill in the following framework to get a clearer picture of what your digital strategy is and should be. Pre-purchase Purchase Post-purchase How customers behave What digital channels do customers use What customers want What I am doing with digital 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 15
  16. 16. Benefits of the approach What are the benefits of using the customer journey model for digital? 1. Prioritize investment by focusing efforts on the moments of the customer journey that are most important or that most need improvement 2. Build customer relevancy by developing content and platforms based on genuine customer insights, not hype or hunches 3. Make the shift from digital communication to digital product/service innovation 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 16
  17. 17. A few examples 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 17
  18. 18. A few examples Pre-purchase What can be done Case study - Increase brand knowledge and visibility To support it’s new line of baby-care products, Haier created an online community called “Moms’ knowledge” for expecting moms and young moms. - Entertain - Educate - Present your brand in a new light, let people discover your brand in new ways - Start a dialogue On this website, future consumers of the brand can exchange tips with other moms or expecting moms and view content prepared by Haier child care experts. With this platforms, Haier educated future buyers and wins customers early in the cycle. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 18
  19. 19. A few examples Purchase What can be done Case study - Optimize e-commerce strategy (platforms, product mix, pricing etc…) To counter disappointing sales in the fine fragrance category, Sephora created an innovative in-store digital experience called “The fragrance bar” to be featured in its Shanghai flagship store, - Go beyond basic online distribution to create new types of online purchasing experience (more social, more customizable, simpler etc…) - Create original digital tools to make the purchasing process smoother (ecatalogues, augmented reality tools etc..) - Weave digital into the in-store experience (in-store screens, iPads for the sales staff, QR codes to access product information etc…) After conducting research about typical obstacles to purchase, Sephora developed a set of applications that allow Chinese customers to find and try the fragrance most suited to them. Through this innovative in-store experience, Sephora managed to increase conversion rates in the fine fragrances category. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 19
  20. 20. A few examples Post-purchase What can be done Case study - Move towards a model of permanent brand relationship Last year, Volkswagen China launched a dedicated online community for the owners of “R series” models. - Innovate in post-purchase customer support - Personalize customer relationship management to drive repeat purchase and trading up - Create communities around brands - Drive customer brand advocacy On this platform, owners can discuss auto-related topics, get advice about good car maintenance and get invitations to special “R series” events. By moving the concept of a private owners’ club online, Volkswagen managed to create a community around its brand and drive customer loyalty. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 20
  21. 21. The poster child: Nike Pre-purchase Purchase Post-purchase Use social media strategically to influence customer behavior and create favorable market conditions Encourage spending by allowing for product customization through online platforms Creating new online services for product owners that drive loyalty and maximize customer value “Win against the elements” Weibo campaign (winter 2012) encouraging people to run in the winter through gamification of running. Nike iD allowing customers to personalize their products both online on the Nike website and inside stores through in-store computers. Nike + platform integrating digital services with product development. Allows product owners to get the most out of their purchase and locks them into the Nike eco-system. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 21
  22. 22. How do we make it happen? 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 22
  23. 23. Fight the “3 no’s” Fight the “3 No’s” 1. No cooperation Digital innovation does not tolerate an organization in silos. It demands cooperation between all departments: marketing, product development, sales, market research, retail etc… 2. No insights Digital innovation requires in-depth insights about customer expectations and behavior. Customer research is the foundation of digital strategy building. 3. No vision Digital innovation is impossible if all investment is driven by purely tactical, sales considerations as it is too often the case in China. 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 23
  24. 24. Time for some questions! 2013 Labbrand No diffusion or reproduction without authorization. Labbrand.com 24

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