Service marketing trends 2011


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Esta presentación recoge las tendencias del Marketing de Servicios en 2011.

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Service marketing trends 2011

  1. 1. SERVICE MARKETING TRENDS 2011Juan Carlos Alcaide Casado
  2. 2. CONTENTS / 1. The 10 principles of the new marketing 2. Latest trends in market research 3. Environment 4. Society values 5. Emerging socio-cultural trends, consumption and innovation opportunities 6. The relation between incremental innovations, two strategic focuses and eleven marketing trends 7. Marketing: Obsession with metrics 8. A new way of existence, marketing managed and thought
  3. 3. Trends videos
  4. 4. Premises 1 “Marketing 1.5” 2 Change “is being written now”
  5. 5. 1. / The 10 principles of the new marketing
  6. 6. 10 principles of the new marketing1. Recognize that now the consumer has the power.2. Develop the offer directly only at the target of this product or service.3. Design marketing strategies from the customer point of view.4. Focus on how to distribute/deliver the product, not in the product itself.5. Go to the customer to create more value together: the role of the company has changed.6. Use new ways to reach the customer with your messages.7. Develop metrics and analyze ROI (Return on Investment)8. Develop high tech. marketing.9. Focus on long-term activities10. Look at marketing as a whole.
  7. 7. 10 “new” principles of the newmarketing 3.01. Love your customers and respect the competition.2. Be sensitive to the need to change and show you are ready.3. Look after your name and be sure of who you are.4. All customers are different; focus first on the ones who bring the mostbenefit.5. Always offer a good package at a fair price.6. Show that you are always available and welcome.7. Find customers, keep them and make them grow.8. Whatever your business, it’s a service business.9. Keep improving your business process in terms of quality, cost anddelivery.10. Collect relevant information, but use your common sense before takingthe final decision.
  8. 8. Product-market strategies:5 different approachesFrom segment to niche•Find the appropriate niche for product/service customized to customer.Focus of attention on strategies•Focus on consumer, the competitors, the distribution channels.Products/services objectives•Each product/service with a clear objective within the overall company.Market coverage•Selective coverage: niches progressively smaller and customized.Globalization•Global Marketing.
  9. 9. Marketing Mix StrategiesIn the sixties In the eighties In the futureCompetition based on the Competition on quality, design, Competition based on pricedifferent characteristics of service and the creation of segments or on the price itself.the products. market value. Prices based on thePrice based on costs. Prices based on perceived value. competition.The suppliers and The suppliers and The suppliers andintermediaries are company intermediaries are company “ intermediaries are company“adversaries”. cost factors”. “external partners”.General sales network. Differentiated networks. Multiple sales networks.High pressure sales. Transactional sale. Relational sale. Strong investment in sales Communications directed toStrong global investments in promotions directed to defined objective groups thatadvertising. specific segments. are strategically coordinated.
  10. 10. Focus the managementStep 1: Focus the management on 5 areas: Make the Create Focus on the Strengthen search for Take actions efficiency best customer new to keep them. by driving customers. relations. customers down costs. secondary.Step 2: Customer portfolio management using theDSDC principle (Different Strategies for DifferentCustomers).
  11. 11. 2. / New trends in market research
  12. 12. New trends in market researchConsumers and customers saturatedConsumers and customers power
  13. 13. New techniques in responding to newmarkets Market research on the internet. Market forecasts Observation of trends Anthropological analysis New tools
  14. 14. Market research on the InternetThe INTERNET will be the determining factor in the future of research.Influence in three directions A bigger pile to look for information within everybody’s reach. It is changing Flexibility to make commercial and contact with social relationships. millions of people.
  15. 15. In primary research Qualitative Quantitative: sample problem •The total of network users do not represent the potential customer of a particular research project. •There are customers without access to the Internet who are not included in the sample •Research by Estudios IT saw that the results of online and offline samples are the same, but the former are cheaper. •INTERNET validity for field work.
  16. 16. INTERNET benefits Faster & cheaper More sincere interviewee More precise (avoiding errors) You can use images and multimedia Real-time results.
  17. 17. Secondary information sources The existing resources on Internet have multiplied the secondary information sources infinitely compared to what was available a little while ago.
  18. 18. Market forecasts Market forecast Based on taking advantage of the Knowledge found spread The limitation on the about in different areas of the nature of the system: company. Collect this knowledge and aggregate it to predict future system obtain a general view as a result events that are of greater concrete and specific participation Everybody in the company who has an opinion on the topic of the investigation takes part.
  19. 19. Trend observation or Coolhunting Techniques: - The diary, in which the observer, all through the day, notes the events or situations that have caught their Detect relevant attention and which respond to the social values objectives of the study. - The records that are micro- and translate them into capsules of information that are consumer trends. organized by theme. - Photos, as they represent a graphic testimony and are therefore very explicative of those trends which are becoming more common.
  20. 20. Anthropological analysisAnalysis•Consumer life experience dimension that allows the interpretation and comprehension of thesocio-cultural meaning of the act of consumption.•Establish communication and marketing strategies.Consumer•The human being is not just “homo-consumer”. The way that people interact with productsand service in the buying area is influenced by different life styles, education, life experiences,origins and trajectories, both as individuals or families.Techniques•Ethnography.•Auto-observation or anthropological panel•Participant observation•Resultant interactions
  21. 21. 3. / Enviroment
  22. 22. The moment in which we liveINTERNATIONAL ECONOMY (economic notes march 2011- CECA)  The first quarter confirms the recovery of the world economy. 5.0% growth in 2010  Rocketing oil prices.  U.S.A. growth.  Euro zone growth 2% at the end of 2010.  1.6% growth in 2011.
  23. 23. The moment in which we liveINTERNATIONAL ECONOMY (economic notes march 2011- CECA)  0.6% year-on-year growth in the last quarter 2010  GDP fell 0.1% in 2010 and forecast for 0.8% in 2011 and 1.4% in 2012.  Deficit reduction 9.2% of GDP in 2010.  Unemployment around 4.3 million and forecast to reach 20.7% in 2011.  3.6% inflation (+0.3 in February).
  24. 24. The moment in which we liveSOCIETYLife expectancy: 78.37 M, 84,59 WBirths 497,365 vs deaths 395,612.Birth rate: 1.4 children. Average age of mother 30.98Average household: 2.4Unemployment rate: 20.33%
  25. 25. Marketing re-orientation In 3 areas Introduce the use of Focus marketing activities on Adopt the concept of marketing metrics. concrete objectives with zero base budgeting. guaranteed results; especially direct and guerilla marketing. Development of zero base budgeting (not squandering resources)
  26. 26. Sales management: productivity Increase controls and the use of productivity indicators: now that “what is not measured cannot be improved”. Automation of sales management: “TO SAVE YOURSELF FROM THE ECONOMIC CRISIS YOU SHOULD SAVE YOUR CUSTOMERS” Without customers you will not have the oxygen you need to stay alive: sales.
  27. 27. Principal effects of the economic crisison companies 1 Market contraction 2 Reduced sales 3 Lower profitability 4 Increase in bad debts and age of debt 5 Reduction in sources of finance 6 Reduction in cash flow 7 Increased competition 8 Greater pressure from large competitors 9 Loss of market share 10 Limits on growth possibilities 11 Loss of overseas markets 12 Psychological effects
  28. 28. “Winning” companies used a focusedapproachFocus involves concentrating on one or a few specificand concrete areas, organization activities,disposable resources (financial, human, etcetera) andthe strategic measures they take.Compensate for less income with initiatives toactivate sales: doesn’t work in 95% of cases. Total customer orientation (TCO)
  29. 29. “Winning” companies used a focusedapproach In the area of marketing Adopt a more strategic Refocus the company Refocus marketing vision to manage on the customer. activities. prices. Restructure marketing Focus not just on budgets according to the marketing efficacy but crisis situation of the also on marketing market. efficiency.
  30. 30. What did the winners do to manage their prices? Don’t reduce prices until all the available alternatives at their proposal had been used up in order to avoid doing so. When forced to lower prices it was always accompanied by associated approaches or measures in function of the direct and proportional cost and expenses savings that they had achieved (not before). They always had in mind that in periods of crisis it is more important to maintain cash flow than to create profitability.
  31. 31. 4 / Society’s values
  32. 32. Structural change (characteristics) Qualification Maintenance of •Fall in illiteracy. Increase in Older population level of Fewer youth. •Increase in proportion of replacement university salaried workers education. Fall in the Greater importance of Increase in geographic agriculture and foreign mobility of increase in population workers. industrial
  33. 33. Structural change (characteristics)All of this is due, in part, to a change in the structure of the family. Children are People getting being born to High divorce Fewer marriages. married are older parents who are rate. than before. older. Accelerating emptying of Spanish households, the 5 Increase in birth rate outside person homes are marriage. disappearing, as single person homes are increasing
  34. 34. Weak values in hard timesResearch study done by Observatorio devalores directed by Javier Elzo y ÁngelCastiñera, with the collaboration of ESADE
  35. 35. Weak values in hard timesWe are witnessing a cultural transformation:From atraditional society Modern society From a modern society Postmodern society
  36. 36. Weak values in hard times1. Individualism and freedom of rightsWe live a great contradiction between values and deedsValue: Social cohesion Deed: Inordinate individualism
  37. 37. Weak values in hard timesA society… Free in rights and customer That wants to fulfill the senses Accepts most private conduct Tolerate and accepts any kind of behavior
  38. 38. Weak values in hard times2. Plastic and relational familyPrincipal transformations: Plastic family Weaker structure Becomes a relational family
  39. 39. Weak values in hard times3. Human equality and symmetry of roles The same rights and obligations for each sex both at home and at work
  40. 40. Weak values in hard times4. Decline of “productivism” More value is given to leisure time and social relations than work. Work as an instrumental factor. No assumption of responsibilities Disaffection between company and worker
  41. 41. Weak values in hard times5. Leisure as a value and as customer association The main value is leisure and human relations The associated passive participation increases Except the unions
  42. 42. Weak values in hard times6. Disaffection with politicians but not with politics A deep democratic sentiment is retained as a value Institutional and political crisis Discontent is propagated by networking.
  43. 43. Weak values in hard times7. Immigration The number of immigrants is perceived as too high Spanish society shows itself to be open to immigrants
  44. 44. Weak values in hard times8. 5 citizen typologies Neoconservatives •Traditionalist and rule bound, socially involved and favors the imposition of traditional values in exchange for social cohesion and in detriment of social freedom. •People who defend authority, social order and traditions. •Against state intervention in the economy but not liberal in their personal conduct. •They represent 28% of the population and are in decline.
  45. 45. Weak values in hard times8. 5 citizen typologies Neomodernists •Social libertarians. •Critical with socially repressive order, more egalitarian and liberal in rights and customs. •Usually young, not religious and identify with concepts such as: ecology, pacifism, alternative globalization, human rights, fair relations between North- South, etc. •They represent 20% of the population and are static in number.
  46. 46. Weak values in hard times8. 5 citizen typologies Civic individualists •More influenced by postmodern individualism, although they still maintain certain collectivist tendencies, which leads to them having a civic conscience. •Liberal as far as rights and customs are concerned and apply a moderate market liberalization. •They represent 25% of the population and are in slight decline.
  47. 47. Weak values in hard times8. 5 citizen typologies Pragmatic individualists •Very individualistic, but people of order who adopt social norms. Very materialistic, they like to live well and in order to do so they adapt to the system. •Little social involvement, they only defend their own interests. •They represent 17% of the population and are growing fast.
  48. 48. Weak values in hard times8. 5 citizen typologies Egocentric individualists •Radically individualist and hedonistic. Only concerned with their personal enjoyment abandoning any kind of moral duty. •Focused on the present, they live for the day and look to gain a personal advantage out of any circumstance. •They are against restrictive social order and a high level of social disconnection. •They represent 10% of the population and are growing.
  49. 49. 5 / Emerging socio- cultural and consumption trends and opportunities for innovation
  50. 50. Methodology1. Desk research:• Recovery and redevelopment of materials and concepts accumulated by DOXA and by the Services Marketing Institute applicable to this project.• Work online coolhunting and specific bibliography.• Analysis of information provided by the company.• Four focus groups with insurance customers.• Three focus groups with company employees with different profiles.• DOXA + SMI (2010)
  51. 51. Actual socio-cultural andconsumption trends1. Consumer empowerment• Strong familiarity with marketing, sales, promotions and advertising mechanisms.• They are not “innocent” or credulous.• Psychological filters and defense mechanisms against what is promised.• Wide access to product and service information.• Before buying they compare features, prices, quality, etc.• Ever more demanding. They demand quality, guarantees, post sales service, solutions to their problems.
  52. 52. Actual situation The future Buying criteria Innovation Loss of loyaltyThe customer isprogressively Customer orientationbetter informed Need for multi- channel integration Need to reinforce The measured price customer contact
  53. 53. Research by our consultancy (S.M.I) and DoxaInstitute “Trends in relationships between service companies and their users” A new type of customer has arisen and, as a consequence, a new relational approach between service customers and their users. THE BEE CUSTOMER
  54. 54. The bee customer •Distrustful, cautious •Expert •Unbelieving •Impatient •Volatile •Hyper informed •Not resigned •Bad tempered •Prickly, irascible •Someone has to pay…
  55. 55. Principal conclusions Customers are aware of their power and demand power: There is a search for “essential” values: a solid culture of corporate social responsibility (CSR). People are looking for customization in all kinds of services. There are new segments that require a different treatment: invalids, tourists and immigrants. Offer services “to women” and, of course to the so called “pink” market composed of homosexuals. Customers are tired of the traditional loyalty marketing ploys and seek greater recognition.
  56. 56. Principal conclusions They demand agility and expect a capacity to respond. They require a radical transparency. They want information and professional advice, because they feel powerless when in doubt. They reject relational communication. They want clear and detailed communication, customized and emotionally positive with practical and useful information. They don’t want the Internet to replace paper, but to complement it. Information must avoid fear, uncertainty and doubt (fud) through service systems that are not robotic, customized and friendly, online or not. The true key to loyalty is the customer experience in the moment they use the service. There is a clear tendency towards low cost.
  57. 57. Actual socio-cultural andconsumption trends2. Worldwide Web and new forms of participation:The customer wants to be listened to and at the same time to be given solutionsto their problems where they can enter into contact, receiving the right andadequate service, that the company faces up to and deals with their claims orcomplaints and also that they take into account their opinions. To do this theyuse some customer-facing tools such as a consulting channel for customers toenter their opinions and suggestions (telephone and email). 24-hour freetelephone, web, complaints, reclaims, opinions, suggestions, focus groups,surveys to understand emerging requests, innovation opportunities. This allowsthe company to have a greater knowledge and management of their customerrelations.
  58. 58. Actual socio-cultural andconsumption trends2. Worldwide Web and new forms of participation:• Ever more connected amongst themselves through social networks, blogs, forums, common interest groups, SMS, etc.• They are not just receivers of messages, but also editors, producers of message, contents and meanings.• They transmit their positive and negative experiences to other consumers.• A time of very intense communication. For the young it is a field of communication and experimentation on a large scale, but for many adults it is an overload of “noise” and technological saturation.
  59. 59. Actual socio-cultural andconsumption trends2. Worldwide Web and new forms of participation:Examples: • The El Corte Inglés web-site, where it states “the customer is always right”. • comunitae, one assumes that it will be a bank in which it is the actual users who firstly decide if they want to be solicited for loans or investments. From there and with certain security measures, such as risk analysis, etc., it is the investor who decides through bidding what investments they will keep and how much and where they wish to invest. • The Banco Sabadell, in collaboration with IBM, is launching Banco Sabadell Labs, an initiative to explore together the possibilities of the Web 2.0 in the finance sector. On the site under the caption “Banco Sabadell, thinking ahead”, at the moment there are advertisements for a couple of feeds for investors and for the press and the location of their office and cash machine network in Google Maps
  60. 60. Actual socio-cultural andconsumption trends2. Worldwide Web and new forms of participation:Examples: • Telefónica’s web page where there is a space to resolve doubts, reclaims, frequently asked questions. Etc. There are spaces in the page where the customer can interact with customer facing staff with a special font.
  61. 61. Actual socio-cultural andconsumption trends3. Distrust, dissatisfaction, reaction:A strategic opportunity for services companies: take ownership of the territory availablethrough RADICAL TRANSPARENCY, generating incremental innovations around: •Security and Confidence •Credibility •Perception of honesty •Feeling of protection Example: AXA Radical transparency: •Sufficient information. •Simplified information, easy to understand. •Honest and preventive information. •Explain very clearly what is included and what is excluded from the policy. •A charter of service commitments. •Advice on ways top optimize costs/benefits/coverage. •Customers will value having a password which enables consultations online about contract characteristics, information, history and accident statistics.
  62. 62. Actual socio-cultural andconsumption trends4. Proliferation. Excess of offers and saturation of what is new:• Extreme proliferation of brands, products, services and features. Too many choices.• Feeling of freedom and ease to select and/or change, but also a feeling of saturation and stress.• Somuch choice produces a paradoxical effect of indifference to brands or products. It reduces the capacity to surprise and interest in what is new or a new feature.• Almost everything that is sold is sold as something new.• Against this over saturation many consumers prefer what is simple, austere and basic.
  63. 63. Actual socio-cultural andconsumption trends5. Responsible consumer, demand for values:• Preference for products or services that embody values (respect for the environment, social responsibility, sustainability, etc.).• Rejection of exaggerated consumerism, the depredation of natural resources, etc.• Rejection of the “abuse” of the motor car as a symbol of a hyper-consumerist society that is irrational and wasteful.• Due to the economic crisis a new culture of saving and austerity.• A gradual implantation of consumer habits and treatment of residuals that is more respectful to the environment.
  64. 64. Actual socio-cultural andconsumption trends5. Responsible consumer, demand for values: Cause marketing acts as an important tool to generate awareness and help for community problems. When using this concept, the company can meet its social responsibility obligations, and at the same time attract consumers and increase sales. For many companies, social marketing is synonymous with philanthropy. Reserve a specific sum from your budget to support NGO’s or some philanthropic association and with this calm your social conscience. What we want from cause marketing is that this philanthropy or social action has a major impact, and at the same time, results in benefits for the business. You have to think strategically, choose a single cause to gain major influence and identity and work together with a diversity of social organizations. That a company chooses a cause, implies that this should form a part of their strategic objectives and involve all areas, above all, responsible for bringing in help and donations and also in marketing so that the cause can be integrated into its strategy.
  65. 65. Actual socio-cultural andconsumption trends6. The culture of me, the spiritual and the natural• The wish to “give oneself pleasures”, allow oneself deserved rewards. Claim the right to pleasure, the quality if life, freedom and personal autonomy, the search for hedonistic satisfactions. Individualism. The search for personal identity and self-fulfillment.• Care of the body and the soul, interest in emotional stability, wellbeing, balance, inner peace, personal harmony, fulfillment, spirituality. Consumption as a source of physical, psychological and “playful” pleasure.• The wish to reduce the fast pace of life and dedicate time to to the mind, to the “me”.• Valuing of a form of life that is more “simple”, “natural”, “true”, balanced.
  66. 66. Actual socio-cultural andconsumption trends6. The culture of me, the spiritual and the naturalExamples •Patagonia. Coherence. •Starbucks: They promise us: the best coffee, price and service in the world (a touch of romance, accessible luxury, an oasis of peace and spontaneous social interaction). Bank example: Deutsche Bank office (with a shop in the office, creating a more relaxed commercial atmosphere), bank office with a cafeteria or internet access (Caja Navarra, etc…) •Caja Navarra: with their new business model, the civic bank. It promotes continuous interaction with its customers beyond mere bank transactions putting at their disposal in some branches (called ‘canchas’) places to study, meet customers, do events, connect to the internet. Also the customer decides where the social fund money goes by choosing the project they want to support. •COATO. “Ecological agriculture”
  67. 67. Actual socio-cultural andconsumption trends7. Demand for personalization, customization:This is about a company being able to adapt personally to the customer, to thesociety that makes up its demand and the real needs that these have, and what ismore showing this adaptation to the market. There is an extraordinary MeCulture, and people seek personalization, “customization” and “tuning - yourchoice” in all kinds of services. Companies must show a concern to adapt toanybody.• Expectation that products and services adapt to the individual needs of the customer.• Non acceptance of being boxed into standard formulas, “white coffee for everybody”.• Self-affirmation of the individual, of autonomy, of personal freedom.
  68. 68. Actual socio-cultural andconsumption trends7. Demand for personalization, customization:Examples: • The Caixa allows you to choose the design of your credit card and even offers you the opportunity to put your own photograph on it with a choice between 5 different financial arrangements. • Examples of tuning cars, mobile phones, cases, fixings, badges and above all, imagine downloads, tones, games, answering. • The Barcelona brand Demano, allows the customer to choose the product and the “cloth” (Recycled PVC advertising banner) as part of their choice.
  69. 69. Actual socio-cultural andconsumption trends7. Demand for personalization, customization:Examples: Adidas uses a CS4 interface with adobe ilustrador where they combine clothes with all the possible color patterns for a group of samples and apply all the variations. An example of process standardization to achieve mass personalization
  70. 70. Actual socio-cultural andconsumption trends8. Globalization, multiculturalism:• Intense contact with foreigners, immigrants, products and ideas from other cultures.• Globalization of markets, accessibility, contact and interest in exotic and ethnic products that are culturally different.• Accustomed to new, different and innovative products and services. The novelties have now been transformed into something everyday, and a routine requirement.
  71. 71. Actual socio-cultural andconsumption trends9. New protagonism for women:• Accumulative changes in the identity and role of women. They work outside the home, have a high level of education, have a strong social and cultural life, intense contact with communication media, technological innovation and the vanguard in products, services and forms of commercialization.• At this moment a new big change: occupying leadership positions.• Women are an important driver in perception changes, election criteria, values, sensibilities and responsibility criteria.• New forms of social, productive and emotional intelligence.• These changes also indirectly occur in men.
  72. 72. Actual socio-cultural andconsumption trends9. New protagonism for women:Example:Companies should become active, in an impartialway, in organizations that are involved in defendingconsumer rights and make themselves able to reactto a society creating transparent organizations withactive participation by consumers seeking equalitybetween the consumer and the market. Not takingaggressive positions but on the contrary adaptingcompany strategy to reflect the interests ofconsumers and develop information systems tomeasure customer satisfaction.
  73. 73. Actual socio-cultural andconsumption trends10. Effects of the economic crisis:• Reinforces the trend towards a more austere consumption, demand for the best price, a more selective attitude to products and services following rational criteria, cost savings, avoiding or cutting back on avoidable purchases, etc.• Readjustment of budgets to reduce costs, without renouncing quality of life expectations.• Feelings of insecurity and the desire for security (economy, employment, home, law, medicine, against insurance companies, against third-parties, etc.).• Changing buying, consumption, and service use habits.
  74. 74. The end of the middle class?>>A new social order in a global economyMassimo Gaffi y Edoardo Narduzzi:Europe: disappearance of the middle classTransformation to a potential mass class.There is appearing a new polarized social system, with a reduced technocraticclass that is getting increasingly rich at one extreme, and at the other a socialtumult without class where the former middle and lower classes are mixed, with acapacity for consumption which is increasingly limited and whose patternrevolves around low cost services and articles. A social class that is happy to eatin low cost chain restaurants, fly EasyJet and assemble their own furniture.
  75. 75. Actual socio-cultural andconsumption trends11. Buying and consumption habits will change:• Impulse purchases will decline. Greater care with the cost/benefit ratio.• They will choose quality brands at a lower cost. Many will only look for cheaper brands.• Within the same company or group, substitution by secondary cheaper brands.• Private labels will become stronger.• There will be a maximum vigilance of the quality of commercial relationships.• People will buy in smaller quantities.• Maximum advantage of offers, promotions and sales.• Choice of more long-lasting products and the postponement of replacements and renewals.• Elimination of many products and services considered not really necessary.
  76. 76. Actual socio-cultural andconsumption trends12. Some specific expenditures will reduce:• Automobiles.• Housing.• Furniture and house fittings.• House repairs and maintenance.• Clothes and shoes.• Perfumes beauty products.• Leisure activities.• Eating out.• Holiday trips (reduction of number and length of journeys).• All risks insurance, third-party instead.
  77. 77. Resulting changesConsumer behavior: 30% pure low cost according TNS (12/09)• Consumer requires that companies adapt to their needs.• A significant proportion of demand for specific services normally reserved for higher classes.• Families that live by squeezing the credit card...• hybrid consumer:  Fly with Vueling to a 6 star hotel with spa...• Savvy shopper:  I am an experienced and intelligent customer• Cheap&chic:• Back to basics• Massification of luxury
  78. 78. Some trends in TravelHunting for • There is a continuous and growing number of people who will forgo quality and featuresoffers in exchange for a reduction in price • This group is made up mostly of young people who use the internet • The media attention devoted to the rich and famous will increase peoples’ expectationsMore for less • They will start to demand prime category products at accessible pricesInterest in • 43% of customers interviewed say «I am always trying to improve my health». Free timehealth and well- is an vital opportunity to improve wellbeing and find an escape valve from frenetic livesbeing • Health tourism will grow to avoid long waiting lists for treatmentA taste for • Tailored solutions and personalized products and services put in doubt the «one size fitspersonalization all» mentality: more and more customers in developed markets insist on tailored solutionsSustainable • Responsible travel consists in improving the planet at the same time as enjoying the culture visited. Increasingly more travelers want to travel with the idea contribute totourism cultural sustainable development of the place visited and protection of its environment • The multiplicity of demand and offer creates a modern customers with a kaleidoscopic lifeMultiple lives • The same person has many different roles in their daily life, that at the same time create different needs and demandsThe economy of • Modern customers want to enjoy life to the maximum. As their buying power increases,experience their material needs are progressively more satisfied, experiences are valued more than possessions Source: Tribus Travel Report 2007 (Consultant to Henley Centre HeadlightVision for Amadeus)
  79. 79. Social macro trends Civilization based on intelligence Human knowledge duplicates more rapidly every day. Actually, human knowledge Civilization based on duplicates every 7 years. In the “Mega” An urban world 2040, it is expected to Technological projects Increasingly more duplicate every 3 months will move to humankind citizens of the earth to almost unlimited alone but not growing. dimensions: Skyscrapers, Higher buildings to gain nanotechnology, space but with nanorobots increasingly smaller SOCIAL MACROTRENDS dwellings Plural civilization A world of old people Globalization will develop In 2050, there will be more than 2,000 million a plural civilization inhabitants of the world adapted to models and older than 60 and of standards that are these 20% will be older worldwide, creating and than 80 ethnic and cultural mix Source: Study “The customer and distribution in Spain, 10 year perspective” (BNP PARIBAS)
  80. 80. Individual trends “Save our Cocooning Clanning society” Demolition Fantasy Of idols adventures Vigilante Pleasure customer revenge Down Aging TENDENCIAS INDIVIDUALES Indulgences Being alive Anchorage Cashing Out Ergonomics 99 lives Feminine Emancipation thought Source: Trends research S. XXI Instituto de Empresa (España)
  81. 81. What are customer tendencies? (1/4) Definition Examples Seeking protection against an Development of videoclubs, online environment progressively more banking, teleworking, internet Cocooning aggressive: Delinquency, pollution, shopping, private neighborhoods traffic, agglomerations: “Home safe home” A trend to form clans. People seek Increase of clubs, associations comfort and support with people intermediaries, libraries with reading Clannning who share values and beliefs areas, closed neighborhoods with neighbors admitted by vote, confidence, viral marketing and word of mouth How to escape stress and boredom, Virtual reality games, “war games”, Fantasy search for excitement and stimulus simulated ski slopes, “gastronomic adventures with risk-free adventures adventures”, development of an urban explorer Some rebel customers, tired of being The pleasure of the forbidden will told what is good will appear bring: increase in alcohol Pleasure indifferent to or breakers of the rules consumption, heavy meals (pizzas, revenge hot dogs, pastas), a return to moderate smoking,.. Source: Trends research S. XXI Instituto de Empresa (Spain)
  82. 82. What are customer tendencies? (2/4) Definition Examples Busy or stressed customers seek “I deserve it” culture leads to: short rapid gratification and a trend to trips to exotic locations or to hotels Indulgence self-reward with little vices and with personality, buying at the gifts delicatessen,.. Return to spiritual roots of the past. Rise of orientalismo, tai chi, yoga, After materialism we move to the astrology, return to spiritual Anchorage spiritual with touches of mysticism retreats, Satanism, genealogy,… and the appearance of new religions As a reaction to feeling Models and intelligent products disconnected and isolated in an era that know their owner, on line Ergonomics of “depersonalized”information, a newspapers chosen at will, internet search for tailored products and blogs and, in general, direct services personalized marketing Feminine thought is influencing a Shops that accept unused products way of looking at business moving as payment, animal carrier that fits Feminine from a hierarchical model to under the airplane seat,… thought another that is more relational, sensitive and responsible Source: Trends research S. XXI Instituto de Empresa (Spain)
  83. 83. What are customer tendencies? (3/4) Definition Examples Men reject their traditional roles Men are sensitive too, they can and with new attitudes “starting to cry, iron, cook. Homosexuals Emancipation be what they want to be” receive less prejudice coming into the light (importante segment) You have to take on multiple roles Increase in importance of in order to fight time pressures technologies that save time: Card 99 lives maximizing efficiency at all times readers on motorways, urban bicycle systems Customers progressively more People revise their priorities and stressed and spent seek fulfillment start their own business, job Cashing Out and satisfaction in ways of life that security ceases to make sense, are more simple return to rural life,... Recognition of the importance of Meditation, non-traditional wellbeing. Not just seeking a therapies, acupuncture, herbalism, Being alive longer life but also aids to a better virtual surgery, communal farms quality of life for self consumption Source: Trends research S. XXI Instituto de Empresa (Spain)
  84. 84. What are customer tendencies? (4/4) Definition Examples Nostalgic for the carefree days of Tendency towards immature conduct Down Aging infancy and thinking that everything ignoring social conventions, infant in the past was better look for schools for adults, nostalgia TV, symbols of adolescence traditional brands,.. There is mistrust of the power of big More demanding customer, Vigilant companies, exerting influence tendency to syndicate and to protest customer through pressure groups, parents exerting pressure when they are not who fight for the future of their in agreement children,.. Skeptical customers topple idols in Rejection of big companies as being Toppling idols the worlds of business and dangerous to the individual, anarchic government institutions. The bigger posture, fight against supposed the institution, the greater the government conspiracies,… mistrust Customers worried about the fate of Development of the idea “Think “Save our the planet, environment and green”, volunteers, electric cars, society” education recycling,.. Source: Trends research S. XXI Instituto de Empresa (Spain)
  85. 85. 6 / The relationship between incremental innovations, two strategic focuses and eleven marketing trends
  86. 86. OpportunityLink the incremental innovations to a coherent vision and in the medium-termthrough two strategic focuses:Focus 1: Company 2.0. Allows you to have a framework process engine for incremental innovations.Focus 2: Reputation. The trustworthy company. Allows you to have a topic engine for incremental innovations. • Both together will aim for a differentiated profile in the medium and long term. • Both together will aim for incremental innovations that are not obsolete or diluted in reality.
  87. 87. • Customers are not the same and they are changing their forms of behavior at theIncrease the same pace as the change in technologyemphasis on the • Insurance companies that want to capture customer segments will have to adaptcustomer to the new situation through knowledge of the customer • The key to knowing the customer is the distributors, in which case you should implement systems that allow the distributor see the customer across all the lifeBetter tools cycle and across all the channel interactions • Investment in these systems should be made very selectively working together with the intermediaries • The lack of integrated multi-channel strategies is endangering the idea that someMulti-channel insurance companies can put the customer at the centrestrategies • The strategy that is integrated multi-channel avoids wasted resources on redundant information • There is a need for system flexibility that allows information flow, so reducing costChange of as much as timetechnology to more • This will improve transparency and uniformity for the sales force and theflexible systems distribution network • The globalization of the value chain is being used to reduce costs and to increaseOperational improve quality both in services and salesefficiency • Outsourcing the IT service and other support functions (HR, accounts…). A multi- country service can be centralized in one country
  90. 90. Strategic focus 2  REPUTATION/TrustworthycompanyGAP“The image of companies is notgood, nor close, nor transparent.They are perceived as distant, toopowerful, arrogant, untrustworthy Strategic company opportunity: takeand even cheating with the use of ownership of this available territory, creating with incrementalsmall print in contracts. innovations…The general sensation of mistrust •Securityand the frequent existence of •Confidence / Credibility / Perceptionnegative experiences are certain of honestyfacts. ” •Feeling of protection (Phrases taken from a blog, 100% coherent with what is repeatedly expressed in focus groups)
  91. 91. The principles of customer orientation • Customers become active participants in the redesign of products, packaging, pricing or product development Active dedication to the customer • Through this we achieve greater success in the 1.Customers introduction of new products and a more rapid are active development cycle innovators • It is no longer enough for companies to be driven by demand. If we do this we can satisfy needs but we will Satisfaction of never achieve fast growth Customer needs • This growth is achieved through identifying non explicit needs and anticipating them in advance (qualitative / disruptive jump)2.Companies 3.Orientation towards • We must use the moments of truth (buying moment) to must identify customer Orientation towards the create brand loyalty hidden needs customer sales experience • It is fundamental that in the moment of buying, the experience, not the customer reviews the whole range of our products product Source: Customer oriented innovation (Forrester Research 2005)
  92. 92. 1. Personalization / CEM• Relational privileges (length of custom, number of cars…).• Adapt insurance / age of vehicle.• Adapt insurance price / value of vehicle through time.• Innovate in customer loyalty based on “financial leverage” of insured (stable income for n years).• Insure the person, not the car.• Joint personalized contract for all policies Customers have a repetitive and recurring need for customization and adaptation
  93. 93. 1. Personalization• Possibility of personal proactive offers• Personal “managers” (not brokers). Personalized and ethical consultancy.• Audiovisual systems (Promoting personalization, transparency and intimacy.)• Have an Avatar like Ikea. • A la carte insurance. • Pay as You Drive. • Customization or tuning. • Etc. Personalization Personalized “avatar” management
  94. 94. 2. Contractual transparency• Enough information.• Simplified information, easy to understand.• Honest and open information.• Explain clearly what is included and what is not included in the policy.• Service commitment charter.• Advice on how to optimize costs/benefits/coverage.• Customers will value a password to be able to consult on the net the contract features, information, history and statistics on incidents.
  95. 95. 3. Systematic listening to customers:• Consulting channel, opinions and suggestions (telephone and e-mail).• 24-hour telephone (free number).• Place on the Web for questions, complaints and suggestions.• Periodical consultations with actual customers (focus groups and surveys) to detect emerging demands, Innovation opportunities, suggestions, etc.
  97. 97. 5. Customization + “acquired rights”Apparent radical customization //Mass customizationIt is about a personalized adaptation by the company for the customer, and tothe society that makes up its demand and the real needs that this presents, atthe same time showing this adaptation to the market. There is a strong MeCulture, and it seeks personalization, “customization” and “tuning-your choice” inall kinds of service. Companies must be prepared to show a concern to adapt toanybody.
  98. 98. 5. Customization + “acquired rights” Possible evolution of the bonus-malus model, given that the current system is deficient or to a certain extent used up by the customers. Offering some other kind of added value, beyond economic •To loyal customers •To customers without claims •To valuable customers
  99. 99. 6. Proactive communication (1 of 6)Customer communication must not be just sales. This trend is based on the ideathat of every three messages only one is a sales message. Customers rejectrelational communication because they are fed up with sales messages. Theywant clear and detailed communication, personalized and which creates anemotional link with practical and useful information.They don’t want the internet as a paper substitute, but as a complement(newsletters, invoices, etc). They want an internet that is both reactive andproactive. To be able to consult web-sites that are rich in practical content andwhich also send them interesting things without them having to ask for it. Theywant a “measured” use of the telephone (it is generally a nuisance, unless youare called by a “known agent”), a friendly internet with valuable information, andpersonalization with care and support in moments of usage (”moments of truth”)of the service.
  100. 100. 6. Proactive communication (2 of 6)• About rights and features: protection/security.• Personalization of the contents• Offering interesting advice• Making references to values: quality of life, solidarity, sustainability, respect, honesty, environment, social responsibility and social cohesion.• Doing customer experience management surveys.• Communication with stakeholders that are coherent with the predominant social values.
  101. 101. 6. Proactive communication (3 of 6)• Customer experience manager• Insured day events• Insurance encyclopedia• Show price comparison tables. Better that they use ours than an intermediary.• Imitate the consumer (radical transparency)• Explain what we do with the money.• Show “they do what they preach and they preach what they do”• In any event lots of internet!
  102. 102. 6. Proactive communication (4 of 6) “MEASURED” TELEPHONE Analyze the form and timing of communications: FRIENDLY INTERNET Signs of caring. Too much and too tiring. +++ CARE AND PERSONALIZATION  Communicate about VALUE: •Not sales (e.g.. Eroski Consumer) •Not excessive. •VERY Segmented.  Combine paper and e-mail
  103. 103. 6. Proactive communication (5 of 6)Other ideas:• Periodical information (prevention and other segmented issues) to customers.• Free seminars and workshops (prevention, etc) for customers.• Insurance and service manuals for customer use.• Occasional phone calls from managers just to ask “how are we doing?” The sleeping dragon will wake up, whether it is our company that wakes it or not..Coherent with ethics, transparency and credibility
  104. 104. 6. Proactive communication (6 of 6) TRANSITION MK 1.0 CRM 1.0 TO 2.0 WEB 1.0 Mobile phone 1. SMS not sales people. 2. Service information, about an incident, administration, etc. Call me button 3.-Innovate on the Web and make publicity out of it Video-conferences PERSONALIZATION 4.- Use video-conferences MORE RELIABLE SERVICE = TRUSTWORTHY INSURANCE
  105. 105. 7. “The experiential”...Feelings, emotions, thoughts, coherent with the best price, as the economic crisis will bring on a tendency towards low cost in all sectors and sub-sectors.• Experiential marketing allows the customer to experience different feelings or relive feelings that that they like or are pleasurable through products, goods and services from a company or service. This is achieved generating experiences through perceptions, feelings, thoughts, actions and relations. • Walt Disney is a case of a quality, service and experience model. Disney is a combination of experiences not just lots of movies and theme parks.“Disney is the Entertainment”, and the brand is aware of its influence in the world of children, in the “holístic” perception (Magic Kingdom) which they have of it.
  106. 106. 7. “Experiential”Achieve differentiation• Customer experience managers?• Customer - assessor relationship? Much more comfortable processes.• Treatment when recording an incident. Create a differential,• When communicating with the repair shop (comarketing) positive experience,• When using the “advantages”. worthy of being talked• Online channels should be a big support. about to others.• Interactive Communication = Greater and better relations. Beyond comparison.• Advantages and privileges (incremental benefits and excellence considerations) IN THE REPAIR SHOP for certain customers.• Joint cobranding actions with repair shops to loyalize good customers.• Actions to improve daily life (e.g. Unión Fenosa, Banesto: el antenista..)
  107. 107. The 4 pillars of emotional brandingEmotionalBranding Sensory Relation Vision Imagination Experiences
  108. 108. What is Experiential Marketing?Traditional marketing dealt with the RATIONAL left hemisphere of the brainEMK seeks the EMOTIONAL connection right hemisphere of the brainEXPERIENTIAL Marketing IS RELATIONAL EXP.
  110. 110. EXPERIENCE Circumstance or event lived through by a person The fact of having felt, known or witnessed something by somebody.EMOTION Change of mood, intense and fleeting, pleasant, expectant interest with which you take part in somethingSENSATION sensesFEELINGS Affective mood produced by events that impress you.lovemarkLIFE EXPERIENCE The fact of living or being alive The fact of experiencing something and its content
  111. 111. EMK, synonymous conceptsEXPERIENTIAL MARKETING PROVOKE EXPERIENCES….Sensorial Marketing ... of pleasure and sensorial enjoymentLife Experience Marketing … in events and happenings worthy of being talked aboutEmotional Marketing …to generate affection towards the brand… feelingsDynamic Marketing, Guerilla Marketing, … not to use conventional massViral Marketing, and so on (BTL) marketing
  112. 112. We seek… Pleasure, enjoyment Simple, comfortable, easy to use and to do business Mythical Mystical Church Authentic, cool Legend Adventure
  113. 113. The experiential matrix Experiential matrix ProvExp Brand Comunica- Visual Product Spatial Websites and EM co- Personal tions Identity presence environment others managementSensationsFeelingsThoughtsRelationsPerformancesSource: Schmitt, 1999
  114. 114. 8. Co-marketingComarketing: Customers want companies to cooperate to offer “realadvantages” from alliances.A strategy generally used to unite efforts and achieve ”doing more with less".These type of actions are also used to access validated databases, e.g. A bank, inexchange for a customer benefit, paid for by the company that gains the benefitof the database access. Co-marketing is a practice by which two differentcompanies cooperate to obtain a joint benefit or to look for synergies such asreducing costs.
  115. 115. 8. Co-marketing• “Bannering” actions and “shop within a shop” Explore all the possibilities to be present in… • Garage workshops • Commercial Centers (Automobiles) • Car Salesrooms … and similar locations. Review innovations of mutual interest.• Evaluate possible partners for joint prevention measures.
  116. 116. 8. Co-marketingTelepizza y Coca-Cola: Have launched a joint promotion in which forevery liter of Coca-cola on a customers’ order,Telepizza gives them a 1900 edition bottle(Hutchinson type), like the original bottle fromthe beginning of the 20th. century. Thepromotion is supported by a campaign, byDelvico, which appears on televisión, radio,internet and has merchandising support atpoints of sale.
  117. 117. 9. Lead a “cause” which is socially beneficial?Examples:•The OBRA SOCIAL of The Canaries Savings Bank (corporate message:“The Canaries Savings Bank, for the benefit of the people of theCanaries”).•Companies orient their social cause activities as a fundamental factor intheir raison d’être. The Canaries Savings Bank and the AdeccoFoundation have signed a collaborative agreement through which bothorganizations will take a set of joint actions to promote the employmentand social integration of people with disabilities.
  118. 118. 9. Lead a “cause” which is socially beneficial?Example:EGARSAT is a company that collaborateswith the Social Security to cover issues thatderive from industrial accidents andprofessional illnesses, coverage of theeconomic contribution for temporaryabsence from work, and commonmeasures to prevent accidents.
  119. 119. 10. The new segments-SeniorsIt is estimated that in 2060, this segment will account for 29.9% of the population.
  120. 120. Seniors
  121. 121. SeniorsPredominant segment.Value of the senior: on average they can remain a customer for 25 years.From the age of 55 they experience a change and feel the need to plan for their old age.
  122. 122. SeniorsCharacteristics: • They feel good, they feel young. • Active leisure. • Healthy but afraid of illness. • Buying power. • Looking for best Quality-price ratio. • High expectations when buying. • Users of basic technology. • Value the “face to face”
  123. 123. Multicultural Mk (cross-cultural)• Since the year 2000 Spain has had one of the highest rates of immigration in the world.• Immigrants now represent 12.2% of the population.• 2010 was the first year with a negative immigration index.• Second wave in 2015.
  124. 124. Multicultural Mk (cross-cultural)Rank Origin Population %age of all foreigners 1 Ibero-America 1,500,785 36.21% 2 Western Europe 872,694 21.06% 3 Eastern Europe 735,506 17.75% 4 North Africa 614,436 14.82% 5 Sub-Saharan Africa 170,843 4.12% 6 Far East 132,474 3.20% 7 Indian Sub-Continent 69,006 1.66% 8 North America 27,292 0.66% 9 Middle East 18,094 0.44% 10 Oceania 2,363 0.06%
  125. 125. Multicultural Mk (cross-cultural)• Average age 32.83 (in 2004).• 30% unemployed.• Occupation (2005)Services (59%)Construction (21%)Industry (12%)Agriculture (8%)• The rate of remittancesabroad is growing.
  126. 126. Multicultural Mk (cross-cultural)Aspect: • Culture defines buying behavior. • Each element of a culture conditions the MK.Company needs: • Empathetic attitude towards other cultures. • Be culturally neutral • Don’t assume transferability from one culture to another. • Involve people from other cultures in the decisions. • Multicultural practices in 2.0 interactivity.
  127. 127. Multicultural Mk (cross-cultural)Opportunities according to needs Get a Stage 3 Mortgage 20% (From 5th year onwards) Buy a car Finance childrens education Pension plans Stage 2 (Up to 5th year) Send money (more) Bring over family Consolidate work Micro consumer credit Rent or buy 80% home Stage 1 Work information & advice ( Up to 2nd year) Process and manage documentation Send money
  128. 128. Generational MkMost interesting generation groups: • Generation X • Generation Y • Einstein generation • Millennium generation.
  129. 129. Generational MkGeneration X (born between 1961 and 1979) The 1st generation educated to university level and with international experience. Drivers of flexibility and conciliation. Entrepreneurs. They value personal initiative and are skeptical about big companies.
  130. 130. Generational MkMK characteristics of generation X: • Culturally active. • Worried about the environment. • Value RSC companies. • Less materialistic. • Looking for experiences. • Want quality of life. • Not prepared to sacrifice happiness fro promotion. • Have caught up with Baby Boomers as main consumer group.
  131. 131. Generational MkGeneration Y (born between 1980 and 1994) The 1st generation that always lived with information technology. Comfortable and prosperous infancy. More individualistic than previous generations.
  132. 132. Generational MkMK characteristics of generation Y:Developing their preferences and purchasing patterns.Their world: Internet, mobile phones and videogames.Access to a great deal of information and communication.Intelligent, lively and objective.Ecological and defenders of good causes.Brand aware.Always connected.Will spend more than the baby boomers.
  133. 133. Generational MkThe Einstein generation (born after 1988) • They cross over with generation Y. • They seek authenticity and express their views clearly. • They like to win respect through their own efforts. • The most important thing is to be happy, enjoy life and develop yourself as a person. • Concept of honor as the end goal and success.
  134. 134. Generational MkThe millennium or net generation (born at end of C20.) • Born with a mouse and a computer screen. • They are forming, but are aware of a loss of values. • Hyper connected and globalized. • Used to spending a lot of time alone. • Educated, technically aware and multicultural. • Strong influence on the decisions of their parents who feel guilty about leaving them on their own.
  135. 135. Femenine MkWomen represent 80% of consumption.She is a more intelligent buyer and more aware of promotions, loyalty plans and prizes than men.
  136. 136. Femenine Mk•They are multi-role women - work-life and family life.•Their interests are professional ones as well as being related to the home and the children.•They are looking for products that give them privileges, not as mothers, but as women.•They have decision-making power and independence in matters of consumption.•Much more analytical consumers than men.
  137. 137. 11. New channels and marketing automationThere should be effort to embrace Marketing, sales and ITOrientating the company towards innovation for the customer requires a realignment wherethe customer defines the product and the processes. This cannot happen overnight but thereare 4 points to adopt to move in this direction • There should be an increase in efforts to adopt quantitative techniques to studyIncrease efforts with information and intensify efforts in developing the area of Business Intelligencethe Data Base • Many companies have already developed b.d.m projects so they can study an infinite number of variables, sales preferences, loyalty indices or the working of promotionsIntroduce customer • When the flow of information is standardized, there are improvements in sales andmetrics to analyze operationsprofitability • When data from distributors is combined with customer data, it creates a greater consensus in what are the profitability objectives and how to achieve them • The sales / accounts team must play a vital role in the design and execution of point ofInvolve the sales sale and distribution strategiesteams • At the same time they must be involved in segmentation and promotion design • The IT team must be involved and not isolated as they have to achieve a harmonizationUse IT to develop and global synchronization of the company dataquantitative projects • The IT must work together with everybody to achieve these objectives
  138. 138. Integral framework for automation Linked to the cheapening of technological applications thanks to changes in company management, as well as new paradigms for the management of customers: Ensure customer profitability. Exploit the growth potential of each customer Improve the capacity to negotiate with each customer. Increase the ability to adapt products and services to the customer. Adopting the concept of customer share, supplanting the old analysis model based on market share.
  139. 139. Integral framework for automationTechnology has enabled decision support systems as a result of a betterunderstanding of the environment, and especially, of each individual customer.Automation of marketing, through the creation of:•Information systems based on the processing of large quantities of information that can bestored (hard and soft).•Flexible and accessible databases.•Information integration processes from multiple repositories.•Support processes to clean up and enrich data (DB, normalization, etcetera).•Maintenance systems and data structure descriptions.•Methodologies for strategic business analysis.•Systems of data capture that are easy to use.•Statistical processes that are easy to use with a good deductive capacity.•Processes to capture and maintain customer relationships.•Integration of technology and Internet functionality in the new customer-companyenvironment.
  140. 140. Benefits of automationThe approached and tools of marketing automation allow the measurement andtangible quantification of the impact that marketing actions have on companyfinancial performance, all of it in an automatic and reliable manner.Others are: •Facilitate the creation of multi-channel and multi-phase marketing and sales campaigns.. •Improve the coordination of campaign implementation across the whole company due to the database management systems accessed online. •Strengthen marketing activity performance thanks to the number of reports, analysis and statistics that the information systems generate. •Reduce costs and increase ROI of marketing activities through having greater knowledge available from customer databases.
  141. 141. Functionality of automation ofmarketing Campaign design:Customer database constantly updated: - Objectives- Transactions - Segments- Contacts - Profiles- History - Audience- Etcetera - Channels - Steps and phases - Trials - Etcetera Real- measurement of campaign results: - Channel analysis Customer database analysis: - Response reports - Segmentation Campaign execution: - Analytical measurement - Profiles - Results -- Lifetime value - Personalization - ROI -- Profitability - Multi-channel integration - Reports -- Answers- - Follow up - Sales activities - Responses -Modeling - Call center -- Etc. - Data Capture - Etcetera - Etcetera
  142. 142. Trends in the digital world1. Blossoming of the Tablet PC. • They open a world of new uses and give fluidity to existing experiences. • Big expansion.2. Digital invades shops and restaurants. • Tablets are a great sales aid to product understanding. • They fit into the physical sale. • Invasion of digital signature.
  143. 143. Trends in the digital world 3. Generalized eCommerce. • Without fear • Social use 4. Everything connected to the internet. • Internet 3.0 3. Television connected. • The end of traditional programming for ever • HYBRID: TELE-PC-TABLET-SMARTPHONE AND ….
  144. 144. Trends in the digital world6. Need for “guides”. • For Internet search.7. Augmented reality.6. Digitalization of personal documents, culture and media • eInvoices • e-book, electronic press.7. Decrease in the influence of advertising.
  145. 145. Trends in the mobile phone worldIn Spain there are some 60 million mobiles (110% penetration).In 2011 50% will have access to Internet via mobile.
  146. 146. Trends in the mobile phone worldAccording to the study “Mobile applications: downloads and use” done by The Cocktail Analysis, 82% of the telephones in Spain connected to the Internet are smart-phones (the rest are 3G).59% connect to the Internet daily via mobile.Most frequent uses: • 50% consult e-mail daily • 36% daily on social networks (67% minimum of once a week) • On-line purchasing is the least used.
  147. 147. Trends in the mobile phone world
  148. 148. Trends in the mobile phone world
  149. 149. Trends in the mobile phone world
  150. 150. Trends in the mobile phone world
  151. 151. Customer contact Multi-channel •In some countries, they are expanding these contacts at times of insurance contract renewal •There is an opportunity for distributors with points of sale that bring the customer closer with Internet installed so the customer can consult •It is necessary to orient the business towards “customer experience” creating a relationship with products that cover the whole life cycle and adapts to them• The most important thing in the customer interaction is to know how to transmit the “value offered” so that distributors and insurers need to know how to win the customer in the moment of truth• This is not always going to be done in the same way, given that the same contact with two different customers can receive different evaluations. If done properly these contacts can cement a profitable relationship
  152. 152. 7 / Marketing Obsession with metrics
  153. 153. Why is there pressure on the marketingfunction? The large number of activities that seem to be a waste. The costs of marketing are very high and going up. A lack of accountability on the part of marketing to justify the productivity of their spend. Marketing functions are not generating big or important ideas to develop the company. Marketing functions are too focused on the short-term. Marketing functions are not worried enough about their true assets: brand, consumers and customers, service quality, intellectual capital, reputation and company image.
  154. 154. New criteria The money dedicated to marketing activities = investment. The “king” criteria to evaluate an investment is ROI (return on investment). From hence comes the concept of marketing accountability, which has two sources:  Accountability as the responsibility that the marketing manager has for the end result of his activities.  Accountability, in the sense that these activities must have a clear financial justification.
  155. 155. Key metrics for marketing accountability Metric Calculation Purpose1 Unit margin Unit price minus unit cost. Determine the value of incremental sales. Act as a guide to fix prices and the decisions on promotional activities.2 Margin (%) Unit margin as a %age of Compare the margins between different products, sizes, unit price. presentations. Determine the value of incremental sales. Act as a guide to fix prices and the decisions on promotional activities.3 Channel margin Channel profits as a %age ofEvaluate the added value of the channels in relation to channel end price. sale price. Calculate the effect that price changes have on each level or stage of the channel in final prices and the corresponding margins of each or other levels in the same channel or supply chain.4 Average unit price Total income by total unit Understand how the average price is affected by price sales. changes o the product mix.
  156. 156. Key metrics for marketing accountability Metric Calculation Purpose5 Variable and fixed Classify costs in two categories: those that Understand how costs are affected by sales costs change with volume (variable) and those volumes. that don’t (fixed).6 Marketing costs Relate those costs that are “marketing Understand how marketing costs vary over sales spend” against sales volumes. according to sales.7 Unit contribution Unit price minus variable unit costs. Determine the impact on profits of price changes. Calculate the sales break-even point.8 Contribution Unit contribution divided by unit price. Determine the impact on profits of changes margin(%) in volumes sold. Calculate the sales break-even point.9 Sales break-even Break-even per unit, divide the fixed costs Indicate approximately the “attraction” and point. by the unit contribution. capacity to generate profits from a project or Break-even in income levels, divide the activity. fixed costs by the contribution margin.
  157. 157. Key metrics for marketing accountability Metric Calculation Purpose10 Expected profit Adjust break-even calculation to Assure that the unit sales targets include profit objective. enable the company to reach the expected rate of return in terms of returns on sales, (ROS), ROI or other financial measure.11 Income objective Convert the expected profit in Assure that the income objectives terms of income using unit prices. enable the company to reach the Alternatively, combine the cost rate of return expected in terms data and objectives with the of returns on sales, (ROS), ROI or information about contribution other financial measure. margins.12 Net profit Sales income minus total costs. The basic profit equation of a company.13 (ROS, return on sales) Net profit as a %age of sales Calculate the percentage of income. income that converts to profits.14 (ROI, return on Net profit in relation to the A measure that calculates how investment) investment necessary to generate well a company is using its assets. those profits.
  158. 158. Key metrics for marketing accountability Metric Calculation Purpose15 Profit after tax Operational net profit after Show profit levels in terms of money (euros). tax less capital costs. Offers a more net differentiation between the levels of return than simple percentages.16 Time to recoup Time to recoup the initial A simple way to calculate the return. (payback) investment.17 (NPV, net present The value of future income Summary of the value of cash flows at different value) cash flow after deducting the periods of time. value of money over time.18 (IRR, internal rate of The discount rate with which Usually the Internal Rate of Return (IRR) is return) the net present value of an compared with the expected rate of return; if investment is zero. the IRR is greater the investment goes ahead; if less it does not.19 Return on marketing Incremental income Compare sales generated in terms of income investment (ROMI) attributed to marketing over with the costs of marketing to generate these marketing investment. sales. The percentage obtained helps to compare between different plans or projects of different scope.
  159. 159. 8 / A new way of being - manage and think marketing