Stop Feeding the Marketing Monster

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An alternative vision of the future of marketing. Presented by Our Social Times CEO, Luke Brynley-Jones, at Digital Shoreditch 2013. See @lbrynleyjones for more details.

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  • Engagement marketing – building relationships with customers – Yorkshire TeaContent marketing – providing great content that your target customers want to read and shareGenerating trust and providing value – that’s what relationships depend on in every walk of life
  • This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
  • This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
  • This recent survey analysed the behaviour of customers who engage with brands via social channels.The majority of comapanies that
  • Even large companies only have a small social media team – if you believe LinkedIn, consisting of only Social Media Strategists (Let’s be clear – if you manage a Facebook Page, you are not a strategist!)
  • What’s the result? In spite of spending ALL your marketing budget on getting NEW customers – you still manage to get 8% coming back.
  • As a result
  • As a result
  • As a result
  • As a result
  • Sony Europe has identified 53 of their top customers and nurtured them into online advocates. Each answers 1000s of online queries every year.
  • So why are we spending money on advertising instead of building relationships through social media?
  • Stop Feeding the Marketing Monster

    1. 1. Is it time to stop feedingthe marketing monster?#stopfeedingthemonsterLuke Brynley-Jones @lbrynleyjones
    2. 2. With the rise ofsocial media, we’velearned that buildingrelationships withI’m yourbiggest fanrelationships withour customers isn’tjust fun…… it’s profitable.
    3. 3. When customersengage with a businessthrough social mediathey contribute aboutthey contribute about5.6 percent more to thefirms bottom line thancustomers who do not.Ram Bezawada, PhD, University of Buffalo School of Management
    4. 4. On average,companies spendjust 8.4% of theirTheCMOSurvey.orgjust 8.4% of theirmarketing budgeton social media.
    5. 5. 59% of businessesplan to increasetheir spend ontheir spend onsocial media in 2013Technorati Media – Digital Influence Report 2013
    6. 6. The global spend foradvertising is around $500billion.Imagine how many friendsyou could make with that!
    7. 7. But it’s not happening.
    8. 8. Let’s take a closer look at …Online retailers.
    9. 9. Marketing SpendSearch & displayadvertisingEmail marketing15%4% 3%Email marketingMobile marketingSocial media78%Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012.
    10. 10. New visitorIncome fromnewcustomersRevenueNew visitortrafficVisits by existingcustomersIncome fromexistingcustomers41%8%Adobe Digital Index analyzed 33 billion visits to 180 online retail website in Europe and the United States from April 2011 to June 2012.
    11. 11. We estimate thatfor each 1% ofshoppers whoreturn for asubsequent visit,overall revenuewill increase byapproximately… 10%
    12. 12. European retailers haveto recruit seven newcustomers to equal therepeat purchase valueof a single existing7of a single existingcustomer.5 US retailers have to signup five.The ROI from Marketing to Existing Online Customers - Adobe Digital 2012
    13. 13. A 5% increase incustomerretention canincrease a 75%increase acompany’sprofitability by…75%Zero Defections: Quality Comes to Services - Bain & Co. 1990
    14. 14. … of yourcompany’s futurerevenue will come80%revenue will comefrom just 20% ofyour existingcustomers.Gartner Group 2012
    15. 15. Attracting newcustomers willcost yourcompany 55times morethan keepingan existingcustomer.Lee Resources Inc. (?)
    16. 16. Developing relationshipswith customers also helpsyou to make really goodfriends…Advocates.Yummy!
    17. 17. Consumers whohave used socialmedia for customerservice will sharetheir positiveexperience with42people forsocial mediacustomersvsvsvsvsexperience withmore people thanthe generalpopulation…vsvsvsvs15people for thegeneralpopulationAmerican Express Survey - 2012
    18. 18. Here’s the problem…The fact is businesses havebecome addicted to the hunt.We are spending billions squeezingdiminishing returns from advertising,while our customers are talking tosomeone else!#WTFAreWeDoing
    19. 19. But, Luke! [I hear you cry]What about Customer Service?
    20. 20. The global spend for…Advertising = $500 billionCRM = $50 billionCustomer service = $9 billionGenesys G-Force, 2012
    21. 21. So – what’s the answer?So – what’s the answer?
    22. 22. Stop feeding themarketing monster!Stop wasting 80% of your marketing spendon advertising.Shift your budgets to social customer service.Stop trying to sell to your friends.Empower your Customer Service team.Value customer retention and repeat revenueover customer acquisition.
    23. 23. #stopfeedingthemonster#stopfeedingthemonsterLuke Brynley-Jones@lbrynleyjones @oursocialtimes

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