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.

1. Is it time to stop feeding
the marketing monster?
#stopfeedingthemonster
Luke Brynley-Jones @lbrynleyjones

2. With the rise of
social media, we’ve
learned that building
relationships with
I’m your
biggest fan
relationships with
our customers isn’t
just fun…
… it’s profitable.

3. When customers
engage with a business
through social media
they contribute aboutthey contribute about
5.6 percent more to the
firm's bottom line than
customers who do not.
Ram Bezawada, PhD, University of Buffalo School of Management

4. On average,
companies spend
just 8.4% of their
TheCMOSurvey.org
just 8.4% of their
marketing budget
on social media.

5. 59% of businesses
plan to increase
their spend ontheir spend on
social media in 2013
Technorati Media – Digital Influence Report 2013

6. The global spend for
advertising is around $500
billion.
Imagine how many friends
you could make with that!

7. But it’s not happening.

8. Let’s take a closer look at …
Online retailers.

9. Marketing Spend
Search & display
advertising
Email marketing
15%
4% 3%
Email marketing
Mobile marketing
Social media
78%
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. New visitor
Income from
new
customers
Revenue
New visitor
traffic
Visits by existing
customers
Income from
existing
customers41%
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. We estimate that
for each 1% of
shoppers who
return for a
subsequent visit,
overall revenue
will increase by
approximately… 10%

12. European retailers have
to recruit seven new
customers to equal the
repeat purchase value
of a single existing
7
of a single existing
customer.
5 US retailers have to sign
up five.
The ROI from Marketing to Existing Online Customers - Adobe Digital 2012

13. A 5% increase in
customer
retention can
increase a 75%increase a
company’s
profitability by…
75%
Zero Defections: Quality Comes to Services - Bain & Co. 1990

14. … of your
company’s future
revenue will come
80%
revenue will come
from just 20% of
your existing
customers.
Gartner Group 2012

15. Attracting new
customers will
cost your
company 5
5
times more
than keeping
an existing
customer.
Lee Resources Inc. (?)

16. Developing relationships
with customers also helps
you to make really good
friends…
Advocates.
Yummy!

18. Consumers who
have used social
media for customer
service will share
their positive
experience with
42
people for
social media
customers
vsvsvsvsexperience with
more people than
the general
population…
vsvsvsvs
15
people for the
general
population
American Express Survey - 2012

19. Here’s the problem…
The fact is businesses have
become addicted to the hunt.
We are spending billions squeezing
diminishing returns from advertising,
while our customers are talking to
someone else!
#WTFAreWeDoing

20. But, Luke! [I hear you cry]
What about Customer Service?

21. The global spend for…
Advertising = $500 billion
CRM = $50 billion
Customer service = $9 billion
Genesys G-Force, 2012

22. So – what’s the answer?So – what’s the answer?

23. Stop feeding the
marketing monster!
Stop wasting 80% of your marketing spend
on 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 revenue
over customer acquisition.

24. #stopfeedingthemonster#stopfeedingthemonster
Luke Brynley-Jones
@lbrynleyjones @oursocialtimes