"Its Just So 2.0 Out There" The 4Ps are Dead

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This is a peek at the new world of marketing that customers are demanding. No longer a matter of corporate hype, smart marketers are the leaders of customer engagement and conversations with their customers. Social media are the tools

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"Its Just So 2.0 Out There" The 4Ps are Dead

  1. 1. The 5Cs, Not the 4Ps By Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners, LLC Author: CRM at the Speed of Light MAN! It’s Just So 2.0 Out There
  2. 2. The Business World Changed "Companies used to focus on making new, better, or cheaper products and services....Now the game is to create wonderful and emotional experiences for consumers around whatever is being sold. Its the experience that counts, not the product." “ People…want capabilities and options, not uniform products…business is there to provide the tools.” “ The Knowledge Economy is giving way to the Creative Economy...” (Knowledge has become a commodity so the solution is to) "focus on innovation and design as the new corporate core competencies." BUSINESSWEEK, DECEMBER 19, 2005
  3. 3. The Business World Changed “ NBC Universal announced sweeping cuts to its television operations yesterday, demonstrating just how far a once-unrivaled network must now go to stay competitive with YouTube, social networks, video games and other upstart media.” – Washington Post, October 21, 2006
  4. 4. The Business World Changed It's official: YouTube and Verizon ink deal        Tuesday 11:50 AM | Cyrus Farivar | Engadget Mobile |                      |        Filed under: Handsets , Verizon Wireless                                                                      Well folks, we told you just over three weeks ago about "advanced talks" between Verizon and YouTube, and it looks like as of today, the two lovebirds have just tied the knot officially. with their joint service will launch next month. However, there are a couple of points to take stock of: first, it's exclusively on Verizon, which means it's going to run on V CAST -- costing you an extra $15 a month, that is, assuming you have a V CAST-capable handset. (According to one analyst, Roger Entner, only about 10 percent of Verizon's 20 million users with such phones have signed up for the service so far.) Second, Verizon's exclusivity is only going to be for "a short time," and it's more than likely that T-Mobile, Sprint, Cingular and friends have already been knocking at YouTube's door. Third, as you probably know, YouTube is a two-way street (you know, that whole "user-generated" thing we've been hearing so much about) and as such, Reuters is reporting that you'll be able to post videos directly from your handset with the use of a "five-digit short code instead of an email address." Finally, the Mercury News points out that you won't have access to all of YouTube, just what Verizon decides that you'll want via its proprietary YouTube channel. So that means you can probably forget about catching episodes of "Ask A Ninja" on your bus ride home. Still, diluted YouTube is better than no YouTube; we can almost hear thousands of freshly-bought VX9900s flipping open to check out the content already. Read - Reuters Read - San Jose Mercury News   Permalink | Email this | Comments
  5. 5. The Business World Changed Second Life Game Gets Virtual Phones   The accessories from YouNeverCall look and act like cell phones.   By Thomas Claburn InformationWeek   Nov 28, 2006 06:53 PM The communications revolution has gone virtual. YouNeverCall , an online mobile phone store, is making free virtual cell phones available to Second Life residents. "The virtual cell phones we are offering on Second Life are more than just a fun accessory," said Sam Michelson, CEO of YouNeverCall, in a statement. "The cell phones let Second Life residents send and receive text messages, as well as hold the virtual phone to their ear. They ring like real cell phones and, best of all, require no special download." Really, they're just a fun accessory — in a world where teleportation is an option, you don't need a telephone to reach out and touch someone. But Second Life residents may find them compelling as a fashion statement, at least until someone finds a way to dial into Second Life from real-world phones. The YouNeverCall virtual kiosk in Second Life is located in the Alston region at coordinates 95, 58, 22 .
  6. 6. <ul><li>Web. 2.0 (or Business Web, or Live Web) </li></ul><ul><li>User created content </li></ul><ul><li>Co-creation of value </li></ul><ul><li>Experience economy or support economy </li></ul><ul><li>Customer managed experiences </li></ul><ul><li>Authenticity </li></ul><ul><li>Transparency </li></ul><ul><li>Social networking </li></ul><ul><li>Social media </li></ul><ul><li>Customer advocacy </li></ul><ul><li>Fixed mobile convergence </li></ul><ul><li>User communities </li></ul><ul><li>Experience mapping and design </li></ul><ul><li>Experiences as economic outputs </li></ul><ul><li>Trusted sources </li></ul><ul><li>CEM </li></ul><ul><li>Voice of the customer </li></ul><ul><li>Return on customer </li></ul><ul><li>Customer value </li></ul><ul><li>Customer ecosystem </li></ul><ul><li>Personal value chain </li></ul><ul><li>Service Oriented Architecture </li></ul><ul><li>On Demand </li></ul><ul><li>Prosumer </li></ul><ul><li>Conversations, not marketing “spin” </li></ul><ul><li>Social customer </li></ul><ul><li>Personalization </li></ul><ul><li>Services as a platform </li></ul>Characteristics of the Ecosystem
  7. 7. <ul><li>Pre 90s </li></ul><ul><ul><li>Product/Demand driven corporate ecosystem </li></ul></ul><ul><ul><ul><li>Separate demand and supply chains </li></ul></ul></ul><ul><li>Late 90s to nearly present </li></ul><ul><ul><li>Customer driven corporate ecosystem </li></ul></ul><ul><ul><ul><li>The enterprise value chain </li></ul></ul></ul><ul><li>Present </li></ul><ul><ul><li>Customer ecosystem </li></ul></ul><ul><ul><ul><li>2006 - the “Era of the Social Customer” </li></ul></ul></ul><ul><ul><ul><li>Personal value chain </li></ul></ul></ul>The Business World Changed
  8. 8. Characteristics of the Ecosystem <ul><li>Generation C – Cross-generation ( source: Springwise ) </li></ul><ul><ul><li>C stands for: </li></ul></ul><ul><ul><ul><li>Content </li></ul></ul></ul><ul><ul><ul><li>Connected </li></ul></ul></ul><ul><ul><ul><li>Creative </li></ul></ul></ul><ul><ul><ul><li>Collaborative </li></ul></ul></ul><ul><ul><ul><li>Contextual </li></ul></ul></ul><ul><ul><li>Age is irrelevant to Gen C (except me – I’m getting OLD ) </li></ul></ul><ul><ul><li>Its nature and ease of information availability makes it empowered </li></ul></ul>
  9. 9. <ul><li>Sea change in use of technology </li></ul><ul><ul><li>Gen Y first generation to spend more time on the ‘Net than watching TV </li></ul></ul><ul><ul><li>Implications for marketing staggering </li></ul></ul><ul><ul><ul><li>40% of Gen Xers do research online </li></ul></ul></ul><ul><ul><ul><li>Only 10% of seniors </li></ul></ul></ul>Characteristics of the Ecosystem
  10. 10. <ul><li>Phase 1 – The customer and vita passiva </li></ul><ul><ul><li>New definition of trusted source </li></ul></ul><ul><ul><ul><li>Carnegie Mellon study of Facebook participants </li></ul></ul></ul><ul><ul><li>Information available nearly instantaneously – either structured or unstructured via the web (Google, Yahoo, MSN) </li></ul></ul><ul><ul><li>On Demand software as a service (salesforce.com, etc.) </li></ul></ul><ul><ul><li>Enterprise value chain supersedes siloed supply, demand & support chains </li></ul></ul><ul><ul><li>Link between lifestyle and business – consumers adopt “sexy” content </li></ul></ul>Characteristics of the Ecosystem
  11. 11. <ul><li>Phase 2 – The customer and vita activa – Era of the Social Customer </li></ul><ul><ul><li>Social networks as active participants in effecting change (blogosphere, podcasting) </li></ul></ul><ul><ul><li>Collaboration between company & customers to provide useful value for each </li></ul></ul><ul><ul><li>Personal value chain subsumes enterprise value chain </li></ul></ul><ul><ul><li>Ubiquitous technologies leading platform </li></ul></ul><ul><ul><li>The Live Web (Web 2.0) (MySpace, Facebook) </li></ul></ul><ul><ul><li>Customer begin to include business as feature of life choice, not a separate factor – user generated content becomes part of business (salesforce.com AppExchange, Samsung open IP to engineers) </li></ul></ul><ul><ul><li>The social customer is increasingly a mobile customer </li></ul></ul>Characteristics of the Ecosystem
  12. 12. <ul><li>Each customer wants a personalized experience… </li></ul><ul><li>They couldn’t care less if they are high value or low value customers </li></ul><ul><ul><li>They don’t know if they are high or low value to you </li></ul></ul><ul><ul><li>But you have to accommodate even low value customers because of what they can do to you if you don’t </li></ul></ul><ul><li>But how do you begin to “know” millions of customers? </li></ul><ul><ul><li>First, understand how they interact with you at every point, in every channel </li></ul></ul><ul><ul><ul><li>That means detailed mapping, not just surveys, etc. </li></ul></ul></ul><ul><ul><li>Ultimately, the tools for the customer to manage their own experience are paramount </li></ul></ul><ul><ul><ul><li>Give them access to information that allows them to make informed, empowering choices which thus, provide value </li></ul></ul></ul>Characteristics of the Ecosystem
  13. 13. <ul><li>Satisfaction? Nah </li></ul><ul><ul><li>Tryptophan effect </li></ul></ul><ul><ul><li>Less & less useful as we move along the 21 st century timeline </li></ul></ul><ul><ul><ul><li>HBR – 65% of the customers surveyed who left a company were satisfied when they left </li></ul></ul></ul><ul><ul><ul><li>Same survey in automotive shows that with 90% satisfaction, only 40% rebought </li></ul></ul></ul><ul><li>Loyalty? Nope </li></ul><ul><ul><li>HBR Study – Loyalty/Profitability correlates Mediocre/Fair </li></ul></ul><ul><ul><li>Brand loyalty becoming largely a myth, though still valuable in context and can be misunderstood easily </li></ul></ul><ul><ul><ul><li>Oklahoma regional banks </li></ul></ul></ul><ul><ul><ul><li>Hilton Hotels </li></ul></ul></ul><ul><li>Advocacy – Yeah baby </li></ul><ul><ul><li>Net Promoter Score ( Fred Reichheld , The Ultimate Question ) </li></ul></ul><ul><ul><li>Emotional metrics </li></ul></ul>Characteristics of the Ecosystem
  14. 14. <ul><li>Verbal terrorists are rising to new levels of activity </li></ul><ul><ul><li>Conventional, oft quoted research from companies like TARP say: </li></ul></ul><ul><ul><ul><li>Advocates will speak to between 5 and 9 people about what they love </li></ul></ul></ul><ul><ul><ul><li>Verbal terrorists will speak to between 9-16 people </li></ul></ul></ul><ul><ul><li>Current reality is that a verbal terrorist can reach millions of people through blogs, podcasts, and online communities. </li></ul></ul><ul><ul><ul><li>2005 “Dell Hell” from “The Buzzmachine” - Study entitled “Measuring the Influence of Bloggers on Corporate Reputations” (2005, Market Sentinel, Onalytica, ImmediateFuture.com) found that </li></ul></ul></ul><ul><ul><ul><li>Bloggers as a group were the second most influential group about Dell service after Dell itself and had more impact than Dell on negative customer service rather than positive customer service </li></ul></ul></ul><ul><ul><ul><li>The Buzzmachine buzz penetrated the mainstream press. </li></ul></ul></ul><ul><ul><ul><ul><li>Second most frequent references to “Dell Hell’ story after Buzzmachine was the NY Times. </li></ul></ul></ul></ul>Characteristics of the Ecosystem
  15. 15. <ul><li>Differentiators are no longer products & services </li></ul><ul><ul><li>Pretty much the same from company to company </li></ul></ul><ul><li>Key differentiator is the customer’s experience with the company </li></ul><ul><ul><li>Provides a business value for the experience with the products/services </li></ul></ul><ul><ul><li>Comfort </li></ul></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Simplicity </li></ul></ul><ul><ul><li>Ubiquity </li></ul></ul><ul><ul><li>Timeliness </li></ul></ul><ul><ul><li>Contemporary technology use (e.g. mobile technologies, not Oracle) </li></ul></ul><ul><ul><li>Wow factor </li></ul></ul><ul><ul><li>Customer feels sense of importance, self-control, ownership </li></ul></ul>New Business Model
  16. 16. <ul><li>2007: year of web 2.0 for customer engagement </li></ul><ul><ul><li>cScape study </li></ul></ul><ul><ul><ul><li>64% - joint online & offline experiences essential for engagement </li></ul></ul></ul><ul><ul><li>BUT </li></ul></ul><ul><ul><ul><li>84% haven’t moved far or even started mapping customer experiences or even identifying customer touchpoints </li></ul></ul></ul><ul><ul><li>cScape study </li></ul></ul><ul><ul><ul><li>95% - personalized experiences essential or useful for engagement </li></ul></ul></ul><ul><ul><ul><li>This goes beyond micro-segmenting </li></ul></ul></ul><ul><ul><li>BUT… </li></ul></ul><ul><ul><ul><li>37% are providing no personalization at all </li></ul></ul></ul>New Business Model
  17. 17. Old School Irony… Source: BearingPoint/EIU, 2004
  18. 18. <ul><li>cScape study finds customer experience “major barriers” – which are absurd given the other results </li></ul><ul><ul><li>From company respondents </li></ul></ul><ul><ul><ul><li>66% - lack of resources & time </li></ul></ul></ul><ul><ul><ul><li>50% - disconnected systems & technologies </li></ul></ul></ul><ul><ul><ul><li>38% - lack of skills & training </li></ul></ul></ul><ul><ul><ul><li>37% - lack of finances </li></ul></ul></ul><ul><ul><ul><li>36% - lack of regular processes/suitable methodology </li></ul></ul></ul><ul><ul><li>From agency (marketing) respondents </li></ul></ul><ul><ul><ul><li>49% - lack of boardroom buy-in (30% at company) </li></ul></ul></ul><ul><ul><ul><li>44% - problems with organizational culture (34% at company) </li></ul></ul></ul>Old School Irony…
  19. 19. <ul><li>Introduction of “Web 2.0” business/marketing functions: </li></ul><ul><ul><li>User generated content </li></ul></ul><ul><ul><ul><li>23% - using it already </li></ul></ul></ul><ul><ul><ul><li>42% - will use it in 2007 </li></ul></ul></ul><ul><ul><ul><li>34 % - no plans </li></ul></ul></ul><ul><ul><li>Business blogs </li></ul></ul><ul><ul><ul><li>17% - using it already </li></ul></ul></ul><ul><ul><ul><li>35% - will use it in 2007 </li></ul></ul></ul><ul><ul><ul><li>48% - no plans </li></ul></ul></ul><ul><ul><li>Podcasts </li></ul></ul><ul><ul><ul><li>18% - using it already </li></ul></ul></ul><ul><ul><ul><li>33% - will use it in 2007 </li></ul></ul></ul><ul><ul><ul><li>49% - no plans </li></ul></ul></ul><ul><ul><li>Videocasts </li></ul></ul><ul><ul><ul><li>17% - using it already </li></ul></ul></ul><ul><ul><ul><li>35% - will use it in 2007 </li></ul></ul></ul><ul><ul><ul><li>48% - no plans </li></ul></ul></ul>Old School Irony… To New Business Model?
  20. 20. <ul><li>Four Ps are done as a lead approach </li></ul><ul><ul><li>Product, Price, Promotion, Placement are ka-Put. </li></ul></ul><ul><ul><ul><li>No longer valuable to be thinking in those terms </li></ul></ul></ul><ul><ul><ul><li>They are the terms of a world where value rested in the products produced and the services provided </li></ul></ul></ul><ul><ul><ul><li>Customer is object of sale, not subject of a relationship </li></ul></ul></ul><ul><li>Because of things like the Cluetrain Manifesto, the perceptions of marketing campaigns immediately calls up “hype”, “buzz”, “spin”, “b.s”, “corporate shills” (in so many words), etc. </li></ul>The New Marketing Model
  21. 21. <ul><li>The Cluetrain Manifesto: The End of Business As Usual </li></ul><ul><ul><li>Markets are conversations </li></ul></ul><ul><ul><li>Markets consist of human beings, not demographic sectors </li></ul></ul><ul><ul><li>Networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge </li></ul></ul><ul><ul><li>There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone </li></ul></ul><ul><ul><li>Already companies that speak in the language of the pitch…are no longer speaking to anyone </li></ul></ul><ul><ul><li>Most marketing programs are based on the fear that the market might see what’s really going on in the company </li></ul></ul>The New Marketing Model
  22. 22. <ul><li>The Cluetrain Manifesto (Part II) </li></ul><ul><ul><li>Markets do not want to talk to flacks & hucksters. They want to participate in the conversations going on behind the corporate wall </li></ul></ul><ul><ul><li>We want access to your corporate information, to your plans & strategies, your best thinking, your genuine knowledge. We will not settle for the 4-color brochure, for websites chock-a-block with eye candy but lacking any substance </li></ul></ul><ul><ul><li>The jargon may impress your investors but it doesn’t impress us and if you don’t, your investors will take a bath </li></ul></ul><ul><ul><li>We are immune to advertising. Just forget it </li></ul></ul><ul><ul><li>We’ve got some ideas for you too; some new tools we need, some better service. Stuff we’d be willing to pay for. Got a minute? </li></ul></ul><ul><ul><li>We want you to take 50 million of us as seriously as you take one reporter from the Wall Street Journal </li></ul></ul><ul><ul><li>When we’re not busy being your “target market” many of us are your people….Speaking to the market is Marketing’s job </li></ul></ul>The New Marketing Model
  23. 23. <ul><li>Broken Marketing Logic </li></ul><ul><ul><li>Communicates mostly tangible value through attributes of the product </li></ul></ul><ul><ul><li>Focuses on transaction and exchange value </li></ul></ul><ul><ul><li>Can't help but provide asymmetric Information (selective communication of product value attributes to stimulate desired customer response) </li></ul></ul><ul><ul><li>Customers are viewed as passive objects of a sale or resources to be acted upon and owned </li></ul></ul><ul><ul><li>Aims to merely satisfy the customer through mixing the firms marketing resources (4P's) </li></ul></ul><ul><ul><li>Manipulates the language and systems of relationship marketing to suit own ends </li></ul></ul><ul><ul><li>Places primacy of firm over customer value </li></ul></ul>The New Marketing Model
  24. 24. <ul><li>New Marketing Logic </li></ul><ul><ul><li>Emphasizes engagement and exchange of intangibles such as skills, knowledge and processes </li></ul></ul><ul><ul><li>Provides &quot;offerings&quot; which generate experiences which create personalized value </li></ul></ul><ul><ul><li>Value & values are given, in return, value and values are received (CRM #1) </li></ul></ul><ul><ul><li>Moves into the customer sphere of &quot;value-in-use&quot; by assisting the customer to derive value from multiple, ongoing interactions with the firm and its products and services </li></ul></ul><ul><ul><li>Focuses on assisting customer to achieve multiple experience desired outcomes, which vary according to unique customer events and contexts </li></ul></ul><ul><ul><li>Develops customer capabilities and makes knowledge the primary source of competitive advantage </li></ul></ul><ul><ul><li>Authenticity & story-telling are marketing mantras </li></ul></ul><ul><ul><li>Aligns business partners and sales teams with the customer's view of value </li></ul></ul><ul><ul><li>Creates mutual alignment and a blurring of roles between company and customer and the co-creation of value </li></ul></ul><ul><ul><li>Marketing shifts to centerstage as an holistic organizing process of value-creation </li></ul></ul>The New Marketing Model
  25. 25. <ul><li>Because the model is built on trust, the reputation of the company, not the message, becomes the brand </li></ul><ul><ul><li>That means, both the perception but also the actual quantified assessment of the marketing practices as certified by third parties (TRUSTe, etc.) </li></ul></ul><ul><ul><li>The practical side would be an authenticated or accredited message that is validated by the ISP or whoever is transmitting it. </li></ul></ul><ul><li>Marketing becomes the center point for engagement of the customer </li></ul><ul><ul><li>Messages are not to be pushed at the customer about products and services; </li></ul></ul><ul><ul><li>Marketing uses the media tools that are available to engage the customer </li></ul></ul><ul><ul><li>But with authenticity (Walmart & Edelman screw-up) </li></ul></ul>The New Marketing Model
  26. 26. <ul><li>Authenticity and trust is what matters – more than “type” of marketing </li></ul><ul><ul><li>Each of them is valid and potentially valuable as long as the message is engaging & empowering for the customer </li></ul></ul><ul><ul><li>Relationship Marketing </li></ul></ul><ul><ul><li>Experiential Marketing </li></ul></ul><ul><ul><li>Search Engine Marketing </li></ul></ul><ul><ul><li>Email Marketing </li></ul></ul>The New Marketing Model
  27. 27. <ul><li>Customer Analytics is changing </li></ul><ul><ul><li>The value of the data is in its use for insight </li></ul></ul><ul><ul><li>Tendency to place too much importance on the data itself </li></ul></ul><ul><ul><ul><li>Sony did that once and lost $100,000,000 in less than 24 hours due to a misplacement of goods because of their interpretation of data associated with customer demand & geographic distribution </li></ul></ul></ul><ul><ul><ul><li>Affected their stock price – dropped $3.00 that day </li></ul></ul></ul><ul><ul><li>Often focused around segmentation </li></ul></ul><ul><ul><ul><li>Now has to focus around microsegmentation </li></ul></ul></ul><ul><ul><ul><li>Or even better, personalization </li></ul></ul></ul><ul><ul><ul><li>Use of social tagging </li></ul></ul></ul><ul><ul><ul><li>Gathering of data from user communities </li></ul></ul></ul>The New Marketing Tools
  28. 28. <ul><li>Power of social networks </li></ul><ul><ul><li>Linked In – 10 million members </li></ul></ul><ul><ul><li>MySpace – 106 million members </li></ul></ul><ul><ul><li>Facebook – 12 million members </li></ul></ul><ul><ul><li>ASmallWorld – exclusive membership for those who have social networks </li></ul></ul><ul><ul><ul><li>Social networks as capital </li></ul></ul></ul><ul><ul><li>Self-created customer microsegmentation/personalization </li></ul></ul>The New Marketing Tools
  29. 29. <ul><li>Blogs (GM Fastlane, IBM 1200+, Engadget) </li></ul><ul><li>Podcasts (Knowledge At Wharton, ESPN) </li></ul><ul><li>Vlogs/Videocasts (Rocketboom) </li></ul><ul><li>User Communities (Facilitated or Open) (Threadless) </li></ul><ul><li>Social Networks (P&G Vocalpoint) </li></ul><ul><ul><li>Social Network analysis (Haystack) </li></ul></ul><ul><li>User created content (collaboration) (Second Life) </li></ul><ul><li>Customer experience mapping and design (Me) </li></ul><ul><li>New marketing techniques (viral marketing, etc.) (The Wise Marketer) </li></ul><ul><li>“ Transparent Interaction” – (P&G working with customer to promote innovations they can’t use by opening up their own IP </li></ul>The New Marketing Tools
  30. 30. “ We have to create a great experience every time you touch the brand, and the design is a really big part of creating the experience and the emotion. We try to make a customer’s experience better, but better in her terms.” – A.G. Lafley, CEO Proctor & Gamble Case Study: Proctor & Gamble “ I think its value that rules the world. There’s an awful lot of evidence across an awful lot of categories that consumers will pay more for better design, better performance, better quality, better value and better experiences.” – A.G. Lafley, CEO, Proctor & Gamble
  31. 31. <ul><li>Focused around the co-creation of value and user communities </li></ul><ul><ul><li>Sales/Marketing </li></ul></ul><ul><ul><ul><li>Vocalpoint – 600,000 moms </li></ul></ul></ul><ul><ul><ul><li>Tremor – 225,000 teens </li></ul></ul></ul><ul><ul><li>Research </li></ul></ul><ul><ul><ul><li>Innovation Network – 80,000 scientists </li></ul></ul></ul><ul><ul><ul><li>Technology entrepreneur networks </li></ul></ul></ul><ul><ul><ul><li>Benefits? </li></ul></ul></ul><ul><ul><ul><ul><li>In 2001 – 20% of ideas, products, technologies external </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In 2004 – 35% of ideas, products, technologies external </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In 200X – 50% of ideas, products, technologies external </li></ul></ul></ul></ul>Case Study: Proctor & Gamble
  32. 32. <ul><li>Perhaps the most innovative company in the U.S. when it comes to understanding of the benefits of customer ecosystem </li></ul><ul><ul><li>They emphasize the “desired consumer experience” as their primary design focus </li></ul></ul><ul><ul><ul><li>Taste, smell, feel of products – not just utility </li></ul></ul></ul><ul><ul><li>Connect & Develop program </li></ul></ul><ul><ul><ul><li>Moving technology and ideas between cross-functionally </li></ul></ul></ul><ul><ul><ul><ul><li>Crest Whitestrips involved oral care unit (whitening teeth), corporate R & D (film technology), and fabric/home care (bleach experts) </li></ul></ul></ul></ul><ul><ul><ul><li>Tie the effort to working with consumers too </li></ul></ul></ul><ul><ul><ul><ul><li>50 technology entrepreneurs who scour for external resources including customers </li></ul></ul></ul></ul><ul><ul><li>Use of ethnographers to try to understand the activities of individuals in the context of social anthropology </li></ul></ul>Case Study: Proctor & Gamble
  33. 33. <ul><li>Contemporary Marketing </li></ul><ul><ul><li>Secret Sparkle body spray products launched Feb. 2005 </li></ul></ul><ul><ul><ul><li>Not campaign focused </li></ul></ul></ul><ul><ul><ul><li>Blog SparkleBodySpray.com launched May 2005 </li></ul></ul></ul><ul><ul><ul><ul><li>12,000 visitors per week </li></ul></ul></ul></ul><ul><ul><ul><ul><li>25 minutes per visitor per visit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Four teenage authors under identities of Vanilla, Tropical, Peach, Rose (4 body spray names) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Music, fashion, sports, dating, parties </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Interactive activities e.g. building dream date (choice of males) that you can send to a friend </li></ul></ul></ul></ul><ul><ul><ul><li>Results? </li></ul></ul></ul><ul><ul><ul><ul><li>0.8% of the $10.4 billion antiperspirant/deodorant market by July 2005 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Do the math - $83 million in five months </li></ul></ul></ul></ul>Case Study: Proctor & Gamble
  34. 34. &quot;You're starting to see big advertisers pull money out of television,&quot; said Michael Goodman, a senior analyst at the Yankee Group. &quot;Proctor & Gamble announced...that they are pulling money out of TV advertising because they felt they weren't getting enough bang for their bucks, and they are looking at video games as a place where they can.&quot; Case Study: Proctor & Gamble
  35. 35. <ul><li>Virtual World, Cyber economy </li></ul><ul><ul><li>Avatar-existence </li></ul></ul><ul><ul><ul><li>American Eagle </li></ul></ul></ul><ul><ul><ul><li>Starwood Hotels </li></ul></ul></ul><ul><ul><ul><li>Alcatel – VOIP </li></ul></ul></ul><ul><ul><ul><li>Borough of Queens, NY </li></ul></ul></ul><ul><ul><ul><li>IBM </li></ul></ul></ul>Case Study: Second Life $354,558
  36. 36. <ul><li>Collaboration in value creation between customer & company </li></ul><ul><ul><li>Transparency where it never existed before </li></ul></ul><ul><ul><ul><ul><li>The world of PC/Video Games is a prototype of this new model </li></ul></ul></ul></ul>= = Case Study: PC/Video Gaming
  37. 37. <ul><li>Counterstrike 2004-2005 </li></ul><ul><ul><li>30,000 game servers </li></ul></ul><ul><ul><li>85,000 players at any given second 24 X 7 </li></ul></ul><ul><ul><li>4.5 billion minutes per month played </li></ul></ul><ul><ul><li>18,000,000 retail units sold </li></ul></ul><ul><ul><li>88% of PC online market </li></ul></ul><ul><ul><li>Documented best practices on mod development using their engine ( http://developer.valvesoftware.com/wiki/Making_a_MOD ) </li></ul></ul>Case Study: PC/Video Gaming
  38. 38. <ul><li>What does this mean for marketing? </li></ul><ul><ul><li>IDG – MI2006 Consumer Research Report </li></ul></ul><ul><ul><ul><li>17% of gamers actually find official publisher game sites useful </li></ul></ul></ul><ul><ul><ul><li>70% of gamers get game specific info from forums, game fansites, and third party news websites </li></ul></ul></ul><ul><ul><ul><ul><li>The concept of trusted source is now entirely different – and that includes YOU folks </li></ul></ul></ul></ul><ul><ul><li>In-game advertising </li></ul></ul><ul><ul><ul><li>By 2010, between $1.6 & 1.8 billion ( source: Massive, Inc. ) </li></ul></ul></ul><ul><ul><ul><li>Yankee Group thinks $1 billion by that time </li></ul></ul></ul>Case Study: PC/Video Gaming
  39. 39. <ul><li>Custom T-Shirt Company </li></ul><ul><ul><li>User Community-focused </li></ul></ul><ul><ul><ul><li>Close to 400,000 members – all word of mouth </li></ul></ul></ul><ul><ul><li>User content creation </li></ul></ul><ul><ul><ul><li>Community members design the t-shirts </li></ul></ul></ul><ul><ul><ul><li>Community members vote on their favorites </li></ul></ul></ul><ul><ul><ul><li>Threadless produces them – 1000 – limited edition for each winner </li></ul></ul></ul><ul><ul><ul><li>Threadless shares the revenue with the designers </li></ul></ul></ul><ul><ul><ul><li>Premium pricing </li></ul></ul></ul>Case Study: Threadless
  40. 40. <ul><li>Adrants </li></ul><ul><ul><li>Creatives portfolios </li></ul></ul><ul><li>The Wise Marketer </li></ul><ul><li>Chief Marketer </li></ul><ul><li>Springwise </li></ul><ul><li>1to1 Magazine/Online </li></ul><ul><li>B2B Magazine/Online </li></ul>Interesting Resources
  41. 41. THANK YOU For further information: Paul Greenberg President, The 56 Group, LLC Chief Customer Officer, BPT Partners [email_address] 703-551-2337 Blog: www.the56group.typepad.com Podcast Feed: www.the56group.typepad.com/route_56_podcast/rss.xml BPT Partners website: http://www.bptpartners.com

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