JCK Talks 2015: Will you survive?
•Download as PPTX, PDF•
0 likes•1,141 views
Specifically for the jewelry industry. This is an introduction to the science behind disruptive innovation, inbound marketing, customer centric economics, and what jewelry retailers can do to survive (and grow) in a world where businesses that may have survived 100 years may not survive the next 10.
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (8)
Similar to JCK Talks 2015: Will you survive?
Similar to JCK Talks 2015: Will you survive? (20)
Recently uploaded
Recently uploaded (20)
JCK Talks 2015: Will you survive?
- 1. Will you survive? What you can do to grow in a world of new technologies Sam Mallikarjunan
- 2. Sam @Mallikarjunan Head of Marketing & Growth @HubSpot Labs
- 3. (Don’t lie)
- 9. How does inbound marketing work?
- 10. Can you out-help your competitors? (helping is hard!)
- 11. “We don’t make money when we sell things. We make money when we help customers make purchase decisions.” – Jeff Bezos
- 12. We live in the one of the most interesting periods in the history of commerce.
- 13. Disruptor Disruptee Personal computers Mainframe and mini computers Mini mills Integrated steel mills Cellular phones Fixed line telephony Community colleges Four-year colleges Discount retailers Full-service department stores Retail medical clinics Phonographs Traditional doctor’s offices Pianos Some examples of disruptive innovation include: Examples of Disruptive Innovations
- 14. The Kodak Moment Went Bankrupt Kodak Went Bankrupt
- 15. Not a disruptive innovation
- 19. 1877 • Edison invents the phonograph 1905 • 400,000 pianos produced 1914 • $56M 1919 • $158M 1944 • Steinway produces caskets with excess wood
- 20. We are at the very beginning of the greatest global transformation of our lives.
- 21. We live in an era of big bang disruptive innovation.
- 23. Just because your company has survived the last 100 years doesn’t mean it will survive the next ten.
- 24. >70% of businesses on the Fortune 1000 are new within the last decade.
- 25. “May you live in interesting times.” We are in a mass extinction of businesses.
- 26. Diamonds may be forever, but the way they’re sold isn’t.
- 27. Imagine a world where eCommerce delivers in 30 minutes or less.
- 28. Imagine a world where every home has a 3D Printer.
- 29. “Our customers want to try the jewelry on before they buy it.”
- 30. Not possible now doesn’t mean
- 31. Anytime you can say “I’m safe because my customer needs…” you’ve identified a job-to-be-done.
- 32. No one wants a ¼ inch drill bit. They want a ¼ inch hole.
- 34. The company that best solves for the customer wins.
- 36. Disruptors are coming for you.
- 38. Your extendable core is the job you do for customers that a competitor couldn’t replicate without adopting the same cost- structure. An Extendable Core Insulates You From Disruption
- 39. Inbound marketing creates an extendable core that insulates you from disruption.
- 40. It’s not all sunshine and rainbows.
- 41. Inbound marketing is a business model innovation based on the fact that it’s more economically efficient to create an experience that attracts consumers than it is to interrupt someone else’s.
- 42. You can’t improve what you can’t measure. (It’s pretty hard to justify, too.)
- 43. “I’m spending a bunch of money on marketing, and I’m making more money than I’m spending back.” The Old Marketing Math Model Expense Yearly Amount PPC $50,000 SEO Firm $6,000 Content Writing $60,000
- 45. • “I spend $W to acquire customer of persona X from source Y, and they spend an average of $Z with me over their lifetime.” • Customer Centric Economics Model
- 46. Starbucks has an AOV of ~$6* Using the AOV:COTA model, to get a 3:1 ratio a Starbucks marketer would spend ~$2 to acquire that $6 transaction. How Much Would You Spend? * *Source: KissMetrics
- 49. Time to Payback
- 50. So easy, pretty, and simple to understand, ain’t it? The Conventional Linear Buying Process
- 51. It’s not an end-state It’s an infinite loop
- 53. A Grand Unified Theory of eCommerce
- 54. A Grand Unified Theory of eCommerce
- 55. A Grand Unified Theory of eCommerce
- 56. A Grand Unified Theory of eCommerce
- 57. The marketing activities and tools to this point add up to the Cost Of Customer Acquisition
- 58. Now the focus shifts to increasing the customer’s Life Time Value
- 59. A Grand Unified Theory of eCommerce
- 60. A Grand Unified Theory of eCommerce
- 61. A Grand Unified Theory of eCommerce
- 62. Everyone goes through this process
- 63. Key Takeaway: Compete in the Research Phase 𝐶 𝐷 ∗ 𝑉 C = # of new customers, D = # of downloads, V = Average LTV Yes. I downloaded their eBook. Yes. They helped me make a decision. Yes. I bought from them.
- 64. And yes. She said yes.
- 65. This new age of marketing is the beginning of something truly remarkable, and your relationship with your customers will
- 66. THANK YOU!
Editor's Notes
- Now raise your hand if you’ve used it while someone was speaking. Don’t feel guilty, it’s not your job to fit to us – it’s our job to fit into how you consume content.
- Outbound is great TV show interrupt it just enough Inbound is that it’s more economically efficient to CREATE the experience that people are looking for instead of paying to INTERRUPT one.
- You make money when you sell things! Why would you have anything on your site that could discourage that? Ever wonder why Amazon has ads for other eCommerce sites on their product pages? They’re not concerned about owning the transaction – their goal is to own the customer.
- Companies are getting disrupted that no one was actively targeting, such as Kodak and traditional films failure with the advent of mobile phones. You can be disrupted as collateral damage even if someone wasn’t actively targeting you. Kodak was a great company with a brand that was an American icon, but their failure to adapt both to digital media over film and the inclusion of cameras in cell phones disrupted a core part of their brand with consumer camera sales. E.G. Garmin+ TomTom
- Not just horses and the car or sailboats and steamboats where disruption is measured in decades, but massive incumbents being knocked on their heels in years or even months.
- Mass extinction slide
- No one is safe. I was at a conference for Diamond retailers and they were certain that eCommerce would never disrupt small retailers because people wanted to make sure the ring would fit and that the stone was the right size.
- Then I asked them to imagine a world where same-day shipping was a reality. Companies like Amazon are already working on this from a logistics perspective, but there are already ways to potentially execute this. It’s not that far-fetched. Think about a company like Uber. Uber is one of the most disruptive companies in the world right now – triggering aggressive backlash from companies who’s biggest innovation was SOMETIMES answering the phone. Uber has created a flexible network to pick up and deliver people on-demand very quickly – with pickup occurring usually within 5-10 minutes of the request. Now imagine if a similar network was able to pick up and deliver PRODUCTS within the same time frame. Imagine a customer being able to request a model of their ring and it being at their doorstep in 30 minutes or less. Now we’ve created the ability for someone to rapidly select and examine a product no matter where they are – potentially disrupting the advantage of real-world retailers.
- Then I told them to take it one step even further: Imagine a world where most households have their OWN 3D printer. A world where a 3D printer is as common as a microwave or dishwasher. 3D printers are coming down in cost and even expanding their repertoire into the ability to print things like food! Now customers could download the specs for a product from your website and see it immediately in their home.
- They had just finished talking about their advanced technology that could render all of the dimensions of a ring and its diamonds. I asked why they couldn’t use a 3D printer to print that and send it to the customer in advance. After my panel, a guy in the back of the room said he was already doing that for high value prospects but had never thought about doing it through his website.
- 3D printers can’t do this right now. They’re fairly slow and they’re still a LOT more expensive than microwaves, but these are not insurmountable technological challenges. The cost is coming down and the printers are becoming faster and more efficient.
- The point is that any time you can say “I’m safe because my customer needs…” you’ve identified a job-to-be-done that you need to focus on being positioned to solve for.
- If you’re selling drill bits (use Vernon Dursley picture), what you have to focus on is the fact that very few people are buying from you because they’re a collector of drill bits. They don’t want a quarter inch drill bit, they want a quarter inch hole.
- Henry Ford quote about faster horses
- The company that engages in deep understanding of their jobs-to-be-done wins. The company that solves for the customer better wins.
- This is how disruptors think. And, if they haven’t already, disruptors are coming for you.
- {{Gimli Picture}} Max Wessel and Clay Christensen wrote HBR article called “Surviving Disruption” where they introduced the concept of the “Extendable Core”. Essentially, the extendable core is a part of your business that a disruptor couldn’t subvert without adopting the same cost structure as you.
- Inbound marketing creates an extendable core that insulates you from disruption while enabling you to disrupt others. It’s VERY hard for someone to quickly replicate your content, authority, and the most importantly {pause} the trust you’ve built with the audience you’ve attracted.
- If you’re not doing something improvable, someone is working on automating that process.
- Why do we call them PTC’s? They’re leads, let’s be honest. But it makes more immediate sense to B2C folks. Different conversions have different values.
- Inbound marketing is inherently customer centric – which creates a massive competitive advantage.
- Flowers story. Sells me something that dies and has to be replaced or I’ll get in trouble.
- Sam
- Sam
- Sam
- Spend several minutes on this slide.
- Spend several minutes on this slide.
- Spend several minutes on this slide.
- Spend several minutes on this slide.
- Danny We have to start considering customers acquired as a unit of economic investment
- Danny We have to start considering customers acquired as a unit of economic investment
- Spend several minutes on this slide.
- Spend several minutes on this slide.
- Spend several minutes on this slide.
- Spend several minutes on this slide.