20140522 sanoma mediaparade
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The document discusses the importance of identifying "brand recommenders", who directly influence 20-50% of purchase decisions. It notes that over 90% of influential recommendations happen offline and are not captured in companies' big data. It advocates benchmarking competitors to identify the recommenders and recommends moving marketing efforts beyond customer satisfaction to focus on measuring recommendation power in order to better understand influential customers.
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20140522 sanoma mediaparade
- 1. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ 6 Takeaways for those who don’t stay the whole session 1. Your brand recommenders are the most important asset in your database. Chances are you haven’t iden8fied them yet. 2. If you iden8fy them and win them all … you win plenty of ba@les. 3. You can iden8fy them while benchmarking your recommenda8on power. Maybe you already benchmark. Good. 4. Move on from RFM to RRFM 5. Go for a non-‐customer centric approach. Stop navel-‐gazing. Your customers are promiscuous 6. Join the “Media Influencers Index” Hype.
- 2. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Recommenders directly influence 20-‐50% of all purchase decisions. “ “
- 3. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Their oral interacBons however are not in your Big Data! Over 90% of the influenBal recommendaBons take place off line. Face2Face …or whatever you might call it.
- 4. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ h$p://www.youtube.com/watch?v=erZ2YidTZp4. Minute 06:45 “If you know the enemy and know yourself, you need not fear the result of a hundred baYles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every baYle” Sun Tzu, The Art of War, Open your windows, benchmark your enemies conBnuously and spot the brand recommenders.
- 5. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ In fairy tales asking the Magic Mirror about “the most beau8ful brand in the world” takes 7 years to get an answer. IRL you have to move faster. Research Brand aka SnowWhite’s mother
- 6. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Look through the window and discover who your toughest compeBtors are and why even your best clients are aYracted to them too.
- 7. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ And then: aYack. But don’t kill. MarkeBng is a war without weapons no?
- 8. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ If you don’t aYack, you will end up being only a winner in your wet dreams. Too bad. The reality The dream
- 9. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ “Customers’ saIsfacIon levels explain less than 1% of the variaIon in changes in their share of category spending. Yes, the relaIonship is staIsIcally significant, but it is not very managerially relevant.” There is not a strong relaIonship between saIsfacIon and marketshare. Being “saIsfied” doesn’t mean that you also recommend acIvely or when asked your opinion. The more “mass market” you’re in the less customers are saIsfied. Don’t ask about saBsfacBon. Ask about recommendaBon. Only when when you measure recommendaBon power, you measure influenBal acBvity. Don’t be sad about clients being less loyal than before. Face the reality and move on.
- 10. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Benchmarking is measuring recommendaBon power. “I am saBsfied … but I don’t need these superthings. Who cares. I don’t want to pay for the extra’s” “I am saBsfied … but others are cheaper.” “I am saBsfied … but it is Bme for a change” “I am saBsfied …. but I prefer buying more in my neighbourhood” “I am saBsfied …. but some brands are beYer and I go for the best” “I am saBsfied … but my friends suggested to check out a compeBtor.” “I am saBsfied …but some others are easier to handle” “I am saBsfied ….but I prefer buying more online” Only when when you measure your WOM-‐strength, you measure useful acBvity of the major players in the market
- 11. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Promiscuous behavior of consumers is a big opportunity for deeper penetraBon i.e. daBng real prospects. “Companies need to invest to re-‐earn penetraBon over and over again. Winners accept that it’s a game of constant recruitment. That’s why they invest on an ongoing basis to acquire more new consumers every year than they lose. (Bain -‐ 2014)
- 12. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Go violently for a penetraBon strategy. You’ll love it. But don’t push. Move when there is an intenBon. When the situaBon is promising.
- 13. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Indeed: relevant (pushed or pulled) ads are sBll an excellent and needed tool in any penetraBon strategy.
- 14. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ And since more and more consumers use online channels during the pre-‐ sales phase don’t overlook them.
- 15. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ But – to be honest – these (ads in) paid media are not the most trusted, nor the ones that push consumers into acBon.
- 16. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Earned media have most influence, are more trusted and generate more ac4on Paid media generate more touch points, hence they are strong in building awareness. Their “Opportunity To Be Seen” is bigger. Paid media cost more than earned and owned media. Brands plan to invest less in paid media in the coming years. And the “paid media” take a big bite of a brand’s markeBng budget. The earned media cost less. You’ll have to find day aker day the best mix.
- 17. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Recency, frequency, monetary value (RFM) of clients were decisive for investment in markeIng communicaIon. Therefore lots of money spent (wasted) in this group of heavy and recent buyers RFM -‐ axis Light and non frequent buyers are oXen “neglected” From RFM to RRFM to decide about what to invest where.
- 18. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Recommenda4on axis +RFM & -‐ REC -‐ RFM & -‐ REC +RFM & + REC -‐ RFM & + REC RFM -‐ axis Does not mean they all give posiBve recommendaBons Frequency and intensity of recommendaBon. The recommendaBon power of clients becomes the decisive tool to decide on marcom-‐investments
- 19. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ How and where do you find these earned media? The human media. The brand recommenders? Stop navel-‐gazing.
- 20. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Start by asking them all (!) how likely it is that they will recommend your brand? Client 1 0 1 2 3 4 5 6 7 8 9 10 Client 2 0 1 2 3 4 5 6 7 8 9 10 Client 3 0 1 2 3 4 5 6 7 8 9 10 Client 4 0 1 2 3 4 5 6 7 8 9 10 Client 5 0 1 2 3 4 5 6 7 8 9 10 Client 6 0 1 2 3 4 5 6 7 8 9 10 Client 7 0 1 2 3 4 5 6 7 8 9 10 Client 8 0 1 2 3 4 5 6 7 8 9 10 Client 9 0 1 2 3 4 5 6 7 8 9 10 Client 10 0 1 2 3 4 5 6 7 8 9 10 Client 11 0 1 2 3 4 5 6 7 8 9 10 Client 12 0 1 2 3 4 5 6 7 8 9 10 Client 13 0 1 2 3 4 5 6 7 8 9 10 Client 14 0 1 2 3 4 5 6 7 8 9 10 Client 15 0 1 2 3 4 5 6 7 8 9 10 Client 16 0 1 2 3 4 5 6 7 8 9 10 Client 17 0 1 2 3 4 5 6 7 8 9 10 Client 18 0 1 2 3 4 5 6 7 8 9 10 Client 19 0 1 2 3 4 5 6 7 8 9 10 Client 20 0 1 2 3 4 5 6 7 8 9 10 Client 21 0 1 2 3 4 5 6 7 8 9 10 Client 22 0 1 2 3 4 5 6 7 8 9 10 Client 23 0 1 2 3 4 5 6 7 8 9 10 Client 24 0 1 2 3 4 5 6 7 8 9 10 Client 25 0 1 2 3 4 5 6 7 8 9 10 Client 26 0 1 2 3 4 5 6 7 8 9 10 Client 27 0 1 2 3 4 5 6 7 8 9 10 Client 28 0 1 2 3 4 5 6 7 8 9 10 Client 29 0 1 2 3 4 5 6 7 8 9 10 2 clients you asked give a 9. You’re happy.
- 21. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ But one of these 2 clients gives your compeBtor a 10. Bad news for you. You’re not his real nr 1. Client 1 0 1 2 3 4 5 6 7 8 9 10 Client 2 0 1 2 3 4 5 6 7 8 9 10 Client 3 0 1 2 3 4 5 6 7 8 9 10 Client 4 0 1 2 3 4 5 6 7 8 9 10 Client 5 0 1 2 3 4 5 6 7 8 9 10 Client 6 0 1 2 3 4 5 6 7 8 9 10 Client 7 0 1 2 3 4 5 6 7 8 9 10 Client 8 0 1 2 3 4 5 6 7 8 9 10 Client 9 0 1 2 3 4 5 6 7 8 9 10 Client 10 0 1 2 3 4 5 6 7 8 9 10 Client 11 0 1 2 3 4 5 6 7 8 9 10 Client 12 0 1 2 3 4 5 6 7 8 9 10 Client 13 0 1 2 3 4 5 6 7 8 9 10 Client 14 0 1 2 3 4 5 6 7 8 9 10 Client 15 0 1 2 3 4 5 6 7 8 9 10 Client 16 0 1 2 3 4 5 6 7 8 9 10 Client 17 0 1 2 3 4 5 6 7 8 9 10 Client 18 0 1 2 3 4 5 6 7 8 9 10 Client 19 0 1 2 3 4 5 6 7 8 9 10 Client 20 0 1 2 3 4 5 6 7 8 9 10 Client 21 0 1 2 3 4 5 6 7 8 9 10 Client 22 0 1 2 3 4 5 6 7 8 9 10 Client 23 0 1 2 3 4 5 6 7 8 9 10 Client 24 0 1 2 3 4 5 6 7 8 9 10 Client 25 0 1 2 3 4 5 6 7 8 9 10 Client 26 0 1 2 3 4 5 6 7 8 9 10 Client 27 0 1 2 3 4 5 6 7 8 9 10 Client 28 0 1 2 3 4 5 6 7 8 9 10 Client 29 0 1 2 3 4 5 6 7 8 9 10
- 22. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Look (less) or (not only) in the mirror and more through the window. There’s the market. There are the voters. The influencers. The buyers. Very bad ranking for “You “ Excellent ranking for “You” More or less ok ranking for “You” 1 Competitor 1.You (+20) 1 Competitor 2 Competitor 2 Competitor 2 Competitor 3 Competitor 3 Competitor 3 Competitor 4 Competitor 4 Competitor 4 Competitor 5 Competitor 5 Competitor 5.You (+20) 6 Competitor 6 Competitor 6 Competitor 7 Competitor 7 Competitor 7 Competitor 8 Competitor 8 Competitor 8 Competitor 9 Competitor 9 Competitor 9 Competitor 10.You (+20) 10 Competitor 10 Competitor
- 23. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ That’s how we do it: “How likely are you to recommend this brand?”
- 24. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ That’s how we do it: “How likely are you to recommend this brand?”
- 25. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ 3 quesBons: your experience, your score, your buying intenBon.
- 26. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Scores 9 -‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 9-‐10 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 Scores 0-‐6 The brands these boys & girls also recommend Brand Profile of boys & girls 18-‐25 yrs old, who all give a very high 9 & 10 recommendaBon score to brand X. The brands they don’t recommend at all. Scores 0-‐6 And when 1000’s of consumers do it every now and then, they build unique profiles for themselves and several segments with their peers.
- 27. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ Extra-‐contacts generated : brands reach consumers through media, but since not all consumers are created equal, some become “human media” and some not. Brands Media “Human media” “Just humans” “Just humans” And they’re influencers. Brands can influence these influencers by running ads in the media these influencers engage with.
- 28. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ The Media Influencer Index.
- 29. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐
- 30. Jan Van den Bergh – Holaba – Sanoma Mediaparade 2014 – jevedebe@holaba.com The Recommender RevoluBon -‐ 7 takeaways for those who arrived too late 1. Your brand recommenders are the most important asset in your database. Chances are you haven’t iden8fied them yet. 2. If you iden8fy them and win them all … you win plenty of ba@les. 3. You can iden8fy them while benchmarking your recommenda8on power. Maybe you already benchmark. Good. 4. Move on from RFM to RRFM 5. Go for a non-‐customer centric approach. Stop navel-‐gazing. Your customers are promiscuous 6. Join the “Media Influencers Index” Hype. 7. Never arrive too late.