Michael Leander's keynote presentation at the Cairo Digital Marketing Seminar

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2. Internet/
Business
Marketing
Inspiration
candy store
Innovation
Candy for thought
(c) Michael Leander Nielsen, 2009 2

3. My keynote contents
A few facts to get us started
Future scenario just around the corner
7 things you should consider to become a successful
digital marketer
1. Customer experience
2. Innovation and differentiation
3. Permission marketing
4. Mobile marketing: SPECIAL GUEST
5. Usability and websites
6. Return on Marketing Investment
7. Understanding your target audience
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4. Quick facts
1.7 billion people have internet access
That is 25,6% of the global population
Emerging markets quickly catching up
Email, searching, shopping, online banking,
socializing, contributing, “being”
Having digital conversations is the key driver
today and in foreseeable future
(c) Michael Leander Nielsen, 2009 4

5. Valeria – 10 years old Anne-Grethe – 62 years old
• Chat with friends • Chat with friends and family
• Meet new figure skating friends • Stay in touch with family/friends
• Comments, playing games, watch TV • Comments
• Upload pictures and videos • Upload pictures
• Create (weird) art-work and share • Search interests
• Search interests • Online banking/investments
• Find things to buy • Does taxes online 5
• Spends 15-20 hours online/week incl. • Spends 10-15 hours online /week
mobile internet usage

6. Quick
stats
Cyprus: 30,9%
Sweden: 89,2%
(c) Michael Leander Nielsen, 2009 6

7. SMG anno 1995 and what I learned
• Largest IT distributor in Scandinavia
• Revenue in excess of 900 mill USD (1996)
Size • Internet penetration around 15%
• Margins under pressure
• Loads of very small IT reseller customers (Fax/phone orders)
Challenge • Risk of manufacturers selling direct
• Invest in internet presence/e-commerce
Solution • Add value: convenience, self-serviced pricing, support
• USD 35 mill revenue within first 12 months
• Improved margins, freed time to VIP customers, increased loyalty in all segments
Result • Outperformed competition in all vital areas
(c) Michael Leander Nielsen, 2009 7

8. Imagine different internet growth and user
adaption scenarios and plan accordingly
• 10% growth adds 1,2 mill. new
internet users in Egypt each
year
• Increase in penetration will
nurture increased usage (time
spent online pr. week)
• Government initiatives may
stimulate a more rapid growth
• Remember the
Ketchup effect – be
ready
(c) Michael Leander Nielsen, 2009 8

9. A guide to approach your internet
marketing presence – some key questions
• What are you trying to accomplish?
Objective • Long term and short term
• Your target audience?
Research • What do you need to take into consideration?
• Which sort of digital presence?
Presence • Why?
• How are you going to drive traffic to your online
Traffic presence?
• How are you going to get business online?
Convert/serve • How can you serve your customers online?
• When you are successful – how can you expand
Expand your presence and why?
(c) Michael Leander Nielsen, 2009 9

10. Your
challenge
(c) Michael Leander Nielsen, 2009 10

11. Consumers are exposed to 3.000 to
6.000 marketing messages every day
mobile marketing user generated content email
marketing Enterprise 2.0 customer experience
RSS feeds marketing web 2.0 permission
marketing communities conversations TV
COMMUNICATION OVERLOAD The Moment of
truth push/pull web 3.0 Word of Mouth
RELEVANCE FREQUENCY RECENCY
SOCIAL NETWORKING
(c) Michael Leander Nielsen, 2008 11

12. Michael Leander Nielsen
10 years on the business side
- CEO, midsize companies, IT software
- VP sales/marketing, 2 * public companies
- VP sales/marketing, 1* midsize
10 years on the agency/consulting side
- Advertising agency, consultant
- CEO, marketing consulting + ESP
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13. 7 things you must consider
to become a successful
(digital) marketer – a high
level introduction
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14. Your job just got harder
The simplified digital ecosystem
(c) Michael Leander Nielsen, 2009 14

15. The customer experience matters much
more than you think
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18. Food for thought about the customer
experience
• A survey, In Customers Are People, shows, that 70% of the customers
buying decision are based on how they feel they are being treated
• Another survey shows, that 69% of the customers say, that emotions count
for more than half of the total buying experience
• A good customer experience is told to 8 people
• A bad customer experience is told to 22 people
• It takes 10 good experiences to make up for one bad
• Your web presence is very much part of
1 the customer experience
(c) Michael Leander Nielsen, 2009
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19. Survey: Does Companies Provide an
Excellent Customer experience?

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21. We are motivated to share by experience
Not motivating Very motivating
(c) Michael Leander Nielsen, 2008 21

22. Even sharing customer experiences via
video
(c) Michael Leander Nielsen, 2009 22

23. Create a customer vision/strategy
Knowledge of Customers
How do we collect knowledge of our customers
Customer Experience In which touch points?
How do we ensure that customers get the How do we use this knowledge?
same experience across all touch points? How can we enrich and increase our own knowledge
On which level must the experience be Knowledge
consistent across all channels?
Customer Value
Which customers have which value?
How do we measure it?
Customer Customer Which customers will we attract,
Experience Value
retain or develop?
Which service will we provide the
Integration
defined segments?
How do we share knowledge of our
customers?
How do we plan and implement
Customer
customer activities across the
company?
How close do we want to
integrate ourselves with Customer
Integration
Expectation
customers and partners?
Balanced effort Balanced
effort
Customer Expectations
How do we balance our efforts in relation to the When are the customer in touch with us and why?
customers value? Which expectations do they have and how do we
What effect does that have in our activities? How far live up to them?
will we go? How do we communicate with the customers?
How do we focus on loyalty, retention, additional and What impact does customer satisfaction have on
cross sales? revenue and profit?

24. Engaging customers and prospects
through innovation and differentiation
(c) Michael Leander Nielsen, 2009 24

25. Bil vask, baby
(c) Michael Leander Nielsen, 2008 25

26. Take away
• Out of the box thinking can get you ahead of competition
and closer to the hearts of your customers
• Spend time contemplating, brainstorming – look at other
successful (online) players to seek inspiration
• And remember: If you can dream it, you can do it
(c) Michael Leander Nielsen, 2009 27

27. The concept of permission marketing
(c) Michael Leander Nielsen, 2009 28

28. What is permission marketing?
• Traditionally referred to for electronic marketing through
email, SMS etc.
• Getting an active and volunteered consent to receive
communication via the specified channel from you
• Marketers must accept the consumer´ prerogative to opt-
out of communication anytime
• When a consumer opts-out, no communication can take
place in that particular channel until a new opt-in is
acquired
(c) Michael Leander Nielsen, 2009 29

29. Permission marketing in a multi-channel
world
Permission to any channel
of communication
• Email
• Direct mail
• SMS/MMS
• Telemarketing
• Etc.
(c) Michael Leander Nielsen, 2009 30

30. Let the consumer decide – if you want
I don’t want your
emails – I only want
your printed
catalogue
(c) Michael Leander Nielsen, 2009 31

31. Mobile marketing
Special guest: Con O´Donnell, Sarmady
Inc.
Sarmady
(c) Michael Leander Nielsen, 2009 32

32. Websites and Usability out of the box
(c) Michael Leander Nielsen, 2009 33

33. ‫اإلنسان بالتفكير وهللا بالتدبير‬
Your nose is a part of you even if it
was cut (or ugly).
(c) Michael Leander Nielsen, 2009 34

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35. (c) Michael Leander Nielsen, 2009 36

36. Daring to go new ways

37. Really new ways: Will this influence?
http://www.greatpockets.com/index.php

38. The sales funnel when building web sites
Can a different approach
turn more visitors into
customers?

39. Benefits of ”reinventing and innovating” –
take aways
• THINK: Sales funnel first
• Increase traffic to web properties
• Increase Word of Mouth
• Increase key web metrics
• A different perception of your company / brand
• A different perception of your image / identity
• Acknowledgement amongst your peers
(c) Michael Leander Nielsen, 2009 40

40. ROMI – Return on Marketing Investment
(c) Michael Leander Nielsen, 2009 41

41. What do you want to achieve?
Have 100.000 ppl. Attract 20.000
watch my video newsletter
subscribers
Customer fan
club
Sell for € 1 mill
by Friday
Get 50000 people
to talk about
my product
(c) Michael Leander Nielsen, 2009 42

42. Meeting Return on Marketing Investment goals
makes it more fun to be a marketer
Understand Customer Lifetime Value
Set clear, measurable tangible goals for monetary actions
• Cost per sale
• Cost per repeat sale
• Referral value of customers
Set clear, measurable goals for non monetary actions
• Acquiring a permission
• Increasing the quality of your database
• Switching recipients from direct mail to email permission
(c) Michael Leander Nielsen, 2009 43

43. Take aways
As a multi-channel direct marketer you must have the ability to
differentiate your approach depending on
• Status of permission and channels
• Value of customer
• Potential value of prospect (f.ex. unaddressed
communication)
• Gross profit (or revenue) you can achieve
• Timing, relevancy and ease and speed of buying
(c) Michael Leander Nielsen, 2009 44

44. Understand how to utilize social networks
and social media
(c) Michael Leander Nielsen, 2009 45

45. Social networking
and social media
is here to stay
How are you going
to tap into these
new channels?
(c) Michael Leander Nielsen, 2009 46

46. Most people can recall at least 2 social
networks …
(c) Michael Leander Nielsen, 2009 47

47. New applications add
social networking capabilities
by default, examples;
- Event-sites
- Photo sharing sites
- Blogs
- Professional online media
- TV stations etc.
(c) Michael Leander Nielsen, 2009 48

48. Facebook numbers
• Egypt: 2.170.000 profiles – that’s nearly 20% of the
internet population in Egypt
How to engage – if you want to engage?
(c) Michael Leander Nielsen, 2009 49

49. Engage through a profile (not)
(c) Michael Leander Nielsen, 2009 50

50. 70.500
fans
Promotions
(c) Michael Leander Nielsen, 2009 51

51. And what about Twitter?
(c) Michael Leander Nielsen, 2009 52

52. Launching a product utilizing the
community
BeoSound 3
Can you keep a
secret ?
400 ambassadors
chat with PM
Results amazing
PR 4 in 5 days
1 mill. + hits on page
in ”no time”

53. Aligning experience to product benefits
(c) Michael Leander Nielsen, 2008 54

54. Understanding your audience and
anticipating their needs
(c) Michael Leander Nielsen, 2009 55

55. The ultimate customer experience –
think automation
Ask:
How can I deliver a great
customer experience
wherever I interact with
customers?
How can I utilize all customer
touch points for maximum benefit
to me and my customers?
How do I align that with my
ROMI and other objectives?

56. Summary
First: Understand and know you target audience
1. Think: How can I deliver a good-to-great customer
experience in digital/online channels?
2. Think: How can I stand out? What can I do to make
me unique and attractive?
3. Think: How do I implement a relevant permission
marketing program in various channels?
4. Think: How can I become part of the conversation
taking place online?
5. Think: How do I tie new channels in with my existing
marketing mix?
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57. If none of this works:
Consider more
drastic means
(c) Michael Leander Nielsen, 2009 58