SlideShare a Scribd company logo
1 of 19
WORKING DRAFT
Last Modified 8/12/2013 11:48 AM Eastern Standard Time
Printed
Social: An essential component
of pervasive B2B marketing
ITSMA Marketing Leadership Forum
May 29, 2013
Any use of this material without specific permission of McKinsey & Company is strictly prohibited
McKinsey & Company |
Four forces at work changing the nature of marketing
The primacy of customer
experience and engagement
Digital darwinism
Continued proliferation
of touchpoints
Explosion of data
1
McKinsey & Company | 2
Virgin Airways CEO
Steve Ridgway
After all, we fly exactly the same planes as
everybody else. We fly them under the same
very strict safety rules. Yet if you go on one of
our planes and experience the service, you’ll
see it’s very different from many others.
If we get our customers off the plane happy, and
they go on to talk about that and get others to
come and then come back again themselves—
that’s a huge marketing tool for us.
The rise of customer experience and engagement
SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
McKinsey & Company |
American Express CMO
John Hayes
I haven’t met anybody—and I talk to a lot of
my colleagues in the marketing world—who
feels they have the organization completely
aligned with where this revolution’s going,
because it’s happening so fast and so
dramatically. Marketing is touching so many
more parts of the company now. It touches on
service; it touches on product development.
We need to organize in a way that starts to
break down the traditional silos in the business
The proliferation of touchpoints
3
SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
McKinsey & Company |
Chief Research Scientist, Yahoo
Duncan Watts
New datastreams, analytics and decision-making
Marketing has long been data driven, with a lot of
survey research and polling. But the volume and
variety of data that we are beginning to acquire is
vastly increasing, requiring better computing
facilities…and a whole new science.
The marketing world is about to experience a shock.
We tell ourselves plausible stories about how
consumers are going to behave but when you actually
get the data, they don’t do that.
Once you accept that your intuition about how people
behave is inherently flawed, then you really need a
different model for learning about the world. Everything
becomes data driven in a real-time, reactive way.
4
SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
McKinsey & Company |
Digital Darwinism
61% of consumers use digital channels
43
39
17
1
Buy online and learn
about brands/ products
mostly online
Purchase via FtF and mail but use digital
channels to learn about and evaluate brands
Use all channels to be
aware of products and
buy online
60
41
43
55
74
84
Average
Microblogging
Wikis
Blogs
Video
Social networks
36
23
25
38
41
51
Users
Dec 20101
Companies,
Nov 20112
Percent
And they bring their habits to work
Consumer vs. company Web 2.0 usage
penetration, Europe
5
McKinsey & Company |
Digital darwinism: Digital and social drive impact across
the B2B Customer Decision Journey
SOURCE: McKinsey, Customer Survey 2012, interviews, press reports and web research
Online has become the 2nd
most important source of
information for B2B customers
Digital / social enables more
efficient and effective
aftersales services, e.g.,
at Intuit 80% of all customer
questions are answered in
the online community
Low channel costs
revolutionize GTM
approaches, through effective
backbone tools that enable
sales organizations to interact
digitally
New digital sales
tools offering new
opportunities (e.g.,
innovative sourcing
solutions such as
online auctions)
35% of B2B pre-purchase
activities are digital / social
Trigger
6
McKinsey & Company |
Digital darwinism: Over a third of B2B customers prefer
digital over traditional channels for purchases
Usage preferences of purchasers along the decision process, Percent
First purchase (Buy)
1 Split excluding all customers who did not use after-sales and/or did no re-purchase
70
30
60
40
SOURCE: Customer survey 2012: 968 respondents across various industries from the US, UK and Germany
Pre-purchase (Identify,
research, consider & evaluate)
65
35
Post-purchase1
(Use & service)
37
63
Re-purchase1 (Buy)
Traditional
Digital
Trigger
7
McKinsey & Company | 8
Marketing must be pervasive
▪ We’re living in an era of engagement
▪ Marketing is no longer separable from the
product, the experience at every touchpoint,
all employees and the company overall
▪ Touchpoints critical to engagement exist in
multiple functions and units, but marketing
often lacks permission to access them
▪ Many datastreams critical to insight
lie outside marketing
…we’re ALL marketers now
McKinsey & Company |
Mastering value chain complexity – influencers, procurement, payments
variations, distribution & channel partners, industry verticals, end users
…And fit into the B2B “value chain”…
Strong linkage to sales/the field – B2B marketers impact has to ―come to
life‖ through sales. ―Partnership‖, not ―handoffs‖. ―Translation of customer
insights into usable tools & tactics‖, not theoretical ideas
Maximizing marketing investment – often spreading small marketing
spend across hundreds of products and no ―mega-brands‖
Process is king to fit into ―engineering‖ DNA of many B2B companies
Economic value propositions critical – must understand how customers
make money and how offerings improve that
9
McKinsey & Company |
…With heightened agility to shape the Customer Decision Journey
Align investment Gather and activate
data and content
Expand the
surface area Distinguish via
personal value
Trigger
10
McKinsey & Company |
Social media embodies pervasive marketing …
SOURCE: McKinsey Digital Marketing Practice; expert interviews
Research
(RFP) Buy
Use and
Service
Loyalty
repurchase
Identify
CustomerCDJstage
Marketer action
Monitor Interrupt LeadAmplify
Consider
and Evaluate
Brand
monitoring
1
Customer
service
3
Brand/content
awareness
Product
launches
7
8
Crisis &
opportunity mgmt
2
Referrals and
recommendations
Brand advocacy
5
4
Foster
communities
6
11
Targeted deals
and offers
9
Solicit customer
input
10
McKinsey & Company |
Digital and Social can be leveraged at each step
of the B2B Customer Decision Journey
SOURCE: McKinsey
Trigger
Track customer dialogues through a social media
listening center
Build a comprehensive knowledge database by
leveraging online communities
Refine client
segmentation
by leveraging
Big Data
Engage clients through interactive
video marketing
Approach, inform and engage clients
through targeted webinars
Ensure sales force effectiveness by
equipping your sales force with
tablets and digital catalogues
Tailor your offering to the needs
of each client, while providing
access to a vast product portfolio
Strengthen your distribution network through a partner
certification program with tailored online support
features
Capture low-end of market through no-frills, web-
based sales channel
Improve market forecast quality through online
interactive prediction sessions with clients
Have clients service other clients via a customer
service community forum
Gather client input for new product development
through an online feedback channel
Collaborate with users by releasing software to the
open source community
12
McKinsey & Company |
From … … to
Communications
Operations
Design
Build
Operate
Renew
Touchpoint ownership split among
functions
Allocation of roles and decision rights
for customer engagement
But there are challenges: marketing is everywhere
13
McKinsey & Company |
Expectations are high for social media, but many are dissatisfied with
current performance and measurement
1 Share of respondents with answers 4 (agree) and 5 (strongly agree) on a scale from 1 - 5
SOURCE: McKinsey Social Media Survey among ~ 200 companies
Share of companies1 …
Percent, n = 194
Companies are yet to fully achieve
their expectations with social media …
… that are realizing
significant P&L effects
… that see significant
future upside potential
21
… that are satisfied
with their performance
71
9
… because they struggle with
measurement of impact and ROI
… that measure the ROI
of their social media
activities
… that have KPIs for their
social media activities
… that cannot measure
the effect of social media
60
37
20
14
McKinsey & Company |
Social media can generate significant impact at
lower cost than TV… but is it maxing out?
TV
Response curves for incremental sales
Investment
Incremental sales
Tons
Facebook fan page (owned viral social media)
Online display
Facebook advertising (paid social media)
EXAMPLE
SOURCE: McKinsey analysis 15
McKinsey & Company | 16
Five Years From Now, CMOs Will Spend More on IT Than CIOs Do
SOURCE: Gartner research
▪ 2011 B2B and B2C marketing budgets as a percentage of
revenue were almost 3x (10%) IT budgets (3.6%)
According to Gartner’s research:
▪ On average, nearly 30% of named marketing-related
technology and services is bought by marketing already.
What’s more, marketing now influences almost half of all
purchases
▪ 2012 IT budgets are expected to grow 4.7%, while all
marketing budgets, in general, are predicted to grow 9%,
and high tech marketing budgets, more specifically, are
expected to increase 11%
McKinsey & Company |
Social requires to build a set of capabilities to stay ahead
Topics Description
6 Security ▪ Technical and procedural capabilities to respond to the
increasing security leaks
1 Social
talent
▪ Talent to master the digital journey (e.g. analytical skills,
digital marketing…) and adequate setting to make it excel
New
mindset
3
▪ New mindsets and behaviors needed to compete with
new players and different ways to manage current and
new digital channels
5 Metrics
▪ Set of metrics to enable target setting and monitor:
– The social / digital journey
– Digital performance
4 Innovation at
the DNA
▪ Integrated approach to achieve that innovation is at the
DNA of the company
2 Open
business
▪ All types of partnerships (e.g. M&A, joint-ventures,…) to
acquire the flexibility and capabilities to gain
competitive advantage in the ―digital ecosystem‖
17
McKinsey & Company | 18
www.cmsoforum.mckinsey.comWWW
@McK_CMSOForum
www.youtube.com/McKinseyCMSOforum
www.slideshare.net/McK_CMSOForum
Staying connected

More Related Content

What's hot

Top 10 ways_to_improve
Top 10 ways_to_improveTop 10 ways_to_improve
Top 10 ways_to_improve
C.Y Wong
 

What's hot (20)

Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"Five keys to marketing's "new golden age"
Five keys to marketing's "new golden age"
 
Consumer Decision Journeys
Consumer Decision JourneysConsumer Decision Journeys
Consumer Decision Journeys
 
Digital disruption in CIB
Digital disruption in CIBDigital disruption in CIB
Digital disruption in CIB
 
When Digital Disruption Strikes: How Can Incumbents Respond?
When Digital Disruption Strikes: How Can Incumbents Respond?When Digital Disruption Strikes: How Can Incumbents Respond?
When Digital Disruption Strikes: How Can Incumbents Respond?
 
Role of digital in media mix understanding digital marketing and getting it...
Role of digital in media mix   understanding digital marketing and getting it...Role of digital in media mix   understanding digital marketing and getting it...
Role of digital in media mix understanding digital marketing and getting it...
 
Power to the People: Customer Care and Social Media
Power to the People: Customer Care and Social MediaPower to the People: Customer Care and Social Media
Power to the People: Customer Care and Social Media
 
[REPORT PREVIEW] The Customer Experience of AI
[REPORT PREVIEW] The Customer Experience of AI[REPORT PREVIEW] The Customer Experience of AI
[REPORT PREVIEW] The Customer Experience of AI
 
The Disconnected Customer
The Disconnected CustomerThe Disconnected Customer
The Disconnected Customer
 
2015-16 Global Chief Procurement Officer Survey - CPO
2015-16 Global Chief Procurement Officer Survey - CPO2015-16 Global Chief Procurement Officer Survey - CPO
2015-16 Global Chief Procurement Officer Survey - CPO
 
30 trends that will shape European web & digital media business in 2012
30 trends that will shape European web & digital media business in 201230 trends that will shape European web & digital media business in 2012
30 trends that will shape European web & digital media business in 2012
 
Enhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC DigitalEnhance CX (Customer Experience) / LSC Digital
Enhance CX (Customer Experience) / LSC Digital
 
Mobile marketing trends 2013
Mobile marketing trends 2013Mobile marketing trends 2013
Mobile marketing trends 2013
 
It's All About the Customer Journey
It's All About the Customer JourneyIt's All About the Customer Journey
It's All About the Customer Journey
 
A Framework for Digital Business Transformation
A Framework for Digital Business TransformationA Framework for Digital Business Transformation
A Framework for Digital Business Transformation
 
Exactly Who Are Your Customers?
Exactly Who Are Your Customers?Exactly Who Are Your Customers?
Exactly Who Are Your Customers?
 
Authoring a Brand's Online Reputation
Authoring a Brand's Online ReputationAuthoring a Brand's Online Reputation
Authoring a Brand's Online Reputation
 
Top 10 ways_to_improve
Top 10 ways_to_improveTop 10 ways_to_improve
Top 10 ways_to_improve
 
Consumer Insights: Finding and Guarding the Treasure Trove
Consumer Insights: Finding and Guarding the Treasure TroveConsumer Insights: Finding and Guarding the Treasure Trove
Consumer Insights: Finding and Guarding the Treasure Trove
 
Marketplace Innovators
Marketplace InnovatorsMarketplace Innovators
Marketplace Innovators
 
Customer data driven marketing for digital services
Customer data driven marketing for digital servicesCustomer data driven marketing for digital services
Customer data driven marketing for digital services
 

Viewers also liked

Viewers also liked (18)

Driving growth in B2B through digital
Driving growth in B2B through digitalDriving growth in B2B through digital
Driving growth in B2B through digital
 
Big Data and Advanced Analytics
Big Data and Advanced AnalyticsBig Data and Advanced Analytics
Big Data and Advanced Analytics
 
Transforming Customer Experience: From Moments to Journeys
Transforming Customer Experience: From Moments to JourneysTransforming Customer Experience: From Moments to Journeys
Transforming Customer Experience: From Moments to Journeys
 
Liquid & Linked marketing
Liquid & Linked marketingLiquid & Linked marketing
Liquid & Linked marketing
 
Digital revolution: Six trends for the media industry
Digital revolution: Six trends for the media industryDigital revolution: Six trends for the media industry
Digital revolution: Six trends for the media industry
 
Building your own growth compass
Building your own growth compassBuilding your own growth compass
Building your own growth compass
 
Are stores out of fashion?
Are stores out of fashion?Are stores out of fashion?
Are stores out of fashion?
 
Making loyalty pay: How to build - not destroy - value
Making loyalty pay: How to build - not destroy - valueMaking loyalty pay: How to build - not destroy - value
Making loyalty pay: How to build - not destroy - value
 
Amazon's secret sauce
Amazon's secret sauceAmazon's secret sauce
Amazon's secret sauce
 
Megatrends for sales organizations
Megatrends for sales organizationsMegatrends for sales organizations
Megatrends for sales organizations
 
How b2b brands talk past their customers
How b2b brands talk past their customersHow b2b brands talk past their customers
How b2b brands talk past their customers
 
Five keys to unlocking growth in marketing’s “golden age”
Five keys to unlocking growth in marketing’s “golden age”Five keys to unlocking growth in marketing’s “golden age”
Five keys to unlocking growth in marketing’s “golden age”
 
“Haves” and “have-mores”: the accelerating digitization of the US economy
“Haves” and “have-mores”: the accelerating digitization of the US economy“Haves” and “have-mores”: the accelerating digitization of the US economy
“Haves” and “have-mores”: the accelerating digitization of the US economy
 
The Journey to Revenue Growth
The Journey to Revenue GrowthThe Journey to Revenue Growth
The Journey to Revenue Growth
 
McKinsey presentation
McKinsey presentationMcKinsey presentation
McKinsey presentation
 
Customer Journey Analytics and Big Data
Customer Journey Analytics and Big DataCustomer Journey Analytics and Big Data
Customer Journey Analytics and Big Data
 
The new mobile playbook: Turning big data into big dollars - Adobe Digital Su...
The new mobile playbook: Turning big data into big dollars - Adobe Digital Su...The new mobile playbook: Turning big data into big dollars - Adobe Digital Su...
The new mobile playbook: Turning big data into big dollars - Adobe Digital Su...
 
Relatiebeheer is meer dan een crm systeem
Relatiebeheer is meer dan een crm systeemRelatiebeheer is meer dan een crm systeem
Relatiebeheer is meer dan een crm systeem
 

Similar to Social: An essential component of pervasive B2B marketing

8 B2B Marketing Trends for 2013 from hawkeye
8 B2B Marketing Trends for 2013 from hawkeye8 B2B Marketing Trends for 2013 from hawkeye
8 B2B Marketing Trends for 2013 from hawkeye
John Tedstrom
 
CMOandRiseofSocialInsights_Updated
CMOandRiseofSocialInsights_UpdatedCMOandRiseofSocialInsights_Updated
CMOandRiseofSocialInsights_Updated
Jordan Alston
 
Customer Experience and Predictive Analytics
Customer Experience and Predictive AnalyticsCustomer Experience and Predictive Analytics
Customer Experience and Predictive Analytics
Rick VARGAS
 
Mobile Marketing Solution Study
Mobile Marketing Solution StudyMobile Marketing Solution Study
Mobile Marketing Solution Study
Demand Metric
 

Similar to Social: An essential component of pervasive B2B marketing (20)

8 B2B Marketing Trends for 2013 from hawkeye
8 B2B Marketing Trends for 2013 from hawkeye8 B2B Marketing Trends for 2013 from hawkeye
8 B2B Marketing Trends for 2013 from hawkeye
 
Conversant seven myths that senior marketers need to stop believing
Conversant   seven myths that senior marketers need to stop believingConversant   seven myths that senior marketers need to stop believing
Conversant seven myths that senior marketers need to stop believing
 
Latest Frost & Sullivan’s Toolkit -Customer Strategy (Sample)
Latest Frost & Sullivan’s Toolkit -Customer Strategy (Sample)Latest Frost & Sullivan’s Toolkit -Customer Strategy (Sample)
Latest Frost & Sullivan’s Toolkit -Customer Strategy (Sample)
 
CMOandRiseofSocialInsights_Updated
CMOandRiseofSocialInsights_UpdatedCMOandRiseofSocialInsights_Updated
CMOandRiseofSocialInsights_Updated
 
Platforum Logicav3.0
Platforum Logicav3.0Platforum Logicav3.0
Platforum Logicav3.0
 
Digital marketing for cloud computing services
Digital marketing for cloud computing servicesDigital marketing for cloud computing services
Digital marketing for cloud computing services
 
Digital marketing for cloud services_Master's thesis results
Digital marketing for cloud services_Master's thesis resultsDigital marketing for cloud services_Master's thesis results
Digital marketing for cloud services_Master's thesis results
 
Deloitte digital | Global Marketing Trends 2022
Deloitte digital | Global Marketing Trends 2022Deloitte digital | Global Marketing Trends 2022
Deloitte digital | Global Marketing Trends 2022
 
A detail analysis on the roles of Digital marketing over Conventional marketing
A detail analysis on the roles of Digital marketing over Conventional marketingA detail analysis on the roles of Digital marketing over Conventional marketing
A detail analysis on the roles of Digital marketing over Conventional marketing
 
How digital is impacting market strategy
How digital is impacting market strategyHow digital is impacting market strategy
How digital is impacting market strategy
 
Customer Experience and Predictive Analytics
Customer Experience and Predictive AnalyticsCustomer Experience and Predictive Analytics
Customer Experience and Predictive Analytics
 
Latest Ecommerce Trends to Watch Out For 2023.pdf
Latest Ecommerce Trends to Watch Out For 2023.pdfLatest Ecommerce Trends to Watch Out For 2023.pdf
Latest Ecommerce Trends to Watch Out For 2023.pdf
 
From Social Media to Social Business - Marketing in the 'Social Age'
From Social Media to Social Business - Marketing in the 'Social Age'From Social Media to Social Business - Marketing in the 'Social Age'
From Social Media to Social Business - Marketing in the 'Social Age'
 
Digital marketing planning #DMELeeds
Digital marketing planning #DMELeedsDigital marketing planning #DMELeeds
Digital marketing planning #DMELeeds
 
Impulsar el negocio de los medios de comunicación gracias al Big Data con IBM...
Impulsar el negocio de los medios de comunicación gracias al Big Data con IBM...Impulsar el negocio de los medios de comunicación gracias al Big Data con IBM...
Impulsar el negocio de los medios de comunicación gracias al Big Data con IBM...
 
Mobile Marketing Solution Study
Mobile Marketing Solution StudyMobile Marketing Solution Study
Mobile Marketing Solution Study
 
CCW332-DIGITAL MARKETING QUESTION BANK WITH ANSWERS
CCW332-DIGITAL MARKETING QUESTION BANK WITH ANSWERSCCW332-DIGITAL MARKETING QUESTION BANK WITH ANSWERS
CCW332-DIGITAL MARKETING QUESTION BANK WITH ANSWERS
 
#Winning with Sitecore
#Winning with Sitecore#Winning with Sitecore
#Winning with Sitecore
 
The Marriage of Traditional and Digital Marketing
The Marriage of Traditional and Digital MarketingThe Marriage of Traditional and Digital Marketing
The Marriage of Traditional and Digital Marketing
 
Retail Media Network(RMN)-Thought Leadership-2023.pptx
Retail Media Network(RMN)-Thought Leadership-2023.pptxRetail Media Network(RMN)-Thought Leadership-2023.pptx
Retail Media Network(RMN)-Thought Leadership-2023.pptx
 

More from McKinsey on Marketing & Sales

More from McKinsey on Marketing & Sales (20)

McKinsey European consumer sentiment survey: How current events are shaping S...
McKinsey European consumer sentiment survey: How current events are shaping S...McKinsey European consumer sentiment survey: How current events are shaping S...
McKinsey European consumer sentiment survey: How current events are shaping S...
 
McKinsey European consumer sentiment survey: How current events are shaping U...
McKinsey European consumer sentiment survey: How current events are shaping U...McKinsey European consumer sentiment survey: How current events are shaping U...
McKinsey European consumer sentiment survey: How current events are shaping U...
 
McKinsey European consumer sentiment survey: How current events are shaping I...
McKinsey European consumer sentiment survey: How current events are shaping I...McKinsey European consumer sentiment survey: How current events are shaping I...
McKinsey European consumer sentiment survey: How current events are shaping I...
 
McKinsey European consumer sentiment survey: How current events are shaping G...
McKinsey European consumer sentiment survey: How current events are shaping G...McKinsey European consumer sentiment survey: How current events are shaping G...
McKinsey European consumer sentiment survey: How current events are shaping G...
 
McKinsey European consumer sentiment survey: How current events are shaping F...
McKinsey European consumer sentiment survey: How current events are shaping F...McKinsey European consumer sentiment survey: How current events are shaping F...
McKinsey European consumer sentiment survey: How current events are shaping F...
 
McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis
McKinsey Survey: Japanese consumer sentiment during the coronavirus crisisMcKinsey Survey: Japanese consumer sentiment during the coronavirus crisis
McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis
 
McKinsey Survey: Australian consumer sentiment during the coronavirus crisis
McKinsey Survey: Australian consumer sentiment during the coronavirus crisisMcKinsey Survey: Australian consumer sentiment during the coronavirus crisis
McKinsey Survey: Australian consumer sentiment during the coronavirus crisis
 
McKinsey Survey: Indian consumer sentiment during the coronavirus crisis
McKinsey Survey: Indian consumer sentiment during the coronavirus crisisMcKinsey Survey: Indian consumer sentiment during the coronavirus crisis
McKinsey Survey: Indian consumer sentiment during the coronavirus crisis
 
McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis
McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisisMcKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis
McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis
 
McKinsey Survey: Korean consumer sentiment during the coronavirus crisis
McKinsey Survey: Korean consumer sentiment during the coronavirus crisisMcKinsey Survey: Korean consumer sentiment during the coronavirus crisis
McKinsey Survey: Korean consumer sentiment during the coronavirus crisis
 
McKinsey European consumer sentiment survey: How current events are shaping F...
McKinsey European consumer sentiment survey: How current events are shaping F...McKinsey European consumer sentiment survey: How current events are shaping F...
McKinsey European consumer sentiment survey: How current events are shaping F...
 
McKinsey European consumer sentiment survey: How current events are shaping U...
McKinsey European consumer sentiment survey: How current events are shaping U...McKinsey European consumer sentiment survey: How current events are shaping U...
McKinsey European consumer sentiment survey: How current events are shaping U...
 
McKinsey European consumer sentiment survey: How current events are shaping G...
McKinsey European consumer sentiment survey: How current events are shaping G...McKinsey European consumer sentiment survey: How current events are shaping G...
McKinsey European consumer sentiment survey: How current events are shaping G...
 
McKinsey European consumer sentiment survey: How current events in Europe are...
McKinsey European consumer sentiment survey: How current events in Europe are...McKinsey European consumer sentiment survey: How current events in Europe are...
McKinsey European consumer sentiment survey: How current events in Europe are...
 
McKinsey European consumer sentiment survey: How current events are shaping S...
McKinsey European consumer sentiment survey: How current events are shaping S...McKinsey European consumer sentiment survey: How current events are shaping S...
McKinsey European consumer sentiment survey: How current events are shaping S...
 
McKinsey European consumer sentiment survey: How current events are shaping I...
McKinsey European consumer sentiment survey: How current events are shaping I...McKinsey European consumer sentiment survey: How current events are shaping I...
McKinsey European consumer sentiment survey: How current events are shaping I...
 
McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...
 
McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...
 
McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...
 
McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...McKinsey survey: European consumer sentiment survey: How current events are s...
McKinsey survey: European consumer sentiment survey: How current events are s...
 

Recently uploaded

NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
Khaled Al Awadi
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
nafizanafzal
 
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di SurabayaObat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di DepokObat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
CaitlinCummins3
 
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di BandungObat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Pusat Herbal
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
vineshkumarsajnani12
 
Mental Health Issues of Graduate Students
Mental Health Issues of Graduate StudentsMental Health Issues of Graduate Students
Mental Health Issues of Graduate Students
vineshkumarsajnani12
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 

Recently uploaded (20)

WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
 
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...NewBase   17 May  2024  Energy News issue - 1725 by Khaled Al Awadi_compresse...
NewBase 17 May 2024 Energy News issue - 1725 by Khaled Al Awadi_compresse...
 
Unlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA FirmsUnlocking Growth The Power of Outsourcing for CPA Firms
Unlocking Growth The Power of Outsourcing for CPA Firms
 
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![©  ر
00971508021841 حبوب الإجهاض في دبي | أبوظبي | الشارقة | السطوة |❇ ❈ ((![© ر
 
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deckPitch Deck Teardown: Goodcarbon's $5.5m Seed deck
Pitch Deck Teardown: Goodcarbon's $5.5m Seed deck
 
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di SurabayaObat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
Obat Aborsi Surabaya 0851\7696\3835 Jual Obat Cytotec Di Surabaya
 
WheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond InsightsWheelTug Short Pitch Deck 2024 | Byond Insights
WheelTug Short Pitch Deck 2024 | Byond Insights
 
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di DepokObat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
Obat Aborsi Depok 0851\7696\3835 Jual Obat Cytotec Di Depok
 
Powerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metricsPowerpoint showing results from tik tok metrics
Powerpoint showing results from tik tok metrics
 
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di BandungObat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
Obat Aborsi Bandung 0851\7696\3835 Jual Obat Cytotec Di Bandung
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg PfizerJual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
Jual Obat Aborsi Di Sibolga wa 0851/7541/5434 Cytotec Misoprostol 200mcg Pfizer
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
 
A DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptxA DAY IN THE LIFE OF A SALESPERSON .pptx
A DAY IN THE LIFE OF A SALESPERSON .pptx
 
10 Easiest Ways To Buy Verified TransferWise Accounts
10 Easiest Ways To Buy Verified TransferWise Accounts10 Easiest Ways To Buy Verified TransferWise Accounts
10 Easiest Ways To Buy Verified TransferWise Accounts
 
Navigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA FirmsNavigating Tax Season with Confidence Streamlines CPA Firms
Navigating Tax Season with Confidence Streamlines CPA Firms
 
Mental Health Issues of Graduate Students
Mental Health Issues of Graduate StudentsMental Health Issues of Graduate Students
Mental Health Issues of Graduate Students
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
 

Social: An essential component of pervasive B2B marketing

  • 1. WORKING DRAFT Last Modified 8/12/2013 11:48 AM Eastern Standard Time Printed Social: An essential component of pervasive B2B marketing ITSMA Marketing Leadership Forum May 29, 2013 Any use of this material without specific permission of McKinsey & Company is strictly prohibited
  • 2. McKinsey & Company | Four forces at work changing the nature of marketing The primacy of customer experience and engagement Digital darwinism Continued proliferation of touchpoints Explosion of data 1
  • 3. McKinsey & Company | 2 Virgin Airways CEO Steve Ridgway After all, we fly exactly the same planes as everybody else. We fly them under the same very strict safety rules. Yet if you go on one of our planes and experience the service, you’ll see it’s very different from many others. If we get our customers off the plane happy, and they go on to talk about that and get others to come and then come back again themselves— that’s a huge marketing tool for us. The rise of customer experience and engagement SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
  • 4. McKinsey & Company | American Express CMO John Hayes I haven’t met anybody—and I talk to a lot of my colleagues in the marketing world—who feels they have the organization completely aligned with where this revolution’s going, because it’s happening so fast and so dramatically. Marketing is touching so many more parts of the company now. It touches on service; it touches on product development. We need to organize in a way that starts to break down the traditional silos in the business The proliferation of touchpoints 3 SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
  • 5. McKinsey & Company | Chief Research Scientist, Yahoo Duncan Watts New datastreams, analytics and decision-making Marketing has long been data driven, with a lot of survey research and polling. But the volume and variety of data that we are beginning to acquire is vastly increasing, requiring better computing facilities…and a whole new science. The marketing world is about to experience a shock. We tell ourselves plausible stories about how consumers are going to behave but when you actually get the data, they don’t do that. Once you accept that your intuition about how people behave is inherently flawed, then you really need a different model for learning about the world. Everything becomes data driven in a real-time, reactive way. 4 SOURCE: McKinsey Quarterly, July 2011, ―How we see it: Three senior executives on the future of marketing‖
  • 6. McKinsey & Company | Digital Darwinism 61% of consumers use digital channels 43 39 17 1 Buy online and learn about brands/ products mostly online Purchase via FtF and mail but use digital channels to learn about and evaluate brands Use all channels to be aware of products and buy online 60 41 43 55 74 84 Average Microblogging Wikis Blogs Video Social networks 36 23 25 38 41 51 Users Dec 20101 Companies, Nov 20112 Percent And they bring their habits to work Consumer vs. company Web 2.0 usage penetration, Europe 5
  • 7. McKinsey & Company | Digital darwinism: Digital and social drive impact across the B2B Customer Decision Journey SOURCE: McKinsey, Customer Survey 2012, interviews, press reports and web research Online has become the 2nd most important source of information for B2B customers Digital / social enables more efficient and effective aftersales services, e.g., at Intuit 80% of all customer questions are answered in the online community Low channel costs revolutionize GTM approaches, through effective backbone tools that enable sales organizations to interact digitally New digital sales tools offering new opportunities (e.g., innovative sourcing solutions such as online auctions) 35% of B2B pre-purchase activities are digital / social Trigger 6
  • 8. McKinsey & Company | Digital darwinism: Over a third of B2B customers prefer digital over traditional channels for purchases Usage preferences of purchasers along the decision process, Percent First purchase (Buy) 1 Split excluding all customers who did not use after-sales and/or did no re-purchase 70 30 60 40 SOURCE: Customer survey 2012: 968 respondents across various industries from the US, UK and Germany Pre-purchase (Identify, research, consider & evaluate) 65 35 Post-purchase1 (Use & service) 37 63 Re-purchase1 (Buy) Traditional Digital Trigger 7
  • 9. McKinsey & Company | 8 Marketing must be pervasive ▪ We’re living in an era of engagement ▪ Marketing is no longer separable from the product, the experience at every touchpoint, all employees and the company overall ▪ Touchpoints critical to engagement exist in multiple functions and units, but marketing often lacks permission to access them ▪ Many datastreams critical to insight lie outside marketing …we’re ALL marketers now
  • 10. McKinsey & Company | Mastering value chain complexity – influencers, procurement, payments variations, distribution & channel partners, industry verticals, end users …And fit into the B2B “value chain”… Strong linkage to sales/the field – B2B marketers impact has to ―come to life‖ through sales. ―Partnership‖, not ―handoffs‖. ―Translation of customer insights into usable tools & tactics‖, not theoretical ideas Maximizing marketing investment – often spreading small marketing spend across hundreds of products and no ―mega-brands‖ Process is king to fit into ―engineering‖ DNA of many B2B companies Economic value propositions critical – must understand how customers make money and how offerings improve that 9
  • 11. McKinsey & Company | …With heightened agility to shape the Customer Decision Journey Align investment Gather and activate data and content Expand the surface area Distinguish via personal value Trigger 10
  • 12. McKinsey & Company | Social media embodies pervasive marketing … SOURCE: McKinsey Digital Marketing Practice; expert interviews Research (RFP) Buy Use and Service Loyalty repurchase Identify CustomerCDJstage Marketer action Monitor Interrupt LeadAmplify Consider and Evaluate Brand monitoring 1 Customer service 3 Brand/content awareness Product launches 7 8 Crisis & opportunity mgmt 2 Referrals and recommendations Brand advocacy 5 4 Foster communities 6 11 Targeted deals and offers 9 Solicit customer input 10
  • 13. McKinsey & Company | Digital and Social can be leveraged at each step of the B2B Customer Decision Journey SOURCE: McKinsey Trigger Track customer dialogues through a social media listening center Build a comprehensive knowledge database by leveraging online communities Refine client segmentation by leveraging Big Data Engage clients through interactive video marketing Approach, inform and engage clients through targeted webinars Ensure sales force effectiveness by equipping your sales force with tablets and digital catalogues Tailor your offering to the needs of each client, while providing access to a vast product portfolio Strengthen your distribution network through a partner certification program with tailored online support features Capture low-end of market through no-frills, web- based sales channel Improve market forecast quality through online interactive prediction sessions with clients Have clients service other clients via a customer service community forum Gather client input for new product development through an online feedback channel Collaborate with users by releasing software to the open source community 12
  • 14. McKinsey & Company | From … … to Communications Operations Design Build Operate Renew Touchpoint ownership split among functions Allocation of roles and decision rights for customer engagement But there are challenges: marketing is everywhere 13
  • 15. McKinsey & Company | Expectations are high for social media, but many are dissatisfied with current performance and measurement 1 Share of respondents with answers 4 (agree) and 5 (strongly agree) on a scale from 1 - 5 SOURCE: McKinsey Social Media Survey among ~ 200 companies Share of companies1 … Percent, n = 194 Companies are yet to fully achieve their expectations with social media … … that are realizing significant P&L effects … that see significant future upside potential 21 … that are satisfied with their performance 71 9 … because they struggle with measurement of impact and ROI … that measure the ROI of their social media activities … that have KPIs for their social media activities … that cannot measure the effect of social media 60 37 20 14
  • 16. McKinsey & Company | Social media can generate significant impact at lower cost than TV… but is it maxing out? TV Response curves for incremental sales Investment Incremental sales Tons Facebook fan page (owned viral social media) Online display Facebook advertising (paid social media) EXAMPLE SOURCE: McKinsey analysis 15
  • 17. McKinsey & Company | 16 Five Years From Now, CMOs Will Spend More on IT Than CIOs Do SOURCE: Gartner research ▪ 2011 B2B and B2C marketing budgets as a percentage of revenue were almost 3x (10%) IT budgets (3.6%) According to Gartner’s research: ▪ On average, nearly 30% of named marketing-related technology and services is bought by marketing already. What’s more, marketing now influences almost half of all purchases ▪ 2012 IT budgets are expected to grow 4.7%, while all marketing budgets, in general, are predicted to grow 9%, and high tech marketing budgets, more specifically, are expected to increase 11%
  • 18. McKinsey & Company | Social requires to build a set of capabilities to stay ahead Topics Description 6 Security ▪ Technical and procedural capabilities to respond to the increasing security leaks 1 Social talent ▪ Talent to master the digital journey (e.g. analytical skills, digital marketing…) and adequate setting to make it excel New mindset 3 ▪ New mindsets and behaviors needed to compete with new players and different ways to manage current and new digital channels 5 Metrics ▪ Set of metrics to enable target setting and monitor: – The social / digital journey – Digital performance 4 Innovation at the DNA ▪ Integrated approach to achieve that innovation is at the DNA of the company 2 Open business ▪ All types of partnerships (e.g. M&A, joint-ventures,…) to acquire the flexibility and capabilities to gain competitive advantage in the ―digital ecosystem‖ 17
  • 19. McKinsey & Company | 18 www.cmsoforum.mckinsey.comWWW @McK_CMSOForum www.youtube.com/McKinseyCMSOforum www.slideshare.net/McK_CMSOForum Staying connected