In June 2005, a blogger named Jeff Jarvis wrote this and then another post in the Guardian titled Dell hell which kick-started a PR storm for the brand. A subsequent product recall only made things worse. They could have tried the usual - a giant feel-good campaign, a multi million dollar film that shows CEO telling people ‘we will make this right’.. Dell realized early on that in the digital age, the consumer doesn’t just consume, he spits back, he knows how to use the network and he can singlehandedly bring down your company. So instead of TALKING or simply creating the perception of value, Dell focused on DOING or creating real value.
And that’s how IdeaStorm was born. A community where Dell customers can suggest product improvements / new products and DELL would review and implement the ones their own team of experts found most suitable. So what they did was ACTUALLY create value and not just talk about it. As of today Dell has implemented 500 ideas (across product, distribution & price). This presentation is about ideas like this
There’s typically two things we do in marketing. One is make things or do stuff and then of course the other is talk about the stuff you do, tell stories built around the stuff you do. Typically we imagine the role of digital media within the storytelling space, because we look at it as advertising whose function is really to create the perception of value. But what if we start looking at using technology to create value for consumer?
Things we do or the creation of value is rooted in what we do with product, place, price. Imagine if we embed digital technologies - Social, Local, Mobile, Real time, into the brand’s core - we’ll get stories worth telling and brands that are more useful, meaningful and relevant to people. By digital consumer I mean anyone in India who has access to some kind of digital technology from SMS to ipad. So the universe is much larger than ‘Indians online.
So lets look at some innovations that can become thought starters for us.
7000 recipes, many of them using Kraft products. The application has also in-built shopping lists and deals/ coupon features that incentivize users. It is one of the few applications that has continued to keep its users engaged: It launched in 2008 and to date, about 60% of users that downloaded the application continue to use it. In fact, Kraft charged a cool 99cents per download as well, ensuring an alternative revenue stream and solidifying its value with the users.
An app that lets you control the TV with your mobile phone. Numbers unknown so far.
Things you do<br />Stories you tell about things you do<br />Digital <br />TV<br />Print <br />Radio <br />Creation of value<br />Perception of value <br />
WHERE VALUE GETS CREATED<br />PRODUCT <br />MORE USEFUL, RELEVANT & MEANINGFUL TO THE DIGITAL CONSUMER<br />PLACE <br />SOCIAL LOCAL MOBILE<br />REAL-TIME<br />PRICE <br />
#1. <br />Embedding or Integrating solutions or services into products <br />
IMAGINE : A car embedded with a solution to lower your carbon footprint by 15%. <br />
IMAGINE : Food products that assist you in the kitchen<br />Over 7000 recipes, many of them featuring Kraft products<br />Launched in 2008, 60% of those who downloaded continue to use it<br />App charged at 99 cents per download<br />
IMAGINE : A DTH service that makes TV social for you <br /> An app that lets you control the TV with your mobile phone<br />
#2. <br />Pricing that ‘rewards’ consumer behavior <br />
IMAGINE : Prices that decrease just because you told a friend <br />
IMAGINE : Prices that you and friends can collectively control <br />
#3. <br />Buy where you connect, Connect where you buy <br />
IMAGINE : Store as entertainment destination <br />We live in an age where you can’t sell a bad product even ONCE. <br />Over 200K views, coverage in 200 blogs, started as a campaign in 2010 but lives on as an ongoing sales platform for the brand <br />
IMAGINE : Shopping made social <br />Social, Local, Mobile, Real-Time.<br />
As on April 2011, <br />Square has shipped 341,688 of its card readers to date and has 332,483 activated users<br />It currently processes $2mn payments per day <br />
#1. Integrate solutions or services into your product <br />#2. Make price into a reward for social behavior<br />#3. Give consumers a chance to buy where they connect and connect where they buy <br />