THE ARCHITECTS

FUTURELAB

We assist

Marketers to maximise the return

on their investments

Innovators to create more

successful propositions.

CEO’s to grow profits through

customer-centricity.

Athens

Brussels

Bucharest

Hamburg

Iasi

Kiev

Moscow

Shanghai

Some Credentials

Astra Zeneca

Deloitte

Fortis Investments

Heineken

Hewlett Packard

Lego

Mobistar

Special

Relationship

Gemalto

Lexus

Philips

Pireaus

CHANGE MARKETING? YES WE CAN.DIGITAL EDITION

FUTURELAB

Flashback 2006:

I Am The Media

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The traditional marketing

model is being challenged, and

(CMOs) can foresee a day

when it will no longer work.

McKinsey Quarterly, 2005, Number 2

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2009-2011

The End is Here

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For many traditional mass-habits

US media fragmentation and the demise of the “big 3”

Source: Deloitte – State of the Media Democracy Survey, 2008

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Over one-third of US consumers are watching TV shows online

Always & almost

always; 88%

About half the time, 7%

Hardly ever, 3%

Never ; 6%

UK DVR owners who fast-forward the adverts(% of recorded programmes)

Source: Ofcom Research, February-March 2008

8.6

1.1

48.2

9.4

Europe West Europe East/ME

2008

2013

DVR Growth by Region(millions of units)

Source: Informa Telecoms & Media, Q4-2008

TV Ads are being “tuned out”

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Source: Europe Logs On, Microsoft, April 2009

European Internet vs. TV consumptionHours/week

37% of french consumers

already listen to radio via the

internet (IT,UK,DE = ca. 1/3)

Internet usage on PC will

drop from 95% today to 50%

in 5 years time as people

switch to other methods

In Europe, Internet will soon be bigger than TV

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26%

20% 20%

13%

9% 9%

30%

23%22%

13%

7%

4%

18-32 33-44 45-54 55-63 64-72 73+

% of total population

% of internet population

Source: Pew Internet and Americal Life Project December 2008 Survey

Internet vs. real world population by age groupUnited States, December 2008

And it ain’t just the kids

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The answer ... go socio-digital !!

“The workers

should

appropriate

the means of

production”

After all, there is an ever expanding universe to play with

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84% of Germans under 30

would rather give up their car or

partner than live without internet

or mobile telephone.Source: Bitkom study via Onlinekosten.de – March 2, 2009

72% of British male gamers

would avoid having sex for a

chance to try their hands on a

brand new PS3-game.Source: PS3 Price Compare study, via Itproportal, March 3, 2009

And engagement goes deep ... very deep

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Many digital

marketing herd

activities just don’t

cut it either ...FUTURELAB

The Sad Reality

78% of consumers consider in-stream advertising as

“intrusive”. Half of viewers stop watching an online

video once they encounter an in-stream ad.

Source: Burstmedia, January 2008

29% of consumers leave a website that appears to be

cluttered with advertising.

Source: Burstmedia, December 2008

Only 13% of UK consumers pay attention

to ads on social networking sites.

Source: Ebay Advertising, March 2009

BANNER/AD BLINDNESS

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NEW !!

TWITTER SPAM

Different Channel, Same Problem

Reality Check

What does this

mean for the

business???

“If I tell my Facebook friends about your brand, it’s not because

I like your brand, but because I like my friends.”

Mike Arauz

FUTURELAB

Different Channel, Same Problem

“The problem is not the [online] medium, the problem is the message, and the

fact that it is not trusted, not wanted, and not needed”

Eric Clemons

“Informed” consumers

are much less reliant

on advertising for

product information

Out of 20 media

company blogs are

“least trusted” sources

of information.

Consumer product

ratings/reviews are the

second most trusted

source.

(Forrester, Q2-2008

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MarCom Needs A Reboot

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Across the board (including digital) ...

The Core Issue

People who live near

train lines adjust to

the noise.

They do the same

with advertising.

Image: (c

) A

dam

booth

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BRANDS HAVE TO STOP BEING NOISEAlso in the digital space

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Getting consumers to embrace the message

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Imagine instead …

It can be done

• Harry Potter Books ( + 3000 pages)

• General Hospital (11,800 episodes)

• The Matrix

• Star Academy

• Fan Protest Save Jericho

• Harrypotterfanfiction.net (54,000 stories)

• Of Gods and Men

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Talking about what YOU

want to say

Interrupting me

Treating me like any other

35-45 year old male

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Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

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AN OPEN SOURCE MODEL

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

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BRAND-CENTRIC

COMMUNICATION PLANNING

HUMAN-CENTRIC

COMMUNICATION PLANNING

To make me pay attention, stop looking at yourself

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Starts from what the brand wants to say and

how to efficiently get it to pre-defined

homogeneous audiences.

Starts from what the customers want to “hear”

and and being relevant to their

situation, environment, interests and needs.

How to advertise at a busstop?Illustrating the point

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Brand/Media-Centric Communication Planning

You need to get extreme to get noticed

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relevance = f(personality, need, situation)

What would this man want to hear?Human Centric Communication Planning

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I consume a massive amount of media every moment of my day … it’s just not yours.

But as a brand, there is no reason why you can’t change this.

Audio/Video

PodcastsMobile

Games

Books &

Magazines

Mobile

Television

Social

Applications

Story

Posters

Busstop

Conversations

Human Communication Planning

A World of Opportunity

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relevance = f(personality, need, situation)

Don’t look at the box, look at the personAlso in digital/web

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TODAY:

Take your existing plan

and ask yourself

“what’s in it for the

customer to give me

his media-time?”

How can I make it

more relevant and

interesting?

And if you don’t

know, go into the street

and ask.

Project Battlecry: Challenge 1

Introduce Human-Centric Communication Planning

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STRUCTURAL SOLUTION

Establish a “human driven” communication

planning model

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

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Trust us - Engage with us - Become an Advocate - “Love Us”

Brands seek loyalty for life

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One Night BrandBut in Reality they behave like a

• Seduce & Forget Campaigns

• Loyalty Scams

• The New Customer is Prettier

• Join This Week’s Community

• You are just a segment

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Would you still “engage”?After the lies, the forgetting, the disregard, the customer promiscuity

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TODAY:

For every of your

current

initiatives, validate how

customers can “really”

talk back (and who

listens).

Look at the explicit and

implicit promises you

make, and check

whether they are kept.

Force your team and

business to “talk to the

customer” (cf. P&G

India).

Project Battlecry: Challenge 2

Start Building Individual and Lasting Relationships

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STRUCTURAL SOLUTION

Shift from campaign based, mass-comms to life-

long personalised messages:

• Think microsegmentation or even individual

customers

• Build customer life-time communication

plans rather than campaigns

• Change your budget and people structure to

accomodate this changed reality.

Of 1,365 CPG brands studied

Only 2.5% of shoppers

made up 80% of Sales

Only 25 had a shopper base of over 10% driving

80% of their respective volume

Windfall: The Mass Market is an Illusion

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5,250,000 inhabitants

X 90% = 4,725,000 Shoppers

X 2.5% = 118,250 people representing 80% sales

Imagine these figures travel to Finland

Your windfall

Many CPG’s “could” know every customer

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Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

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I’m a great lover ...

DIRECT SALES

www.greatlover.com

ADVERTISING

He’s a *great* lover !!

BUILD A REPUTATION

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Imagine that I want to convince you of my skills as a lover.

To Illustrate the value of a reputation

% of people who trust companies less in 2009 than in 2008

Source: Edelman Trust Barometer, 2009

When it comes to company

information, a “peer” is as

credible as an industry

analyst and only

preceeded by an “expert”

Source: Edelman Trust Barometer, 2009

Word-of-Mouth is the #1

influence on business-

to-business buying

decisions

Source: Keller Fay, 2006

Nearly 70% of consumers

surveyed thought that

pharmaceutical information from

peers was credible and

believable, even if the peers

were not experts.Source: Keller Fay, July 2008

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It’s the same for any brand

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The value of a reputation

Show Me the Money !!Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

0 1 2 3 4 5 6 7 8 9 10

Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company

How likely are you to recommend ?

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Those who speak well about you are more profitable

Customers that are so happy

they recommend are the most

profitable of all…

-They spend more

-They negotiate less

-They stay longer

-They are easier to service

-They upgrade quicker

-They bring their friends

Case: Lifetime customer value

Disguised

€ 3,000

Detractors

€ 9,000

Neutrals

€42,000

Promoters

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008

Case in Point: Apple

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Total Customer Value of an Apple advocate is almost twice that

of the industry average, mainly driven by referrals

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008FUTURELAB

Case in Point: Apple

Share of Wallet (B2B-markets)

“at the point of delight, there is

an exponential increase in the

share of wallet”

Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf

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Above all, your reputation drives your profit

Build a reputation

Helping your business

create promoters by

delighting them

Helping these

promoters spread the

word …

Focus on it

Project Battlecry: Challenge 3FUTURELAB

Customer Score or NPSLow High

Low

High

Sh

are

of

Wa

lle

t

Nurture &

Leverage

Abandon

Nurture to promotion

Build business

TODAY: RECESSION DIGITAL PLANProve to your business that reputation matters and

can help create or safeguard 2009 sales

Relevance: Introduce human-centric communication planning

Engagement: Start building individual and lasting relations

Reputation: Use digital marketing to create/leverage promoters

Relevance

EngagementReputation

€

BATTLECRY

AN OPEN SOURCE MODEL

Relevance Our Brand

Engagement Standardisation

Reputation Doing cool stuff

IN STEAD OF WE THINK

In which we should recognise

that we are all addicted

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… and that we are hostages of our own

making

Media-centric planning & buying systems

“Big Idea” creative execution

Efficiency-driven compensation systems

“Mass”-based orthodoxy

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Help invent a new marketing reality

Challenge your agencies – your business – yourself to

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Customer Centricity

Profit

Innovation

CHANGE MARKETING? YES WE CAN.

FUTURELAB

To contribute to the revolution, get in touch: ath@futurelab.net or @alain_thys