data is your new oil, identity your faster – webinar part 1
TRANSCRIPT
Data is your New Oil, Identity is your Faster Horse
Spencer Altman, Head of Business Consulting
“A new research report on marketing analytics shows that brands plan to increase their spending on the category by a
whopping 73 percent over the next three years. For big market cap B2C companies, it’s closer to a 100 percent
increase.”
Source : http://venturebeat.com/2015/08/21/new-research-companies-plan-to-massively-increase-spend-on-marketing-analytics/
Zalando buys Fashion Event Organiser ‚Bread & Butter‘-- June 2015
Source : http://www.gala.de/beauty-fashion/fashion/fashion-week-berlin-die-highlights-der-modewoche_1279665_225720.html
Source : http://www.internetworld.de/technik/database-marketing/telekom-gruendet-tochterfirma-emetriq-1002483.htmlTelekom launches daughter
company emetriqThe new Telekom daughter company launches with an ambitious goal:Together with top AGOF marketers, emetriq wants to establish the largest data pool in the german advertising sector
Media Company attempts to buy Price Comparison
Source : http://www.sueddeutsche.de/wirtschaft/medienkonzern-pro-sieben-sat-erwaegt-verivox-uebernahme-1.2357147
Source : http://www.wsj.com/article_email/can-google-outsell-amazon-and-ebay-1431730741-lMyQjAxMTE1ODEwNTYxMTU2Wj
Source : http://www.retaildetail.eu/en/eur-europe/eur-general/item/17595-google-and-facebook-gain-access-to-bank-account-information
“If I had asked my customers what they wanted, they would have said a faster horse.”
-- Henry Ford
What is yourfaster horse?
What customers do…
One Customer
Single CustomerProfileCoordinated Approach
What we want…
We want to avoid silo‘d customer communications
Each channel acts
independently
Treats a single customer like many different
people with uncoordinated,
irrelevant contactX
Consumer Value Creation Chain
EntertainWant/
Problem Recognition
Information Search
PriceAlternatives Conversion Post-
Purchase
Derived from : Michael Porter and Marcel Martschausky
Consumer Value Creation Chain
EntertainWant/
Problem Recognition
Information Search
PriceAlternatives Conversion Post-
Purchase
Media Companies
e-commerce
Finance
TravelPrice Comparison
Derived from : Michael Porter and Marcel Martschausky
Consumer Value Creation Chain – Conversion Sites
EntertainWant/
Problem Recognition
Information Search
Price Alternatives Conversion Post-
Purchase
Since 2000 Since 201X
20151-Click Mobile Payments
Direct Competition
CompaniesFocused on Conversion
Model
Derived from : Michael Porter and Marcel Martschausky
Source : http://etailment.de/thema/player/Google-Shopping-und-der-Buy-Button-Was-passiert-mit-dem-Online-Versandhandel-3327
‚…Online-Retailersare threatened to be downgraded to pure
logistics companies…‘
Google Shopping and the Buy Button: What is happening with online retailers?
Consumer Value Creation Chain – Conversion Sites
EntertainWant/
Problem Recognition
Information Search
Price Alternatives Conversion Post-
Purchase
Since 2000 Since 201X
20151-Click Mobile Payments
Direct Competition
Branding enables ‚jump‘to minimise Google/Facebook/others sending your
customers somewhere else
CompaniesFocused on Conversion
Model
Derived from : Michael Porter and Marcel Martschausky
Controlling your Value Chain - An e-commerce example
EntertainWant/
Problem Recognition
Information Search
PriceAlternatives Conversion Post-
Purchase
Since 2000 Since 201X
20151-Click Mobile Payments
Core BusinessWith Bread &
Butter
Derived from : Michael Porter and Marcel Martschausky
Controlling your Value Chain – An Insurance Example
Derived from : Michael Porter and Marcel Martschausky
EntertainWant/
Problem Recognition
Information Search
PriceAlternatives Conversion Post-
Purchase
*Source : http://www.zeit.de/2015/15/preisvergleich-check-24-portal/
€100 of an auto policy goes tocheck24*
€80 - €90 to Google*
€10 - €20 to check24*
Insurer
Example of Company who ‚Jumps‘ Google and Facebook
Example of Company who ‚Jumps‘ Google and Facebook
Choice for Future Success
Compete on price
Future Success
Branding/Best of Breed
Expand Value Chainor
Branding/Best of Breed
Expand Value Chainand
A Key to Customer Retention and Upsells
Entertain
Problem / Need
Info Search
Price Alternative
s
Conversion
Post-Purchase
Other
OwnedChannels
More
Less
Channel Strategy Own the Contact Points
X
Minimise Customers‘‚need‘ to go
somewhere else
YourCompany
Derived from : Michael Porter and Marcel Martschausky
Entertain
Problem / Need
Info Search
Price Alternative
s
Conversion
Post-Purchase
Use Single Customer Profile to… Anticipate next customer
problems/needs Anticipate next products Provide relevant information Provide price alternatives Reduce desire to search for product
alternatives elsewhere Maximize profit per transaction
Purpose of Data Warehouse & CRM
projectsDerived from : Michael Porter and Marcel Martschausky
Source : https://econsultancy.com/reports/customer-experience-optimization/
At least 82% of companies do not
work with aSingle Customer
Profile
Source : http://www.criteo.com/media/2265/etail-trends-in-digital-retail.pdf
All KPIs going up...
Imagine how good they would be if the companies actually
knew who they were talking to.
That is a challenge for 2016.
What will you do about it?
Thank you !
Spencer Altman [email protected] @spenceraltman Head of Business Consulting Berlin, Germany