five keys to unlocking growth in marketing’s “new golden age”

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Dr. Jesko Perrey

Krefeld | October 5, 2017

Five keys to unlocking growth in marketing’s “new golden age”

McKinsey & Company | 1@McKinsey @McK_MktgSales #McKGrowth

The old golden age of marketing


New trends shaping marketing today

Consumer power

Explosionof digital

Fragmentation

Always on Personalization

Data, data,data!

10

01

10

Personalization


This is the dawn of

a new golden age of marketing

McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 4


Science

StorySpeed

Simplicity Substance

The 5 S of the new golden age

McKinsey & Company | 6@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 6

“The beauty of marketing today is that we can really show the return. The data allows us to demonstrate impact in a much more transparent way than in the past.”

Lorraine Twohill, Senior VP for Global

Marketing, Google

Science


Science: Better decisions to increase impact

Avg. profitfor promotedproducts up

288%

Retail company


Science: Better decisions to increase impactInternational industry player

100,000 price points reset

500 SKUs

1.3 million transactions

Analy

tica

l re

ndering


Substance

“Look what [luxury brands] are doing: they’re building flagship stores that are beautiful, where you actually like to just browse around before you buy. Those are emotional places.”

Ola Källenius, Board of Management

of Daimler AG


Substance

Moving beyond messaging to shape

the substance of

business


Differentiation

Substance: Shaping substance of business

Products Services Experiences


… and inspiring store in Hamburg

Substance: Shaping substance of business

SOURCE: MercedesMe website, Daimler

Leading digital customer

interaction and experience…

▪ Automatic appointment booking

▪ Personalized financing▪ Co-creation of ideas▪ Sensor-enabled auto

diagnostics▪ Access to car-sharing

Daimler


Story

“It’s not [all data]! … If you fall down on the art, if you fail on the messaging and storytelling, all that those tools will get you are a lot of bad impressions.”

Lorraine Twohill, Senior VP for Global

Marketing, Google


Story: Better storytelling for emotional connection

Art director Film director

Direct collaboration for fragrance ads and short films

Chanel

SOURCE: Youtube; © Chanel


Speed

“Speed comes from decentrali-zation and creating a local autonomy to take local action.”

CMO, Consumer goods company


Speed

A culture of urgency has placed emphasis

on speed and agility


Speed: A culture of urgency to keep up with consumers

From To

Batch processing

Command and control

Manual

Slow development

Continuous delivery

Agile

Automated

Real-time test & learn


Speed: A culture of urgency to keep up with consumersGoogle

Early testing with consumers

Speed in product development

Putting products in front of consumers and bringing back insights in real time in a cycle of testing, learning, and iterating. Marketing as facilitator between user’s eyes and product developers

Learn in numerous iterations

Defining ideas and concepts

Developing prototypes


Speed: A culture of urgency to keep up with consumersNestlé

SOURCE: Youtube; © Nestlé

Digital Acceleration

Team

12 of Nestlé’s highest performers

8 months project time

1 task: scout and test innovative digital ad technologies and strategies


Simplicity

“The growing complexity is unmanageable: in-house vs. external partners, established channels vs. new channels. We need help to get through this jungle.”

CMO, Consumer goods company


Simplicity: Simplify to execute

Speed and agility require relentlessly focusing

on simple


Complexity kills

Expanding geographic footprints

Product and channel

proliferation

Digital and technology

specializations

Hierarchies, silos, gaps,

redundancies

Simplicity: Simplify to execute


Customer experience is a C-suite issue

Simplicity: Simplify to executeTelecoms company


Disparate HQs and teams

Single team mapped to customer journey

Consistent brand experience

Simplicity: Simplify to executeDaimler

Customer journey

Before

After


The most important questions to ask

Speed Faster than our competitors or slower?

Simplicity Simplifying processes or overwhelming with new things?

Story Making connections or speaking into space?

Substance Differentiated experience or “me-too” selling?

Science Today’s insights or yesterday’s facts?


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@JeskoPerrey

Dr. Jesko PerreySenior Partner and Global Knowledge Leader of

McKinsey's Marketing & Sales Practice

McKinsey on Marketing & Sales

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