john batistich, westfield group, everything is broken
TRANSCRIPT
http://www.creativeadawards.com/original/wrecking-ball/11338
EVERYTHING IS BROKENthe end of business as usual
john batistich
“we think that everything is broken & we
throw our computing power at it to fix it”patrick pichete global cfo google
“nearly all of the tools, processes &
philosophies around marketing were
developed more than 50 years ago”
26 May 2010
“we want a one to one relationship with
7 billion customers” bob mcdonald ceo p&g
http://garinkilpatrick.com/awesome-marketing-blogs/
“we are living through a
change in the way ideas
are created, spread &
implemented. there’s a new
model of leading &
connecting people with
ideas for change” seth godin
what we learnt is being disrupted
old models don’t work like they used to
new methods are being explored
http://www.flickr.com/photos/sameli/1898511953/
rules are being challenged
time to think different. think big!
source: richard watson. picture: john homer
increasing life-spans
declining fertility
skills shortage
cotton wool kids
rise of the screenager
rise in sinks & dinks
increased immigration. higher ethnicity
urban-rural polarisation
smaller households
environmental change
resource shortages rising costs
resource nationalism
carbon economy
increased regulation
peak oil
water labeling
packaging/waste taxes
eco-cynicism
1 billion new mouths
market expansion
product sourcing into aus/nz
services outsourcing
asian values & aesthetics
resource competition
inbound tourism numbers
protectionist backlash?
demographic
power returns east
sustainability
1 accelerator of change
1. ubiquitous connectivity
2. democratisation of production tools
3. access to higher data speed/more storage
technology enabled connectivity1 billion pcs & 4 billion mobiles
location-based services
mobile & social payments
intelligent vending
3d screens
rising transparency & amplification
increasing collaboration
personalisation
acceleration of everything
hunger for real shared experiences
source: richard watson
26 May 2010
1. technology
2. behavioural change
3. business model
3 waves of change
“WE ARE LOSING SHARE OF RETAIL”
“soon…you won’t forget anything, you’ll
never be lost, never lonely, never bored &
never out of ideas” eric schmidt ceo google september 2010
1.SHOPPER BEHAVIOURAccelerated change in shopper behaviour challenging old norms
old wayscommand & clicks
text & 2d
single task
desk/laptop search & email
ecommerce
store trading hours
national
appointment to view
entertainment & retail
seasonal sales
quality relationships
private
new behaviourstouch & gesture
video & 3d
multi-task
social & mobile search
mcommerce & social commerce
shop anytime anywhere
service finds you
time shifting
merged in a closed loop
always on special
quantity relationships
public
source: psfk
2.THE LINEAR PATH
TO PURCHASEThe old linear model is being replaced by a network to advocacy
See an AdReceiveCatalogue
Mail or eDM
Visit
Store
Consult
Sales
Person
Buy
Sign Up
for
Loyalty
card
Contact
Customer
Service
old linear path to purchase
Awareness Consideration Trial Purchase Repeat
Product
Search
Compare
Online
Read
Reviews
Browse
Content
Call a 1800
number
Track
Purchase
See an Ad
ReceiveCatalogue
Mail or eDM
Visit
Store
Consult
Sales
Person
Sign Up for
Loyalty
card
Contact
Customer
Service
Read
FAQs
Sign Up
for eDM
add online & social web
Create
Tags
Link from
Friend’s
Watch
YouTube
Video
Peruse
Blogger
Sites
Join
Fan Page
Peruse
Blogger
Sites
Create
A UserCommunity
Buy
Follow
Brand on
Stream
PurchaseExperience
Get Geo
Targeted
Offer on
Mobile
Post
Review
Upload
Picture
Ask
questions
via live chat
Invite
Friends to
Co-Shop
Scan QR
Code for Information
Reorder
via
Phone
Join a
relevant
forum for
advice
Read a
Foursquare
or Yelp
Review
Get up to
the minute
Reviews
Use an
application
for offers
Review on
IPTV
3. LINEAR DISTRIBUTION
CHANNELSThe future or retail is customer centric & channel agnostic
customer chooses multi channels
50%
$255B
offline
only
44%
<1%5%
search
online
buy
offline
search
offline
buy
online
online
only
total
retail
sales
4. TRADITIONAL STOREWe crave social, physical and instant experiences. Online experiences are changing store expectations
the store needs re-invention. more
experiential, service, social & integrated
5. DIFFERENTIATION DELUSIONBeing different & better only matters if your customer believes & values it
your brand is not as
different as you think it is!
80%
8%
ceo customersource: contagious
Is your brand different? % Agree
consumers & businesses differ on
why they interact on social sites
6. DISCOUNT DEVOTIONWe are increasingly dependent upon deep discounts training our customers to wait for specials
the amount of purchases at discount
is at a all time high & many can’t stop
http://cerisereve.deviantart.com/art/Used-Crayons-72200919
7. OVER CHOICEWe need simpler solutions & more involved experiences
http://michaelfaber.deviantart.com/art/not-thinking-straight-35033655
in 1997 there were 2 million brands
and now there are 8 million brands
more clutter. more confusion
in 2008 the average person’s daily intake of
information was 300% greater than in 1960 university of california san Diego study
Source: Sparksheet.com
8. LOYALTY PROGRAMSToo many complex reward programs with low value creating reward fatigue
the world doesn’t need another hard to
understand low value reward program
Spend $15.7K at Coles on FlyBuys or spend
$11K at Woolworths to get a $50 voucher
Source: impetuoussoftware.com
9. DATA DELUGEMaking sense of the increasingly available behavioural data is the new gold
most marketing departments are
not prepared to make sense of
the data that is rapidly becoming
available about their customers
http://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based-Learning1a.jpg
10. LACK OF TESTINGThe world is forever in beta test
amazon conducts 200
tests a day to improve
the user experience
learn fast, cheap, well & first. place lots of
little bets and scale up the ones that pay off
11. RESEARCH REACH
http://www.qualtrics.com/blog/wp-content/uploads/2010/06/market-research.jpg
Majority of your audience are out of reach
“you only get to talk to about 10% of the population
via traditional online market research, so what about
the other 90%? Who wants their evening interrupted
with a phone call from a research agency” Peter Harris
12. CLAIM BASEDMARKET RESEARCH
http://corporate.bangthetable.com/2009/03/14/market-research-is-not-community-engagement/
You are what you do not what you say
we make
decisions on
claimed not actual
behaviour. who
can accurately say
how often they
have seen an ad or
purchased a
product in the last
4 weeks?
http://www.shutupitson.com/tag/mad-men/
13. MEDIA AGENCY DEALSChannel agnostic, complete transparency & total accountability
media agencies who commit to future
investments with media owners before
understanding their clients needs
media agencies that get rebates
from media owners & don’t
disclose them to their clients
14. THE AD AGENCY New models forming for social, digital, video & mobile channels
agency resources measured on inaccurate
time sheets vs value/outputs
Source: webzbranding.com
resourcing digital channels that are more
intensive, reiterative & measurable
the creative director role will evolve
from creator to curator because no one
person has a mortgage on creativity
http://steja007.deviantart.com/art/HD-wallpapers-part-2-104834273
agencies will collaborate more, shift to
projects over campaigns & create ideas
that are born to live in beta (social) not
built to die (media schedules)
15. EDM INVOLVEMENT
http://www.fullissue.com/index.php/email.html
Volumes are up but open rates & click through rates are declining
why do 79% of members don’t even open
your email? & it’s getting worse!
Source: Responsys
16. CPM FOR TV ADVERTISING
http://www.digitalproductionme.com/article-1135-middle_east_tv_ad_revenues_to_buck_downturn/
Your audience is not as high as you pay for!
80
viewership of ad breaks can be 10%-
35% lower than the program you buy
Source: ikon
SO THINK ABOUT…17. YEAR OF THE MOBILEIt’s not the year but the decade of mobile which makes everything local, social & personalised
“our coordinates, has the potential to
change all the outputs…where we shop,
who we talk to, what we read, what we
search for, where we go, they all change
once we merge location and the web” matthew honan wired magazine
access reviews, pricing, content,
community & buy anytime anywhere
mobile payment systems
change the pos & banking
18. ECOMMERCE
CONVERSIONValue, range & convenience driving online sales but conversion is extremely low
different conversion by channel
online
conversion
good store
conversion
92%
30%
2%
westfield
conversion
19. CHECKOUT
ABANDONMENT
why the high online cart abandonment?
online cart
abandonment
store cart
abandonment
<1%
65%
20. ACTIVE INVOLVEMENT IN
SOCIAL NETWORKSToo often, acquisition is the key focus but active involvement has real value
97.4%
2.6% active: like, post or comment
passive or do nothing at all
why acquisition over involvement & value?
how do you get your community active?
22. VALUING A LIKE
OR FOLLOWER
http://blog.zuupy.com/are-facebook-likes-useful-when-there-is-no-di
Apply a quality measure to all acquisition & stay agnostic
418% more likely to visit startbuck.com
spent 8% more. transacted 11% more frequently
are they pre-existing preferences?source: comscore
23. SOCIAL BUSINESS READYMost organisations were not designed for today’s networked world
http://themobius.deviantart.com/art/Depth-of-Night-71363751?
old modelcustomer outside
deliver a promise
interruption
sell & tell loudly
creative & media
communicate an image
one to many
strive for perfection
trust through authority
new worldcustomer inside
guided by purpose
interaction
actively involve
content & distribution
deliver an experience
one to one & many to many
forever beta testing
trust through transparency
http://www.noupe.com/inspiration/stunningly-creative-and-unforgettable-print-ads.html
24. CRISIS MANAGEMENTListen, shape & respond with speed & transparency
“Consumers have
something they
have never had
before, the power
to warn &
threaten, rather
than to punish
silently after the
fact” bruce philp consumer republic
25. MORE MEETINGSRunning productive meetings will free up capacity to think & create
we seek more
collaboration
why does the meeting
expands to the time allotted?
why not change the time allotted!
26. REFLECTIVE THINKING
http://my.greasy.com/cgi-bin/blogapp/img.cgi?image=32367767.jpg
We are losing the ability to think in a deep, creative ways, which is affecting our decision making
“teens were faster than adults at
reading online but their attention
spans were much shorter, so anything
difficult tended to be skipped” jacob nielsen
“always on, information overload, multiple-
tasking work environments are killing
productivity, attention fragmentation,
dampening creativity and making us unhappy” mckinsey report june 2011
source: psfk
KEY IMPLICATIONSAsking the right question is the first step for change
26 May 2010
1. understand the changes in your customer journey driven by connectivity
2. shift your digital gravity towards mobile
3. optimise your website for smartphones
4. track the engagement of your social communities & identify value
5. insist on media transparency & accountability
6. review your real tv audience
7. focus on activating of your edm databases
8. simplify your loyalty program
9. review your data analytic capability & tools
10. change the focus of your research towards behaviour
11. set aside 10% of your budget for testing
12. evolve towards a social business design
13. run productive meetings. cut meetings by 15 minutes to create 25% more time
14. don’t use meaningless words like engagement & activation
15. carve out time for reflection & learning
16. define what you need to stop, start & continue to free up capacity to think
SOURCESStanding on the shoulders of giants
westfield study tours
morgan stanley
ellie rogers of ikon
dr ken hudson
david whittle of m&c saatchi
anouk darling of moon
michael batistich of we are social
peter harris of vision critical
jon bird of ideaworks
best buy slideshare
richard watson
youtube
google & google images
flickr
techcrunch
mumbrella
emarketer
smart company
inside retail
psfk
mckinsey quarterly june 2011
contagious q2 2011
LIFE MOVES PRETTY FAST
IF YOU DON’T STOP & LOOK AROUND
ONCE IN A WHILE, YOU COULD MISS IT
http://www.creativeadawards.com/original/see-further/3298
SO, DON’T MISS THE OPPORTUNITY TO
FIX WHAT’S BROKEN IN YOUR WORLD?
http://www.creativeadawards.com/original/wrecking-ball/11338
EVERYTHING IS BROKENthe end of business as usual
john batistich
