mass marketing is dead long live marketin
TRANSCRIPT
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The End of Mass Marke+ng The Beginning of Marke+ng to individuals
Marke&ng to empowered consumers
From
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al It used to be..
• You segmented your audience on demographics.
• You developed and tested marke&ng messages for those segments.
• You used mass media to effec&vely reach you audience.
• You waited for the sales numbers to increase.
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But today mass marke&ng is headed towards ex&nc&on
• Consumers want more from brands and products.
• They are skep&cal that corporate America will “do what is right”.
• They are purchasing more private label products.
• The Internet, and social media, has given them a channel with a lot of power.
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the individu
al Because customers are real people
• I am your customer. A real person, a human being.
• For too long you have treated me as a faceless number and lumped me into a segment in a mass market.
• I’m not a segment, and I won’t tolerate that any more. I am an individual.
• There may have been a &me when I didn’t have much choice, but now I have many choices, so you need more than I need you.
• I have the power & I am in control.
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And for the most part they are ignoring your ads
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They are also smarter and more frugal shoppers today
• As the economic downturn has con&nued, the percent of shoppers who typically buy the brands they want most has steadily declined across the categories examined.
• In March 2010, less than 50% of shoppers report purchasing the brand they want most.
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With deep rooted cynicism towards companies
• 58% sampled felt that ‘companies are only interested in selling products and services to me, not necessarily the product or service that is right for me’.
• Only 9% trusted companies to ‘always act in their best interest’ although more than 50% thought ‘they some&mes did’.
• Only 5% trusted adver&sing and 8% what the company says about itself’.
• Only 17% (10% UK, 23% US) of respondents thought companies took note of what they
Source: Alterian, Brands at Risk, 2010 survey
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al It’s &me for marketers to stop
being zombies
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al And accept reality
From
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al Mass marke&ng is dead..
From
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It started with the end to tradi&onal segmenta&on
• The +me of mass social segmenta+on is over. Now people are clustered in microsegments.
• You are more likely to have more in common with someone you friend on social media than your next store neighbor.
• A marke&ng program can be really successful if it reaches key influencers.
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al Is this a paradigm shi] ?
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No, it’s the evolu&on of consumers
• The more choices people have, the more they segregate themselves into smaller and smaller niches in society.
• The Internet has allowed people to reach out to each other and become a powerful force of one.
• The recession, which is the worst most of us have ever experienced, is leading to the way consumers shop and think about the brand-‐customer rela&onship.
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Leading to permanent changes in consumer behavior
Consumers today..
• make purchase decisions in an average of 2.6 seconds
• abandon >50% of shopping carts online without ever making a purchase
• know fundamentally that power has shi]ed from companies to them, and they don’t o]en give brands a second chance
• are your business’s scarcest resource and most valuable asset.
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al Time to shi] focus to individuals
rather than the masses
• 20% of your customers produce 80% of your revenue 10% give you 90% of your profit.
• A sa&sfied customer will tell 3 people, but a dissa&sfied customer will tell 12 other people.
• It cost 12 &mes more to win back dissa&sfied customers a 5% increase in reten&on would
increase profits 25-‐55%
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Social media is an important part of a strategy to reach individuals
While consumers consider Web sites to be the place to go for informa&on about a brand and promo&onal offers, they find
Facebook to be the ideal pla@orm for voicing their opinions and connec+ng with other customers.
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al Why people use social media
when it comes to consumer brands
1. Share experiences.
2. Become brand advocates. – i.e. Apple, BMW
3. Get help with technological issues. – i.e. Vizio, Nokia, Samsung
4. Complain about poor performing brands/products.
5. Get special offers/discounts.
6. Learn more about via value added content.
7. Connect with others who have similar interests. – i.e. Subaru, Trek Bikes
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Consumers are sharing opinions via social media on CPG’s
When consumers want to "share opinions/experiences" regarding a CPG brand;
• 57% use the brand's Facebook page,
• 50% its Web site and 38% its Twiler page.
• When they want to "connect with other customers," 54% use the Facebook page, 48% the brand Web site and 35% the Twiler page.
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al But don’t mistakenly believe
that your brand needs social media
• Is your product/brand worth talking about ?
• Can you provide a reason, other than discounts, for people to engage with you on social media ?
• Does your product o]en require technical assistance ?
• Do you get a lot of calls from into customer service ?
• Are people interested in sharing experiences of “how to’s” when it comes to your product.
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And don’t make these mistakes when it comes to social media
• Don't think you can just plug in and go. – Managing communi&es requires more than technological skills and so]ware; technology
is just an enabler. If you don't have people who understand your business and have the skills to facilitate vibrant discussions without domina&ng the conversa&on you won't generate good insights.
• Don't believe bigger is beEer. – Companies o]en believe that the bigger the online community, the beler the insights,
and so they build communi&es with thousands of members.
– In fact, large communi&es are less effec&ve than smaller ones at nurturing rela&onships among members, and between members and the brand. They are more transient, less "s&cky," and less sa&sfying all around. When the goal is deep customer insights, smaller, private communi&es (up to 400 members) are best for developing trust.
• Don't expect people to s+ck around for nothing. – Community members need to benefit from their par&cipa&on. To sustain their interest,
design engaging ac&vi&es (online or off) that allow them to talk about the brand in the context of their lives and build personal or professional rela&onships. Give them ways to talk with each other, and with you.
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• Don't "sell". – You'd be amazed at how many companies get customer communi&es up and running
only to sabotage them by trying to turn them into another sales channel. Customers want to feel like you mean it, and they know when they're being suckered. They'll clam up as soon as they get a slick sales vibe. Build trust and your community members will tell you more -‐ and buy more from you.
• Don't drop the ball. – Show members that you are ac&vely listening and you value them: contribute to the
conversa&on, building on their comments, and tell them what you're doing with their input. The worst thing you can do is stop engaging when you think you've got your "answer." Develop a long-‐term rela&onship with your community. Deep insight takes &me to emerge.
Don’t make these mistakes when it comes to social media (con’t)
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al Consumers s&ll use branded
product websites too • In the consumer-‐packaged-‐goods
(CPG) sector, there's no shortage of online interac&on between consumers and brands these days. – In the food/beverage realm, 26%
said they'd be likely to go to a brand's Web site, 15% to a brand's Facebook page and 12 percent to a brand's Twiler page.
– The palern was quite similar for household products (26% Web site, 13% Facebook, 12% Twiler)
– personal products (23% Web site, 13% Facebook, 12% Twiler)
– beauty products (26% Web site, 13% Facebook, 11% Twiler).
Ipsos Marke=ng, Consumer Goods
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In fact it’s where consumers go first when they want informa&on
When the purpose is to "obtain informa+on about a brand
• 74% said they go to the brand's Web site
• 34% to its Facebook page
• 28% to its Twiler page. • The numbers were nearly iden&cal
when it comes to geqng coupons or promo&onal offers.
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al Smartphone apps are growing too
For branded content
• “We see Tide as the authority in stain removal, and we’ve had stain solu+ons on our Web site for some &me, and we wanted to extend out of home to reach consumers.”
• “We see”? What about consumers ? Do they really need to take up space on their smartphones with an app that reminds them how much they hate cleaning ?
– It maybe downloaded a lot at first because it’s free but it probably be deleted a]er a short &me because of lille use.
• Think: How consumers want to get their informa+on and if your target audience is using the channel.
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A key step in marke&ng to individual consumers: iden&fy barriers to conversion
• Once you have awareness and consumers are considering your brand the next step is to develop a decision tree analysis;
• What problems does your brand solve ?
• What are the poten&al barriers to conversion as seen by consumers ?
• What is best way to overcome these barriers ?
• What is the best channel to overcome these barriers ?
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al Overcoming barriers to
conversion • Once you have iden&fied barriers to conversion use the best
channel to overcome them. – Web: Different homepages based on keywords – Web: Intui&ve naviga&on (nav based on the way consumers go
through buying process with objec&ons overcome along the way)
– Social Media: Solve problems, talk about your product in human terms not sales talk.
– Print ads: different print ads for different publica&ons. Advetorials based on quality, value added content.
– Online ads: content customized for each site based on psychographics and behavioral targe&ng of visitors.
– CRM: extensive database with content that is pulled based on data of customer behavior.
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Marke&ng to the individual Print Media
Dated
• Match target market demographics with magazine readers and run ads.
New Marke+ng
• Customized content (not just ads) based on psychographics and demographics of magazine readers.
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Marke&ng to the individual Brand Websites
Dated
• One home page and website for everyone. Use search to drive traffic.
New Marke+ng • Different homepages based on
search terms. • Unique naviga&onal paths
through site by microsegments.
• Use cookies to rotate content.
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Marke&ng to the individual Social Media
Dated
• Use social media as another channel to sell customers.
New Marke+ng • Use social media to listen to
your customers.
• Engage in dialogue rather than monologue.
• Use social media for customer service.
• Create brand evangelists
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Marke&ng to the individual Promo&ons
Dated
• Focus on price and discounts.
New Marke+ng • Bring people together to
celebrate your and share branded content.
• Customize promo&ons via individuals rather than masses.
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Marke&ng to the individual Search Marke&ng
Dated
• Bid on key search terms and pay cost per click.
New Marke+ng • Understand what you are
selling and use search terms to drive to specific content within your site and different homepages.
• Cost per targeted ac&on not cost per click.
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Marke&ng to the individual Customer Service
Dated
• 1-‐800# with phone tree – Please stay on the line a customer
service representa&ve will be with you shortly.
New Marke+ng • Customer Service on the
customers terms. – Twiler, Facebook, Website instant
chat pop-‐up.
• FAQ’s updated based on feedback from customer service people.
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al Marke&ng to the individual
CRM
Dated
• Customer signs up via website and receives emails which they usually ignore.
New Marke+ng • CRM based on providing value to
the individual not 2-‐4 segments. • Value has to be to consumers not
marketers.
• Don’t try to hard to sell
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Marke&ng to the individual TV (is it dead ?)
No
• TV is great for genera&ng awareness of new products but marketers have to move from a push message to an engagement strategy once awareness has reached a certain measurable point.
• There is very lille correla&on between awareness and conversion even though tradi&onal media companies and ad agencies would have you believe different.
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But too many impression can waste marke&ng dollars
• Progressive insurance spent over $200 million on the “Flo” marke&ng campaign and their market share went up 0.2%
• Progressive insurance considera&on rose 23% and its brand impressions rose by 18% ?
At some point you have to ask “can we beler spend the money to
convert customers than interrup&ng them again and again with the same
commercials ?
From
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al One more important thing…
• Execu+on on ALL consumer touch points has to exceed customer expecta+ons.
• If you screw up, ask for forgiveness and move on.
• View your marke+ng from a consumers point-‐of-‐view but ensure that it provides a ROI for your business objec+ves.
• Stay the course. Don’t let short term setbacks derail your marke+ng efforts.
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Customer excellence should be part of a company culture
• Create superior value for customers through deeper insights and solve their problems with your product.
• Create shareholder value through sustainable growth, enhanced margins, and a reduced risk of customer loss.
• Customer value is a star&ng point -‐ not the financial value of the customer to us, but the value you create for them.
From
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al About me
Richard Meyer My CV http://www.richardameyer.com My marketing BLOG http://www.richsblog.com MY DTC BLOG http://www.worldofdtcmarketing.com
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hlp://www.linkedin.com/in/richardameyer