10 things to make you think
10 things to make you think
FUTURELAB
We are Futurelab
WE ARE FUTURELAB
We create new profit opportunities for our customers. Our innovations and methods allow:
•Marketers to become more effective & engaging.•Innovators to identify the next opportunity or niche.•CEO‘s to connect their business to the customer.
In the process, we challenge every barrier to business success. We dislike writing reports, billable hours or elaborate processes.
Instead, we prefer to "get on" with making money for your business.
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A flexible boutique: 2 partners – 3 support staff – 7 associates – 28 specialists/contributors
Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg – Hamburg – Moscow – Kiev - Munich - Shanghai
Priviliged Relationships
Futurelab Structure
Welcome to the Bolshoi
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•30,000 products in an average supermarket
•+600% new product introductions since 1994
•Average shopping time: 21 minutes
•Average products bought: 18
•80% of purchase decisions made in-store
•Average decision time: 2.5 seconds
•Shoppers only “see” half of the products available
Can you Make the Light Shine on Your Product?WHY BOTHER?
Source: G2 Shopper Marketing Survey, April 2008
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Crisis
Especially Now Times are Tough.WHY BOTHER?
Consumer Behaviours During a Recession Changes
Source: OgilvyOne, October 2008
Delay Purchases Plan Ahead
Service & Rewards Social Circling Save & Splurge
Deal Seeking
FUTURELAB
FUTURELAB RESEARCH
Case Study: the US market
In the last years, US consumers spent approximatively US $1 trillion on food, or almost 10% of the GDP.1 The pie chart above describes the consumers’ reactions to the current economic situation. With food prices going up (see previous slide), brands are now facing a harsh truth: customers are disloyal.
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FUTURELAB RESEARCH
Case Study: the US market
At the same time, consumer expectations have gone up, as shown in the above Accenture study. Compared to five years ago, 44% of US consumers surveyed have declared that they have higher customer service expectations. 23% have declared that their expectations have gone up since the last year. Furthermore, only 3% of consumers worldwide say that their CS expectations are always met. 10
FUTURELAB RESEARCH
Case Study: the US market
With the advent of new media and the ever-increasing awareness channels, US consumers now have increasingly higher expectations, with the CPG sector making no exception. Companies are now finding that issues such as sustainability, wellness and transparency are coming up more and more often. At the same time, the proven lack of effectiveness of traditional marketing methods is raising the stakes even higher. And, to top it all off, studies show that, even though companies are gathering huge amount of data about their customers, only a select few know how to interpret it properly.
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Unlimited Choice
perception
80% of CEO’s believe their brand provides a superior customer experience
8 % of their customers agree
(Bain & Company)FUTURELAB
How to make that light shine on you?
Your customers are not a database – and not a statistic
TRADITIONAL SEGMENTATION“Look at the numbers”
Elsa (Female/urban/mid-income)
CASE STUDY: 25-30 year olds
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Understand what truly drives your customers
INSIGHT
Understand the emotional needs of your customers
Most Marketers Don’t Really Know ...CHALLENGES/OPPORTUNITIES
QUESTIONWHEN DID YOU LAST “SPEAK” TO A SHOPPER? WORK IN A STORE?
P&G employees will need to get out of the office and talk with customers.
India
Everyone should do every job in the store at least once in his career.
FUTURELAB
Insights into Ideas
The Greek Consumer
FUTURELAB RESEARCH
Issues and challenges: lack of insight
Retailers focus mainly on collecting and tracking data about “purchasing behaviors,” “geographics,” and “demographics.” All in all, Most food retailers know the “what” of their customers—what they buy, purchasing frequency, etc. But few know the “why”.
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10 things to make you think
10 Insights to make you think – 10 Questions to ask yourself
“I am sick and tired of Marketers lies”
76% of consumers don’t believe that companies tell the truth in advertisements
Yankelowich,2006
Transparency
• WHY (simple numbers or other, simple, straightforward proof of this)
Transparency?
FUTURELAB RESEARCH
I&C: Transparency
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Transparency?
You are being watched….
FUTURELAB
SAB Miller: making a difference through beer
Page 12
Our key priorities Discouraging irresponsible drinking Making more beer but using less water Reducing our energy and carbon footprint Packaging, reuse and recycling Working towards zero-waste operations Building supply chains that reflect our own values and commitment Benefiting communities Contributing to the reduction of HIV/Aids Respecting human rights Transparency in reporting our progress
Source: http://www.sabmiller.com/NR/rdonlyres/B5B9E625-8661-47E4-9EB3-783C2D977036/0/SABMiller_SDR_2008.pdf
FUTURELAB COMMENT
Sustainability, CSR – do good and tell about it, in very straight forward ways. The ‘we employed this many people, and paid this much in taxes, etc” works well.Dont fall into the PR trap, but tell people what you do, and why you do it.
CSR
Transparency
It doesn’t have to be complicated….
Are your campaigns truthful?Does the brand experience match the promise?At every touchpoint?
Question: How transparent are we in dealing with out customers?
“ I don’t want to lose that connection to the
village, the old/real life”
32Local Food
Authenticity
Authenticity
33Your own private sheep…
DoleTraceability
Authenticity
Crop to CupTraceability
Authenticity
De KasAs authentic as it gets – self grown food restaurant
Authenticity
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Brewtopia - Custom branded beverages
Page 28
Since 2002, we've dedicated our tiny minds to customising Beer, Water & Wines online
You can now even create your own labels for delivery Worldwide
We have no minimum order, no setup charges and 100% money back guarantee on all products.
Source: http://www.blowfly.com.au/
FUTURELAB COMMENTHow about doing this yourself (in cooperation with a small printer with an entrepreneurial mindset)?Customised labels for parties, at an affordable price.Which 18-year old wouldnt love to have his personal bottles at his graduation or birthday party? How collectable would that make the bottles?
A great tool for engagement, collectability, and straight forward sales improvement.
Customization
Question:How authentic are we?
“The consumerism here is horrible – too many products, too much waste….”
Reduce waste and over-abundance
100 Calorie Packs
FUTURELAB RESEARCH
Future trends
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Reduce waste and over-abundance
Mini-packs
100 Calorie Packs
The ultimate give-away?
Show that you (really) care
FUTURELAB RESEARCH
Future trends
Functional food brand for pregnant women
A French company has developed a new line of food products for pregnant women. Dubbed Luna, the range consists of eight products made with organic ingredients, all aimed at ensuring women get the nutrients they need for a healthy pregnancy. Included are honey & sesame biscuits that are rich in iron, calcium, magnesium, phosphorus and fibre; and a herbal infusion that promotes healthy circulation.
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FUTURELAB RESEARCH
Future trends
Organic fast food - OBurger in Los Angeles
Los Angeles-based OBurger is out to show consumers that organic, healthy fast food can be just as convenient as more calorie-clogging fast food options.
The 100% organic menu is equally dedicated to the organic and sustainable cause.
Besides that, the logistics alone at OBurger are an impressive feat in restaurant innovation. They use non-toxic cleaning supplies and packaging that is recyclable, compostable or biodegradable.
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Question: How can we (im)prove our green credentials?
“I want you to really listen to me, understand me, engage with me”
Engage in the conversation – Buzz, WoM
• People want to have a conversation, not just being yelled at
• People trust people
FUTURELAB
33%
61%55%51%
2003 2004 2005 2006
A person like yourself or a peer
Edelman Trust Barometer 2006
When forming an opinion of a company, how credible would the information be from …
%
Academic 62
Doctor or similar 62
Person like yourself/peer 61Financial Analyst 58
NGO Rep 58
Accountant 53
Lawyer 36
Regular employee 33
CEO 29
Union 19
Entertainer 17
PR person 16
Blogger 15
People Still Trust Humans
Cosmetic concerns
‘Help us choose’
Start Listening
Listen in – and engage in the conversation!
Engage in the conversation!
Check yourself out regularly
And listen for the nasty bits….
And listen for the nasty bits….
Open your eyes
FUTURELAB
FUTURELAB RESEARCH
Future trends
Wine tastings via Twitter
Bin Ends, which was started up earlier this year, is now gearing up for its second Twitter Taste Live, which will be held this Thursday—the first one was in July. The project aims to give wine enthusiasts around the globe a chance to join the world's top wine personalities online for tastings via the popular social networking tool Twitter.
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Question: Are we having a conversation?
Find your existing communities
1 year: 100.000 registered customers Now: 2,800,000 registered customers
Enable your community
Quickbooks – the best example
Provide them with the right tools
FUTURELAB RESEARCH
Trends: Biocitizens
“Biocitizens” are people who join social networks (online or in person) based on shared health interests. They organize around disease management or chronic conditions; wellness practices like exercise, parenting, or aging; or environmental health concerns. These new collectives are generating, collecting, and sharing information, and they are becoming authorities in their own right. Their influence on the marketplace is increasing: As shoppers, we consult these social networks about healthy purchasing decisions ranging from food to deodorants to cleaning products; as consumers, we leverage them to demand a voice—not just a choice—in the products we are offered. Food retailers need to be aware of the networks operating around them, and alert to opportunities that help shoppers connect to each other.
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FUTURELAB RESEARCH
Trends: Biocitizens
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FUTURELAB RESEARCH
Trends: Biocitizens
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FUTURELAB RESEARCH
Trends: Biocitizens
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FUTURELAB RESEARCH
Trends: Biocitizens
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A community site for every café?
The largest virtual world on the planet in less than a year
April 2007: beta launch
June 2007: 3,000,000 users
July 2008: 15,000,000 users
The ultimate community connect
Facebook connect – recycle the community
Question: Are we fishing where the fish are?
“It’s all about my parea”
Empower the Tribal Leaders
Let them do your work
Create a movement
FUTURELAB
BeerBankroll Others are taking the idea of crowdsouring a step further. Including US based brewery called BeerBankroll, who are experimenting with involving the community to fund and manage their company. How do they do it? The first step is the Crowdfunding. Beerbankroll are recruiting members (50,000 to start with), who will contribute $US 50 to get the project up and running. Once BeerBankroll has raised $100,000, the Crowdmanaging kicks in. The BeerBankroll community will then be involved in actively running the business. Members can submit product ideas and vote on management decisions. They can have a say in everything from the brand name, company logo, product design, product mix, marketing plan, advertising and sponsorship. The company profits are then divided by three: One third is paid to members. One third goes back to the company. One third goes to charity. If the experiment works, BeerBankroll will have an army of 50,000 beer drinking brand evangelists to help them spread the word.
Source: http://digitaljury.wordpress.com/2008/07/03/crowdsourcing-for-beer/
FUTURELAB COMMENTWe see more and more of these crowd-finance projects – from movies to footballclubs, to, indeed, micro-breweries.
While this of course does not work for your direct businessmodel, how about applying these principles to social projects?A joint undertaking by all Amstel drinkers of Greece to raise E250.000 for a social business in Botswana, that then will be managed jointly?
An endless stream of PR and engagement with the consumers, and unleashing an army of promoters onto the market.
Crowd Finance
Question: Do I know what ‘tribes’ I can
connect to?
“I just love your products – and I would love to become involved. I actually have some good ideas!”
Let them improve your products
Let them build their own
Let them promote them
Or even innovate for you
Or even innovate for you
Finally, let them create your advertising
Finally, let them create your advertising
Question: Do we involve our fans enough?
“None of my staff I can really trust – what if I get sick? Who runs the company?”
What could you do?
Create a support mechanism. Re-engage the wisdom of the retired
Question: Do we understand the human issues of our channel partners?
And finally…the most important question of all!
WHYFUTURELAB
FUTURELAB
“Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities."
Jim Stengel, Global Marketing Officer P&G
Advertising Myths1. Frequency is not a driver
for action2. There is no golden rule
about OTS
Advertising is a tax you pay for unremarkable thinkingRobert Stephens,
CEO, the Geek Squad
Watch TV30%
Listen to Radio29%
Use the Internet
23%
Read News-papers
10%
Read Magazines
8%
Media Consumption Europe – 2006
% of total media consumption time
Share of total adspend by medium (global) % 2008 forecast (March 2008)
What’s wrong with these numbers?
Most influential information sources in purchasing electronic goods? (TOP 3)
CM
O C
ounc
il’s
Ret
ail F
luen
cy R
epor
t, 20
05
Newspaper Coupons 25
Internet 21
Product/Company Information 16
Retailer information 14
Other 14
Magazines 4
TV 4
Radio 3
FUTURELAB
Source %
In-store Sales Associate 49
In-store demonstration 36
Word-of-mouth from family & friends
33
Even more wrong….
Share of total adspend by medium (global) % 2008 forecast (March 2008)
39.6
4.7
29.5
12.7 13.5
47.7
32.4
13.8
6.10.06
0
10
20
30
40
50
60
tv newspaper radio internet games
Media Usage %
Advertising Spend %
More wrong numbers
£300 vs £40MM
How about this for budget efficiency?
Spend my budget on WHAT!?
Get a fresh perspective on your budget
Get the store staff on your side Invest in the call centre Simplify the form....
WHY?
And most importantly – focus on word of mouth –
because Humans trust humans
% of people that are more likely to believe what they see, read or hear about a company if someone they know has already mentioned it.
Source: Edelman Trust Barometer 2008
• In Brazil, Canada, Germany, The Netherlands, Spain , Sweden and the US, “ a person like me” is the most credible source of information about a company
• 84% of opinion leaders 35-64 recommend companies that they trust to people they know. 37% write “emails of support”.
• 78% share their negative company opinions with others. 44% write emails complaining to the media, a politician or an official third-party
RECOMMENDATIONS MATTER
The Power of Recommendation
The Power of Recommendation
Word-of-mouth is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertisingMarketing Science Institute, 2006
1967 1983 2001 20071955
This is not exactly news....
0 1 2 3 4 5 6 7 8 9 10
Extremely unlikely
Extremely likely
NPS™= (Promoters-Detractors)/Total
DETRACTORS PROMOTERSPASSIVES
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
HOW LIKELY ARE YOU TO RECOMMEND?
The Power of Recommendation
Promoters make you more money-They spend more-They negotiate less-They stay longer-They are easier to service-They upgrade quicker-...Slide: Bain & Company, official NPS(tm) presentation Fred Reichheld.
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
The Power of Recommendation
This works for almost every industry
The Power of Recommendation
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Brands that built themselves with little or no traditional “advertising”
Most advertising agencies
e.g. Oxford Street, London
11 million passers-by a year(€ 4500/$5500 sq/m)
Or at € 2,000,000 p.a. budgetA CPM of € 18 or lower
Depending on
-Your product & service- On-site revenues- Marketing objectives
The numbers may add up
Or on a more modest level = the media value of your POP materials can be very highIt is also measurable
®
®
®
®
And something completely different:Retail as a Medium
No, it’s not...
• Traditional compensation & other systems stand in the way• Creative and media work in isolation• Lack of experience with new media (not everyone went
“dot-com”)• Venturing into uncharted territory = risky (even on a
personal level)• Nobody really knows how things will evolve
Who will be the First Penguin?
Where ARE the orcas?
Download an extended version of this presentation and a digital
handout at:Futurelab.net/FB
Read more on our blog at:Blog.futurelab.net
The Element of Surprise
If you want to know more about how to find true insights in the emotional needs of your target audience, and how to turn these into winning propositions and profit opportunities, give us a buzz
Helena [email protected]+30 210 72 60 600
www.tns-global.com
TNS ICAP Futurelab Greece
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Futurelab
Milton [email protected] +30 210 72 60 600
www.futurelab.net
Stefan [email protected] +32 473 888 996
www.futurelab.net
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