Andreas Weigend @aweigen www.weigend.co e New Data Revolution: pact on Marketing Strategy M Lisbon, 18 November 2010
Feb 26, 2016
Andreas Weigend@aweigend
www.weigend.com
The New Data Revolution:Impact on Marketing StrategyHSM Lisbon, 18 November 2010
1. Help Customers make BETTER DECISIONS
2. Empower Customers to be INDIVIDUALS
3. Create Social PLAYGROUNDS 4. Use the MOBILE as a TWO-WAY Device5. ConteXt is King
What is above all of this?
Maxims for Marketing Strategy
Data = Digital Air
5,000,000 Web searches
500,000 Content shares
100,000 Product searches
50,000 Tweets created
In The Last Minute…
A. Production: Everybody creates data.
B. Distribution: Everybody shares data.
C. Consumption: Everybody uses data.
• The study of the consumer has changed
• The consumer has changed
Who Do Consumers Trust?• Experts
– Reputation based on traditional institutions?
– Past actions? Need for persistent identity
• Peers: People like you– Similar background and situation
• Friends: People who like you– Real life– Online
Social Data RevolutionHow the
Changes (Almost) Everything
BuildingComputers
1970’s
ConnectingComputers
1980’s
ConnectingPages
1990’s
ConnectingPeople
2000’s
ConnectingSensors
2010’s
Smartphones• Capture context and situation- Ambient sound, light- Geo-location (place, movement)
• Allow for lightweight interactions- Micro-tasks (annotating)
• Attached to a person
MM
Biology: ~100k yrs
Social Norms: ~10 years
Data, Technology: ~1 year
Time Scales
A. Creation / Production The amount of data a person creates
doubles every 1.5 … 2 years• after five years x 10• after ten years x 100• after twenty years x 10000
Consumers- Engage- Share- Connect
3 times per week
SEM: “Social Engagement Marketing”
Track Movement Flows
40 Billion RFID Tags Worldwide
Pay-as-you-drive car insurance (GPS)
Monitors your excercise and sleep
Instrumenting Cities – New York
18 Nov 2010San Francisco Mayor’s Office
Signing Ceremonyfor
Open Data Legislation
Distribution is now distributed
B. Distribution
Commenting Distribution
Attention
… personalizes any page
• Attention• Belonging• Conversation
C. Consumption
Fundamental Shift in Communication
One-way Two-way
Asynchronous Synchronous
Planning Interaction
List Flow
Private Public
private public
Identity?
Imagine...
You knew all the things people here have bought
... what would you do?
You knew all of their friends
You knew their secret desires
How do you know peoples’secret desires?
Audience
C2B: Customer to BusinessC2CC2W
B2B: Boring to Boring Lindstrom 2010
Customers who bought this item also bought…
Customers who viewed this item also viewed…
Customers who viewed this item ultimately
bought…
…based on reviews
Goal: Help customers make decisions…
… based on clicks and purchases
Goal: Help customers make decisions…
Combine implicit and explicit data
Situation• Geo-
location• Device
Attention• Clicks,
Transactions
Intention• Search Connectio
n• Social
graph
User generated• Reviews
Sources of Data
Case study: What data for targeting of a new phone product?
Connection data
• Who called who?
Traditional segmentation
• Demographics• Loyalty
Connection data
Traditionalsegmentation
0.28%
Adoptionrate
1.35%
4.8x
Company
Customers
Audience
C2B: Customer to BusinessC2C: Customer to CustomerC2W
Amazon.com Share the Love
Result: Amazing conversion rates
since customer chooses
Content (the item)
Context (she just bought that item)
Connection (she asked Amazon to email her friend)
Conversation (information as excuse for
communication)
Or is information justan excuse for
communication?
Purpose of communication:to transmit information?
Help customers make better decisions together
Co-design, co-create, co-market
Fraud reduction: Provide risk scores
Social network intelligence
Social graph targeting:Provide prospects
Audience
C2B: Customer to BusinessC2C: Customer to CustomersC2W: Customer to World
Amazon.com: Public sharing of interests
Direct mail campaign: $7,500 200 new customers
Billboard ad: $7,500 300 new customers
Tweeter: free shipping 1,800 new customers
@garyvee Wine Library
is a Broadcastnot a Conversation
Marketer-generated
awareconsider
buy useopinion
share
Consumer-generated
Funnel Megaphone
Where does product knowledge come from?
Case Study: Best Buy
Who Can You Get To Work For You?
100M Customers
100k Employees
100 Specialists
• Reduce barriers for contribution
• Design incentives that work
Get Your Customers To Work For You!
A useful framework
P-H-A-M-E
P-H-A-M-E Problem Hypothesis Action Metrics Experiment
P-H-A-M-E Problem Hypothesis Action Metrics Experiment
P-H-A-M-E Problem Hypothesis Action Metrics Experiment
Action
P-H-A-M-E Problem Hypothesis Action Metrics Experiment
P-H-A-M-E Problem Hypothesis Action Metrics Experiment
Power of Community
Let Customers Solve Customers’ Problems
“Customer Service is the New Marketing”
Influencer Marketing?
Real life vs
Market to influential people… … and then reach everyone else for free
Real Life Facebook 38% ≥ 4 links 86% ≥ 4 links
1
23
4
Chain length
2007 2008 2009 2010(est)0
100
200
300
400
500
Gilt Groupon
Revenues(US$ Millions)
Rooms to Avoid:
01, 21
08, 17
Rooms Ending in:
Possible Ice Machine / Elevator Noise
Limited View Rooms
Corner / Oversized Rooms:
04
24
Oversized, Corner Room, Quiet RoomOversized, Corner Room with North Times Square Views (Higher Floors are Preferred
Rooms Ending in:
Travelers share their intentions
to highlight where you’ve been,
to show where you’ve lived,
to share where you want to go.
Export your travel map to any Web page.
Edit your map once
Including your Facebook and MySpace profiles and blogs
to automatically update your exported maps everywhere
Sign in to export your map if you’re already a VirtualTourist member.
Click
Product
Customer
Brand
From controlled production for the masses…
… to uncontrolled production by the masses
o How have consumer expectations changed towards creating, sharing, accessing, and controlling data?
o o What benefits will customers expect in exchange to
permitting your company to use their data?
o Ultimately, how can you help people discover products and services, make better decisions, and subsequently participate in the value your customers create?
Consumer Expectations
Who talks to whom? Consumers to consumers
Who trusts whom?Shift from institutions to individuals
Who is in control? From e-business (company focus, Web 1.0)to me-business (customer focus , Web 2.0)to we-business (community focus , Web 3.0)
E Me We-Business
Who manages whom? Move from CRM to CMR (Customer Managed
Relationships)
Who pays whom? Design incentives for participation and interaction
Charge as much as you can Charge as little as you can?
Jeff Jarvis
Transaction economy Relationship economy Shoshana Zuboff
Monetization
• InnovationInternal External
“Most smart people don’t work here.” Bill Joy
• DataCollect and analyze Create and share
• ExperimentsPush and pray Launch and learn
Summary
Help Customers make BETTER DECISIONS
vs traditional push messaging
5 Maxims
Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
vs. traditional segmentation
5 Maxims
Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
Create Social PLAYGROUNDSvs. corporate marketing messages
5 Maxims
Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device
vs one-way push advertising
5 Maxims
Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device ConteXt is King
vs Content is King
5 Maxims
Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device ConteXt is King
5 Maxims
Thank you!
@aweigend
Andreas Weigend | www.weigend.com
Thank you!
Andreas Weigend@aweigend
www.weigend.com
Appendix
US 2009
Media consumption time (%)Advertising spending (%)
Simple Things to Do and Learn (1): Use RedLaser to understand
the power of bringing a vendor into consideration when user is shopping in a physical store
Use blippy.com: what is it? why do people do it? What do they get out of if?
Search box: Measure intention across channels, differences over time, in response to campaigns, difference between mobile and web
Simple Things to Do and Learn (2):
Search on Google for Brand: When did you last search for it? – this is what potential customers will see!
Facebook LIKE button: powerful reach into other sites, easy to integrate (Facebook connect). – we-business
Twitter: Engage with one person (see haas2009.wikispaces.com homework)
Simple Things to Do and Learn (3):
Reverse Mentoring
Ideas generation, feedback AND engagement
Facebook Questions
Quora Answers
Individuals Share
Employers Share