Prof. Dr. Ralf Kreutzer - Marketing as a Service

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Marketing as a Service:Privacy and One-to-One Solutions

Two sides of the same coin

Prof. Dr. Ralf T. KreutzerBerlin School of Economics and Law

Prof. Dr. Ralf T. Kreutzer

Crucial starting points on the customers‘ side: huge expectations!

Everything

Ever

ywhe

re

Me

Immediately

Customer


What does it mean for us?

Everything wide product range good quality low prices good service

Everywhere independent of time independent of

space

Immediately direct contact fast transactions short response times

Me appreciation as a must high individualization

expected permission-based approach if information is that

important …


Speed has become critical success factor!

disinterest

irritation

inquiry

research of potential

providers and their offers

1 2 3time in hours/days/weeks

motivation

frustration

Emergence of the“instant customer“


Speed has become a critical success factor!

Santiago Campillo-Lundbeck, Horizont 25/2012, p. 18; study in Germany, Camelot Management Consultants, n = 100 managers, multiple answers possible

establishment of digital marketing departments

change of decision-making routines

emergence of new KPIs to measure digital marketing ROI

more frequent adaption of communication content

individualization of communication

increased speed of communication

24

24

33

38

75

90

In your opinion, what are the biggest changes in marketing caused by the Internet?


Information overload of target persons in communication

1-2%


How to overcome the information filter?

Relevance

Positioning


Are we able to deliver “relevance“ for our customers?

Approaches to achieve “uniqueness“ – a trigger for “relevance“

Unique SellingProposition

Unique AdvertisingProposition

Unique PassionProposition


Two important questions have to be answered!

Are we able to fulfill the expectations of all our (potential) customers?

No!

What do we need to fulfill – at least – the most important expectations of our customers?

Data!


What kind of data do we need?

purchasing behavior

lifestyle informationareas of interest

preferred buying channels

favoured sources of information

buying power

favorite brandsrelationships – marital status/friends

lifecycle

intentions

dreamshope

s

fears


Which is the most relevant source to get this kind of data?

The customer


What‘s the precondition to get data from our customers?

Trust


Trust is the (new) currency in marketing and management!

Do we deserve the trustof our customers?


Do we know whether and where we generate „trust“?

- Have we ever identified all the touch points of our customers?



- Have we ever measured the impact of this large variety of touch points on

the customer experience with our company and our services – and

especially the emergence of “trust”?



- Do we really know what our employees are doing at face-to-face touch

points – e. g. based on mystery shopping, mystery calling, mystery dining?


Food for thought!

Have we ever thought of changing

customer touch points to

customer trust points?


1. Imperative!

We should exploit the room for improvement

in our customer touch or – much better –

customer trust point management!


Marketing was yesterday – today it‘s about service!

Our competitors can copy more or less all our marketing activities!



Our competitor can‘t copy the relationship between our company – and especially our employees – and our customers!



And the linking pin between our customers and our company is based on service.

Therefore be prepared for a little shift!


Marketing and communication mentality – old school!

“One-to-mass“ or “one-to-many“ communication approach!

Company Customers


Marketing and communication mentality – new school!

The customer becomes the “Master of Communication“!

CompanyCustomers


Food for thought!

Why don´t we use Facebookmore intensively to listen

to our customers–

instead of shouting at them?

A convincing example for realtime monitoring and targeting!

„Wow, I need vacation“









This guiding principle gains more and more relevance!

ListenLearn

Act

Control


Service mentality – old school!

“One-to-mass“ or “one-to-many“ service approach!

Company Customers


Service mentality – new school!

The customer becomes the “Master of Service“!

CompanyCustomers


What the „Master of Service“ could expect!


„Masters of Service“ generate crowdservice!


Fulfill the undisclosed demands of your customers!

Social Seating


Do we have to change key terms in marketing?

Customer Relationship Management

Customer Managed Relationship

Erich Joachimsthaler, Berlin, 2012


2. Imperative!

We have to check whether our organization is fit to “welcome“ the

“Masters of Communication“

and the

“Masters of Service“!


There´s also a new definition of ROI concerning these developments!

Risk of Ignorance


Coping with these challenges requires much more information!

Background: ”law of disproportionalities of information”

- The more information we have about consumers, decision-makers, or

companies, the more tailored services we can develop.

- I. e., we need more information on customers’ interests and needs in order

to provide them with less, but more relevant information.


Therefore we – and our customers – have to obey a new equation!

Less privacy

More(relevant)

one-to-oneoffers

Trust


This could lead to …

A learning relationship!

Don Peppers/Martha Rogers, Managing Customer Relationships, 2011; Don Peppers/Martha Rogers, Extreme Trust, 2012

A trusting relationship!


Trust “in the eyes of our customers“ requires …

The unified view of themulti-dimensional customer!


3. Imperative!

We have to teach our customers the equation “less privacy“ for “more relevant services“.

We have to provide our employees at the customer trust points with the necessary information to generate trust and a one-to-one service experience!

We have to create the data-based “unified view of the multi-dimensional customer“!

Serviceexcellence


Our overall challenge: creation of a passion-driven “service excellence turbine“

Implemen-tation

Innovation manage-

ment

Unified view

Multichannel

Integrated communi-

cation

Customer retention

Customer proximity

Employee inte-

grationAnalysis of status quo

WithPassion

Marketingstatus quo


Are our employees prepared for this change? Remember: all business is people business!

Jens Hartmann, Employer Branding, 2011


Is our organization prepared for this change?How do we organize the responsibility for customer relationships?

CFO CEO CPO

Relationship Manager Community Manager



CFO CEO CPO

Community Task Force



“Commissaryfor cordiality“



CFO CEO CPO

What about the position of aCCO – Chief Community Officer

or aCEO – Chief Experience Officer

when customer relations are the key to success?


Remember: Digital change has to be managed carefully!

Santiago Campillo-Lundbeck, Horizont 25/2012, p. 18; study in Germany, Camelot Management Consultants, n = 100 managers, multiple answers possible

virtual sales channel constitutes a threat for established channels

concept is too focused and isolated

digital strategy was formulated sequentially

generation gap among employees only allows for evolution instead of revolution

lacking expertise to connect mobile platforms with ERP software of the company

historically grown IT landscape constrains integrated concepts

need to acquire new skills

9

9

14

28

43

43

81

Which challenges constrain your digital strategy?


But remember: It‘s easier to kill an organization than to change it!

CEO (Chief Executive Officer)

CDO (Chief Destruction Officer)

Tom Peters, The Circle of Innovation


With Galileo Galilei we can state:

Are we ready to move with it?

“And yet it moves!“


Thank you for your attention!

Prof. Dr. Ralf T. KreutzerMarketing and Management ConsultantBerlin School of Economy and LawBadensche Str. 50-5110825 Berlin

[email protected]

Prof. Dr. Ralf Kreutzer - Marketing as a Service

Business

don peppersmartha

multiple answers

camelot management

critical success

touch points

customer relationships

dimensional

horizont 252012