The world has changed, but marketing is still applying the principles I learned in business school. This needs to change and this presentation is an "open source" call to help achieve this change. I have given it on April 23, 2009 in Helsinki at the F Word event. It is an unfinished piece of work in which we don't have all the answers either. So I invite you to join us at www.futurelab.net to help make it better.

1. FUTURELAB
THE ARCHITECTS
We assist
 Marketers to maximise the return
on their investments
 Innovators to create more
successful propositions.
 CEO’s to grow profits through
customer-centricity.
Special
Athens Some Credentials
Relationship
Brussels Astra Zeneca
Bucharest Deloitte
Hamburg Fortis Investments
Iasi Heineken
Gemalto
Kiev Hewlett Packard
Lexus
Moscow Lego
Philips
Shanghai Mobistar
Pireaus

2. FUTURELAB
DIGITAL EDITION
CHANGE MARKETING? YES WE CAN.

3. Flashback 2006:
I Am The Media
FUTURELAB

4. The traditional marketing
model is being challenged, and
(CMOs) can foresee a day
when it will no longer work.
McKinsey Quarterly, 2005, Number 2
FUTURELAB

5. 2009-2011
The End is Here
For many traditional mass-habits
FUTURELAB

6. FUTURELAB
US media fragmentation and the demise of the “big 3”
Over one-third of US consumers are watching TV shows online
Source: Deloitte – State of the Media Democracy Survey, 2008

7. FUTURELAB
TV Ads are being “tuned out”
DVR Growth by Region UK DVR owners who fast-forward the adverts
(millions of units) (% of recorded programmes)
Never ; 6%
Hardly
48.2
ever, 3%
About half
2008 the time, 7%
2013
9.4
8.6
Always &
1.1 almost
always; 88%
Europe West Europe East/ME
Source: Informa Telecoms & Media, Q4-2008
Source: Ofcom Research, February-March 2008

8. FUTURELAB
In Europe, Internet will soon be bigger than TV
European Internet vs. TV consumption
Hours/week
37% of french consumers
already listen to radio via the
internet (IT,UK,DE = ca. 1/3)
Internet usage on PC will
drop from 95% today to 50%
in 5 years time as people
switch to other methods
Source: Europe Logs On, Microsoft, April 2009

9. FUTURELAB
And it ain’t just the kids
Internet vs. real world population by age group
United States, December 2008
30%
26% % of total population
23% 22% % of internet population
20% 20%
13%13%
9% 9%
7%
4%
18-32 33-44 45-54 55-63 64-72 73+
Source: Pew Internet and Americal Life Project December 2008 Survey

10. The answer ... go socio-digital !!
FUTURELAB

11. FUTURELAB
After all, there is an ever expanding universe to play with
“The workers
should
appropriate
the means of
production”

12. FUTURELAB
And engagement goes deep ... very deep
84% of Germans under 30
would rather give up their car or
partner than live without internet
or mobile telephone.
Source: Bitkom study via Onlinekosten.de – March 2, 2009
72% of British male gamers
would avoid having sex for a
chance to try their hands on a
brand new PS3-game.
Source: PS3 Price Compare study, via Itproportal, March 3, 2009

13. The Sad Reality
Many digital
marketing herd
activities just don’t
cut it either ...
FUTURELAB

14. FUTURELAB
Different Channel, Same Problem
78% of consumers consider in-stream advertising as
“intrusive”. Half of viewers stop watching an online
video once they encounter an in-stream ad.
Source: Burstmedia, January 2008
29% of consumers leave a website that appears to be
cluttered with advertising.
Source: Burstmedia, December 2008
BANNER/AD BLINDNESS
Only 13% of UK consumers pay attention
to ads on social networking sites.
NEW !!
Source: Ebay Advertising, March 2009
TWITTER SPAM

15. FUTURELAB
Different Channel, Same Problem
Reality Check
What does this
mean for the
business???
“If I tell my Facebook friends about your brand, it’s not because
I like your brand, but because I like my friends.”
Mike Arauz

16. FUTURELAB
“Informed” consumers
are much less reliant
on advertising for
product information
Out of 20 media
company blogs are
“least trusted” sources
of information.
Consumer product
ratings/reviews are the
second most trusted
source.
(Forrester, Q2-2008
“The problem is not the [online] medium, the problem is the message, and the
fact that it is not trusted, not wanted, and not needed”
Eric Clemons

17. FUTURELAB
Across the board (including digital) ...
MarCom Needs A Reboot

18. Image: (c) Adambooth
The Core Issue
People who live near
train lines adjust to
the noise.
They do the same
with advertising.
FUTURELAB

19. FUTURELAB
STOP BEING NOISE
Also in the digital space
BRANDS HAVE TO

20. FUTURELAB
Imagine instead …
Getting consumers to embrace the message

21. FUTURELAB
• Harry Potter Books ( + 3000 pages)
• General Hospital (11,800 episodes)
• The Matrix
• Star Academy
• Fan Protest Save Jericho
It can be done • Harrypotterfanfiction.net (54,000 stories)
• Of Gods and Men

22. FUTURELAB
Talking about what YOU
want to say
Interrupting me
Treating me like any other
35-45 year old male

23. Relevance
Relevance
Engagement
€
Reputation Engagement
Reputation
AN OPEN SOURCE MODEL
FUTURELAB

24. Relevance
Relevance
Engagement
€
Reputation Engagement
Reputation
FUTURELAB

25. FUTURELAB
To make me pay attention, stop looking at yourself
BRAND-CENTRIC HUMAN-CENTRIC
COMMUNICATION PLANNING COMMUNICATION PLANNING
Starts from what the customers want to “hear”
Starts from what the brand wants to say and
how to efficiently get it to pre-defined and and being relevant to their
homogeneous audiences. situation, environment, interests and needs.

26. FUTURELAB
Illustrating the point
How to advertise at a busstop?

27. Brand/Media-Centric Communication Planning
You need to get extreme to get noticed
FUTURELAB

28. FUTURELAB
relevance = f(personality, need, situation)
Human Centric Communication Planning
What would this man want to hear?

29. Human Communication Planning
A World of Opportunity
I consume a massive amount of media every moment of my day … it’s just not yours.
But as a brand, there is no reason why you can’t change this.
Audio/Video Books & Mobile Social Story Busstop
Mobile
Podcasts Magazines Television Applications Posters Conversations
Games
FUTURELAB

30. FUTURELAB
relevance = f(personality, need, situation)
Also in digital/web
Don’t look at the box, look at the person

31. Project Battlecry: Challenge 1
Introduce Human-Centric Communication Planning
TODAY:
STRUCTURAL SOLUTION
Take your existing plan
Establish a “human driven” communication
and ask yourself
planning model
“what’s in it for the
customer to give me
his media-time?”
How can I make it
more relevant and
interesting?
And if you don’t
know, go into the street
and ask.
FUTURELAB

32. Relevance
Relevance
Engagement
€
Reputation Engagement
Reputation
FUTURELAB

33. FUTURELAB
Brands seek loyalty for life
Trust us - Engage with us - Become an Advocate - “Love Us”

34. FUTURELAB
• Seduce & Forget Campaigns
But in Reality they behave like a • Loyalty Scams
• The New Customer is Prettier
One Night Brand • Join This Week’s Community
• You are just a segment

35. FUTURELAB
After the lies, the forgetting, the disregard, the customer promiscuity
Would you still “engage”?

36. Project Battlecry: Challenge 2
Start Building Individual and Lasting Relationships
TODAY:
STRUCTURAL SOLUTION
For every of your
Shift from campaign based, mass-comms to life-
current
long personalised messages:
initiatives, validate how
customers can “really”
• Think microsegmentation or even individual
talk back (and who
customers
listens).
• Build customer life-time communication
Look at the explicit and
plans rather than campaigns
implicit promises you
• make, and check
Change your budget and people structure to
whether they are kept.
accomodate this changed reality.
Force your team and
business to “talk to the
customer” (cf. P&G
India).
FUTURELAB

37. Windfall: The Mass Market is an Illusion
Of 1,365 CPG brands studied
Only 2.5% of shoppers
made up 80% of Sales
Only 25 had a shopper base of over 10% driving
80% of their respective volume
FUTURELAB

38. Your windfall
Many CPG’s “could” know every customer
Imagine these figures travel to Finland
5,250,000 inhabitants
X 90% = 4,725,000 Shoppers
X 2.5% = 118,250 people representing 80% sales
FUTURELAB

39. Relevance
Relevance
Engagement
€
Reputation Engagement
Reputation
FUTURELAB

40. FUTURELAB
To Illustrate the value of a reputation
Imagine that I want to convince you of my skills as a lover.
ADVERTISING
DIRECT SALES BUILD A REPUTATION
www.greatlover.com
I’m a great lover ... He’s a *great* lover !!

41. FUTURELAB
It’s the same for any brand
% of people who trust companies less in 2009 than in 2008
Source: Edelman Trust Barometer, 2009
Nearly 70% of consumers
When it comes to company Word-of-Mouth is the #1
information, a “peer” is as surveyed thought that
influence on business-
pharmaceutical information from
credible as an industry to-business buying
peers was credible and
analyst and only decisions
preceeded by an “expert” believable, even if the peers
were not experts.
Source: Keller Fay, July 2008
Source: Edelman Trust Barometer, 2009 Source: Keller Fay, 2006

42. FUTURELAB
The value of a reputation
Show Me the Money !!
Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

43. Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company
How likely are you to recommend ?
0 1 2 3 4 5 6 7 8 9 10

44. FUTURELAB
Those who speak well about you are more profitable
Case: Lifetime customer value Customers that are so happy
they recommend are the most
Disguised
profitable of all…
€42,000
-They spend more
-They negotiate less
€ 9,000 -They stay longer
-They are easier to service
€ 3,000 -They upgrade quicker
-They bring their friends
Detractors Neutrals Promoters

45. Case in Point: Apple
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
FUTURELAB

46. Case in Point: Apple
Total Customer Value of an Apple advocate is almost twice that
of the industry average, mainly driven by referrals
FUTURELAB Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008

47. FUTURELAB
Above all, your reputation drives your profit
Share of Wallet (B2B-markets)
“at the point of delight, there is
an exponential increase in the
share of wallet”
Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf

48. FUTURELAB
Project Battlecry: Challenge 3
Focus on it
TODAY: RECESSION DIGITAL PLAN
Build a reputation
Prove to your business that reputation matters and
can help create or safeguard 2009 sales
Helping your business
create promoters by High
Nurture to promotion Nurture &
delighting them Leverage
Helping these
Share of Wallet
promoters spread the
word …
Build business
Abandon
Low
Low Customer Score or NPS High

49. Relevance
€
BATTLECRY Reputation Engagement
AN OPEN SOURCE MODEL
Relevance: Introduce human-centric communication planning
Engagement: Start building individual and lasting relations
Reputation: Use digital marketing to create/leverage promoters

50. In which we should recognise
that we are all addicted
IN STEAD OF WE THINK
Relevance Our Brand
Engagement Standardisation
Reputation Doing cool stuff
FUTURELAB

51. … and that we are hostages of our own
making
Media-centric planning & buying systems
“Big Idea” creative execution
Efficiency-driven compensation systems
“Mass”-based orthodoxy
FUTURELAB

52. FUTURELAB
Customer Centricity
Challenge your agencies – your business – yourself to
Profit
Help invent a new marketing reality Innovation

53. FUTURELAB
CHANGE MARKETING? YES WE CAN.
To contribute to the revolution, get in touch: ath@futurelab.net or @alain_thys