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How to: Digital Transformation for Marketing

Everybody talks about Digital Transformation and Digital Disruption and the impact on Marketing. Marketing needs to find new ways to interact, sure. But do digital transformation of marketing and digital marketing even exist? Not sure! Whatever, you still need to get ready for new technologies like Voice. And you should do it fast.

Thorsten Sachtje (Senior Consultant Digital Strategy @ metapeople - Part of Artefact) held this presentation as part of a 1,5 hour lecture to Marketing Management BSc students of Ruhr University Bochum (Germany) on June 7th, 2018.

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How to: Digital Transformation for Marketing

  1. 1. &Digital Transformation for Marketing Marketing Management (BSc, English), 07.06.2018 How to:
  2. 2. Sr Consultant Digital Strategy Thorsten Sachtje metapeople • Strong background in Marketing Strategy and Customer Management • Diplom-Kaufmann • @tsachtje We are metapeople. Marketing Engineers. 2
  3. 3. Netherlands 30 Employees Switzerland 10 Employees Dubai 30 Employees South Africa 15 Employees APAC 10 Employees France 250 Employees UK 160 Employees Italy 15 Employees Spain 30 Employees Germany 190 Employees Nordics 55 Employees China 70 Employees Company Presentation Our Network 3
  4. 4. Company Presentation Unsere Dienstleistungen 4
  5. 5. A squad operating on all marketing needs Technologies Our highly accredited experts have 20 years experience in leading award- winning global digital marketing campaigns. Business oriented, data raised, digital native, marketing minded and IT trained unicorns, they live to put together the perfect team of our in- house talents. First class data experts from the largest pool of giant tech certified marketing data scientists in France. Our Full-stack Engineers will set-up end to end DataLake, with the right trade-off between speed and reversibility AI specialists with PhDs in Machine Learning developing unique proprietary solutions to fit our clients’ needs and optimise in-house processes. Media & Activation Creation DataLake Ecosystem Artificial IntelligenceStrategic Consulting Data Science Award-winning creatives, able to design concepts from branding to performance based on data. Marketing Consulting
  6. 6. Company Presentation Our References
  7. 7. „ My goal with this presentation: make you understand that companies need to rethink the way they interact with customers. “ Thorsten Sachtje Senior Consultant Digital Strategy @ metapeople 7 • @tsachtje
  8. 8. 8 Setting the scene
  9. 9. Thermostat 9 Who are you? • @tsachtjeSource: Nest, Pollin Electronic. Thermometer
  10. 10. Creative Distruction Process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. Joseph Schumpeter Political Economist (1883 - 1950) in „Capitalism, Socialism, and Democracy“ (1942) 10 • @tsachtje
  11. 11. 11 Creative Destruction is accelerating • @tsachtjeSource: Innosight, 2018.
  12. 12. 12 The way out of Digital Disruption: Dual Transformation • @tsachtje Daily Business Future Business Source: Following Innosight, April 2017.
  13. 13. 13 The way out of Digital Disruption: Dual Transformation • @tsachtje Daily Business Future Business Source: Following Innosight, April 2017.
  14. 14. Guiding the customer 14 Inbox Ad Logout Video Native Ad Google Search Facebook Instagram Ad Alexa Query Chatbot Support • @tsachtje
  15. 15. „ It is not about ‚digital marketing‘, it is about marketing effectively in a digital world. “ Ivan Mezenes CEO @ Diageo 15 • @tsachtje
  16. 16. Product . Price . Place . Promotion Marketing has not changed! 16
  17. 17. Unsere Dienstleistungen 17 Right Product: The one I like! Analyze Data e.g. data insights from website analytics, SEO, SEA, Facebook, … Target People • @tsachtje „ The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. “ Peter Drucker (1909 - 2005), Management Thinker e.g. via Retargeting, Programmatic, Lookalikes, …
  18. 18. German Army 18 Decline in number of troops from 198.000 (2013) to 179.000 (2017). Missing recruits in IT, engineering, medical care. Increasing budget for employer branding: 35.3 m €. Snapchat … and Facebook … and Social TV via Youtube … and Chatbot on Facebook Messenger Reach & Engagement Audience / Target Group: age 17 – 25. On Snapchat: 2.1 m unique filter users 7.5 m filter impressions 15.1 m ad impressions Right Place: Where my attention is! + • @tsachtjeSource: W&V, October 2017 and March 2018.
  19. 19. Google? Amazon? YouTube? LinkedIn? Pinterest? Others? Where do you search today? 19 Search Engine of Choice • @tsachtjeSource: Survata, 2017.
  20. 20. 20 Right Time: When I want it! Source: Google, May 2016. Micro Moments and Moments of Truth: Be there when it matters! • @tsachtje
  21. 21. 21 I want to buy! How do I get it right now? Source: Google, May 2014. ? Local Search: Consumers search for a variety of local information: Research Online, Purchase Offline (ROPO): Consumers would buy in-store instead of online knowing they: • @tsachtje
  22. 22. Consumer Behaviour & Technology change all the time! 22
  23. 23. … and so needs Customer Interaction! 23
  24. 24. „ We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. “ Bill Gates Founder @ Microsoft 24 • @tsachtje
  25. 25. Established in 2016 (US). Budgets shift. 25 Digital first. • @tsachtje
  26. 26. Established in 2016 (globally). … but not everywhere yet 26 Mobile first. • @tsachtjeSource: StatCounter, November 2016.
  27. 27. Established in 2015 (globally). Messenger: 3 out of Top 5. Facebook: 4 out of Top 5. 27 Messenger first. Facebook, Twitter, LinkedIn, Instagram WhatsApp, Facebook Messenger, WeChat, Viber • @tsachtje
  28. 28. „ If you think about it, all computer interfaces have been designed for communication with the computer, not with humans. “ Werner Vogels Chief Technology Officer @ Amazon 28 • @tsachtje
  29. 29. Coding a brand’s voice pioneering Google Home Major French retail chain Not only did the recommendation algorithm work beyond our expectations but marketers were amazed by the brand’s voice capturing Monoprix’s very own style. As Monoprix aimed to pioneer Google Home services, we gathered data scientists and creatives to identify a valuable use case. They came up with the idea of a predictive shopping list. Yes, please curry on! I think I know what you need: tomatoes !! Add curry to my grocery list Did I forget something ?
  30. 30. Source: *Voice Labs 2017 Voice Report, January 2017. Next: Voice First as the new standard? • @tsachtje * 30
  31. 31. „ 20% of mobile queries are voice searches. “ Sundar Pichai CEO @ Google Google I/0 2016 31 • @tsachtje
  32. 32. 32 Voice Devices are gaining traction … Echo Spot Echo connect Echo Show Home mini Home Max Assistant Siri Alexa HomePod June 2015 Nov 2016 Echo Dot October 2017 Cortana 9 3 2 1 # Products Invoke December 2017 Echo plus July 2017 Echo Look Echo Buttons Echo 2nd gen. March 2016 April 2017 Google Home 4 devices in 2 years 10 devices in 6 months Echo 2011 Siri • @tsachtje
  33. 33. 33 … and the Voice race is on • @tsachtje Alexa Cortana Assistant Siri
  34. 34. Source: Barclays Connected Home / Ovum Digital Consumer Insights 2017: Smart Living Google Assistant Most common Virtual Assistant Amazon Echo Devices Biggest market share in Voice Devices • @tsachtje 34 The question is: who wins the race?
  35. 35. 35 Amazon Strategy 101 Source: CB Insights, January 2018. • @tsachtje Amazon‘s goal: „Earth‘s Biggest Store“
  36. 36. „ If you make things easier, people will do more of it. “ Jeff Bezos Founder/CEO @ Amazon 36 • @tsachtje
  37. 37. 37 Frictionless Interaction • @tsachtje #1 CES 2017 Quote: „It works with Alexa“ Source: CB Insights, January 2018.
  38. 38. „ Alexa is primarily about identifying tasks in the household that would be improved by voice. “ Jeff Bezos Founder/CEO @ Amazon February 2017 38 • @tsachtje
  39. 39. 39 Why Retail needs a Voice Strategy • @tsachtje Search keywords: toaster Search keywords: WMF toaster No Amazon‘s Choice option? Top ranked on
  40. 40. Clothing, Shoes & Jewelry 206 Collective 7Goals A for Awesome Amazon Essentials Arabella Buttoned Down Cable Stitch Camp Moonlight Clifton Heritage Coastal Blue Comfort Denim Outfitters Core 10 Crafted Collar Daily Ritual … Denim Bloom Emma Riley 40 Source: Recode, April 2018. The underlying issue • @tsachtje David Kahan, CEO of Birkenstock: „Birkenstock does NOT sell [via] Amazon“. Amazon Private-Label Brands:
  41. 41. Thermostat 41 Not GAFAx? Digital Transformation needed! • @tsachtjeSource: Pollin Electronic, Xiami, Nest. Thermometer
  42. 42. Thank you
  43. 43. Dein Einstieg ins Digital Marketing bei metapeople Studentische Aushilfe Trainee-Programm ▪ Unbefristete Anstellung ▪ 6 Monate Training- on-the-job im Fachbereich ▪ Kanalübergreifende Schulungen Keine Ahnung, welcher Bereich zu dir passt? Lass dich von uns individuell beraten. Termine gibt’s bei hr@metapeople.com Aktuelle Stellen: www.metapeople.com/karriere
  44. 44. Questions?

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