andreas weigend @aweigend
DESCRIPTION
Andreas Weigend @aweigend www.weigend.com. HSM World Marketing and Sales Forum The New Data Revolution: Impact on Marketing S trategy November 2010. In The Last Minute…. Who creates data? Production : Everybody. Data as digital air How will this data be shared? - PowerPoint PPT PresentationTRANSCRIPT
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Andreas Weigend@aweigend
www.weigend.com
HSM World Marketing and Sales ForumThe New Data Revolution:Impact on Marketing StrategyNovember 2010
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4,000,000 Web searches
500,000 Content shares
100,000 Product searches
40,000 Tweets created
40,000 Links shortened
In The Last Minute…
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Who creates data? Production: Everybody. Data as digital air
How will this data be shared? Distribution: Everybody is a contributor
What will this data be used for? Consumption: Help people make
decisions
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…bridging the physical and the digital
It’s about…
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Where Are Decisions Made?• Brick and mortar• Traditional media• Web• Mobile
Trust?One-way push vs two-way communication?
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Who Helps With Decision Making?
• Friends (people who like you)– Real life– Online
• Peers (people like you)• Experts
– Institution?– Past action? – Reputation/ brand as shortcut for
attention• Ad hoc groups (e.g., for car purchase)
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Social Data RevolutionHow the
Changes (Almost) Everything
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BuildingComputers
1970’s
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ConnectingComputers
1980’s
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ConnectingPages
1990’s
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ConnectingPeople
2000’s
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ConnectingSensors
2010’s
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Mobile Phones• Capture context and situation- Ambient sound, light- Geo-location (place, movement)
• Allow for lightweight interactions- Micro-tasks (annotating)
• Attached to a person
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Underlying?
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Biology: ~100k yrsSocial Norms: ~10 years
Data, Technology: ~1 year
Time Scales
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Creation / Production of Data The amount of data each person creates
doubles every 1.5 … 2 years• after five years x 10• after ten years x 100• after twenty years x 10000
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Track Movement Flows
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40 Billion RFID Tags Worldwide
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Instrumenting Cities – New York
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Distribution is now distributed
Distribution
Distribution has become social
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Social comments create distribution
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… personalizes any page
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• Attention• Cognition• Behavior change
Consumption
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Pay-as-you-drive car insurance (GPS)
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Monitors your excercise and sleep
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Fundamental Shift in Communication
One-way Two-way
Asynchronous SynchronousPlanning Interaction
List FlowPersistent Ephemeral
Private Public
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private public
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Web 0 Computers Web 1Pages
Web 2People
Web 0 Computers
E-businessCONSUME
Me-bizCREATE
We-bizSHARE
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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
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How do you know peoples’secret desires?
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Audience
C2B: Customer to BusinessC2CC2W
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…based on reviews
Goal: Help customers make decisions…
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Customers who bought this item also bought…
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Customers who viewed this item also viewed…
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Customers who viewed this item ultimately
bought…
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… based on clicks and purchases
Goal: Help customers make decisions…
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Combine implicit and explicit data
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Situation• Geo-
location• Device
Attention• Clicks,
Transactions
Intention• Search Connectio
n• Social
graph
User generated• Reviews
Sources of Data
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Case study: What data for targeting of a new phone product?
Connection data
• Who called who?
Traditional segmentation
• Demographics• Loyalty
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Connection data
Traditionalsegmentation
0.28%
Adoptionrate
1.35%
4.8x
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Company
Customers
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Audience
C2B: Customer to BusinessC2C: Customer to CustomerC2W
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Amazon.com Share the Love
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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)
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Or is information justan excuse for
communication?
Purpose of communication:to transmit information?
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Helping people make better decisions together
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Co-design, co-create, co-market
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Social graph targeting
Provide list of prospects
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Fraud reduction
Provide risk scores
Social network intelligence
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Audience
C2B: Customer to BusinessC2C: Customer to CustomersC2W: Customer to World
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Amazon.com: Public sharing of interests
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Consumers
- Engage- Share- Connect
3 times per week
Social Engagement Marketing (SEM)
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is a Broadcastnot a Conversation
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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
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Marketer-generated
awareconsider
buy useopinion
share
Consumer-generated
Funnel Megaphone
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2 mins
Explain to your neighbor what you do
2 mins
Have your neighbor suggest new data sources that might be useful
1 min Pick one of them and write it downSwitch roles
Exercise: What data for your marketing?
Talk to your neighbor. Total time: 2 x 4 = 10 mins
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Who Can You Get To Work For You?
100M Customers
100k Employees
100 Specialists
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• Reduce barriers for contribution
• Design incentives that work
Get Your Customers To Work For You!
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Where does product knowledge come from?
Case Study: Best Buy
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A useful framework
P-H-A-M-E
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P-H-A-M-E Problem Hypothesis Action Metrics Experiment
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P-H-A-M-E Problem Hypothesis Action Metrics Experiment
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P-H-A-M-E Problem Hypothesis Action Metrics Experiment
Action
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P-H-A-M-E Problem Hypothesis Action Metrics Experiment
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P-H-A-M-E Problem Hypothesis Action Metrics Experiment
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Power of Community
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Let Customers Solve Customers’ Problems
“Customer Service is the New Marketing”
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200k accepted FB event invite
400k viewed YouTube video
379 blog posts tied back to it
Viral buzz:26% increase
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World Economic Leaders Community
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Influencer Marketing?
Real life vs
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Market to influential people… … and then reach everyone else for free
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Real Life Facebook 38% ≥ 4 links 86% ≥ 4 links
1
23
4
Chain length
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2007 2008 2009 2010(est)0
100
200
300
400
500
Gilt Groupon
Revenues(US$ Millions)
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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:
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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
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Product
Customer
Brand
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From controlled production for the masses…
… to uncontrolled production by the masses
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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
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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
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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
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• InnovationInternal External
“Most smart people don’t work here.” Bill Joy
• DataCollect and analyze Create and share
• ExperimentsPush and pray Launch and learn
Summary
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Help Customers make BETTER DECISIONS
vs traditional push messaging
5 Maxims
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Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
vs. traditional segmentation
5 Maxims
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Help Customers make BETTER DECISIONS
Empower Customers to be INDIVIDUALS
Create Social PLAYGROUNDSvs. corporate marketing messages
5 Maxims
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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
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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
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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!
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@aweigend
Andreas Weigend | www.weigend.com
Thank you!
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Andreas Weigend@aweigend
www.weigend.com
Appendix
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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
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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 hass2009.wikispaces.com homework)
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Simple Things to Do and Learn (3):
Reverse Mentoring
Ideas generation, feedback AND engagement
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Facebook Questions
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Quora Answers
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Individuals Share
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Employers Share