Download - Marketing tsunami
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The Marke)ng Tsunami The wave of changes in marke)ng in an era of empowered
consumers
Rich Meyer Online Strategic Solu)ons
November 2010
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What is the Marke)ng Tsunami ?
SWEEPING CHANGE: • CHANGE IN CONSUMERS • CHANGE IN THE WAY OF
THINKING ABOUT CONSUMERS • CHANGE IN THE WAY
CONSUMERS THINK ABOUT BRANDS
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Changes like frugal consumers
• A new poll from Harris indicates that consumers, in general, are willing to make do with less stuff and save money.
• Over the past six months, three in five U.S. adults (62%) have purchased more generic brands.
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And changes in trusted media
• Consumers have a unified voices via social media.
• Consumers trust each other more than adver)sers.
• Consumers don’t want to be sold.
• Consumers expect more from brands and they are willing to pay for it.
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Think it’s just a temporary thing ?
Key sta)s)cs from the 2010 American Pantry Study: • 93% expect to con)nue spending cau)ously even
when the economy improves • 92% have made some kind of change in their
pantry-‐related shopping habits • 89% feel they have become more resourceful
because of the economy • 84% have become a lot more precise in what they
buy • 81% find it fun to see how much they can save
with coupons or loyalty cards • 55% of those cu_ng back suffered no decline in
income, but simply felt they “should be” cu_ng back
Source: The 2010 American Pantry Study, Deloi:e KnowledgeCo LLC and Harrison Group
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Less than 50% of shoppers report purchasing the brand they want most
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Then there is the change from passive consumers to empowered consumers
Welcome to the era of the empowered consumer, in which companies are challenged to adapt and innovate in a diverse any)me-‐anywhere (and oden
free) world
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Part of being empowered is sharing recommenda)ons on brands
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Some brands believe that social media is the answer but
Unlike adver)sing, Social Media can't save a bad product or service. • Social Media is the last thing you should be doing if...
– The majority of people have nothing nice to say about your brand. – Your customer service center is over-‐worked with complaints and
issues. – Your current brand strategy revolves around trying to make your
products sound beger than they are. – You really don't care about customers and only care about selling. – You don't have the )me, passion and/or commitment to do Social
Media with transparency, credibility and authen)city.
Social Media won't save a bad brand. It will only shine a brighter light on your brands flaws and shorQalls
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A great example: “Liking” a brand on Facebook = digital bumper s)cking
• Facebook fan pages are not magic marke)ng po)ons.
• People “like” companies with which they’ve transacted.
• Why would you become a fan of something you’ve never experienced?
• ExactTarget’s research on “Facebook X-‐Factors” shows that only 30% of Facebook “likers” believe clicking “like” equates to “giving the company permission to market to me”.
• Facebook “likes” is the most dispropor)onately important metric ever devised in marke)ng.
• Remember, the goal isn’t to be good at Facebook. The goal is to be good at business because of Facebook.
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So what does it all mean ?
With consumers undoubtedly in control, companies need to step away from tradi)onal
business models and collaborate in new ways especially with their
customers.
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And expecta)ons for marke)ng have never been higher
• Expecta)ons for marke)ng has never been higher at a )me when the challenges have never been greater.
• Majority of marketers said they expect to see either ligle to no growth in their budgets or an actual decline. That squeeze comes at a )me when marke)ng organiza)ons must transform themselves to target empowered consumers.
• Three in five execs believe the marke)ng func)on will "fundamentally change during the next five years" because of the bagering consumers have taken in the economic downturn.
Accenture survey, 2010
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However with new challenges comes more opportunity
Marketers must meet today's challenges with laser-‐focused precision that is guided by insights from robust customer analy)cs capabili)es. For example, women crave targeted ads as long as they provide something of value and
pertain to her individual lifestyle. 19 percent of women "want" brands to get to know them beger.
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Change your fundamental marke)ng beliefs
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1. Know your customers beger than they know themselves
• Collect data and mine it for ac)onable insights.
• Develop a business model to leverage consumer insights.
• Use social media to listen to the pulse of the market.
• Micro target consumers via offers/informa)on that is relevant to them.
• An)cipate their needs & solve their problems.
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2. Ensure that every customer touch point is an excellent brand experience
• Exceed customer expecta)ons at every touch point.
• Reward your most loyal customers. • Look at everything from packaging
to customer service. • Look at your product/brand as a
customer not a marketer. • Listen to what your customers want,
need.
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3. Use emo)on to connect with consumers
• 15% of decision making is ra)onal 85 % of decision making is emo)onal.
• Brands don’t segment consumers — consumers segment brands
• Use ideas that connect with sensory touch points, transform consumers emo)onally, and deliver memorable, sensuous experiences
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4. Keep improving customer service
CONSUMERS WILL PAY MORE FOR A GREAT CUSTOMER EXPERIENCE • Research shows that a great experience
not only influences where they chose to buy… – 55% became a customer of a company
because of their reputa)on for great customer service.
– 40% began purchasing from a compe))ve brand simply because of their reputa)on for great customer service.
• …but also how much they chose to spend! 85% of consumers said they would be willing to pay more over the standard price in order to ensure a superior customer experience.
*SourceRight Now survey was conducted online within the United States between June 30-‐July 2, 2010 among 2,217 adults.
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5. Align business processes around consumers and customers
• Having the best data in the world doesn’t mean a damn thing if it’s not ac)onable.
• Develop business processes to ask; – What does this mean ? – What is this telling us ? – How can we leverage this into
our current marke)ng ?
• Implement with speed
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6. Ask yourself “what are we really selling ?
• How does our product/brand appeal to consumers emo)ons ?
• How does it make them feel beger ? • What problem(s) does it solve ? • How can we make every customer
feel as though they are important to us ?
Starbucks has regained its markeJng voice invesJng in customer service and a be:er product and
customers have noJced but more importantly the brand is growing again.
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7. Listen more, sell less
• Consumers don’t want to be sold today.
• They want brands to listen and acknowledge their ques)ons & needs.
• Answer customers ques)ons, complaints, sugges)ons, in Internet )me.
• Use social media to listen, it provide a treasure’s worth of market and customer informa)on.
• Make sure you have people who can translate customer feedback into marke)ng and brand ac)onable insights.
• Always measure and ask “how are we doing” with your customers.
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8. Get out and shop more with consumers
• Marketer’s will spend countless hours and dollars on market research but it’s es)mated that less than 10% of marketers actually go shopping with consumers.
• “One of the best agributes of any marke)ng person is the ability to think like a consumer instead of a salesperson.
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In the end
How you treat your customers and consumers says a lot about your brand and your company but mostly it says a lot about you as a marketer.
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One more thing….
Not everything you do is going to be successful. Be prepared to fail some)mes but learn from your mistakes and become a beger marketer.
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About me…
Richard Meyer • My resume hgp://www.richardameyer.com • My marke)ng BLOG hgp://www.richsmarke)ngblog.com • MY DTC BLOG hgp://www.worldofdtcmarke)ng.com • My Management BLOG hgp://www.richsmanagementblog.com
hgp://www.twiger.com/richmeyer
hgp://www.facebook.com/richardameyer
hgp://www.linkedin.com/in/richardameyer