THE NEW CONSUMERImplications for marketing in a changing landscape

Sudesh JogHead of Loyalty and Retention CommunicationsBritish Telecommunications plc.

Increasing penetration of portable access is changing consumer behaviour

• Communication consumption is changing dramatically and is led by the younger consumer

• Smartphone is the device of preference (ahead of laptops (2x) and tablets (3x)- CISCO research

• Form factor and functionality: Smartphones have a smaller screen but are always on, always connected and bring together a large number of channels; Mobile channels(text, voice), Internet channels(email, social messaging) and Hosted channels (apps, device messengers)

• This change of access represents a major inflexion point for marketers

This change offers new communication opportunities and challenges for managing a customer journeyThe customer journey is complex for technology service providers as we need to enable, educate and resolve

• Many journeys in a customer lifecycle; some triggered by the customer and many by us through pro-active communications

• The complexity of the product for the consumer leads to many failures during

• ‘the phases of intent’ – when the consumer is buying and

• ‘the phases of consumption’ when the customer is getting the product installed or is using the product

• Communicating with the consumer during these journeys can help improve the outcome

What do these trends mean for marketing• Customers are willing to increasingly engage across a number of platforms- Mobile and social is growing and emails are back

1

• Communication content and tone is changing2

• Seamless shift between 1to1 to 1-to-many- Interactions are more public – or at the risk of going public

3

•he consumer view has to integrate the individual into the traditional household view – and understand the dynamics in a multi-person household

4

• Time to reach customers has reduced – creating new trigger opportunities5

The largest shift: Life in 140 charactersIt has become possible to enrich the journeys by multiplying the touch-pointssmaller and more steps to the same destination

It still needs to be relevant conversation driven by accurate consumer data

Now it also requires,

1. a quick response turnaround to a trigger2. a two way communication in real time

• Am ability to converse in real time provides a great opportunity to shape the consumer journeys

• However, is the current structure capable of handling the volume and the velocity of transactions that this demands?

The challenges • Stitching together of held customers data has become even more difficult – needs to be real time to be relevant1

• Content is a challenge – traditional content generation is too slow- The 8 weeks/ 100 hour per creative traditional advertising approach cannot meet this volume

2

• Measurement of consumer action is going off radar- We lose sight of the customer as interaction on social platforms like Facebook and on platforms like the app stores is not visible3

• Intelligent serving of messaging requires new data engines- The volume requires automation – with algorithm support to identify the next best option4

Data – Customer One view

Serving Infrastructure

Journey re-maps

Content

The current marketing ecosystem needs to change to address this shift

Content• from monologue to dialogue• Testing and learning• Process to review bank of content

MarketingJourney re-mapping

• Touch point insightgoing beyond the segment insight into the moment of truth (what customers think/ believe is subject to the context)• Re-focus research• Segmenting for the edge cases

Single customer view• Contact data

needs to capture multiple contact details for each consumer• Contact data validation

Does the customer agree – permission marketing requires an on-going

consent• Chunking into smaller segments

CRM

Serving platforms and decisioning• Multi channel serving and receiving• Ability to integrate across internal

platforms

In summary: The four BIG changes required

• Enablement through investment in the systems, tools and platforms 1

• Real time, on tone content – in-house copy/ creative teams?2

• Marketers need incremental quantitative skills and technical understanding 3

• A shift in focus - trading impact for customer experience 4

And the rewards could be immense

• More routes to reach, trigger and influence customers1

• Cheaper and more effective communication2

• Substitution of call centre conversations and the potential for more designed experience

3

• But most important of all,• Greater consumer relevance and

optimisation of marketing effort 4

Thank you

Sudesh Jogsudesh.jog@bt.com