the zombie effect - using actionable insight to combat brain-dead views of the customer
DESCRIPTION
Do you have zombies lurking in your customer segmentation model? Find out what they are, what dangers they pose and what you can do about them. Presented at the Corporate Executive Board (CEB) 2014 Sales & Marketing Summit, Glen Drummond explores this Zombie Effect, the state of customer segmentation (with new research from Quarry), and how John Deere redefined their approach to customer insight.TRANSCRIPT
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FIGHTING THE ZOMBIE EFFECTUSING ACTIONABLE INSIGHT TO COMBAT BRAIN-DEAD VIEWS OF THE CUSTOMERGLEN DRUMMOND, CHIEF INNOVATION OFFICER
@QUARRY @GDRUMMOND #CEBSUMMIT
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HOW SATISFIED ARE YOU WITH YOUR SEGMENTATIO
POLLQUESTION #1
@QUARRY @GDRUMMOND #CEBSUMMIT
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CUSTOMER
EXPERIENCE
OUR STARTING POINT
@QUARRY @GDRUMMOND #CEBSUMMIT
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CUSTOMER
EXPERIENCE
TARGETING STRATEGY
OUR STARTING POINT
@QUARRY @GDRUMMOND #CEBSUMMIT
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CUSTOMER
EXPERIENCE
TARGETING STRATEGY
SEGMENTATION MODEL
OUR STARTING POINT
@QUARRY @GDRUMMOND #CEBSUMMIT
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YOUR CUSTOMER EXPERIENCE INITIATIVES MIGHT BE IN DANGER
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WHAT YOU’LL LEARN• What is a zombie segment?
• What danger does it pose?
• Is the problem widespread?
• What can you do about it?
@QUARRY @GDRUMMOND #CEBSUMMIT
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WHAT DO THESE BRANDS HAVE IN COMMON?
@QUARRY @GDRUMMOND #CEBSUMMIT
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DISRUPTION
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THINK ABOUT
THE CUSTOMEREXPERIENCE
@QUARRY @GDRUMMOND #CEBSUMMIT
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THINK ABOUT
THE CUSTOMER
@QUARRY @GDRUMMOND #CEBSUMMIT
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THINK ABOUT
THE CUSTOMERFLEXIBLY
@QUARRY @GDRUMMOND #CEBSUMMIT
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WHAT COULD POSSIBLY GO WRONG?
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THOUGHT EXPERIMENT
@QUARRY @GDRUMMOND #CEBSUMMIT
PICTURE A
VIKING
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WOULD YOU TRUST THE CARE OF THESE KITTENS TO YOUR VIKING?
@QUARRY @GDRUMMOND #CEBSUMMIT
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HOW’S MY DRIVING?
@QUARRY @GDRUMMOND #CEBSUMMIT
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“THE
PROTOTYPE
EFFECT”
SOME EXAMPLES ARE MORE EXEMPLARY
@QUARRY @GDRUMMOND #CEBSUMMIT
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“THE PROTOTYPE EFFECT” AFFECTS OUR SENSE OF PROBABILITY @QUARRY @GDRUMMOND #CEBSUMMIT
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THE ZOMBIE EFFECT
@QUARRY @GDRUMMOND #CEBSUMMIT
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“REALITY HAS CHANGED, BUT THE THEORY OF THE BUSINESS HAS NOT CHANGED WITH IT.”
PETER DRUCKER
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ZOMBIE SEGMENTS• Cognitive prototypes
for “Customers”
• Strategically brain dead
• Still shuffling around
• Want your brain
@QUARRY @GDRUMMOND #CEBSUMMIT
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EPIDEMIC?
@QUARRY @GDRUMMOND #CEBSUMMIT
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THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
@QUARRY @GDRUMMOND #CEBSUMMIT
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THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)
@QUARRY @GDRUMMOND #CEBSUMMIT
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say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)
@QUARRY @GDRUMMOND #CEBSUMMIT
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say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)let statistical modeling
determine their
segmentation model
Almost
1 IN 7(15%)
@QUARRY @GDRUMMOND #CEBSUMMIT
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say their segmentation model
is not noticeably different from
their competitors’
3 IN 4(70%)
Of those that have one, nearly
THE STATE OF SEGMENTATION
$100MM to $10BB in salesSales, marketing and product development execsB2C and B2B companies
SAMPLE:
1 IN 5
don’t have a
segmentation model
(18%)let statistical modeling
determine their
segmentation model
Almost
1 IN 7(15%)
use a single, common
segmentation
model across their
organization
1 IN 10(10%)
Just
@QUARRY @GDRUMMOND #CEBSUMMIT
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POLL QUESTION #2
WHAT PERCENTAGE OF RESPONDENTS DO YOU THINK WERE SATISFIED WITH THEIR SEGMENTATION
@QUARRY @GDRUMMOND #CEBSUMMIT
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POLL QUESTION #2
OF RESPONDENTS WERE SATISFIED WITH THEIR SEGMENTATION MODEL.
@QUARRY @GDRUMMOND #CEBSUMMIT
60
%
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YIKES! WE’VE GOT ZOMBIES
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AVOIDING THE APOCALYPSE
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@QUARRY @GDRUMMOND #CEBSUMMIT
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HOW JOHN DEERE FOUGHT THE ZOMBIE EFFECT (AND YOU CAN TOO)
MYS
TERY
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
@QUARRY @GDRUMMOND #CEBSUMMIT
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DEFINE THE PROBLEM FOR RESEARCH
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
@GDRUMMOND #CEBSUMMIT
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GO ONSITE TO GET INSIGHT
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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Motivation 1 Motivation 2
PAY ATTENTION TO UNARTICULATED CUSTOMER NEEDS
@GDRUMMOND #CEBSUMMIT
Motivations in conflict
MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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INTEGRATE QUALITATIVE AND QUANTITATIVE RESEARCHWITHOUT WITH
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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BUILD A SINGLE, ACTIONABLE CUSTOMER FRAMEWORK
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Source: John Deere
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STRUCTURE BEHAVIORAL AND DEMOGRAPHIC DATA AROUND ATTITUDINAL DIFFERENCES
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
ATTITUDINAL
DEMOGRAPHIC
BEHAVIORAL
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DEVELOP EMPATHY WITH PERSONAS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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USE THE MODEL TO STRUCTURE AND INTEGRATE OTHER DATA
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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DRIVE ACTIONABILITY WITH TOOLS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
Product-segment
interlock tool
Purchase path maps
(by persona)
Persona
baseball cards
Segment classification
tool
Segment actionability
matrix
Source: John Deere
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BUILD AN INTEGRATED CUSTOMER EXPERIENCE ACROSS TOUCHPOINTS
@GDRUMMOND #CEBSUMMIT MYS
TER
Y
DA
TA
KNOWL
EDGE
INSI
GHT
INNOVA
TION
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BRING CUSTOMER EXPERIENCE TO LIFE
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HOW SATISFIED ARE YOU WITH YOUR SEGMENTATI
POLL QUESTION #3
@QUARRY @GDRUMMOND #CEBSUMMIT