stop talking at me. nobody is listening: the new physics of the consumerverse

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Presented at the DiG Festival, NSW, 2013. Digital is hot right now. But as brands and businesses of all shapes and sizes rush into the digital domain, they bring with them the baggage of old marketing and PR practices. This brave new digital world is a fundamentally different space. Welcome to the "Consumerverse" - an upside-down, inside-out universe where analytics are revealing, on the one hand, the hit and miss randomness of broadcast messaging, and on the other, the growing importance of guided engagement-laden conversation designed to reach the consumer’s “sphere of attraction.” To succeed in this new Consumerverse, brands need to understand the new physics of attraction and design their business, communications and customer experience accordingly.

TRANSCRIPT

STOP talking at

me. No one is

LISTENING

Gavin Heaton @servantofchaos

The New Physics of the Consumerverse www.servantofchaos.com

http://www.flickr.com/photos/demibrooke/2336528544

A simpler time.

http://www.flickr.com/photos/uon/3770655191/

Davies & Herbert, Confectioners, 207 Hunter St, Newcastle, 1902

Advertising was ...

Newcastle Mortuary Station, Newcastle West, 1896

http://www.flickr.com/photos/uon/3770655789/

And the media was ...

Henry Asser, Bookseller and Stationer, 19 Hunter St, Newcastle, 1897

http://www.flickr.com/photos/uon/3771457272

And the media was ...

Henry Asser, Bookseller and Stationer, 19 Hunter St, Newcastle, 1897

http://www.flickr.com/photos/uon/3771457272

http://www.flickr.com/photos/uon/3723114862

Thomas Griffiths Lambton Road, New Lambton, 1903

We knew who to

trust in business

because we knew

where they lived

(and because they had

awesome moustaches)

We built our companies like this ...

We built marketing like this ...

http://www.flickr.com/photos/37387675

A convenient truth.

WAIT!

Did the job you’re in exist when you were studying?

We became ...

Customer centric

Customer focused

Customer companies

But our organisations still look like:

but live in a digital world We have analogue skills

but live in a digital world We have analogue companies

but live in a digital world We have analogue processes

http://www.flickr.com/photos/45782447@N02/5956902687/

And that digital

world doesn’t

look, feel or

operate in the

same way.

http://www.flickr.com/photos/40143737@N02/3841160835/

It’s an alien world

powered by

geeks, data and

passion.

(Yes, it’s a new kind

of sexy)

Constellation Research

calls this the

“Consumerisation of IT”.

Big data, social, mobile,

cloud and unified

communications are

converging with the

“Connected Consumer”

at the centre.

R “Ray” Wang, “Understanding the new role of the CIO”, Constellation Research Inc, 2012

Conversion

Consider-ation

Interest

Awareness

Rethinking the marketing funnel

Inside-out view of the

buying process

Digital has disrupted

the way that we find

and buy

Gavin Heaton, “Strengthening Marketing’s Mid-Funnel”, Constellation Research Inc, forthcoming

Simple customer journey

DEVICE

SPACE

ENGAGE

CHANNEL

PROCESS

* * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * * *

Gavin Heaton, “Analytics Chat for Anametrix”, Constellation Research Inc, 2013

Connected consumers

Gavin Heaton, “Rethinking the Marketing Funnel”, Constellation Research Inc, 2012

Fragmentation creates silos not synergies

The marketing funnel assumes a passive customer

The next-gen customer experience is owned from the outside in

Next-gen customers make purchases in their own time frames

Purchase decisions occur before consumers reach the marketing funnel

Trust is the currency of digital marketing

22

Six principles we need to address

Marketing mix in transition

Digital will account for 25% of marketing budgets in

2013

And will reach 31.1% by 2017

Mobile is expected to grow faster than digital overall

and will account for over 50% of digital spending by

2017

eMarketer, August 2013

Just think, in 1897 the SMH could fit ...

=

12 pages 1.44 Mb

When information is finite.

http://www.flickr.com/photos/pgoyette/94520121

One library floor

of academic

journals = 100 Gb

But now ... a global infoglut.

2013 Meeker Report, p 11

0

1

2

3

4

5

6

7

8

9

2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E

Zettabytes

1 ZB = 1000000000000000000000bytes 1ZB = 1000 exabytes = 1 billion terabytes

Global digital information created and shared grew 9x in 5 years

Individual relationships

People do

BUSINESS with

people they LIKE.

In my mind, disruption looks like ...

http://nasa.gov

We call it

DISRUPTION but it’s

really a new form of

GRAVITY with the

consumer at the

centre of

everything.

Accelerating change

As Angela Clark pointed out previously ...

Disruption is the New BAU

Within years of introduction, Apple’s iOS had almost entirely displaced the once

dominant Symbian OS from Nokia. Android now claims a majority foothold in the

mobile market.

Early digital adopters have accelerated their

dominance in one market and are using that

positioning to disrupt others.

This same pattern will play out repeatedly in the years ahead

as digital convergence creatively destroys one market on its

way to establishing a new one.

This is the pattern of DISRUPTION as USUAL.

We must embrace disruption as a precondition

for innovation and business success.

http://www.flickr.com/photos/86530412@N02/8226451812/

Three rules for relevance

Participate with purpose

http://www.flickr.com/photos/7815007@N07/7136520433/

Participate with purpose

Not just about being online (creating, sharing and

distributing various types of content)

Beyond content to the realm of SERVICE

Fulfil a role or purpose that aligns with the needs and

aspirations of Connected Consumers

PURPOSE attracts

Be connected and connectable

Consumers don’t care about your strategy, your

mobile platform or network

Consumers care about access and availability – any

channel, any time in a consumable form

If you are not connected and connectable then you are

NOT RELEVANT

Campaigns are DEAD

Businesses are addicted to communicating through

campaigns

They are time boxed and work from an inside-out point

of view

Find flexible, micro approach to campaigns that map to

the buyer’s journey

Work across digital and non-digital touchpoints

Strategically plan comms by buyer journey

Did the job you’re in exist when you were studying?

The future of you/work.

Did the job you’re in exist when you were studying?

The only solution we have

is to

embrace

DISRUPTION as USUAL

Something Newcastle seems to understand well.

Brands are

packets of

cultural history - John Grant

http://www.youtube.com/watch?v=ZZ9RzctTygw

Newcastle images are from original glass negatives taken by Ralph Snowball. It is part of the Norm Barney Photographic Collection, held

by Cultural Collections at the University of Newcastle, NSW, Australia.

All others are referenced on the slide.

IMAGES

Gavin Heaton gavin@constellationr.com // @servantofchaos

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