Andreas Weigend@aweigend

www.weigend.com

HSM World Marketing and Sales ForumThe New Data Revolution:Impact on Marketing StrategyNovember 2010

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…

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

…bridging the physical and the digital

It’s about…

Where Are Decisions Made?

• Brick and mortar• Traditional media• Web• Mobile

Trust?One-way push vs two-way communication?

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)

Social Data RevolutionHow the

Changes (Almost) Everything

BuildingComputers

1970’s

ConnectingComputers

1980’s

ConnectingPages

1990’s

ConnectingPeople

2000’s

ConnectingSensors

2010’s

Mobile Phones

• Capture context and situation- Ambient sound, light

- Geo-location (place, movement)

• Allow for lightweight interactions- Micro-tasks (annotating)

• Attached to a person

Underlying?

Biology: ~100k yrs

Social Norms: ~10 years

Data, Technology: ~1 year

Time Scales

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

Track Movement Flows

40 Billion RFID Tags Worldwide

Instrumenting Cities – New York

Distribution is now distributed

Distribution

Distribution has become social

Social comments create distribution

… personalizes any page

• Attention

• Cognition

• Behavior change

Consumption

Pay-as-you-drive car insurance (GPS)

Monitors your excercise and sleep

Fundamental Shift in Communication

One-way Two-way

Asynchronous Synchronous

Planning Interaction

List Flow

Persistent Ephemeral

Private Public

private public

Web 0 Computers Web 1Pages

Web 2People

Web 0 Computers

E-business

CONSUME

Me-biz

CREATE

We-biz

SHARE

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

How do you know peoples’secret desires?

Audience

C2B: Customer to Business

C2CC2W

…based on reviews

Goal: Help customers make decisions…

Customers who bought this item also

bought…

Customers who viewed this item also viewed…

Customers who viewed this item

ultimately

bought…

… based on clicks and purchases

Goal: Help customers make decisions…

Combine implicit and explicit data

Situation• Geo-

location

• Device

Attention• Clicks,

Transactions

Intention• Search Connectio

n• Social

graph

User generated• Reviews

Sources of Data

Case study: What data for targeting of a new phone product?

Connection data

• Who called who?

Traditional segmentation

• Demographics

• Loyalty

Connection data

Traditionalsegmentation

0.28%

Adoptionrate

1.35%

4.8x

Company

Customers

Audience

C2B: Customer to Business

C2C: Customer to Customer

C2W

Amazon.com Share the Love

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)

Or is information justan excuse for

communication?

Purpose of communication:to transmit information?

Helping people make better decisions together

Co-design, co-create, co-market

Social graph targeting

Provide list of prospects

Fraud reduction

Provide risk scores

Social network intelligence

Audience

C2B: Customer to Business

C2C: Customer to Customers

C2W: Customer to World

Amazon.com: Public sharing of

interests

Consumers

- Engage- Share- Connect

3 times per week

Social Engagement Marketing (SEM)

is a Broadcastnot a Conversation

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

Marketer-generated

aware

consider

buy use

opinionshare

Consumer-generated

Funnel Megaphone

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 down

Switch roles

Exercise: What data for your marketing?

Talk to your neighbor. Total time: 2 x 4 = 10 mins

Who Can You Get To Work For You?

100M Customers

100k Employees

100 Specialis

ts

• Reduce barriers for contribution

• Design incentives that work

Get Your Customers To Work For You!

Where does product knowledge come from?

Case Study: Best Buy

A useful framework

P-H-A-M-E

P-H-A-M-E Problem

Hypothesis

Action

Metrics

Experiment

P-H-A-M-E Problem

Hypothesis

Action

Metrics

Experiment

P-H-A-M-E Problem

Hypothesis

Action

Metrics

Experiment

Action

P-H-A-M-E Problem

Hypothesis

Action

Metrics

Experiment

P-H-A-M-E Problem

Hypothesis

Action

Metrics

Experiment

Power of Community

Let Customers Solve Customers’ Problems

“Customer Service is the New Marketing”

200k accepted FB event invite

400k viewed YouTube video

379 blog posts tied back to it

Viral buzz:26% increase

World Economic Leaders Community

Influencer Marketing?

Real life vs

Market to influential people…

… and then reach everyone else for free

Real Life Facebook

38% ≥ 4 links 86% ≥ 4 links

1

2

34

Chain length

2007 2008 2009 2010(est)0

100

200

300

400

500

Gilt Groupon

Revenues(US$ Millions)

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 Room

Oversized, Corner Room with North Times Square Views (Higher Floors are Preferred

Rooms Ending in:

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

Product

Customer

Brand

From controlled production for the masses…

… to uncontrolled production by the masses

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

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

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

• InnovationInternal External

“Most smart people don’t work here.” Bill Joy

• DataCollect and analyze Create and share

• ExperimentsPush and pray Launch and learn

Summary

Help Customers make BETTER DECISIONS

vs traditional push messaging

5 Maxims

Help Customers make BETTER DECISIONS

Empower Customers to be INDIVIDUALS

vs. traditional segmentation

5 Maxims

Help Customers make BETTER DECISIONS

Empower Customers to be INDIVIDUALS

Create Social PLAYGROUNDS

vs. corporate marketing messages

5 Maxims

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

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

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!

@aweigend

Andreas Weigend | www.weigend.com

Thank you!

Andreas Weigend@aweigend

www.weigend.com

Appendix

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

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)

Simple Things to Do and Learn (3):

Reverse Mentoring

Ideas generation, feedback AND engagement

Facebook Questions

Quora Answers

Individuals Share

Employers Share