THE ARCHITECTSFUTURELAB

We assist

Marketers to maximise the return on their investments

Innovators to create more successful propositions.

CEO’s to grow profits through customer-centricity.

Athens Brussels Bucharest Hamburg IasiKievMoscowShanghai

Some CredentialsAstra ZenecaDeloitteFortis InvestmentsHeinekenHewlett PackardLegoMobistar

Special Relationship

GemaltoLexusPhilipsPireaus

CHANGE MARKETING? YES WE CAN.DIGITAL EDITION

FUTURELAB

Flashback 2006:

I Am The Media

FUTURELAB

The traditional marketing model is being challenged, and

(CMOs) can foresee a day

when it will no longer work.

McKinsey Quarterly, 2005, Number 2

FUTURELAB

2009-2011

The End is Here

FUTURELAB

For many traditional mass-habits

US media fragmentation and the demise of the “big 3”

Source: Deloitte – State of the Media Democracy Survey, 2008

FUTURELAB

Over one-third of US consumers are watching TV shows online

Always & almost al-ways; 88%

About half the time; 7%

Hardly ever; 3%

Never ; 6%

UK DVR owners who fast-forward the adverts(% of recorded programmes)

Source: Ofcom Research, February-March 2008

Europe West Europe East/ME

8.6

1.1

48.2

9.4

20082013

DVR Growth by Region(millions of units)

Source: Informa Telecoms & Media, Q4-2008

TV Ads are being “tuned out”

FUTURELAB

Source: Europe Logs On, Microsoft, April 2009

European Internet vs. TV consumptionHours/week

37% of french consumers already listen to radio via the internet (IT,UK,DE = ca. 1/3)

Internet usage on PC will drop from 95% today to 50% in 5 years time as people switch to other methods

In Europe, Internet will soon be bigger than TV

FUTURELAB

18-32 33-44 45-54 55-63 64-72 73+

26%

20% 20%

13%

9% 9%

30%

23% 22%

13%

7%

4%

% of total population

% of internet population

Source: Pew Internet and Americal Life Project December 2008 Survey

Internet vs. real world population by age groupUnited States, December 2008

And it ain’t just the kids

FUTURELAB

FUTURELAB

The answer ... go socio-digital !!

“The workers should

appropriate the means of production”

After all, there is an ever expanding universe to play with

FUTURELAB

84% of Germans under 30 would rather give up their car or partner than live without internet or mobile telephone.Source: Bitkom study via Onlinekosten.de – March 2, 2009

72% of British male gamers would avoid having sex for a chance to try their hands on a brand new PS3-game.Source: PS3 Price Compare study, via Itproportal, March 3, 2009

And engagement goes deep ... very deep

FUTURELAB

Many digital marketing herd activities just don’t cut it either ...

FUTURELAB

The Sad Reality

78% of consumers consider in-stream advertising as “intrusive”. Half of viewers stop watching an online video once they encounter an in-stream ad.Source: Burstmedia, January 2008

29% of consumers leave a website that appears to be cluttered with advertising.

Source: Burstmedia, December 2008

Only 13% of UK consumers pay attention to ads on social networking sites.

Source: Ebay Advertising, March 2009

BANNER/AD BLINDNESS

FUTURELAB

NEW !!TWITTER SPAM

Different Channel, Same Problem

Reality CheckWhat does this mean for the business???

“If I tell my Facebook friends about your brand, it’s not because I like your brand, but because I like my friends.”

Mike Arauz

FUTURELAB

Different Channel, Same Problem

“The problem is not the [online] medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed”

Eric Clemons

“Informed” consumers are much less reliant on advertising for product information

Out of 20 media company blogs are “least trusted” sources of information. Consumer product ratings/reviews are the second most trusted source.(Forrester, Q2-2008

FUTURELAB

MarCom Needs A Reboot

FUTURELAB

Across the board (including digital) ...

The Core Issue

People who live near train lines adjust to

the noise.

They do the same with advertising.

Imag

e: (

c) A

dam

boot

h

FUTURELAB

BRANDS HAVE TO STOP BEING NOISEAlso in the digital space

FUTURELAB

Getting consumers to embrace the message

FUTURELAB

Imagine instead …

It can be done

• Harry Potter Books ( + 3000 pages)• General Hospital (11,800 episodes)• The Matrix • Star Academy• Fan Protest Save Jericho• Harrypotterfanfiction.net (54,000 stories)• Of Gods and Men

FUTURELAB

Talking about what YOU want to say

Interrupting me

Treating me like any other 35-45 year old male

FUTURELAB

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

FUTURELAB

AN OPEN SOURCE MODEL

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

FUTURELAB

BRAND-CENTRICCOMMUNICATION PLANNING

HUMAN-CENTRICCOMMUNICATION PLANNING

To make me pay attention, stop looking at yourself

FUTURELAB

Starts from what the brand wants to say and how to efficiently get it to pre-defined homogeneous audiences.

Starts from what the customers want to “hear” and and being relevant to their situation, environment, interests and needs.

How to advertise at a busstop?Illustrating the point

FUTURELAB

Brand/Media-Centric Communication Planning

You need to get extreme to get noticed

FUTURELAB

relevance = f(personality, need, situation)

What would this man want to hear?Human Centric Communication Planning

FUTURELAB

I consume a massive amount of media every moment of my day … it’s just not yours. But as a brand, there is no reason why you can’t change this.

Audio/Video Podcasts

Mobile Games

Books & Magazines

Mobile Television

Social Applications

Story Posters

Busstop Conversations

Human Communication Planning

A World of Opportunity

FUTURELAB

relevance = f(personality, need, situation)

Don’t look at the box, look at the personAlso in digital/web

FUTURELAB

TODAY:

Take your existing plan and ask yourself “what’s in it for the customer to give me his media-time?”

How can I make it more relevant and interesting?

And if you don’t know, go into the street and ask.

Project Battlecry: Challenge 1

Introduce Human-Centric Communication Planning

FUTURELAB

STRUCTURAL SOLUTION

Establish a “human driven” communication planning model

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

FUTURELAB

Trust us - Engage with us - Become an Advocate - “Love Us”

Brands seek loyalty for life

FUTURELAB

One Night BrandBut in Reality they behave like a

• Seduce & Forget Campaigns• Loyalty Scams• The New Customer is Prettier• Join This Week’s Community• You are just a segment

FUTURELAB

Would you still “engage”?After the lies, the forgetting, the disregard, the customer promiscuity

FUTURELAB

TODAY:

For every of your current initiatives, validate how customers can “really” talk back (and who listens).

Look at the explicit and implicit promises you make, and check whether they are kept.

Force your team and business to “talk to the customer” (cf. P&G India).

Project Battlecry: Challenge 2

Start Building Individual and Lasting Relationships

FUTURELAB

STRUCTURAL SOLUTION

Shift from campaign based, mass-comms to life-long personalised messages:

• Think microsegmentation or even individual customers

• Build customer life-time communication plans rather than campaigns

• Change your budget and people structure to accomodate this changed reality.

Of 1,365 CPG brands studied

Only 2.5% of shoppersmade up 80% of Sales

Only 25 had a shopper base of over 10% driving 80% of their respective volume

Windfall: The Mass Market is an Illusion

FUTURELAB

5,250,000 inhabitants

X 90% = 4,725,000 Shoppers

X 2.5% = 118,250 people representing 80% sales

Imagine these figures travel to Finland

Your windfall

Many CPG’s “could” know every customer

FUTURELAB

Relevance

Engagement

Reputation

Relevance

EngagementReputation

€

FUTURELAB

I’m a great lover ...

DIRECT SALES

www.greatlover.com

ADVERTISING

He’s a *great* lover !!

BUILD A REPUTATION

FUTURELAB

Imagine that I want to convince you of my skills as a lover.

To Illustrate the value of a reputation

% of people who trust companies less in 2009 than in 2008

Source: Edelman Trust Barometer, 2009

When it comes to company information, a “peer” is as credible as an industry analyst and only preceeded by an “expert”

Source: Edelman Trust Barometer, 2009

Word-of-Mouth is the #1 influence on business-to-business buying decisions

Source: Keller Fay, 2006

Nearly 70% of consumers surveyed thought that pharmaceutical information from peers was credible and believable, even if the peers were not experts.Source: Keller Fay, July 2008

FUTURELAB

It’s the same for any brand

FUTURELAB

The value of a reputation

Show Me the Money !!Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company

0 1 2 3 4 5 6 7 8 9 10

Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company

How likely are you to recommend ?

FUTURELAB

Those who speak well about you are more profitable

Customers that are so happy they recommend are the most profitable of all…

-They spend more

-They negotiate less

-They stay longer

-They are easier to service

-They upgrade quicker

-They bring their friends

Case: Lifetime customer valueDisguised

€ 3,000

Detractors

€ 9,000

Neutrals

€42,000

Promoters

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008

Case in Point: Apple

FUTURELAB

Total Customer Value of an Apple advocate is almost twice that of the industry average, mainly driven by referrals

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008FUTURELAB

Case in Point: Apple

Share of Wallet (B2B-markets)

“at the point of delight, there is an exponential increase in the

share of wallet”

Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf

FUTURELAB

Above all, your reputation drives your profit

Build a reputation

Helping your business create promoters by delighting them

Helping these promoters spread the word …

Focus on it

Project Battlecry: Challenge 3 FUTURELAB

Customer Score or NPSLow High

Low

High

Sh

are

of

Wal

let

Nurture & Leverage

Abandon

Nurture to promotion

Build business

TODAY: RECESSION DIGITAL PLANProve to your business that reputation matters and can help create or safeguard 2009 sales

Relevance: Introduce human-centric communication planning

Engagement: Start building individual and lasting relations

Reputation: Use digital marketing to create/leverage promoters

Relevance

EngagementReputation

€

BATTLECRY

AN OPEN SOURCE MODEL

Relevance Our Brand

Engagement Standardisation

Reputation Doing cool stuff

IN STEAD OF WE THINK

In which we should recognise that we are all addicted

FUTURELAB

… and that we are hostages of our own making

Þ Media-centric planning & buying systems

Þ “Big Idea” creative execution

Þ Efficiency-driven compensation systems

Þ “Mass”-based orthodoxy

FUTURELAB

Help invent a new marketing realityChallenge your agencies – your business – yourself to

FUTURELAB

Customer CentricityProfitInnovation

CHANGE MARKETING? YES WE CAN.

FUTURELAB

To contribute to the revolution, get in touch: ath@futurelab.net or @alain_thys