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Four Transitions: Profiting From A Consumer Controlled Marketplace. The Evolution of Consumer Control. Internet/Wireless Platform. Proactive Marketing. Engagement. Consumer Initiatives. Word of Mouth. Transformation. Television Magazines Newspaper Radio Direct Mail Telemarketing - PowerPoint PPT Presentation
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Four Transitions:Profiting From A Consumer Controlled Marketplace
The Evolution of Consumer Control
Internet/Wireless Platform
Marketing 2008
Television
Magazines
Newspaper
Radio
Direct Mail
Telemarketing
In-store
Web Site
Mobile
ProactiveMarketing
Search
Retail Visit
Call to Center
Web Visit
Mobile
Face to Face
Telephone
Social Network
Blog
SMS
MMS
Word of Mouth
Engagement
Purchase
Request Information
Donate
Vote
Etc…
ConsumerInitiatives
Transformation
The Evolution of Consumer Control
Internet/Wireless Platform
Product Proliferation
Cooking.comButter Dishes1 of 2 pages
Macys.comWomen’s Dresses1 of 27 pages
The Evolution of Consumer Control
Internet/Wireless Platform
Product Proliferation
Channel Explosion
Channel Explosion First printed ad – 1477 Postal Act/Postal Delivery – 1792 Sears Catalog - 1888 Television invented – 1928 Last 25 years
Cable TV Internet Variable data printing Mobile phones iPods
The Evolution of Consumer Control
Internet/Wireless Platform
Product Proliferation
Channel Explosion
Consumer Fragmentation
Consumer Fragmentation Test1. For vacation travel, which of the following
destinations would you prefer? a) Paris, b) Hong Kong, c) San Francisco
2. If considering a new car, which of the following styles would you prefer? a) SUV, b) sports car, c) sedan
3. When eating out, which cuisine would you prefer? a) American, b) Oriental, c) French
The Evolution of Consumer Control
Internet/Wireless Platform
Product Proliferation
Channel Explosion
Consumer Fragmentation
The Decision Crisis
The Decision Crisis
More product choice
More channel choice
More decisions to be made
The Paradox of Choice
More Choices Less Choice
When given only one choice, 2/3 of people go ahead and make the purchase. That means 1/3 choose to keep looking. When given two choices, an equal number of people choose each CD player, but nearly half decide to buy nothing.
Source: Paradox of Choice, Barry Schwartz
0 20 40 60 80 100
One Choice
Two Choices
Sony
Aiwa
Nothing
Growing Dissatisfaction
Source: Paradox of Choice, Barry Schwartz
Positive Emotions
Negative Emotions
Number of Choices
Net Feelings
Impact of Changes
Lost control of informationNo sustainable product advantageNeed to manage growing number of channelsMessaging to more diverse audienceAddress growing consumer confusion
The Four Transitions
Objective
Campaign Objectives
Transition 1
From major channel proactive to multi-channel reactive
Campaign Types
ObjectiveType
Proactive versus Reactive Campaigns
Proactive campaigns are: one time events delivered to a broad audience at the discretion of the
marketer.
Reactive Campaigns are: delivered individually in response to a customer initiative automated with a single template that is used frequently (i.e.
weekly, daily, etc…) dynamic with content based upon the individual customer
initiative (i.e. products related to those purchased or browsed).
Marketing 2008
Television
Magazines
Newspaper
Radio
Direct Mail
Telemarketing
In-store
Web Site
Mobile
ProactiveMarketing
Search
Retail Visit
Call to Center
Web Visit
Mobile
Face to Face
Telephone
Social Network
Blog
SMS
MMS
Word of Mouth
Engagement
Purchase
Request Information
Donate
Vote
Etc…
ConsumerInitiatives
Transformation
Thank you
Web browser
Abandon
Replenishment
Multi-buyer
Search term
Prospect
Pre-filter
ReactiveCampaigns
Post Order Email
Web Visit Reaction
Transition 1 Conclusions
Marketers need to improve their reaction to consumer initiatives.
For many, this will involve campaign automation due to the growing number of campaigns.
Reactive communications should be implemented across multiple channels.
Transition 2
From mass marketing to merchandising for the individual
Campaign Targeting
ObjectiveTypeTargeting
Data Driven Reactive Campaigns
Transaction data
Browse data
Life stage data
Consumer supplied data
Dynamic Content Rules
Jane Smith,iPod
Mark RogersLaptop Computer
Betsy MaddenOffice Chair
John ShawSony Digital Camera
DynamicRulesEngines
Web Personalization
Reaction to Past Purchases
Customized to past purchases
Customized to home city
Consumer Provided Data
Thank You 1
Thank You 2
Thank You 3
Reactivation 1 Replenishment 1
Cart Abandon 1
Browse 1
Browse 2
Browse 3
Cart Abandon 2
Replenishment 2Reactivation 2
Anniversary 1
Anniversary 2
Problem Identifier
Product Review 1
Product Review 2
Purchase Intent Qualifier
Style/Feature Qualifier
Pricing Qualifier
Timing Qualifier
Catalog
Direct Mail Piece
Call Center
Collaboration Management
Awareness Engagement Collaboration Transformation
Web Site
All use dynamic content
All can be delivered across multiple channels
Bold = Automated
Broadcast Media
Print Media
Blast Email
Online Ads/Search
Education 1
Education 2
Education 3
Thank You 1
Thank You 2
Thank You 3
Reactivation 1 Replenishment 1
Cart Abandon 1
Browse 1
Browse 2
Browse 3
Cart Abandon 2
Replenishment 2Reactivation 2
Anniversary 1
Anniversary 2
Problem Identifier
Product Review 1
Product Review 2
Purchase Intent Qualifier
Style/Feature Qualifier
Pricing Qualifier
Timing Qualifier
Catalog
Direct Mail Piece
Call Center
Collaboration Management
Awareness Engagement Collaboration Transformation
Web Site
All use dynamic content
All can be delivered across multiple channels
Bold = Automated
Broadcast Media
Print Media
Blast Email
Online Ads/Search
Education 1
Education 2
Education 3
76% increase in revenue per “engaged” customer
90% of marketing
budget
Transition 2 Conclusions
Once engaged, consumer should be addressed as individuals using the data they generate.
Addressing consumers as individuals will require the use of dynamic content.
Marketers will become more dependant on technology to be effective.
Transition 3
From product proliferation to mass customization
Campaign Experience
ObjectiveTypeTargetingExperience
Approaches to Mass Customization
Customize the product
Customize the selection
Customize the delivery
Factory 121 – Custom Watches
Users can design their own watches by following easy to understand steps
BOMC2 – Book Club
The users create their
Personal Reading List
then get the top book from their Reading List each month.
Shaw Floors
Shaw Floors
Shaw Floors
Transition 3 Conclusions
As marketers and consumers increase collaboration both parties are more likely to achieve satisfaction.
Mass customization offers both marketing and manufacturing efficiencies.
Executed correctly, the marketing and manufacturing process become seamless.
Transition 4
From consumer confusion to simple solution
Campaign Benefits
ObjectiveTypeTargetingExperienceBenefits
Capital One Card Lab
Crutchfield
Crutchfield
Transition 4 Conclusions
Making the complex simple is the most challenging task facing marketers.
Technology will be required to achieve simplicity without sacrificing functionality.
Easy sells!!!!!
Current Budget Allocation
Future Trends
Future Trends
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
FUNCTION FUNCTION
Four Transitions:Profiting From A Consumer Controlled Marketplace
Keith WardellCEOMarketing1by1, [email protected]
