era europe 2008 - home shopping 2.0 - jeff molander
DESCRIPTION
Jeff Molander's presentation on Empowering Customers to Drive Multimedia/DRTV Profits. Presented at ERA Europe, Monte Carlo, June 2008TRANSCRIPT
Empowering Customers toDrive Multimedia Retail Profits
Empowering Customers toDrive Multimedia Retail Profits
Jeffrey G. MolanderCEOMolander & Associates [email protected]
Jeffrey G. MolanderCEOMolander & Associates [email protected]
My PromiseMy Promise
Take HomeTake Home
• Trust your instincts
• Create authentic, mutually respectful relationships
• Be fearless, experimental
• Build trust-centric models
• Embrace long-term thinking (sustainable business!)
• Let customers EXPERIENCE CHOICE!
• Trust your instincts
• Create authentic, mutually respectful relationships
• Be fearless, experimental
• Build trust-centric models
• Embrace long-term thinking (sustainable business!)
• Let customers EXPERIENCE CHOICE!
and the biggie…and the biggie…
You ALREADY HAVE the AnswersYou ALREADY HAVE the Answers
Beaten to the Punch?Beaten to the Punch?
“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.”
“To succeed, we need to stop standing between (consumers) and their content and actually be the content they want to see… With some exceptions, consumers do not want to watch content about your brand. But consumers will watch original programming that supports your brand, if it entertains.”
Greg VerdinoCrayon
Greg VerdinoCrayon
Look Familiar?Look Familiar?
Look Familiar?Look Familiar?
Look Threatening?Look Threatening?
Web Video:Who’s Cashing In?
Web Video:Who’s Cashing In?
$
Anyone!Anyone!
FundamentalsFundamentals
GoalsGoals• Demystify & Define: Elements
• Identify
– Changes in customer behavior
– Purchase influence of Web communities
– How video is increasing Web buying
• Demystify & Define: Elements
• Identify
– Changes in customer behavior
– Purchase influence of Web communities
– How video is increasing Web buying
Buzzwords
• Social Media & Web 2.0• Conversational Marketing• Experiential Marketing• Consumer Empowerment• Word of Mouth & Buzz Marketing• Alternate Reality• Viral Narrative • User Generated Content (UGC)
Elements of the Social WebElements of the Social Web• Websites (text)
– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)
• Multi-Media– Video
(amateur & pro, social networks, etc.)– Audio & podcasting
• Websites (text)– Blogging– Social networks (biz and personal)– Bookmarking (del.icio.us Ma.gnolia StumbleUpon)
• Multi-Media– Video
(amateur & pro, social networks, etc.)– Audio & podcasting
Elements of the Social WebElements of the Social Web
• Mobile– Opportunity is clear: 2.5
billion mobile phones – Less than 2/10ths of a
percent of the total advertising spent worldwide
• Mobile– Opportunity is clear: 2.5
billion mobile phones – Less than 2/10ths of a
percent of the total advertising spent worldwide
Source: Informa Telecoms & Media 2007Source: Informa Telecoms & Media 2007
• Collaborative– Shopping– Working
• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)
• Collaborative– Shopping– Working
• Collaborative Narcissism – “Lifestreaming” & Micro-blogging– Multi-dimensional (mobile+Web)
Elements of the Social WebElements of the Social Web
Elements of the Social WebElements of the Social Web
R.S.S.R.S.S.
Elements of the Social WebElements of the Social Web
• Websites • Multi-Media• Collaborative
– Shopping– Working– Socializing
• Tech: RSS, Widgets, Java, Ajax
• Websites • Multi-Media• Collaborative
– Shopping– Working– Socializing
• Tech: RSS, Widgets, Java, Ajax
Experiential!Experiential!
What’s Changing?What’s Changing?
The New Reality
Dr. David WeinbergerAuthor, Speaker, Academic
Marketers:“There is no marketfor your message.”
Social ‘Currency’Social ‘Currency’
Social ‘Currency’Social ‘Currency’• An alternate ‘Currency’ for the Web
– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations
• Influence• Challenges
– How to be trusted?– Authenticity requires transparency!– What are the tactics?
• An alternate ‘Currency’ for the Web– Consumer skepticism – Trust & authenticity– Word-of-mouth recommendations
• Influence• Challenges
– How to be trusted?– Authenticity requires transparency!– What are the tactics?
Trust as CurrencyTrust as Currency
Source: Nielsen 200726,486 internet users in 47 different countries
TrustTrust
TIMETIME
Prime Time is ANYtime
Viewing via Web
Source: Solutions Research Group 2008“Prime Time is Anytime”
• 2006 – 2007 2X increase in Web viewing • 80,000,000 “putting down remote, picking up mouse”• February 2008: Nielsen measuring Web audiences
Sling is THE Thing
New York – Philadelphia TrainNew York – Philadelphia Train
Consumers’ Time OnlineConsumers’ Time Online
Source: Online Publishers Association (Internet activity Index, January 2008)
• “Content” 43 %
• “Communications” 28.7 %
• “Commerce” 16.1 %
• “Community” 7.5 %
• “Search” 5.0 %
Content & Community Sites:Commercial Intent
Content & Community Sites:Commercial Intent
Source: Online Publishers Association (Internet activity Index, January 2008)
• “Content” + Community = 51 %– Comparing– Researching– Gathering & sharing opinions
Birds of a Feather…Birds of a Feather…
Examples ofContent/Community Sites
Examples ofContent/Community Sites
Exclusive Sponsorship
Who’s at the Party?
EvangelistsEvangelists
“Bringing the good news" “Bringing the good news"
Influencing… Influencing…
“Passionistas”
• 43% spend 12 hours+ per week visiting sites related to their obsession
• 50% of consumers will consider buying if it’s associated with their passion
• 70% are making purchases based on experiences
• 43% spend 12 hours+ per week visiting sites related to their obsession
• 50% of consumers will consider buying if it’s associated with their passion
• 70% are making purchases based on experiences
Source: MediaVest, Yahoo and Conifer Research 2008Source: MediaVest, Yahoo and Conifer Research 2008
Allows them to feel different or
better about themselves
What are they Doing at the Party?What are they Doing at the Party?
• CONTROLLING & EXPERIENCING
• Discovering
• Meeting
• Trading (barter, auctions, buying)
• Borrowing, cheating and stealing
• Sharing
• Creating!
• CONTROLLING & EXPERIENCING
• Discovering
• Meeting
• Trading (barter, auctions, buying)
• Borrowing, cheating and stealing
• Sharing
• Creating!
(using the Social Web)(using the Social Web)
SECTION II:How to Empower
Customers & Drive Sales
(getting invited to the party)
SECTION II:How to Empower
Customers & Drive Sales
(getting invited to the party)
“You are interrupting their life. All advertising is unwanted.
So if you’re going to crash the party bring some Champagne with you.”
Bob ThackerOfficeMax Inc.
GoalsGoals• Where to Party
• Making Champagne
• Who to Invite
• Risk Management
• Where to Party
• Making Champagne
• Who to Invite
• Risk Management
Where?Where?
The Party!
Party PlanningParty Planning
MakingChampagneMakingChampagne
3 Types of Social Media Participants
Bradley HorowitzYahoo!
Tools of Production are Affordable
Accessible
Tools of Production are Affordable
Accessible
Rise of The ProSumerRise of The ProSumer
Anyone with a…Anyone with a… Can be a…
Publisher
Photo Journalist
Radio Host
Author
Can be a…
Publisher
Photo Journalist
Radio Host
Author
Rise of Curators & FiltersRise of Curators & Filters
The Business Goal ofSocial Web CompaniesThe Business Goal of
Social Web Companies
Make EVERYONE a creator!100% - creators
100% - synthesizers100% - consumers
Try to make it EASIER for everyone to participate in all roles.
Make EVERYONE a creator!100% - creators
100% - synthesizers100% - consumers
Try to make it EASIER for everyone to participate in all roles.
YOUR GoalYOUR Goal
Make everyone an EVANGELIST
On your turf
Make everyone an EVANGELIST
On your turf
Party PlanningParty PlanningCustomer Reviews&Word of Mouth
Customer Reviews&Word of Mouth
The Recommendation AgeThe Recommendation Age
Customer-GeneratedReviews & Recommendations
Customer-GeneratedReviews & Recommendations
Why?Why?
AuthenticTrust is Implicit
Authoritative*Reputation-based
AuthenticTrust is Implicit
Authoritative*Reputation-based
RecommendationsRecommendations
Source: Keller Fay Group 2008Source: Keller Fay Group 2008
• Americans have 3.5 billion brand-related conversations per day
• 80% trust recommendations from friends, family and “trusted” sources over any form of advertising
• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship
• Americans have 3.5 billion brand-related conversations per day
• 80% trust recommendations from friends, family and “trusted” sources over any form of advertising
• The average American engages in over 10 per day, 8 of which are more influential than any advertisement or paid sponsorship
Do Product Reviews Have Impact?Do Product Reviews Have Impact?
Source: The eTail Group 2008Source: The eTail Group 2008
How Are They Expressing Their Preferences, Likes & Dislikes?
How Are They Expressing Their Preferences, Likes & Dislikes?
Increasingly, VIDEO!
Increasingly, VIDEO!
UGC SourcesUGC Sources
“Fan Mail” Product Reviews Contests
Product Designs! Community SitesEnthusiast Commercials
UGC Web-Video-Print Integration
UGC Web-Video-Print Integration
Review IntegrationReview Integration
• Walmart.com/ratings– Store receipts– Store shelf fact tags– Newspaper circulars
• Walmart.com/ratings– Store receipts– Store shelf fact tags– Newspaper circulars
The RisksThe Risks
Threats to BrandsThreats to Brands
–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility
–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube
–Customer Complaints (Damage Control)• No barrier to entry• No truth / validity filter• Exposure = credibility
–Monitor• Watchdog Sites (ripoffreport.com)• Web Communities• Custom Sites (wakeupwalmart.com)• YouTube
WHO You Invite MattersWHO You Invite Matters
“It’s moving slowly now for us, but we’re seeing growth and see it as a huge opportunity for users to build hundreds of thousands of ‘commercials’ for [PETCO products].”
John LazarchicPetco
John LazarchicPetco
SECTION III:Designing
Experiences
SECTION III:Designing
Experiences
Source: "Passionistas: The New Empowered Consumer" Conference September 2007
Source: "Passionistas: The New Empowered Consumer" Conference September 2007
Edwind WongDir. Customer Insights
Yahoo!
Edwind WongDir. Customer Insights
Yahoo!
"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
"It is not (so much) about the consumer's trust in the brand, but rather… about building the brand out of the consumer's innate needs.”
Let’s Get RadicalLet’s Get Radical
Doc Searls
Co-author, The Cluetrain ManifestoFellow at Harvard’s Berkman Center for
Internet & Society
Doc Searls
Co-author, The Cluetrain ManifestoFellow at Harvard’s Berkman Center for
Internet & Society
“Advertising is about supply finding and ‘creating’ demand.
[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”
“Advertising is about supply finding and ‘creating’ demand.
[There is] nothing wrong with that. At its best, it’s good and necessary stuff. But think about what will happen when demand can find and create supply.”
Content + Community“Crowdsourcing”
Content + Community“Crowdsourcing”
$30,000,000 (2007)$30,000,000 (2007)
Secret Sauce of “Crowdsourcing?”Secret Sauce of
“Crowdsourcing?”
Emotions!Emotions!• Suppliers (who are customers)
– Approval of community– Financial rewards
• Community– Participatory– Cause-minded– Cool-minded
• Suppliers (who are customers)– Approval of community– Financial rewards
• Community– Participatory– Cause-minded– Cool-minded
Crowdsourcing!Crowdsourcing!
Building a RoadmapBuilding a Roadmap
The world belongs to those companies that…
• Identify the right micro-verticals where consumers engage deeply
• Activate new or existing consumer communities that welcome advertiser participation
• Make the ‘network effect’ work for you through syndication & aggregation
• Think the way industrial designers think about ergonomics – for us, it’s form factors of media consumption
Jeffrey RayportFounder & Chairman
Marketspace LLC
Experience Creation ProcessExperience Creation Process
1. Conception
2. Policy
3. Planning
4. Infrastructure
5. Beta-testing/planning
6. Launch
7. Optimization
1. Conception
2. Policy
3. Planning
4. Infrastructure
5. Beta-testing/planning
6. Launch
7. Optimization
Case Studies
Best Practices
Case Studies
Best Practices
Best Practice:Marketers as
Publishers
Best Practice:Marketers as
Publishers
Empowering Customers toDrive Multimedia Retail Profits
Empowering Customers toDrive Multimedia Retail Profits
Jeffrey G. Molander
Jeffrey G. Molander