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McKinsey Insights & Publications webinar | February 20, 2015

Five keys to unlocking growth in marketing’s “golden age”

McKinsey & Company | 2@McKinsey @McK_MktgSales #McKGrowth

New trends shaping marketing today

Consumer power

Explosionof digital

Fragmentation

Always on Personalization

Data, data,data!

100

110

Personalization

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This is the dawn of a new golden age of marketing

This is the dawn of a new golden age of marketing

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Science

StorySpeed

Simplicity Substance

The 5 S’ of the new golden age

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“The beauty of marketing today is that we can really show the return. The data allows us to demonstrate impact in a much more transparent way than in the past.”

Lorraine Twohill, Senior VP for Global Marketing, Google

Science

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Science

Better decisions to increase impact

$200 billion opportunity

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Science: Better decisions to increase impact

Avg. profitfor promotedproducts up

288%

Retail company

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Science: Better decisions to increase impactInternational industry player

100,000 price points reset

500 SKUs

1.3 million transactions

An

alyt

ical

ren

der

ing

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Science: Better decisions to increase impact

vs.

Art Science

Wrong debate

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Science: Better decisions to increase impact

Art Science

Wrong answer

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Art Science Craft

Science: Better decisions to increase impact

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Substance

“Look what [luxury brands] are doing: they’re building flagship stores that are beautiful, where you actually like to just browse around before you buy. Those are emotional places.”

Ola Källenius, Board of Management of Daimler AG

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Substance

Moving beyond messaging to shape the substance of

business

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Differentiation

Substance: Shaping substance of business

Products Services Experiences

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Substance: Shaping substance of businessEnergy company

Customeronboarding

7 steps

2 steps

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Story

“It’s not [all data]! … If you fall down on the art, if you fail on the messaging and storytelling, all that those tools will get you are a lot of bad impressions.”

Lorraine Twohill, Senior VP for Global Marketing, Google

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Story: Better storytelling for emotional connection

What makes a good story hasn’t changed.

HOW to tell one has.

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Old story telling BRAND

New story telling BRAND

Story: Better storytelling for emotional connection

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Speed

“Speed comes from decentrali-zation and creating a local autonomy to take local action.”

CMO, Consumer goods company

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Speed

A culture of urgency has placed emphasis on speed and agility

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Speed: A culture of urgency to keep up with consumers

From To

Batch processing

Command and control

Manual

Slow development

Continuous delivery

Agile

Automated

Real-time test & learn

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Simplicity

“The growing complexity is unmanageable: in-house vs. external partners, established channels vs. new channels. We need help to get through this jungle.”

CMO, Consumer goods company

McKinsey & Company | 23@McKinsey @McK_MktgSales #McKGrowth

Simplicity: Simplify to execute

Speed and agility require relentlessly focusing

on simple

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Complexity kills

Expanding geographic footprints

Product and channel

proliferation

Digital and technology

specializations

Hierarchies, silos, gaps,

redundancies

Simplicity: Simplify to execute

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Complex: Disparate HQs and teams

Simplified: Single team mapped to customer

ourney

Consistent brand experience

Simplicity: Simplify to executeDaimler

Customer journey

Before

After

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The most important questions to ask

Speed Faster than our competitors or slower?

Simplicity Simplifying processes or overwhelming with new things?

Story Making connections or speaking into space?

Substance Differentiated experience or “me-too” selling?

Science Today’s insights or yesterday’s facts?

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Jesko PerreySenior Partner andGlobal Knowledge Leader of McKinsey's Marketing & Sales Practice 

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McKinsey on Marketing & Sales

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