five keys to unlocking growth in marketing’s “new golden age”
TRANSCRIPT
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CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
Dr. Jesko Perrey
Krefeld | October 5, 2017
Five keys to unlocking growth in marketing’s “new golden age”
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McKinsey & Company | 1@McKinsey @McK_MktgSales #McKGrowth
The old golden age of marketing
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McKinsey & Company | 3@McKinsey @McK_MktgSales #McKGrowth
New trends shaping marketing today
Consumer power
Explosionof digital
Fragmentation
Always on Personalization
Data, data,data!
10
01
10
Personalization
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McKinsey & Company | 4@McKinsey @McK_MktgSales #McKGrowth
This is the dawn of
a new golden age of marketing
McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 4
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McKinsey & Company | 5@McKinsey @McK_MktgSales #McKGrowth
Science
StorySpeed
Simplicity Substance
The 5 S of the new golden age
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McKinsey & Company | 6@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 6
“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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McKinsey & Company | 8@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
Avg. profitfor promotedproducts up
288%
Retail company
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McKinsey & Company | 9@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impactInternational industry player
100,000 price points reset
500 SKUs
1.3 million transactions
Analy
tica
l re
ndering
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McKinsey & Company | 19@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 19
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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McKinsey & Company | 20@McKinsey @McK_MktgSales #McKGrowth
Substance
Moving beyond messaging to shape
the substance of
business
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McKinsey & Company | 21@McKinsey @McK_MktgSales #McKGrowth
Differentiation
Substance: Shaping substance of business
Products Services Experiences
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McKinsey & Company | 22@McKinsey @McK_MktgSales #McKGrowth
… and inspiring store in Hamburg
Substance: Shaping substance of business
SOURCE: MercedesMe website, Daimler
Leading digital customer
interaction and experience…
▪ Automatic appointment booking
▪ Personalized financing▪ Co-creation of ideas▪ Sensor-enabled auto
diagnostics▪ Access to car-sharing
Daimler
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McKinsey & Company | 24@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 24
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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McKinsey & Company | 27@McKinsey @McK_MktgSales #McKGrowth
Story: Better storytelling for emotional connection
Art director Film director
Direct collaboration for fragrance ads and short films
Chanel
SOURCE: Youtube; © Chanel
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McKinsey & Company | 30@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 30
Speed
“Speed comes from decentrali-zation and creating a local autonomy to take local action.”
CMO, Consumer goods company
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McKinsey & Company | 31@McKinsey @McK_MktgSales #McKGrowth
Speed
A culture of urgency has placed emphasis
on speed and agility
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McKinsey & Company | 32@McKinsey @McK_MktgSales #McKGrowth
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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McKinsey & Company | 33@McKinsey @McK_MktgSales #McKGrowth
Speed: A culture of urgency to keep up with consumersGoogle
Early testing with consumers
Speed in product development
Putting products in front of consumers and bringing back insights in real time in a cycle of testing, learning, and iterating. Marketing as facilitator between user’s eyes and product developers
Learn in numerous iterations
Defining ideas and concepts
Developing prototypes
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McKinsey & Company | 34@McKinsey @McK_MktgSales #McKGrowth
Speed: A culture of urgency to keep up with consumersNestlé
SOURCE: Youtube; © Nestlé
Digital Acceleration
Team
12 of Nestlé’s highest performers
8 months project time
1 task: scout and test innovative digital ad technologies and strategies
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McKinsey & Company | 35@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 35
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
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McKinsey & Company | 36@McKinsey @McK_MktgSales #McKGrowth
Simplicity: Simplify to execute
Speed and agility require relentlessly focusing
on simple
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McKinsey & Company | 37@McKinsey @McK_MktgSales #McKGrowth
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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McKinsey & Company | 38@McKinsey @McK_MktgSales #McKGrowth
Customer experience is a C-suite issue
Simplicity: Simplify to executeTelecoms company
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McKinsey & Company | 39@McKinsey @McK_MktgSales #McKGrowth
Disparate HQs and teams
Single team mapped to customer journey
Consistent brand experience
Simplicity: Simplify to executeDaimler
Customer journey
Before
After
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McKinsey & Company | 40@McKinsey @McK_MktgSales #McKGrowth
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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McKinsey & Company | 41@McKinsey @McK_MktgSales #McKGrowth
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@JeskoPerrey
Dr. Jesko PerreySenior Partner and Global Knowledge Leader of
McKinsey's Marketing & Sales Practice
McKinsey on Marketing & Sales
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