Post on 01-Nov-2014
description
Beeckestijn Business SchoolManaging Brands in Digital and Social Channels
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Hans Molenaar
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MarketingScience Award
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Beeckestijn Business School
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Agenda
Observations Channels Cases Models Conclusions
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Hijacking for Beginners…
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The ‘shift’
Products
Markets
Customers
• Assembly• Push• Mass production
• PMC’s• Segmentation• Branding• Mass media
• Servicing • Database mkg• Push communication
Social
Networks
Interaction
• Realtime• Wisdom of crowds• Web 3.0
• Alliances• Integrations• Dialogue• Web 2.0
• CRM• EDM• 1:1• WEB 1.0
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Media don’t disappear, but…
Personal communication
Mass communication
Low reach
High reach
Mobile Internet Email
PC web
Digital TV
Cinema
Radio
Analogue TV
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BRANDS
TRIGGERS
DIALOGUE
BREAK UP
WHY HAVE SOCIAL MEDIA AND WORTH OF MOUTH SUCH AN IMPACT ?
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Trust
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Titel
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From mass media to digital & social media
202020
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Dutch Telco provider
Orders18000
Cost€529000
CPO€29
Direct
40%
CPO7,-
Affiliate
2%
CPO19,-
12%
CPO6,-
Display
8%
CPO25,-
Search
31%
CH
AN
NEL
CO
NV
ER
SIO
N
Traffic
18.000
76.000 48.000 16.000 10.000 44.000
Direct
Affiliate
Display
Search
Social
40%
2%
12%
8%
31%
= Cost per Order
= traffic share
CPO21,-
Commercial traffic target
Social
5.000
11%
11%
CPO9,-
WHAT ARE RIKS OF NOT BEING SOCIAL ?
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What Kryptonite should have done:
Use influential opinion leaders (celebrities, subculture leaders, etc)
Responded to the blogs immediately
Use social and digital media to interact
Have a community and fanbase
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THAT IS NOT POSSIBLE IN B2B !
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Jeff Jarvis
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Stockprice Dell
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Dell vs Nasdaq
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TRANSPARANCY
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"They reached out to bloggers; they
blogged; they found ways to listen to and follow the advice of their
customers. They joined the
conversation. That’s all we asked.“
Jeff Jarvis
IT IS HAPPENING EVERY DAY
NOT ONLY TO AVOID CRISES
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John Deere and the Chip Foose custom 4020 tractor contest
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Service = ???
Why ?
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BUT WE SELL BORING STUFF !
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IT ALL STARTS WITH A VISION
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BUT THAT DOESN’T WORK IN B2B !
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“Selling the sizzle not the digger”58
SO WHAT THEORY OR CONCEPTS CAN HELP US ?
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The Economics of Collaboration
ExtendedEnterprise
MassCollaboration
Industrial AgeCorporation
Value Creation
Critical ResourcesPhysicalFinancial
Knowledge
Self-Organization
TraditionalHierarchy
BusinessWebs
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Two key succesfactors
1.Being Open
2.Interacting and Sharing
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Likeonomics
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HOW TO MEASURE ?
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Netpromotor scores by Industry
High cost of change prevents customers to leave
Financials Consumer electronics Telco
Churn 10% Churn 25% Churn10%
NPS -47% NPS -35% NPS -29%
Source: TOTE-M Consumer Research on Loyalty, (Potential) Churn and Testimonials
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The Impact on customer value
Source: Satmetrix. Exploring the relationship between Net Promoter and Word-of-Mouth in the computer hardware industry.
Referral EconomicsBuyer Economics
Apple Computers
Tota
l C
usto
mer
Wort
h
$ -2000
$ -1000
$ 0
$ 1000
$ 2000
$ 3000
$ 4000
$ 5000Promoter
Average
Detractor
B2C:High Tech: Computer Hardware
Tota
l C
usto
mer
Wort
h
$ -2000
$ -1000
$ 0
$ 1000
$ 2000
$ 3000
$ 4000
$ 5000
Promoter
AverageDetractor
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WILL EVERYTHING BECOME DIGITAL ?
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The Google (14 years old) direction
2008 2011
Internet $ 26,0 mln $123,3 mln
Television $ 0,0 mln $ 69,3 mln
Print, Radio & Outdoor $ 4,0 mln $ 20,7 mln
Source: Wall Street Journal
(Advertising spend in US)
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Google Chrome TV commercial
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Burberry (155 years old) direction
In 4 years time from 2% to 40% of the whole marketing budget was spent in digital and social
First luxury brand with more than 3 mln fans on facebook
Over 9 mln page views in nine months after launching artofthetrench.com
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What to do ?
1. Giving up control and orchestration
2. Create a vision and content strategy
3. Focus on customers not campaigns
4. Create corporate guidelines
5. Focus on reacting instead of preventing
6. Invest in your social capital outside
7. Invest in monitor and interaction capacity
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A lot of work behind the scenes
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Contact
Hans Molenaar (hmolenaar@beeckestijn.org / 06-51030367)
#hansmolenaar
Beeckestijn Business School
Postbus 333
3830 AJ Leusden
T +31 (0)88-472 22 30
F +31 (0)84-220 79 87
E info@beeckestijn.org
W www.beeckestijn.org
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