ERA Europe 2008 - Home Shopping 2.0 - Jeff Molander

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 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)



R.S.S.R.S.S.


• 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



Jeffrey G. Molander

[email protected]

Jeffrey G. Molander

[email protected]

ERA Europe 2008 - Home Shopping 2.0 - Jeff Molander

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