Transcript Customer Engagement in the Connected Age

Consumer Engagement
in the Connected Age
Richard Cantwell
Chairman – Board of Governors,
EPCglobal
Marketing
A typical scenario
 I am an executive at Acme Enterprises.
 Acme launches a new allergy-free detergent.
 We need consumers to know about this product.
 How do I reach them?
(This talk will get to technology… eventually)
A history of marketing
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The “Old Days” (100-150 years ago)  Word of Mouth
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20th Century  Mass Media
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Targeted
Credible
TV, Radio, Syndicated Print
Everyone received the same message
Built big Brands
Today  Product offerings & target audiences are both
more segmented
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Reaching today’s consumer is a marketing challenge
The problem
The battle for eyeballs:
 TV viewer-ship fragmented
 Big companies shifting dollars out
of traditional media
 Internet advertising lacks
meaningful metrics & adequate
capabilities (McKinsey, 8/07)
 Other forms of digital media little
understood
 Billboards?
Marketing is at a cross-roads
An answer:
 Reach consumers in the store
Pizza Hut ad on the side
of a Russian Proton rocket!
The possibilities
Interaction/
context
No interaction
Location
(RFID)
Identity
(Loyalty cards)
Video
 Fixed
 Cart-video
Cycling
advertisements
Video attracting
you to items
related to your
cart?
Video showing
product related to
previous
purchases?
Audio
 Fixed
 Beamed iPod?
Store
announcements
Music in exchange Music related to
for locationprevious
related ads?
purchases?
Value-Offer
Promotional
announcements
Offer related to
your purchases?
Promotional
prices & special
offers on above?
This is really happening
I will talk about 3 examples
 Wal-Mart TV
 Smart Shopping Carts
 Promotions
Wal-Mart TV
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“… the average recall of a brand advertised on Wal-Mart television is 66%,
compared with 24% for brands advertised on in-home television.”
Customers 15% more likely to buy product today and 25% more likely to buy
product in future
Sources:
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“Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal (Sep 22, 2004)
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Research commissioned by Premier Retail Networks (PRN) and conducted by AC Nielsen
Displays on the Cart
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Displays on the Cart: Example Modstream
Displays ads on the handle
5-year life
RF update of messages from one central location
Interaction and display
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Media Cart
seek
scan
navigate
RFID in Promotions
RFID is already being used for promotions
 Promotions displays are RFID tagged
 Store doors have readers
 Display movements are monitored
 Lack of movement is detected/corrected
 22% improvement in sales
Now add consumer context
Imagine if the Cart knew:
 Location from RFID/WiFi
 Identity from RFID
 Bluetooth/WiFi to download
audio/video on the fly
Imagine if the display could signal:
 Rate of sale using RFID/WiFi
Now you could:
 Introduce customers to new
products, product categories
 Offer up promotional pricing
& special offers
 Measure efficacy of various
promotions & displays
 Do dynamic pricing to avoid
overstocks
 Provide consumer services
like food allergy notification
Further possibilities
Interaction/
context
No interaction
Location
(RFID)
Identity
(Loyalty cards)
Consumer
Blogging?
Video
 Fixed
 Cart-video
Cycling
advertisements
Video attracting
you to items
related to your
cart?
Video showing
product related to
previous
purchases?
Testimonials?
Audio
 Fixed
 Beamed iPod?
Store
announcements
Music in exchange
for locationrelated ads?
Music related to
previous
purchases?
Commentaries?
Value-Offer
Promotional
announcements
Offer related to
your purchases?
Promotional prices
& special offers on
above?
In-store Consumer Engagement
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This is an key direction for marketing
RFID will play a key role
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So will other technologies:
WiFi
 Bluetooth
 GPS?
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How this works is for technologists to figure out
The benefits are huge for everyone!
Thank You!
[email protected]