Transcript The Evolution of Consumer Control

Four Transitions:
Profiting From A Consumer
Controlled Marketplace
The Evolution of Consumer Control
 Internet/Wireless Platform
Marketing 2008
Proactive
Marketing
Television
Engagement
Word of
Mouth
Magazines
Newspaper
Radio
Direct Mail
Telemarketing
In-store
Web Site
Consumer
Initiatives
Face to Face
Telephone
Transformation
Purchase
Retail Visit
Call to Center
Request
Information
SMS
Web Visit
Donate
MMS
Email
Vote
Blog
Mobile
Etc…
Social Network
Email
Mobile
Search
The Evolution of Consumer Control
 Internet/Wireless Platform
 Product Proliferation
Cooking.com
Macys.com
Butter Dishes
1 of 2 pages
Women’s Dresses
1 of 27 pages
The Evolution of Consumer Control
 Internet/Wireless Platform
 Product Proliferation
 Channel Explosion
Channel Explosion
 First printed ad – 1477
 Postal Act/Postal Delivery – 1792
 Sears Catalog - 1888
 Television invented – 1928
 Last 25 years
 Cable TV
 Internet
 Variable data printing
 Mobile phones
 iPods
The Evolution of Consumer Control
 Internet/Wireless Platform
 Product Proliferation
 Channel Explosion
 Consumer Fragmentation
Consumer Fragmentation Test
1. For vacation travel, which of the following
destinations would you prefer?
a) Paris, b) Hong Kong, c) San Francisco
2. If considering a new car, which of the following
styles would you prefer?
a) SUV, b) sports car, c) sedan
3. When eating out, which cuisine would you prefer?
a) American, b) Oriental, c) French
The Evolution of Consumer Control
 Internet/Wireless Platform
 Product Proliferation
 Channel Explosion
 Consumer Fragmentation
 The Decision Crisis
The Decision Crisis
 More product choice
 More channel choice
 More decisions to be made
 The Paradox of Choice
More Choices Less Choice
When given only one choice, 2/3 of people go ahead
and make the purchase. That means 1/3 choose to
keep looking. When given two choices, an equal
number of people choose each CD player, but nearly
half decide to buy nothing.
Sony
One Choice
Aiwa
Two Choices
Nothing
0
20
40
60
80
100
Source: Paradox of Choice, Barry Schwartz
Growing Dissatisfaction
Positive Emotions
Net Feelings
Number of
Choices
Negative Emotions
Source: Paradox of Choice, Barry Schwartz
Impact of Changes
 Lost control of information
 No sustainable product advantage
 Need to manage growing number of channels
 Messaging to more diverse audience
 Address growing consumer confusion
The Four Transitions
Campaign Objectives
Objective
Transition 1
From major channel proactive to
multi-channel reactive
Campaign Types
Objective
Type
Proactive versus Reactive Campaigns
 Proactive campaigns are:
 one time events
 delivered to a broad audience at the discretion of the
marketer.
 Reactive Campaigns are:
 delivered individually in response to a customer initiative
 automated with a single template that is used frequently (i.e.
weekly, daily, etc…)
 dynamic with content based upon the individual customer
initiative (i.e. products related to those purchased or browsed).
Marketing 2008
Proactive
Marketing
Television
Engagement
Word of
Mouth
Magazines
Newspaper
Radio
Direct Mail
Telemarketing
In-store
Web Site
Consumer
Initiatives
Face to Face
Reactive
Campaigns
Thank you
Retail Visit
Web browser
Call to Center
Abandon
Web Visit
Replenishment
MMS
Email
Multi-buyer
Blog
Mobile
Search term
Telephone
Social Network
SMS
Prospect
Email
Pre-filter
Mobile
Search
Transformation
Purchase
Request
Information
Donate
Vote
Etc…
Post Order Email
Web Visit Reaction
Transition 1 Conclusions
 Marketers need to improve their reaction to
consumer initiatives.
 For many, this will involve campaign
automation due to the growing number of
campaigns.
 Reactive communications should be
implemented across multiple channels.
Transition 2
From mass marketing to
merchandising for the individual
Campaign Targeting
Objective
Type
Targeting
Data Driven Reactive Campaigns
 Transaction data
 Browse data
 Life stage data
 Consumer supplied data
Dynamic Content Rules
Jane Smith,
iPod
Mark Rogers
Laptop Computer
Betsy Madden
Office Chair
John Shaw
Sony Digital Camera
Dynamic
Rules
Engines
Web Personalization
Reaction to Past Purchases
Customized to
past purchases
Customized to
home city
Consumer Provided Data
Collaboration Management
Awareness
Direct Mail Piece
Engagement
Problem Identifier
Collaboration
Transformation
Thank You 1
Browse 1
76% increase in
revenue per
“engaged”
customer
Catalog
Purchase Intent Qualifier
Browse 2
Thank You 2
Call Center
Style/Feature Qualifier
Browse 3
Thank You 3
Web Site
Pricing Qualifier
Product Review 1
Cart Abandon 1
Broadcast Media
Timing Qualifier
Product Review 2
Cart Abandon 2
Print Media
Blast Email
Online Ads/Search
90% of
marketing
budget
Reactivation 1
Education 1
Replenishment 1
Reactivation 2
Education 2
Replenishment 2
Anniversary 1
Education 3
Anniversary 2
All use dynamic content
All can be delivered across multiple channels
Bold = Automated
Transition 2 Conclusions
 Once engaged, consumer should be
addressed as individuals using the data they
generate.
 Addressing consumers as individuals will
require the use of dynamic content.
 Marketers will become more dependant on
technology to be effective.
Transition 3
From product proliferation to
mass customization
Campaign Experience
Objective
Type
Targeting
Experience
Approaches to Mass Customization
 Customize the product
 Customize the selection
 Customize the delivery
Factory 121 – Custom Watches
Users can design their own watches by
following easy to understand steps
BOMC2 – Book Club
The users create their
Personal Reading List
then get the top book from their
Reading List each month.
Shaw Floors
Shaw Floors
Shaw Floors
Transition 3 Conclusions
 As marketers and consumers increase
collaboration both parties are more likely to
achieve satisfaction.
 Mass customization offers both marketing
and manufacturing efficiencies.
 Executed correctly, the marketing and
manufacturing process become seamless.
Transition 4
From consumer confusion
to simple solution
Campaign Benefits
Objective
Type
Targeting
Experience
Benefits
Capital One Card Lab
Crutchfield
Crutchfield
Transition 4 Conclusions
 Making the complex simple is the most
challenging task facing marketers.
 Technology will be required to achieve
simplicity without sacrificing functionality.
 Easy sells!!!!!
Current Budget Allocation
Future Trends
Future Trends
FUNCTION
FUNCTION
FUNCTION
FUNCTION
Four Transitions:
Profiting From A Consumer
Controlled Marketplace
Keith Wardell
CEO
Marketing1by1, Inc.
[email protected]