Powerpoint deck form my talk at the Noppen brand innovation summit in November 2013.

1. Beyond Communication: Using Digital to Build Innovation
All Along the Customer Journey
“High End Packaging and Brand Innovation Summit”
November 22nd 2013

2. WHO WE ARE
Labbrand transforms
innovative insight
into effective brand
actions.
As a leading China-based brand
consultancy, our team of crossculture experts in
research, strategy, creative
delivers meaningful actions to help
brands grow, strengthen and
innovate.
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3. HOW WE DO THINGS
BRAND LIFTER
BRAND REACHER
BRAND EUREKA
BRAND TUNER
BRAND POSITIONING
BRAND ARCHITECTURE
BRAND ROADMAP
DIGITAL STRATEGY
BRAND NAMING OLFACTIVE IDENTITY
VISUAL IDENTITY SOUND IDENTITY
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4. Digital marketing is dead.
Digital strategy killed it.
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5. Marketing vs Strategy
Marketing
Process of communicating the value of a product or service to customers, for
the purpose of selling that product or service
Strategy
A method or plan chosen to bring about a desired future, such as achievement
of a goal or solution to a problem.
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6. Old vs New
Digital marketing
- Focused on communication
Digital strategy
- Short term
- Communication + Product and service
innovation + relationship + commerce
- Tactical
- Medium/Long term
- Digital presence in silos
- Linked to over-arching strategy
- Brand centric: brand owned platforms
- Digital presence is integrated
- Disconnected from customer insights
- Customer centric: where the customer is
- Push
- Created based on customer insights
- Digital is just a piece of the media mix
- Opt-in, collaborative
- Digital is a driver of differentiation and a
key variable of business and brand
strategy
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7. Digital strategy = teenage sex
Digital strategy (like many other
things) is like teenage sex
Everyone talks about it,
Nobody really knows how to do it,
Everyone thinks everyone else has it,
So everyone claims they have it too….
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We have a digital
strategy too!
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8. Digital presence ≠ Digital strategy
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9. The BBC model
Digital strategy happens when the brand’s digital presence isn’t designed in a
vacuum but is directly linked to the Brand, the Business and the Consumer.
Brand
- Digital presence builds
upon key brand assets
and attributes
- Digital presence is
used to strengthen the
brand along the right
dimensions
(relevancy, esteem, diff
erentiation, knowledge)
Business
- Digital presence is
used to advance the
company’s overall
objectives
Ex: increase average
consumer
spending, increase
retention rate, make
inroads into a new
customer group, increase
store profitability
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Consumer
- Digital presence is
consistent with what
customers are
expecting and with how
they are behaving all
along the customer
journey
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10. Where digital strategy fits
Strategy is what links each building block of brands’ digital presence to brand
challenges, business objectives and customer insights. It unites them all under a
common vision with over-arching objectives.
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11. Question:
how to make the shift from digital marketing to
digital strategy
Answer:
The customer journey framework is your best
friend
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12. Technology + behavior = the new digital centric journey
Technology and behavior are coming together to create a situation in which
digital channels are integrated all along the customer journey in increasingly
complex ways.
Technology
Behavior
-
Social media innovation
-
Trust in online information
-
Device diversity: desktop + mobile +
tablets
-
Need for 3rd party advice and validation
-
Social approach to purchasing (online
and offline)
-
Smartphones
-
Geo-location
-
Device agnostic digital behavior
-
Innovation in e-commerce platforms
-
-
Mobile payments
Meteoric rise of e-commerce and mcommerce spending
-
Apps
-
-
HTML 5
High propensity to participate in
discussions about brands online
Sources: CNNIC, Nielsen, inSites, alibaba, GroupM
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13. The customer journey model
For each stage of the journey
- How are customers behaving and what do they expect?
- What digital channels are used?
- What does the brand want to achieve?
- How does the brand reach out to and influence consumers?
+ Where are the pain points and key areas for improvement along this journey?
Pre-purchase
Post-purchase
Purchase
How people perceive and
interact with the brand and
product category before they
consider buying
How people buy
How
people
use
the
product/service and interact
with the brand after buying
- Perception of brand and industry
- Brand and industry knowledge
- On-going relationship with brand
and product category (ie: how do
customers form opinions about
brands? Through what sources?)
- Trigger for purchasing decision
- Criteria for choice
- Shortlisting process (portfolio
behavior vs. open set)
- Preferred channels for information
search and purchase
- Length of process
-
- Decision makers (who influences
final decision?)
Product usage over time
Customer support
Path to repeat purchase
Loyalty schemes
- Brand advocacy (how people talk
about the brand and their
experience)
- Average spending
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14. The customer journey model
The traditional “Pre-purchase, purchase, post purchase” journey is a good place to
start from. However you should personalize the framework to reflect the realities of
your industry.
Ex: model for high-end hospitality (recent Labbrand case)
Pre-booking
Trip
Booking
-
Trip planning
City selection
Hotel selection
Choice
room/package
- Payment
- Reservation
management
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of
-
Rewards program
Finding the property
Checking in
Ordering hotel services
Exploring the city
Checking out
- Recruitment
- Redemption
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15. Exercise for brand/digital managers
Exercise for brand/digital managers:
Fill in the following framework to get a clearer picture of what your digital strategy is
and should be.
Pre-purchase
Purchase
Post-purchase
How customers
behave
What digital
channels do
customers use
What customers
want
What I am doing
with digital
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16. Benefits of the approach
What are the benefits of using the customer journey model for digital?
1. Prioritize investment by focusing efforts on the moments of the customer
journey that are most important or that most need improvement
2. Build customer relevancy by developing content and platforms based on
genuine customer insights, not hype or hunches
3. Make the shift from digital communication to digital product/service
innovation
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17. A few examples
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18. A few examples
Pre-purchase
What can be done
Case study
- Increase brand knowledge and visibility
To support it’s new line of baby-care
products, Haier created an online
community called “Moms’ knowledge”
for expecting moms and young moms.
- Entertain
- Educate
- Present your brand in a new light, let
people discover your brand in new ways
- Start a dialogue
On this website, future consumers of
the brand can exchange tips with
other moms or expecting moms and
view content prepared by Haier child
care experts.
With this platforms, Haier educated
future buyers and wins customers
early in the cycle.
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19. A few examples
Purchase
What can be done
Case study
- Optimize e-commerce strategy
(platforms, product mix, pricing etc…)
To counter disappointing sales in the
fine fragrance category, Sephora
created an innovative in-store digital
experience called “The fragrance bar”
to be featured in its Shanghai flagship
store,
- Go beyond basic online distribution to
create new types of online purchasing
experience (more social, more
customizable, simpler etc…)
- Create original digital tools to make the
purchasing process smoother (ecatalogues, augmented reality tools etc..)
- Weave digital into the in-store experience
(in-store screens, iPads for the sales
staff, QR codes to access product
information etc…)
After conducting research about
typical obstacles to
purchase, Sephora developed a set of
applications that allow Chinese
customers to find and try the
fragrance most suited to them.
Through this innovative in-store
experience, Sephora managed to
increase conversion rates in the fine
fragrances category.
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20. A few examples
Post-purchase
What can be done
Case study
- Move towards a model of permanent
brand relationship
Last year, Volkswagen China
launched a dedicated online
community for the owners of “R
series” models.
- Innovate in post-purchase customer
support
- Personalize customer relationship
management to drive repeat purchase and
trading up
- Create communities around brands
- Drive customer brand advocacy
On this platform, owners can discuss
auto-related topics, get advice about
good car maintenance and get
invitations to special “R series”
events.
By moving the concept of a private
owners’ club online, Volkswagen
managed to create a community
around its brand and drive customer
loyalty.
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21. The poster child: Nike
Pre-purchase
Purchase
Post-purchase
Use social media strategically
to influence customer behavior
and create favorable market
conditions
Encourage spending by
allowing for product
customization through online
platforms
Creating new online services
for product owners that drive
loyalty and maximize customer
value
“Win against the elements” Weibo
campaign (winter 2012) encouraging
people to run in the winter through
gamification of running.
Nike iD allowing customers to
personalize their products both
online on the Nike website and
inside stores through in-store
computers.
Nike + platform integrating digital
services with product development.
Allows product owners to get the
most out of their purchase and locks
them into the Nike eco-system.
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22. How do we make it happen?
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23. Fight the “3 no’s”
Fight the “3 No’s”
1. No cooperation
Digital innovation does not tolerate an organization in silos. It demands cooperation
between all departments: marketing, product development, sales, market
research, retail etc…
2. No insights
Digital innovation requires in-depth insights about customer expectations and
behavior. Customer research is the foundation of digital strategy building.
3. No vision
Digital innovation is impossible if all investment is driven by purely tactical, sales
considerations as it is too often the case in China.
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24. Time for some questions!
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