5. What will be our key messages today?
1
Instead of embracing complexity, try to simplify & focus
2
Build your organization around the customer, don’t forget it is war
3
Don’t be paralyzed by analytical skills.
Intuition based on good knowledge is of equal importance
4
Surround your team with specialists and dare to outsource
5
Customer involvement is OK to challenge needs & relevance
6
Creativity leads to CEO appreciation and much more!
7
Invest in profound media & tactics training
8
Back to the basics is needed: recruit and train the right skills
#YMS2013
5
6. How to tackle the traditional marketing challenges?
#YMS2013 #YMS2013
6
7. Marketers struggle to create relevance
How to make products/services more relevant?
60%
Communication material
that speaks customer
language
50%
Highlight unique benefits%
Understand
Sharpen
customer Align communication
40% positioning
journey strategy with
Net Success
customer needs%
Analyze if your offering Listen to customers
really matters to
Refine segmentation
30% customer
Challenge range of
20% offerings
Personalized
offering
10%
Co-creation
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
#YMS2013 Usage N=259
7
8. Relevance: a matter of making choices, starting
from the customer
•Be critical, ask the right question:
Do I make life easier? Does my
brand add value?
•Dare to say no
•Don’t make your agency
responsible
#YMS2013 #YMS2013
8
9. Is building loyalty a utopia?
How to build loyalty?
60%
Improve customer
More relevant experience
products/services
50% Analyze customer needs
Focus on CLV
Personalize Communication
40%
Refine segmentation
Net Success
Invest in employees
Create dialogue
30%
20%
Review pricing strategy
Reward with incentive
10%
Involve customers in
marketing projects
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
#YMS2013 #YMS2013 Usage
9
10. 100% loyalty is out. Divided loyalty is in.
•Take care of the basics
•Loyalty programs have become a commodity
•Forget the “old school” rules
•Focus on light users and penetration
“Your consumers’are just
somebody else’s
consumers
who occasionally buy
you”
Martin Hammer
#YMS2013
#YMS2013 10
11. Focus on the customer requires an integrated marketing
approach
How to integrate offline & online communication?
Success & Failure rate online & offline integration
Focus on brand consistency across all touch
-12% 62%
points
Define the ideal communication mix
-11%
(channels, media) per campaign 58%
Integrate online and offline communication
departments -18%
51%
Improve your understanding of the complete customer
journey
-14%
50%
Integrate online and offline customer intelligence data
to take relevant decisions
-22%
Measure and analyze the performance and 47%
characteristics of used online & offline media, channels
and tactics -22%
45%
Develop a cross-channel measurement framework
Analyze the impact of online activities on -23%
41%
sales compared to offline activities
-25%
36%
#YMS2013 Failure Rate11 Success Rate N=257
12. Online & offline integration? Still a long way to go!
Organization built around the customer
Marketing responsible for all customer touchpoints
Online, offline ... It doesn’t matter!
#YMS2013
12
13. How to prove the added value of marketing?
Top 3 - Most common Performance measurements
(%total respondants)
Overall Sales
Overall sales 65%
Marketing ROI
Marketing ROI 48%
Customer satisfaction
Customer satisfaction 45%
Number of new customers 34%
Revenue per customer 28%
Marketing-influenced sales 20%
Churn rate 12%
Others6 12%
Social media metrics 9%
N=250
13
14. Measurement is more than analyzing figures from the past
• Customer satisfaction is key
for marketers
• Do you know the decision
making process of your
customers?
• Simplify, limit to board sensitive
metrics and combine
knowledge with good intuition:
tangibility has its limits
#YMS2013 #YMS2013
14
18. What exactly do we mean by Direct Marketing?
Direct Marketing expected budget evolution per media
Social media 58%
E-mail 45%
Direct mail 16%
Direct response
8%
advertising
Telemarketing 7%
SMS 5%
N=200
2013 Net difference (%increase-%decrease)
#YMS2013
18
19. DM is loved, but not known?!
Marketers’ opinions towards DM
-39%
Too much segmentation pays less
36%
-38%
The ROMI of direct mail is always lower
than e-mailing or any other DM tactic 22%
-38%
Too much data makes it unmanageable to
work with 35%
-36%
Profound IT KX is needed to apply DM
37%
-33%
Data are not correct, so unreliable to use
33%
Well-trained DM marketers are hard to find -19%
46%
#YMS2013 #YMS2013 Disagree Agree
19 N=200
20. Is the hype of social media over?
% agree & disagree on SOLOMO statements
Social media still have to prove their case as
still have to prove their case as -37%
marketing tools
marketing tools 45%
We havesatisfied with the results of our social
We are enough knowledge about the -50%
possibilities of social media
media activities 23%
We have enough knowledge about the
We are satisfied with the results of our social -56%
possibilities of mobile
media activities 23%
We know the ROI of our social media
We know the ROI of our social media activities -63%
activities 17%
Disagree Agree N=195
#YMS2013 #YMS2013
20
22. Your CEO expects other skills than you do!
Ranking personality traits to address 2013 challenges
Marketers
70%
for Marketing Manager & CEO
60%
50%
Analytical skills
40%
Sense of business
Communication skills
Creative skills
30% Ability to make experts Ability to see the
work together bigger picture
Conviction power
Guts
20%
Passion for marketing
10% Intuition
Discipline
Humility
Empathy
0%
0% 10% 20% 30% 40% 50% 60% 70%
-10%
#YMS2013 #YMS2013
22 CEOs
23. We are looking for equilibrists!
Generalist Curious about
specialization
Creative Analytical
Discipline Guts
Hard skills Soft skills
Humility Conviction
#YMS2013
Passionate about
Marketing Business driven
#YMS2013
23
24. How to generate those skills?
Variety
Continuous
training
Experience
Coaching
MARKETING TALENT
DEVELOPMENT PROGRAM
#YMS2013
24
25. What are our key messages today?
1
Instead of embracing complexity, try to simplify & focus
2
Build your organization around the customer, don’t forget it is war
3
Don’t be paralyzed by analytical skills.
Intuition based on good knowledge is of equal importance
4
Surround your team with specialists and dare to outsource
5
Customer involvement is OK to challenge needs & relevance
6
Creativity leads to CEO appreciation and much more!
7
Invest in profound media & tactics training
8
Back to the basics is needed: recruit and train the right skills
#YMS2013
25
26. How FACTS is your marketing department?
CREATIVITY
FACTS Focus Innovative
5.00 culture
4.00 5.00
3.00 4.00
2.00 3.00
Sustainability Agility Porosity & open 2.00 Creative
1.00 mindedness 1.00 profiles
0.00 0.00
Idea Idea
Tangibility Creativity valuation/evalu generation
For all information about the free FACTS audit, ation process
contact Caroline Vervaeke or Detect trends Karolien
FOCUS
Simplicity &
Vanhelden AGILITY 5.00& act
relevance 4.00
5.00 3.00
4.00 Strategic Early warning
Continuity 3.00 Speed 2.00 systems &
consistency
2.00 1.00 processes
1.00 0.00
0.00
Team focused Brand &
in its daily… positioning…
Built around Agile
Build Customer
customer organization,
knowledge centricity
engagement willing to…
26
27. For all information about the YMS,
or for a tailormade company presentation,
contact :
caroline.vervaeke@thom .eu
27
Editor's Notes
Last year, we staed: marekteers are in search of inspiration.This year; we believe the main challenge for the marketers is to find their way in the complexity of marketing today. What to choose as tactis, how to balance the available tools. Hopefully the coming slide will illustrate this title.
Let’s start with the confidence Index.What is the cofidence index. The index is built based on 2 parameters: how will the marekting budget evolve? And how will hte team evolve. As last year ...
No trust regained.The red line is the marketing index.-5 which means 5% more marketers expect a decrease for budget and team than marketers that expect an increase.The index follow the consumer index. Unfortunately: marketers seem to be more negative than consumers. Is this because the pressure of the board to so high?
Of course, same buzzwords re-appear: big data, content marketing, social media, authenticity and moble,But what is new: re marketing, de-trends, Complexity: ROPO, phygital, remarketing, multichanneling, multiscreen...
If you look at the Marketng Confidence Index, and the changes in the buzzwords, it seems clear to us, that marketing needs to change, a new balance.The purpose of today is to give you some ideas about how to deal with marketing in as from today.If you would not agree with this statements, ideas after the presentation, please feel free discuss afterwards during the drink!
New approach: instead of asking what the challenges are, we aksed marketers how they tackled those challenges. Surprising result appeared, and at the same time: helpfull insights!
Let me explain the graphic: what you see below is the number of maketers that apply the tactics to tackle the challengeWhat you see at the left is the succesrate.What surprises us is mentioned in redWhat we see below, least used and least succesfull: co-creation. It might surprise some marketers amongst you as co-creation is a kind of a hype nowadays.What we see on the top: almost most used and considered as very succesful: communication material that speaks to the cusomer, in other words: create a nice campaign and problem is solved.Tactis considered rather low in usage and succes are analyse what really matter to the customer and challenge the range of products. Honestly we do not agree with this and really believe that marketers should be more critial towards their product range.
So in fact, building loyalty is about the basics: work on relevance, improve experience....Involve te customer: I think we’re overestimeting the interest of customers in brands.
53% van de Sensodyne users buy Colgate46% of the Colgate users buy Aquafresh...72% of the Pesdrinkers buy CocaCola....Once or more every 12 monthsMartin Hammer ‘YOURCONSUMERS’AREJUSTSOMEBODYELSE’SCONSUMERSWHOOCCASIONALLYBUYYOUPeople are loyal to a group of productsDevided loyalty: consumer buy different brandsTake care of the basics (experience, needs)Old school rules: gaining a new customer costs 5 times mre than keeping a customerDus het enige wat werkt is de switching barriers hoog houden (vb legaal,vb Nespresso ) maar vooral het involvement (Pampers, Nike) hoog houden
How to understand this graphic?Red is success rate, Orange is failure rateWe ‘ve made a good first step by working on consistency and defining the ideal communication plan
Goed gestart maar we lopen achter op onze consument , inhaalbewegingHow does the customer come to a purchase decision? Is our organizaton built around this customer process?Are we as marketers responsible for the whole process? Because afterall we are responsible for customer satisfaction?
We asked marketers to tell us what were the top 3 performance indicators used in their company to measure the effect of their marketing investements.Their answer is yet another example of “back to basics”: “Overall sales” is topping the list; this is comforting because it shows that marketers see their primary role as “SMS”: selling more stuff, and so it should be. But they have to make sure that their Board colleagues agree that marketing is indeed significantly influencing sales; otherwise they might find that someone else (the Sales Director for instance) is claiming paternity for the sales results too (of course as long as they are good).We are pleased to see that ROMI is in the second position, as the question was about how performance is measured today: it means that marketers are developing tools and skills to perform real ROMI analysis. On a less positive note customer-centricity is still one of the buzzwords, but less than half of the respondents put “customer satisfaction” in their top 3, which we find surprisingly low.
So we would like, and sorry for stating the obvious, to insist on the fact that customer satisfaction is key for marketers, and that a good place to start improving on that is knowing his or her decision process.To build credibility for Marketing (or to re-build it), focus indeed on a few metrics, like sales, and also dare to listen to your intuition
We then asked marketers what their expectations were for the budget evolution of various tactics; this is a question we also put last year; you have the figures of 2012 in red and those of this year in dark yellow; let me insist here: the figures do not show the expected growth or decline of the budget, they show how many more respondents expect an increase (right part) or a decrease (left part) of a given tactic. For instance if for a given tactic 50% of the respondents expect a stability, 30% a growth and 20% a decline, that tactic will be on the right side with a + 10% figure. Like last year, there are more bars on the “decrease expected” side than on the “increase expected” one – this is consistent with the negative Marketing Confidence Index.Marketers expect Direct Marketing and Brand Activation agencies to have a good year.Other striking elements are the expected stability of image campaigns, the negative outlook for sponsoring (in line with last year), and an expected decline for trainings and congresses – and I believe that those in the room who have been or are organising a congress or are in the training business will know about that.
OK, so it is for Direct Marketing that marketers are the most optimistic. This is the case year after year after year. What what exactly do we mean by direct marekting, as so many digital evolutions made it possible to communicate directly with ou customer?And, surprise, social media comes on top, followed by e-mail.We have to take the consequences of that evolution as response rates will certainly not be as successful as they were before. The impact of a message via SM or via Email is certainly not that high as the message in a direct mailing. The risk is that DM via SM or email becomes mass communication as it is very easy to send a mass offering to verybody linked with the brand somewhere in a community.We advice a good balance and simplicity as a principle: a direct mail from time to time with a real personilized message will boost your results. But there for you need the skills (overgang naar volgende slide)
Training is necessaryBut the basics remain: simplify, personalize, create relevance, select ...Don’t make it a mass medium
We have also asked marketers’ opinion on a few statements relating to SOLOMO (Social / Local / Mobile); you can find the whole list in the booklet, here are a few ones that we have selected.Social media are not over, they exist, as TV exists, and will contnue to exist, as TV will continue to exist. But the hype is over, with all it excessive statements that they were the one and only future of Marketing and that TV as a commercial tool was dead.And there is some disillusion:- a majority of marketers say that social media still have to prove their case as marketing tools (and the Facebook shares launched at $38 are trading at $26, that minus 32% in less than a year)And looking at the results for the 3 other statements, a majority of marketers admit that they don’t know enough about the possibilities, that they are not satisfied with the results, and that they even don’t know these results. By the way these results are worse than last year.The relation between marketers and social media looks like a passion that started on a Saturday night, and now comes the Sunday morning, in the daylight and without make-up.The consequence is clear: we do need specialists to make it a success. Our recommendation is to involve external partners as long as the KX is not sufficient.
Last but not least, we asked marketers what are the skills they believe marketers need to address the challenges of this year. And then we put the same question to a sample of CEO’s ... and of course we crossed the results to obtain a good old consultant’s slide.So all the skills that are close to the diagonal are those where CEO’s and marketers agree on the importance.But on which skills don’t they agree ?Maybe surprisingly, Analytical skills are seen as less important by CEO’s than by marketers, and the same applies on marketers’ ability to make experts work together. And, oh yes, CEO don’t like marketers’ conviction power too much ... This one looks like a “give me a break” statement to be honest.On the other side, and again quite surprisingly, CEO’s value creativity much more than marketers do, and they want marketers to rely more on intuition – that is definitely one to take home tonight.Empathy is also far more valued by CEO’s than by marketers.And bad news for those who think that marketers are sometimes arrogant: they show no intention to change, and CEO’s can live with that !
Marketing became complex, for a while nowThe profile of the marketers has to change to be able to cope with the challenging timesBalance is boring, but it is what we need. We need marketers to balance between sometimes very contradicting skillsHe has to be a Generalist and have an overview on the whole marketing scene. At the same time, as marketing has to be very curious about specialized marketing domains ….He has to be creative, we want him to look at thing s in a different way, makes links, use past experience in other situations …. At the same time he has to love numbers and understand the importance of in depth quantitative analysis.Marketing is a tough discipline, strict timings and processes are required. But it might be necessary to have guts, … so if you have an idea, convince the board and get it done, realize in a short term because the opportunity is there and now.Marketers need hard skills (f.i. MPM; CRM; Nielsen, GFK, …) but has to be good communicators, good intuition, build bridges internally…..Humility is important: listen to experienced marketers, but certainly to the consumer. At the same time: have a own vision and clear conviction, be able to make choices.Last but not least: we need passionate marketers who understand what the business is about. One that knows where the business is going ….End with : Agility & creativity might be more important than knowledge
That’s a lot of skills that need to be developed, and the question is “how” ?We believe, and we believe it because we see it happening time after time, that a combination of variety in assignments, continuous training, coaching, and experience of course, make the trick, and are an excellent way, and probably the best way, to accelerate marketers’ personal development.That’s why we at The House of Marketing have developed the Marketing Talent Development Program, that combines these 4 blocks in a unique way. It will start in September. You came here to isten to the results of the Yearly Marketing Survey and not to a sales talk for our new product so I will say no more now, but if you are interested my colleagues and I will be around and more than happy to answer your questions.