IMD Biennial 2014 Piskorski
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Transcript of IMD Biennial 2014 Piskorski
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Does Your Business Need a New Strategy?
… or what has the Digital World doneto the Customer Decision Journey
@mpiskorski Professor of Strategy and Innovation at IMD
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2© 2014 Mikołaj Jan Piskorski
Special shout out to Rafael Cano-Castillo (@rcanocastillo)
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3© 2014 Mikołaj Jan Piskorski
2,819,482,983
How many Internet users are there?
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4© 2014 Mikołaj Jan Piskorski
EuropeNorth AmericaLatin AmericaMiddle EastAfricaRest of AsiaChina
And they are all over the world…
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5© 2014 Mikołaj Jan Piskorski
… and now they spend more time on the Internet than watching TV…
2010 2011 2012 2013 -
1
2
3
4
5
All online TV Radio Print
Hou
rs p
er d
ay
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6© 2014 Mikołaj Jan Piskorski
… and they love to interact socially, search, read content, and email…
Social Platforms 22%
Search 21%
Reading content 20%
Email 19%
Multimedia 13%
Online shopping
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7© 2014 Mikołaj Jan Piskorski
… those who interact socially online are young and old…
15-24 25-34 35-44 45-54 55+0
50
100
150
200
250
300
350
400
450
Male Female
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8© 2014 Mikołaj Jan Piskorski
… social interaction is not necessarily what you think it is…
View profiles and pictures of friends
35%
View profiles and pictures of stangers
35%
View own profile9%
Add con-tent to
pro-files 8%
Add or
delete friend
s8%
E-mail5%
Percentages of all unique action clicksexcluding navigation, platform and IM
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Remember when we could control what information customer got?
… this gave rise to the marketing funnel
Awareness
Familiarity
Consideration
Purchase
Loyalty
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10© 2014 Mikołaj Jan Piskorski
But now customer can roam freely on the internet...
… driving her own Customer Decision Journey talking to many other people
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… or the more complicated version…
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… but really the point is that it’s no longer a funnel
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Implication for your business:
You have to be…
… here… andhere
…and also here
… and here
… and again
… here too
… andhere
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14© 2014 Mikołaj Jan Piskorski
Share of socially generated e-commerce revenue:
Global excluding China
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Fortunately, you do not really have to be everywhere:
Consider mobile phone service
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16© 2014 Mikołaj Jan Piskorski
You just need to understand what your customers’ journey is:
% of users in market who bought a product after they saw it on Facebook
Automotive
Food
Financial services
Travel
Alcoholic beverages
Personal care
Healthcare
Nonalcoholic beverages
0 5 10 15 20 25
Percentage of social network users
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How do we meet the customer along the customer decision journey…
… and have others talk about us?
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Consideration stage:
Pinterest!
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19© 2014 Mikołaj Jan Piskorski
Consideration stage:
Engagement rates
70% female one in five women in the US is on Pinterest
28% household income over $100,000
40% are 35 years old and over
Spend 16 minutes on Pinterest per day vs. 12 minutes on Facebook
80% of them buy something they pinned
40% of them buy something they saw pinned
5% of referral traffic to apparel sites comes from Pinterest!
Average purchase
– via Facebook $80
– via Twitter $69
– Via Pinterest $175
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20© 2014 Mikołaj Jan Piskorski
Consideration stage:
Friends recommend American Express to their friends for free
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Evaluation stage:
Blair Fowler aka JuicyStar007
http://www.youtube.com/watch?v=0nGsMWnmbbk
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Evaluation stage:
Blair Fowler aka JuicyStar007
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Evaluation stage:
She is not the only one
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Buying stage:
WeChat in China
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Buying stage:
Twitter buy button
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Experience stage:
Nike’s ecosystem
Nike’s devices collect data
Phone/Computer
Online social
platform
Twitter/Facebook
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27© 2014 Mikołaj Jan Piskorski
Experience stage:
GE Industrial Internet
General Electric invested $250,000,000/year over 4 years into industrial Internet
– Turbines now have 100 physical sensors and 300 virtual sensors to help customers identify problems before they occur and improve fuel efficiency
– A turbine generates over 500GB of data per day which General Electric uses to build its next generation turbines
– 1% efficiency increase = $20,000,000,000 per year in savings for customers…
Even if GE only captures 10% of these savings, ROI is very high!
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28© 2014 Mikołaj Jan Piskorski
Loyalty Stage:
Merging CRM data with social data
Facebook has emails andphone numbers
of its users
Your CRMhas emails and phone numbers
of your customers
Custom audiencecan be exposed
to advertisingon Facebook
or Twitter or LinkedIn
Use your own loyalty program to see if those
who were exposed reacted(great for offline purchase)
No wasted advertisingmeans higher ROI
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29© 2014 Mikołaj Jan Piskorski
To sum up
Online > TV
– Customer is now free to roam
Online = Social + Search + Content + Email
– Meet the customer where she roams and put sign posts
– Have others meet her there too and have them put sign posts
Many touch points are required to cover the journey
– Not just Facebook page and Google Ads
Change the product to fit this new environment
– Bake the journey directly into the product to generate insight and loyalty