iMedia March Brand Summit: Insight Presentation Beyond Reach

1. Insight Presentation:
“Beyond Reach:
Aligning with a Changing
Consumer Decision Journey”
iMedia Conference presentation
March 8, 2011
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company is strictly prohibited

2. Today’s marketing
more, and more, and more…
McKinsey & Company | 1

3. Well, it is MORE! and it has to be NOW! — It’s not an incremental
change
Access NOW!: Information NOW!:
When, where, and how they To help them save, get the
want best
Content NOW!: Input and Empowerment
To filter, control, and shape NOW!:
To share and feel recognized
McKinsey & Company | 2

4. 1. It starts with a complete story across the Customer Decision Journey
Evaluate
Bond
Consider Buy
Advocate Experience
McKinsey & Company | 3

5. Most shopping journeys are rarely supported as an integrated loop
80% of use cases
Evaluate broken across
brands in
Consumer
electronics, Fin
services,
Telecom
Bond
Consider Buy
75% of
budget on
“Consider” Advocate Experience
and “Buy”
across
categories
McKinsey & Company | 4

6. Key influence points often obscured by beliefs about channels – in this
example, Amazon.com is most important “Marketing” touchpoint
Share of influence on purchase if
purchased in store (Percent)
100
Other
OOH
Offline conversion
4
Someone’s
home
Print media
TV ad
Digital 64
23
Amazon.com
In-store
McKinsey & Company | 5

7. Inconsistent, rapidly scaling content required a serious “supply chain”
redesign – are you also a multi-media company?
McKinsey & Company | 6

8. In the store, needed to rebalance the “shopper media” controlled by the
retailer through smartphone access
McKinsey & Company | 7

9. New customers immediately drawn into ongoing dialogue, fostering
reviews, advocacy, and direct, “opt-in” channel
McKinsey & Company | 8

10. 2. Turn data into content, content into data, and both into more of each
What
they
see
What you
know What
about them, they say
personally
What
they do
What you
learn about
the
community
McKinsey & Company | 9

11. Data into content: aggregated competitor quotes are not only a service,
but also a strategic decision driver
McKinsey & Company | 10

12. Content into data: thousands of conjoints per hour
McKinsey & Company | 11

13. Comcast’s social accessibility is turning service issues into advocacy
content
1.5+ MM
views
▪ 40-50 PR threats posted on blogs each day; Comcast
replies via phone or e-mail – spurs new posts with
positive comments and led to removal of sites
“bashing” the brand
▪ Monitors ~1,000 tweets per day to alert local systems
on real-time issues (e.g., outages) and warn call
centers about incoming volume
McKinsey & Company | 12

14. 3. Reconstruct the CDJ for your advantage:
distribute your presence, integrate the core, activate the engaged
Integrate with your
physical channels
Enable
commerc
e more Turn every
broadly transaction
into a
relationship
Build a presence
where the
discussions
happen Help users
become rock
stars
Engage in key
conversations Unleash
advocates
McKinsey & Company | 13

15. Radical changes as designers and specifiers move online –
multiple opportunities for feedback loops and shaping the decision
journey
Professional ▪ Spec sheets, IES files, etc. in “resources” section
society ▪ Publish unbiased news on trends, host webinars
websites
Social media ▪ Support discussion with expert commentary
sites
▪ Respond directly to comments and questions
Online
▪ Track discussion topics to identify trends
discussions
News and
update ▪ Syndicate our news and host blog from in-house
expert
websites
▪ Provide examples of ground-breaking lighting design
Inspirational ▪ Showcase designs & designers we like
websites
Useful affiliate ▪ Imbed images and case studies within Flickr groups
websites ▪ Create specific group that includes inspirational photos
McKinsey & Company | 14

16. Customers as channels:
image search sites are emerging as new sources of inspiration
“More and more I’m using
digital shots. They’re
easier to slot into my
presentations.”
– Specifier
“I go to manufacturer sites
and Google for images. It’s Now placing own
important to see how images within Flickr
people are using these lighting groups
products.”
– Designer
McKinsey & Company | 15

17. Web site transformed into dynamic, customer-fed engine backed up with
new inside sales group using phone and social tools
FROM . . . . . . To
Online catalog of marketing and Customer-fed, impactful stories
technical materials linked to tools and connections
CUSTOMER
Case studies Product catalog
1. Case studies
CUSTOMER (fed by clients)
4. Click to chat
2. Product
catalog
(ranked by
Photometric data Request info 3. Photometric data clients)
McKinsey & Company | 16

18. To be where customers need them, they syndicated specs into key CAD
programs and have built an advantaged position
ONL Architects used Autodesk 3Ds Max
design software for CET Budapest
Lighting
specs and
tools
embedded in
others’
drawing
applications
SOURCE: Press search; CET Budapest McKinsey & Company | 17

19. Support for distributors and other app builders expanded points of
contact
An engine that
serves data and
content into
distributors’
sites and apps
McKinsey & Company | 18

20. More than alignment:
a virtuous cycle of data, content, opt-in access, and advocacy
Evaluate
Bond
Consider Buy
Advocate Experience
McKinsey & Company | 19

21. Summary questions
Are your marketing plans focused
1 on push, or on shaping the CDJ?
2 Do new have plans andcontent,
for
you
roles, such as
budgets
software, and product meta-data
mgmt?
3 Do you know which
battlegrounds to co-opt?
4 Are you building the data
virtuous loops to fuel
and content?
5 Does your marketing roles
organization reflect new
and goals?
McKinsey & Company | 20

22. David C. Edelman
Global Co-Leader,
Digital Marketing Strategy
Practice
david_edelman@mckinsey.co
m
McKinsey & Company | 21