1. Andreas Weigend @aweigend www.weigend.com The New Data Revolution: Impact on Marketing Strategy HSM Lisbon, 18 November 2010

2. 1. Help Customers make BETTER DECISIONS 2. Empower Customers to be INDIVIDUALS 3. Create Social PLAYGROUNDS 4. Use the MOBILE as a TWO-WAY Device 5. ConteXt is King What is above all of this?

3. Data = Digital Air

4. 5,000,000Web searches 500,000Content shares 100,000Product searches 50,000Tweets created In The Last Minute…

5. A. Production: Everybody creates data. B. Distribution: Everybody shares data. C. Consumption: Everybody uses data.  The study of the consumer has changed  The consumer has changed

6. … bridging the physical and the digital It’s about…

7. Where Are Decisions Made? Brick and mortar Web Mobile Trust? One-way push vs two-way communication?

8. Who Do Consumers Trust? Experts –Reputation based on traditional institutions? –Past actions? Need for persistent identity Peers: People like you –Similar background and situation Friends: People who like you –Real life –Online

9. Social Data Revolution How the Changes (Almost) Everything

10. Building Computers 1970’s

11. Connecting Computers 1980’s

12. Connecting Pages 1990’s

13. Connecting People 2000’s

14. Connecting Sensors 2010’s

15. Smartphones Capture context and situation - Ambient sound, light - Geo-location (place, movement) Allow for lightweight interactions - Micro-tasks (annotating) Attached to a person

16. Underlying?

17. MM

18. Biology: ~100k yrs Social Norms: ~10 years Data, Technology: ~1 year Time Scales

19. A. Creation / Production The amount of data a person creates doubles every 1.5 … 2 years after five years  x 10 after ten years  x 100 after twenty years  x 10000

21. Consumers - Engage - Share - Connect 3 times per week SEM: “Social Engagement Marketing”

22. Track Movement Flows

23. 40 Billion RFID Tags Worldwide

24. Pay-as-you-drive car insurance (GPS)

25. Monitors your excercise and sleep

26. Instrumenting Cities – New York

27. 18 Nov 2010 San Francisco Mayor’s Office Signing Ceremony for Open Data Legislation

28. Distribution is now distributed B. Distribution

29. Commenting  Distribution  Attention

30. … personalizes any page

32. Attention Belonging Conversation C. Consumption

33. Fundamental Shift in Communication One-way  Two-way Asynchronous  Synchronous Planning  Interaction List  Flow Private  Public

34. privatepublic Identity?

35. Imagine... You knew all the things people here have bought... what would you do? You knew all of their friends You knew their secret desires

36. How do you know peoples’ secret desires?

37. Audience C2B: Customer to Business C2C C2W B2B: Boring to Boring Lindstrom 2010

38. Customers who bought this item also bought …

39. Customers who viewed this item also viewed …

40. Customers who viewed this item ultimately bought…

41. …based on reviews Goal: Help customers make decisions…

42. … based on clicks and purchases Goal: Help customers make decisions…

43. Combine implicit and explicit data

44. Situation Geo-location Device Attention Clicks, Transactions Intention Search Connection Social graph User generated Reviews Sources of Data

45. Case study: What data for targeting of a new phone product? Connection data Who called who? Traditional segmentation Demographics Loyalty

46. Connection data Traditional segmentation 0.28% Adoption rate 1.35% 4.8x

47. Company Customers

48. Audience C2B: Customer to Business C2C: Customer to Customer C2W

49. Amazon.com Share the Love

50. Result: Amazing conversion rates since customer chooses Content (the item ) Context ( she just bought that item) Connection (she asked Amazon to email her friend ) Conversation (information as excuse for communication)

51. Or is information just an excuse for communication? Purpose of communication: to transmit information?

53. Help customers make better decisions together

54. Helping people make better decisions together

55. Co-design, co-create, co-market

56. Fraud reduction: Provide risk scores Social network intelligence

57. Social graph targeting: Provide prospects

58. Audience C2B: Customer to Business C2C: Customer to Customers C2W: Customer to World

59. Amazon.com: Public sharing of interests

60.  Direct mail campaign: $7,500 200 new customers  Billboard ad: $7,500 300 new customers  Tweeter: free shipping 1,800 new customers @garyvee Wine Library

61. is a Broadcast not a Conversation

63. Marketer-generated aware consider buy use opinion share Consumer-generated Funnel Megaphone

64. 2 minsExplain to your neighbor what you do 2 minsHave your neighbor suggest new data sources that might be useful 1 minPick one of them and write it down Switch roles Exercise: What data for your marketing? Talk to your neighbor. Total time: 2 x 5 = 10 mins

65. Where does product knowledge come from? Case Study: Best Buy

66. Who Can You Get To Work For You? 100M Customers 100k Employees 100 Specialists

67. Reduce barriers for contribution Design incentives that work Get Your Customers To Work For You!

68. A useful framework P-H-A-M-E

69. P roblem H ypothesis A ction M etrics E xperiment

70. P-H-A-M-E P roblem H ypothesis A ction M etrics E xperiment

71. P-H-A-M-E P roblem H ypothesis A ction M etrics E xperiment Action

72. P-H-A-M-E P roblem H ypothesis A ction M etrics E xperiment

73. P-H-A-M-E P roblem H ypothesis A ction M etrics E xperiment

76. Power of Community

77. Let Customers Solve Customers’ Problems “Customer Service is the New Marketing”

80.  200k accepted FB event invite  400k viewed YouTube video  379 blog posts tied back to it  Viral buzz: 26% increase

81. World Economic Leaders Community

82. Influencer Marketing? Real life vs

83. Market to influential people… … and then reach everyone else for free

84. Real Life Facebook 38% ≥ 4 links 86% ≥ 4 links 1 2 3 4 Chain length

85. Revenues (US$ Millions)

88. Rooms to Avoid: 01, 21 08, 17 Rooms Ending in: Possible Ice Machine / Elevator Noise Limited View Rooms Corner / Oversized Rooms: 04 24 Oversized, Corner Room, Quiet Room Oversized, Corner Room with North Times Square Views (Higher Floors are Preferred Rooms Ending in:

89. Travelers share their intentions to highlight where you’ve been, to show where you’ve lived, to share where you want to go. Export your travel map to any Web page. Edit your map once Including your Facebook and MySpace profiles and blogs to automatically update your exported maps everywhere Sign in to export your map if you’re already a VirtualTourist member. Click

92. Product Customer Brand

93. From controlled production for the masses… … to uncontrolled production by the masses

94. o How have consumer expectations changed towards creating, sharing, accessing, and controlling data? o o What benefits will customers expect in exchange to permitting your company to use their data? o Ultimately, how can you help people discover products and services, make better decisions, and subsequently participate in the value your customers create?

95. Who talks to whom? Consumers to consumers Who trusts whom? Shift from institutions to individuals Who is in control? From e- business (company focus, Web 1.0) to me- business (customer focus, Web 2.0) to we- business (community focus, Web 3.0)

96. Who manages whom? Move from CRM to CMR (Customer Managed Relationships) Who pays whom? Design incentives for participation and interaction Charge as much as you can  Charge as little as you can? Jeff Jarvis Transaction economy  Relationship economy Shoshana Zuboff

97. Innovation Internal  External “Most smart people don’t work here.” Bill Joy Data Collect and analyze  Create and share Experiments Push and pray  Launch and learn

98. Help Customers make BETTER DECISIONS vs traditional push messaging

99. Help Customers make BETTER DECISIONS Empower Customers to be INDIVIDUALS vs. traditional segmentation

100. Help Customers make BETTER DECISIONS Empower Customers to be INDIVIDUALS Create Social PLAYGROUNDS vs. corporate marketing messages

101. Help Customers make BETTER DECISIONS Empower Customers to be INDIVIDUALS Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device vs one-way push advertising

102. Help Customers make BETTER DECISIONS Empower Customers to be INDIVIDUALS Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device ConteXt is King vs Content is King

103. Help Customers make BETTER DECISIONS Empower Customers to be INDIVIDUALS Create Social PLAYGROUNDS Use the MOBILE as a TWO-WAY Device ConteXt is King

104. @aweigend Andreas Weigend | www.weigend.com Thank you!

105. Andreas Weigend @aweigend www.weigend.com Appendix

107. US 2009 Media consumption time (%) Advertising spending (%)

108. Simple Things to Do and Learn (1): Use RedLaser to understand the power of bringing a vendor into consideration when user is shopping in a physical store Use blippy.com: what is it? why do people do it? What do they get out of if? Search box: Measure intention across channels, differences over time, in response to campaigns, difference between mobile and web

109. Simple Things to Do and Learn (2): Search on Google for Brand: When did you last search for it? – this is what potential customers will see! Facebook LIKE button: powerful reach into other sites, easy to integrate (Facebook connect). – we-business Twitter: Engage with one person (see haas2009.wikispaces.com homework)

110. Simple Things to Do and Learn (3): Ideas generation, feedback AND engagement

111. Facebook Questions

112. Quora Answers

113. Individuals Share

114. Employers Share