After the recession. How are European companies fighting back?

1. After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014

2. First, some warnings • Content is practical • Basis is experience, not academic • And based on the fact that I am still learning • Some background and then some examples • Happy to take questions

3. A little about me • Early career in travel – both business and consumer • First Commercial Director for Virgin Trains • 15+ years in professional services sector • Firms to €400million t/o and 3000 people • Consultant to range of businesses, leading marketing and change

4. My other roles • Board member and Chairman, Chartered Institute of Marketing (2007 to 2014) • Board member and Chairman, European Marketing Confederation (2008 to date)

5. European Marketing Confederation • Marketing associations across Europe • Based in Brussels • Sets standards for profession • Shares good practice between members • Content provider for member associations • EMCQ - common qualifications framework

6. What’s the context? What’s happening in Europe? • Growth still very weak • Inflation fell to 0.4% in July (ECB target 2%) • 5 EU countries in negative growth • Some bright spots – Ireland, Latvia, Lithuania • And outside the Eurozone – Hungary, Poland, Great Britain • For marketers in all businesses – pressure to perform

7. Marketing orientation – even more important than before • Establishing the market need • Designing a response to that need • Distributing/communicating a product or service • Delivering customer experience • Not the preserve of private companies. Equally applicable to government sector, charities etc

8. What can happen if you get it wrong? • Decline is inevitable • That speeds up in changing markets • And even more so in the digital age

9. How to get it wrong – and right again • Founded 1884 in Leeds, northern England • Grew for over 100 years • Reputation for value and innovation and as a great employer • 1953 – ‘The customer is always and completely right.’ • A brand to aspire to be like, notably in retail

10. What went wrong? • No customer based strategy. For example - uncoordinated international expansion • Poorly managed switch to international sourcing, aggressive buying policies • Competition at both top and bottom of its markets • No true marketing orientation • Recession

11. What’s changed? • Focus on the voice of the customer, significant effort • Customer voice as the driver for everything • Market positioning that reinforces that • Practical change to offering

12. And the impact? • Recession caused decline but….. • Turnover back, above former levels • Profit around 50% of best years • Sentiment improving • … but lasting damage

13. What does all of that look like?

14. Digital world – a way to marketing orientation

15. Digital – driving reputation for a service company • 2010, started with an Icelandic volcano – providing information • Now service support – 24/7, 10 languages, all in one hour • As an example, ‘Meet and Seat’ • Facebook – 4.7m followers, 4% engagement • Multi-platform – Twitter, Instagram….

16. Digital – more than reputation • Three pillars – reputation, service, commerce • Very personal – ‘What I need now’ • Very fast – 1 hour or less • Expectations getting higher and higher

17. And digital can be used to change sentiment

18. And what does KLM say? • Complete change in customer engagement • Using database to drive service changes • Social based marketing campaigns – seven times better rate of return

19. And what more does KLM say (but might rather not)? • The dog is an actor • Keep social ‘honest’ • www.keepsocialhonest.com

20. Change in communications landscape – it’s real • Every European country, print in decline (not Germany) • TV varies hugely by media market • Online growth in every country Source: Publicis

21. For some, digital is a real threat • Some models rely on other channels • As an example, luxury travel market • Built on a knowledgeable adviser, quality experience • Does the internet destroy all that?

22. Kuoni • Swiss – founded 1894, strong across Europe, particularly in Britain, Switzerland, Scandinavia • Mixed direct and agency sales • Travel more commonplace – and much more self-service • Needed new positioning • Really strong brand equity, needed to work harder

23. Kuoni – improving direct sales experience (fewer quality agents)

24. Kuoni – advertising to reinforce strengths, extend distribution channels

25. Kuoni - outcomes • Context of weak international market • 27% improvement in income • Key elements – greater control over distribution, improvement in sentiment amongst essential markets

26. Seeking out a niche • Insurance, a market where most do everything • RIAS, launched 1992 as ‘over 50s’ specialist • Allowed building processes and data for that segment, eg claims handling • Heavy reliance on ‘old fashioned e-mail’ • Contact centre culture built on quality conversations

27. RIAS - results • Renewal rate almost twice that of competitors – for same age group • Customers buy 2.1 policies a year (compared to 1.2)

28. RIAS – what does it look like

29. And how can not-for-profits fight back? • Many of the same tools and techniques can be used • Background – charitable giving under pressure • Competing pressures for money • Western governments leaving more social care and support with charities

30. Making the medium the message

31. Simple but creative • A problem most of us see every day • Irritating to us, but imagine if you were blind • 24% click through rate • Almost four times more likely to donate • In digital, the best are still very creative

32. In conclusion – what have we learnt • Some companies buck the trend • Thinking and planning are the key • Creative still a vital part of what we do • Common theme – thinking from the customer perspective, or marketing orientation • Understanding your market is everything

33. Thank you for listening • What are your stories? • What are your questions? Andrew Harvey + 32 2 742 17 40 aharvey@emcoffice.net andrewqharvey

34. After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014