The New Data Revolution: Reshaping Marketing Strategies

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

2. Maxims for Marketing Strategy • Help Customers make BETTER DECISIONS • Empower Customers to be INDIVIDUALS • Create Social PLAYGROUNDS • Use the MOBILE as a TWO-WAY Device • ConteXtis King What is above all of this?

3. Data = Digital Air

4. 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. 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

7. Social Data Revolution Howthe Changes (Almost) Everything

8. 1970’s BuildingComputers

9. 1980’s ConnectingComputers

10. 1990’s ConnectingPages

11. 2000’s ConnectingPeople

12. 2010’s ConnectingSensors

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

14. MM

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

16. 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

18. Consumers- Engage- Share- Connect3 times per week SEM: “Social Engagement Marketing”

19. Track Movement Flows

20. 40 Billion RFID Tags Worldwide

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

22. Monitors your excercise and sleep

23. Instrumenting Cities – New York

24. 18 Nov 2010 San FranciscoMayor’s Office Signing Ceremony for Open Data Legislation

25. B. Distribution • Distribution is now distributed

26. Commenting  Distribution  Attention

27. … personalizes any page

29. C. Consumption • Attention • Belonging • Conversation

30. Fundamental Shift in Communication

31. Identity? private public

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

33. How do you know peoples’ secret desires?

34. Audience • B2B: Boring to Boring Lindstrom 2010

35. Customers who boughtthis item also bought…

36. Customers who viewedthis item also viewed…

37. Customers who viewedthis item ultimately bought…

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

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

40. Combine implicitand explicitdata

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

42. Case study: What data fortargeting of a new phone product? • Traditional segmentation • Demographics • Loyalty • Connection data • Who called who?

43. 1.35% Adoptionrate 4.8x 0.28% • Traditionalsegmentation • Connection data

44. Company Customers

45. Audience

46. Amazon.com Share the Love

47. Result:Amazingconversion 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)

48. Purpose of communication:to transmit information? Or is information justan excuse for communication?

50. Help customers make better decisions together