THE BUTTERFLY effect Presented by Funky Business for ECEW 2010

“Everything is dependent on

everything else, everything is connected, nothing is separate.” Georges Ivanovitch Gurdjieff

Math & Music

Art, Science & Literature

All speak in symbols

Habit & Character

The Butterfly

Effect Small differences within complex systems may

produce large variations, hard to predict.

Ready to flap your wings…?

"Daring ideas are like chessmen moved

forward; they may be beaten, but they may start a winning game.”

Goethe

So how do we work around this

theory when it comes to customer

experience?

To what extent should a brand

consider the butterfly effect when

developing its strategy?

o Even if not of equivalent value, all

touch points make the overall

experience of a customer,

influencing the internal and

subjective response he/she has

towards your brand

o All company functions play a key

role in this experience: marketing,

service operations, product

development, information

technology, human resources,

accounting etc

All things are connected

Little things are magic simply because they

can make a huge difference at the end.

Little actions affect the whole experience.

How do we listen?

the company, the context, the consumer

• Increased level of customer awareness, shrewdness

• Consumers scepticism (even cynicism) towards classic marketing communications (the ‘monologue’ type)

• Increased activism of communities that start dominating brands

• Companies starting to lose ‘ownership’ of their own brands

• Stringent need of innovation and flexibility

• Current climate of financial and economic crisis

ENTERTAINMENT = EXPERIENCE = ENGAGEMENT

CASE STUDIES

DAVID GOLIATH

a few which

prove that is now

CASE STUDY #1: Horizon Realty vs. “Moldy” Tweet

On May 12, Amanda Bonnen, who was living in this Chicago apartment

block, sent this message on Twitter:

Small thing… One insignificant

customer not pleased with a company

service.

How could it possibly end up then with

this Chicago Reader statement:

“For its troubles, Horizon has been roundly proclaimed as the dumbest

company on earth… the reputational verdict is already in, and, Horizon, you lose.”

CASE STUDY #2: Ford Motor Company vs. TheRangerStation.com

The Ford Motor Company adopted a similar heavy-handed, old school approach, when

sending ‘cease and desist’ letters to its fans…

CASE STUDY #3: Burger King vs Caleb Kramer (aka TheBKLounge)

Or how BK became one of the 40 Best

brands on Twitter without having to lift

a finger.

CASE STUDY #3: Burger King vs Caleb Kramer (aka TheBKLounge)

Ryanair freaking out at blogger

and a funny one…

If you haven’t done it already, do change your mind frame from:

• "Consumers don’t know what they want until we tell them.”

• "Let's launch campaigns and literally bombard our target markets with messages.”

• "If we listen to our customers they'll tell us what they want. If we listen hard enough, we can create better products/services for them.”

• "Let's engage our customers via dialogue, personalized, relevant (and respectful) communications and (benefic) experiences.

Let’s invite them to actively participate with our brands via blogs, virals and other social media sites.”

to:

How do we respond?

The customer experience: THE 3R

‘3 is a magic number’

discovery experience

digital experience

live and communication experience

user experience

community experience

employee experience

http://www.fb.ro/newsletter/200807/the-party-500-post-event.html

Relevant

Right

Real

Pioneers in experiential marketing on the local scene

Key differentiators for our type of expertise :

• Combines all forms of expression of the 7 arts with an incredible number of other disciplines from the fields of design and science.

• Multi sensorial marketing (5 senses and more…)

• Engagement of the audience, facilitation of interactivity, feedback, customer expressions

• Addresses relevant communities of opinion leaders, selecting Brand ‘Ambassadors’

• Generates WOM, building emotional loyalty/advocacy.

• Implies real and virtual experiences complementing each other.

‘Experiential marketing will make – or break –

the brands of the future’

• Marketing as we now it jumped the shark in 2004. Mass media no longer serves - nor

holds - the interest of the enlightened and highly empowered consumer

• To succeed brands and businesses need to create genuine emotional connections

with the communities and networks they live in.

• It’s a discipline like ‘kinetic theater’ - with consumers participating in an ever fluid

performance, with the audience being an active and integral member of the

performance it self.

• Much like a good play it takes the audience to a branded place where the senses are

heightened and emotion overtakes reason.

Experience providers - Apple, Nike, Starbucks, American Apparel, Harley Davidson -

versus ‘older’ companies such as Coca Cola, Nokia, Microsoft - perceived as still

playing the brand game

‘Experiential marketing will make – or break –

the brands of the future’

• Is authentic. And this mobilizes the marketplace

• Is based on engaging people in memorable ways

• It empowers the individual consumer and unleashes the power of

grassroots evangelism

• It delivers relevant communication to consumers only where and

when they are most responsive to them

• It succeeds using all types of innovation to reach out to consumers

in creative and compelling ways

• It can achieve total suspension of disbelief, as a good movie can.

the ‘Experiential marketing’ expert

Masters the following 6 essential aptitudes:

1.Design

2.Story

3.Symphony

4.Empathy

5.Play

6.Meaning

‘aptitudes that make a ‘high concept’ and a ‘high touch’.

High concept = the capacity to detect

patterns and opportunities, to create artistic

and emotional beauty, to craft a satisfying

narrative, and to combine seemingly unrelated

ideas into something new.

High touch = the ability to empathize with

others, to understand the subtleties of human

interaction, to find joy in one self and to elicit in

others and to stretch beyond the quotidian in

pursuit of purpose and meaning.

Case

stu

dy

# 1

som

e lit

tle t

hin

gs a

re m

agic

http://www.fb.ro/newsletter/200807/the-party-500-post-event.html

outstanding design touches

people’s hearts and makes an

experience memorable

LG 2009 - ‘Design ‘falling in love’ with technology’ dealers conference

Case

stu

dy

#2

the ‘pure

eff

icie

ncy’ experi

ence

Client needs centric

Case

stu

dy

#3 a

lit

tle f

lavour

of

Pro

vence in t

ow

n

Key audiences researched

Bre

ak T

hro

ugh C

onventi

onal M

edia

To G

o A

bove

Sale

s Fo

recast

By

73%

www.facebook.com/Cat.costa.linistea

Case study # 4

When you think you are too small to

influence anything, remember the

butterfly effect.