Michael Stich | CGO |

2 3/8/2013

Our Conversation

• How is Digital evolving?

• How does Brand Building change?

• How does the role of Marketing change?

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02/22/13

3

How is Digital changing?

Even more consumer control.

4 3/8/2013

The Consumer Has Even More Control

Desire for: Convenience,

Choice, Value, Efficiency,

Service, Flexibility,

Relevance, Reliance

THE CLOUD

USER INTERFACES

MOBILITY/LOCATION AWARE

ARTIFICIAL INTELLIGENCE

DYNAMIC PERSONALIZATION

SOCIAL NETWORKING

+ = Control

5 3/8/2013

A Lot Has Changed in 10 Years 2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

6 3/8/2013

Personalization

Geo-Fencing Gamification Augmented Reality

Mobile Apps

Website Email/CRM Search iMedia/Display

Image Recognition Wearable Computing HTML5

APIs Endless Aisle

New Tools Crowd the Marketer’s Toolbox

7 3/8/2013

Integrate third-party data and

services into your ecosystem.

Offer more convenience to

consumers.

Walgreens integrates third-party

apps and services tied to pharmacy

prescriptions and phone-to-print

photo services.

APIs

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Augmented Reality

Add a digital overlay to

real-world products and places.

Display additional content (video,

reviews, social posts) and add

interactivity.

Heinz partners with blippar to

provide digital recipe books and

chances to win prizes.

9 3/8/2013

Endless Shelf

In-store shoppers browse

and buy from a virtual display.

Extend the advantages of

e-commerce and unlimited

merchandising to the store.

Tesco allows toy-aisle shoppers

to view all products and order for

home delivery.

10 3/8/2013

Gamification

Incorporate gaming elements and

rewards to incentivize shoppers.

Create differentiated shopper

experiences and add loyalty.

Sneekpeeq offers discounted

home, fashion and beauty

products with rewards/badges for

site usage, sharing and

purchases.

11 3/8/2013

Geo-Fencing

Deliver location-based offers as

consumers are near or within a

store.

Send personalized offers based

on consumers’ location, time,

preferences and history.

Best Buy partners with Placecast

and SocialVibe to display offers

and suggested products as

shoppers enter 1,000+ stores.

12 3/8/2013

HTML5

Enable rich mobile Web experiences that

run on any device via standard browser.

Extend the link economy to apps.

Embed audio/video and geolocation

features and enable offline browsing.

Apple leverages HTML5 to add greater

interactivity to their website experience.

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Image Recognition

Enable consumers to search for products

and information via their phone camera.

Reduce friction in the path to purchase and

enable “see it and buy it now” commerce.

Flow Powered by Amazon gives users

access to 10 million+ products with reviews,

descriptions, audio/video clips and instant-

purchase options.

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Mobile Apps

Apps provide specific software

functionality to run on a smartphone

or tablet.

Brands, retailers and third parties

address shopper need states via

targeted applications.

Starbucks app offers customers the

ability to track rewards points, send

eGift Cards and pay via mobile.

15 3/8/2013

Personalization

Know and reinforce your customers'

preferences across touchpoints and

platforms.

Consumers will grant loyalty to

brands that maximize relevance

and convenience.

ESPN captures fan preference for

leagues, teams and players and

elevates relevant content on Web

and mobile platforms.

16 3/8/2013

Wearable Computing

Miniature computers for specific

purposes are worn on the body.

Enable constant interaction

between the individual and the

computer for seamless

communication.

Nike and Fitbit have taken the

lead in wearable computing for

health and fitness. Apple is

rumored to launch iWatch soon.

Google Glass is not yet in beta.

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• Multi-retailer comparison shopping

• Price comparisons

• Ratings and reviews

• Loyalty/rewards programs

• Social sharing

• Consumer feedback sites

• Enhanced product info (health, allergy,

environmental)

• Promotion aggregation

New Companies Delivering Consumer

Control

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02/22/13

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We know that digital gives the

consumer control.

But who is she, what does she want, and

how do we deliver it?

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02/22/13

19

How does Brand Building Change?

A Familiar Framework, Transformed

WHO

WHAT HOW

20 3/8/2013

Listening Was … WHO

WHAT HOW

21 3/8/2013

WHO

WHAT HOW Listening Is …

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Every customer leaves a digital fingerprint based on their search behavior. Use search

science to dissect those graphs to get the clearest picture of consumer need states

and behavior.

Intent Graph: What I Need

What consumers need now. Real-time needs centered

around a product or service.

Proximity Graph: What’s Around Me

How a consumer’s digital behavior informs his

or her off-channel behaviors and purchase decisions.

Interest Graph: People Around Me

It’s about a consumer’s interest and hobbies, and how

he or she is influenced by others who share similar interests.

WHO

WHAT HOW Search Reveals Consumer Intent

23 3/8/2013

Smart Data Over

Big Data

• Focus on actionable data tied to

consumer need states and

success outcomes.

• Analyze one source at time and

build out profiles in layers.

• Apply insights to personalize

experiences.

WHO

WHAT HOW

What is your brand equity now

that it’s co-created by consumers?

25 3/8/2013

WHO

WHAT HOW Reciprocal Signals

• There is a two-way flow of information between marketers and consumers.

• Consumers also signal brand feedback out to their social networks.

26 3/8/2013

Digital Helps Consumers Shape Equity

Bankrupt

Old

Expensive

Delays

Late

Sucks

Cheap

Fun

Ding

Friendly

Inexpensive

Budget

Source: BrandTags.net

WHO

WHAT HOW

27 3/8/2013

Personalization: Unique to Me

Consumers expect marketers to remember their

preferences and habits.

• Search history

• Browsing behavior

• Location

• Purchase behavior

More than 50% of shoppers say retailers they

frequent should offer promotions or merchandise

that reflects their past online purchases.

Personalization makes your brand more relevant.

Source: eMarketer.com

WHO

WHAT HOW

28 3/8/2013

Creative Evolution Breaking through

the Digital Blur Big idea + big innovation

“Authenticity”

Viral = self-expression + easily shared

Relevant and scalable across platforms

WHO

WHAT HOW

How are marketers evolving their

ecosystems for the consumer?

30 3/8/2013

Personas Journey Mapping

Create a holistic

consumer experience

with your product and

service across pre-tail,

retail and post-tail.

Identify gaps, points of

frustration or moments

of truth to remedy

through digital

innovation and cross-

functional collaboration.

WHO

WHAT HOW

31 3/8/2013

Digital Enables Immersive, Consensual

Brand Exchanges

Online

Mobile

Traditional

Shopper Marketing

WHO

WHAT HOW

32 3/8/2013

Traditional

• Marketers move beyond QR codes.

• A/R adds digital discovery to

magazines, catalogs, circulars and

product packaging.

• Image recognition speeds print-to-

Web or print-to-mobile transfer.

• Video replaces white papers.

WHO

WHAT HOW

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Online

• More personalized

• Emphasis on UX

• Responsive design

• APIs extend content and

purchasing

• Social trending content

• HTML5

• Micro ad targeting

• Daily deals

• Load to card coupons

WHO

WHAT HOW

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• The shopper’s concierge

• Geo-targeting

• Mobile coupons

• App store optimization

• Third-party integration

• Store and aisle mapping

• Rise of the tablet

• Buy on the fly

• Assisted selling

Mobile WHO

WHAT HOW

35 3/8/2013

Social

• Check-in rewards

• Rise of image sharing

• Social TV

• Social commerce

• Facebook Open Graph

• 6-second video

• Companies integrate social into

services; no longer just a channel

WHO

WHAT HOW

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Search Engines

• Schema.org

• Google updates: Penguin, Panda

• Image search

• Video search

• Local search optimization

• Semantic learning

WHO

WHAT HOW

37 3/8/2013

Shopper

Marketing • In-store touchscreens

• Mobile coupons

• Mobile payments

• Click and collect

• Store and aisle maps

• A/R product info

• Mobile shopping walls

• Product subscriptions

• Auto-replenishment

WHO

WHAT HOW

38 3/8/2013

Ecosystem

Integration Combine each component by

marketing objective

Evolve to become more:

• Personalized

• Portable

• Two-way

• Pervasive

• Non-linear

WHO

WHAT HOW

Web

Local

Mobile Offline

Shopper

Marketin

g Store

Social

WHO

Search

39 3/8/2013

What’s Next?

• Social for content distribution

• Hyper-local

• Facial and Gesture recognition

• Internet of things

• Real-time store analytics

• Personalized, predictive shopping lists

• Wearable computing complements phones

• Endless shelves in store

• Mobile triggers (GPS, NFC, sound, light)

• Personalized pricing/merchandising

WHO

WHAT HOW

How does the role of marketing change?

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Creative

Best Practices

Brand Readiness

and Planning

Customer

Team Support

Corporate

Brand Steward

Agency

Relationships

CMO Marketer

Digital Changes Marketing: Yesterday

42 3/8/2013

Creative

Best Practices

Brand Readiness

and Planning

Customer

Team Support

Corporate

Brand Steward

Agency

Relationships

Technology

Relationships

Community

Management

Data and

Business

Rules

Organization Investments CMO

Marketer

Digital Changes Marketing: Today

43 3/8/2013

Brand Planning:

(Research to Co-creation)

mystarbucksidea.com

Public

Relations Ideas

3,500 Community Building

7,000 Social Responsibility

4,000 Community Involvement

Marketing and

Operations Ideas

6,000 Ordering and Payment

10,000 Atmosphere

8,000 Brand

27,000 Drink

5,000 Merchandising

775 New Technology

R&D Ideas

44 3/8/2013

Brand Readiness: From Marketing

to Digital Frameworks

Sell to a Niche

Consumer

Create a

Compelling

Business Model

Dramatically

Improve the

Purchase

Experience

Create a

Compelling

Product

E-Commerce

Strategy Framework Measurement and Analytics

Mobile

O G

S M

Digital Analytics

Analytics Architecture

Business Measurement

Optimization

Automation

Predictive

SMS

WAP

Proximit

y

QR

Codes

Apps

AR

45 3/8/2013

…and unlocks the potential for unique offerings

based on new drivers of value

Awareness Consideration Purchase Loyalty D

igit

al

Off

lin

e

Display Search

Social Video Site Mobile CRM

Marketing

Objectives...

…Achieved

Through

Multichannel

Experiences…

Outdoor DM Promotions

Store Loyalty

Programs

…Consisting

of Unique

Offerings…

Content Product Service Pricing Offering

…Based on

New Drivers

of Value. Personal-

ization

Exclusivity Preference Choice Community

Collaborative Commerce: An Emerging Playbook for Brands and Retailers

46 3/8/2013

External Relationships: Integration With Start-ups & 3rd Party Developers

• Can’t do it yourself

• Informing start-up relationships

• Integration to third-party apps and platforms

• Look for technology, content and marketing

partnerships

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External Relationships: Collectives and Partnerships That Go Beyond

Agencies and Vendors

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Budgeting for Next (Not Was)

• Move investments out of the digital

channel silo.

• Fund cross-functional teams

organized around consumer

segments.

• Invest surplus funds in new

innovations and prototyping.

• New hires to acquire new skills.

49 3/8/2013

From Navigating to Leading

• Vision

• Create Consensus

• Appreciation for other functions

• Incentives for collaboration

• Act as business owner

Respect that the consumer is in control.

50 3/8/2013

Meet the Newest Members of

Your Marketing Team …

Data Scientist Marketing Technologist Content Strategist

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Summary

• Consumers gaining even more

control

• Brand building: same approach, new

tools

• The role of Marketing: the imperative

to lead

About Rockfish

53 3/8/2013

Rockfish is a digital innovation partner focused on growing business by leveraging technology to create relevant and engaging communications platforms that span all customer touch points.

CEOs CIOs

COOs

CFOs

CMOs

Digital Innovation Partner

54 3/8/2013

App Store Best of 2012 “Hidden Gem” for iPad - The Layover

Agency A-List Top 10 Agencies #3 on A-List/Winner of Inaugural Small Agency of the Year

Inc. 500 Fastest-Growing Companies

Top 10 Intranet in the World MyWalmart.com

Agency of the Year Best Web Design and Development

Best B2B Innovation for Marketers Media Vanguard Awards - CouponFactory

Recognition

© ROCKFISH DIGITAL 2013

Michael Stich, CGO, Rockfish

michael.stich@rockfishdigital.com

Thank you!