Dr Mairead Brady, Assistant Professor of Marketing, School of Business, Trinity College Dublin
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1 Dr Mairead Brady, Assistant Professor of Marketing, School of Business, Trinity College Dublin
2 Dare to be Different do you?
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6 Getting the Voice of the Customer into your Organization Beyond Listening
7 Understanding Social (Media) Networking Reconfiguration of the playing field Welcome to the Chatter
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9 Data, Data, Everywhere! 9 Explosion of data Big Data The Next Frontier (CMO-Council, 2011:3) Data, Data, everywhere (The Economist, 2010) Though 85%of respondents say that information is a Amount (Leeflang, key 2011; strategic Rust et al., 2010) resource only 7%felt that their organizations are well positioned to useinformation as Type (Day, 2011, Verhoefet al. 2009) an asset. (Thompson et al., 2010) (McKinsey, 2011) Frequency (Hopkins and Brokaw, 2011) Data explosion as a universal game-changer: CMOs from outperforming organizations address these This consumer challenges information differently shift will from have other the CMOs. historic and economic significance of the industrial revolution (McKean, 2009) Big data may well become a corporate asset ( ), representing a key basis for competition (Brown et al., 2011, see also Vargo2011) (CMO-Council, 2011)
10 10 Never before have companies had such powerful technologies for interacting directly with customers, collecting and mining information about them, and tailoring their offerings accordingly. And never before have customers expected to interact so deeply with companies, and each other, to shape the products and services they use. (Rust et al., 2010, p. 96) Marketers are being challenged by a deluge of data that is well beyond the capacity of their organizations to comprehend and use (Day, 2011, p. 183) Survey of 1,734 chief marketing officers showed, top challenges for them include data explosion (71%) and social media (68%) (IBM, 2011) Unstructured data Across many platforms Volume of data Unknown sources No control Need quick response
11 Big Data, Technology Mission control Year Data availability 1950 Sample of metrics to address these data Store-level data (bimonthly ACNielsen data) (Relatively small or non-representative) samples of consumer data Customer satisfaction (Arens and Rust, 2011; Luo et al., 2010) More representative and larger samples (Attwood Statistics, Gfk Customer loyalty (Raithel et al., 2011) Awareness (Srinivasan, 2010) 3000 households) (Leeflang and Olivier, 1985) Ad hoc surveys(cross-sectional and time-series data) The scanning revolution(bucklin et al., 1998) Consumer panel data Store-level data Cross-sectional and time-series (panel data) Daily data Internet revolution Internet data (special issue of Marketing Science, 29, 1) Online publications and offline purchases, combined with Web site behaviour (Pauwels et al., 2011) Search engines (Telang et al., 2004) Data from social media (e.g. Facebook, LinkedIn, Hyves, Weblogs) (van Laer and de Ruyter, 2010) Brand community and information website data (Kumar et al., 2010a; Verhoef et al., 2009) Psychological data (see Davenport, 2006) Non-transactional web-data, google analytics (e.g. Urban, 2009) Net promoter score (e.g. Markey et al., 2009) Big data (Brown et al., 2011; CMO-Council, 2011; LaValleet al., 2011) Perceptual metrics (Gupta and Zeithaml, 2006) Transaction-based metrics Customer profitability (Weir, 2008) Customer lifetime value (CLV) (Kumar et al., 2007) Customer equity (Kumar et al., 2010) Web metrics (Farris et al., 2009) Impressions Net reach Average frequency Customer referral value (CRV) Customer engagement metrics (Bijmolt, 2010) Customer engagement value (Kumar et al., 2010) Customer knowledge value E-word of mouth Over 80% of 1700 Chief Marketing Officers (CMOs) surveyed indicate that they are planning to deploy new technologies to grapple with big data (CMO-Council, 2011:26) 11
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17 How do they feel today? Who are they influencing today?
18 Managing Technology in Marketing: MarkITing From Social Networking to Databases
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20 What Skills for the future? Understanding technology:understanding of systems and Understanding technology:understanding of systems and technology like the air we breathe Information Management:capturing, analysing and using large amounts of data The Data Scientist Imagination to envisage how technology can be used and create value for the consumer and not just the company Study of technology mediated relationships and self service technologies (interfirm and consumer) Future perspective: Exploiting current and rapidly developing challenging technologies like biometrics, neuromarketing, social networking, data analytics, nano technology, blippartechnology augmented reality, RFID chips etc.
21 New Thinking or Past Thinking.. Peter F. Drucker: The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday s logic. Yesterday s logic, which continues to linger, focused on separating the airline the company from the consumer. Focused on profit maximisation Lack of focus on marketing and the consumer Competitive Focus
22 (Top 100 CEO s)jeff Bezos-Amazon..we select people who when they wake up in the..we select people who when they wake up in the morning are thinking about how to invent on behalf of the customer. If you like a more competitively focused culture, you might find us dull. We find our culture intensely fun. We have an explorer mentality, not a conqueror mentality. If you are inventing and pioneering, you have to be willing to be misunderstood for long periods of time. We help customer make purchase decisions. Our job at Amazon is to create the best customer experience we can.. (Harvard Business Review Jan- Feb 2013)
23 The challenge: Understanding customers Listen, Understand, Respond
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