Conoscerli, gestirli e misurarne l'impatto su Brand equity e sales
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1 Conoscerli, gestirli e misurarne l'impatto su Brand equity e sales Walter Caccia Head of Brand & Communication
2 The connected world puts touchpoints at the centre of the planning universe The old world The new world PR PR Sponsorship Online retail Advertising Direct mail Advertising Direct mail Brand TV Brand community POS Interactive experience Staff Interactive experience Staff Retail Product sampling Retail Social media and more
3 Every experience has the potential to influence Store experience and staff behaviour Billboard Product experience Outside advertising Social commentary/ word of mouth News from Apple s Worldwide Developers Conference (WWDC) TV advert Website
4 Touchpoints now serve multiple purposes Servicing Seek service solutions via social 34% 47% Brand building Connecting with brands on Facebook 23% Converting Using social in P2P SOURCE : Connected Life 2016
5 What are the challenges? Optimising touchpoint management Engaging with the connected consumer Optimizing customer experiences in a multi-channel world Using emotion consistently across touchpoints Converting omnichannel shoppers to buyers
6 A push model of consumer communications and contact will not work for much longer. Soon pull or desired and requested interaction will be the only way* Fall of the Attention Economy Rise of the Engagement Economy (*) Kevin Allen Founder and CEO at Rekap Inc.
7 Power of Perception: why asking for recall of touchpoint experiences Dan Ariely Predictably irrational. The hidden forces that shape our decisions. 2008:7. Daniel Kahneman The riddle of experiences versus memory. TEDtalk February We always see things around us in relation to each other. We can t help it! We actually don t choose between experiences, we choose between memories of experiences Why we are asking instead of measuring Target metrics are mostly non-measurable, e.g. brand strength Not all touchpoints can be tracked directly, e.g. recommendation, usage experience Measurement cannot account for the entire consumer-universe experiences (Dan Ariely) Asking provides more explanation compared to measuring Why we are not measuring in the moment Most decisions are made based on memories of experiences (Daniel Kahneman) In the moment approaches tend to overestimate the impact of recent experiences because other relevant touchpoint experiences are neglected Distinguishing between relevant and irrelevant experiences is best done after some time when a natural relevance filtering has already occurred
8 Market research closer to reality by integration of three unique innovations Behavioural Economics Modelling on respondent level Questionnaire immersion
9 Touchpoint impact: high discrimination between categories and brands Positive contribution to brand equity 40% 30% Cars Coffee Supermarkets 20% 10% Negative contribution to brand equity 0% -10% TV advertising Tests/ reports Product experience Customer magazine Car seen on road
10 Touchpoint contribution to brand strength per category and country Auto Aviation Consumer Finance Retail 30% 20% 10% 0% 30% 20% 10% 0% 30% 20% 10% 0% 30% 20% 10% 0% 30% 20% 10% 0% 28,9% 17,6% 18,2% 18,7% 17,2% 18,5% 14,5% 15,9% 10,4% 9,5% 11,5% 9,5% 8,5% China China Germany Germany Germany Germany Germany Italy Japan UK UK USA USA 28,2% 31,5% 17,6% 18,6% 19,0% 16,3% 17,5% 17,5% 11,7% 13,8% 14,9% 8,9% China France Germany India Italy Japan Poland Russia Spain Sweden UK USA 17,8% 16,4% 10,2% 7,3% 8,4% 4,0% 8,6% Germany Germany Germany Germany Indonesia Italy Korea 12,1% 14,6% 5,5% 5,2% 5,9% France Germany Germany Germany Malaysia 24,6% 26,3% 31,8% 24,0% 19,8% 20,2% 24,4% Bulgarian Croatia Czech Germany Poland Romania Slovakia
11 Main questions to answer Quality of reach Engagement Impact on sales Efficiency Are we reaching the right people with my paid, owned and earned touchpoints? What is the impact on brand equity of my touchpoints relative to competitors? Which of my touchpoints help to convert brand equity into sales? Which part of my touchpoint spend is wasted?
12 1. Take a long-term view ensure marketing contributes to future sales, not just present sales 1.5 (11%) 0.8 (8%) (89%) (92%) Power in the mind Brand equity stock Recent brand experience
13 2. Do fewer things excellently focus on the most impactful touchpoints 1. Shelf presence in supermarkets 2. Own product usage POS displays 3. TV ads 5. WOM of family/ friends Paid Owned Earned
14 2. Do fewer things excellently focus on the most impactful touchpoints Which touchpoints had impact on brand equity? 17% Shelf presence in supermarkets 15% Own product usage 14% TV ads 10% POS displays 9% WoM family & friends 5% Coffee used in gastronomy 4% Print ads 2% Promotion stands in supermarkets 2% Supermarket flyers 2% Billboard ads 78% 22% Which part is wasted? Sales promotions Presence in online shops / ecommerce Trade fairs newsletter Social networks Free samples Radio ads Online TV Cinema ads Promo stands Sponsorship (event, TV, venue) Sporting events Banner ads Public transport advertising Top 10 impactful touchpoints for brand equity (reach & quality) Other 33 touchpoints
15 3. Use the right tool for your job 1. WoM family & friends 2. Recommendation by sales staff 3. TV ads Building brand equity Driving sales 1. Radio ads 2. Print ads 3. Online ads 1. Promotion stands in supermarkets 2. Coffee used in gastronomy 3. Social Media Driver for brand equity Driver for stated share Driver for both
16 4. Don t just chase eye-balls - quality of engagement is critical Tchibo vs. best in class competitor (BIC) Shelf in supermarket Own product usage TV advertising WoM family & friends Coffee used in gastronomy Print ads Reach vs. BIC Engagement vs. BIC Better than competitors Equal to competitors Worse than competitors
17 Q&A time
18 More granularity and deeper insights than other marketing mix tools 360 integrated All touchpoints, all brands and all categories Enables integrated management across consumer journey Full competitor visibility High flexibility Modelled at individual level (not aggregate) so easy to filter target audiences Modular approach No existing data necessary as inputs* Closer to reality Can capture negative impact of touchpoints Modelling of touchpoint interactions Qualitative insights bring data to life Behaviour related High predictability of consumer behaviour Short- and long-term effects Integrates behavioural economics *client spend data necessary for optimisation analysis
19 Thank you! Stay Walter Caccia Head of Brand & Communication TNS Italia srl Viale Milanofiori Str. 3 Building B Assago (MI) tel
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