IMD Biennial 2014 Piskorski

1. Does Your Business Need a New Strategy?
… or what has the Digital World done
to the Customer Decision Journey
@mpiskorski
Professor of Strategy and Innovation at IMD

2. 2© 2014 Mikołaj Jan Piskorski
Special shout out to Rafael Cano-Castillo (@rcanocastillo)

3. 3© 2014 Mikołaj Jan Piskorski
2,819,482,983
How many Internet users are there?

4. 4© 2014 Mikołaj Jan Piskorski
Europe
North America
Latin America
Middle East
Africa
Rest of Asia
China
And they are all over the world…

5. 5© 2014 Mikołaj Jan Piskorski
… and now they spend more time on the Internet than watching TV…
-
1
2
3
4
5
2010 2011 2012 2013
Hoursperday
All online TV Radio Print

6. 6© 2014 Mikołaj Jan Piskorski
… and they love to interact socially, search, read content, and email…
Social Platforms
22%
Search 21%
Reading content
20%
Email 19%
Multimedia 13%
Online shopping

7. 7© 2014 Mikołaj Jan Piskorski
… those who interact socially online are young and old…
0
50
100
150
200
250
300
350
400
450
15-24 25-34 35-44 45-54 55+
Male Female

8. 8© 2014 Mikołaj Jan Piskorski
… social interaction is not necessarily what you think it is…
View profiles
and pictures of
friends
35%
View profiles
and pictures of
stangers
35%
View own
profile
9%
Add content
to profiles
8%
Add or delete
friends
8% E-mail
5%
Percentages of all unique action clicks
excluding navigation, platform and IM

9. 9© 2014 Mikołaj Jan Piskorski
Remember when we could control what information customer got?
… this gave rise to the marketing funnel
Awareness
Familiarity
Consideration
Purchase
Loyalty

10. 10© 2014 Mikołaj Jan Piskorski
But now customer can roam freely on the internet...
… driving her own Customer Decision Journey talking to many other people

11. 11© 2014 Mikołaj Jan Piskorski
… or the more complicated version…

12. 12© 2014 Mikołaj Jan Piskorski
… but really the point is that it’s no longer a funnel

13. 13© 2014 Mikołaj Jan Piskorski
Implication for your business:
You have to be…
… here
… and
here
…and
also here
… and
here
… and
again
… here
too
… and
here

14. 14© 2014 Mikołaj Jan Piskorski
Share of socially generated e-commerce revenue:
Global excluding China

15. 15© 2014 Mikołaj Jan Piskorski
Fortunately, you do not really have to be everywhere:
Consider mobile phone service

16. 16© 2014 Mikołaj Jan Piskorski
You just need to understand what your customers’ journey is:
% of users in market who bought a product after they saw it on Facebook
0 5 10 15 20 25
Automotive
Food
Financial services
Travel
Alcoholic beverages
Personal care
Healthcare
Nonalcoholic beverages
Percentage of social network users

17. 17© 2014 Mikołaj Jan Piskorski
How do we meet the customer along the customer decision journey…
… and have others talk about us?

18. 18© 2014 Mikołaj Jan Piskorski
Consideration stage:
Pinterest!

19. 19© 2014 Mikołaj Jan Piskorski
Consideration stage:
Engagement rates
 70% female  one in five women in the US is on Pinterest
 28% household income over $100,000
 40% are 35 years old and over
 Spend 16 minutes on Pinterest per day vs. 12 minutes on Facebook
 80% of them buy something they pinned
 40% of them buy something they saw pinned
 5% of referral traffic to apparel sites comes from Pinterest!
 Average purchase
– via Facebook $80
– via Twitter $69
– Via Pinterest $175

20. 20© 2014 Mikołaj Jan Piskorski
Consideration stage:
Friends recommend American Express to their friends for free

21. 21© 2014 Mikołaj Jan Piskorski
Evaluation stage:
Blair Fowler aka JuicyStar007
http://www.youtube.com/watch?v=0
nGsMWnmbbk

22. 22© 2014 Mikołaj Jan Piskorski
Evaluation stage:
Blair Fowler aka JuicyStar007

23. 23© 2014 Mikołaj Jan Piskorski
Evaluation stage:
She is not the only one

24. 24© 2014 Mikołaj Jan Piskorski
Buying stage:
WeChat in China

25. 25© 2014 Mikołaj Jan Piskorski
Buying stage:
Twitter buy button

26. 26© 2014 Mikołaj Jan Piskorski
Experience stage:
Nike’s ecosystem
Nike’s devices
collect data
Phone/Computer
Online social
platform
Twitter/Facebook

27. 27© 2014 Mikołaj Jan Piskorski
Experience stage:
GE Industrial Internet
 General Electric invested $250,000,000/year over 4 years into industrial Internet
– Turbines now have 100 physical sensors and 300 virtual sensors to help
customers identify problems before they occur and improve fuel efficiency
– A turbine generates over 500GB of data per day which General Electric uses to
build its next generation turbines
– 1% efficiency increase = $20,000,000,000 per year in savings for customers…
 Even if GE only captures 10% of these savings, ROI is very high!

28. 28© 2014 Mikołaj Jan Piskorski
Loyalty Stage:
Merging CRM data with social data
Facebook
has emails and
phone numbers
of its users
Your CRM
has emails and
phone numbers
of your customers
Custom audience
can be exposed
to advertising
on Facebook
or Twitter
or LinkedIn
Use your own loyalty
program to see if those
who were exposed reacted
(great for offline purchase)
No wasted advertising
means higher ROI

29. 29© 2014 Mikołaj Jan Piskorski
To sum up
 Online > TV
– Customer is now free to roam
 Online = Social + Search + Content + Email
– Meet the customer where she roams and put sign posts
– Have others meet her there too and have them put sign posts
 Many touch points are required to cover the journey
– Not just Facebook page and Google Ads
 Change the product to fit this new environment
– Bake the journey directly into the product to generate insight and loyalty

30. 30© 2014 Mikołaj Jan Piskorski
More on this…
… or @mpiskorski or mpiskorski@imd.org