Presenter: David Edelman, Partner & Co-Leader, Global Digital Marketing Strategy Practice, McKinsey & Company

It starts with a complete story across the Customer Decision Journey. I know the chart here is hard to see, but it involves the following customer decisions: Consider – Evaluate – Bond (middle) – buy – experience – advocate.
In the course of McKinsey’s research across across brands in the consumer electronics, financial services, and telcom industries, they found that 75% of their budgets focused only on the “consider” and “buy” portion of the journey.
He used a McKinsey case study from electronics maker LG to illustrate why businesses need to look at other parts of the consumer decision journey. LG believed that Amazon.com was simply an sales channel. Research indicated that Amazon.com actually influenced 64% of sales made in physical stores as well. It was actually its most important marketing touchpoint.
Adapting to this took a serious supply chain redesign, as they had to get all content regarding all their different TVs into a consistent format across all potential media – in store and online. They had to quickly mobilize for content development rather than “traditional marketing” and, it required more focus on media and content development as well as alignment across silos. New customers were immediately drawn into ongoing dialogue about the brand, fostering engagement, and ultimately a huge sales increase.
A case study from Progressive Insurance illustrated the potential to use your own data as content. They aggregate competitor quotes both as a service to customers and potential customers, as well as making a strategic decision driver. However, they’ve flipped the process around and have the ability evaluate the data on how consumers adjust their rates to impact the price. Thousands of times an hour, they can see exactly what tradeoffs people are making to get the prices they want. This knowledge has given them more insights to target certain types of consumers, bringing them a lower cost per acquisition than GEICO.
A final case study focused on how Comcast is turning service issues into advocacy content. They receive 40-50 PR threats posted on blogs each day. They reply via phone or email, spurring new posts with positive comments. This often leads to the removal of posts and sites bashing the brand. In addition, they monitor about 1000 tweets per day. It turns out that 80% of service issues are resolved by other customers, and then becomes content for Comcast’s own bulletins. Their sentiment scores have risen and they are in a better position to fend off growing competition from telcos.
The key is to reconstruct the Consumer Decision Journey for your advantage – distribute your presence, integrate the core, and activate the engaged. In summary, ask yourself these questions:
1. Are your marketing plans focused on push, or on shaping the customer decision journey?
2. Do you have plans and budget for new roles, such as content, software, and product meta-data management?
3. Do you know which battlegrounds to co-opt?
4. Are you building the virtuous loops to fuel data and content?
5. Does your marketing organization reflect new roles and goals?