Presented at the DiG Festival, NSW, 2013. Digital is hot right now. But as brands and businesses of all shapes and sizes rush into the digital domain, they bring with them the baggage of old marketing and PR practices. This brave new digital world is a fundamentally different space. Welcome to the "Consumerverse" - an upside-down, inside-out universe where analytics are revealing, on the one hand, the hit and miss randomness of broadcast messaging, and on the other, the growing importance of guided engagement-laden conversation designed to reach the consumer’s “sphere of attraction.” To succeed in this new Consumerverse, brands need to understand the new physics of attraction and design their business, communications and customer experience accordingly.

1. STOP
talking at
me.
No one is
LISTENING
Gavin Heaton
@servantofchaos
The New Physics of the Consumerverse
www.servantofchaos.com
http://www.flickr.com/photos/demibrooke/2336528544

2. A simpler time.
http://www.flickr.com/photos/uon/3770655191/
Davies & Herbert,
Confectioners, 207
Hunter St,
Newcastle, 1902

3. Advertising was ...
Newcastle Mortuary
Station, Newcastle
West, 1896
http://www.flickr.com/photos/uon/3770655789/

4. And the media was ...
Henry Asser,
Bookseller and
Stationer, 19 Hunter
St, Newcastle, 1897
http://www.flickr.com/photos/uon/3771457272

5. And the media was ...
Henry Asser,
Bookseller and
Stationer, 19 Hunter
St, Newcastle, 1897
http://www.flickr.com/photos/uon/3771457272

6. http://www.flickr.com/photos/uon/3723114862
Thomas Griffiths
Lambton Road,
New Lambton, 1903
We knew who to
trust in business
because we knew
where they lived
(and because they had
awesome moustaches)

7. We built our companies like this ...

8. We built marketing like this ...
http://www.flickr.com/photos/37387675

9. A convenient truth.

10. WAIT!
Did the job you’re in exist when you were studying?

11. We became ...
Customer centric
Customer focused
Customer companies

12. But our organisations still look like:

13. but live in a digital worldWe have analogue skills

14. but live in a digital worldWe have analogue companies

15. but live in a digital worldWe have analogue processes

16. http://www.flickr.com/photos/45782447@N02/5956902687/
And that digital
world doesn’t
look, feel or
operate in the
same way.

17. http://www.flickr.com/photos/40143737@N02/3841160835/
It’s an alien world
powered by
geeks, data and
passion.
(Yes, it’s a new kind
of sexy)

18. Constellation Research
calls this the
“Consumerisation of IT”.
Big data, social, mobile,
cloud and unified
communications are
converging with the
“Connected Consumer”
at the centre.
R “Ray” Wang, “Understanding the new role of the CIO”, Constellation Research Inc, 2012

19. Conversion
Consider-
ation
Interest
Awareness
Rethinking the marketing funnel
 Inside-out view of the
buying process
 Digital has disrupted
the way that we find
and buy
Gavin Heaton, “Strengthening Marketing’s Mid-Funnel”, Constellation Research Inc, forthcoming

20. Simple customer journey
DEVICE
SPACE
ENGAGE
CHANNEL
PROCESS
* * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * *
Gavin Heaton, “Analytics Chat for Anametrix”, Constellation Research Inc, 2013

21. Connected consumers
Gavin Heaton, “Rethinking the Marketing Funnel”, Constellation Research Inc, 2012

22.  Fragmentation
creates silos not
synergies
 The marketing funnel
assumes a passive
customer
 The next-gen
customer experience
is owned from the
outside in
 Next-gen customers
make purchases in
their own time frames
 Purchase decisions
occur before
consumers reach the
marketing funnel
 Trust is the currency
of digital marketing
22
Six principles we need to address

23. Marketing mix in transition
 Digital will account for 25% of marketing budgets in
2013
 And will reach 31.1% by 2017
 Mobile is expected to grow faster than digital overall
and will account for over 50% of digital spending by
2017
eMarketer, August 2013

24. Just think, in 1897 the SMH could fit ...
=
12 pages 1.44 Mb

25. When information is finite.
http://www.flickr.com/photos/pgoyette/94520121
One library floor
of academic
journals = 100 Gb

26. But now ... a global infoglut.
2013 Meeker Report, p 11
0
1
2
3
4
5
6
7
8
9
2005 2006 2007 2008 2009 2010 2011 2012 2013E2014E2015E
Zettabytes
1 ZB = 1000000000000000000000bytes
1ZB = 1000 exabytes = 1 billion terabytes
Global digital information created and shared grew 9x in 5 years

27. Individual relationships
People do
BUSINESS with
people they LIKE.

28. In my mind, disruption looks like ...
http://nasa.gov
We call it
DISRUPTION but it’s
really a new form of
GRAVITY with the
consumer at the
centre of
everything.

29. Accelerating change
As Angela Clark pointed out previously ...

30. Disruption is the New BAU
Within years of introduction, Apple’s iOS had almost entirely displaced the once
dominant Symbian OS from Nokia. Android now claims a majority foothold in the
mobile market.

31. Early digital adopters have accelerated their
dominance in one market and are using that
positioning to disrupt others.

32. This same pattern will play out repeatedly in the years ahead
as digital convergence creatively destroys one market on its
way to establishing a new one.
This is the pattern of DISRUPTION as USUAL.

33. We must embrace disruption as a precondition
for innovation and business success.
http://www.flickr.com/photos/86530412@N02/8226451812/

34. Three rules for relevance

35. Participate with purpose
http://www.flickr.com/photos/7815007@N07/7136520433/

36. Participate with purpose
 Not just about being online (creating, sharing and
distributing various types of content)
 Beyond content to the realm of SERVICE
 Fulfil a role or purpose that aligns with the needs and
aspirations of Connected Consumers
 PURPOSE attracts

37. Be connected and connectable
 Consumers don’t care about your strategy, your
mobile platform or network
 Consumers care about access and availability – any
channel, any time in a consumable form
 If you are not connected and connectable then you are
NOT RELEVANT

38. Campaigns are DEAD
 Businesses are addicted to communicating through
campaigns
 They are time boxed and work from an inside-out point
of view
 Find flexible, micro approach to campaigns that map to
the buyer’s journey
 Work across digital and non-digital touchpoints
 Strategically plan comms by buyer journey

39. Did the job you’re in exist when you were studying?

40. The future of you/work.
Did the job you’re in exist when you were studying?

41. The only solution we have
is to
embrace
DISRUPTION as USUAL

42. Something Newcastle seems to understand well.

43. Brands are
packets of
cultural history
- John Grant
“
”
http://www.youtube.com/watch?v=ZZ9RzctTygw

44. Newcastle images are from original glass
negatives taken by Ralph Snowball. It is part of
the Norm Barney Photographic Collection, held
by Cultural Collections at the University of
Newcastle, NSW, Australia.
All others are referenced on the slide.
IMAGES
Gavin Heaton
gavin@constellationr.com // @servantofchaos
CONTACT