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TRADITIONAL
MARKETING
IS DEAD…
LONG LIVE THE CUSTOMER
STAN PHELPS

KEYNOTE & WORKSHOPS
PURPLEGOLDFISH.COM
CAUSE
OF
DEATH?
CAUSE
OF
DEATH?
The consumer is
no longer listening
TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own
TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own
Empowered to share opinions
TODAY’S CONSUMER IS EMPOWERED
Empowered to find info on their own
Empowered to share opinions
Empowered to avoid marketing
YOU NOW NEED TO MAKE THE LONGEST
AND HARDEST JOURNEY IN MARKETING
The 9 inches
from the brain...
to the heart
of your customer
shift your mindset and marketing spend,
to go from impressions to...
TO REACH THE HEART, YOU NEED TOTO REACH THE HEART, YOU NEED TO
experiences
SHIFT FROM CHASING PROSPECTSSHIFT FROM CHASING PROSPECTS
...to focusing on customers…to focusing on customers
HERE ARE 9 CUSTOMER-CENTRIC
MARKETING LESSONS FROM
MARKETING LESSON #1 - PUT CUSTOMERS FIRST
“
The more you sell customers, the more you
know about them. The more you know about
them, the easier it is to sell them more
products. The more products customers have
with you, the better value they receive and the
more loyal they are. The longer they stay with
you, the more opportunities you have to meet
even more of their financial needs. The more
you sell them, the higher the profit because
the added cost of selling another product to
an existing customer is often only about ten
percent of the cost of selling that same
product to a new customer.”
80% OF GROWTH COMES FROM
CURRENT CUSTOMERS
[Source: wellsfargo.com 2009]
Acquiring a new
customer costs
up to 10 times
more than
upselling an
existing
customer
“93% of companies fail to exceed expectations”
Key Takeaway from the Barometer:
MARKETING LESSON #2 - EXCEED EXPECTATIONS
WALT ON THE
IMPORTANCE OF
GIVING MORE
There was an incident that took place at Disneyland during
the early years of the park. Walt decided to hold a
Christmas parade at the new park at a cost of $350,000.
According to Disney historian Les Perkins:
Walt’s accountants begged him to not spend money on an
extravagant Christmas parade, because the customers were already
in the park. Nobody would complain, they reasoned, if they
dispensed with the parade because nobody would be expecting it.
That’s just the point. We should do
the parade precisely  because  no
one’s expecting it. Our goal at
Disneyland is to always give the
people more than they expect. As
long as we keep surprising them,
they’ll keep coming back. But if
they ever stop coming, it’ll cost us
ten times that much to get them
to come back.”
“
[Source: John Torre]
MARKETING LESSON #3 - REFERRALS ARE KEY
Examples are Great, But...
THERE IS ONLY
ONE QUESTION
FOR YOUR
CUSTOMER,
[INSERTYOUR BRAND HERE]
“How likely are you to
to a colleague, family
member or friend?”
recommend
Examples are Great, But...
WHY ARE REFERRALS KEY?
Because all customers
are not created equal
Examples are Great, But...
Customers gained
through referral are four
times more valuable
than ordinary customers
Why?
Examples are Great, But...
= 2LTV + 2XR
WHY FOUR TIMES MORE VALUABLE?
Examples are Great, But...
= 2LTV + 2XR
Up to 2x the average LifeTime Value
compared to ordinary customers
CUSTOMERS GAINED THROUGH REFERRAL
Examples are Great, But...
= 2LTV + 2XR
Up to 2x the average LifeTime Value
compared to ordinary customers
Up to 2x the number of Referrals
compared to ordinary customers
(IT’S ONLY PART OF THE ANSWER)
MARKETING LESSON #4 - SOCIAL IS NOT ABOUT YOU
Yourjobistogivethem
somethingtotalkabout,
tweetabout,Yelpaboutand
postontoFacebook
THE “ME” IN SOCIAL MEDIA
IS YOUR CUSTOMER
ME
“
- Peter Shankman
Nice Companies Finish First
Stop focusing on trying
to get new customers.
Focus on the customers
you have. They will bring
you the customers you
want”
MARKETING LESSON #5 - EXPERIENCE IS AN
INVESTMENT
Zappos CEO Tony Hsieh refuses to
see the experience as an expense:
Our business is based on
repeat customers and word of
mouth. There’s a lot of value in
building up our brand name
and what it stands for. We
view the money that we spend
on customer service as
m a r k e t i n g m o n e y t h a t
improves our brand.”
“
FREE SHIPPING BOTH WAYS,
OVERNIGHT SHIPPING UPGRADES
AND A 365 DAY RETURN POLICY
TAKING CARE OF THE ONES IN HAND...
INSTEAD OF THE THOUSANDS IN THE BUSH
MARKETING LESSON #6 - THINK COMMITMENT,
NOT CAMPAIGN
LIFETIME SERVICE GUARANTEE
Do you know how much each
customer is worth over their
lifetime?  
Chris Zane does. Each customer
of Zane’s has a $12,500 lifetime
value.   Chris sees the whole
forest and not just the individual
trees.  
Zane’s doesn’t sell stuff, they
provide “experiences” that build
relationships. They never sell
anything without sharing a story
of why its important.
“
ONE TO ONE TRAINING
The One to One program was created for one
purpose: to build a customer for life. It’s based
on a simple premise—the more a customer
understands and appreciates a product, the
more likely they are to make a deeper,
emotional connection with that product, and to
return or to recommend the product/service to
a friend.”
- Carmine Gallo
Building a customer for life.
MARKETING LESSON #7 - THINK CONVENIENCE OF
THE CUSTOMER FIRST
CEO Ed Clark in an interview with the Financial Post Magazine:
LONGER HOURS AND OPEN 7 DAYS A WEEK
“
Their branch will be closed, they’ll look
across at our store, this beautiful store,
there will be someone giving dog biscuits
to somebody’s dog, they’ll walk in and
there’s a greeter that’s unbelievably
friendly, and they’ll say, ‘So why am I
bankingattheguyacrossthestreet?”
…thegreatthingaboutourmodelisifIputabranchona
corner in New York City, I know five years later I will have
more than 25% of the local business, because at some
timeinthatfiveyearssomeonewillcomebyat4:02pm.
Examples are Great, But...
MARKETING LESSON #8 - THINK VALUE, NOT PRICE
“Alotofpeoplehavebeentryingtopickpocketandnickel-and-
dime their customers,’ says Kevin Krone, the company’s
[Southwest]headofmarketing.‘Wedon’tthinkit’sright.”
“The policy turned out to be a good business move. Part of
that growth in sales, Southwest believes, came from new
customersfleeingbagfees.Mr.Kellycallshisrivals’approach
‘agift.”
“The policy yielded another advantage. It allowed Southwest
to subtly shift the focus away from its fares. Although it still
offers low fares to many destinations, Southwest doesn’t
alwayshavethelowestfareseverydayoneveryflight.”
According to Jad Mouawad of The New York Times:
BAGS FLY FREE & NO CHANGE FEES
MARKETING LESSON #9 - DIFFERENTIATE THROUGH
ADDED VALUE
“We figure our best salesman is our customer. Treat that
person right, he’ll walk out the door and sell for you. From
the beginning, I wanted people to know that we put all our
money into the food.
BONUS FRIES, FREE PEANUTS
AND UNLIMITED TOPPINGS
That’s why the décor is so simple — red
and white tiles. We don’t spend our money
on décor. Or on guys in chicken suits. But
we’ll go overboard on food.”
Jerry Murrell
FOUNDER, FIVE GUYS
CAN YOU FEEL THE LOVE TONIGHT?
Kimpton Hotels welcomes
pets of the furry variety at all
of their hotels.
For guests in need of a little
extra, but no extra effort,
many of their hotels offer a
special something extra.
GIVE A LITTLE UNEXPECTED EXTRA
Guests have the option to
request a live goldfish to
stay overnight in their room.
GUPPY LOVE
ARE YOU STANDING OUT
IN A SEA OF SAMENESS?
-Tony Hsieh
The New York Times bestselling
author of Delivering Happiness
and CEO of Zappos.com
"In business you do must do
something that's above and
beyond what's expected.
Phelps shows the ingredients
behind signature extras that
are unconventional and
innovative. Every business
should be asking themselves,
"What's our Purple Goldfish?"
- Walt Disney
“The way to get started
is to quit talking
and begin doing”
WHAT’S YOUR
PARADE?
Traditional Marketing is Dead... Long Live the Customer
Traditional Marketing is Dead... Long Live the Customer
Traditional Marketing is Dead... Long Live the Customer
Traditional Marketing is Dead... Long Live the Customer

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Traditional Marketing is Dead... Long Live the Customer

  • 1. TRADITIONAL MARKETING IS DEAD… LONG LIVE THE CUSTOMER STAN PHELPS
 KEYNOTE & WORKSHOPS PURPLEGOLDFISH.COM
  • 4. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own
  • 5. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own Empowered to share opinions
  • 6. TODAY’S CONSUMER IS EMPOWERED Empowered to find info on their own Empowered to share opinions Empowered to avoid marketing
  • 7. YOU NOW NEED TO MAKE THE LONGEST AND HARDEST JOURNEY IN MARKETING
  • 8. The 9 inches from the brain... to the heart of your customer
  • 9. shift your mindset and marketing spend, to go from impressions to... TO REACH THE HEART, YOU NEED TOTO REACH THE HEART, YOU NEED TO
  • 11. SHIFT FROM CHASING PROSPECTSSHIFT FROM CHASING PROSPECTS
  • 12. ...to focusing on customers…to focusing on customers
  • 13. HERE ARE 9 CUSTOMER-CENTRIC MARKETING LESSONS FROM
  • 14. MARKETING LESSON #1 - PUT CUSTOMERS FIRST
  • 15. “ The more you sell customers, the more you know about them. The more you know about them, the easier it is to sell them more products. The more products customers have with you, the better value they receive and the more loyal they are. The longer they stay with you, the more opportunities you have to meet even more of their financial needs. The more you sell them, the higher the profit because the added cost of selling another product to an existing customer is often only about ten percent of the cost of selling that same product to a new customer.” 80% OF GROWTH COMES FROM CURRENT CUSTOMERS [Source: wellsfargo.com 2009]
  • 16. Acquiring a new customer costs up to 10 times more than upselling an existing customer
  • 17. “93% of companies fail to exceed expectations” Key Takeaway from the Barometer: MARKETING LESSON #2 - EXCEED EXPECTATIONS
  • 18. WALT ON THE IMPORTANCE OF GIVING MORE
  • 19. There was an incident that took place at Disneyland during the early years of the park. Walt decided to hold a Christmas parade at the new park at a cost of $350,000. According to Disney historian Les Perkins:
  • 20. Walt’s accountants begged him to not spend money on an extravagant Christmas parade, because the customers were already in the park. Nobody would complain, they reasoned, if they dispensed with the parade because nobody would be expecting it.
  • 21. That’s just the point. We should do the parade precisely  because  no one’s expecting it. Our goal at Disneyland is to always give the people more than they expect. As long as we keep surprising them, they’ll keep coming back. But if they ever stop coming, it’ll cost us ten times that much to get them to come back.” “ [Source: John Torre]
  • 22. MARKETING LESSON #3 - REFERRALS ARE KEY
  • 23. Examples are Great, But... THERE IS ONLY ONE QUESTION FOR YOUR CUSTOMER, [INSERTYOUR BRAND HERE] “How likely are you to to a colleague, family member or friend?” recommend
  • 24. Examples are Great, But... WHY ARE REFERRALS KEY? Because all customers are not created equal
  • 25. Examples are Great, But... Customers gained through referral are four times more valuable than ordinary customers Why?
  • 26. Examples are Great, But... = 2LTV + 2XR WHY FOUR TIMES MORE VALUABLE?
  • 27. Examples are Great, But... = 2LTV + 2XR Up to 2x the average LifeTime Value compared to ordinary customers CUSTOMERS GAINED THROUGH REFERRAL
  • 28. Examples are Great, But... = 2LTV + 2XR Up to 2x the average LifeTime Value compared to ordinary customers Up to 2x the number of Referrals compared to ordinary customers
  • 29. (IT’S ONLY PART OF THE ANSWER) MARKETING LESSON #4 - SOCIAL IS NOT ABOUT YOU
  • 31. “ - Peter Shankman Nice Companies Finish First Stop focusing on trying to get new customers. Focus on the customers you have. They will bring you the customers you want”
  • 32. MARKETING LESSON #5 - EXPERIENCE IS AN INVESTMENT
  • 33. Zappos CEO Tony Hsieh refuses to see the experience as an expense: Our business is based on repeat customers and word of mouth. There’s a lot of value in building up our brand name and what it stands for. We view the money that we spend on customer service as m a r k e t i n g m o n e y t h a t improves our brand.” “ FREE SHIPPING BOTH WAYS, OVERNIGHT SHIPPING UPGRADES AND A 365 DAY RETURN POLICY
  • 34. TAKING CARE OF THE ONES IN HAND... INSTEAD OF THE THOUSANDS IN THE BUSH
  • 35. MARKETING LESSON #6 - THINK COMMITMENT, NOT CAMPAIGN
  • 36. LIFETIME SERVICE GUARANTEE Do you know how much each customer is worth over their lifetime?   Chris Zane does. Each customer of Zane’s has a $12,500 lifetime value.   Chris sees the whole forest and not just the individual trees.   Zane’s doesn’t sell stuff, they provide “experiences” that build relationships. They never sell anything without sharing a story of why its important.
  • 37. “ ONE TO ONE TRAINING The One to One program was created for one purpose: to build a customer for life. It’s based on a simple premise—the more a customer understands and appreciates a product, the more likely they are to make a deeper, emotional connection with that product, and to return or to recommend the product/service to a friend.” - Carmine Gallo Building a customer for life.
  • 38. MARKETING LESSON #7 - THINK CONVENIENCE OF THE CUSTOMER FIRST
  • 39. CEO Ed Clark in an interview with the Financial Post Magazine: LONGER HOURS AND OPEN 7 DAYS A WEEK “ Their branch will be closed, they’ll look across at our store, this beautiful store, there will be someone giving dog biscuits to somebody’s dog, they’ll walk in and there’s a greeter that’s unbelievably friendly, and they’ll say, ‘So why am I bankingattheguyacrossthestreet?” …thegreatthingaboutourmodelisifIputabranchona corner in New York City, I know five years later I will have more than 25% of the local business, because at some timeinthatfiveyearssomeonewillcomebyat4:02pm.
  • 40. Examples are Great, But... MARKETING LESSON #8 - THINK VALUE, NOT PRICE
  • 41. “Alotofpeoplehavebeentryingtopickpocketandnickel-and- dime their customers,’ says Kevin Krone, the company’s [Southwest]headofmarketing.‘Wedon’tthinkit’sright.” “The policy turned out to be a good business move. Part of that growth in sales, Southwest believes, came from new customersfleeingbagfees.Mr.Kellycallshisrivals’approach ‘agift.” “The policy yielded another advantage. It allowed Southwest to subtly shift the focus away from its fares. Although it still offers low fares to many destinations, Southwest doesn’t alwayshavethelowestfareseverydayoneveryflight.” According to Jad Mouawad of The New York Times: BAGS FLY FREE & NO CHANGE FEES
  • 42. MARKETING LESSON #9 - DIFFERENTIATE THROUGH ADDED VALUE
  • 43. “We figure our best salesman is our customer. Treat that person right, he’ll walk out the door and sell for you. From the beginning, I wanted people to know that we put all our money into the food. BONUS FRIES, FREE PEANUTS AND UNLIMITED TOPPINGS That’s why the décor is so simple — red and white tiles. We don’t spend our money on décor. Or on guys in chicken suits. But we’ll go overboard on food.” Jerry Murrell FOUNDER, FIVE GUYS
  • 44. CAN YOU FEEL THE LOVE TONIGHT? Kimpton Hotels welcomes pets of the furry variety at all of their hotels. For guests in need of a little extra, but no extra effort, many of their hotels offer a special something extra.
  • 45. GIVE A LITTLE UNEXPECTED EXTRA Guests have the option to request a live goldfish to stay overnight in their room. GUPPY LOVE
  • 46. ARE YOU STANDING OUT IN A SEA OF SAMENESS? -Tony Hsieh The New York Times bestselling author of Delivering Happiness and CEO of Zappos.com "In business you do must do something that's above and beyond what's expected. Phelps shows the ingredients behind signature extras that are unconventional and innovative. Every business should be asking themselves, "What's our Purple Goldfish?"
  • 47. - Walt Disney “The way to get started is to quit talking and begin doing” WHAT’S YOUR PARADE?