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operating in a connected world
and the power of doing

martin bailie
head of planning
glue isobar
martinbailie.soup.io
@martinbailie
insight about consumers
              digital consumers?
people, interacting

sometimes with technology
we’re in the business of changing behaviour:
implanting desire and stimulating recall at
the moment of need


so we’re in the business of memory
?   how do we learn and what’s the best way
    to help people remember us?
how people learn
what happens when we interact with technology
how this information can help be more successful
how people learn
what happens when we interact with technology
how this information can help be more successful
~90%
of our thoughts are
     subconscious
we’re emotionally driven

“when logic
conflicts with
emotion,
emotion wins”


The Mental World of Brands: Mind, Memory and Brand Success
Frazen/Bouwman
we know not
what we do, nor
think, nor why we
act
but behavioural economics explores
the patterns
exposing our weaknesses
three types of memory




sensory            short term                         long term

fleeting            stored for                         unlimited
                   20-30secs                          capacity &
                                                      longevity
                                dep
                                   th o
                                       f ex
                                           peri
                                               ence
memory encoding
    a biological phenomenon, rooted in the
    senses, that begins with perception



          sensory          short term                long term


          immediate                      relevance
drivers




          relevance
                                    use/
          familiar                            attention
                                    recall
memory encoding


core driver:
arousal
a state of
emotional,
intellectual,
and physical
activity
memory encoding
 experience increases strength

memory stages
    registering                            retaining

                    rs
                  dri
                     ve   attention

                     use/
                               relevance
                     recall



                          retrieving
how people learn
what happens when we interact with technology
how this information can help us grow businesses
culture is shared
behaviour
                                           “culture controls
                                     behaviour in deep and
                                   persisting ways, outside
                                                awareness”



Edward Hall, The Silent Language
culture is shared behaviour
and defines how we learn




    reflecting popular culture: the spoof



    memory stage: registering
culture is shared behaviour: the spoof
culture is shared behaviour
and defines how we learn

                                   (new)

                                   formal
                                   rules &
                                   corrections
                                   imperceptible
             technical                        informal
             improvement                      adaption from
             taught                           imitation
             conscious                        learned then
                                              unconscious
Edward Hall, The Silent Language
culture is shared behaviour
and defines how we learn


                        as social
                        animals,
                     we learn by
                       following
                   everyone else




Herd, Mark Earls
culture is shared behaviour
and defines how we learn


                  herding in action
               those that notice reviews:
                   16% more conversion

        those that read all reviews:
            116% more conversion
20% increase in average order value




BazaareVoice
we learn through multiple
communication forms


1. doing (interaction)
2. association (connecting things)
3. survival/subsistence
4. masculine/feminine norms
5. territoriality (local norms)
6. temporality (time based norms)
7. formal learning (teaching)
8. play
9. defence
10. exploitation (use of materials)

Edward Hall, The Silent Language
so why do we keep expecting people to tell us?


                               asking people what they think

                                   what they actually think


                                        what they will do
                                participant           researcher




How Customers Think, Zaltman
we learn best when involved


      ‘active learning’

      I hear and I forget
      I see and I remember
      I do and I understand




Nuffield Educational training
we learn best when involved


we recall
10% of what we read
20% of what we hear
30% of what we see
50% of what we see and hear
70% of what is discussed with others
80% of what is experienced personally
95% of what we teach to someone else


Psychiatrist William Glasser
we seek to be involved



the things you own won’t make you as happy
as the things you do.
                       “as nice as your new
                         computer is, it's not
                      going to make you feel
                                        alive”



Ryan Howell/San Francisco State University
we seek to be involved




                    +
    raising money through experiences
Operating in a connected world and the power of doing
Operating in a connected world and the power of doing
15,000 auctions = £120k raised
       auctions still happening everyday
all on a media budget of just £20,000...
we seek to be involved




Isobar
we seek to be involved




Thinkbox
we seek to be involved


                  emotion over cognition


                      engagement?

              implicit AND       low involvement AND
           explicit memory       high involvement
                                 processing


Thinkbox
we create relevance through involvement


          ‘routinized learning’            ‘guided discovery’


          mature mindset                   younger mindset


          mastery                          invention


Alison Gopnik, The Scientist in the Crib
we create relevance through involvement
                                 Recognition

               ʻLikingʼ                 0.74
                                                            Relevance

                                                              0.64
                                        0.84
       Awareness                               0.56      0.44 Creativity
                                 0.54
                                                                                            Ad KPIs

                                                                                        Brand KPIs
                          0.48          0.42
       Favourability             0.45                           Usage
                                                   0.39



                          Future Purchase Intention



Thinkbox.                                 Strength of correlation between brand and ad KPIs from quantitative study
we create relevance through involvement




Droga5
we create relevance through involvement




1m users
78% of 11-13yr olds said they had improved their diets
we create relevance through involvement




glue London
Operating in a connected world and the power of doing
Operating in a connected world and the power of doing
Operating in a connected world and the power of doing
Operating in a connected world and the power of doing
Operating in a connected world and the power of doing
part of the web, not just a website
how people learn
what happens when we interact with technology
how this information can help be more successful
we are re-wiring our brains faster than ever before




                     by day 5, our decision making and short-term
                     information management has been ‘digitised’




Kearney/Unitec, New Zealand
social-ness
it’s like MSG for the
web
use of social sites
      boosts self-esteem
      if you already have it
      (especially
      adolescents)



                                           otherwise it
                                       will exacerbate
                                       your loneliness

Lampe/Michigan State University 2008
477 Facebook users
the good                      IQ rising
                              problem solving
                              response times
                              thought agility



the bad                       continuous partial attention
                              the brain in a “constant state
                              of crisis”

                              ‘techno-burn-out’


Kearney/Unitec, New Zealand
how people learn
what happens when we interact with technology
how this information can help us succeed
our aim is recommendation




                            2.5x
“The most recommended
 company in its category
    grows 2.5x category
               average”




Bain&Co
our aim is recommendation
so we need to find, and create, fans




Bain&Co
fans can be generated from the whole enterprise


Primary activities


         Inbound                               Outbound       Marketing
                                  Operations                               Service
         logistics                             logistics      and Sales




Support activities
Firm                          Talent             Innovation        Procurement
infrastructure                management




Source: The Value Chain, Porter
6 ways to involve and create fans




glue London
Enabling transactions and services to take place between
customers, including self-organisation
Reaching new customers and remove potential barrier
Create new incentive to use the product
Crowd sourcing, crowd testing etc.
Mixing services, technologies, products or brands.
Letting customers co-create products
Involvement = saliency & potential advocacy
telling the stories of
the people and the
idea
our objective is recommendation through people
talking positively about us

1. doing is understanding
(Nuffield educational theory)



2. involvement tailors relevance
(Robertson et al. 1984)
                                   Propensity to recommend (NPS)
                                   70

3. involvement aids                53
recommendation
(Paul Marsden, LSE)
                                   35


                                   18
4. recommendation delivers               non-engaged                engaged
                                         consumers                  consumers
sales growth                       0
(Bain&Co, LSE)
                                   Omnicom 2007 Web Experiment n=1000
                                   Experimental Group: 500 consumers invited to become online
                                   brand advisors for randomized consumer brands from five
                                   categories and NPS measured
                                   Control Group: 500 consumers asked to give NPS for
glue London                        randomized brands in five categories
operating in a connected world
and the power of doing


thanks!


martin@gluelondon.com
martinbailie.soup.io
@martinbailie

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Operating in a connected world and the power of doing

  • 1. operating in a connected world and the power of doing martin bailie head of planning glue isobar martinbailie.soup.io @martinbailie
  • 2. insight about consumers digital consumers?
  • 4. we’re in the business of changing behaviour: implanting desire and stimulating recall at the moment of need so we’re in the business of memory
  • 5. ? how do we learn and what’s the best way to help people remember us?
  • 6. how people learn what happens when we interact with technology how this information can help be more successful
  • 7. how people learn what happens when we interact with technology how this information can help be more successful
  • 8. ~90% of our thoughts are subconscious
  • 9. we’re emotionally driven “when logic conflicts with emotion, emotion wins” The Mental World of Brands: Mind, Memory and Brand Success Frazen/Bouwman
  • 10. we know not what we do, nor think, nor why we act but behavioural economics explores the patterns
  • 12. three types of memory sensory short term long term fleeting stored for unlimited 20-30secs capacity & longevity dep th o f ex peri ence
  • 13. memory encoding a biological phenomenon, rooted in the senses, that begins with perception sensory short term long term immediate relevance drivers relevance use/ familiar attention recall
  • 14. memory encoding core driver: arousal a state of emotional, intellectual, and physical activity
  • 15. memory encoding experience increases strength memory stages registering retaining rs dri ve attention use/ relevance recall retrieving
  • 16. how people learn what happens when we interact with technology how this information can help us grow businesses
  • 17. culture is shared behaviour “culture controls behaviour in deep and persisting ways, outside awareness” Edward Hall, The Silent Language
  • 18. culture is shared behaviour and defines how we learn reflecting popular culture: the spoof memory stage: registering
  • 19. culture is shared behaviour: the spoof
  • 20. culture is shared behaviour and defines how we learn (new) formal rules & corrections imperceptible technical informal improvement adaption from taught imitation conscious learned then unconscious Edward Hall, The Silent Language
  • 21. culture is shared behaviour and defines how we learn as social animals, we learn by following everyone else Herd, Mark Earls
  • 22. culture is shared behaviour and defines how we learn herding in action those that notice reviews: 16% more conversion those that read all reviews: 116% more conversion 20% increase in average order value BazaareVoice
  • 23. we learn through multiple communication forms 1. doing (interaction) 2. association (connecting things) 3. survival/subsistence 4. masculine/feminine norms 5. territoriality (local norms) 6. temporality (time based norms) 7. formal learning (teaching) 8. play 9. defence 10. exploitation (use of materials) Edward Hall, The Silent Language
  • 24. so why do we keep expecting people to tell us? asking people what they think what they actually think what they will do participant researcher How Customers Think, Zaltman
  • 25. we learn best when involved ‘active learning’ I hear and I forget I see and I remember I do and I understand Nuffield Educational training
  • 26. we learn best when involved we recall 10% of what we read 20% of what we hear 30% of what we see 50% of what we see and hear 70% of what is discussed with others 80% of what is experienced personally 95% of what we teach to someone else Psychiatrist William Glasser
  • 27. we seek to be involved the things you own won’t make you as happy as the things you do. “as nice as your new computer is, it's not going to make you feel alive” Ryan Howell/San Francisco State University
  • 28. we seek to be involved + raising money through experiences
  • 31. 15,000 auctions = £120k raised auctions still happening everyday all on a media budget of just £20,000...
  • 32. we seek to be involved Isobar
  • 33. we seek to be involved Thinkbox
  • 34. we seek to be involved emotion over cognition engagement? implicit AND low involvement AND explicit memory high involvement processing Thinkbox
  • 35. we create relevance through involvement ‘routinized learning’ ‘guided discovery’ mature mindset younger mindset mastery invention Alison Gopnik, The Scientist in the Crib
  • 36. we create relevance through involvement Recognition ʻLikingʼ 0.74 Relevance 0.64 0.84 Awareness 0.56 0.44 Creativity 0.54 Ad KPIs Brand KPIs 0.48 0.42 Favourability 0.45 Usage 0.39 Future Purchase Intention Thinkbox. Strength of correlation between brand and ad KPIs from quantitative study
  • 37. we create relevance through involvement Droga5
  • 38. we create relevance through involvement 1m users 78% of 11-13yr olds said they had improved their diets
  • 39. we create relevance through involvement glue London
  • 45. part of the web, not just a website
  • 46. how people learn what happens when we interact with technology how this information can help be more successful
  • 47. we are re-wiring our brains faster than ever before by day 5, our decision making and short-term information management has been ‘digitised’ Kearney/Unitec, New Zealand
  • 49. use of social sites boosts self-esteem if you already have it (especially adolescents) otherwise it will exacerbate your loneliness Lampe/Michigan State University 2008 477 Facebook users
  • 50. the good IQ rising problem solving response times thought agility the bad continuous partial attention the brain in a “constant state of crisis” ‘techno-burn-out’ Kearney/Unitec, New Zealand
  • 51. how people learn what happens when we interact with technology how this information can help us succeed
  • 52. our aim is recommendation 2.5x “The most recommended company in its category grows 2.5x category average” Bain&Co
  • 53. our aim is recommendation so we need to find, and create, fans Bain&Co
  • 54. fans can be generated from the whole enterprise Primary activities Inbound Outbound Marketing Operations Service logistics logistics and Sales Support activities Firm Talent Innovation Procurement infrastructure management Source: The Value Chain, Porter
  • 55. 6 ways to involve and create fans glue London
  • 56. Enabling transactions and services to take place between customers, including self-organisation
  • 57. Reaching new customers and remove potential barrier Create new incentive to use the product
  • 58. Crowd sourcing, crowd testing etc.
  • 59. Mixing services, technologies, products or brands.
  • 60. Letting customers co-create products Involvement = saliency & potential advocacy
  • 61. telling the stories of the people and the idea
  • 62. our objective is recommendation through people talking positively about us 1. doing is understanding (Nuffield educational theory) 2. involvement tailors relevance (Robertson et al. 1984) Propensity to recommend (NPS) 70 3. involvement aids 53 recommendation (Paul Marsden, LSE) 35 18 4. recommendation delivers non-engaged engaged consumers consumers sales growth 0 (Bain&Co, LSE) Omnicom 2007 Web Experiment n=1000 Experimental Group: 500 consumers invited to become online brand advisors for randomized consumer brands from five categories and NPS measured Control Group: 500 consumers asked to give NPS for glue London randomized brands in five categories
  • 63. operating in a connected world and the power of doing thanks! martin@gluelondon.com martinbailie.soup.io @martinbailie