Presentation given by Scot McKee, Managing Director, Birddog, at the Online Influencer Conference, Cardiff, 2015.
Businesses have been slow to adapt to changes in the social landscape. McKee uses the example of Blockbuster’s demise and the rise of Netfilx to demonstrate why and how B2B brands should adopt new social practices to succeed in a connected social world.
McKee’s books on the subject of Creative B2B Branding and Business Marketing are available from Amazon - http://is.gd/mckeebooks
21. • 3m US customers per day
• Ops in 24 other countries
• 5,000 Retail Outlets
• 60,000 Employees
• Peak value = $5bn
Blockbuster
22. Success Through Adopting & Driving Innovation:
• Retail Product Display
• Inventory Software
• Back-Catalogue Revenues (70%)
• Using Technology to Speed Transactions
• Store Opening Times 10am – Midnight
• Basically, *everything* was new
Blockbuster
23. By 1990:
• 1,200 stores in the US
• New Stores Opening = 1 Per Day
• Advertising Spend = $25m
• Promo with Domino’s Pizza & McDonalds
• Expanding in UK, W. Europe, Australia
• Annual Sales = $1.5bn / Profit = $89m
Source: http://bit.ly/1bdZbge
Blockbuster
24. By 2010, it was over:
• Cable TV
• Satellite TV
• Mail Order Rental
• Video on Demand
• Low-Price Rentals
• Low-Price Retail Sales
• Emerging Formats (Netflix)
Blockbuster Filed for bankruptcy
Blockbuster
26. Netflix didn’t invent any new technology (DVD disc storage already
existed) – Netflix invented a new business model:
• Flat Fixed Monthly Fee
• Unlimited Rentals
• No Return Due Dates
• No Late Fees
• No Handling Fees
Basically, everything the customer wanted.
Netflix
27. By the time Blockbuster filed for Bankruptcy in 2010:
• Netflix sales jumped from $1m to $5m in first year 1997
• $500m in 5 years
• $1bn in 8 years
• 1m subscribers by 2002
• 5m subscribers by 2006
• 14m subscribers by 2010
Source: http://for.tn/1bdZDeu
Netflix
32. Learn to accept change
This is NOT your business customer anymore.
33. Learn to accept change
This is your business customer.
Fast, mobile, connected… Social.
34. So how come when B2B marketing professionals
were asked what their ‘perceived’ most influential
revenue growth channels in 2015 were…
Learn to accept change
59. Do it anyway
And there’s
plenty to be
scared of with
social B2B…
60. Do it anyway
• Business Reputation
• Customer Perception
• Brand Value
• Your Boss
• Corporate Risk
• Losing your Job
• Resource
• Litigation
• Productivity
• Security
• Weapons of
Mass Destruction
• Etc.
63. 25 Years ago, Susan Jeffers published the
2nd B2B Social book:
• The fear never goes away.
• To deal with it, you have to face it.
• To feel better, you have to face it.
• Everyone else is afraid too.
• Living with fear is worse than facing it.
Source: http://amzn.to/1be1PCN
Do it anyway
64. 25 Years ago, Susan Jeffers published the
2nd B2B Social book:
• It’s not really a B2B Social book.
• But it may as well be.
• When B2B marketers say, “Show me ROI,”
they really mean, “I’m feeling the fear.”
Source: http://amzn.to/1be1PCN
Do it anyway
65. Some businesses talk about ROI in B2B.
And some talk to each other to achieve it.
Do it anyway
66. Do it anyway
This is where the ROI is going before it goes to your website.
75. 1. Build from the Inside:
• Your staff are your greatest advocates.
• They are already using social.
• They have networks you don’t have.
• They have subject expertise you need.
• They’re just waiting for you to ask.
• They’re cheaper than me.
Build social confidence
76. 1. Build from the Inside:
• Enable – Policies, Protocol, Support
• Empower – Tools, Share, Promote
• Incentivise – Measure, Reward
Build social confidence
77. 2. Ask for Outside Help:
• 43% B2B orgs. site lack of expertise
as greatest barrier to social success.
• 42% need ROI support.
• 39% have ineffective strategy.
• 53% B2B orgs. outsource some or all
social media activity.
Source: http://bit.ly/1DPWGYE
Build social confidence
78. 2. Ask for Outside Help:
• Social strategy takes time.
• Social execution takes time.
• Social monitoring takes time.
Knowing when to ‘buy time’
can provide competitive advantage.
Build social confidence
115. • Learn to Accept Change
• Feel the Fear and Do It Anyway
• Build Social Confidence
• Be Creative With Content Strategy
Today’s Presentation…
116. Most companies that are great at something, do not become
great at new things because they are afraid to hurt their initial
business. Eventually these companies realize their error of not
focusing enough on the new thing, and then the company fights
desperately and hopelessly to recover.
Companies rarely die from moving too fast, but they frequently die
from moving too slowly.
Reed Hastings
CEO
Netflix
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Parting Wisdom