Marketing Automation Melbourne Meetup presentation by David Nnachi

1. Marketing Automation Melbourne Meetup
1
MARKETING 3.0
MARKETING AUTOMATION MELBOURNE

2. Marketing Automation Melbourne Meetup
2THE PARADIGM SHIFT
How far we’ve come
Marketing 1.0
Push Marketing
Scale and Frequency
Descriptive Analytics
‘what did you do’
Ad hoc data collection
One dimensional segmentation based
on product needs or past purchases
Harmonization of Brand value and
proposition across traditional channels
Increase customer spend
Marketing 2.0
Pull and Push
‘Ask and React’
Explanatory analytics
‘Why did you do it’
Systematic Data Collection
Two dimensional segmentation based
on needs and value
Integration of capabilities across
broadening number of channels
Improve cost to sell (CPM)
Marketing 3.0
Collaboration and co-creation through
personalized dialog
Predictive Analytics
‘What will you do next’
Continuous, Automated, Integrated
data collection and ROI Assessment
Multi-dimensional segmentation based
on rational and emotional behaviour
drivers
Optimization of experiences across
selected channels
Grow Customer net worth

3. Marketing Automation Melbourne Meetup
3INDUSTRY 3.0
The marketing revolution – Tech + Business + Mind
• Evolving Marketing Ecosystem – the digital disruption
• Industrialization 2.0 - cheaper, faster and more consistent marketing
• Rise of the wisdom worker: Worker Evolution
Manual worker < Task workers < Knowledge workers < Wisdom
Worker
• Neuro/Behavioural Economics - enhanced knowledge of consumer
behaviour and decision making
• Social & Community responsibility – higher need to do what is best for
our collective future and our habitat

4. Marketing Automation Melbourne Meetup
4ADOPTING A NEW MARKETING APPROACH
The culture shock of automated marketing
Behavioral
Economics
Management
Automation
Marketing
Culture
Marketing
3.0
Marketing as evolved to an extent as an applied science of data-driven
economics.
Marketing automation’s does not work with traditional marketing
structure and culture, and cannot successfully happen until a cultural
transformation and significant change management programme has
been undertaken.
A fifth ”P” - Used to be about the four P’s. Product, price, place
(distribution), and promotion.
- Now it’s a lot about People (Customers) ( & Politics )

5. Marketing Automation Melbourne Meetup
5MANAGEMENT
Restructuring The Team for Optimal efficiency
• Customer Experience Manager
• Product Managers
• Customer Acquisition and Sales Management
• Customer On boarding Coordination
• Community Development and Management
• Behavioural Scientist (Gamification team)
• Marketing Experiment Architect
• Brand Reputation Specialist
• Process Automation engineer
• Channel Specialist

6. Marketing Automation Melbourne Meetup
6MARKETING CULTURE (THE SCIENTIFIC APPROACH)
Data-driven Marketing

7. Marketing Automation Melbourne Meetup
7MARKETING CULTURE ( THE ADOPTION APPROACH)
Game-driven Engagement

8. Marketing Automation Melbourne Meetup
8MARKETING CULTURE ( THE GAMERS APPROACH)
Game-driven Engagement
• Know social preference of your users.
Collaboration ("female") vs Competition
("male").
• Know your player types: Explorer, Killer,
Socializer, Achiever.
• Automate for positive emotion
• Design Engagement loops for different users
• Progress Mechanics; Show users progress
along a journey to mastery
• Identify Intrinsic vs Extrinsic Rewards

9. Marketing Automation Melbourne Meetup
9MARKETING CULTURE (THE BEHAVIORAL APPROACH)
The Behavioural Mapping Process

10. Marketing Automation Melbourne Meetup
10MARKETING CULTURE
The Behavioural Mapping Process
People make decisions to maximize their satisfaction / utility. People are Predictable
- Constraints (What the individual can do)
- preferences (What the individual wants to do)
Automate around decision design.
A good campaign starts with behavioural goals. Automate your marketing with a behavioural objective
aligned with business goals
Don’t Automate your marketing for what you want people to think, Automate for what you want people
to do
Good Marketing achieves behavioural change by focusing on the customer behaviour at engagement
point.
Good Marketing Automation experts automate towards behavioural goals:
- We want people top stop doing this and start doing that.

11. Marketing Automation Melbourne Meetup
11BE & BCC
The Behavioural Economics and Behavioural Change Communication

12. Marketing Automation Melbourne Meetup
12BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
• The Endowment Effect
• Hyperbolic Discounting
• The Ikea Effect
• Anchoring Bias
• The Von Restorff Effect
• Loss Aversion
• Hedonic Adaption
• Lucky Loyalty Effect
• The Inaction Intertia Effect
• The Zeigarnik Effect
• The Framing Effect
• The Goal Gradient Effect
• The Choice Paradox
• The Rounding Price Preference
• Reciprocity

13. Marketing Automation Melbourne Meetup
13BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
Lucky Loyalty Effect
Random rewards feel more likely, the more we spend.
The more consumers invest into your brand, the more they
incorrectly believe that they’ll win entirely-random promotions
over less loyal customers.

14. Marketing Automation Melbourne Meetup
14BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
Trivialization Effect
Customers prefer a thank-you, or social validation over a small
monetary reward
By acknowledging a customer’s loyalty with a minor financial
gift, we shift their perception of the relationship to a trivial,
transaction-based one.

15. Marketing Automation Melbourne Meetup
15BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
Temptation Coupling
We’re more likely to do the hard stuff when tightly
coupled with something tempting.
In a fascinating study on improving gym attendance,
researchers have found that people who were allowed
to access tempting audiobooks of their choice ONLY
when they were in the gym were more likely to attend!

16. Marketing Automation Melbourne Meetup
16BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
Goal Gradient Effect
Our efforts increase as we move closer to a goal
A 10-space coffee card pre-stamped twice will be completed
faster than an 8 with no pre-stamps.

17. Marketing Automation Melbourne Meetup
17BEHAVIORAL ECONOMICS TRICKS
Automating for Behaviour
Inaction Inertia Effect
Missing an offer means you're less likely to buy in the future
.
Discounts sometimes reduced the perceived value of the
product, and our expectation over its value is set at a new, lower
baseline. Knowing this info and faced with the choice of buying
it at full price, the study shows it’s highly unlikely that we’ll bite.

18. Marketing Automation Melbourne Meetup
18
Discussions