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SXSW Interactive 2012: Why Small is the New Big and Big is the New Small
The document discusses the evolving landscape of business, emphasizing how small businesses are gaining advantages over larger corporations through agility and personalization, while acknowledging the challenges they face such as cash constraints and customer retention. It contrasts these with the strengths and difficulties of large businesses, including their global reach and operational complexities. The insights are illustrated with stories from small business owners and highlights the importance of leveraging technology and data in marketing to remain competitive.
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SXSW Interactive 2012: Why Small is the New Big and Big is the New Small
- 1. Why small isthe new BIG and BIG is the new small @jasonstoddard & @katmandelstein Hashtag for session: #eggcellent
- 2. The Fifth Eraof IT Technology enabled business transformation over the years Social Social Internet Internet PCs Departmental Mainframe
- 3. Market Forces: The3 P s People Process Proximity
- 4. A Maxim "The Lifeof a human being does not exist merely in the sphere of goal-directed verbs. It does not consist merely of activities that have something for their object. I perceive something. I feel something. I imagine something. I want something. I sense something. I think something. The life of a human being does not consist of all of this and its like. All this and its like is the basis of the realm of It. But the realm of You has another basis.” – Martin Buber, Philosopher via I and Thou
- 5. — I — You — It — Me & You — I & It — You & It — It & It
- 6. Scarcity is aMyth Leverage your sausage
- 7. Competition is NOTObvious Don t assume you know yours
- 8. Going Global vsActing Local è
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- 11. Small Business Advantages — Agility — Personalization (Inherently social: “Sometimes you wanna go, where everybody knows your name.”) — Specialization — Proximal — Extra-legal ;-)
- 12. Small Business Challenges — The Handshake Problem — Retention (Customer and Employee) — Cash strapped; capital constraints — Continuity (brand (association transference), knowledge, service, product, deliverability) — Scale (The Accordion Effect) — Accountability
- 13. Meet the SmallBusiness Say hello to the Liedeker family. Drew and Eileen own a residential maid service franchise. In 2010, their small business served over 700 homes in Greater Austin, Texas. In 2010, Drew’s business: • Grossed ~$2.3M in revenue. • Invested ~$14k, monthly in marketing spend. • Invested $125 - $435 to acquire a new customer. • Retained ~ 97.3% of his customers, week over week. • Drew has a MBA in finance. Drew has no coding or design ability. Most of his marketing support is from corporate or vendors/consultants.
- 14. Drew’s Perspective: “Dating back to 2003, I’ve seen and heard it all. I’ve made many mistakes, especially in marketing. I used to read everything I could get my hands on, be up on the latest trends, follow every guru. Now, I have a family. Every day I wear 20 hats and marketing is a weakness. Honestly, I avoid it… I don’t have time to learn a new skill much less a new platform, but I know I need to target the right customer to scale my business on my terms. I need something simple, that holds me accountable, gives me actionable information and still let’s me get away to pick up our kids from school, enjoy my wife, enjoy my life.”
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- 17. Collect Messages Formulate deals Communicate deals Conduct Transactions Self-serve Coupons Web site & widgets Basic storefront Assisted-serve - Quantity based Mobile App (geo) Collect payment Types: - Time specific SMS/e-mail alerts Transfer payments to - Sale/clearance - Expiration merchandise, “deals” - Purchasable coupons Social business, partner, resellers if - Just-in time offers, Deal of the Day - Facebook Pages, Places appropriate - Facebook Ads coupons -Minimum to purchase - Twitter Manage fulfillment - Announcements, -Maximum to purchase Basic Accounting events, milestones Gift cards Print Advertising - Third-party advertiser - Reverse publishing Infrastructure coupons Billboards/signage
- 18. Process Establish Implement Cra: Op;mize Analyze Report campaign performance op;mal campaign in data. results. goals. metrics. rewards. real ;me.
- 19. BIG is the new small Image from San Francisco Sentinel
- 20. Big Business Advantages — Global Reach with ability to staff resources on the ground in local markets — Diversification of Workforce — Business Process Optimization — Deep Pockets — Reserve Capital — Can afford 360 Marketing Programs — Diversification of Offerings — Innovation: R & D
- 21. Big Business Challenges — Geographically Dispersed Workforce — Challenging to react quickly — High visibility of mistakes — Commoditization of offerings — Expense pressure to reduce E:R ratio — Public company return to shareholders
- 22. Meet the BigBusiness Say hello to the IBM family. A 100 year old company built to enable businesses with technology and services. Over 430,000 IBMers globally. Owned by thousands of shareholders including Warren Buffet. Founded by TJ Watson. Led by Ginni Rommety today. • Revenue: $106,91B in 2011 • Net Income: $15,855B in 2011 • Most Patents for 19 Consecutive Year • IBM Stock over $200 per share
- 23. Ginni’s Perspective: “When I say "make a new market" I really believe one of the things that will distinguish businesses into this next decade is this area of how they use information. I don't mean that as a technical point. I mean this really, truly as predictive, analytics, I think it'll change culture, it'll change everything that you do. And I believe it'll differentiate the winners and the losers no matter what business you are in and how you do it.”
- 24. Marketing Automation Awareness Interest Desire Action 15 points 50 points 5 points 10 points Follows link or Registers & Searches for Downloads BI Downloads Registers/ ROI Tool ROI Paper BI Case Study Attends BI Event 5 points 5 points Receives Email for BI Receives ROI Tool Prospect Email Invite Re-‐enforcing Emailed Email Topics to BI Event Invitation to BI Event 25 points LDR Calls to Qualify Qualified Lead Passed to Sales 0-10 POINTS 50-100 POINTS 100+ POINTS
- 25. Key Measures forBoth — Revenue to Expense — Customer Acquisition — CPM/CPC — Lifetime Value
- 26. Time for #eggcellentSimulation