Five keys to unlocking growth

in marketing’s “golden age”

McKinsey Insights & Publications webinar | February 20, 2015

Any use of this material without specific permission of McKinsey & Company is strictly prohibited
New trends shaping marketing today

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Fragmentation Explosion Data, data,

of digital data!

Always on Consumer Personalization

Personalization
power

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 This is the dawn of
a new golden age
of marketing

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The 5 S’ of the new golden age

Science

Simplicity Substance

Speed Story
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 Science
“The beauty of marketing today is
that we can really show the return.
The data allows us to demonstrate
impact in a much more transparent
way than in the past.”
Lorraine Twohill, Senior VP for Global
Marketing, Google

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Science

Better decisions to
increase impact
$200 billion opportunity

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Science: Better decisions to increase impact
Retail company

Avg. profit
for promoted
products up

288%

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Science: Better decisions to increase impact
International industry player

1.3 million transactions

Analytical rendering
100,000
price points reset

500 SKUs

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Science: Better decisions to increase impact

Wrong debate

vs.

Art Science

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Science: Better decisions to increase impact

Wrong answer

Art Science

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Science: Better decisions to increase impact

Art Science Craft

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 Substance
“Look what [luxury brands] are
doing: they’re building flagship
stores that are beautiful, where
you actually like to just browse
around before you buy. Those
are emotional places.”
Ola Källenius, Board of Management
of Daimler AG

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Substance

Moving beyond
messaging to shape
the substance of
business

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Substance: Shaping substance of business

Differentiation

Products Services Experiences

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Substance: Shaping substance of business
Energy company

7 steps

Customer
onboarding

2 steps

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 Story
“It’s not [all data]! … If you fall
down on the art, if you fail on the
messaging and storytelling, all
that those tools will get you are a
lot of bad impressions.”
Lorraine Twohill, Senior VP for Global
Marketing, Google

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Story: Better storytelling for emotional connection

What makes a good

story hasn’t changed.
HOW to tell one has.

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Story: Better storytelling for emotional connection

Old story telling BRAND

New story telling BRAND

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 Speed
“Speed comes from decentrali-
zation and creating a local
autonomy to take local action.”
CMO, Consumer goods company

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Speed

A culture of urgency
has placed emphasis
on speed and agility

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Speed: A culture of urgency to keep up with consumers

From To

Batch processing Continuous delivery

Command and control Agile

Manual Automated

Slow development Real-time test & learn

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 Simplicity
“The growing complexity is
unmanageable: in-house vs.
external partners, established
channels vs. new channels. We
need help to get through this jungle.”
CMO, Consumer goods company

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Simplicity: Simplify to execute

Speed and agility

require relentlessly focusing
on simple

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Simplicity: Simplify to execute

Complexity kills

Expanding Product and Digital and Hierarchies,

geographic channel technology silos, gaps,
footprints proliferation specializations redundancies

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Simplicity: Simplify to execute
Daimler

Complex: Disparate HQs and teams

Before

Customer
journey

After
Simplified: Single team
mapped to customer
ourney

Consistent brand experience

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The most important questions to ask

Science
Today’s insights or yesterday’s facts?

Substance
Differentiated experience or “me-too” selling?

Story
Making connections or speaking into space?

Speed
Faster than our competitors or slower?

Simplicity
Simplifying processes or overwhelming with new things?

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Stay Connected

Jesko Perrey Jonathan Gordon

Senior Partner and Leader of McKinsey's
Global Knowledge Marketing & Brand
Leader of McKinsey's Strategy Practice
Marketing & Sales
Practice

@JeskoPerrey @JWGordon

McKinsey on Marketing & Sales

McKinseyonMarketingandSales.com

www.youtube.com/McKinseyCMSOForum

@McK_MktgSales

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