Brunch Club_ Louis Vuitton, Like Netflix (WIP)

Brunch Club_ Louis Vuitton, Like Netflix

1) One-line take

: Many of the ideas meshed nicely with what I'd just learned from the book 'Amazon Innovation', so it was a rewarding time. 

With solutions you come across from the outside on a given topic — Amazon in particular — no matter how brilliant they are, because every organization's environment is different, it tends to take time for your head to understand and for it to translate into actual work. But in 'Louis Vuitton, Like Netflix', through indirect case studies of various situations — especially ones being threatened by Amazon — where companies are overcoming or in the middle of overcoming, I was able to apply things to my own work more quickly (still in progress, of course, not finished).

If I had read this book without first reading 'Amazon Innovation', how would it have felt? If I get a chance later to join another meeting about this book, I want to go, and hear their thoughts. 

2) 3 passages that left an impression

p.201 Pareto principle: 20% of all customers generate 80% of all revenue. You need to think hard about the justification for keeping customers who hurt profitability or contribute little.  The top 5% most profitable customers accounted for 150% of profit, and only 40% of all customers showed positive profitability. Meanwhile, the bottom 10% of customers inflicted losses equal to 120% of total profit. The Whale Curve: if you accumulate profitability in order, starting with the most profitable customer, you can see that the top 20% of customers account for over 200% of profit. 

That's why it's critical to acquire and retain prospects with expected long-term profitability, and why total customer count or overall market share alone have limits when it comes to spotting customers who are eroding profit.

Reference https://mbanote2.tistory.com/197

p.213 You can use tricks to lure a click, but you can't trick people into sharing. Is it cool?,is it clever?,is it fun?,is it valuable? — you don't need to ask questions like that. Instead, you have to ask what relevance it has to the audience 

p.241 Advertising has to hit two goals at once: engagement and persuasion 

p.242 Advertisers are desperate to know everything about consumers — demographics, interests, their social graphs, what they post on social media like Instagram. Because they believe the more they know about consumers, the more relevant and refined their ads can be. But consumers are far more complex and multidimensional than advertisers imagine. A person's attitude toward a message, and their receptiveness to it, shifts drastically depending on the situation they're in 

p.243 The micro- moments era — marketing that targets the moment is needed. Even with the same content, when the context shifts, the effect plunges. Which is why the message has to be delivered at the right situation and moment. 

p.247 To grasp the consumer's intent and context in a specific moment, a company needs to map the entire journey covering every touchpoint with the consumer. Ethnographic and observational research gives you deeper insight into the consumer journey than surveys or tracing the digital trail. But when managers draw customer journeys, they tend to fixate on the product and neglect the broader journey that would actually yield deeper insight.

Examples: Sephora — to minimize customer overwhelm from too many choices in-store, they launched a mobile app that lets you scan a product with your smartphone and instantly see ratings and reviews — and DBS Bank — long before a consumer even considers applying for a loan, the bank creates value by proactively surfacing information about house prices in an area of interest and the facilities around it.

p.252 Half of ad spend is wasted. The problem is you don't know which half. Sure, advances in tech may let you track every click and discover patterns and correlations in big data. But those numbers don't show how directly they translate into actual revenue or profit. 

3) 3 key concepts

p.201 Avoid metrics about simple click-through rates, member counts, and rankings and instead, through effective monitoring — measuring customer profitability and allocating cost per customer segment — look across the full customer journey to find their micromoments (the moments of need, the patterns behind them).

And at the moment they need it — the moment their intent is confirmed — drive engagement and persuasion with snackable content matched to their appeal points (their interest categories).

p.247 Micromoments are about intent — context — immediacy in essence. 

Advertising is no longer a game fought on reach and frequency. More than ever, consumer intent matters more than the person's identity or demographics, and immediacy matters more than brand loyalty 

p.253 Correlation VS causation 

4) Reflection

First, - I'm glad I met this book not too late. It gave me a chance to look back and ask whether I'd been fixated only on the product. Customer lifetime value — something I'd set aside for a while. 

It was a great help before moving into the build project I'm on, especially the design of the analytics piece and the related content design. Before diving into tracking every single data point, I'm running an internal study with our community team to provide meaningful content within the user's journey. And at the same time inspired by Mastercard's digital engine, I'm developing our own ad engine (a community-balancing engine) that considers consumer intent.

First, we divide the inbound channels for customers, and by channel we plan content by situation and by type, considering the appeal points (interest categories) that can respond immediately to the micromoments (situations, patterns) customers meet along that journey. 

The line 'even with the same content, when the context changes, the effect plunges' is still fresh in my mind. Going forward, before I agonize over a brilliant message or a persuasive case for usefulness, I need to first think about the context and the relevance of what the service is trying to offer within the user's journey.

And in the process of creating the content that becomes that touchpoint, I'm working hard, still, on finding ways — through story-making, not storytelling — to get customers to come with intent and participate first.

5) Discussion agenda

p.256 On the discussion about the effect of page Likes — aren't my page 'Likes' just about as much as a bookmark or an RSS subscription? — what if we flipped the frame? Rather than the page itself, aren't 'Likes' and 'Shares' at the level of the content inside the page more important? For example, shouldn't we be comparing within a page the Like (Share) counts by content type? 

p.253 I felt the logical leap was extreme in 'The end of theory: the data deluge makes the scientific approach obsolete'. What is the scientific approach? Does 'scientific' only mean the scope that can be proved (solved) by definitions or formulas agreed upon in the past?

p.254 Google Correlate — looks related, doesn't it? — weren't we supposed to look at the journey?

6) Commerce business cases

The landscape of commerce is shifting. Just when it looked like we were moving from offline to onlinecommerce, O2O commerce — the two channels fused together — is taking the spotlight. And after that, personally, community commerce looks set to start drawing attention. 

Making the word 'prosumer' feel dated, many people — intentionally or not — are participating as core members of distribution. The backdrop that makes that marketplace possible is the functionally unremarkable community bulletin board. As of 2019, ordinary people operate as seller-and-consumer participants of their own cell markets via that very mundane board. 

I'd had the thought. When I searched, sure enough, community commerce was already out there. I was just the one who didn't know.

(1) Video — live commerce 

https://blog.sendbird.com/ko/%EB%9D%BC%EC%9D%B4%EB%B8%8C-%EC%BB%A4%EB%A8%B8%EC%8A%A4%EC%9D%98-%EC%8B%9C%EB%8C%80-%EC%95%9E%EC%84%9C%EA%B0%80%EB%8A%94-%EA%B8%B0%EC%97%85-%EB%90%98%EA%B8%B0

(2) Content-data commerce — StyleShare  

https://www.theteams.kr/teams/866/post/64940

(3) Content commerce — Xiaohongshu

http://www.ttimes.co.kr/view.html?no=2018051716467713896&daum 

http://www.fashionnetkorea.com/wgti/file/Weekly%20Global%20Trend%20Issue_20171207.pdf 

http://mindndetails.com/?p=1633 

Bonus. - It was a little disappointing that there wasn't much in the book about a brand like Louis Vuitton solving problems the way Netflix does. Louis Vuitton is not just a product. It's a high-end brand whose core value is scarcity. It always chases the new, but its stride is severely limited. Though it's not in the book, related success stories include:

Case 1) Gucci. 

https://www.fashionnetkorea.com/market/market_gl_fashionpeople.asp?gubun=FASHION&mode=view&strOpt=menu_cd:&idx=1289

They got strong marks not just for Gucci's visibility on third-party e-commerce sites, but also for a refined e-commerce site integrated with content for customer service, and for shoppable features. Their social media interactions also doubled year over year, and they were successful at digital marketing including search engine optimization and effective online advertising.

Gucci believed that as platforms where people can share or flaunt their taste — like social media — took root, those desires get magnified. They noticed that through the shared stream of everyday content — writing, photos, videos — consumers want to show their lifestyle to others and, through that, have the excellence of their taste acknowledged. Interpreting it through the lens of the book, I'd say this is a case that focused on user journey and intent, and that fits the book's title best of all.

 Based on the journey of millennials who carry mobile devices like a body part, they built touchpoints across multiple dimensions. First, they created opportunities to reach customers with fresh, quality content through familiar platforms, and Gucci Place (their own app) makes special stories about the brand more convenient to access, while also adding a playful hook: if you visit the actual location in person, you get a check-in badge you can share back to your own social platforms.

Not long ago, a Gucci emoticon popped up in one of my group chats, heh.

Case 2) If you ask someone 'How's your mood today?' and they answer 'Gucci', don't think of luxury goods. For the millennial generation, 'Gucci' means 'good' or 'cool'.

https://www.hankyung.com/economy/article/2018100430401

Paul Polman, CEO of Unilever — the world's largest consumer-goods company — said in a recent interview, 'The biggest threat to our company is losing the connection with the millennial generation.' 

Unilever, maker of Dove, Vaseline and others, launched 6 new products last year — the first new launches in 20 years. An eco-friendly shampoo and shower-gel series. Investment in small startups is increasing too. Kellogg (112 years old) and Campbell Soup (150 years old) set up venture capital arms last year. Nestle acquired a stake in specialty-coffee brand Blue Bottle. Tyson Foods, the biggest meat company in the US, invested in Beyond Meat, which makes plant-protein meat alternatives; drinks giant AB InBev has invested in 20 craft-beer companies worldwide over the past 2 years. 

Nestle CEO Mark Schneider recently told investors, 'The millennial generation will soon pass through the highest-income segment of their life curve', adding that 'understanding their tastes and needs is the top priority for consumer-goods companies'.

Case 3) There are also articles on Louis Vuitton's digital transformation. But... between 2011 and 2015, they ran through most of the things mentioned in this book. Yet reading 2017 coverage, the DT of the past doesn't look particularly successful. In the end, there's a bit of a 'so it just comes back to a shopping site' disappointment?

2011  http://www.vizucom.co.kr/fashionfeature/5351

2015  https://m.blog.naver.com/PostView.nhn?blogId=mprcompany&logNo=220359181627&proxyReferer=https%3A%2F%2Fwww.google.com%2F

2017 http://www.etoday.co.kr/news/section/newsview.php?idxno=1501453

2017  http://news.chosun.com/site/data/html_dir/2017/05/26/2017052602518.html

2018 http://blog.naver.com/PostView.nhn?blogId=sanail0907&logNo=221360600208&parentCategoryNo=&categoryNo=21&viewDate=&isShowPopularPosts=true&from=search