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Agile Marketing The New Imperative 2012
 

Agile Marketing The New Imperative 2012

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For both consumers and business, the world is speeding up, more uncertain and more technology-based than ever before. The customer journey has become increasingly sinuous, winding back and forth from ...

For both consumers and business, the world is speeding up, more uncertain and more technology-based than ever before. The customer journey has become increasingly sinuous, winding back and forth from online to in-store, from individual to social, from static to mobile. In trying to keep up with these changes and manage complexity, brands are faced with new challenges that traditional marketing cannot meet. We are reaching the limits of yesterday’s mass media communications—television, radio and print—and are in the midst of a paradigm shift brought on by digital technologies and the emergence of new digital marketing opportunities. This new paradigm calls for a new approach to marketing.

How to rethink marketing in the digital age? How to create, equip and organize marketing teams for meeting the needs of the new digital consumer in a rapidly changing world? How to seize the digital marketing opportunity and provide consumers with the experiences and services they have come to expect? How to reorganize marketing teams so that they can take full advantage of the benefits of digital technologies? How to effectively reconcile marketing with performance and accountability?

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    Agile Marketing The New Imperative 2012 Agile Marketing The New Imperative 2012 Document Transcript

    • ™ the new imperativeIn partnership with
    • For both consumers and business, the world is speeding up,more uncertain and more technology-based than ever before.The customer journey has become increasingly sinuous, windingback and forth from online to in-store, from individual to social,from static to mobile. In trying to keep up with these changesand manage complexity, brands are faced with new challengesthat traditional marketing cannot meet. We are reaching thelimits of yesterday’s mass media communications—television,radio and print—and are in the midst of a paradigm shift broughton by digital technologies and the emergence of new digitalmarketing opportunities. This new paradigm calls for a newapproach to marketing.How to rethink marketing in the digital age? How to create,equip and organize marketing teams for meeting the needsof the new digital consumer in a rapidly changing world?How to seize the digital marketing opportunity and provideconsumers with the experiences and services they havecome to expect? How to reorganize marketing teams sothat they can take full advantage of the benefits of digitaltechnologies? How to effectively reconcile marketing withperformance and accountability?
    • about ValtechValtech is a new breed of digital marketing and technology agency, with a globalfootprint in eight countries (Denmark, France, Germany, South Korea, India,Sweden, the UK and the USA) and approximately 1,600 employees. As a full-service digital powerhouse, Valtech delivers value to its customers throughoutevery stage of their digital projects, from strategic consulting to design,conception, development and optimization of business-critical platforms.Through its unceasingly renewed commitment to innovation and agility,Valtech helps global brands build business value and increase revenues throughdigital technologies while optimizing time to market and ROI. Well aware ofthe dramatic changes wrought by digital marketing, Valtech has created adedicated Agile Marketing™ team that brings together experts on CustomerResponsive Platforms™ (consulting, implementation, and maintenance),Digital Performance (optimization) and Agile Organizations (transformation).For commercial inquiries, please contact:digitalplatform@valtech.comabout the authorsLaura Guillemin has held the position of Digital Insight Lead at Valtech forthe past two years. Through her work in developing a strategic vision ofagile digital marketing and te chnology innovation, she has contributed tothe birth of the new Valtech and its positioning as a global digital marketingagency. Before joining Valtech Laura worked at Microsoft France developingpartnership programs for innovation and start-up ecosystem.Laura holds degrees from the Sorbonne, the HEC School of Management and theEcole Normale Supérieure.Lubomira Rochet is Deputy CEO of Valtech.She is in charge of Strategy, Marketing and new digital offerings. She has ledValtech’s new strategy and positioning around digital marketing and has developedValtech’s vision of Agile Marketing ™.
    • As the world has moved online,the distance between companiesand customers has collapsed tozero.
    • forewordForewordby Scott Brinker(aka @chiefmartec)We’re privileged to live in the most exciting time in the historyof marketing.While every profession has been impacted by the explosion of ubiquitous computing and connectivi-ty in the digital age, the impact on marketing has undoubtedly been the most profound. As the worldhas moved online, the distance between companies and customers has collapsed to zero. Googlecalls it the Zero Moment of Truth (ZMOT), and it changes everything.Previously, high costs and slow lead times were the price marketers paid to cross the physical chasmto their audience—and that bridge only went in one direction. Marketing management and infras-tructure were built around those constraints.But today, information and interactions flow freely both ways. Costs and lead times for many marke-ting activities, at least as dictated by external constraints, have shrunk. A large advertizing budget isno longer the centerpiece of marketing. Instead, customer intimacy has become the new crown jewel.It encompasses the entire firm, and it has elevated marketing to the vanguard of business leadership.I propose to you that, in this new era, the most valuable marketing capability is agility. 5
    • agile marketing™, the new imperativeConsider three waves of agile transformation in marketing.The first wave was driven by the proliferation of digital channels themselves.How long does it take for your prospects to open an email, query a search engine, jump to a web site, orengage with social media? As fast as they can click. And they can effortlessly move across the breadth ofthe global Internet as interest and inspiration strike. They are fluidly agile in the digital space.Symmetrically, how long does it take you to update your web site, send an email, launch a keywordad on Google, or share new content on Facebook or Twitter? The actual moment of publishing—andits delivery to your audience—is also done at the speed of a click. We’ve come to take this forgranted, but it is an amazing shift in the nature of communications.But the very fluidity of digital channels quickly became marketing’s bane as well as its boon. As thenumber of vehicles and individually addressable audience segments multiplied, the sheer magni-tude of deploying all of these digital messages—and servicing the resulting interactions with pros-pects and partners—outstripped the ability for marketers to implement them by hand.Thankfully, the second wave of agile transformation is now arriving: a massive new generation ofmarketing technology platforms that provide software-based levers to manage this load at scale.Marketing analytics, marketing automation, marketing optimization—these tools thrive on the dy-namics of the digital domain. They empower marketers to target and personalize thousands ofmicro-marketing interactions across all of these channels. Or, it might be more accurate to saythat they technically enable such Long Tail marketing.For many marketers, however, something else is becoming the gating factor in their performance.It is this bottleneck that is the focus of the third wave of agile transformation: making the marketingorganization itself truly agile.Up to this point, digital was largely squeezed into marketing management and governance struc-tures that predated it by decades. But now we’ve reached an inflection point where it’s manifest:digital is our new foundation, not our window dressing. To harness the agility of digital channelsand technologies, we must now adapt our organizations to operate at this new speed.Agile Marketing ™ methodologies—by no coincidence, adapted from the agile development metho-dologies that revolutionized modern software—promote a better way of managing marketing in thisdynamic environment. They let us act and react at the speed of digital. «Float like a butterfly,sting like a bee,» to quote Muhammad Ali’s famous words. It’s an approach that can make even thelargest marketing departments nimble.This paper by Valtech connects the dots between these three waves of agile transformation.It illuminates the possibilities and sketches a roadmap for moving forward. I hope it inspiresyou—for there has truly never been a better time to be an inspired marketing leader. Scott Brinker @chiefmartec President and CTO, ion interactive www.chiefmartec.com 6
    • “ Float like a butterfly, sting like a bee. ”
    • Introduction
    • agile marketing™, the new imperativeintroductionToward the end of 2011, we began to hear the term “AdaptiveMarketing” (1) increasingly often in the media and from industryanalysts. For a recently coined buzzword, it does a good job ofsumming up the need to reinvent marketing.Our preference, however, is for “ Agile Marketing ™ ”, a concept with a proven track record. The termagile is borrowed from the history of technology, but it progressively entered our world and thenbecame all-pervasive in every arena for both businesses and consumers. In the late 1990s, due tothe explosion in demand for IT services on the part of large companies and the subsequent indus-trialization of business processes, the very way in which technology projects were managed had tobe transformed. Markets, users and competitors were changing so quickly that IT projects beganto suffer from tunnel effects: Software development was lagging behind. To remedy the problem,software developers issued an Agile Manifesto. The new approach and new methodologies outlinedin the manifesto revolutionized IT project management. Flexibility, time to market and the qualityand relevance of products were vastly improved, which enabled IT departments to work more colla-boratively, deliver higher performance and drive more value.We believe that marketing is in precisely the same position that IT was in twenty years ago (2): Bud-gets are under pressure. ROI expectations are higher. Time to market must be shorter. Both consu-mers and competitors are changing at breakneck speed. The results of any operation are alwaysuncertain. For all of these reasons, we believe that marketing should be infused with the agile valuesthat have been so successful for IT development. 9
    • introductionWhat are those values? Focus on people: effective collaboration between all stakeholders, including consumers, par- tners, employees, developers, creative personnel and others. Focus on quality: product quality, customer experience quality and brand experience quality. Focus on performance: time to market, targeting and metrics. Focus on the consumer: consumer-centric, consumer-relevant, personalized and responsive.Agile Marketing ™ empowers marketers to seize the many and varied opportunities of digital techno-logy. Agile Marketing ™ empowers marketers to be flexible and responsive to change, to prove theirROI and demonstrate their performance.How? Digital can provide far better customer intelligence. Digital offers the ability to execute cam-paigns in a multichannel environment, all the while maintaining brand consistency and deliveringa seamless customer experience. Digital technologies enable continuous measurement and conti-nuous feedback so that operations can be optimized, fine-tuned or changed in real time.Agile Marketing ™ lets marketers take full advantage of these digital benefits to truly put the consu-mer at the center of every business strategy. The Holy Grail of marketing has always been to deliverthe right incentive to the right person at the right time. The agile approach allows marketers toreach, engage and convert consumers in ways that are much more relevant and personalized. Inother words... deliver the right incentive to the right person at the right time. Agile Marketing ™ lets marketers take full advantage of these digital benefits to truly put the consumer at the center of every business strategy. 10
    • Why?
    • We live in a world where technologyis advancing at lightning-fast pace,changing the way we live, work and shop.This technology whirlwind has leftbusinesses and consumers racingto keep up with it:The traditional marketing timeframeis no longer feasible.Marketing needs to be agile.
    • 01 * why marketers need to be agile? Speed, uncertainty and technology have created a new and challenging playing field for marketers From world-shaking events in global markets to everyday events in our personal lives, everything is moving at top speed and the only certainty is uncertainty. The rules of the game for businesses, especially with regard to marketing and the constant quest for the ever-elusive consumer, have radically changed.Fast and furious:The age of speed and uncertainty is driven by technology innovation. The emergence of new means of communications, particularly telecommunications, is the reason for this dramatic acceleration in our professional and personal lives. Comparing life today with life just a few decades ago, we can only marvel at what the world must have been like before the democratization of air travel, before the existence of high-speed trains and before the development of the Internet. Not to mention the most recent of these innovations: Mobile phones, now smartphones, have literally put the world at our fingertips no matter where we are. Such accelerated technological innovation is both the cause and the consequence of our high-velocity world. 13
    • agile marketing™, the new imperative Along with its many advantages, however, such speed also creates chaos and rising levels of uncer- tainty. It has become increasingly difficult to make forecasts in a world where seemingly any situa- tion can be turned on its head overnight. New and disruptive technology and devices often arrive without warning, re-arranging players and the playing field in the blink of an eye. For instance, who could have predicted the massive disruption on the telecommunications market caused by the release of the iPhone? Who could have imagined the power of social networks in toppling Arab go- vernments? Who can claim to accurately foresee the future of companies like Groupon or of social networks like Quora and Pinterest? Change and uncertainty are indeed the only constant. Time to market has never been under such a pressure and responsiveness to external change has never been such a key success factor. Conse- quently, businesses are forced to value speed and flexibility above all other qualities. Agility—both internally and on the market—is now an essential asset. This is particularly true for marketing departments, which are faced with an increasingly complex environment and an increasingly complex consumer. Digital technology has given birth to the digi- tal consumer and he or she presents major new challenges.Volatile, vocal, connected, demanding:The era of the digital consumer creates new challenges for marketers. With new technologies being released every day—not only new devices that disrupt the market, like iPhones and tablets, but new applications and new social media as well—we live increasingly connected lives. This has changed our world forever and anyone with a message to convey has little choice but to change with it. For better or worse, we have become utterly reliant on technology. We can’t manage without our cell phones and laptops, Facebook and Twitter. Children born when the digital age was already underway are even more connected. And they’re taking their parents and grandparents, sometime kicking and screaming, with them. The new consumer is born. 14
    • Tokyo New York ParisBuenos Aires Sydney SMARTPHONES THE WORLD AT OUR FINGERTIPS “Mobile phones, now smartphones, have literally put the world at our fingertips no matter where we are.” © Valtech 2012
    • agile marketing™, the new imperative The digital consumer spends increasingly more time on digital channels and increasingly less on traditional channels. The digital consumer is spending ever-increasing amounts of time with technology: on social media, mobile apps, websites, etc. She is social, local and mobile. In particular, she does more and more of her 8,2 % shopping on mobile and sales of mobile devices have outpaced sales of tra- ditional PCs. This rapidly-evolving consumer is radically different in the way she interacts with other consumers and with brands, products ando f d i g i tal tr a ffi cc am e fro m mo b i le a t services. The new, always-connected consumer expects to be able to ac-th e e n d o f 201 1 . cess content and services no matter where she is and no matter what time it is. As of end 2011, mobile accounted for 8.2% of all digital traffic, with 2.5% coming from tablet users (3). As well, the rise of mobile has meant that consumers are now connected with their communities at all times. In one enlightening statistic, 45% of local deal visitors are “very likely” to recommend a daily deal site (4). Today’s consumer is mobile and wants her experience to continue seamlessly even when she switches devices. The digital consumer is a born zapper with a shorter at- tention span. Digital consumers are multitasking consumers precisely 5 seconds because they are hyper-connected. Accustomed to exchanging messages in the blink of an eye and accessing information in just one click, they expect content to be interactive and immediately available. If not, theyis the average simply leave. Consequently, they are far more volatile. Due to the manyattention span. screens in everyone’s lives, attention spans have shortened, audiences are more fragmented and zapping has become the norm. Nowadays, the average attention span is about 5 seconds long; ten years ago it was 12 mi- nutes—144 times longer (5)! The web and new media mean that brands need to invent new ways of reaching and interacting with demanding, impatient consumers. Of course, they still watch TV, the traditional outlet for brands, but they combine it with other screens and other platforms, making it increasingly difficult for marketers to know where and how to shape their tactics to reach such erratic consumers.5,000 ad messages The digital consumer is overwhelmed by advertizing and has learned to hear and see only what is relevant to him. A person living in a city 30 years ago saw up to 2,000 ad messages a day, compared to 5,000 today. It is even worse in a digital world (6). Due toare seen by aperson living in a the many screens in their lives—web, mobile, tablet, TV—consumers arecity today. overwhelmed with advertizing and the result is information overload to an unprecedented degree. The human mind simply cannot process the vast number of messages it is exposed to on a daily basis. Along with the 16
    • 01 * why marketers need to be agile? omnipresent traditional media, signs, posters and billboards constantly clamoring for our attention, we are now assailed with web banners of all descriptions popping up every time we open a browser and every time we enter the digital world from any device or interface. Consumers are so submerged that they simply do not have the mental capacity, or the willingness, to lend their eyes and ears to information not directly related to their needs. They have learned to ignore messages that are of no imme- diate use to them and they have developed a highly utilitarian attitude toward branding and marketing.social The digital consumer is empowered in her rela- tionship to brands. Digital technologies are intrinsically interactive media (social media, mobile apps, location-based services, etc). Technology has empowered consumers and they are well of aware of that fact. They knowmobile that social networks can give them a far-reaching voice. Furthermore, they now know exactly what other consumers think of any given brand and devices ... its products or services. Brands are no longer in the lead position when it comes to shaping the way consumers perceive them. They do not dominateThe consumer the message anymore. Consider the case of Kristin Christian, an ordinaryis vocal and customer who in the pre-digital age would have had very little influence:empowered. She launched a “bank transfer day” on Facebook to protest Bank of Ame- rica’s new monthly $5 debit card fee. The response was enormous. Bank of America’s competitor Credit Union saw new accounts rise 50% (7) on the day of the event. Not to mention the public outcry when Gap decided to change its logo (8). Clearly, the illusion of brands having complete control is over: It’s the worldwide community of consumers that is now in control. The digital consumer wants personalized relationshipsC o n s um e rs w a nt with brands. In this volatile, data-overloaded environment, consumersapp reciation, are increasingly attentive to the notion of personalized relationships withrespect a nd brands. Consumers want appreciation, respect and recognition from brands and they want such consideration on an individual basis. They will be morerecognition loyal to brands that anticipate their needs and expectations, rememberfro m b ran ds. their birthdays and propose products and services suited to them as indi- viduals. Witness how Amazon built its success on showing each customer how much he matters. The Internet giant captured the market by being attentive to each consumer’s personal details and demonstrating in-depth knowledge of his history with the brand. Consumers now expect brands to take into account the particular day and date, their current location, shop- ping habits, tastes and any relevant contexts and events. The digital consu- mer does not like to feel that he is just one more mass market buyer. 17
    • agile marketing™, the new imperativeThe end of mass media: The communication paradigm has now shiftedfrom mass media to a more personalized, two-way relationship. Throughout most of the 20th century, brands had a monopoly over their messages and communica- tions were one-way, top-down, brand-to-consumer. In the old context, building marketing master plans years ahead and scheduling brand interventions at set dates (product launches, the Superbowl, the Olympic Games, etc) was effective. But times have changed drastically. Now, consumers can talk to brands—whenever they choose to do so—as easily as brands can talk to them. And consumers can talk about brands and their products as easily as brands can talk about themselves and their products. New technology has imposed a new communications paradigm that cannot be ignored. In the digital age, not only are communications multilateral rather than unilateral, but competition is fast and fierce. As mentioned above, no one foresaw the upheaval caused by the first iPhone, but companies are now accepting the fact that disruptive, and even revolutionary, new products and services, can burst onto the market with little advance notice and little time for advance planning. E- books and tablets are yet another example: Entire industries will have to regroup to make flexibility, rapid action and consumer responsiveness a priority... or face extinction. In this new paradigm, two new rules of thumb have emerged for marketers: The acceleration of market dynamics and the increasing level of uncertainty require marketers to be more responsive to change than ever before. The development of new interaction opportunities between brands and consumers requires mar- keters to engage in an ongoing conversation with consumers. Of course, brand building still entails long-term, high-level marketing strategy, but such strategies are all the more difficult to design and implement in a fragmented, multichannel environment where consumers expect interaction that is more frequent, relevant to the moment and available on any device. Certain major events will naturally continue to necessitate significant advance preparation. Marketing plans are not dead, but they must be far more supple and flexible. To cope with increased uncertainty and a world that moves at a much faster pace, the key may not be the ability to plan and schedule but rather the ability to adapt and respond to change. Marketing timeframes and consumer interactions must both be reinvented.Warning: Marketers are ill-equipped to face these new challenges. Today, most marketers are still working in environments that prevent them from being agile and responsive. Firstly, in most organizations the marketing timeframe is still anchored in long-term planning. High- level marketing plans usually run from 3 to 5 years, divided into rigid 12-month sections and based 18
    • 01 * why marketers need to be agile?on strict schedules and well-oiled campaigns. This traditional approach to planning is one of the rea-sons why time to market for campaigns is still quite long. Phrased differently, marketing remains avery linear process and one relatively disconnected from external market dynamics.Secondly, marketers are frequently ill-equipped, lacking the technology necessary for managing faster-paced,more responsive and more industrialized operations. Sony offers a typical example of this very problem. “With multiple business units such as Sony Pictures, Sony Playstation, Sony Music, and others competing for valuable real estate placement on Sony.com’s home page, the most equitable solution had always been to manually rotate creative content for various promotions. However, managing the distribution of website impressions between these business units and coordinating content was time-consuming and inefficient.” Hareem Lawrence, Executive Producer for Sony.comAs well, many companies began the digital era by developing proprietary tools that do not scale and arenot able to meet growing demand. La Redoute, with 6.5 million unique visitors per month, nearly 12,000categories for 30,000 products and 150,000 items in total, had to cope with the issue of obsolescence. “In order to manage our websites, we initially developed a tool but recognized that it had limitations in terms of speed, responsiveness, and flexibility. We needed lots of manpower to manage operations when launching new collections or during periods of heavy traffic such as holidays and sales.” Sebastien Laithier, ISD Project Manager at La Redoute.When consumers and the environment change—and as we have seen, they are changing veryquickly—either marketing becomes irrelevant or it adapts. We are now witnessing the first signs of amuch-needed revolution in marketing. As the saying goes, challenges are opportunities in disguise,but challenges they remain. A new approach to marketing must be developed and implemented,freeing marketers from the aforementioned constraints and enabling them to survive in the newenvironment and to address the new digital consumer. Our conviction: successful digital marketerswill be agile marketers. For marketers the imperative is now “Become agile, or die.” 19
    • agile marketing™, the new imperativeWhat is Agile Marketing™ ? ™Making the mostof multichannel,conversational andexperiential marketing.To address this new consumer—a vocal, volatile, connected anddemanding consumer—marketers will be leveraging the fantasticopportunities offered by digital marketing. They have already begunto do so and are starting to experience the tension between thetraditional approach to marketing and the new challenges of digital.Agile Marketing ™ is the way for them to put digital marketing onsteroids and transform its amazing potential into real ROI. 20
    • 01 * why marketers need to be agile?Multichannel, ubiquitous marketing:Seamless for consumers, painless for marketers. The main issue for marketers has always been to address the right consumers with the right message. One of the keys to accomplishing this was choosing A g i l e Mar ket i ng ™ , v i a th e the right channels to do so. For a long time things were, if not easy, at least i m p l e m e n tat i o n well-oiled, partly because the channels and the way they worked were stable, o f s up p o rtive te c h n o l o g i e s, well known and easy to identify. The multitude of new devices, which are e n ab l e s m arket ers already connected to one another and will be so increasingly, means marke- to k e e p up w i t h t he ters must manage an ever-expanding and diverse range of channels. Among n e w c o n s umer, t o s y s te m ati c ally b e them are digital channels that are relatively new to many marketers. In an wh e r e s h e is. unfamiliar situation like this, finding the right marketing mix is one of the A g i l e m ar k et ers ca n CMO’s biggest challenges. Marketers have no choice but to play the multi- b e re s p o n si ve t o channel game, taking into account rapidly growing digital channels (web, th e i r c us to mers i n r e al ti m e , any w here mobile) and the new digital environments (social media, gaming, etc.) and an d ar o un d- t he- combining them efficiently with traditional advertizing media (print, TV). clock. A look at the new consumer journey is enlightening: The new consumer starts with search engines for product research, moves to forums for peer recom- mendations, goes to a brick-and-mortar store during lunch break to see the product while surfing the mobile web or mobile apps to cross-check informa- tion and then eventually finalizes the transaction online or in a store closer to home. For marketers, he is far more of a puzzle than the traditional consumer. Not only has reaching consumers where they are become quite difficult, since audiences are fragmented and elusive, engaging with them has also become much harder. In the digital age the challenge of multichannel is not simply being present and having a voice on the right mix of channels, the challenge is, as well, to become a “conversational brand”. And being a “conversational brand” means changing the very way marketers engage with consumers. The empowered consumer cannot be ignored: Brands must do everything possible to create engagement, listen to consumers and pro- vide compelling responses to their questions and feedback. This new style of engagement, which is far more two-way than in the past, is a major aspect of the multichannel challenge. Marketers must effectively reach customers at every brand touch point in order to ensure that their experience is seamless. Because it relies on digital marketing platforms, Agile Marketing ™ means: Industrialization of marketing initiatives and centralization and ratio- nalization of brand assets, consumer data and product information The ability to test, experiment and shorten campaign time to market Multichannel capabilities for a consistent brand experience and a seamless customer journey Real-time responsiveness to rapidly changing consumers and competitors 21
    • agile marketing™, the new imperativeTargeted, relevant marketing:The strength of personalized marketing. We have mentioned the extent to which customers are inundated with ad- vertizing messages and how, consequently, personalization and relevance A g i l e Mar ket i ng ™ i s ro o te d i n hy per- are now the cornerstones of successful marketing. Marketers can no longer d e tai l e d c ust o mer afford to rely on intrusive, interruptive advertizing because, quite simply, d ata c o l l e c t ed th ro ug h ana ly t i c s consumers no longer pay attention to it. They ignore the banners that pop to o l s th at ena b le up while they’re watching a YouTube video, reading a blog post or gaming m ar k e te r s to t a rg et on Facebook. Such invasive advertizing is grounds for divorce between a e ac h an d e very c o n s um e r b a sed brand and its customers, and brands that believe such practices at least o n h e r i n d i vi dua l create awareness are going to be proven wrong most of the time. i n te rac ti o ns w i t h th e b r an d . In fact, as one media company expressed it, “You’re more likely to sur- vive a plane crash or win the lottery than click on a banner ad”. (9) A g i l e m ar k et ers a re r e l e v an t m a rket ers. The digital consumer is, in his own way, a marketing expert. Digital natives grew up with these ads, saw how they developed and are well-versed in acces- sing content while remaining completely oblivious to or even blocking any- thing that does not interest them. The proof is in the pudding: Products like Ad Block sell very well. The challenge for marketers is to become more ac- curate and more relevant as well as to provide consumers with personalized messages, customized products and more extensive services based on those products. The digital revolution has, needless to say, put many tools at the disposal of marketers that allows them to attain a high degree of relevance. Because it relies on analytics and the systematic use of data, Agile Mar- keting ™ means: Targeting, relevance and personalization to meet each individual consumer’s expectations and needs Testing, experimentation and continuous optimization, feedback-dri- ven marketing tactics and a focus on creating value Data-driven, accountable marketing 22
    • 01 * why marketers need to be agile?Reactive, responsive marketing:“Test, listen, adapt” are the new watchwords. In our high-velocity world, not only do consumers change their minds every morning, competitors also create new products, services and ideas that no A g i l e Mar ket i ng ™ combines one saw coming. Increasing economic insecurity and the feeling that almost te c h n o l o g y a nd da t a anything can happen—and happen overnight—adds to the impression of wi th o rg an i za t i o na l c h an g e to crea t e dizzying speed. Such fickle consumers have lost any sense of loyalty to th e m o s t ada pt i ve brands, so marketers are always struggling to find the next good idea and an d fl e x i b l e fo rm find it faster than their competitors. In such a climate of uncertainty, the big- o f m ark e ti ng m an ag e m e nt — gest challenge for marketers is to become more flexible and more responsive m ar k e ti n g to what is happening “here and now.” What’s happening on the market and m an ag e m e nt t ha t s ati s fi e s c o nsumers what their customers and competitors are saying and doing. It is no longer o n th e fl y by t a ki ng feasible to spend an entire year on a new campaign, simply because by the ful l ad v an ta g e o f i n d i vi d ual c ust o mer time it is released the world will have changed so much that the message fe e d b ac k . could be irrelevant, or worse, completely inappropriate. A key part of this challenge involves nothing less than revamping the overall approach to marketing. In fact, the very idea of campaigns, at least in their traditional forms, may have seen its day. Although somewhat of an exagge- ration, “Campaigns are dead” is a statement that can be heard or read with increasing frequency. Long-term, year-long planning will have to be balanced with a test-and-learn approach, which leaves more room for experimenting with new tactics, measuring results and moving ahead with initiatives that consumers truly respond to. Because it is relies on governance by all stake-holders and flexible, res- ponsive project management, Agile Marketing ™ means: Enhanced collaboration between marketing and IT to avoid tunnel effects and shorten time to market Responsiveness to change Enhanced control over budgets and schedules Alignment of marketing goals with business goals 23
    • What?
    • The three pillars of Agile Marketing™ are:multichannel platforms, dataand governance.Agile marketers should build CustomerResponsive Platforms that enablemultichannel, real-time testing.Agile marketers should nurturea data-driven culture.Agile marketers should implement faster,flexible and more collaborative internalgovernance.
    • 02 * what does it take to be agile?Step One:Implement CustomerimplementResponsive Platforms™and develop multichannel,real-time marketing. To develop truly responsive and consistentWhat’s marketing across all channels, marketers canat take advantage of a wide range of technologies stake? that form a “ Customer-Responsive Platform™ ” and help them address consumersBeing whereconsumers are, in a seamless manner, wherever they are andon every channel,anytime and with the right message.on the fly and These platforms alleviate the pain of havingoffering them aseamless customer to manage channels separately and enableexperience acrossall touch points. centralized brand content management. 26
    • agile marketing™, the new imperativeCustomer-Responsive Platforms™for managing seamless multichannel marketing To address the digital consumer, marketers must manage publishing across all existing devices and platforms. The technology landscape is highly fragmented and markets have no choice but to confront this diversity. Such a situation can be a nightmare for marketers, given the constraints in making content accessible on iOS and Android, on Internet Explorer, on Google Chrome and Safari... not to mention Facebook. The right technology platforms, however, can enable effective multichannel marketing by cen- tralizing a brand’s digital assets, product information and consumer data. Customer-Responsive Platforms that integrate the necessary bricks, such as Digital Asset Management (DAM), Product Information Management (PIM), and Web Content Management (WCM), are making it easier for marketers to manage multichannel, multi-country campaigns. When these bricks are efficiently connected, relevant content can be easily offered to the customer across all brand touch points, greatly enhancing his or her overall experience. Moreover, these platforms manage content so that it is usable on all types of screens and devices by automatically adapting the content to the targeted platform or environment. In doing so, they dra- matically reduce the risk of damaging brand consistency across channels. Since content, assets and data are all centralized at one access point with one interface, marketers can ensure that all creative elements are used on the right channel, at the right time and with the right message.Customer-Responsive Platforms™support on-the-fly message production and publishing. Customer-Responsive Platforms™ that centralize content and data create a high degree of flexibility and make it much easier to industrialize marketing operations. Cross-channel publishing—on web- sites, mobile websites and social media—is easy because marketers do not have to make their way through a jungle of tools to find the right content, the right creative materials or the right product information. These platforms also enable the brand to deploy truly satisfying customer experiences because, as well, they integrate the entire marketing chain, from designer to publisher. Consequently, marketers have much more time to focus on creativity, strategy and responsiveness. As the process for effectively addressing consumers has been industrialized, personnel can devote themselves to activities that are truly value-added, the very activities that increase marketing ROI. 27
    • 02 * what does it take to be agile?Customer-Responsive Platforms™help drive real-time responsiveness and enable experimentation By driving industrialization and boosting flexibility in marketing, these Customer-Responsive Plat- forms™ dramatically shorten time to market for multichannel campaigns. Therefore, one of the most value-added benefits of such platforms is enhanced responsiveness on one hand and more effective experimentation on the other. Managing every marketing channel, creating new banners, pushing the content wherever and whenever... all of this means that marketers can react almost in real time to any event or any development. For example, when a competitor releases a new campaign or when negative buzz arises about the brand or one of its competitors, marketers can quickly respond with messages that are relevant to the situation and to customers. Along with facilitating responsiveness, such platforms help brands become far more proactive. Campaigns can be developed and released fas- ter, and the price of testing and experimenting is drastically lowered. Marketers are therefore in a posi- tion to see what works and what doesn’t and are much freer to correct or fine-tune their operations. In short, the right platforms are true drivers of change in marketing performance and marketing culture. The result For customers: a consistent multichannel brand experience across all touch points. For marketers: the ability to produce campaigns with a shorter time to market and greater free- dom to focus on creativity and responsiveness. 28
    • agile marketing™, the new imperative How La Redoute geared up for additional growth with Adobe CQWith 6.5 million unique visitors per month, and automatically prioritize mana-11 million page views daily, nearly 12,000 gement of one item over another. Thiscategories for 30,000 products and 150,000 was important for helping us manageitems in total, La Redoute is a top-ran- our sales operations with more flexi-ked player in the retail apparel sector. As bility,” said Laithier.the company has websites in more than10 different countries, managing content Adobe CQ was also chosen because it provedcreation and publishing was a monumental to be rather intuitive in its usage, adaptive andchallenge. The marketing teams needed a user-friendly. “We can quickly executeplatform that could automate the publishing searches to find a file and change set-of product information and allow for greater tings. Adobe CQ DAM provides all theflexibility in applying data changes to web- versions of image sizes necessary forsites in a variety of different languages. listing a product online and it can put“We wanted to be able to manage these pictures in their proper placesmultiple languages and to be able to on the sites,” added Laithier.quickly develop new features for the “Automating previously manual taskswebsites. We wanted to integrate ISO- allows for faster processing and bet-level functionality in the short term ter service,” says Laithier. Thanks to thisand automate processes that were new platform, La Redoute teams are more res-previously manual,” explained Sebastien ponsive to customer demands and are better atLaithier, ISD project manager at La Redoute. handling heavy traffic. “Our teams varyBy implementing Adobe CQ Digital Asset Mana- in size depending on the location, sogement (DAM), La Redoute enabled its teams automating product prioritization forto easily and effectively manage product photos sales campaigns enables us to updateand logos and link them with products and their the site instantly with accurate datacolor variations. Concurrently, the retailer also instead of relying on manual entryimplemented Adobe CQ Web Content Manage- that is slower and prone to errors,”ment (WCM), which enhances content from concludes Laithier. Moreover, La Redoute canAdobe CQ Dam with complementary data that now improve data sharing between countries,streamlines creation, publication, product asso- with flowcharts of products and visuals createdciation, sorting and product showcasing online. for one site or across all of them.“With Adobe and our existing web in- In short, the Adobe CQ publishing plat-frastructure, we wanted to prove that form allowed La Redoute to comfortablywe could generate product descrip- increase the amount of content on its web-tions that show variations for several sites and optimize publishing processes forcompeting versions of the product over one million product listings. study case 29
    • The right platformsare true drivers of changein marketing performance and marketing culture.
    • day day day Web 2 WEEKS ITERATIONS MULTICHANNEL PUBLISHING FOR CAMPAIGNS 1 DAY day day Mobile Service agencies Providers day Tablet MARKETING IT log TEAMS TEAMS ck Ba ily Da ings t ee m Kiosks Inception day Phasis 1 day TESTING FOR OPTIMIZATION & Scoping CUSTOMER MARKETING RESPONSIVE ANALYTICS Advertizing PLATFORM ™ day day Social day day day Inception Phasis Backlog / 2 weeks 1 day Customer Responsive Analytics Testing Cross-channel & Scoping Daily meetings iterations iteration Platform™ (C.R.P) for Optimization & ROI-driven marketingPresence of all stakeholders Definition of a project backlog Every two weeks or so, the back- Every day, project stakeholders Using the potential of a centra- With analytics plugged on it, Thanks to the collected data, The combination of platforms,(Internal & External; IT and of prioritized features and ob- log is reviewed with all stakehol- evaluate the advancement of the lized content platform, marke- the platform also becomes a digital marketing can be stee- analytics and agile governanceMarketing bridge), Definition jectives with a daily follow up ders and adapted, based on la- project and redefine the priori- ting teams can publish content data platform, tracking consu- red towards performance, tes- allows for a smart, ubiquitousof a common and shared Stra- by each stakeholder. test data collected and priorities. ties, sharing their difficulties and and easily build their digital cam- mers’ behaviors and the per- ting many ideas and focusing and relevant marketing.tegy with built-in KPIs. best practices. Transparence and paigns on a cross-channel basis. formance of each marketing on those that drive ROI. collaboration is made easier. initiative. Agile Marketing management © Valtech 2012
    • 02 * what does it take to be agile? Step Two: Implement web analytics & develop a culture of data Along with the greater flexibility and What’s responsiveness, these Customer-Responsive at Platforms™ are made even more effective by stake? the addition of web analytics tools. B e i n g r e l e v a nt t o Analytics provide an individualized 360-view v o l ati l e c o nsumers an d e n s uri ng t ha t of the consumer for enhanced personalization m ark e ti n g budg et s a re al l o c ate d to i ni t i a t i ves and targeting, more accurate customer th at trul y d r i ve va lue fo r th e b ran d. intelligence and more valuable measurement and feedback.Web analytics produce behavior-based versus attitude-based customerintelligence to better target and reach consumers and prospectsthroughout the cycle. Digital technologies are an unprecedented opportunity for marketers to learn what individual consu- mers actually do when they interact with their brand (behaviors) instead of making broad assump- tions based on surveys and focus groups (attitudes). 32
    • 02 * what does it take to be agile? To accomplish this, marketers can turn to existing tools that, when added to Customer-Responsive Platforms™, evaluate what people do on websites, mobile apps, social media, etc., as they are actually doing it and follow their customer journeys in real time. Web analytics tools are being improved every day so that they now encompass more channels and can produce a comprehensive, accurate, cross- channel view of an individual consumer’s journey. Since these tools now extend to mobile and social as well as combine data from other sources such as CRM and market insights, they are becoming even more powerful in their ability to monitor behaviors with precision. Analytics tools are able to provide such highly detailed information because they can track each indi- vidual consumer on media owned by the brand as well as on paid media. Consequently, they make it possible for brands to personally target every consumer with messages, content and offerings that are truly relevant to her. They do this by providing marketers with concrete—real-time and historic—beha- vioral data on that individual. With the technological resources to properly sort and analyze such data, brands can enhance their performance at every step of the cycle, from acquisition to conversion to retention. Indeed, when marketers have tools that can tell them what each customer is actually doing and what they did in the past, they can be drawn in with a range of tactics undreamed of in the past. For example, marketers now know that this is a given consumer’s first visit to XYZ website and they know she landed there after typing “green shoes” on Google. Green shoes are automatically displayed on the landing page. They might, on the other hand, learn that she has been to ABC website several times and searched for women’s jewelry but never completed a purchase. In which case women’s jewelry will be automatically pushed the next time she returns to the site. In yet another example, if she is a regular customer on such-and-such website, she will be shown special offers on her next visit (see Amazon). These are just a few simple illustrations of how brands can be more relevant to custo- mers by using web analytics tools to identify their individual behaviors. Moreover, in an environment where consumers are constantly assailed by advertizing, these tools help transform marketing from pure content into a real service. Marketing gains enormous power when it becomes a genuine service, a service that alleviates the pain of consumers lost in the digital jungle and, sometimes desperately, trying to find the product they need at a price they can afford. Bet- ter still, brands can provide this much-needed service while driving consumers to their own websites.Analytics pinpoint which marketing initiatives really create value for the brand,a.k.a., the test-and-try approach Analytics not only supply marketers with behavior-based customer intelligence and targeted marke- ting, they also give them the means to monitor their digital initiatives and measure ROI in real time. Once the relevant performance indicators are defined, such ROI data on digital campaigns can be quite valuable. Traditional marketing could rarely be precisely evaluated simply because it is impossible to determine things like, for example, how many people actually saw this or that billboard. Digital mar- keting, on the other hand, can be evaluated with a high degree of exactitude if marketers are equipped with the right tools. Today it’s quite easy to find out exactly how many people clicked on a banner or 33
    • agile marketing™, the new imperative purchased a product on a given website. A further advantage is that marketers need no longer wait until the campaign is over to measure its effectiveness: Performance evaluation can be done in real time while the campaign is live. Web analytics are nothing less than a revolution in marketing because they pave the way for continuous testing and optimization. With traditional advertizing, it was very difficult to determine which initiatives were actually driving value. As famously phrased by John Wannamaker and expressed later by The Coca Cola Company CEO: “Half the money I spend on advertizing is wasted; the trouble is I don’t know which half.” (10) By monitoring the effectiveness of pushing various different creative materials, different products and different messages, digital marketers will have the customer feedback they need in order to focus on tactics that actually create value and optimize operations in almost real time. Marketing tactics that do not drive value are abandoned, so, once again, resource allocation is significantly improved. Known variously as test-and-try, multivariate testing or A/B testing, this practice is only beginning to take hold as brands start to comprehend the full potential of digital tools.Analytics enable more performance-driven marketing,marketing that increases business and empowers marketers With digital, and especially with analytics tools, marketers are now able to provide specific, concrete proof of the value they create for their companies. They have the necessary tools to better allocate budgets and better drive ROI. They gain more credibility and more traction in decision-making. When equipped with top-quality reporting dashboards that clearly indicate which initiatives work, the CMO is truly empowered to implement performance-driven marketing—marketing that not only benefits the brand but also shows the value of marketing within the company. Moreover, as the frontier between commerce and e-commerce becomes increasingly blurred, more and more value will be driven directly by digital channels. Marketers will derive their power from their ability to track ROI on all channels. They will be able to identify key conversion drivers and pinpoint the most profitable initiatives and focus their investments accordingly. More than ever before, the mastery of marketing for e-commerce will be the paramount issue for brands. And the alliance of Cus- tomer-Responsive Platforms™, digital performance tools (analytics) and e-commerce modules will be the winning combination (11). The result Performance-driven, consumer-relevant marketing that delivers superior ROI and supports digital commerce. 34
    • 02 * what does it take to be agile? How Thomson increased the conversion rate from 6% to 15% with Adobe Site CatalystOne of Thomson’s strategic brands is RCA, key landing pages, which featured Flash moviesa leading name in consumer electronics and expressly designed to capture their attention.the flagship for Thomson products in the “We created another set of pages thatAmericas. RCA’s business model involves were identical in every way, excepteducating website visitors about products we replaced the Flash movies withand then driving them to purchase items graphics. We discovered that visitorsat one of its dealers’ sites or retail stores. stayed on the graphics but were stillHence, the website was designed to quickly leaving the Flash pages because thelead visitors to data about the products thatinterest them and keep them on the site movies either did not download or tookuntil they are mature for final purchase. too long to download. Armed with thisThomson, however, faced a major problem: information, we were able to persuadeThe company was not able to effectively the managers who wanted to keep themonitor and influence visitor behavior. movies that they were not working“We could never gather the metrics we and we received permission to changeneeded to understand why visitors fol- the pages,” explained Heacock.lowed the paths they did on our site,” Managers themselves are now requesting analyticsstated Chris Heacock, Global Marketing because they realize that such data enable them to& Sales Systems Architect at Thomson. make accurate, informed decisions. Today they“For example, we noticed that visitors are empowered to do more than cross their fin-were immediately leaving several key gers and hope for the best. According to Leacock,landing pages that we specifically “We now have concrete, quality databuilt to lead them deeper into the site. backing up every decision we make.Our web analytics were so unreliable No more guessing or spending extrathat we often made assumptions about money to find out if one tactic is betterwhat they meant. Managers stopped than another.”asking for the numbers since they pro-ved misleading and unhelpful.” With the right tools and data management, no matter what changes take place on the marketReliable data was all the more critical to Thom- Thomson is confident that it will be agile enough toson since they test how well new products sell adapt, test and respond to the brand’s advantage.on their site before recommending them to Heacock concluded, “Before, we estimateddealers, and they were highly dependent on we had a 6% conversion rate, but thatmetrics to prove to dealers that rcaaudiovideo. was only a guess because of poor qua-com was effective at driving business their way.Thomson turned to Adobe SiteCatalyst, a solution lity data. SiteCatalyst has helped usthat took only a few weeks to implement. The increase our dealers’ sales, which im-electronics brand was then able to perform A/B tes- proves our bottom line and restoresting to determine why visitors were leaving their trust in our web metrics". study case 35
    • In store PERFORMANCE & DATA DRIVEN MARKETING marketing CUSTOMER RESPONSIVE PLATFORM ™ research web analytics LS Personalized Call center MARKETING ET OO 360° VISION OF CONSUMER DATA RE ATI V Marketing C serial analytics Social media CRM Multi surveys Channel ES UL MultichannelConsumer Website ME NTR Marketing GE NA MA IGN ERP PA M CA COMPANY Mobile app / site DATA financial data Marketing as a Service Online advertising ( (Display, sem, affiliate, ...) DATA WAREHOUSE Consumer Brand DATA Content Optimization Touch Points The Customer Responsive Platform™ at the core of Marketing optimization © Valtech 2012
    • 02 * what does it take to be agile? Step Three: Implement an agile approach to governance and methodology Equipped with Customer-Responsive What’s Platforms™ and empowered with at analytics tools, marketing teams stake? will have everything they need for Being both flexible and adding maximum value to their efficient so that ongoing experimentation and digital strategies. But, as always, optimization are possible which, in turn, enables implementing the right technology is maximum responsiveness to consumers’ ever- useless if the company is not properly changing expectations. organized to take advantage of it.Customer-Responsive Platforms and analytics toolscan only drive value in an agile management environment. To take full advantage of Customer-Responsive Platforms™ and analytics software, mar- keting departments need to value data and high performance on a continuous basis in day-to-day operations. 37
    • 02 * what does it take to be agile? One of the major disruptions introduced by digital marketing is the sheer amount of data generated by consumers and made available to marketers through analytics software. Marketers should know how to gather, process and analyze this data if it is to enable them to make better decisions and drive operations. Maximizing the benefits of Customer-Responsive Platforms™ and analytics software also means chan- ging the way marketers work: Marketing teams will have to shorten their usual cycles and will pro- bably need to introduce brief daily meetings to share their insights, data and analyses. The ROI made possible by this new technology is contingent on shared, rapid, real-time decision-making. In the past, campaigns were assessed once they were over—there was simply no other way to assess them. Now every operation can be fine-tuned on an ongoing basis. Continuous feedback will compel marketers to abandon their current linear approach for a cyclical, iterative approach.Agile methodologies mean focusing on quality and efficiencyin digital marketing projects and campaign management. The key principles of agile digital marketing management are based on streamlined methods that pre- vent wasted time and resources. Clear goals are established but minor details and small-scale require- ments are decided upon as warranted during the project lifecycle. Lengthy upstream analysis is jettisoned in favor of short project inception times. Agile marketers can de- liver the highest priorities early on and then continuously build the experience for consumers, integra- ting feedback and enriching the product or service. This approach to marketing is similar to the notion of “beta” in software development: It is more effective to optimize the product/campaign based on user/ consumer feedback along the way rather than trying to anticipate every single variable before release. When the project is launched, adequate time should be devoted to customer experience, concept de- sign and development, architecture and graphic design. Key performance indicators that are consistent with project goals should also be defined from the beginning. One, or a maximum of two, iterations should be the norm for designing projects. This notion of time-boxing and defining a set number of iterations is crucial to Agile because it moves projects forward as quickly as possible. The implementation work for an agile project follows a strict routine of two-week iterations, beginning with planning sessions and daily status meetings and en- ding with a demonstration to stakeholders and a review designed to improve the team’s efforts for the next iteration. At the end of the iteration, all stakeholders, including agile marketers, plan for upco- ming iterations along with analysts, concept developers and creative resources. When a campaign or product is launched, analytics will measure real consumer behaviors and responses and the necessary improvements will be fed back to a list of new requirements. This approach generally entails less reworking than traditional methods, thanks to regular iterations and adaptations. Consequently, budgets and schedules are easier to control and monies are spent more economically and efficiently. 38
    • agile marketing™, the new imperative One of the key advantages of this approach is that all stakeholders collaborate from the start. Only the inclusion of all relevant stakeholders – internal and external – beginning with the inception phase and continuing throughout the project lifecycle can guarantee success. Indeed, the stakeholders them- selves will have jointly defined the criteria for success. They will have followed every stage of the project and will have had the opportunity to respond to analytics feedback and influence the operation until completion. In our current complex environment, brands and marketers are ill-served by siloed organizations, nor can they remain in simplistic brand vs. service provider relationships. The agile approach relies on conceiving of all stakeholders as part of an interdependent eco-system which includes a variety of players from a wide spectrum of disciplines—ranging from technology to branding to advertizing, from content provider to platform enabler, etc. This requires fostering collaboration and bringing to- gether all stakeholders in regular meetings to ensure that objectives and priorities are shared, timing is respected and budgets are under control and allocated in an optimum fashion. There is no one-size-fits-all method for Agile Marketing ™ . But the above provides a glimpse of how pro- jects can be managed to best benefit from digital technology and win over the new digital consumer.Agile governance helps foster collaboration between marketing and IT. Ranking high among the new players that marketing managers will now have to deal with regularly are the brand’s internal and external technology partners. In the past, CIOs and CMOs had few opportuni- ties to talk to one another and often knew very little about their respective tasks. The advent of digital marketing, however, means that they will be seeing much more of each other and closer collabora- tion will be the norm. Agile Marketing ™ takes this new relationship into account and builds bridges between marketing and IT providers, both internal and external. One of the main reasons for such stepped-up collaboration is the vast amount of private customer data generated by digital users and the related feedback-based databases. Privacy issues regarding personal data collected by marketers are already in the headlines and this matter will become ever thornier as technology advances—today’s mere molehills of data will be mountains tomorrow. To ensure their privacy policies are effective and in compliance with regulations, it will be imperative for marketers to cooperate closely with their internal IT departments and external IT agencies. If not, they are in- creasingly likely to face potentially costly legal problems as well as possibly irreparable damage to their reputations and loss of consumer trust. 39
    • feedback-driven strategy release often, release fastco-creationwith clients collaboratin & ecosystem test & continuous optimization reactivity to change benefits COST-EFFECTIVE business alignment Focus on quality SHORTER TIME TO MARKET PROVEN ROI REAL TIME ADAPTATION Ability to change your mind AGILE FOR MARKETING PRINCIPLES AND BENEFITS The Agile virtuous Curve © Valtech 2012
    • what do you get from being an agile marketer ? We define Agile Marketing ™ as a marketing approach based on three pillars that empower marketersto take the fullest possible advantage of digital technology.
    • Industrialization of marketing 1. initiatives, centralization and rationalization of brand assets, consumer data and product information Because it relies on The ability to test, experiment and Customer- Responsive shorten campaign time to market Platforms, Multichannel capabilities for a consistent brand experience and aAgile Marketing means: ™ seamless customer journey Real-time responsiveness to rapidly changing consumers and competitors Targeting, relevance and 2. personalization to meet eachindividual consumer’s expectations and needs Because it relies on Testing, experimentation and analytics and thecontinuous optimization, feedback-driven marketing tactics and a focus systematic use of data, on creating value Agile Marketing™ means:Data-driven, accountable marketing 3. Enhanced collaboration between marketing and IT to avoid tunnel effects and shorten time to market Because it is relies on Responsiveness to changegovernance by all stake- holders and flexible, Enhanced control over budgets responsive project and schedules management, Alignment of marketing goalsAgile Marketing™ means: with business goals
    • How?
    • Similar to what IT departments underwentseveral decades ago,marketing is set to undergo nothing shortof an industrial revolution—radical changes necessitated by thechallenges of multichannel communicationsand the data explosion.Streamlining, rationalization andcollaboration are essentialto industrialized marketing.We see agile as a key driverin this transformation.
    • 03 * how agile will drive marketing’s industrial revolution?Digital technology isan unprecedentedopportunity for marketers,provided they becomeagile enough to seize it.Thanks to digital technology, the playing field for marketersis bigger than ever. Instead of only reaching customers andpotential customers while they are watching TV or reading amagazine, marketers can now reach them wherever they are,catch them in the most receptive situations and drive them tobuy. Yet this requires marketers to, firstly, become tech-savvy—they have to master the technology that will enable them to reachout to, engage with and convert customers like never before—and, secondly, to make the necessary changes to their culture andto their organization. 45
    • agile marketing™, the new imperativeThe plethora of new devices and channels allows marketing to reach consumers anytime, anywhere,on the fly. But digital marketing does much more than widen the scope for brand communications. Italso radically transforms the way brands interact with consumers. By enhancing brand content withvideo, storytelling and other features, digital marketers can create closer, more continuous and longer-term relationships with consumers. Mobile and web applications allow brands to provide consumersnot just with products, but with a variety of services that enrich the product experience. Here is where“SoLoMo” comes in, the combination of social, local and mobile that is ripe with potential for digitalmarketers. Mobile phone geolocation services enable marketers to target prospective customers at thevery moment and in the very situation where they would be most receptive to a particular product orservice. Brands have already started surfing the SoLoMo wave via mobile apps that detect a customer’spresence in a mall and promote special offers in his favorite store or entice him to visit a nearby res-taurant. Leveraging local marketing with mobile marketing is one of digital’s most promising uses.Social media, especially social networks, are another key area of digital potential. The soft power ofinfluence, driven by online communities of interest, has already shown its strength and continues tobe explored by marketers. There are, of course, significant risks for brands in such an environmentand the emergence of community managers in major companies makes the point eloquently. None-theless, building on the consumer’s social graph empowers marketers to not only to extend their reachand increase awareness but also to target qualified audiences and increase their transformation rates.The convergence of online and mobile devices, channels and usages leaves the door wide open to amyriad of new marketing practices. But marketers must have a good grasp of the increasingly complexcustomer journey as well as the mechanics of multichannel operations. Although these are mattersof strategy and planning that cannot be solved by technology alone, marketers still need the mostadvanced equipment and basic knowledge of digital technology in order to understand the expecta-tions of the new consumer. 46
    • 03 * how agile will drive marketing’s industrial revolution? The digital marketing opportunityTraditional Marketing is based on... Digital marketing can be... INTERRUPTION Vs. CONTEXTUALIZED SINGLE EVERYWHERE Vs. CHANNELS / MULTICHANNEL ATTITUDE-BASED Vs. BEHAVIOR-BASED ONE-TO-MANY PERSONALIZED Vs. AND TARGETED APPROACH EVALUATION EVALUATED AFTER THE CAMPAIGN Vs. IN REAL TIME ONE-SHOT CAMPAIGNS FEEDBACK-DRIVEN Vs. & CONTINUOUSLY OPTIMIZED WITH LITTLE CAPITALIZATION LONG TIME EXPERIMENTAL WITH TO MARKET Vs. FASTER TIME TO MARKET The digital marketing opportunity © Valtech 2012 47
    • agile marketing™, the new imperative Vision Agile Digital Marketing will fuel the marketing revolution Agile digital marketing is paving the way for marketing’s industrial revolution, a revolution created by technological advances that are transforming business methods and models which, in turn, are gradually transforming organizations.Technology & Innovation:Full-fledged Customer-Responsive Platforms™ coupled with analytic toolsenable marketing industrialization, rationalization and optimization. Digital technologies empower consumers and marketers. The latest generation of technology platforms, such as Adobe CQ5, Sitecore or Episerver, makes life easier for marketers and help them do what they need to do: Reach, engage and convert consumers on a multichannel basis Deliver a seamless brand experience across all channels and devices Protect the brand in the digital environment Be fast to market and deliver campaigns quickly Drive ROI 48
    • 03 * how agile will drive marketing’s industrial revolution? By implementing solid web and content management systems, companies provide their marketing departments with a centralized platform for digital assets, product information, customer data and insights. These platforms are at the core of marketing industrialization, as they also allow marketers to manage and automate major parts of campaigns. Hence, they can push their message and content on a multichannel basis, managing their websites, social media channels, mobile channels, and even point of sales devices from a single platform. Since so many operations can now be automated and so many assets centralized, the time to market for campaigns is dramatically reduced. Coupled with web analytics tools, these platforms enable marketers to define targeting and perso- nalization rules so they are as relevant as possible for their customers. They form the cornerstone of the industrial revolution in marketing: Digital technology platforms industrialize the entire campaign cycle, from content creation to behavioral targeting and re-targeting, with continuous and near real- time optimization fueled by consumer feedback. Last but not least, by combining the power of these platforms with the power of analytics, marketers can drive their strategy through relevant KPIs and ensure that budgets are allocated to campaigns, me- dia and tactics that boost ROI. With customizable marketing dashboards, these platforms afford a clear view of performance for each channel and every tactic. Since they free up more time and resources for experimentation and for focusing on what actually drives value, the new Customer-Responsive Platforms™ pave the way for truly performance-driven marketing.New methodologies & business models:Traditional marketing methodologies that assess customer expectations andneeds (focus groups, attitudinal methodologies…) are being outsmarted by new,behavior-based customer intelligence methodologies based on “big data.” Despite the many disruptions wrought by digital technology, the essential tasks of marketing remains unchanged: understanding consumers and building brands. Over the decades, marketers developed a wide range of methods designed to explain what consumers do and why they do it. The goal was to gather information that would help define strategy for future products and campaigns. Their methods were based on defining consumer attitudes. Through surveys and focus groups, quantitative and qua- litative approaches, marketers created consumer typologies and assigned certain attitudes to certain typologies. For example, they would study a panel of consumers and reach the conclusion that white American women between 25 and 45 buy more apparel online than the average population but they spend less on shoes online than they do offline. Marketers would then extrapolate from these conclu- sions to build their strategies. Such methodologies are based on representative samples and probabilities, and they should not be discredited. Nevertheless, the digital technology revolution has made it possible to gain a far more subtle, precise and targeted view of consumers. Gleaning an idea of the attitudes of “white American women between 25 and 45 years old” is no doubt better than nothing, but the variations and variables among such a vast category of consumers render any conclusions about them somewhat reductive. 49
    • agile marketing™, the new imperativeOne of the most exciting aspects of digital is that it enables behavior-based rather than attitude-basedconsumer intelligence. What’s the difference? In the digital world, consumers leave usable traces oftheir preferences everywhere, on websites, cookies mobile apps, Facebook, etc. These footprints pro-vide concrete information about their behavior, in other words, what they actually do instead of whatthey might be likely to think and do based on gender, age and other highly general criteria.For example, we can know that a specific consumer came to a given website after she performed aGoogle search on “black dress,” that once on the site she clicked on a banner with a special offer ona red dress, then returned to the main page, searched for “blue dress” and eventually left the site togo to a competitor’s website. Far from simply presuming that, in general, women buy apparel online,marketers can now study a specific consumer’s behavior with regard to their brand and their products.Not only is such data more precise and enlightening, it is also far more economical. Thomson providesan instructive example. The firm replaced survey-based methodologies for analytics-based methodolo-gies, with massive savings. “Since our previous metrics were unreliable, we continued to do surveys and they cost $5,000 or more each. With our new analytics tool, we were able to eliminate the surveys and save tens of thousands of dollars each year.” Chris Heacock, Global Sales & Marketing Systems Architect, ThomsonVodaphone is also another case in point. Taking a hybrid approach, the telecoms giant combined analyticsand online survey tools to facilitate segmentation and better understand the online customer journey. “Vodafone combined online surveys and website data to gain richer insights into specific visitor segments, media channels and certain aspects of the online customer experience. A recent survey, for example, was designed to learn what causes users to leave during the check-out process.” Joanna Pretty, Head of Online Store, VodafoneThis fundamentally different approach to comprehending consumer behavior is an unprecedentedboon for brands, empowering marketing that is more accurate, and more personalized, more targetedand more relevant. This paves the way for radically new business models in the field of marketing andadvertizing. Because it is now possible to better measure the results of a particular marketing initia-tive, performance-based business models have emerged in which brands pay only when the targetedcustomer actually takes some sort of action. In other words, this business model means that brandspay only when they have achieved real, tangible ROI. 50
    • 03 * how agile will drive marketing’s industrial revolution?Organizational transformation:These changes are undermining traditional marketing governancemethods and call for a different approach to projects and campaigns. A radically new way of managing projects is imperative and this is an issue of collaboration and orga- nization: In a multichannel world, a siloed organization where responsibility for different channels is split between various persons or teams makes little sense. As well, since marketing budgets are shif- ting more and more towards digital channels and initiatives, marketers need a better understanding of technology, yet cooperation between marketing and IT is often sparse. There is a cultural issue also, as marketing is generally considered a creative discipline, developing a data-driven and performance- driven culture is not easy. Yet marketers must do just that if they are to demonstrate how their work contributes to adding value. Adapting marketing to the digital world entails a major redefinition of marketing roles, governance, orga- nization and culture. Transverse teams for fostering greater collaboration between marketing and tech- nology experts must emerge in order to abolish silos and deliver a consistent experience to consumers. This particular phase of marketing’s industrial revolution is just beginning, but we can already see how changing technology and changing business methods are putting pressure on the way marketing is organized. Agile Marketing ™ is the key to driving the full potential of the digital marketing revolu- tion because Agile Marketing ™ means re-thinking the organization of human resources and re-thin- king the processes necessary to make technology and data more efficient and effective.A new balance of power:CMOs are now working at the crossroads where brands, technology andfinance (12) all come together and Agile gives them more power than ever before. Organizations are now faced with the immense and complex task of orchestrating the many facets of multichannel, conversational and experimental marketing essential for success in the digital age. Many, if not most, marketers have been accustomed to working in silos, each channel operating separately with less than optimum sharing of resources, knowledge, etc. To ensure customer satisfaction, today’s mar- keters must have an overall, unified view of the consumer, at every touch point and on every channel. The first aspect of this challenge is for organizations and collaboration modes to evolve in order to enable such consistent, multichannel marketing. Siloed organizations are often burdened by a lack of commu- nications (13), as well as hindered by the fact that each business unit or team may be using different technological platforms, reporting tools etc. Only by creating this transverse approach between product leads, channel leads, segment leads and sales teams can marketing ensure a smooth, seamless customer experience... and prove ROI. Again, Vodafone offers a telling example: 51
    • agile marketing™, the new imperative “There was limited media accountability and insight into how different channels work together to drive sales. We needed a detailed and accurate view of our disparate data sources to help us make informed decisions about our ad spend and areas of conversion rate improvement.” Joanna Pretty, Head of Online Store Management, VodafoneThe second aspect of this challenge is the need for marketers to initiate dialogue and, even more impor-tantly, to collaborate efficiently with their CIOs (14). As marketing budgets increasingly shift to digitalchannels (15), as consumers become ever more demanding with regard to customer experience andbrand responsiveness, and as concerns about data mount, marketers can no longer work effectivelywithout the full support of the IT department (16). Marketing jobs and tasks will require more and moretechnology. This does not mean that marketers are going to learn to code or that CIOs will plan cam-paigns. But the CMO needs to become a marketing technologist in order to work effectively with the CIOto deploy relevant, best-in-class digital experiences. Despite the cultural differences between marketingand IT, Gartner predicts that by 2017 marketing departments will spend more on IT than IT departmentsthemselves. The world of marketing is increasingly overlapping the world of technology, the world ofthe CIO and the CTO.At the same time, today’s marketing decision makers are being held more accountable than ever before.Budgets are shrinking in a gloomy economic environment, and marketing is now expected to show ROIfor each and every operation. Moreover, with budgets shifting to digital channels, marketers are nowstruggling to show the ROI of digital in particular. The complexity of calculating ROI in a multichannelworld is a key challenge for marketers. When equipped with analytics tools, however, they are empowe-red to prove the value of their work as never before. Digital marketing is much more measurable than tra-ditional marketing. Therefore marketers can now make spending decisions based on far more accurateknowledge of ROI, since they can measure it in real time and allocate funds accordingly. With this abilityto target real value creation, track ROI and drive performance, marketers are becoming the new CFOs!Indeed, thanks to this new capacity for efficient decision-making, marketers are gaining real traction andare in ever-increasing positions of strength within their companies. Agile Marketing ™ – since it enablesgreater accountability and enhanced collaboration with other units in the company – is a driving force forempowering marketers. 52
    • Smart Marketing Budget Allocation PROVEN ROI ACCOUNTABLE MARKETING“Today’s marketing decision makers are being held more accountable than ever before. ” © Valtech 2012
    • Conclusion
    • Marketers should already be thinking aboutthe next wave of digital marketing:ubiquitous and consistent across all channels,data-driven,relevant and responsive to change and tocustomer feedback.
    • conclusionConclusionThroughout this white paper we have attempted to outline anew vision and a new approach to marketing made necessaryby the emergence of digital marketing.Digital marketing is undoubtedly a golden opportunity for marketers. Yet, at the same time, it entails acomplete break with the past, a complete break with the way marketing has been traditionally plannedand deployed. To be effective, marketers must do more than implement digital initiatives. Digital isnot merely one more channel among many. Digital is at the crossroads of all existing channels and itrequires an entirely new approach to marketing operations, both online and offline.We are now in the final hours of the first digital era—an era when every brand wanted a website, a Face-book page and a mobile app. This was a technology-driven and brand-centric approach to digital. Mar-keters should already be thinking about the next wave of digital marketing: ubiquitous and consistentacross all channels, data-driven, relevant and responsive to change and to customer feedback. Theseare the true potentialities of digital, still under-exploited by the majority of brands: a service-driven andconsumer-centric approach to digital marketing.To sum up, we believe digital marketing is paving the way for an industrial revolution in marketing, arevolution sparked by innovations in technology, business models and strategy that will culminate inorganizational transformation. And we believe that Agile Marketing ™ , with its Customer-ResponsivePlatforms™ , analytics tools and methodologies, provides the ideal framework for re-thinking marke-ting in the digital age and for helping marketers to successfully “go digital”.By adopting Agile Marketing ™ , marketers can take the lead in the digital transformation and open thedoor to creating truly customer-centric businesses. Agile empowers marketers because it takes thefullest possible advantage of digital opportunities, enables better resource allocation and gives themthe capacity to respond to changes in real time. By putting the consumer—her usages, behaviors andfeedback—at the center, marketing executives can change the way companies perceive their marke-ting departments. In our new digital world, agile marketers have all the assets in hand to prove theirROI and their contribution to the bottom line. 56
    • IndexNotes – References(1) p.8 / See Forrester, August 24, 2011, by Luca S. Paderni“Adaptive Planning delivers marketing accountability” http://www.forrester.com/rb/Research/adaptive_planning_delivers_marketing_accountability/q/id/58809/t/2/(2) p.8 / See Design Taxi, s. d., by Riley Gibson“Should agencies be more like software companies ?” http://designtaxi.com/article/101810/Should-Agencies-Be-More-Like-Software-Companies/(3) p.16 / See comScore, February 7, 2011, comScore, Inc. (speaker)“The Digital Year in Review 2010” http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_US_Digital_Year_in_Review/(4) p.16 / See Nielsen, October 21, 2011, by Nielsen and NM Incite (Infographic)“The Most Valuable Digital Consumers” http://blog.nielsen.com/nielsenwire/online_mobile/infographic-the-most-valuable-digital-consumers/(5) p.16 / See Assisted Living Today, December 13, 2011, by RKT“Social Media is ruining our minds” http://assistedlivingtoday.com/p/resources/social-media-is-ruining-our-minds-infographic/(6) p.16 / See The New York Times, January 15, 2007, by Louise Story“Anywhere the Eye can see, it’s likely to see an ad.” http://www.nytimes.com/2007/01/15/business/media/15everywhere.html?pagewanted=all/
    • index(7) p.17 / See Mashable, February 29, 2012, by Matt Silverman (Infographic)“The Power of the Social Consumer” http://mashable.com/2012/02/29/social-consumer-infographic/(8) p.17 / See San Francisco Business Times, October 12, 2010, by Sarah Duxbury“Gap’s logo mess: what went wrong” http://www.bizjournals.com/sanfrancisco/blog/2010/10/gaps_logo_mess_what_went_wrong.html?page=all/(9) p.22 / See Business Insider, June 29, 2011, by Nicholas Carlson“It is more likely you will survive a plan crash [...] than click a banner ad” http://www.businessinsider.com/its-more-likely-you-will-survive-a-plane-crash-or-win-the-lottery- than-click-a-banner-ad-2011-6/(10) p.36 / See Wikipedia, last modified on 8 May, 2012, From Wikipedia, the free encyclopedia“John Wanamaker” http://en.wikipedia.org/wiki/John_Wanamaker/(11) p.36 / Cf Adobe and Hybris’ ability to work together and provide clients with an integratedapproach to digital marketing and digital commerce is a key strategic asset in their service offering.This type of collaboration, which makes it possible for marketers to track performance, is indicativeof the narrowing gap between marketing and sales in our digitalized world.(12) p.55 / See The Holmes Report, July 15, 2011, by MaryLee Sachs“The Changing MO of the CMO” http://www.holmesreport.com/opinion-info/10627/The-Changing-MO-of-the-CMO.aspx/(13) p.55 / See Forrester, January 27, 2011, by Jeff Ernst“B2B Sales and Marketing Alignment starts with the customer” http://www.forrester.com/rb/Research/b2b_sales_and_marketing_alignment_starts_with/q/id/58165/t/2/(14) p.56 / See Forrester, July 27, 2011, by Luca S. Paderni“Marketing and IT must align for business success” http://www.forrester.com/rb/Research/marketing_and_it_must_align_for_business/q/id/58682/t/2/(15) p.56 / See 6smarketing, October 12, 2011, by Kelly Robertson“Digital marketing budget trends for 2012” http://www.6smarketing.com/infographic-digital-marketing-budget-trends-for-2012/(16) p.56 / See Fast Company, January 24, 2012, by Michael Scissons“Bridging the gap between the CMO and the CIO” http://www.fastcompany.com/1810873/bridging-the-gap-between-the-cmo-and-cio/
    • ™the new imperativeIn partnership with