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strategy+business



ONLINE DECEMBER 10, 2012




BY MATTHEW EGOL, CHRISTOPHER VOLLMER,

AND KLAUS HOELBLING
The Four Types of
Digital Marketer
Your company’s customer-centricity profile reveals the capabilities
you need to succeed in digital media, as well as whether you are a
leader, scholar, pioneer, or novice in this critical marketing field.
I
    The Four Types of Digital Marketer
    Your company’s customer-centricity profile reveals the capabilities you
    need to succeed in digital media, as well as whether you are a leader, scholar,
    pioneer, or novice in this critical marketing field.

    by Matthew Egol, Christopher Vollmer, and Klaus Hoelbling
1
www.strategy-business.com




         f you are the chief marketing officer (CMO) of a         online content. This integration needs to cut across the
         consumer-oriented business — for example, a food         consumer experience, creating a seamless digital mar-
         manufacturer or a retail bank with a credit card         keting link between sales in physical stores and sales
    offering — your long-established efforts to reach cus-        through e-commerce.
    tomers may have come into question over the past few               Nike Inc., for example, has invested heavily in both
    years. Digital media have changed the advertising and         the media it creates and the media it shares with its con-
    marketing ecosystem; social networks, broadband infra-        sumers. On Nike.com, consumers can find a continual-
    structure, and new forms of online and offline data col-      ly evolving set of software and services generated by the
    lection have transformed the relationships among              apparel and footwear manufacturer (including training
    companies and their customers. But only a few CMOs            programs for use with interactive game machines such
    have fully caught up with these trends. Most companies        as Microsoft’s Kinect), as well as the new “FuelBand,”
    do not yet have the kinds of capabilities in digital mar-     worn on the wrist to track and analyze daily move-
    keting that they need in order to fully engage with cus-      ments. Consumers can also access a growing body of
    tomers today.                                                 links to Facebook pages and Instagram pictures put up
         The term customer centricity is coming into broad        by others in the Nike community. Everything on the
    use as a way to describe the new marketing orientation        website is designed in harmony, so that the brand rein-
    made possible by digital media (including, but not lim-       forces the idea that the company has the back of the
    ited to, social networks). Under this new orientation,        amateur athletes who make up its core audience, and
    the primary unit of market engagement is no longer the        they in turn are regularly drawn back to the experience
    product, the launch, the trade promotion, or the adver-       of not just wearing the products, but using them togeth-
    tising campaign, but the end-to-end consumer experi-          er. In the process of developing its digital media strate-
    ence. Consumers are engaged with the company and              gy, Nike has dramatically lowered its spend on paid
    each other before, during, and after their purchase.          media. And by focusing its spending on its own media
         This requires a high level of integration, the ability   and socially shared media, the company has broadened
    to bring together multiple sources of content, data           and deepened the impact of its brand.
    sources, capabilities, and product lines, and to continu-          How far along this road is your company — and
    ally refine segmentation approaches, platforms, and           what capabilities does it need to compete successfully?
Matthew Egol                      Christopher Vollmer              Klaus Hoelbling                 The Digital Customer
                                                                                                   Centricity Profiler is free, pri-
is a a partner in Booz &          is a partner with Booz &         is a Booz & Company partner     vate (results are aggregated
Company’s communications,         Company, based in New York.      based in Vienna. He leads the   without identifying the individu-
media, and technology prac-       He leads the firm’s global       firm’s business in Austria      als), brief (it takes only about
tice. Based in New York, he       media and entertainment          and works with global           15 minutes), and designed to
focuses on marketing strategy     practice. He is the author of    telecommunications, media,      let you know your company’s
and capability development                                         and high-tech companies.        standing as a leader, scholar,
related to digitization, social                                                                    pioneer, or novice. To complete
media, and shopper marketing.     of Consumer Control (McGraw-                                     the profiler, go to: booz.com/
                                  Hill, 2008).                                                     global/home/what_we_think/
                                                                                                   digitization/toolkit/digital-
                                                                                                   customer-centricity-profiler.




                                                                                                                                       2




                                                                          • Novices are still coming up to speed in the prac-




                                                                                                                                       www.strategy-business.com
matthew.egol@booz.com             christopher.vollmer@booz.com     klaus.hoelbling@booz.com




                                  Always On: Advertising,
                                  Marketing, and Media in an Era




      • Leaders are a small but growing group of com-
Answering that question is the purpose of a self-guided,            and therefore they do not engage consumers as well as
Web-based survey called the Digital Customer                        they might.




      • Scholars are skilled at consumer insights and
Centricity Profiler, recently launched by Booz &
Company. The profiler focuses on relationships with                 tices of digital marketing, and (in many cases) discover-
consumers and potential consumers, and on companies’                ing which facets benefit them and which may not.




                                                                    move forward. +
facility (or lack of facility) in engaging them online                    During its first month online, the profiler results
along their full path to purchase. The profiler (available          have affirmed our preliminary view that although there
at booz.com/global/home/what_we_think/digitization/                 is no single path to leadership, those that are digital




      • Pioneers have established a robust presence in
toolkit/digital-customer-centricity-profiler) takes only            leaders are investing in similar capabilities. They are
about 10 to 15 minutes to complete. It asks about your              focused on building stronger direct-to-consumer rela-
company’s current practices in social media, data analyt-           tionships, developing content solutions to better engage
ics, and e-commerce, and helps you gauge the potential              consumers in their categories, leveraging social media as
of other practices, of which you may not have been                  a valuable platform for insights, and building out a
aware. Then, on the basis of your answers and those of              stronger multichannel experience. Depending on your
your peers (the answers themselves remain private), it              company’s situation, your own digital marketing capa-
classifies your company into one of four categories:                bilities might include a distinctive way of changing your
                                                                    portfolio of products to address social media responses;
panies, including Nike, Burberry, 3M, Apple, L.L.                   a highly effective form of segmentation based on the
Bean, and Coca-Cola, that have mastered the two main                way consumers behave in the real world (for example,
capabilities involved in maintaining an online presence:            tracking how much time elapses between visits to your
insights and analysis on the one hand, and platforms                retail store); or an ability to create a compelling e-com-
and activation on the other.                                        merce platform that draws people to your products.
                                                                          A digital marketing plan aligned with your compa-
analytics; some of them, for example, have developed                ny’s strategy can be a game changer for your business. It
sophisticated forms of market segmentation based on                 can allow you to build stronger relationships with con-
deep insights about the way people make purchases. But              sumers that are based on offering them better value in
they have not yet converted these insights and analyses             real time: more appropriate deals, more authentic offers,
into profitable action.                                             and more simplicity and clarity. But not on its own. You
                                                                    will need the right capabilities and the appropriate
digital media, with viable forms of electronic commerce,            investment of time and attention. Through experience,
their own media platforms, or other kinds of Web-,                  and through the kind of self-assessment that the profil-
mobile-phone, or app-based services. But these activa-              er brings forward, your company can gain a better
tion platforms are not sufficiently customer centric; they          understanding of where you are now — and how to
are not grounded in insights about their customer base,
strategy+business magazine
is published by Booz & Company Inc.
To subscribe, visit strategy-business.com
or call 1-855-869-4862.

For more information about Booz & Company,
visit booz.com



• strategy-business.com
• facebook.com/strategybusiness
• http://twitter.com/stratandbiz
101 Park Ave., 18th Floor, New York, NY 10178




Looking Booz & Company Inc.
© 2012 for Booz Allen Hamilton? It can be found at at www.boozallen.com

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The Four Types of Digital Marketer

  • 1. strategy+business ONLINE DECEMBER 10, 2012 BY MATTHEW EGOL, CHRISTOPHER VOLLMER, AND KLAUS HOELBLING The Four Types of Digital Marketer Your company’s customer-centricity profile reveals the capabilities you need to succeed in digital media, as well as whether you are a leader, scholar, pioneer, or novice in this critical marketing field.
  • 2. I The Four Types of Digital Marketer Your company’s customer-centricity profile reveals the capabilities you need to succeed in digital media, as well as whether you are a leader, scholar, pioneer, or novice in this critical marketing field. by Matthew Egol, Christopher Vollmer, and Klaus Hoelbling 1 www.strategy-business.com f you are the chief marketing officer (CMO) of a online content. This integration needs to cut across the consumer-oriented business — for example, a food consumer experience, creating a seamless digital mar- manufacturer or a retail bank with a credit card keting link between sales in physical stores and sales offering — your long-established efforts to reach cus- through e-commerce. tomers may have come into question over the past few Nike Inc., for example, has invested heavily in both years. Digital media have changed the advertising and the media it creates and the media it shares with its con- marketing ecosystem; social networks, broadband infra- sumers. On Nike.com, consumers can find a continual- structure, and new forms of online and offline data col- ly evolving set of software and services generated by the lection have transformed the relationships among apparel and footwear manufacturer (including training companies and their customers. But only a few CMOs programs for use with interactive game machines such have fully caught up with these trends. Most companies as Microsoft’s Kinect), as well as the new “FuelBand,” do not yet have the kinds of capabilities in digital mar- worn on the wrist to track and analyze daily move- keting that they need in order to fully engage with cus- ments. Consumers can also access a growing body of tomers today. links to Facebook pages and Instagram pictures put up The term customer centricity is coming into broad by others in the Nike community. Everything on the use as a way to describe the new marketing orientation website is designed in harmony, so that the brand rein- made possible by digital media (including, but not lim- forces the idea that the company has the back of the ited to, social networks). Under this new orientation, amateur athletes who make up its core audience, and the primary unit of market engagement is no longer the they in turn are regularly drawn back to the experience product, the launch, the trade promotion, or the adver- of not just wearing the products, but using them togeth- tising campaign, but the end-to-end consumer experi- er. In the process of developing its digital media strate- ence. Consumers are engaged with the company and gy, Nike has dramatically lowered its spend on paid each other before, during, and after their purchase. media. And by focusing its spending on its own media This requires a high level of integration, the ability and socially shared media, the company has broadened to bring together multiple sources of content, data and deepened the impact of its brand. sources, capabilities, and product lines, and to continu- How far along this road is your company — and ally refine segmentation approaches, platforms, and what capabilities does it need to compete successfully?
  • 3. Matthew Egol Christopher Vollmer Klaus Hoelbling The Digital Customer Centricity Profiler is free, pri- is a a partner in Booz & is a partner with Booz & is a Booz & Company partner vate (results are aggregated Company’s communications, Company, based in New York. based in Vienna. He leads the without identifying the individu- media, and technology prac- He leads the firm’s global firm’s business in Austria als), brief (it takes only about tice. Based in New York, he media and entertainment and works with global 15 minutes), and designed to focuses on marketing strategy practice. He is the author of telecommunications, media, let you know your company’s and capability development and high-tech companies. standing as a leader, scholar, related to digitization, social pioneer, or novice. To complete media, and shopper marketing. of Consumer Control (McGraw- the profiler, go to: booz.com/ Hill, 2008). global/home/what_we_think/ digitization/toolkit/digital- customer-centricity-profiler. 2 • Novices are still coming up to speed in the prac- www.strategy-business.com matthew.egol@booz.com christopher.vollmer@booz.com klaus.hoelbling@booz.com Always On: Advertising, Marketing, and Media in an Era • Leaders are a small but growing group of com- Answering that question is the purpose of a self-guided, and therefore they do not engage consumers as well as Web-based survey called the Digital Customer they might. • Scholars are skilled at consumer insights and Centricity Profiler, recently launched by Booz & Company. The profiler focuses on relationships with tices of digital marketing, and (in many cases) discover- consumers and potential consumers, and on companies’ ing which facets benefit them and which may not. move forward. + facility (or lack of facility) in engaging them online During its first month online, the profiler results along their full path to purchase. The profiler (available have affirmed our preliminary view that although there at booz.com/global/home/what_we_think/digitization/ is no single path to leadership, those that are digital • Pioneers have established a robust presence in toolkit/digital-customer-centricity-profiler) takes only leaders are investing in similar capabilities. They are about 10 to 15 minutes to complete. It asks about your focused on building stronger direct-to-consumer rela- company’s current practices in social media, data analyt- tionships, developing content solutions to better engage ics, and e-commerce, and helps you gauge the potential consumers in their categories, leveraging social media as of other practices, of which you may not have been a valuable platform for insights, and building out a aware. Then, on the basis of your answers and those of stronger multichannel experience. Depending on your your peers (the answers themselves remain private), it company’s situation, your own digital marketing capa- classifies your company into one of four categories: bilities might include a distinctive way of changing your portfolio of products to address social media responses; panies, including Nike, Burberry, 3M, Apple, L.L. a highly effective form of segmentation based on the Bean, and Coca-Cola, that have mastered the two main way consumers behave in the real world (for example, capabilities involved in maintaining an online presence: tracking how much time elapses between visits to your insights and analysis on the one hand, and platforms retail store); or an ability to create a compelling e-com- and activation on the other. merce platform that draws people to your products. A digital marketing plan aligned with your compa- analytics; some of them, for example, have developed ny’s strategy can be a game changer for your business. It sophisticated forms of market segmentation based on can allow you to build stronger relationships with con- deep insights about the way people make purchases. But sumers that are based on offering them better value in they have not yet converted these insights and analyses real time: more appropriate deals, more authentic offers, into profitable action. and more simplicity and clarity. But not on its own. You will need the right capabilities and the appropriate digital media, with viable forms of electronic commerce, investment of time and attention. Through experience, their own media platforms, or other kinds of Web-, and through the kind of self-assessment that the profil- mobile-phone, or app-based services. But these activa- er brings forward, your company can gain a better tion platforms are not sufficiently customer centric; they understanding of where you are now — and how to are not grounded in insights about their customer base,
  • 4. strategy+business magazine is published by Booz & Company Inc. To subscribe, visit strategy-business.com or call 1-855-869-4862. For more information about Booz & Company, visit booz.com • strategy-business.com • facebook.com/strategybusiness • http://twitter.com/stratandbiz 101 Park Ave., 18th Floor, New York, NY 10178 Looking Booz & Company Inc. © 2012 for Booz Allen Hamilton? It can be found at at www.boozallen.com