Managing Digital Distruption Through Agile Marketing
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How to apply the practices of Agile Marketing to transform your marketing.
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Managing Digital Distruption Through Agile Marketing
- 1. Agile Marketing Series Part 2: Digital Disruption The webinar will begin shortly Listen via your computer speakers or on the phone UK: +44 (0) 20 3713 5031 Access Code: 714-683-788 Brought to you by In association with An agile approach to managing digital disruption
- 2. Brought to you by In association with Paul Fennemore Digital Marketing Consultant Sitecore Morag Cuddeford-Jones Consultant Editor Marketingfinder.co.uk Agile Marketing Series Part 2: Digital Disruption An agile approach to managing digital disruption
- 3. Follow the conversation on Twitter #AgileMarketing Agile Marketing Series Part 2: An agile approach to managing digital disruption Interact With Us
- 4. Paul Fennemore: Digital Marketing and Customer Experience Consultant pfe@sitecore.net An agile approach to managing digital disruption
- 5. About Paul 5 • Consultant • Trainer • Lecturer • Evangelist • Published Author • Digital Marketing • Customer Experience • Web 2.0 – social networks • eCommerce • eBusiness • Collaboration Strategy through to adoption
- 6. Agenda • Digital disruption today • Agile marketing, what is it? • Roadmap: 7 step model • Agility through technology • Why do it, case study An agile approach to managing digital disruption
- 8. 8 90% OF CMO’S STATE THAT THERE HAS BEEN MORE CHANGE IN THE LAST 2 YEARS THAN THE LAST 20
- 9. 9 • Uber:World’s largest taxi company owns no taxis • Facebook:Worlds most popular media company creates no content • Alibaba: One of the worlds most valuable retailers has no inventory • Airbnd:World’s largest accommodation provider, owns no properties Business Models Have Changed!
- 10. 10
- 11. 11 Digital touch-points Physical touch-points The Consequences AWARENESS CONSIDERATION ACTION SERVICE LOYALTY TV Radio Print Outdoor PR Word of mouth Direct mail Store Call center Call center IVR Promotion on invoice Online Ads Viral email Digital billboards Search Landing page Blog 3rd Party sites Website Mobile IM/Chat Blog Email Newsletter Customer 3Customer 2Customer 1 Decisions Are Not Made in Straight Lines Random customer journeys provoke random acts of marketing!
- 12. Agile Marketing
- 13. 13 Agile Marketing • Change: reaction time, real-time • Personalisation, not fixed market segments • Testing and rapid iterations • Numerous small experiments over a few large bets • Integration: not silos, unified management • Ongoing innovation, feedback loops • No GANT charted rigid plans
- 14. 14
- 15. 15
- 16. Agile Marketing: so how?
- 17. Agile Responsiveness Acquire Convert Retain Grow Advocates
- 19. Quick Poll Agile Marketing Series Part 2: Digital Disruption An agile approach to managing digital disruption
- 21. Revenue Conversions Customers Customer retention & advocacy Traffic Customer self-service Market share Market reach Brand awareness Relevancy & engagement Re-use of assets Democratisation of digital Total cost of ownership Editing time/costs Time to publish content across multiple channels CMS management time/cost Systems integration management Specialist Web skills External agency costs Time to market Call centre resources/time IT skills and costs PPC & SEO costs Translation costs Benefits forYour Business DecreaseIncrease
- 22. 22 1. Increase market penetration 2. Increase customer retention/renewals 3. Rapidly introduce new products 4. Improve operational efficiencies: agility and cost optimisation Primary corporate objectives The situation SWOT Market AuditPLAN Primary marcoms goals: Sprint: Plan, Scrum, Review #Customer acquisition #Self-service levels =optimise costs #Launch product Z to segment xxx #Upsell & cross-sell # Engagement levels =retention Agile marcoms practices Technology People Process Segments Personas Visitor Journeys Experience Management Personalised Engagement Plans Dynamic Personalisation Single Customer View Analytics Insight A/B & MV Testing Goals and Engagement Values Asset Management Social Mobile Intelligent Website emaileCommerce Web-to- Print Attribution Optimisation Performance Omni- Channel Off-line CRM
- 23. Quick Poll Agile Marketing Series Part 2: Digital Disruption An agile approach to managing digital disruption
- 24. Demographics Firmographics Psychographics Enthnographics Psychographics Syncrographics Webographics Personas Propensity Personalisation Expertise&Resources #markets +#product variations +#customers = #segments & sophistication Refining Segmentation to be Agile Trends: • Viewed as increasingly important • Using ‘trial and test’ strategy •The view that basic and static segments are becoming less valuable Source: ©Paul Fennemore
- 25. 25 ** * * * * * * * * * *
- 26. Single View of the Customer Marketing’s Central Platform Experience Database In the Moment Profile Data Data History Connections Website visits Campaigns Goals Onsite actions Channels Profiling Collect Data Insight Dynamic Personalisation Decision Journey Educate-Trust Buy-Use Share Social CRMM ERP eCommerce Data intel Connect Data
- 28. 28 Keep it Simple What, not when What and when Not what or when When, not what Sitecore’s Predictive Personalisation is based on three tenets: 1. Delivering a relevant experience for each unique visitor on a website 2. Remembering and targeting each visitor in real- time with relevant messaging, according to their specific browsing path 3. Obtaining a better idea of what visitors want based on their implicit and explicit site behaviour.
- 29. 29 Benefits forYour Customers • Product: best buying decisions • Value: relevant and timely information • Service: convenience/easy self-service • Time: researching, buying, resolving
- 30. Quick Poll Agile Marketing Series Part 2: Digital Disruption An agile approach to managing digital disruption
- 31. 31 Culture of Change FromWHY to WHY NOT!
- 32. A Quick Case Study
- 33. 33 33 All profits to members More than 2 million members Over 190,000 employers $60 billion FUM Low engagement Scale is everything As at 30/06/12
- 34. 34 Objective Online self-service Improved service Lower cost of call centres Measurements Increase in digital sites usage Increase in online self service Servicing cost efficiencies
- 35. 35 Relevancy Engagement Enablement Measurements Increase in self service Increase in usage Servicing cost efficiencies Agility through relevancy, engagement and enablement • Use the data well • Clear matrix of segmentation • Combination of behavioural + profile based personalisation • Easy customer transaction power • Iterative testing and improvement
- 37. 37 * * * *
- 38. Agile Marketing Outcomes 38 Business case objectives Benchmark (31 Oct 2010) As at June 2013 5 year target (31 Dec 2015) Increase self-service transactions as a percentage of all fund enquiries and transactions 15% 58% 60% Increase website visits per annum 2.5 million pa 6.2 million pa 5 million pa Online help and advice interactions (visits) per annum 9,000 per month 27,654 per month 18,660 % members joining online (ex deemed members) 30% 42% 66% % employers joining online 42% 98% 100%
- 39. 39 Drivers • Fill new 50,ooo seat stadium • Target emerging markets (global fan base) • Engagement: drive loyalty • Cost savings on multi/omni-channel campaigns How • Synching all data pools for SCV for each Evertonian eg. CRM • Personalise all communications • Each successive campaign relevant • Persona specific marketing • Mobile: tickets, merchandise, push notifications, pop-up pro.mos, geo- targeted, geo-fenced. • Engagement metrics for attribution • Single message communication Everton Scoring with Agile
- 40. Consulting • Workshops •Training • Online Services Sitecore Business Optimisation Services Possibilities Strategy Business case/ROI Adoption Driving value Sitecore Enablement Services
- 41. Brought to you by In association with Paul Fennemore Digital Marketing Consultant Sitecore Morag Cuddeford-Jones Consultant Editor Marketingfinder.co.uk Your Questions Agile Marketing Series Part 2: An agile approach to managing digital disruption
- 42. 3 Reasons to Complete the Exit Survey 1. You can give us your feedback 2. You can request your free copy of “Digital Disruption: Have you been disrupted yet?” 3. You can send a recording of the webinar to colleagues Agile Marketing Series Part 2: An agile approach to managing digital disruption
- 43. Thank You Brought to you by In association with Agile Marketing Series Part 2: Digital Disruption An agile approach to managing digital disruption
Editor's Notes
- Since 2000, 52% of companies in the Fortune 500 have either gone bankrupt, been acquired, ceased to exist, or dropped out of the Fortune 500” . Companies do not exist in a state of equilibrium, but instead exist between stability and instability, and it is this creative tension that enables innovation Andrew Grove, former Chairman of Intel Corporation, said When a change in how some element of one’s business is conducted becomes an order of magnitude larger than what that business is accustomed to, then all bets are off. There’s wind and then there’s a typhoon, there are waves and then there’s a tsunami. There are competitive forces and then there are super competitive forces. And we are in phase of super competitive forces…………………..
- And Web 2.0, has bought about super competitive forces……………… Refer to slide…………………. What’s new about this phase, characterised by the word ‘digital’, is that the technology race is no longer driven by large organisations, but by people”. Digital disruptors are mainly founded on the premise of improving or simplifying the lives of end users and to do so they are agile businesses…. • Their business is built from the user’s perspective rather than on an established business model • The digital technologies on which they build their products and services enable a much higher degree of customer-centricity • They lack the legacy infrastructures, bureaucracy and operating models that force many traditional companies to continue thinking from the ‘inside-out‘ rather than from the ‘outside-in’ Industrial companies are becoming customer service companies. Consumer products companies are becoming Internet companies. Energy companies are becoming information companies. And media and entertainment companies are becoming logistics companies” -Accenture Technology Vision 2014 Refer to EasyJet – are they now an online company who just happens to fly aeroplanes?
- Brands have lost that personal connection with their customers and their customers are much more informed, have more choices and communicate with brands via multiple channels – over 40 in fact. Marketers face a power shift from selectively informed consumers to consumers “armed to their teeth” with information and choice. And this applies in both B2C and B2B markets.
- The customer journey is now random and we cant control all touchpoints, all the time. Focus has shifted from pre-purchase messaging to customer experience design, where each step carries a message. Each customer interaction is a piece of marketing and a trust point. The focus must be to make sure that the touchpoints that we can control are synchronized and that no matter where the customer enters the journey there is consistency and relevance all the way through. Otherwise we end up random acts of marketing producing in consistent experiences for the customer. So how do marketers tackle this or even exploit it?
- One approach that is increasingly being adopted is known as Agile marketing. In fact I expect many of you today are using an Agile approach, but may not be calling it Agile as such. So what does Agile mean in a marketing context?
- The concepts of Agile marketing are based on the agile process used for software development. Agile does not involve rigid GANT charts based on pre-set inflexible plans with long phases of execution and presumed outcomes.
- Just to sum up…………………. Agile’s main approaches involves Sprints and Scrums. Or, guerrilla tactics. Sprints With Sprints, time is divided into short work cadences, known as sprints, typically one week or two weeks long. At the end of each sprint, stakeholders and team members meet to see a demonstrated potentially shippable product increment and plan its next goals and steps. What’s The Philosophy Behind Scrum? Scrums emphases decision making from real-world results rather than speculation. Scrum is a simple set of roles, responsibilities, and meetings that never change. The idea is that scrums are better able to cope with the necessary unpredictability of continuous discovery and learning. So in the world of real-time marketing this Scrum approach fits well. The within the Scrum there is a Scrum Master: The Scrum Master acts as a facilitator for the team. The Scrum Master does not manage the team. The Scrum Master works to remove any impediments that are obstructing the team from achieving its sprint goals. This helps the team remain creative and productive while making sure its successes are visible to the stakeholders. The Scrum Master also works to advise on how to maximize ROI for the team.
- So, the old strategy cycle of research-plan-execute is dead. Creating the next brilliant marketing campaign from your ivory tower is a province of the past. Today’s strategy is real time, and marketers need to think on their feet. It’s now not a linear sequence of market research-planning-strategic decisions, but a constant flow of customer learnings, interactions and adjustments. The old parameters of media planning are a thing of the past. Channel-centric planning is replaced by consumer-centric planning. Marketing needs players with a variety of skill sets – not just Marketing IT for example, legal, HR for recruitment marketing etc.
- Sitecore is a trademark of Sitecore A/S. All other brand and product names are the property of their respective holders. Copyright © 2001-2003 Sitecore A/S. All Rights Reserved.”
- Sitecore has carried a number of research projects investigating the strategies organisations are applying to tune into manage the agile customer experience. From the research data, we have derived an customer experience roadmap. It comprises of 3 main phases of maturity Attract, Convert and Advocate and 7 sub stages from getting started with some basics to building customer lifetime value. Most organisations are at the Attract phase and have got to the stage of aligning their digital marketing plan, with overall marketing plan and then the overall business objectives. Achieving each of these phases has proven to bring about some realy exciting results. Companies who have set up their websites with automated personalisation and testing have increased their ‘conversions. Such as Easyjet, increasing conversions by 20% in a matter of a few months. The outcomes are making a significant impact on revenue. When organisations get to the Engage stage, then are really flying, getting that 360 degree realtime view of the customer and then engaging with them with dynamic personlised content across all channels – online and off-line thereby generating more conversions. So, the old parameters of media planning are a thing of the past. Channel-centric planning is replaced by consumer-centric planning. But significantly, effective digital marketing can deliver an immediate and measureable ROI! Engage Marketing as one-way messaging does not build relationships. Without relationships, there is no loyalty. Without loyalty, customer lifetime value is really low. Creating a two way dialogue fosters lasting customer commitment. Lifetime Customers Predictive patterns make it possible to target consumers before they realize their needs. Once consumers start researching, the brand already needs to be top of mind. We need to identify needs before they are formed, not cater to existing – nor past – needs.
- If marketers think of the “market” field as their audience, they will not be able to score a goal. Scoring requires precision, and technology makes it possible to target on a near-individual level. But how and to what effect?
- Digital marketing has come of age. It’s now possible to objectively calculate and ROI accounting for an increase in conversions and a reduction in overheads. Because its digital, we can track, trace and measure outcomes. We can now measure objectively most aspects of attribution including the potential savings to be made through automation. So how do we can do this?
- Agile strategy can be simple and nimble Lets take the example of the business and marketing goal of improving online self-service, how does a unified customer experience platform serve this goal……….. Define segments Map journeys Render personalised content aimed at the personas and implicit and explicit behaviour. Use analytics and gain insight to build a SCV Measure outcomes with goals and engagement values Optimise and improve through testing And do all this across all channels The result is an improvement in online self service and less burden on call centre overheads
- One key transition of that agile digital marketing brings is the change emphasis on market segmentation practices. In the age of the social consumer, we need to be less dependant on static demographic and filmographic segmentation and move to phychographics, webographics, synchrographics and of course real-time dynamic personalisation. Precision targeting requires targeting consumers with a specific purchase need, at a specific life stage, with a given mindset, and at a specific stage of the purchase process. So how do we work towards this.
- It starts with knowing your customers through the use of data. This is what we are trying to get to and it can be done. We can build up a profile over time, harvesting information from all digital properties and where possible correlating it to off-line CRM data. If there is an exchange of value, customers will provide you with information about themselves. We can see the profile of this person and therefore engage with them accordingly. Customers’ personal circumstances are just as important as their behaviour, as one is often influenced by the other. Changes in marital status, income level, occupation, birth of children, all have an influence on customer behaviour and if a company’s SCV omits these details, then it only has a small fraction of the overall picture of its customers. Achieving this is now technically feasible and commercially viable. According to research: for every 1% data quality improvement, marketing can generate 5--‐6% of incremental revenue. Studies also indicate that 25% of an average prospect database is inaccurate, with best in class achieving 90%. So a there is a real big opportunity to be had. But how..
- Getting data in! Customer Experience/SCV data is now being owned and managed by the marketing departments. Open API’s for easy integration, low cost and very fast database systems such as MongoDB and data cloud service now make this not only technically but also commercially viable.
- The old days of the annual marketing plan are over – it is simply too static. Companies’ plan needs to be more adaptable. Big data does not just provide the macro view. It must go down to the individual and enhance the customer’s life. Diminishing returns The Core Data layer captures and structures all internal customer data – both static information (such as customer ID, name and SSN), and more fluid data that is generated, collected, or updated regularly. Transaction data includes billing, sales orders, cost allocations, and fees relating to the customer. R F M Account data gives a consolidated view of all accounts and contracts held by the customer. This includes hierarchical account structures for both consumers and businesses. Interaction data brings together all communications between the customer and the organization, including e-mails, customer service calls, web site activity, and paper correspondence. Attribution data links campaigns and promotions to the customer. Professor Moira Clark of Henley Business School, said: “While the concept of a complete single customer view is seen as a useful aspiration, the fact is that not all companies see it as achievable or desirable. The most common strategy is to move incrementally towards this goal, each step being dictated by the cost/benefit analysis and the availability of scarce analytical skills. However, a large majority of companies do at least have a project underway to move towards a single customer view, even if achieving it is still some way off.”
- Getting the right product at the right time Helping to prevent getting into debt Seamless customer care Getting the SCV approach right should be a win-win.
- Hamel and Prahalad (1994) make two suggestions: (a) The future is not just something that happens to organisations. (b) Organisations can create the future. Digital chaos calls for the creation of a counterchaos culture in the organisation and developing a counterchaos marketing strategy that is proactive. We need the courage to experiment, to take risks, to incubate and push boundaries. And we have to accept the fact that there is no such thing as knowing all the answers before we act – this stifles Agility.
- What they do on the site – pretty basic application at this stage but its certainly a first step. So what we have here is a content that will be tailored based on product/audience (super/pension/employer) AND their relationship status with us which we defined as being either as acquisition or self service. Your click pattern on content then categorises you into these and the content in those personalised content holder will change to meet the profile. The site also remembers you on return. Version 6.4 – now up to 7.0 Next look at origins, more targeted messaging and eventually simplifying navigation down to audience and their intent.
- More interesting – 12 profiles Does it work? What we do know is that there is a profile difference between users and non-users – more likely to consolidate (10% versus 2%) Contributions ((9% versus 2%) Differences also in Insurance and investing
- Being able to react in and manage the now – when a football game is on. Making the Fans feel that they belong Starting with syncing data pools Comprehensive SCV for each Evertonian Usher in ‘persona marketing’ and personalisation (“modern segmentation”) Mobile is getting the bulk investment