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Insights2020 - Toronto Presentation 3/7/16
The document discusses driving business growth through customer centricity, outlining key dimensions such as purpose-led initiatives, data-driven customization, and touchpoint consistency. It presents findings from the Insights2020 study, which highlights factors that differentiate overperformers from underperformers in achieving customer-centric growth. Finally, it emphasizes the importance of collaboration, leadership priorities, and experimentation in fostering a customer-centric culture.
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Insights2020 - Toronto Presentation 3/7/16
- 1. DRIVING GROWTH THROUGH CUSTOMERCENTRICITY MARCH 2016
- 2. Marc de SwaanArons - 25 Years of Marketing 2
- 3. 25 Years ofMarketing 3
- 4. 25 Years ofMarketing 4
- 5.
- 6.
- 7.
- 8. Thought Leadership Big Insights PurposefulPositioning Total Experience
- 9. Thought Leadership @insights2020 Big Insights PurposefulPositioning Total Experience
- 10.
- 11. Welcome to theconnected society 212 Billion Sensor enabled devices 2008 2015 2020 7 Billion 25 Billion 50 Billion Connected devices ! Connected Society Data People Process Devices @insights2020
- 12. Traditional value driversno longer provide competitive advantage 1900 - 1960 1960 - 1990 1990 - 2010 2010 - PRESENT Age of manufacturing Age of Distribution Age of Information Technology Age of the Connected Customer @insights2020
- 13. Everybody talks aboutCustomer Centricity
- 14. But ... doesit drive business growth?
- 15. Insights2020 focus HOW to achieve CustomerCentricity? WHAT are the drivers of Customer Centricity?
- 16. The Insights2020 Coalition FoundingPartners Publishing Partners @insights2020
- 17. Largest and mostglobal I&A study ever conducted 60 Markets 337 Vision Interviews 10,495 Survey Respondents • LinkedIn Behavioral Analysis • Wharton Crowd Sourcing • 8 Global research teams • Cross-industry, Cross-function @insights2020
- 18.
- 19. Opportunities Insights into action acrossall touchpoints Behavioral Data Personalizati on Brand Purpose Especially true for overperformers @insights2020
- 20. Challenges Internal silos & bureaucracy Legacyof structure & functions Making sense of data Recruiting wholebrain people Especially true for underperformer s Especially true for overperformers @insights2020
- 21. Key dimensions ofCustomer-Centric growth CUSTOMER CENTRIC GROWTH TOTAL EXPERIENCE CUSTOMER OBSESSION INSIGHTS ENGINE @insights2020
- 22. Key dimensions ofCustomer-Centric growth 1. Purpose-led 2. Data-driven customization 3. Touch point consistency TOTAL EXPERIENCE CUSTOMER OBSESSION INSIGHTS ENGINE CUSTOMER CENTRIC GROWTH @insights2020
- 23. Driver 1. Purpose-led Linkeverything to a clear brand purpose 80% 32%
- 24. Driver 2. Data-drivencustomization Creating experiences based on data driven insights 73% 31%
- 25. Driver 3. Touchpoint consistency I&A to drive consistency across all touch points 64% 29%
- 26. Key dimensions ofCustomer-Centric growth 4. Embraced by all 5. Leadership priority 6. Collaboration 7. ExperimentationTOTAL EXPERIENCE CUSTOMER OBSESSION INSIGHTS ENGINE CUSTOMER CENTRIC GROWTH @insights2020
- 27. Driver 4. Embracedby all Customer Centricity is fully embraced by all functions 79% 13%
- 28. Driver 5. Leadershippriority Customer Centricity is a top priority for leaders Incentives are based on customer related KPIs 91% 48% 45% 24%
- 29. Driver 6. Collaboration Workclosely with customers 72% 45%
- 30. Driver 7. Experimentation Embracingrisk and experimentation 40% 13% @insights2020
- 31. Key dimensions ofCustomer-Centric growth 8. Leading role of I&A 9. Unlocking the power of data 10.Critical capabilities TOTAL EXPERIENCE CUSTOMER OBSESSION INSIGHTS ENGINE CUSTOMER CENTRIC GROWTH @insights2020
- 32. Driver 8. Leadingrole of I&A 51% 18% I&A leading the business
- 33. Driver 8. Leadingrole of I&A I&A reports into the CEO 29% 12%
- 34. Driver 9. Unlockingthe Power of Data THE ECONOMIC GRAPH Linking different data sources to distil insights 67% 34%
- 35. Driver 10. CriticalCapabilities Storytelling 61% 37% Business Sense 75% 50% ‘Wholebrain’ thinking 71% 42% @insights2020
- 36. 10 drivers ofCustomer-Centric growth 8. Leading role of I&A 9. Unlocking the power of data 10. Critical capabilities 4. Embraced by all 5. Leadership priority 6. Collaboration 7. Experimentation 1. Purpose-led 2. Data-driven customization 3. Touch point consistency @insights2020
- 37. 45% 53% 61% +8% +2% +3% Total Experience Supporting scorecard •Purpose-led • Data-driven customization • Touch point consistency • Leading role of I&A • Unlocking the power of data • Critical Capabilities • Embraced by all • Leadership priority • Collaboration • Experimentation Customer Obsession Insights Engine Revenue Growth Potential +2.8% ILLUSTRATIVE NUMBERS 73% 49% 53% +2% +5% +3% +9% -6% -2% +3% -7% -9% -6% -2% SCORE GAP vs BENCHMARK AMBITION SCORE GAP vs BENCHMARK AMBITION SCORE GAP vs BENCHMARK AMBITION +5% 63% 75% 61% 34% +5% +3% +4% +6%- 2% @insights2020
- 38. NOW what? Focus onproducts and services Focus on Total Experience @insights2020
- 39. NOW what? Focus ondetail of data Focus on actionability of data @insights2020
- 40. NOW what? Manage riskExperiment! @insights2020
- 41. NOW what? Deliver tocustomers Co-create and innovate with customers @insights2020
- 42.
- 43. Next steps –Insights2020 Movement 43 5 4 3 2 Linking multiple data sources Data as service to the customer On- and offline integrated 1 Know what data you have Predictive, Forward looking
- 44. 2016 CMO andI&A Round Tables
- 45.
- 46. Session Flow Discussion: • Whatresonates for you and your industry • Best Practices on ten drivers • Which is most difficult and important for you • Implication for your discipline • Implication for how your discipline collaborates with other disciplines
- 47. About Vermeer Leading globalmarketing consultancy 47 BRAND RESEARCH BUSINESS We provide solutions to STRATEGIC MARKETING challenges, rooting our approach in consumer research, stakeholder understanding and financial analysis We DEVELOP and EMBED insight-led marketing strategy, structure and capability We TIE INSIGHTS TO DOLLARS, the only universally accepted language of business Our global team fuses PRACTITIONER AND CONSULTING experience in marketing, management consulting, research, investment banking and advertising Our WHOLE-BRAIN THINKING brings an intrinsically MULTI-LENS and PRACTICAL approach to all our work
- 48. Vermeer Global Footprint SYDNEY SINGAPORE LONDON NEWYORK MEXICO CITY SAO PAULO SHANGHAI AMSTERDAM TOKYO BEIJING DUBAI SAN FRANCISCO MELBOURNECAPE TOWN
- 49.
Editor's Notes
- #6 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #7 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #8 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #9 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #10 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #11 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #12 As the introduction film just showed: We live in a connected society – by 2020 there will be an estimated 50 billion connected devices in the world – that is an average of 7 per person! Also an estimated 212 billion sensor-enabled devices. Just think about that number for a second. All the data-points we can leverage for insights! It’s hard to imagine the possibilities for the ocean of behavioral data these devices will provide; but this does mean we will (finally) have the data available to figure out much better what customers want, it will allow us to better understand our customers and become much more Customer Centric.
- #13 But not only we now CAN be more customer centric, we also MUST become more customer centric, because traditional business value drivers don’t cut it anymore. Anyone can produce quality products, manufacturing doesn’t provide a (sustainable) competitive advantage anymore (Ford, Sony). And with the rise of connected devices, transparency of the digital world and commoditization of information and data, the real (future) source of competitive lies in truly understanding the needs of customers and serving them in a fast, transparent and credible way (Amazon). And in being truly customer centric.
- #14 And yes, everybody has been talking about it for decades, and it is getting even more attention recently in publications.
- #15 But does it really drive business growth?! Is it really the silver bullet we all think and want it to be? To answer that question we initiated Insights2020
- #16 And more specifically, these are the two questions Insights2020 will answer: WHAT are the drivers of Customer Centricity? And HOW to achieve Customer Centricity?
- #17 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #18 Insights2020 is a combination of qualitative (331 vision interviews) and quantitative surveys. As well as distilling learning from behavioral data, for which we were able to use the LinkedIn database, and crowdsourcing which we did in collaboration with an expert pool from Whar6ton University. And of course we did quite a lot of desk research to make sure that we are building on all the knowledge and learning that was already available.
- #19 Throughout our analysis, we looked at what overperforming and what underperforming companies do. We compare the scores of companies that grow faster and outperform their competitors in terms of business growth, to those companies that lag behind in terms of growth; the underperformers
- #20 And the first question we asked was “How do they see the future?” Well, Insights & Analytics and technological developments clearly offer opportunities: We can enrich our understanding of customer with behavioral data, we can personalize our offerings accordingly, we can bring our insights into actions across multiple touch-points with our customers and – especially true for over-performers - we can better let our brand purpose guide our actions by intensifying and amplifying our reach.
- #21 On the flipside, there are also significant challenges to overcome. The top-4 challenges are Internal silo’s and bureaucracy - struggling with the functional silos, internal barriers that hamper collaboration On top of that, organizations are struggling with their legacy of structure and functions that are not designed to deal with the opportunities of today Making sense of data – with the commoditization of data the challenge is not so much to have the right data, but to make sense of it all Recruiting wholebrain people – people who both have the analytical skills to work with data ánd have the capability to translate data into actions, into clear recommendations and to use their judgement to interpret data Interesting to note that underperformers are especially struggling with Silos and Legacy. It seems like overperformers have accepted that ‘silo-busting’ is actually a myth, that there will always be silos, and that a cultural change is needed to deal with the silos rather than trying to find the solution in structure. Overperformers on the other hand especially feel the challenge to make sense of all available data and to hire the right wholebrain people who can help them to make sense of it all.
- #22 So, ‘What ARE the drivers of Customer Centricity? Well, our study uncovered 10 key drivers of Customer Centricity, clustered in 3 dimensions. We have used the 66 variables in the I2020 data to identify which drivers contribute most to Business Growth; Customer-centric business growth. By doing this, we can quantify the impact of drivers. Three distinct dimensions came out, each with consisting of specific drivers. First of all, an external dimension: delivering a Total Experience to Customers. 3x more (85% vs 29%) The second is the internal, the organizational dimension: Customer Obsession. 4x more (87% vs 22%) The third dimension is about the Strategic Leverage of Insights and Analytics, and the Insights Engine. 4x more (51% vs 12%) We will now zoom in on each of the 3 dimensions to understand in more detail WHAT to do and HOW to achieve this, step by step. We will illustrate each element with a case study example to bring it to life.
- #23 Let’s look at WHAT overperformers do to create Total Experience and HOW they achieve it, step by step. Purpose-led Data-driven customization Touch point consistency.
- #24 Overperformers link everything they do to a clear brand purpose, very significantly more so than underperformers: 80% vs 32%. Brand Purpose serves as a North Star, guiding all decision. Brand Purpose gives crystal clear direction on what you stand for towards customers, consumers, employees and other stakeholders. Our brand positioning / purpose is based on customer needs (91% vs 56%)
- #25 The 2nd driver in creating a total experience for the customer is data-driven customization. Insights 2020 found that overperformers are much more likely to create experiences based on data-driven insights (73% vs 31%). Overperformers also use Insights & Analytics to build personalized offerings compared to underperformers. (64% vs 28%)
- #26 Overperformers use I&A to drive consistency across all touch points (64% vs 29%). With the number of channels and touch points exploding, the need to create consistency for customers is all the more important.
- #27 Let’s move on the more internal focused dimension of Customer Centric Growth. WHAT to do and HOW to achieve this: Embraced by all Leadership priority Collaboration Experimentation
- #28 It starts with everyone focusing on the customer at all levels and across all functions and even through external partners. At overperforming organizations, Customer Centricity is fully embraced by all functions. This is the driver that contributes to customer centricity, more than any other one, sets winners apart from losers: 79% vs 13%.
- #29 At overperformers, Customer Centricity is top priority for leaders (91% vs 48%) These organization have their leaders truly leading customer centricity from the front. They don’t just talk the talk of CC, they also walk the talk by basing incentives on Customer-related KPIs (45% vs 24%) Interestingly, leaders of CC companies are often more likely to engage with and share content on social platforms like LinkedIn. They are reading and sharing content that is focused on their customer, leading from the top. Sir Richard Branson is an influencer on LinkedIn and uses social media to engage directly with Virgin customers, combining a customer-centric approach with a strong brand purpose. Branson was the first influencer to reach over 1 million followers on LinkedIn and continues to highlight entrepreneurial tips and focus on leadership, management and the customer.
- #30 Overperformers work more closely with customers (72% vs 45%). High customer-centric companies describe their companies as highly collaborative (52% vs 5%) We also found that employees of truly CC companies are also more connected on the LinkedIn platform. 23% more connections 25% more connections outside their own company 20% more connections in their own function 23% more connections outside of their own function
- #31 Overperformers embrace risk and experimentation (40% vs 13%). This driver of a Customer Obsessive culture goes further than just managing risks, but embraces risk-taking and a test-and-learn mentality. At LinkedIn, 2 of our values speak to this idea: “taking intelligent risks” and “acting like an owner.”
- #32 Let’s move to the last dimension of Customer Centric Growth: the Insights Engine. Again, we will talk about WHAT to do and HOW to achieve this: - Leading role of I&A - Unlocking the power of data - Critical capabilities
- #33 I&A helps to lead the business significantly more often at overperformers (51% vs 18%). In this context we talk about the concept of I&A, not necessarily the I&A function. I&A leading the business means I&A are infused in all business decisions, and the I&A function has matured into a true business partner with a seat at the (board) table. For example at overperformers I&A reports more often into the CEO (29% vs 12%), giving I&A a seat at the board table and the ability to be part of decision making. Also Underperformers often have separate ‘Insights’ and ‘Analytics’ teams, within different departments. Also, I&A reports into Marketing more often, making I&A more of a ‘marketing services’ team. It is critical to organize for a Single Version of the Truth in your company. This does not mean that The Insights folk have all the databases centralized, but that there is a clear Insights Guardian role. Because the risk with all these data in the hands of so many people and functions is clearly that the data can start to live a life on their own and the wrong conclusions are drawn. Let’s look at some obvious and not-so-obvious examples of companies where I&A is leading the business. Leading can be explained in different ways. At Unilever, no major decisions are taken without Stan (Global CMI) is either pulled into the room or consulted. CMI does not have an actual seat at the board table (reporting into the CMO), but is treated as of it it does. On regional and local level CMI does not report into Marketing, but into the GM to act as a true business partner. Unilever CMI mission is ‘inspire and provoke to enable transformational action’
- #34 At overperformers, the I&A function reports into the CEO (29% vs 12%). Although relatively low absolute number of companies where this is the case, we do see a clear trend that this is changing. ‘I&A from the corner of the room to the cornerstone of the room’ Harish Bath a former Insights leader is now a member of the Group Executive Council (GEC) of Tata Sons. Harish, a loyal Advisory Board member of Insights2020, truly champions the customer perspective at the very top level of the company.
- #35 Overperformers are linking different data sources to distil insights, in twice as many of the cases as their underperforming peers (67% vs 34%) Overperformers are thinking about how to use and leverage data from various data sets in a holistic way. An example of unlocking the power of data stems from LinkedIn’s mission to help professionals be more productive and successful by building the economic graph, a digital map the global economy to connect talent with opportunity at massive scale on behalf of our members.
- #36 Three interesting data points: I&A within overperformers have a strong sense of the business (75% vs 50%) are Coming up with more creative solutions (Wholebrain) (69% vs 42%), apply Storytelling (60% vs 36%) to maximize their impact
- #37 So, today I presented to you WHAT the key dimensions are for customer centric growth and share with you the steps to improve each driver with a wide range of examples what other companies are doing.
- #38 The exciting part of having such a robust global cross-industry study, is that we are now also able to quantify the improvement potential for any organization that participated in our study. We are able to assess a company on each of the 10 drivers in our framework on their current performance. We benchmark it across the total population and the over-performers to see where they stand. We can then define the ambition on each lever – given their customer centricity ambition and strategy, and link the improvement potential of becoming more customer centric to revenue growth and thus concrete $$ monetary impact. This is an illustrative case, but in this example, you see the company at hand has some higher and some lower scores vs the study. Based on the ambition presented there is an improvement potential leading to an equivalent of 2.8% in revenue growth. I am convinced this will trigger some interest at board level, if they aren’t already driving customer centricity!
- #39 Each of you will be at different stages in your journey. And you will all define your own CC ambition, but before we go there are three things you could take out action immediately. The customer is not static and your proposition will always be a part of a bigger experience. Winners look at the Customer through the lens of the Total Customer Experience Journey. It is not about your product or service but about the difference, be it big or small, that you make in the day or the life of your customer. Never forget that
- #40 Secondly: forget about 100% detail and correctness of the data, but focus on accessibility and increase actionability. Many companies hire high-paid data scientists that spend their time and energy creating the perfect data-set, cleaning and managing all day. That is a waste.
- #41 Stop managing risks. Start experimenting! Allocate some of your budget to learn and become future oriented. But not only budget, adopt a mindset that failure IS an option, embrace the power of experimentation
- #42 And don’t just validate what you deliver to your customers, but reach out and find ways to co-create and innovate with customers. Find new platforms where you can interact and rapidly deliver new solutions and enhance the customer experience. More important than anything else: Go out and be with Customers. Talk to customers, walk with them eat and drink with them. If need be: sleep with them. And have fun while doing it. That will be contagious!
- #43 Today we presented WHAT the drivers of customer centricity are and what steps to go through to improve. This presentation is not the final deliverable of insights2020, but merely the kick-off. It’s an invitation to those wanting to bring this industry to the next level. In the coming months we will further explore How we can build Customer Centricity in specific countries and business contexts, we seek to collaborate, experiment, use different techniques like crowdsourcing, use different sources like LinkedIn and other partner membership databases, exploit our networks, publish and share our findings and collect more data to enrich our insights in this area. We invite you to join us in our quest to improve Customer Centricity via our 10 drivers and explore best practices and guidelines on HOW to best achieve this.
- #44 SAB is already experimenting with a next phase of adding more data to predict consumption patterns even better. For example in Australia weather data is added to become more predictive. Europe is adding all brand tracking data to predict trends based on available data
- #47 …and a strong and broad coalition of founding partners ESOMAR – the overarching industry association for market research ARF (Advertising Research Foundation) – a large advertising industry association in the US. Korn Ferry - a world-wide executive recruitment, leadership and talent consulting service LinkedIn – the world’s largest professional social network Kantar - home to the world's leading research, data and insight companies Millward Brown Vermeer – global marketing strategy consultancy firm
- #50 Thank you for listening, please reach out to us to further discuss.