Sections

Marketing To The Segment Of One

Jonathan Moran

Today’s consumers are more informed and empowered than ever, and businesses must meet their demands to stay competitive and relevant. Mass marketing is proving to be less effective since customers expect personalized, real-time communications from brands. Additionally, undifferentiated marketing simply does not work for brands’ diverse market segments. Businesses must employ individualized marketing efforts to remain connected. With the variety of channels consumers can use to communicate and interact with brands, marketers have access to a goldmine of consumer information.

However, gaining access to this information and using it effectively has proven to be difficult for marketers, especially without all of the right tools. So how do businesses achieve marketing to the segment of one and make the most out of consumer behavior? Let’s first discuss exactly why individualized marketing is imperative for businesses. Then we’ll dive into how to employ personalized marketing and the technologies that enable it.

Why market to the segment of one?

Traditional marketing channels typically include advertising through print publications, radio and TV, mail, and phone. Many of these high-cost channels have fallen prey to lower-cost digital channels as consumers stay connected around the clock. Consumers want brands to connect with them individually, without the feeling of being stalked or intruded on.

Individualized marketing produces dynamically personalized content and messages that consumers are more likely to act upon. Marketers have seen a myriad of benefits from individualized marketing. According to a recent survey by Everage and The Realtime Report, the main benefits of real-time marketing include:

  • Increased customer engagement (81%)
  • Improved customer experience (73%)
  • Increased conversion rates (59%)
  • Improved brand perception (52%)

The majority of marketers today are harnessing this power, with 76% of surveyed marketers saying they have implemented real-time marketing techniques.

The omnichannel customer experience

The path consumers take to communicating and purchasing from brands has become significantly more complex. Say Joe Consumer started a conversation with Retailer Z on his preferred social media application, continued through website browsing and a phone call, and then finally visited the retailer in person. Though Joe was able to talk to Retailer Z, he had to update each channel’s spokesperson with his question, making him frustrated and turning him away from the offer. To alleviate this, it would be best for the retailer to be aware that all these separate interactions came from Joe to produce the most effective interactions with him.

How to market to the segment of one

To market to the segment of one, brands must deliver the right offer over the right channel at the right time, all while personalizing the offer at the individual level and taking into account all available consumer information. So how exactly do marketers do this? Three main things must be put into place:

  1. Contextual data: By collecting and combining data from all channels, Retailer Z would have known Joe’s basic customer information, purchase history, as well as digital behaviors from when Joe browsed the website and clicked through product details. Collecting all of this data, normalizing it (removing noise and structuring it), and housing it in a centralized logical repository – though a daunting task – is necessary in order to market to consumers individually.
  1. Analytics: Analyzing consumer data would also enable Retailer Z to put Joe in a specific market segment – which would then allow for forecasting and future behavior prediction. With established analytics, marketers can hone in on the driving force behind all consumer interactions. This can be done through analytical techniques such as segmentation, forecasting, modeling, and optimization.
  2. Omnichannel capabilities: The ability to orchestrate and deliver marketing actions across all available channels is becoming more imperative as brands move towards “segment of one” marketing. If Retailer Z could link disparate channel actions back to a common customer profile, iterations of marketing programs could take place to enhance and include future actions. Having a real-time infrastructure in place that consists of a decision management architecture that is available in a “steady-state” (always on) is imperative as well. This infrastructure is critical in order to be able to reply with the next best offer or action in a timely, often sub-second, manner. Traditional transactional environments don’t allow for these quick, analytically-based decisions to be made across all channels today.

Consumers’ need for more personal relationships with brands has shifted marketers’ focus from traditional mass marketing to marketing to the segment of one. This requires the right technology and knowledge to seamlessly connect a consumer’s actions across all channels and points in time. Today, the most advanced marketing departments deliver these individualized experiences using contextual data, analytics, and omni-channel capabilities to achieve increased customer engagement and loyalty.

For an in-depth look at Big Data analytics and the omnichannel customer experience, download the SAP ebook Digital Disruption: How Digital Technology Is Transforming Our World.

To learn more about business innovation in the digital era, download the SAP eBook, The Digital Economy: Reinventing the Business World.

Comments

Jonathan Moran

About Jonathan Moran

Jonathan Moran is responsible for global marketing activities for all SAS Customer Intelligence solutions. Mr. Moran joined SAS in March of 2008 bringing seven years of industry experience with him, having worked in Global Professional Services and Sales Support roles at the Teradata Corporation. Over the past 14 years, Mr. Moran has had the opportunity to not only architect, develop, demonstrate, and implement Customer Intelligence solutions, but he has also had the opportunity to work on-site with Fortune 500 customers helping them solve unique digital marketing challenges. Mr. Moran graduated from North Carolina State University with an undergraduate double major – Marketing and Spanish Languages and Literatures. Mr. Moran also holds a MBA from North Carolina State University with a concentration in Technology Commercialization.

What Are The New Rules For Engaging An Online Community?

Scott Steinberg

Marketing and public relations’ role within professional organizations has shifted drastically with the advent of the online community. Now there’s a greater emphasis placed on storytelling. Traditionally, organizations would simply broadcast news or channel it through the media – observe the reaction, then respond on a flexible timetable. Today, branding isn’t simply about beaming out a message. It’s about building trust with end users, telling a compelling story, and creating two-way social streams of dialogue.

While the media matrix and consumption patterns have irrevocably shifted, the value of powerful communication strategies has only become more vital. In an online community and multitasking world, companies must first find ways to connect with increasingly fragmented audiences and build empathy and awareness. They must create channels for customers and influencers to help organizations engage with brands and products in exciting new ways.

Customer impressions carry increasing weight, with brand impressions now traveling greater distances in less time. Users increasingly look to their personal networks for expertise and validation as opposed to traditional media channels.

Traditional marketing and public relations principles now play an increased role. Practitioners can excel in the modern world – provided they adapt to changing markets and best practices.

The book Netiquette Essentials: New Rules for Minding Your Manners in a Digital World offers several tips as you nurture positive conversation in an online community.

Establish a social media policy

Make it clear to employees what is okay to share online, how and when to do so, and the most appropriate manner in which to conduct outreach efforts. With every employee serving as a brand ambassador, training should begin the first day on the job to reinforce the importance of these organizational values. Detail formal rules of engagement with the online community and explain what’s expected from hires.

Develop an internal program to teach social media literacy and aptitude, provide continued education efforts, and reward employees for successfully practicing these skills. You may wish to consider regular skills refreshes, training sessions, certifications, and gamification-based programs to reinforce these maxims.

Be specific about what’s expected in terms of tone, attitude, end results, and output from your social media pros, and regularly monitor and assess how well they align with and meet these goals. Providing running feedback and commentary to help them grow and improve is vital to bolster performance in these areas. To this extent, you may wish to have team leaders provide sample tweets, posts, or updates to provide a sense of how to better shape these communications efforts.

For sake of clarity and assurance of appropriate conduct, post formal guidelines for communication within your own blogs, communities, and online venues, public-facing or otherwise. Having guidelines in place sets expectations upfront and helps you address any issues that may arise, such as having to ban argumentative users or remove inappropriate posts.

Set clear guidelines for interacting with the online community

Social media’s immediacy allows you to interact with customers without filters. However, policy and protocols set in place beforehand ensure professional and productive interactions. Understanding that some room must be given to operate between formal guidelines, make it clear to employees the appropriate rules of conduct when speaking directly to end users or customers, whether exchanges are B2B or B2C in nature.

Provide ongoing development and training to your team regarding these policies, especially for employees who manage social media efforts, outreach, and campaigns. Pass on learning and knowledge gained from direct frontline interactions with customers and promote positive transfer and enhance best practices.

Marketing campaigns and branding efforts should adhere to consistent guidelines. This ensures the right messages are sent and that your company is portrayed with the image and professionalism you desire. Outside of formal guidelines, practice basic rules of politeness, professionalism, and business etiquette online just as you would when engaging with customers face-to-face.

Identify which influencers to reach out to, and brief employees on the best methods for doing so. Through social media, you will likely also interact not just with individual customers, but also entire communities. As in real life, virtual group dynamics can differ greatly from one-on-one interactions.

Express your brand’s online personality

Be less formal, but adhere to your company’s rules and guidelines about your brand, message, and tone of voice, thus creating value for your online community. When people visit social media sites, they expect exchanges to be more personal, immediate, and engaging.

Be cognizant of post quality, taking care to eliminate grammatical and spelling errors. Note that kindness, courtesy, positivity, and empathy should be reflected in every post. Casual and fun doesn’t equate to flippant, glib, or self-centered. Think about how you or your brand may be perceived, and present yourself as affably and respectfully as possible.

Humor is appropriate to use, depending on context. Consider using only the same sort of humor that is appropriate for use in an office or business casual setting. Unless it is part of your brand’s marketing strategy, proceed with caution when using risqué or controversial statements.

Every employee is a brand ambassador in today’s socially driven world. Learn How to Weave Social Media Into the Fabric of the Business.

Comments

How To Master Social Media Marketing In 2017

Michael Brenner

Social media is a constantly evolving medium, from which sites are trending within your industry to the latest Facebook features and Instagram influencers – let alone the development of completely new social media platforms every time you turn on your laptop. How can modern marketers expect to keep up?

The secret is to embrace the change. After all, it is the rapid advancements and constant stream of innovations that have provided digital marketers with so much to work with in the first place. So, no, your social media marketing campaigns this year are not going to look the same as the ones you used in 2016—at least, not if you want to generate more leads and stand a chance against your competitors.

If you want to make an impact with your social media efforts, it is time to give your strategy a refresh. Here is what you need to know to master your social media marketing and to stay ahead of the trends in 2017.

Customize your use of major and niche social media sites

Facebook is still number one, and that isn’t going to change in 2017. In fact, Facebook itself is a world in itself to keep up to date with – in this year alone, it is predicted that Facebook Live will be monetized and that the Call to Action buttons for local business pages will be updated.

Currently the top five social media sites in terms of reach and impact are:

  1. Facebook
  2. Instagram
  3. Twitter
  4. Pinterest
  5. Tumblr

While these networks are important, there is also value in niche networks for many businesses. For example, DeviantArt is geared towards illustrators, designers, and other artists, as well as art enthusiasts – and has a huge network of 26,000,000. While this site might be useless for, say, an insurance brokerage, it would be incredibly powerful for a photography school. Other examples include eToro for finance professionals, Wayn for travel and tourism, 43 Things for health and wellness brands—and the list goes on as more networks are created and gain active users.

This year, instead of trying to have your brand on every major site and spreading your resources too thin, create a strategy that makes sense for your industry – and your business.

Start with the biggest. With 1.79 billion monthly active users, Facebook is a wise choice.

Next, choose one or two other major networks. Visual industries like clothing and apparel, food, and travel are well-suited to sites like Pinterest and Instagram, while service-oriented industries may gain more leads from LinkedIn and Twitter.

Finally, consider a niche social media network. Many have several million active users and may offer a unique way for you to reach out to leads and to build brand awareness.

Make your video more sophisticated

pixabay

Throughout 2016, the use of video on social media grew, but its impact exploded. A recent survey by Wyzowl found that 84% of consumers said they have been convinced to make a purchase choice after viewing a brand’s video – and 91% claimed to have watched a video to learn about a product or service they were interested in. Now consider that only 63% of businesses taking advantage of video right now.

Videos that engage with viewers tend to be very effective. While customer testimonials and demonstration videos will always have their place, add challenges, puzzles, games, and surveys to your video content, along with informational videos, to keep people interested and talking on social media. Buzzfeed’s Tasty does an excellent job of this.

For some businesses, live streaming can make a strong impact. Facebook, Twitter, and Instagram are all being used by social media savvy brands to engage with consumers in real-time with interviews, Q&A sessions, and brand events.

If you haven’t already branched into video, 2017 is the year. If you are already using promotional videos on your social media channels, then this is the year to make them better. The use of video for social media marketing is no longer new. This year, it’s about coming up with creative, fresh ideas that will capture your audience and inspire leads.

Focus on the influencers

A business could run eleven different social media accounts, with Twitter updates every two hours, Facebook postings twice a day, vibrant Pinterest boards, and an active presence on LinkedIn. But they still would not make the same impact that a couple of mentions by one major social media influencer would create. The big influencers have legions of followers who often look to their voice as a sort of industry guiding force.

While in the past, consistent regular posting was the way to go, make sure you aren’t overextending your marketing efforts with too many platforms – and too many posts. You may not just be draining your resources, but these resources may be better spent with a more concentrated focal point, like an industry influencer.

Furious Pete (TV, food, and fitness) has more than 5 million YouTube followers. Kristina Bazan (fashion) has more than 2.4 million Instagram followers. Jake Paul (millennials) has more than 17 million social media followers. A social media mention from an influencer, or better yet, a video post that mentions your product or service is going to reach a profoundly broad and engaged audience.

Many major companies are now partnering – and paying – the big influencers to promote their product. If you want to master social media, pay attention to who the influencers are in your market.

They don’t have to be the biggest names around, but with a few hundred thousand followers you can make an impact if you can get these people to share, like, tweet, or feature your content in some way. Use resources like BuzzSumo and find the top blogs in your industry to get a better idea of who the influencers are that you may want to connect with.

Examine your social media ads – a lot

Ads continue to be a popular social media marketing tool as they offer marketers a cost-effective way not just to build brand awareness, but also to test their products and messaging and to get important feedback for building future campaigns.

Facebook ads still offer the best ROI by far – 95.8%, compared to 63.5% on Twitter and 2.1% on Snapchat. However, these numbers can shift quickly, especially as the newer networks like Snapchat and Instagram blossom in 2017.

Managing director of Traktek Partners Cyril Lemaire warns that Twitter will see a double-digit decline in active users this year. While this may or may not come to pass, it is important to be agile and to switch gears midstream if your ads aren’t working.

Make sure you are consistently measuring the results of your advertising campaigns, and track changes over time. This will help your team make smart decisions when it comes to social media advertising.

Take a fresh approach to your social media marketing efforts in order to take advantage of the opportunities that are available right now. No longer does it make sense to just chug away with your accounts and follow general trends. Your marketing efforts should be both more sophisticated and much more creative. The brands that can master these qualities will leap ahead in 2017.

For more insight on social media strategies, see How To Weave Social Media Into The Fabric Of The Business.

Image: pixabay

Comments

Michael Brenner

About Michael Brenner

Michael Brenner is a globally-recognized keynote speaker, author of  The Content Formula and the CEO of Marketing Insider GroupHe has worked in leadership positions in sales and marketing for global brands like SAP and Nielsen, as well as for thriving startups. Today, Michael shares his passion on leadership and marketing strategies that deliver customer value and business impact. He is recognized by the Huffington Post as a Top Business Keynote Speaker and   a top  CMO influencer by Forbes.

How Emotionally Aware Computing Can Bring Happiness to Your Organization

Christopher Koch


Do you feel me?

Just as once-novel voice recognition technology is now a ubiquitous part of human–machine relationships, so too could mood recognition technology (aka “affective computing”) soon pervade digital interactions.

Through the application of machine learning, Big Data inputs, image recognition, sensors, and in some cases robotics, artificially intelligent systems hunt for affective clues: widened eyes, quickened speech, and crossed arms, as well as heart rate or skin changes.




Emotions are big business

The global affective computing market is estimated to grow from just over US$9.3 billion a year in 2015 to more than $42.5 billion by 2020.

Source: “Affective Computing Market 2015 – Technology, Software, Hardware, Vertical, & Regional Forecasts to 2020 for the $42 Billion Industry” (Research and Markets, 2015)

Customer experience is the sweet spot

Forrester found that emotion was the number-one factor in determining customer loyalty in 17 out of the 18 industries it surveyed – far more important than the ease or effectiveness of customers’ interactions with a company.


Source: “You Can’t Afford to Overlook Your Customers’ Emotional Experience” (Forrester, 2015)


Humana gets an emotional clue

Source: “Artificial Intelligence Helps Humana Avoid Call Center Meltdowns” (The Wall Street Journal, October 27, 2016)

Insurer Humana uses artificial intelligence software that can detect conversational cues to guide call-center workers through difficult customer calls. The system recognizes that a steady rise in the pitch of a customer’s voice or instances of agent and customer talking over one another are causes for concern.

The system has led to hard results: Humana says it has seen an 28% improvement in customer satisfaction, a 63% improvement in agent engagement, and a 6% improvement in first-contact resolution.


Spread happiness across the organization

Source: “Happiness and Productivity” (University of Warwick, February 10, 2014)

Employers could monitor employee moods to make organizational adjustments that increase productivity, effectiveness, and satisfaction. Happy employees are around 12% more productive.




Walking on emotional eggshells

Whether customers and employees will be comfortable having their emotions logged and broadcast by companies is an open question. Customers may find some uses of affective computing creepy or, worse, predatory. Be sure to get their permission.


Other limiting factors

The availability of the data required to infer a person’s emotional state is still limited. Further, it can be difficult to capture all the physical cues that may be relevant to an interaction, such as facial expression, tone of voice, or posture.



Get a head start


Discover the data

Companies should determine what inferences about mental states they want the system to make and how accurately those inferences can be made using the inputs available.


Work with IT

Involve IT and engineering groups to figure out the challenges of integrating with existing systems for collecting, assimilating, and analyzing large volumes of emotional data.


Consider the complexity

Some emotions may be more difficult to discern or respond to. Context is also key. An emotionally aware machine would need to respond differently to frustration in a user in an educational setting than to frustration in a user in a vehicle.

 


 

download arrowTo learn more about how affective computing can help your organization, read the feature story Empathy: The Killer App for Artificial Intelligence.


Comments

Christopher Koch

About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing. Share your thoughts with Chris on Twitter @Ckochster.

Tags:

What Will The Internet Of Things Look Like In 2027? 7 Predictions

Tom Raftery

Recently I was asked: Where do you see the Internet of Things in 10 years?

It is an interesting question to ponder. To frame it properly, it helps to think back to what the world was like 10 years ago and how far we have come since then.
iPhone launch 2007

Ten years ago, in 2007 Apple launched the iPhone. This was the first real smartphone, and it changed completely how we interact with information.

And if you think back to that first iPhone—with its 2.5G connectivity, lack of front-facing camera, and 3.5-inch diagonal 163ppi screen—and compare it to today’s iPhones, that is the level of change we are talking about in 10 years.

In 2027 the term Internet of Things will be redundant. Just as we no longer say Internet-connected smartphone or interactive website because the connectedness and interactivity are now a given, in 10 years all the things will be connected and the term Internet of Things will be superfluous.

While the term may become meaningless, however, that is only because the technologies will be pervasive—and that will change everything.

With significant progress in low-cost connectivity, sensors, cloud-based services, and analytics, in 10 years we will see the following trends and developments:

  • Connected agriculture will move to vertical and in-vitro food production. This will enable higher yields from crops, lower inputs required to produce them, including a significantly reduced land footprint, and the return of unused farmland to increase biodiversity and carbon sequestration in forests
  • Connected transportation will enable tremendous efficiencies and safety improvements as we transition to predictive maintenance of transportation fleets, vehicles become autonomous and vehicle-to-vehicle communication protocols become the norm, and insurance premiums start to favor autonomous driving modes (Tesla cars have 40% fewer crashes when in autopilot mode, according to the NHTSA)
  • Connected healthcare will move from reactive to predictive, with sensors alerting patients and providers of irregularities before significant incidents occur, and the ability to schedule and 3D-print “spare parts”
  • Connected manufacturing will transition to manufacturing as a service, with distributed manufacturing (3D printing) enabling mass customization, with batch sizes of one very much the norm
  • Connected energy, with the sources of demand able to “listen” to supply signals from generators, will move to a system in which demand more closely matches supply (with cheaper storage, low carbon generation, and end-to-end connectivity). This will stabilise the the grid and eliminate the fluctuations introduced by increasing the percentage of variable generators (such as solar and wind) in the system, thereby reducing electricity generation’s carbon footprint
  • Human-computer interfaces will migrate from today’s text- and touch-based systems toward augmented and mixed reality (AR and MR) systems, with voice- and gesture-enabled UIs
  • Finally, we will see the rise of vast business networks. These networks will act like automated B2B marketplaces, facilitating information-sharing among partners, empowering workers with greater contextual knowledge, and augmenting business processes with enhanced information

IoT advancements will also improve and enhance many other areas of our lives and businesses—logistics with complete tracking and traceability all the way through the supply chain is another example of many.

We are only starting our IoT journey. The dramatic advances we’ve seen since the introduction of the smartphone—such as Apple’s open-sourced ResearchKit being used to monitor the health of pregnant women—foretell innovations and advancements that we can only start to imagine. The increasing pace of innovation, falling component prices, and powerful networking capabilities reinforce this bright future, even if we no longer use the term Internet of Things.

For a shorter-term view of the IoT, see 20 Technology Predictions To Keep Your Eye On In 2017.

Photo: Garry Knight on Flickr

Originally posted on my TomRaftery.com blog

Comments

Tom Raftery

About Tom Raftery

Tom Raftery is VP and Global Internet of Things Evangelist for SAP. Previously Tom worked as an independent analyst focussing on the Internet of Things, Energy and CleanTech. Tom has a very strong background in social media, is the former co-founder of a software firm and is co-founder and director of hyper energy-efficient data center Cork Internet eXchange. More recently, Tom worked as an Industry Analyst for RedMonk, leading their GreenMonk practice for 7 years.