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The Future Of Marketing In An Increasingly Ad-Free World

Michael Brenner

The future of marketing is being debated by leaders in our industry. Some see a shift to more customer-focused content marketing. Others want to continue pushing product promotion content interruptions. Which side are you on?

Ad blocking gets serious

There are approximately 200 million monthly active users of ad blockers globally, according to a recent study by Adobe and PageFair. And a more recent study by Comscore found that 10% of U.S. consumers are already using ad blocking.

Apple’s mobile operating system now allows users to enable ad blocking, so expect to see much higher ad blocker usage this year.

Brands are going out of their way to get and keep consumer eyeballs. Packaged goods giant Unilever, for example, has so far spent $15 million on its “future hunting” Foundry program, in hopes of connecting with marketing-tech startups to earn more consumer attention, loyalty, and ultimately, sales.

Ad blocking is not the only challenge marketers are facing. According to Deloitte, 55% of TV programming is now viewed via DVRs, video-streaming subscriptions, and other sources. And for millennials ages 14 to 25, this number jumps up to 72%.

People are no longer consuming media the same way a mass audience would in the past. They are now customizing content according to their own preferences. Rather than fighting this fragmentation, many companies, like Clorox Co., are embracing it.

Clorox has shifted more than 40% of its media spending to digital. Using programmatic media, the company is able to not only save money but reach people with more relevant ads to convert them into sales. According to Clorox chief marketing officer Eric Reynolds, this is the secret to their steady growth.

Improved targeting is only one part of the agenda. The industry also needs to find more creative, effective ways to reach today’s consumers, either by making it harder for viewers to avoid ads or to get them to opt in.

Increasing popularity of unavoidable ads

Some companies are spending their marketing dollars on media where ads are harder to avoid. For example, GE has shifted money to sports programming like NFL football and NCAA games. Others are pouring their dollars into the least avoidable forms of digital advertising. Pre-roll, search, and mobile newsfeed ads on Facebook and Google are increasingly annoying and impossibly difficult to avoid, even with ad blockers on.

What makes Google and Facebook so attractive for marketers though isn’t just their relative immunity to ad blockers alone; their huge audiences also allow brands to minimize costs while maximizing reach.

Content marketing on the rise?

More marketers are doing content marketing now if they haven’t already. But not everyone is a fan. Procter & Gamble global brand officer Marc Pritchard is one of them. He feels the term content marketing itself is “overused and underdefined.

Pritchard prefers calling marketers’ work “advertising,” since at the end day it’s about influencing consumer purchasing decisions to achieve a brand’s goals. And while I don’t agree with Pritchard that the term “content marketing” is still misunderstood by many in our industry, I don’t think calling it the exact opposite of what it is will help either.

PepsiCo Global Beverage Group president Brad Jakeman, on the other hand, wants the industry to stop using the term “advertising” in favor of “content.” Amen, brother! No one ever asked for an ad to interrupt their content experience. But everyone consumes content.

Love it or hate it, content marketing isn’t going away anytime soon. According to PQ Media, content marketing currently accounts for $67 billion in U.S. spending, and is expected to continue to grow.

It’s easy to imagine why Pritchard feels this way. P&G’s CEO doesn’t hand him a bucket of money to do marketing, especially not content marketing. The CEO of P&G and many other consumer brands wants their marketing team to make ads and coupons. And lots of them. Reach and frequency, baby!

And while they litter the streets and the airwaves with enough pieces of torn up paper to host a ticker tape parade, they “count what they catch.”

To many in the marketing world, reach and frequency is awesome. It is the source of their budget and power. It is easy to buy reach and frequency and shout into the wind. Who cares if no one hears it?

Just don’t ask Pritchard, and countless other CMOs who love their big advertising budgets, to try and figure out engagement.

I once said this to a big brand CMO (right to his face) after he told me they only care about reach: “Well, I guess you can shout into the wind, or you can engage directly with your target audience.” I was suggesting they try and measure engagement.

He didn’t care. He wasn’t moved. He certainly didn’t change. He just went and bought more ads.

Making avoidable ads unavoidable

With the growth of content marketing, it’s often assumed that the creative and production costs associated with content marketing would be higher compared to media spending.

However, a recent survey by Percolate found that 20% of overall marketing budgets are allocated to creative costs, and the biggest driver is not content marketing.

Marketers are now spending more on creative costs for traditional ads to make them more appealing to their target audience so viewers will not avoid them.

New face for brick-and-mortar stores

People can avoid ads, but they still have to buy things. To reach people in store, brands have to find new ways to encourage people to make purchases in stores rather than online.

Revlon, a brand that has relied heavily on traditional advertising and promotion displays in the past, began experimenting with adding beauty consultants to cosmetics counters in shopping malls. The brand hopes to use trial samples to drive purchases at stores. Hey, this feels more like content marketing than advertising. Help your customers and they will be more likely to buy from you.

Even fast-food chains are revamping their physical stores as a marketing tactic to attract more customers. Domino’s Pizza, for instance, has renovated 2,000 stores as part of its “pizza theater re-image,” with openly visible kitchens that allow customers to order and watch their pizzas being made.

Similarly, Wendy’s has opted for a more contemporary look, with fireplaces, flat-screen TVs and low-slung, cushioned chairs. Many grocery stores, such as Kroger, are also getting a face-lift to look more upscale, adding higher-end amenities such as coffee shops and sushi and oyster bars.

The new brick and mortar: Amazon

While e-commerce represents a very small percentage of total grocery sales – estimated at 2%, according to Morgan Stanley – it inevitably still has an impact on margins, particularly in-store promotions. With customers taking fewer trips to the shopping malls, in-store displays are reaching fewer and fewer people.

And 2016 may actually be the year for grocery e-commerce. Morgan Stanley’s consumer survey found that 26% of online shoppers are expected to purchase groceries online this year, up from only 8% a year ago.

This trend explains why many companies, such as Clorox, are dedicating more promotion resources to e-commerce sites and businesses like Amazon and Walmart.com. While one would think that big retail players like Target and Walmart would be consolidating, the reality is that retail is fragmenting too, like marketing and media. Small-format stores are growing in number as a result of urbanization, requiring big companies to reallocate and diversify their resources.

“Native advertising for e-commerce”

P&G is the world’s biggest ad spender for “point-of-market entry,” or sampling. It offers customers samples of its products at times when customers are most likely going to make brand decisions. For example, in the past P&G has provided samples of Pampers diapers to maternity wards and at Lamaze classes.

This growing interest in targeting and reaching consumers with product samples at the right moment, even when they are not shopping at stores physically, has fueled the growth of companies like Exact Media, which specializes in distributing highly targeted sample packages to consumers. In the last year alone, Exact Media’s sales has tripled, with big clients like P&G, Johnson & Johnson, and Unilever under its belt.

Exact Media’s CEO Ray Cao says the idea is like “native advertising for e-commerce.” He explains, “If I’m getting a shirt, and I also get a sample of laundry detergent, it doesn’t feel like I’m getting a random banner ad.”

Maybe P&G isn’t lost forever.

Rethinking product packaging

Coke’s “Share a Coke” labels, which feature people’s names printed on the bottles, is perhaps one of the best examples of customizing packaging to better connect and reach consumers.

Many other brands are also tapping into customized packaging to get closer to their customers. Clorox’s Brita, for example, has partnered with Amazon to sell chip-enabled water filters, which will automatically generate online orders of replacements when a customer’s old filter is almost used up.

Technological advances such as digital printing, conductive inks, Bluetooth-enabled packaging, and near-field communications for mobile phones, are opening up endless possibilities for brands to re-imagine their packaging to better engage consumers and win their loyalty.

The future of marketing focuses on customer value

OK, so traditional marketing tactics are not dead. Many are finding new ways to reach, engage, and convert their target consumers by focusing on providing value. But let’s please not call all this cool stuff “advertising.” It’s just what marketing is supposed to be: helpful!

What do you think? Have you seen any other disruptive trends or ideas that you think marketers should know or try out? Please share your thoughts below!

Photo Source: flickr

To learn how you can start to create content people actually want, contact me here and let’s talk about how we can help, or subscribe here to receive my latest updates.

The post The Future Of Marketing In An Increasingly Ad-Free World appeared first on Marketing Insider Group.

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About Michael Brenner

Michael Brenner is the CEO of Marketing Insider Group, former Head of Strategy at NewsCred, and the former VP of Global Content Marketing here at SAP. Michael is also the co-author of the book The Content Formula, a contributor to leading publications like The Economist, Inc Magazine, The Guardian, and Forbes and a frequent speaker at industry events covering topics such as marketing strategy, social business, content marketing, digital marketing, social media and personal branding.  Follow Michael on Twitter (@BrennerMichael)LinkedInFacebook and Google+ and Subscribe to the Marketing Insider.

Amazing Digital Marketing Trends And Tips To Expand Your Business In 2015

Sunny Popali

Amazing Digital Marketing Trends & Tips To Expand Your Business In 2015The fast-paced world of digital marketing is changing too quickly for most companies to adapt. But staying up to date with the latest industry trends is imperative for anyone involved with expanding a business.

Here are five trends that have shaped the industry this year and that will become more important as we move forward:

  1. Email marketing will need to become smarter

Whether you like it or not, email is the most ubiquitous tool online. Everyone has it, and utilizing it properly can push your marketing ahead of your rivals. Because business use of email is still very widespread, you need to get smarter about email marketing in order to fully realize your business’s marketing strategy. Luckily, there are a number of tools that can help you market more effectively, such as Mailchimp.

  1. Content marketing will become integrated and more valuable

Content is king, and it seems to be getting more important every day. Google and other search engines are focusing more on the content you create as the potential of the online world as marketing tool becomes apparent. Now there seems to be a push for current, relevant content that you can use for your services and promote your business.

Staying fresh with the content you provide is almost as important as ensuring high-quality content. Customers will pay more attention if your content is relevant and timely.

  1. Mobile assets and paid social media are more important than ever

It’s no secret that mobile is key to your marketing efforts. More mobile devices are sold and more people are reading content on mobile screens than ever before, so it is crucial to your overall strategy to have mobile marketing expertise on your team. London-based Abacus Marketing agrees that mobile marketing could overtake desktop website marketing in just a few years.

  1. Big Data for personalization plays a key role

Marketers are increasingly using Big Data to get their brand message out to the public in a more personalized format. One obvious example is Google Trend analysis, a highly useful tool that marketing experts use to obtain the latest on what is trending around the world. You can — and should — use it in your business marketing efforts. Big Data will also let you offer specific content to buyers who are more likely to look for certain items, for example, and offer personalized deals to specific groups of within your customer base. Other tools, which until recently were the stuff of science fiction, are also available that let you do things like use predictive analysis to score leads.

  1. Visual media matters

A picture really is worth a thousand words, as the saying goes, and nobody can deny the effectiveness of a well-designed infographic. In fact, some studies suggest that Millennials are particularly attracted to content with great visuals. Animated gifs and colorful bar graphs have even found their way into heavy-duty financial reports, so why not give them a try in your business marketing efforts?

A few more tips:

  • Always keep your content relevant and current to attract the attention of your target audience.
  • Always keep all your social media and public accounts fresh. Don’t use old content or outdated pictures in any public forum.
  • Your reviews are a proxy for your online reputation, so pay careful attention to them.
  • Much online content is being consumed on mobile now, so focus specifically on the design and usability of your mobile apps.
  • Online marketing is essentially geared towards getting more traffic onto your site. The more people visit, the better your chances of increasing sales.

Want more insight on how digital marketing is evolving? See Shutterstock Report: The Face Of Marketing Is Changing — And It Doesn’t Include Vince Vaughn.

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About Sunny Popali

Sunny Popali is SEO Director at www.tempocreative.com. Tempo Creative is a Phoenix inbound marketing company that has served over 700 clients since 2001. Tempos team specializes in digital and internet marketing services including web design, SEO, social media and strategy.

Social Media Matters: 6 Content And Social Media Trend Predictions For 2016 [INFOGRAPHIC]

Julie Ellis

As 2015 winds down, it’s time to look forward to 2016 and explore the social media and content marketing trends that will impact marketing strategies over the next 15 months or so.

Some of the upcoming trends simply indicate an intensification of current trends, however others indicate that there are new things that will have a big impact in 2016.

Take a look at a few trends that should definitely factor in your planning for 2016.

1. SEO will focus more on social media platforms and less on search engines

Clearly Google is going nowhere. In fact, in 2016 Google’s word will still essentially be law when it comes to search engine optimization.

However, in 2016 there will be some changes in SEO. Many of these changes will be due to the fact that users are increasingly searching for products and services directly from websites such as Facebook, Pinterest, and YouTube.

There are two reasons for this shift in customer habits:

  • Customers are relying more and more on customer comments, feedback, and reviews before making purchasing decisions. This means that they are most likely to search directly on platforms where they can find that information.
  • Customers who are seeking information about products and services feel that video- and image-based content is more trustworthy.

2. The need to optimize for mobile and touchscreens will intensify

Consumers are using their mobile devices and tablets for the following tasks at a sharply increasing rate:

  • Sending and receiving emails and messages
  • Making purchases
  • Researching products and services
  • Watching videos
  • Reading or writing reviews and comments
  • Obtaining driving directions and using navigation apps
  • Visiting news and entertainment websites
  • Using social media

Most marketers would be hard-pressed to look at this list and see any case for continuing to avoid mobile and touchscreen optimization. Yet, for some reason many companies still see mobile optimization as something that is nice to do, but not urgent.

This lack of a sense of urgency seemingly ignores the fact that more than 80% of the highest growing group of consumers indicate that it is highly important that retailers provide mobile apps that work well. According to the same study, nearly 90% of Millennials believe that there are a large number of websites that have not done a very good job of optimizing for mobile.

3. Content marketing will move to edgier social media platforms

Platforms such as Instagram and Snapchat weren’t considered to be valid targets for mainstream content marketing efforts until now.

This is because they were considered to be too unproven and too “on the fringe” to warrant the time and marketing budget investments, when platforms such as Facebook and YouTube were so popular and had proven track records when it came to content marketing opportunity and success.

However, now that Instagram is enjoying such tremendous growth, and is opening up advertising opportunities to businesses beyond its brand partners, it (along with other platforms) will be seen as more and more viable in 2016.

4. Facebook will remain a strong player, but the demographic of the average user will age

In 2016, Facebook will likely remain the flagship social media website when it comes to sharing and promoting content, engaging with customers, and increasing Internet recognition.

However, it will become less and less possible to ignore the fact that younger consumers are moving away from the platform as their primary source of online social interaction and content consumption. Some companies may be able to maintain status quo for 2016 without feeling any negative impacts.

However, others may need to rethink their content marketing strategies for 2016 to take these shifts into account. Depending on their branding and the products or services that they offer, some companies may be able to profit from these changes by customizing the content that they promote on Facebook for an older demographic.

5. Content production must reflect quality and variety

  • Both B2B and B2C buyers value video based content over text based content.
  • While some curated content is a good thing, consumers believe that custom content is an indication that a company wishes to create a relationship with them.
  • The great majority of these same consumers report that customized content is useful for them.
  • B2B customers prefer learning about products and services through content as opposed to paid advertising.
  • Consumers believe that videos are more trustworthy forms of content than text.

Here is a great infographic depicting the importance of video in content marketing efforts:
Small Business Video infographic

A final, very important thing to note when considering content trends for 2016 is the decreasing value of the keyword as a way of optimizing content. In fact, in an effort to crack down on keyword stuffing, Google’s optimization rules have been updated to to kick offending sites out of prime SERP positions.

6. Oculus Rift will create significant changes in customer engagement

Oculus Rift is not likely to offer much to marketers in 2016. After all, it isn’t expected to ship to consumers until the first quarter. However, what Oculus Rift will do is influence the decisions that marketers make when it comes to creating customer interaction.

For example, companies that have not yet embraced storytelling may want to make 2016 the year that they do just that, because later in 2016 Oculus Rift may be the platform that their competitors will be using to tell stories while giving consumers a 360-degree vantage point.

For a deeper dive on engaging with customers through storytelling, see Brand Storytelling: Where Humanity Takes Center Stage.

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About Julie Ellis

Julie Ellis – marketer and professional blogger, writes about social media, education, self-improvement, marketing and psychology. To contact Julie follow her on Twitter or LinkedIn.

Live Businesses Deliver a Personal Customer Experience Without Losing Trust

Lori Mitchell-Keller, Brian Walker, Johann Wrede, Polly Traylor, and Stephanie Overby

Trust is the foundation of customer relationships. People who don’t trust your business are not likely to become or remain customers.

The trust relationship has taken some big hits lately. Beloved brands like Chipotle and Toyota have seen customer trust ebb due to public perception of their roles in safety issues. Consumers continue to experience occasional data breaches from large brands.

Yet these traditional threats have short half-lives. The latest threat could last forever.

Most customers claim they want personalization across all the channels in which they interact with companies. Such personalization should create long-term loyalty by creating a new level of intimacy in the relationship.

sap_Q216_digital_double_feature3_images2But that intimacy comes at a high price. For personalization to work, brands need to gather unprecedented amounts of personal information about customers and continue to do so over the course of the relationship. Customers are already wary: 80% of consumers have updated their privacy settings recently, according to an article in VentureBeat.

Companies must get personalization right. If they do, customers are more likely to purchase again and less likely to switch to a competitor. Personalization is also an important step toward the holy grail of digital transformation: becoming a Live Business, capable of meeting customers with relevant and customized offers, products, and services in real time or in the moments of customers’ choosing.

When done wrong, personalization can cause customers to feel that they’ve been deceived and that their privacy has been violated. It can also turn into an uncomfortable headline. When Target used its database of customer purchases to send coupons for diapers to the home of an expectant teen before her father knew about the pregnancy, its action backfired. The incident became the centerpiece of a New York Times story on Target’s consumer intelligence gathering practices and privacy.

Straddling the Line of Trust

Customers can’t define the line between helpful and creepy, but they know it when they see it.

Research conducted by RichRelevance in 2015 made something abundantly clear: what marketers think is cool may be seen as creepy by consumers. For example, facial-recognition technology that identifies age and gender to target advertisements on digital screens is considered creepy by 73% of people surveyed. Yet consumers were happy about scanning a product on their mobile device to see product reviews and recommendations for other items they might like, the survey revealed. Here’s what else resonates as creepy or cool when it comes to digital engagement with consumers, courtesy of RichRelevance and Edelman Berland (now called Edelman).

Creepy

  • Shoppers are put off when salespeople greet them by name because of mobile phone signals or know their spending habits because of facial-recognition software.
  • Dynamic pricing, such as a digital display showing a lower price “just for you,” also puts shoppers off.
  • When brands collect data on consumers without their knowledge, 83% of people consider it an invasion of privacy, according to RichRelevance’s research, and 65% feel the same way about ads that follow them from Web site to Web site (retargeting).

Cool

  • Shoppers like mobile apps with interactive maps that efficiently guide them to products in the store.
  • They also like when their in-store location triggers a coupon or other promotion for a product nearby.
  • When a Web site reminds the consumer of past purchases, a majority of shoppers like it.

There are no hard-and-fast rules about which personalization tactics are creepy and which are cool, but trust is particularly threatened in face-to-face interactions. Nobody minds much if Amazon sends product recommendations through a computer, but when salespeople approach customers like a long-lost friend based on information collected without the customer’s knowledge or permission, the violation of trust feels much more personal and emotional. The stage is set for an angry, embarrassed customer to walk out  the door, forever.

sap_Q216_digital_double_feature3_images3It doesn’t help that the limits of trust shift constantly as social media tempts us to reveal more and more about ourselves and as companies’ data collection techniques continue to improve. It’s easy to cross the line from helpful to creepy or annoying (see Straddling the Line of Trust).

Online, customers are similarly choosy about personalization. For example, when online shoppers are simply looking at a product category, ads that matched their prior Web-browsing interests are ineffective, an MIT study reports. Yet after consumers have visited a review site to seek out information and are closer to a purchase, personalized content is more effective than generic ads.

Personalization Requires a Live Business

Yet the limits of trust are definitely shifting toward more personalization, not less. Customers already enjoy frictionless personalized experiences with digital-native companies like Uber, and they are applying those heightened expectations to all companies. For example, 91% of customers want to pick up where they left off when they switch between channels, according to Aspect research. And personalization is helpful when you receive recommendations for products that you would like based on previous in-store or online purchases.

sap_Q216_digital_double_feature3_images-0004Customers also want their interactions to be live—or in the moment they choose. Fulfilling that need means that companies must become Live Businesses, capable of creating a technological infrastructure that allows real-time interactions and that allows the entire organization—its structure, people, and processes—to respond to customers in all the moments that matter.

Coordinating across channels and meeting customers in the right moments with personalized interactions will become critical as the digital economy matures and customer expectations rise. For instance, when customers air complaints about a brand on social media, 72% expect a response within an hour, according to consulting firm Bain & Company. Meanwhile, an Accenture survey found that nearly 60% of consumers want real-time promotions; 48% like online reminders to order items that they might have run out of; and 51% like the idea of a one-click checkout, where they can skip payment method or shipping forms because the retailer has saved their preferences. Those types of services build trust, showing that companies care enough to understand their customers and send offers or information that save them time, money, or both.

So while trust is difficult to earn, once you’ve earned it and figured out how to maintain it, you can have customers for life—as long as you respect the shifting boundaries.

“Do customers think the company is truly acting with their best interests at heart, or is it just trying to feed the quarterly earnings beast?” asks Donna Peeples, a customer experience expert and the former chief customer experience officer at AIG. “Customer data should be accurate and timely, the company should be transparent about how the data is being used, and it should give customers control over data collection.”

sap_Q216_digital_double_feature3_images-0005How to Earn Trust for a Live Business

Despite spending US$600 billion on online purchases, U.S. consumers are concerned with transaction privacy, the 2015 Consumer Trust Survey from CA Security Council reveals. These concerns will become acute as Live Businesses make personalization across channels a reality.

Here are some ways to improve trust while moving forward with omnichannel personalization.

  • Determine the value of trust. Customers want to know what value they are getting in exchange for their data. An Accenture study found that the majority of consumers in the United States and the United Kingdom are willing to have trusted retailers use some of their personal data in order to present personalized and targeted products, services, recommendations, and offers.
    “If customers get substantial discounts or offers that are appealing to them, they are often more than willing to make that trade-off,” says Tom Davenport, author of Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. “But a lot of companies are cheap. They use the information but don’t give anything back. They make offers that aren’t particularly relevant or useful. They don’t give discounts for loyalty. They’re just trying to sell more.”
  • Let customers make the first move. Customers who voluntarily give up data are more likely to trust personalization across the channels where they do business. Mobile apps are a great way to invite customers to share more data in a more intimate relationship that they control. By entering the data they choose into the app, customers won’t be annoyed by personalization that’s built around it.
    For example, a leading luxury retailer’s sales associates may offer customers their favorite beverages based on information they entered into the app about their interests and preferences.
  • Simplify data collection and usage policies. Slapping a dense data- use policy written in legalese on the corporate website does little to earn customers’ trust. Instead, companies should think about the customer data transaction, such as what information the customer is giving them, how they’re using it, and what the result will be, and describe it as simply as possible.
    “Try to describe it in words so simple that your grandmother can understand it. And then ask your grandmother if it’s reasonable,” suggests Elea McDonnell Feit, assistant professor of marketing at Drexel University’s LeBow College of Business. “If your grandmother can’t understand what’s happening, you’ve got a problem.”
    The use of data should be totally transparent in the interaction itself, adds Feit. “When a company uses data to customize a service or offering to a customer, the customer should be able to figure out where the company got the data and immediately see how the company is providing added value to the customers by using the data,” Feit says.
  • Create trust through education. Yes, bombarding customers with generic offers and pushing those offers across the different Web sites they visit may boost profits over the short term, but customers will eventually become weary and mistrustful. To create trust that lasts and that supports personalization, educate the customers.

Procter & Gamble’s (P&G’s) Mean Stinks campaign for Secret deodorant encourages girl-to-girl anti-bullying posts on Twitter, Facebook, and Instagram. The pages let participants send apologies to those they have bullied; view videos; and share tips, tools, and challenges with their peers.

P&G has said that participation in Mean Stinks has helped drive market share increases for the core Secret brand as well as the specific line of deodorant promoted by the effort. Offering education without pushing products or services creates a sense that companies are putting customers’ interests before their own, which is one of the bedrock elements of trust. Opting in to personalization seems less risky to customers if they perceive that companies have built up a reserve of value and trust.

“Companies that do personalization well demonstrate that they care, respect customers’ time, know and understand their customers and their needs and interests,” says Peeples. “It also reinforces that interactions are not merely transactions but opportunities to build a long-term relationship with that customer.”

Laying the Foundation for Live, Personalized Omnichannel Processes

sap_Q216_digital_double_feature3_images-0006Creating a personalized omnichannel strategy that balances trust and business goals starts with knowing the customer. This can happen only when multiple aspects of your business are coordinated in a live fashion. But marketers today struggle to collect the kind of data that could drive more meaningful connections with customers. In an Infogroup survey of more than 500 marketers, only 21% said they are “very confident in the accuracy and completeness of their customer profiles.” A little over half of respondents said they aren’t collecting enough data overall.

Collecting enough of the right types of data requires more holistic data-collection techniques:

  • Take advantage of the lower costs for processing and storing terabytes of data, and develop a data strategy that combines and crunches all the customer data points needed to drive relevant interactions. This includes transactional, mobile, sensor, and  Web data.
  • Social media analytics is also a central tactic. Social profiles and activity are rich sources of data about behavior and character, merging what people buy or look for with their interests, for instance. Such data can feed predictive analytics and personalization campaigns.
  • Experiment with commercial tools that can filter and mine the data of customers and prospects in real time. This is a significant step beyond basic demographic data collections of the past.

sap_Q216_digital_double_feature3_images-0007Once the necessary data is available, companies need the technology, processes, and people to make sensible use of it in an omnichannel personalization strategy. Only when a company is organized as a Live Business can that happen. Here’s how your company can move toward being a Live Business:
Be live across channels. Having a consistent customer journey map across channels is core to omnichannel personalization. It requires integration across multiple systems and organizational silos to enable core capabilities, such as inventory visibility and purchase/pickup/return across channels. This integration also constitutes a major chunk of the transition to becoming a company that can act in the moments that matter most to customers. If all channels can sync in real time, customers can get what they want in the moment they want it.

Free the data scientists. Marketing rarely has full control over the omnichannel experience, but it is the undisputed leader in understanding customer behavior. While data science is part of that understanding, it has traditionally played a background role. Marketers need to bring the data scientists into efforts to sort through the different options for digitizing the omnichannel experience. The right data scientists understand not only how to use the tools but also how to apply the data to make accurate decisions and follow customers from channel to channel with personalized offers.

Walgreens’ Technology Approach to Personalization

Walgreens is a leader in building the kind of technology base that can enable real-time, omnichannel personalization. Its digital transformation is 16 years in the making, according to Jason Fei, senior director of architecture for digital engineering at Walgreens. At the heart of its infrastructure is a Big Data engine that feeds many customer interaction and omnichannel processes, including customer segmentation. The company adds third-party systems in areas such as predictive analytics and marketing software. Walgreens has a cloud-first strategy for all new applications, such as its image-processing and print-ordering applications. Other elements of the drugstore chain’s technology platform include:

  • Application programming interface (API)-driven architecture. Walgreens’ APIs enable more than 50 partners to connect with its apps and systems to drive customer-facing processes, including integrations with consumer wearables to drive reward points for healthy habits, as well as content partnerships with companies such as WebMD. “With APIs we can be an extensible business, allowing other companies to connect to us easily and help in the digital enablement of our physical stores,” Fei says.
  • Responsive Web sites. The company’s Web site is built using responsive and adaptive design practices so that the site automatically adapts to the consumer’s device, whether that is a mobile phone, tablet, or desktop computer. “We have a single code base that runs anywhere and delivers a consistent, optimized experience to all of our customers,” Fei says.

Making the Most of the Technology Base

This technology foundation has allowed Walgreens to push forward in personalization. For example, according to Fei the company uses sophisticated segmentation and personalization engines to drive outbound e-mail and text campaigns to customers based on their purchase history and profile. “We don’t blast out messages to customers; we use our personalization recommendations to be relevant,” says Fei.

The next phase of this strategy is to develop live inbound personalization tactics, such as recognizing customers when they come back to the Web site and tailoring their experience accordingly. These highly automated, self-learning systems improve over time, becoming more relevant at the moment a customer logs back in.

“When you search for a product, the Web site will take a good guess of what you might actually want. If you always print greeting cards at the same time of year, for example, the system would automatically deliver content around that,” Fei explains. “Everyone comes to Walgreens with a mission, so we can be very targeted with our communications.”

Walgreens’ mobile app combines real-time personalization with convenience. You can scan a pill bottle to refill a prescription, access coupons, send photos from your phone to print in the store, track rewards, and find the exact location of a product on the shelf.

Walgreens also recently deployed a new integrated interactive voice-response system that includes a personalization engine that recognizes the individual, says Troy Mills, vice president of customer care at Walgreens. The system can then predict the most probable reason for the customer’s call and quickly get them to the right individual for further help.

How to Get Started with Live Customer Experiences

sap_Q216_digital_double_feature3_images-0008As Fei can attest, getting Walgreens’ omnichannel and personalization infrastructure to this point has involved a lot of work, with much more to come. For companies just now embarking on this journey, especially midsize and large companies, getting started will mean overhauling an outdated and ineffective technology infrastructure where duplicate systems and processes for managing customer data, marketing programs, and transactions are common.

A bad internal user experience often transcends into a bad customer-facing experience, says Peeples. “We can’t afford the distractions of the latest app or social ‘shiny penny’ without addressing the root causes of our systems’ issues.”

Live Business Requires Striking the Right Balance

The boundaries of trust are a moving target. Sales tactics that used to be acceptable decades ago, such as the door-to-door salesperson, are unwelcome today to most homeowners. And consumers’ expectations are unpredictable. At the dawn of social media, many people were anxious about their photos unexpectedly showing up online. Now our identities are tagged and our posts and photos distributed and commented on regularly.

But while consumers are getting more comfortable with online technology and its trade-offs, they won’t put up with personalization efforts that make use of their data without their knowledge or permission. That data has value, and customers want to decide for themselves when it’s worth giving it away. Marketers need to strike the right balance between personalization and a healthy respect for the unique needs and concerns of individuals. D!

 

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Lori Mitchell-Keller

About Lori Mitchell-Keller

Lori Mitchell-Keller is the Executive Vice President and Global General Manager Consumer Industries at SAP. She leads the Retail, Wholesale Distribution, Consumer Products, and Life Sciences Industries with a strong focus on helping our customers transform their business and derive value while getting closer to their customers.

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How Mobile Technology Impacts The HR Industry

Meghan M. Biro

We use mobile devices for nearly everything, from shopping and researching to scheduling our daily lives. In fact, more than 85 percent of U.S. millennials own a smartphone and use it frequently throughout the day.

Businesses are already optimizing their use of mobile technology to reach their customers and to make their employees work lives more efficient, but there’s one area where they’re overlooking a huge opportunity: Human resources. 

Mobile use for HR needs

Considering how tethered many of us are to our smartphones, it should come as no surprise that employees appreciate mobile access to information as much as customers. A recent study by ADP found that 37 percent of mobile users rely on their smartphones to access pay information through an HR app. That’s a significant chunk of the workforce already turning to mobile solutions—and those numbers will only continue to grow.

I’ve said for years that the world is growing ever more global and mobile and HR has to be, too. To reach the right talent, you need to be mobile-friendly in design and ease of usage. HR should always go where the talent is – and these days it’s on mobile.

Harnessing the power of mobile—and cloud technology—will provide business with opportunities to make huge changes for the better.

Use technology to attract a younger workforce

Baby boomers are quickly reaching retirement, and the new workforce is made up of tech-savvy millennials—with the equally savvy Generation Z not far behind.

These younger professionals have a different perspective, work ethic, and set of expectations for employment. Mobility is their calling card; one study by Aruba Networks found that the “#GenMobile” demographic prefers flexibility when it comes to where they work, and when. An estimated 37 percent of workers telecommute full-time, with the average worker telecommuting two days a month. Technology has given us not just mobile devices, but also a mobile lifestyle.

Competition in the job market is fierce; businesses are clamoring to find the best talent, wherever it may be. Many companies are changing their HR processes to attract and retain workers—not just by tossing around perks like flexible hours or unlimited vacation days, but also through the smart use of mobile technology.

Mobile HR apps

Mobile HR apps help put data at employees’ fingertips—but what does that really mean? Here’s an example: ADP’s mobile app already has more than two million downloads, and less than two percent of customers have opted out of the service. The ADP app allows employees to access data like pay information anytime, anywhere.

This kind of 24/7/365 connectivity is important to a generation of wired-in (or, more precisely, wireless) professionals. To take this example a little further, let’s have a look at what else employees can do with the ADP app:

  • View payroll statements.
  • Clock in and out.
  • Send messages if they’re running late or going to be absent.
  • Request time off.
  • Track their schedules.
  • Review benefits, savings accounts, and spending accounts.
  • Create or revise timesheets.

Mobile recruiting

Mobile technology isn’t just affecting how employees access information; it’s changing the way businesses recruit new employees. According to Capterra, a free service to help companies find the right software, 2016 will be the year more HR tools offer mobile functionality and HR professionals use their mobile devices to apply, recruit and work. Capterra projects that those numbers will continue to grow in 2016 as more of online activities move to mobile.

According to Deloitte’s Global mobile consumer survey, 97 percent of adults aged 18-24 check their mobile phones within three hours of waking up and check their mobile devices an average of 74 times per day. The same research reveals that 50 percent of users of all ages check their phones one last time, 15 minutes before going to sleep. Mobile is where the people (and the candidates) are and where they will be in increasing numbers as time goes on.

Social media platforms, like LinkedIn and Facebook, are quickly becoming the go-to way for businesses to find and communicate with potential candidates. An Aberdeen study found that 73 percent of 18-34-year-olds found their last job through a social network and 89 percent of recruiters have hired an employee through LinkedIn.

Undoubtedly, mobile technology and apps have made a huge impact on both internal and external HR functions.

Consumer products and technology have conditioned us to use mobile for a variety of needs, and employees expect the same responsiveness and ease of use in workplace applications. Mobile apps are beneficial across the board: They bring your business into the 21st century, increase HR accessibility, and allow you to reach a wider audience for recruiting, communication, and marketing.

Mobile is fast becoming the rule rather than the exception. Businesses need to get moving on the implementation of mobile technology throughout all departments, especially HR.

For more on how cutting-edge technology is transforming HR, see How Big Data Drives HR In 2016.

A version of this post was originally published on Converge.xyz.

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