Sections

12 Marketing Trends Every Top Brand Needs To Know In 2016

Michael Brenner

If there’s one thing we learned in 2015, it’s that in 2016 marketers are increasingly moving away from a “Mad Men” advertising era to a digital marketing age focused on the customer experience and journey. So what strategies, technologies, and tactics do marketers need to understand and learn to better engage, entertain, and delight their consumers? According to Andreas von der Heydt, a senior executive at Amazon, these are the top 12 trends marketers need to know to build a stronger brand in 2016:

1. Personalization and simplicity

Today’s consumers have more choices and information than ever before when it comes to making a purchase. But they also want to spend as little time as they need to when choosing what fits their needs and wants.

That’s why many top brands today are implementing lead nurturing programs that are personalized to the needs, interests and actions of different prospects, so they are sent off to the appropriate nurture paths.

An example of personalized marketing approach is dynamic pricing. Subscription models like Amazon Prime Video or Spotify, and “Pay What You Want” strategies like Humble Bundle, are effective marketing tactics to deliver a customized, simplified and improved customer experience.

2. Big Data and analytics

Using big data and analytics, brands can uncover new insights on their existing and new target groups, and better understand and predict consumer needs and wants to improve their sales and marketing strategies.

Data-driven tools and CRM solutions like Hubspot, Salesforce Pardot, Oracle CRM, and Nimble are helping marketers collect, organize, and analyze their data; generate new insights to incorporate into their marketing strategies; and make better recommendations and predictions for future actions. Whether you’re a small, mid-sized, or large company, you’ll want to consider taking advantage of these tools to gain a competitive edge.

3. Social selling

Today nearly two-thirds of American adults use social networking sites, according to a recent study by Pew Research Center. Another Pew research found that 62% of all American adults are Facebook users, with 31% on Pinterest and 28% on Instagram. User engagement for these social media sites has also increased significantly, with 59% of Instagram users, 27% of Pinterest users, and 22% of LinkedIn users visiting these sites on a daily basis.

It’s clear that social media is an effective tool for driving site traffic, and top brands are taking social media to the next level by using it to drive sales. For those who are looking to develop or improve their social media strategy this year, having the right metrics and social listening are key.

Regardless of the channels your brand is on, you need the right metrics to define and measure ROI and success. Going beyond vanity metrics like “views,” top brands are tracking engagement and other metrics like comments, shares, and even quality of comments (i.e. Klout score of users, leads and sales generated from comments, etc.).

Social listening is also critical to your marketing and sales success. Andreas suggests brands to keep social “social.” Use it to listen to your audience, understand their needs, answer their questions, and gather feedback and ideas from them. You also want to set realistic expectations for your social activities, and not over-stretch too much too fast.

4. Generation Z consumers

Generation Z is here. Defined as those born between mid to late-1990s and 2010, Gen Z grew up with digital technology and a world with easy, constant access to the web. Their comfort with technologies will represent both an opportunity and challenge for brands who want to reach them.

Generally speaking, Gen Z is more financially conservative than their Gen Y peers. They are also very entrepreneurial, independent-minded, and socially responsible. They embrace diversity and differences. Compared to Gen Y, Gen Z is much harder to interact with and they have much shorter attention spans.

But one important thing marketers need to understand is that they are no different than any other generations of consumers, in that they are looking for brands who they can trust and relate with, and can add value and help with their needs and wants.

5. Mobile and location-based marketing

According to Google, more searches are now performed on mobile devices than computers. This means leading marketers will be investing even more on mobile. Marketers can use location-based marketing technologies such as iBeacons and Radio Frequency Identification (RFIDs) to connect and interact with consumers in real time and to promote more sales.

313 Somerset, for example, is the first mall in Singapore to implement location-based marketing technology. Shoppers can use the mall’s app to get sales alerts and coupons on their mobile devices when they are near the shopping center. Retailers have reported 46% sales conversion as a result of the app.

6. Messaging apps

36% of smartphone owners use messaging apps like WhatsApp or Facebook Messenger on their devices in the U.S. Globally, this number reaches billions of users. For brands and marketers, messaging apps represent huge opportunities to drive more sales and revenue.

WeChat, a popular messaging app in China, is already leading the way in mobile commerce and marketing. It’s had great success as a mobile payment platform, allowing users to purchase movie tickets and taxi services, for example.

Slowly but steadily, messaging apps have also begun experimenting with advertising. WeChat has successfully integrated ads into users’ timelines already, and we are starting to see this with popular apps in the West as well like SnapChat Discover, which allows brands to directly reach consumers in creative ways.

7. Wearable technology, virtual reality, and artificial intelligence

Virtual reality and wearable technology will hit the mainstream. Wearables and VR headsets like Oculus Rift will present marketers new ways to tell their brand stories and communicate with consumers through immersive 360 experiences.

In 2016, we’ll also see improved artificial intelligence capabilities (see the RoboWatch project) and more sophisticated “Chatbots.” In a few years, we may see AI-powered robots and personal assistants searching the web to help consumers find what they want, and making personalized recommendations based on their needs.

8. Video and moving images

2015 has already been an incredible year for video, and its popularity will further increase in 2016. With shorter attention spans, video is here to stay and won’t be going away anytime soon. In fact, according to Cisco, consumer Internet video traffic will make up 80% of all Internet traffic by 2019, up from 64% in 2014.

We are already seeing brands re-prioritizing their traditional advertising budgets for digital video. For many marketers, branded video content has already become an essential component of their marketing activities, and soon it will become the center.

Leading marketers will also focus more on live-stream video platforms like Periscope and Vine videos. Red Bull, for example, is known for live streaming behind-the-scene views of its snowboarding contests on Meerkat.

A newer video streaming app called Blab is also growing in popularity. Blab allows up to four people video chatting simultaneously with the audience watching and commenting live. Blab video chats can easily be shared on Twitter, which helps with social sharing and viral growth.

9. Data security

Hacking, in Michael Dell’s words, has become a “multi-billion-dollar industry.” For top marketers, cybersecurity is an essential focus to ensure customer data is protected. Leading brands are hiring specialized companies like Social-Engineer to test and identify weak points in their security both online and offline.

10. Meaningful, real-time communication

As consumers increasingly expect more personable and real-time interactions with brands, top marketers will need to focus on strategies that deliver such experiences, such as video streaming, blogging, and webinars to get people’s attention and engagement.

As well, finding “moments” that matter to consumers where brands can build authentic emotional connections will be key for top marketers. These moments, for example, may be the Olympics, Super Bowl, or blockbuster movies like Star Wars. But it’s not enough to just show up with real-time messages. You need meaningful, bold, and inspirational content to stand out from all other competing brand messages.

Smart marketers will also develop an influencer plan to identify top bloggers, relevant experts and influential leaders they can collaborate with to help amplify their messages to the relevant audiences.

11. Employee advocacy

To build a strong brand, you need a fan base of highly engaged and committed brand ambassadors who can help share and promote your brand messages through their networks.

Content shared by employees gets 8 times more engagement than when shared by official brand channels. 90% of consumers also said that they trust social media and word-of-mouth recommendations by family or friends more than other advertising, and that’s where your employees can come in.

According to the 2015 Edelmann Trust Barometer, 63% of consumers surveyed refuse to buy products or services from a company they do no trust. On the other hand, 80% of respondents will buy from companies they trust, and 68% will recommend them to a friend or colleague.

That goes to show how important it is for top brands to build trust and honest, authentic relationships with their audiences. By empowering your employees to take an active role in telling and sharing your brand stories, they help improve your company’s personal branding efforts, as well as increase their own engagement and commitment to your brand.

12. Customer and content-centric organizations

Leading brands are thinking and taking their digital strategy beyond marketing, to everything from sales, HR, finance, R&D, legal, and business planning. Many companies have introduced the new role of chief digital officer (CDO) to lead the digital transformation for the entire organization. Others are building their digital capabilities by improving their business models and processes, then building leadership capabilities across the organization to drive change.

Forward-thinking brands are also rethinking their key departments and functions and reorganizing based on customer experience and innovation. As well, they will work hard to recruit hybrid marketers who have both strong analytical and tech-savvy skills as well as an aptitude and passion for marketing. These next-gen marketers will help top brands evolve, compete, and win in the modern marketing era.

What do you think? Which of these trends have you adopted already or will be executing this year? Please share your thoughts below!

For more marketing strategies to boost your company’s growth this year and beyond, see Digital Tactics That Help Acquire, Convert, And Retain Customers.

The post 12 Marketing Trends Every Top Brand Needs To Know In 2016 appeared first on Marketing Insider Group.

Comments

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.

Platform Economy: Putting Customer Value First

Pedro Pereira

Can platform economies replace traditional commerce? The platform economy is about taking risks, learning, and trying. Digital platforms are driving a change in mindset by democratizing the way people look at what they want. Leaders who allow questions like “what if?” and “what is?” to guide the creative process can help organizations leverage platforms to deliver meaningful customer value.

The platform economy is no longer emerging; it has arrived. Linear business models that are resource-heavy and producer-driven are shifting to multi-sided platform models that are demand-driven. Major companies like Google, Etsy, and Uber have already created online structures or are diversifying existing ones, like Amazon as a web platform entering the B2B provider space.

Some companies are trying to build a digital platform, but end up providing only basic services rather than utilizing the full potential of digitization to exceed customer expectations, enhance the customer experience, and deliver convenience and personalization. For example, a grocery store could build an app that enables customers to order goods and have them delivered. An extension of the app could operate as a digital twin, adding convenience by guiding users on what to buy.

But what, exactly, does a digital platform economy do?

Platforms push change in mindset

Platforms democratize the way people look at what they want. Consumers are looking for choices, comparisons, and help with decision-making. The idea that consumers make decisions at the store is no longer the norm—now they are looking to have an experience in the store. Stores need to focus on not only enabling experiences, but also helping people make decisions.

Digital platforms are driving people to change the way they consume. This means companies need to radically change how they offer products and services, how they capture information to deliver meaningful customer service, how they create value in this economy, and finally, how they compete for profits. 

Traditional commerce versus digital platforms

In traditional commerce, companies must compete at many different levels. Digital platforms disrupt this process because they consume the value and deliver the service. Why, then, do we need brick-and-mortar organizations regulating the environment?

Before we discuss bringing the digital platform to traditional retailers, we need to evaluate the way people consume products now. Today’s consumers buy products and services to pursue a lifestyle. That means we need to focus on adding value first, and then move on to the transaction.

That is why traditional e-commerce is at a loss in the game. Where traditional e-commerce ecosystems push, the new platforms pull. As data lies at the core of platform economies—versus products or transactions at the core of traditional commerce—the platform economy provides an edge by enabling companies to offer meaningful and relevant content, products, and services.

In the end, it is all about:

  • Convergence
  • Understanding what is meaningful to the customer
  • A brands’ ability to communicate with and understand its customers and make recommendations based what is meaningful to them

Dematerializing traditional ecosystems

My role at SAP has involved looking at the concept of the platform, bringing it to customers, and enabling companies to become the platform. Let’s look at the two sides of the market: the creators of the service are on one side, and consumers are on the other. To facilitate more trade through the platform so that it becomes an active marketplace, we need to break the concept of suppliers and start looking at them as value creators. Once we aggregate functions on a platform and dematerialize a traditional ecosystem, we see that many of the activities, and much of the exchange of information that does not happen in a traditional model, is centralized in the platform.

Who makes the decision to move to the platform economy?

The decision to transition to the platform economy comes either from a strong leader who is trying to grow a company through innovative disruption or, ideally, a CEO who embraces digital transformation and has a structured agenda in their strategy to make this happen.

Most core companies are typically hinged on two key components: time and performance. After a point, they need a new S curve, which requires investment. Ideally, this should be done in the growth phase rather than when during a downturn. And the answer lies in digital platform ecosystems. Today’s smart leaders will pursue a strategy that experiments with and invests heavily in disruptive platform economies.

What are the key learnings of building/leveraging a platform?

Shifting your mindset to a platform business model means moving away from the concept of “I,” “my,” and “mine.” It is imperative to give power to the ecosystem by enabling its components to shine.

The platform economy is about taking risks, experimenting, trying, and learning. We need leaders who believe in, and are willing to invest in, these ecosystems and ask “What if?” and “What is?”

  • What if I started solving problems that are more meaningful to customers instead of pushing products?
  • What if I relied on assets that are not mine? Can I let go control with enough governance to facilitate the exchange of value between people I don’t control?
  • What if I stopped making money and focused on adding value to my customers? What would happen to by business? Where would I go?
  • What if I made these changes and came to a level of balance?
  • What is in it for me?
  • What is the story you want to tell? Tell the story and honor the MVP.
  • What is the upside potential? What do you have as a result of this platform?
  • What is the downside and the risk?

The rise of platforms is being driven by three transformative technologies: cloud, social, and mobile. Platforms can be an important competitive advantage if allowed to evolve and managed effectively on both the supply and demand side.

Time to get thinking.

For more insight on how platform is transforming business strategy, see Disrupt Or Be Disrupted: Why Platform, Not Pipeline, Will Save Your Business.

Comments

Pedro Pereira

About Pedro Pereira

Pedro S. Pereira is Head of Digital Innovation for Middle East and North Africa at SAP.

3 Millennial Expectations Every E-Commerce Business Needs To Address

Tracy Vides

Ah, the millennials – the generation brought up with the Internet and the rest of the digital revolution! While there may be a good deal of stigma attached to this crowd, there’s no stopping the fact they are flooding the job market and are predicted to spend $1.4 trillion in the U.S. retail market by 2020.

Due the fascinating point in history this age group grew up in, they are an extremely tricky bunch to market and sell to. They have essentially caused a lot of brands to throw out their entire playbook and start from scratch.

Let’s a take a quick look at a couple of the top brands today: Amazon, the leading retailer, does not own any physical stores. Uber, the leader in transportation, does not own any cars. Both of have one thing in common: the point-of-sale happens electronically.

This phenomenon is a big indicator that e-commerce is taking over. Modern shoppers (particularly millennials) have much different values and expectations than shoppers did 20 to 30 years ago. No surprise, therefore, that for most online companies, appealing to a millennial audience has become a top priority. Let’s discuss three of the most prominent expectations these shoppers have for e-commerce businesses.

1. Persuasive social media presence

Hundreds of years from now, when historians discuss the biggest breakthroughs happening early in the second millennium, the rise of social media will undoubtedly be one of the most debated topics.

What took off in the early 2000s now has a collective user count around 2.5 billion, many of them millennials. In fact, a recent survey found that 88% of millennials get their news via Facebook.

With this many eyes on social media, having a strong brand presence on popular outlets is no longer an option. The harsh truth is that millennials are not responsive to traditional ads or played-out sales tactics. While social advertising is proving to be very effective, one of the main goals of your brand’s social media presence must be to give your messaging a playful and humanized tone that connects with the younger audience on a more in-depth level.

Red Bull is well known for its superior social media presence. It uses its accounts to become so much more than just an energy drink. If you follow Red Bull, you’ll see how good it is at promoting original, branded material such as films, competitions, live shows, and of course, user-generated content.

In addition to favoring e-commerce brands with a human touch, millennials value consistency and responsiveness across channels. Be sure you are keeping up with all your accounts in all networks to remain in touch with your audience.

2. Personalized user experience

Even though the development of technology and the evolution of the Internet have done a lot to bring us together as a species, e-commerce is getting more individualized. Millennials are not fazed by traditional marketing and sales pitches. They want interactions to be tailored to their needs.

Unfortunately, there is no formula written in stone about how to deliver the perfect personalized experience.

However, there are certain things you can do to embrace this concept. For example, Amazon’s homepage looks different to each and every customer. Using workflows and user information, it recommends relevant items to customers based around their online behavior.

The overarching goal for retailers is to understand customers’ needs throughout the entire sales funnel. The most effective way to do this by implementing marketing automation within your e-commerce platform. For example, Shopify lets you profile customers, map their journey, market to them across digital channels, and provide a consistent shopping experience across multiple devices, online and in-store.

Personalization has become a staple in many e-commerce operations. In fact, a study by Gartner predicts by 2020, smart personalization engines used to recognize customer intent will enable businesses to increase their profits by up to 15%.

Basically, younger audiences want e-commerce companies to show them exactly what they want to see.

3. Transparency

Sales techniques have seen a huge shift as millennials gain spending power. Smartphones have literally given people all the information in the world in the palms of their hands. With this in mind, e-commerce brands need to come to terms with the fact that each buying decision will be well-researched.

“Millennials have changed the old retail model of price obfuscation, especially in online commerce,” says Jason Goldberg, VP of strategy at Razorfish. “They have grown up with transparency and information available to them at their fingertips, so brands have to design their business around transparency.”

Everlane, a luxury clothing store, is a prime example of how to use this concept in a business model. It openly promotes how all of its products are made, from A to Z, directly on its e-commerce website.

It doesn’t hide any manufacturing costs or warehouse details from the public. A lot of companies are known for relying on cheap labor, and the stigma around that helps get Everlane’s transparent approach into millennials’ good books.

Additionally, it maintains a strong social media presence that constantly reinforces its values. For example, it famously gives its audience behind-the-scenes glances at its factories in action via Snapchat. Using raw footage like this puts customers in a better state of mind about their purchases.

Transparency and authenticity are essential for gaining traction with millennials. It’s not just about what you sell anymore. It’s about how you promote it.

Parting words

Millennials are a fascinating group. Apart from the selfies and constant social media updates, they have a lot to offer in terms of digital consumerism. The truth of the matter is the online shopping landscape is incredibly crowded. Regardless of what products or services you provide, chances are there hundreds of other businesses working towards the same goals. Since millennials have been brought up in the middle of this reality, they have no problem looking around until they find an experience that really speaks to them. It’s up to you to differentiate yourself as a brand that meets them where they hang out.

For more on marketing to today’s consumers, see 5 Steps to Your Customer’s Heart with Emotionally Aware Computing.

Comments

About Tracy Vides

Tracy is a content marketer and social media consultant who works with small businesses and startups to increase their visibility. Although new to the digital marketing scene, Tracy has started off well by building a good reputation for herself, with posts featured on Steamfeed, Business 2 Community and elsewhere. Hit her up @TracyVides on Twitter.

The Future of Cybersecurity: Trust as Competitive Advantage

Justin Somaini and Dan Wellers

 

The cost of data breaches will reach US$2.1 trillion globally by 2019—nearly four times the cost in 2015.

Cyberattacks could cost up to $90 trillion in net global economic benefits by 2030 if cybersecurity doesn’t keep pace with growing threat levels.

Cyber insurance premiums could increase tenfold to $20 billion annually by 2025.

Cyberattacks are one of the top 10 global risks of highest concern for the next decade.


Companies are collaborating with a wider network of partners, embracing distributed systems, and meeting new demands for 24/7 operations.

But the bad guys are sharing intelligence, harnessing emerging technologies, and working round the clock as well—and companies are giving them plenty of weaknesses to exploit.

  • 33% of companies today are prepared to prevent a worst-case attack.
  • 25% treat cyber risk as a significant corporate risk.
  • 80% fail to assess their customers and suppliers for cyber risk.

The ROI of Zero Trust

Perimeter security will not be enough. As interconnectivity increases so will the adoption of zero-trust networks, which place controls around data assets and increases visibility into how they are used across the digital ecosystem.


A Layered Approach

Companies that embrace trust as a competitive advantage will build robust security on three core tenets:

  • Prevention: Evolving defensive strategies from security policies and educational approaches to access controls
  • Detection: Deploying effective systems for the timely detection and notification of intrusions
  • Reaction: Implementing incident response plans similar to those for other disaster recovery scenarios

They’ll build security into their digital ecosystems at three levels:

  1. Secure products. Security in all applications to protect data and transactions
  2. Secure operations. Hardened systems, patch management, security monitoring, end-to-end incident handling, and a comprehensive cloud-operations security framework
  3. Secure companies. A security-aware workforce, end-to-end physical security, and a thorough business continuity framework

Against Digital Armageddon

Experts warn that the worst-case scenario is a state of perpetual cybercrime and cyber warfare, vulnerable critical infrastructure, and trillions of dollars in losses. A collaborative approach will be critical to combatting this persistent global threat with implications not just for corporate and personal data but also strategy, supply chains, products, and physical operations.


Download the executive brief The Future of Cybersecurity: Trust as Competitive Advantage.


Comments

Tags:

How Digital Transformation Is Rewriting Business Models

Ginger Shimp

Everybody knows someone who has a stack of 3½-inch floppies in a desk drawer “just in case we may need them someday.” While that might be amusing, the truth is that relatively few people are confident that they’re making satisfactory progress on their digital journey. The boundaries between the digital and physical worlds continue to blur — with profound implications for the way we do business. Virtually every industry and every enterprise feels the effects of this ongoing digital transformation, whether from its own initiative or due to pressure from competitors.

What is digital transformation? It’s the wholesale reimagining and reinvention of how businesses operate, enabled by today’s advanced technology. Businesses have always changed with the times, but the confluence of technologies such as mobile, cloud, social, and Big Data analytics has accelerated the pace at which today’s businesses are evolving — and the degree to which they transform the way they innovate, operate, and serve customers.

The process of digital transformation began decades ago. Think back to how word processing fundamentally changed the way we write, or how email transformed the way we communicate. However, the scale of transformation currently underway is drastically more significant, with dramatically higher stakes. For some businesses, digital transformation is a disruptive force that leaves them playing catch-up. For others, it opens to door to unparalleled opportunities.

Upending traditional business models

To understand how the businesses that embrace digital transformation can ultimately benefit, it helps to look at the changes in business models currently in process.

Some of the more prominent examples include:

  • A focus on outcome-based models — Open the door to business value to customers as determined by the outcome or impact on the customer’s business.
  • Expansion into new industries and markets — Extend the business’ reach virtually anywhere — beyond strictly defined customer demographics, physical locations, and traditional market segments.
  • Pervasive digitization of products and services — Accelerate the way products and services are conceived, designed, and delivered with no barriers between customers and the businesses that serve them.
  • Ecosystem competition — Create a more compelling value proposition in new markets through connections with other companies to enhance the value available to the customer.
  • Access a shared economy — Realize more value from underutilized sources by extending access to other business entities and customers — with the ability to access the resources of others.
  • Realize value from digital platforms — Monetize the inherent, previously untapped value of customer relationships to improve customer experiences, collaborate more effectively with partners, and drive ongoing innovation in products and services,

In other words, the time-tested assumptions about how to identify customers, develop and market products and services, and manage organizations may no longer apply. Every aspect of business operations — from forecasting demand to sourcing materials to recruiting and training staff to balancing the books — is subject to this wave of reinvention.

The question is not if, but when

These new models aren’t predictions of what could happen. They’re already realities for innovative, fast-moving companies across the globe. In this environment, playing the role of late adopter can put a business at a serious disadvantage. Ready or not, digital transformation is coming — and it’s coming fast.

Is your company ready for this sea of change in business models? At SAP, we’ve helped thousands of organizations embrace digital transformation — and turn the threat of disruption into new opportunities for innovation and growth. We’d relish the opportunity to do the same for you. Our Digital Readiness Assessment can help you see where you are in the journey and map out the next steps you’ll need to take.

Up next I’ll discuss the impact of digital transformation on processes and work. Until then, you can read more on how digital transformation is impacting your industry.

Comments

About Ginger Shimp

With more than 20 years’ experience in marketing, Ginger Shimp has been with SAP since 2004. She has won numerous awards and honors at SAP, including being designated “Top Talent” for two consecutive years. Not only is she a Professional Certified Marketer with the American Marketing Association, but she's also earned her Connoisseur's Certificate in California Reds from the Chicago Wine School. She holds a bachelor's degree in journalism from the University of San Francisco, and an MBA in marketing and managerial economics from the Kellogg Graduate School of Management at Northwestern University. Personally, Ginger is the proud mother of a precocious son and happy wife of one of YouTube's 10 EDU Gurus, Ed Shimp.