Digital Disruption Is Marketing’s Moment

Donovan Guin

When companies begin their digital transformation, many bring on board a chief digital officer to help navigate the process. Once the entire operation has become digital, however, leadership responsibility transitions to other executives in the C-suite.

But someone still needs to set the direction. Who should do it? A growing number of executives recognize that they must put customers first in order to succeed in the digital era. For CEOs, the customer experience is a top priority, according to recent IBM research. And because CMOs are closest to what customers want, they are in the best position to shape a unified experience across channels. That explains why  CMOs are increasingly taking on the digital leadership role for the enterprise.

That can be a big leap for executives who have spent their careers in marketing. Indeed, the success of the transformation largely depends on whether CMOs have, or can acquire, the skills to tackle the challenge.

Architects of Change

A seamless, omnichannel digital customer experience includes all touchpoints, from marketing and sales to customer service. Yet many industries still operate these departments as silos, even though customers no longer engage with them in isolation, nor in a predictable order on the path to purchase, nor using a single channel. Marketing leaders must, therefore, be able to win support from a willing team of executives for their efforts to transform the customer experience.

Because the digital customer experience touches so many aspects of the enterprise, the CMO role must expand far beyond marketing strategy and corporate branding to encompass the entire customer journey from end to end. Two-thirds of marketing leaders now say their top priority is to develop deeper, richer customer experiences, according to our report, Redefining Markets: Insights from the Global C-suite Study — The CMO Perspective.

Guidance from the CMO is becoming crucial to help unify all members of the leadership team around a cohesive vision for their company’s digital customer engagement strategy. To develop and execute that vision, CMOs must become architects of change. CMOs who are most successful as transformation leaders—the study calls them Torchbearers—are focused on three key initiatives:

  • Rethinking every business function through the lens of the customer. Torchbearer CMOs challenge colleagues in every function of the organization to demolish internal silos and present a consistent customer experience.
  • Infusing “digital DNA” into the organization. They hire staff or consultants with the needed skill sets. And they involve partners and customers—who have great skills, ideas, and expertise too—as co-creators and innovators. Torchbearer CMOs are more likely than market followers to be focused on collaborating with customers.
  • Using data-driven decision making to deliver personal, relevant, and timely customer experiences. They are harnessing vast amounts of data from digital interfaces to continually refresh their insights about what customers want so they can take action to differentiate themselves from competitors.

This is a lot for marketing leaders to take on, but most embrace the additional responsibility. More than half (54%) of CMOs who responded to the IBM survey say they are prepared to manage the increasing complexity of the marketing mandate. But in order to fulfill their digital leadership mandate, some CMOs may need to expand their skills.

Skills of a Transformation Leader

CMOs are embracing digital business. They report they are better prepared to address key marketing challenges, including the explosion of data, the rise of social media, and shifting consumer demographics. In addition, we found that the marketing executives who have been most successful in a digital leadership role—our Torchbearers—have a holistic business perspective and the skills to match. Compared to market followers, these transformation leaders are:

  • Hyperconnected. Torchbearer CMOs are plugged into every aspect of the business that relates to the customer.
  • Strategic. They are knowledgeable about what motivates internal stakeholders and can engage with them in different ways to get buy-in at all levels of the company.
  • Relationship-focused. Digital disruption is creating ecosystems in which partners bring solutions to market—for example, the way telecommunications vendors, device makers, and content providers team to sell smartphones and subscriptions to video streaming services. Torchbearers are more likely to experiment with different types of collaborative business models.
  • Open-minded. They listen closely to customers, employees, and partners and apply their input when creating new services or offerings.
  • Tech-savvy. Torchbearers are more confident about their ability to deal with the data explosion. They understand the benefits of using data in decision making, and they stay up to speed on the potential uses of predictive analytics, prescriptive analytics, and cognitive computing.

Driving Digital Innovation

With the right skills and a strategic mindset, CMOs can be effective digital leaders. Today’s marketing executives need not only strong knowledge of marketing and digital technology but also a keen understanding of how commerce works. They must put the customer experience at the center of everything they do and view the company through the eyes of the customer.

Add a capable team, and innovative marketing leaders can successfully steer their company through the digital transformation journey. CMOs, are you up to the challenge? D!

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Donovan Guin

About Donovan Guin

Donovan Guin leads the Center of Excellence for SAP Hybris in IBM GBS. He has more than 20 years of experience in the digital space and e-commerce across a wide range of industries and markets.

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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Sunny Popali

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.

Compelling Shopping Moments: 4 Creative Ways Stores Connect With Their Customers

Ralf Kern

compelling shopping momentsOn a recent morning, as I was going through my usual routine, my coffeemaker broke. I cannot live without coffee in the morning, so I immediately looked up my coffeemaker on Amazon and had it shipped Prime in one day. My problem was solved within minutes. My Amazon app, and my loyalty account with that company, was there for me when I needed it most.

It was in this moment that I realized the importance of digital presence for retailers. There is a chance that the store 10 minutes from my house carries this very same coffeemaker; I could have had it in one hour, instead of one day. But the need for immediate access to information pushed me to the online store. My local retailer was not able to be there for me digitally like Amazon.

Retail is still about reading the minds of your customers in order to know what they need and create a flawless experience. But the days of the unconnected shopper in a monochannel world are over. I am not alone in my digital-first mindset; according to a recent MasterCard report, 80% of consumers use technology during the shopping process. I, and consumers like me, use mobile devices as a guide to the physical world.

We don’t need to have an academic discussion about multichannel, omnichannel, and omnicommerce and their meanings, because what it really comes down to for your consumers, or fans, is shopping. And shopping has everything to do with moments in your customers’ lives: celebration moments, in-a-hurry moments, I-want-to-be-entertained moments, and more. Most companies only look for and measure very few moments along the shopping journey, like the moment of coupon download or the moment of sales.

Anticipating these moments was easier when mom and pop stores knew their customers by name. They knew how to be there for their shoppers when, where, and how they wanted it. And shoppers didn’t have any other options. Now it is crucial for companies to understand all of these moments and even anticipate or trigger the right moments for their customers.

In today’s digital economy the way to achieve customer connection is with simple, enjoyable, and personalized front ends that are supported by sophisticated, digital back ends. Then you can use that system to support your customer outreach.

Companies around the world are using creative and innovative methods to find their customers in various moments. Being there for customers comes in many different shapes and forms. Consider these examples:

Chilli Beans

A Brazilian maker of fashion sunglasses, glasses, and watches, Chilli Beans has a loyal following online and at over 700 locations around the world. Chilli Beans keeps its customers engaged by releasing 10 limited-edition styles each week. If customers like what they see, they have to buy fast or risk missing out.

Bonobos

Online men’s fashion retailer Bonobos reaches its customers with its Guide Shops. While they look like traditional retail outlets, the shops don’t actually sell any clothes. Customers come in for one-on-one appointments with the staff, and if they like anything that they try on, the staff member orders it for them online and it is shipped to their house. The 20 Guide Shops currently open have proven very successful for the company.

Peak Performance

Peak Performance, a European maker of outdoor clothing, has added a little magic to its customer experience. It has created virtual pop-up shops that customers can track on their smartphones through CatchMagicHour.com, and they are only available at sunrise and sunset at exact GPS locations. Customers who go to the location, be it at a lighthouse or on top of a mountain, are rewarded with the ability to select free clothing from the virtual shop that they have unlocked on their phones.

Shoes of Prey

The customer experience is completely custom at Shoes of Prey, a website where women can design custom shoes. From fabric to color, the customer picks every element, and then her custom creation is sent directly to her house. Shoes of Prey has even shifted its business model based on customer feedback. Its customers wanted to get inspiration and advice in a physical store. So Shoes of Prey made the move from online-only to omnicommerce and has started to open stores around the world.

While the customer experience for each of these connections is relatively simple – a website, a smartphone, an online design studio – the back end that powers them has to be powerful and nimble at the same time. These sophisticated back ends – powering simple, enjoyable, and personalized front ends – will completely change the game in retail. They will allow companies to engage their customers in ways we can’t even begin to imagine.

Technology will help you be there in the shopping moment. The best technology won’t annoy your customers with irrelevant promotions or pop-up messages. Instead, like a good friend, it will know how to engage with customers and when to leave them alone – how to truly connect with customers instead of manage them. Consequently, customer relationship management as we know it is an outdated technology in the economy of today – and tomorrow. Technologies that go beyond CRM will help retailers to differentiate. Aligning your organization and those technologies will be the Holy Grail to creating true and sustainable customer loyalty.

Learn more ways that business will never be the same again. Learn 99 Mind-Blowing Ways The Digital Economy Is Changing The Future Of Business.

Find out how SAP can help you go beyond CRM and support your retail business.

Ralf Kern is Global Vice President Retail for SAP and a retail ambassador for SAP. Interested in your feedback. You can also get in touch on Twitter or LinkedIn

This blog also appeared on SAP Customer Network.

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Ralf Kern

About Ralf Kern

Ralf Kern is the Global Vice President, Business Unit Retail, at SAP, responsible for the future direction of SAP’s solution and global Go-to-Market strategy for Omnicommerce Retail, leading them into today’s digital reality.

Diving Deep Into Digital Experiences

Kai Goerlich

 

Google Cardboard VR goggles cost US$8
By 2019, immersive solutions
will be adopted in 20% of enterprise businesses
By 2025, the market for immersive hardware and software technology could be $182 billion
In 2017, Lowe’s launched
Holoroom How To VR DIY clinics

Link to Sources


From Dipping a Toe to Fully Immersed

The first wave of virtual reality (VR) and augmented reality (AR) is here,

using smartphones, glasses, and goggles to place us in the middle of 360-degree digital environments or overlay digital artifacts on the physical world. Prototypes, pilot projects, and first movers have already emerged:

  • Guiding warehouse pickers, cargo loaders, and truck drivers with AR
  • Overlaying constantly updated blueprints, measurements, and other construction data on building sites in real time with AR
  • Building 3D machine prototypes in VR for virtual testing and maintenance planning
  • Exhibiting new appliances and fixtures in a VR mockup of the customer’s home
  • Teaching medicine with AR tools that overlay diagnostics and instructions on patients’ bodies

A Vast Sea of Possibilities

Immersive technologies leapt forward in spring 2017 with the introduction of three new products:

  • Nvidia’s Project Holodeck, which generates shared photorealistic VR environments
  • A cloud-based platform for industrial AR from Lenovo New Vision AR and Wikitude
  • A workspace and headset from Meta that lets users use their hands to interact with AR artifacts

The Truly Digital Workplace

New immersive experiences won’t simply be new tools for existing tasks. They promise to create entirely new ways of working.

VR avatars that look and sound like their owners will soon be able to meet in realistic virtual meeting spaces without requiring users to leave their desks or even their homes. With enough computing power and a smart-enough AI, we could soon let VR avatars act as our proxies while we’re doing other things—and (theoretically) do it well enough that no one can tell the difference.

We’ll need a way to signal when an avatar is being human driven in real time, when it’s on autopilot, and when it’s owned by a bot.


What Is Immersion?

A completely immersive experience that’s indistinguishable from real life is impossible given the current constraints on power, throughput, and battery life.

To make current digital experiences more convincing, we’ll need interactive sensors in objects and materials, more powerful infrastructure to create realistic images, and smarter interfaces to interpret and interact with data.

When everything around us is intelligent and interactive, every environment could have an AR overlay or VR presence, with use cases ranging from gaming to firefighting.

We could see a backlash touting the superiority of the unmediated physical world—but multisensory immersive experiences that we can navigate in 360-degree space will change what we consider “real.”


Download the executive brief Diving Deep Into Digital Experiences.


Read the full article Swimming in the Immersive Digital Experience.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Blockchain: Thoughts On The "Next Big Thing"

Ross Doherty

Many people associate blockchain with bitcoin—which is, at least for today, the most common application to leverage blockchain. However, when you dig a little deeper and consider the core concepts of blockchain—distribution, consensus achieved by algorithm rather than opinion, cryptographically secure, private—you start to think about how these aspects can be applied, both technically and strategically, to solve problems simple and  complex. Blockchain is neither a product nor a system – instead, it is a concept.

Blockchain applications disrupt conventional thinking and conventional approaches regarding data processing, handling, and storage. First we had the “move to the cloud,” and many were cautious and even frightened of what it meant to move their systems, infrastructure, and data to a platform outside their organization’s four walls. Compound this with blockchain in its purest form—a distributed and possibly shared resource—and you can see why many may be reluctant.

My sentiment, however, is a little different. Creating a solid basis that harnesses the concepts of blockchain with sufficient thought leadership and knowledge-sharing, along with a pragmatic and open-minded approach to problem-solving, can lead to innovative and disruptive outcomes and solid solutions for customers. Blockchain should not be feared, but rather rationalized and demystified, with the goal of making it someday as ubiquitous as the cloud. Blockchain should not be pigeonholed into a specific industry or use case—it is much more that, and it should be much more than that.

Grounding ourselves momentarily, allow me to relay some ideas from both within the enterprise and customers regarding possible use cases for blockchain technology: From placing blockchain at the core of business networks for traceability and auditability, to a way for ordinary people to easily and cheaply post a document as part of a patent process; a way to counteract bootlegging and counterfeiting in commodity supply chain, a way to add an additional layer of security to simple email exchange; from electronic voting systems through to medial record storage. The beauty of blockchain is that its application can scale as big as your imagination allows.

Blockchain is not the staple of the corporate, nor is it limited to grand and expansive development teams—most of the technology is open source, public, and tangible to everyone. It is not an exclusive or expert concept, prohibitive in terms of cost or resource. Blockchain is a new frontier, largely unmined and full of opportunity.

In closing, I invite you to invest some time to do what I did when I first encountered the concept and needed to better understand it. Plug “Blockchain explained simply” (or words to that effect) into your preferred search engine. Find the article that best speaks to you—there are plenty online. Once you get it (and I promise you will) and experience your “eureka!” moment, start to think how blockchain and its concepts might help you solve a business or technical problem.

For more insight on blockchain, see Blockchain’s Value Underestimated, Despite The Hype.

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Ross Doherty

About Ross Doherty

Ross Doherty is a manager in the SAP Innovative Business Solutions team, based in Galway, Ireland. Ross’s team’s focus is in the domain of Business Networks and Innovation. Ross is proud to lead a talented and diverse team of pre-sales, integration, quality management, user assistance and solution architects, and to be serving SAP for almost 4 years.