tag:econsultancy.com,2008:/topics/data-analytics Latest Data & Analytics content from Econsultancy 2017-05-25T10:41:00+01:00 tag:econsultancy.com,2008:BlogPost/69114 2017-05-25T10:41:00+01:00 2017-05-25T10:41:00+01:00 How Subaru uses a data-driven marketing strategy to target customers Nikki Gilliland <p>Led by Iain Lovatt from BlueVenn, it was all about Subaru’s <a href="https://econsultancy.com/blog/68822-where-is-data-driven-marketing-headed-in-2017/" target="_blank">data-driven marketing</a> strategy. More specifically, how the automotive brand uses data to create an emotive and personalised customer experience. Here are a few key takeaways.</p> <h3>Utilising actionable data </h3> <p>One of the main talking points of the whole conference was the importance of using all types of data. Or rather, not being limited to a certain kind. </p> <p>Hard data, such as gender or age demographic, is obviously helpful for gaining general insight into the consumer. Soft data, meanwhile - things like personal preference or opinion - is equally important for fleshing it out.</p> <p>While this is a good basis, actionable data is what ultimately helps to drive and inform real-time marketing. For Subaru, this type of data might involve how often a consumer is browsing the website or what type of car they’re looking at. </p> <p>By taking all this data into consideration (and from all sources), Subaru can build a <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/" target="_blank">single customer view</a>. This enables the brand to treat all consumers as individuals rather than large segments, meaning they are able to deliver more timely and relevant content based on real-time needs and desires.  </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Need a car that can go the distance? The average Subaru will clock up 200,000 miles in its lifetime. Find out more: <a href="https://t.co/wcT8TnyyvE">https://t.co/wcT8TnyyvE</a> <a href="https://t.co/9ZM1dW8Ppx">pic.twitter.com/9ZM1dW8Ppx</a></p> — Subaru UK (@subaruuk) <a href="https://twitter.com/subaruuk/status/864579942541131776">May 16, 2017</a> </blockquote> <h3>Creating relevancy</h3> <p>So, how exactly does Subaru deliver this?</p> <p>One thing that has dramatically helped the brand has been its decision to centralise and combine both online and offline marketing data. </p> <p>Let’s take Tomas - an example Subaru customer that might have first been identified via online browsing behaviour. While using this data might help to inform <a href="https://econsultancy.com/blog/69015-three-key-findings-from-the-2017-email-marketing-census/" target="_blank">relevant email targeting</a> – it also means that Tomas would be treated entirely differently if he were to visit an offline dealership. </p> <p>On the other hand, Tomas’s offline persona would not be taken into consideration online either.</p> <p>The solution for Subaru has been to create a unified customer-base that integrates dealership information with online data. This has enabled the company to tailor email newsletters based on exactly where the customer is in their journey, as well as monitor customer behaviour and satisfaction levels.</p> <p>Ultimately, marketing becomes all the more relevant as the customer further engages with the brand – regardless of the channel or how fragmented their path to purchase is.</p> <h3>Turning test drives into sales</h3> <p>Alongside general customer satisfaction, Subaru has seen a marked increase in conversion rates as a result of its multichannel data-driven strategy. The number of enquiries leading to test drives has risen by a factor of 3.2.</p> <p>With the experience of buying a car being highly based on both senses and emotion - involving everything from the sound of the engine to that new car smell – test drives are a hugely important factor.</p> <p>Of course, encouraging test drives is not enough. By using data insight to match consumers with the <em>right</em> car – one that suits their specific lifestyle, budget and needs – Subari has managed to increase the number of test drives leading to sales by a factor of 1.6.</p> <p>This shows that data-driven marketing is not only about attracting and engaging customers in the first place, but using data to deliver a more rounded and emotive experience across the board.</p> <p><img src="https://assets.econsultancy.com/images/0008/6351/Subaru_test_drive.JPG" alt="" width="780" height="346"></p> <h3>What does the future hold for the automotive industry?</h3> <p>Iain finished by asking what the future of the automotive industry might look like. From driverless cars to telematics, there’s no doubt that data will be at its core. </p> <p>Last year, the company partnered with IBM to explore the idea of a data analytics solution involving Subaru’s ‘EyeSight’ driver assistance system – a feature that uses stereo cameras to detect other vehicles and pedestrians. The end result could be the creation of a ‘connected car’ network that shares and communicates data between cars and control centres. </p> <p>Whether or not it actually comes to fruition, Subaru insists that – much like its use of data in marketing – technology will always be built around how it can truly benefit and enhance the customer experience.</p> <p><em>(Ad for the Subaru Impreza with EyeSight)</em></p> <p><iframe src="https://www.youtube.com/embed/pprehPwyCgU?wmode=transparent" width="854" height="480"></iframe></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/67877-how-automotive-brands-are-blurring-the-lines-between-digital-reality/">How automotive brands are blurring the lines between digital &amp; reality</a></em></li> <li><em><a href="https://econsultancy.com/blog/67700-what-can-automotive-brands-learn-from-the-tesla-website/">What can automotive brands learn from the Tesla website?</a></em></li> <li><em><a href="https://econsultancy.com/blog/69053-how-maserati-uses-influencers-to-drive-its-instagram-strategy/">How Maserati uses influencers to drive its Instagram strategy</a></em></li> </ul> tag:econsultancy.com,2008:Report/4472 2017-05-24T15:00:00+01:00 2017-05-24T15:00:00+01:00 Digital Intelligence Briefing: 2017 Digital Trends in the Technology Sector <p>The <strong>2017 Digital Trends in the Technology Sector </strong>report demonstrates that organisations within the sector that is transforming many others are leaders in digital integration, but are having to transform their internal structures and strategies to adapt to changing customer demands and behaviours, putting the customer first rather than the product.</p> <p>The research, conducted by Econsultancy in partnership with <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, is based on a sample of over 900 respondents working in the technology sector who were among more than 14,000 digital professionals taking part in the seventh annual Digital Trends survey, carried out in November and December 2016.</p> <h3>The following sections are featured in the report:</h3> <ul> <li>Technology organisations lead in digital maturity</li> <li>The customer takes centre stage</li> <li>The next wave of tech innovation</li> <li>Actionable tips to help future-proof your technology business</li> </ul> <h3>Findings include:</h3> <ul> <li>Organisations in the technology sector are nearly twice as likely as their peers in other sectors to classify themselves as digital-first (19% vs. 10%), putting the sector in third place (after gaming &amp; gambling and media) out of the 15 key sectors we analysed.</li> <li>Tech organisations appear to be prepared for the challenge presented by a rapidly changing industry; across the eight key factors identified for digital success, technology organisations are ahead of other sectors. UX design is one of the areas they excel in, as they’re 23% more likely to say they have ‘well-designed user journeys that facilitate clear communication and a seamless transaction’.</li> <li>The vast majority (81%) of technology companies are putting the customer at the heart of all their initiatives, and customer journey management is the second most important priority for 2017, closely followed by targeting and personalisation.</li> <li>Almost a third (29%) of tech companies are planning to use product/service innovation to differentiate themselves from competitors over the next year. Digital-first organisations reveal their maturity as they are 52% more likely than the rest to see customer experience as a key differentiator, second behind product/service innovation.</li> </ul> <p><strong>Econsultancy's Digital Intelligence Briefings, sponsored by <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, look at some of the most important trends affecting the marketing landscape. </strong><strong>You can access the other reports in this series <a title="Econsultancy / Adobe Quarterly Digital Intelligence Briefings" href="http://econsultancy.com/reports/quarterly-digital-intelligence-briefing">here</a>.</strong></p> tag:econsultancy.com,2008:BlogPost/69072 2017-05-11T13:20:00+01:00 2017-05-11T13:20:00+01:00 Why DMPs must be deeply integrated in tomorrow's marketing stack Chris O'Hara <p>This is a fast-moving trend in which companies are licensing large enterprise stacks and using systems integrators to manage all marketing—not just online advertising.</p> <p>As detailed in Ad Age (<a href="http://adage.com/article/digital/market/308666/">Marketing clouds loom</a>), the days of turning to an agency trade desk or demand side platform (DSP) to manage the “digital” portions of advertising are fading rapidly as marketers are intent on having technology that covers more than just advertising.</p> <h3>Building consumer data platforms</h3> <p>A few years ago, a good “stack” might have been a connected DMP, DSP and ad server. A really good stack would feature a viewability vendor and start a dynamic creative optimization (DCO). The focus then was on optimizing for the world of programmatic buying and getting the most out of digital advertising as consumers’ attention shifted online, to mobile and social, rather than television. </p> <p>Fast forward a few years, and the conversations we are having with marketers are vastly different. As <a href="https://adexchanger.com/data-exchanges/dmp-adoption-rise-challenges-remain/">reported in AdExchanger</a>, more than 40% of enterprise marketers license a DMP, and another 20% will do so within the next 12 months. DMP owners and those in the market for one are increasingly talking about more than just optimizing digital ads. They want to know how to put email marketing, customer service and commerce data inside their systems. They also want data to flow from their systems to their own data lakes.</p> <p>Many are undertaking the process of building internal consumer data platforms (CDPs), which can house all of their first-party data assets—both known and pseudonymous user data. </p> <p>We are moving beyond ad tech. Quickly. </p> <p>Today, when those in the market are considering licensing a “DMP” they are often thinking about “data management” more broadly. Yes, they need a DMP for its identity infrastructure, ability to connect to dozens of different execution systems and its analytical capabilities. But they also need a DMP to align with the systems they use to <a href="https://econsultancy.com/blog/68639-how-crm-and-a-dmp-can-combine-to-give-a-360-degree-view-of-the-customer/">manage their CRM data</a>, email data, commerce systems, and marketing automation tools.</p> <p>Data-driven marketing no longer lives in isolation. After I acquire a “luxury sedan intender” online, I want to retarget her—but I also want to show her a red sedan on my website, e-mail her an offer to come to the dealership, serve her an SMS message when she gets within range of the dealership to give her a test drive incentive, and capture her e-mail address when she signs up to talk to a salesperson. All of that needs to work together.</p> <h3>Personalization demands adtech and martech come together </h3> <p>We live in a world that demands Netflix and Amazon-like instant gratification at all times. It’s nearly inconceivable to a Millennial or Generation Z if a brand somehow forgets that they are a loyal customer because they have so many choices and different brands that they can switch to when they have a bad experience.</p> <p>This is a world that requires adtech and martech to come together to provide personalized experiences—not simply to create more advertising lift, but as the price of admission for customer loyalty. </p> <p>So, when I am asked, what is the future of DMPs, I say that the idea of licensing something called a “DMP” will not exist in a few years.</p> <p>DMPs will be completely integrated into<a href="https://econsultancy.com/blog/68952-a-recipe-for-the-martech-layer-cake/"> larger stacks</a> that offer a layer of data management (for both known and unknown data) for the “right person;” an orchestration layer of connected execution systems that seek to answer the “right message, right time” quandary; and an artificial intelligence layer, which is the brains of the operation trying to figure out how to stitch billions of individual data points together to put it all together in real time.</p> <p>DMPs will never be the same, but only in the sense that they are so important that tomorrow’s enterprise marketing stacks cannot survive without integrating them completely, and deeply.</p> tag:econsultancy.com,2008:BlogPost/69065 2017-05-10T13:30:00+01:00 2017-05-10T13:30:00+01:00 Five advanced data and segmentation tactics for marketing and sales Jordie van Rijn <p>How can marketing effectively play a bigger role in qualifying the leads that are passed on to sales? By scoring those leads and using segmentation.</p> <p>However, one of the key <a href="https://econsultancy.com/blog/69015-three-key-findings-from-the-2017-email-marketing-census/">findings of the email marketing census</a> this year is that advanced segmentation at scale remains elusive for many businesses. While 78% of senders are doing basic segmentation, only one-third are doing advanced segmentation.</p> <p>As far as leading scoring, 29% are scoring their leads while another 25% are only in the planning stages.</p> <p><img src="https://assets.econsultancy.com/images/0008/5928/segmentation-email-census.png" alt="" width="573" height="353"></p> <p>Segmentation is an effective marketing and sales tactic. One could say that lead scoring is segmentation - we divide our contacts into groups based on their lead score.</p> <p>How can we use segmentation and customer data to bridge the qualification gap and identify the ideal next action? Here are five tips.</p> <h3>1. Set up a segmentation model based on the end result</h3> <p>Segmentation is of little use if you don’t use it. And the best way to use it is to be strategic about it, by starting with the end when you set up your segmentation model.</p> <p>Determine what you want your marketing campaigns to accomplish and work backwards from those goals. When your goal is re-activating lapsed customers, for instance, think about which segments are high value. This means “save-able” versus simply “lost and good riddance”. Then look at which are likely to churn. That might seem like a crude approach, but now you have a starting point from which to gather the data during the relationship to get the segmentation and timing right.</p> <h3>2. Identify the funnel stage</h3> <p>Ask leads where they are in the buying process. A newsletter registration is a good time to do so. For example, a car dealership should always ask about the timeframe within which someone is planning to buy. This helps you gauge how far they <a href="https://blog.pipedrive.com/2017/04/customer-journey-sales-success/">are down the sales funnel and customer journey</a>. You can then match up your actions and content with that stage.</p><p>This also helps you use your content more effectively. Review your assets and ask, in which buying stage does this particular piece of content sit? To which prospects does it appeal and how can it help move him or her to the next stage? That sounds like an advanced tactic, but realize it can be a filter for your lead scoring: you know whom should get an offer for a test-drive vs. a brochure vs. someone who should get a call within a few days.</p> <p>This tactic also helps a company become intentional about messaging, reserving the more costly forms of contact for the higher value and hotter prospects. In situations where a lead is identified as “hot” and “high value,” you might even consider <a href="https://blog.leadfeeder.com/best-sales-follow-up-techniques-emails/">manually writing follow-up emails</a>, as opposed to automating them. The personal touch can go a long way, and your leads will feel the difference.</p> <h3>3. Know one bit of data says a lot about another</h3> <p>Psychographics tell you about lifestyle, interests, opinions, etc., but remember that one piece of data can hold a lot of information about all of those. You can safely assume that a 65-year-old engineer will have very different interests and need for knowledge than an office manager who is just starting out. That means you can derive some information from data you already have.</p> <p>As an example, consider the home address as a data point. You can deduct a lot from an address, such as income level, life stage, climate and weather, and even if they will potentially be interested in what you’re selling. From what I call the <a href="http://www.emailmonday.com/smart-email-marketing-segmentation-the-art-of" target="_blank">pillars of segmentation</a>, a home address has a predictive power to inform information in demographics, psychographics and even behavioral information (like benefits sought or usage intensity).</p> <p><img src="https://assets.econsultancy.com/images/0008/5931/pillars-emailmonday.jpg" alt=""></p> <h3>4. Be wary of self-reported data</h3> <p>Although it seems like it should be 100% factual, data doesn’t always offer absolute truths, especially for self-reported preference data. If you ask for brand preferences, customers will often point towards the more luxurious brands or ones <em>they like but won’t buy</em>. When buying time comes, they will still go for the economical brand. They like the pizza from that fancy little family owned restaurant, yet they buy the frozen stuff instead.</p> <p>People will tell you one thing, then go do another. Do they simply change their minds? No, they are simply doing what people do. We can blame part of it on flawed self-assessment and what is called the “<a href="https://en.wikipedia.org/wiki/Illusory_superiority#Driving_ability" rel="nofollow" target="_blank">above average effect</a>”. For example, a study found that 93% of US drivers rated themselves as better than the average driver. (If you’ve ever driven in the US, you know this can’t possibly be true.) It is human nature to perceive ourselves as the better version of ourselves.</p> <p><img src="https://assets.econsultancy.com/images/0008/5932/better-than-average.jpg" alt=""></p> <p>So ask your questions wisely. One way to improve is to ask about a customer’s buying or past behavior instead of preferences. A combination of data points will always give you a more accurate view. You can also test how accurate the self-reported brand preferences are. Look at your own database and where self-reported preferences and behavior overlap or contradict.</p> <h3>5. Make sure you can identify your audience across multiple touchpoints.</h3> <p>I know omni-channel is the hot term, but every time I see a 360-degree-customer-view presentation or blog post, a cynical part of me thinks, “Yeah, lame”. Those blogs and presentations seem to be made to make marketers feel bad about their data silos.</p> <p>Software vendors and consultants state, “the industry is doing so bad” and push (a part of) their audiences into a fantasy-state using case studies. The reality is, there is no such thing as a 360 degree customer view. It can be at most 180 degrees, as it will only be the part that customers are letting you see.</p><p>Practical marketers will piece together customer behavior across multiple points to get the biggest possible view. Your email marketing, website, search engine advertising, social marketing, in-store promotions, etc. can all be brought together, allowing you to gather more information across those touchpoints as well as do segmentation at those touchpoints.</p> <p>An identifier like a home address, email, customer number or browser cookie can tie it together. In fact, an email address works well as a universal ID, as email software systems can tie the email address to site behavior for you automatically. The software can carry over the ID from the email you sent through a click-through to the website.</p> <p>A practical use is retargeting in search advertising (often found very effective). These systems can even store anonymous profiles of website behavior and later tie them together. If all of that is done in real-time, it is fancily called a <a href="http://www.emailvendorselection.com/why-a-customer-data-platform-cdp-will-be-the-next-evolution-of-your-marketing-automation/" target="_blank">customer data platform</a>, a fairly new term and something every marketer should read up on.</p> <h3>Conclusion</h3> <p>With marketing being pulled into what used to be the domain of sales, it is a challenge to pass over quality leads to sales and generate the content or offer on the spot.</p> <p>However, if you can start with the end in mind, identify the funnel stage, make sure to use the hidden information in your data set, trust the data you know to be true, and create a bigger picture view of each customer, you will be well on your way to bridging that prospect knowledge gap.</p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68431-how-to-combine-attribution-and-segmentation-data-to-achieve-marketing-success/">How to combine attribution and segmentation data to achieve marketing success</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69076 2017-05-09T16:24:01+01:00 2017-05-09T16:24:01+01:00 Digital transformation heats up in FSI as leaders compete for future Stefan Tornquist <p>Where appropriate, the study’s findings are broken down by subsector and success in digital transformation, comparing marketing <strong><em>leaders</em></strong> with the <strong><em>mainstream</em></strong> to identify current tensions and future trends.</p> <h3><strong>FSI leaders are competing for the future</strong></h3> <p>If you are a digital leader, your organization is looking ahead, and sees competition coming from newer players. That’s driving priorities in growing the client base today and providing a consistent, high-quality customer experience to support growth. </p> <p>For the mainstream, however, the immediate path to growth is through current customers, reaping easier rewards while trying to address digital shortfalls.</p> <p>This difference between forward thinking companies and their peers underlies many of the study’s findings; leaders are already focused on the future, while the mainstream is mired in legacy thinking and technology.</p> <p>Accordingly, there’s a marked difference in how digital leaders and mainstream companies in FSI see their greatest competitive threats over the next two years; leaders are much more likely to be conscious of competition from the <em>new economy giants</em> such as Google, Microsoft, Apple and <em>startups</em> providing seamless, quick, and cheap services.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/resized/0008/5965/blog_chart-blog-flyer.png" alt="" width="470" height="341"></p> <p>Almost half of digital leaders (49%) say that competition from the new economy is their greatest competition, compared to 29% of mainstream respondents.</p> <h3>Digital’s impact on sales is increasing rapidly</h3> <p>In planning, the lines between digital and offline marketing are fading, but they’re still distinct in most budgets. The vast majority of digital budgets are expected to rise in 2017, and their growth continues in the double digits. The average increase cited is 15% by mainstream companies and nearly double that rate (27%) by leaders.</p> <p>Digital’s impact on sales is also on the rise, both direct and influencing, with roughly one-third of sales today ascribed to digital channels.</p> <h3>Leaders see data as the key to winning with experience</h3> <p>The ability to manage customer data for first party advertising, partner marketing and customer experience management will be an important lever for growth in coming years, and leaders are better positioned to pull it.</p> <p>Half of leading companies have deployed a <a href="https://econsultancy.com/blog/68639-how-crm-and-a-dmp-can-combine-to-give-a-360-degree-view-of-the-customer/">data management platform</a>, nearly 60% more than the mainstream. Looking ahead, a quarter of leaders who haven’t already done so have targeted DMPs as a priority area for 2017, compared to only 14% of the mainstream. </p> <p>Personalized experiences are a goal across sectors and companies, but barriers vary. Mainstream companies are still most likely to run up against IT and security concerns. Leading companies aren’t immune to these, but are just as likely to be focusing on structure and political issues, citing channel ownership as a key challenge.</p> <h3>The cloud has arrived, with AI on the horizon</h3> <p>Leaders are significantly outpacing their peers in implementing cloud solutions; they are 44% more likely to be using cloud marketing platforms and 40% more likely to have moved internal systems and operations to the cloud. Most striking, they are 89% more likely to have moved product backend systems there, allowing a more flexible approach to a rapidly evolving customer experience.</p> <p>More than half of FSI leaders say that they’ve implemented artificial intelligence in some customer-facing areas. Among the subsectors, retail banking leads, with over one-third of respondents having an active AI initiative, and 45% describing it as a high priority in 2017. Insurance and investment lag significantly; more than half of these companies say that it’s not a near-term priority.</p> <p><strong><em>Also in the State of Digital Transformation in Financial Services </em></strong></p> <ul> <li>What are the top technology investment priorities in financial services?</li> <li>What are the top areas of innovation in retail banking?</li> <li>How does the industry see the impact of mobile on sales today and in three years?</li> <li>What is the role of digital in enabling human advisors?</li> <li>How does digital maturity differ by financial service sector?</li> </ul> <p><em>Subscribers can access the <a href="https://econsultancy.com/reports/digital-transformation-in-financial-services-and-insurance-2017">full report</a> as well as our recent Digital Intelligence Briefing: <a href="https://econsultancy.com/reports/2017-digital-trends-in-financial-services-and-insurance">2017 Digital Trends in FSI</a>, in partnership with Adobe. These studies are also complemented by a <a href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium">new addition</a> to the Statistics Compendium Series that is focused entirely on the sector.</em></p> tag:econsultancy.com,2008:BlogPost/69067 2017-05-09T15:03:00+01:00 2017-05-09T15:03:00+01:00 Research: Three ways leading marketers are using measurement to grow Stefan Tornquist <p dir="ltr">To gain a perspective on where marketing is today and where it’s headed, respondents have been divided into two groups (leaders vs. the mainstream) based on performance. Leading companies significantly exceeded their top 2016 business goal and comprise roughly one-fourth of the sample. The remaining 75% are designated the mainstream for comparison.</p> <p>Throughout the research, the differences between these groups are significant and educational; leaders are consistently further along in building organizations that are data-driven, focused on larger business goals and committed to customer experience as a path to growth.</p> <h3>#1: First party data is the key to customers’ hearts (and to modern marketing)</h3> <p>Consumers have enormous choice and little patience, and both trends will only accelerate as artificial intelligence is woven into supply chains and the fabric of customer experience.</p> <p>A model that’s built on experience depends on first-party customer data. It’s the only way of knowing what an individual wants today and building a picture of who they are over time. That picture is what makes it possible to predict the lifetime value of that customer and to segment them effectively.</p> <p>First party data unlocks the preferences necessary for excellent service, as well as enabling more advanced merchandising based on the customer’s profile. For example, is the individual a loyal or VIP customer? These groups are responsible for an outsized ROI and a significantly higher customer lifetime value, and should be treated differently than an itinerant bargain seeker.</p> <p>Leading marketers are already sold;<strong> they are 58% more likely than the mainstream to strongly agree that first-party data is a strategic asset that informs their decision-making (57% vs. 36%)</strong></p> <p>First-party data provides the opportunity for a more direct relationship with customers and the ability to personalize experiences and that leads to an improvement on the bottom line. Of the organizations that invest in personalized consumers experiences, 41% strongly agree that personalization significantly contributes to increased profitability.</p> <h3><strong>#2 Measure for business outcomes</strong></h3> <p>Investor reports mention revenues and profit as a matter of course, but they seldom feature media metrics such as Cost Per Acquisition or Return on Advertising Spend.</p> <p>The bottom line should always be the goal in measurement, but arcane metrics, gaps in data and siloed technology keep many companies from tying marketing investments with the KPIs that matter to the larger business.</p> <p>At the same time, marketers can’t (and shouldn’t) trade their metrics for a new set that can’t be collected reliably or doesn’t provide efficient feedback. Business metrics can lag, particularly where purchase cycles are long (e.g. automotive) or where consumers typically need to complete their purchase through a partner (e.g. CPG).</p> <p>The answer for many organizations is to tie media metrics with financial outcomes using more accessible measures that strongly correlate with outcomes, and to effectively use estimates. </p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/resized/0008/5938/measurement_chart_1-blog-flyer.png" alt="" width="470" height="296"> </p> <p>Leaders do not get distracted by small levels of ambiguity, nor the lag in business metrics. <strong>Instead, 73% of leading marketers are comfortable using proxies to tie media metrics with business outcomes.</strong> They are 35% more likely to do so than mainstream marketers.</p> <p>This allows the leaders to move more quickly than the alternatives. When asked for the reasons why they use proxies/estimates, seven in ten said they do so to make faster decisions.</p> <p>Once the connections between proxies and financial outcomes are well established, these leaders also speak about marketing success in a language that finance and the board understands.</p> <h3>#3 Play the long game</h3> <p>Experimentation is nothing new to marketers, and indeed the majority are engaging in it. <a href="https://econsultancy.com/reports/driving-growth-with-measurement-in-a-mobile-world/">Econsultancy’s Driving Growth with Measurement in a Mobile World</a>, also conducted in partnership with Google, showed that over 80% of enterprise level marketers were engaging in some level of testing.</p> <p>The majority of these organizations focus their efforts on optimization - iterative improvements of campaign variables or owned media sites and applications.</p> <p>These are useful, but optimization is not exploration and in times when markets and consumers are changing quickly, that’s a critical difference. There are simply new opportunities to deliver value to consumers and value to the bottom line, that unless tested, will not be discovered or left for a competitor to find.</p> <p>This means switching some of the focus from short term confirmation to long term inquiry.</p> <p>Leading marketers are starting to find a balance. <strong>56% say that their organizations dedicate time and budget to strategic experimentation.</strong></p> <p>Marketers who want to join the leaders need to expand their thinking from hitting this quarter’s targets to proving that experiences pay off in the months and years to come.</p> <h3>#3.5 The prime example is mobile CX</h3> <p>Perhaps the clearest example of where companies can benefit tomorrow by experimenting today is in the mobile customer experience. Mobile has fundamentally affected how consumers interact with brands, and marketing is only starting to decipher the implications.</p> <p>Mobile behavior is in the process of redefining the customer experience, regardless of sector. But most sales are still offline and via the desktop, so at many companies mobile CX is simply one of many competing priorities.</p> <p>Leaders have a sense of urgency. <strong>They are more than three times as likely than the mainstream to be significantly increasing their investment in mobile customer experience.</strong> Just as important, an increase in profitability is the most commonly cited reason to increase investment.</p> <h3><strong>The big picture - from transaction to customer</strong></h3> <p>Step back from the findings detailed in this series, and you see a central line; leading companies are fundamentally shifting their focus from the short-term goals to the long-term value of a customer.</p> <p>The speed of commoditization has grown steadily in the digital era and will increase further as manufacturing and processes are automated and accelerated by machine learning. This applies equally to digitally-enabled services as to physical products.</p> <p>These pressures move value from the point-of-sale transaction to the relationship, with customer loyalty the only variable with long-term implications on what brands can charge.</p> <p>To commit to this model where growth is driven by customer experience is to invest in return visits, higher basket values and wider margins.</p> tag:econsultancy.com,2008:Report/4468 2017-05-08T11:20:00+01:00 2017-05-08T11:20:00+01:00 Digital Intelligence Briefing: 2017 Digital Trends in B2B <p>The <strong>2017 Digital Trends in B2B</strong> report demonstrates the priorities and progress being made in B2B marketing as digital experiences in the consumer world continue to bleed into B2B journeys. The results show a sector that, though marred by the familiar 'B2B lags behind B2C' adage, is showing maturity in terms of prioritisation of digital strategy.</p> <p>A lack of capabilities in key areas holds back progress, but there’s increasing evidence that customer experience and digital transformation have taken on a more prominent role.</p> <p>The research, conducted by Econsultancy in partnership with <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, is based on a sample of almost 2,400 B2B respondents who were among more than 14,000 digital professionals taking part in the seventh annual Digital Trends survey, carried out in November and December 2016.</p> <h3>The following sections are featured in the report:</h3> <ul> <li>Fostering a digital culture</li> <li>Lack of confidence in mobile continues</li> <li>The next wave of B2B marketing</li> <li>The CX of the future</li> <li>Actionable tips to help future-proof your B2B business</li> </ul> <h3>Findings include:</h3> <ul> <li>B2B marketers are just as likely to state that their company is digital-first as their B2C counterparts. However, progress at the other end of the scale appears to be stagnating; the proportion of those with digital marketing activities ‘very much separate’ to the rest of their marketing has increased this year to more than a fifth of respondents.</li> <li>B2B’s lag behind B2C is most evident in mobile capabilities. B2B companies are 29% less likely than their B2C counterparts to rank mobile as a top-three strategic priority in 2017, and only 12% are making mobile optimisation a tactical priority, with mobile marketing investment also low.</li> <li>Data is a key strength and priority of B2B; almost three-quarters of organisations have made it a strategic priority, and this is reflected in their confidence over handling data. Compared to last year, they are less likely to say that data is difficult to master, and slightly more likely to use online data to optimise the offline experience and vice versa.</li> <li>The continued dominance of CX in terms of the focus of marketers is reflected in the report, with 91% of B2B brands making the discipline a strategic priority in 2017. However, they are less likely than B2C companies to use CX as their key differentiator, with product innovation and quality almost as likely to be used.</li> </ul> <p><strong>Econsultancy's Digital Intelligence Briefings, sponsored by <a title="Adobe" href="http://www.adobe.com/marketing-cloud.html">Adobe</a>, look at some of the most important trends affecting the marketing landscape. </strong><strong>You can access the other reports in this series <a title="Econsultancy / Adobe Quarterly Digital Intelligence Briefings" href="http://econsultancy.com/reports/quarterly-digital-intelligence-briefing">here</a>.</strong></p> tag:econsultancy.com,2008:BlogPost/69025 2017-05-03T11:58:00+01:00 2017-05-03T11:58:00+01:00 Six fascinating ways Google is innovating in healthcare Ben Davis <h3>1. Streams - a secure clinical app</h3> <p>The Streams app, pictured below, was built by DeepMind Health and digital product studio ustwo to provide real-time information to clinicians, enabling them to more easily prioritise patient care in hospitals. Patient alerts will provide doctors and nurses with the data they need and the app will allow clinicians to communicate about next actions.</p> <p><a href="https://deepmind.com/applied/deepmind-health/streams/">DeepMind says</a> that 'by freeing clinicians from juggling multiple pager, desktop-based, and paper systems, Streams will help redirect significant amounts of time from admin and towards direct patient care.'</p> <p>Streams has been in use at the Royal Free London hospital since November 2016 helping to treat patients with acute kidney injury. <a href="https://www.royalfree.nhs.uk/news-media/news/new-app-helping-to-improve-patient-care/">Early feedback has been good</a>, with nurses reporting time savings of up to two hours per day.</p> <p><img src="https://assets.econsultancy.com/images/0008/5776/streams.jpg" alt="streams app" width="615"></p> <p><em>Image via DeepMind Health</em></p> <h3>2. Verifiable Data Audit - a 'blockchain' system to track health records</h3> <p>It's perhaps worth noting <a href="https://www.technologyreview.com/s/602963/is-deepminds-health-care-app-a-solution-or-a-problem/">some tension around the Streams app</a> at the back end of 2016, as critics said that Google's five year partnership with the NHS gives it too much access to NHS data without appropriate oversight. That's where DeepMind's next big project may come in.</p> <p>DeepMind Health published <a href="https://deepmind.com/blog/trust-confidence-verifiable-data-audit/">a blog post</a> in March 2017 about its work to bring scrutiny to the use of medical data. Verifiable Data Audit is a blockchain-style system that will give partner hospitals an additional real-time mechanism to check how data is being processed.</p> <p>Where authorisation and patient consent is needed, the system will show who is accessing data. DeepMind explains further in its blog post:</p> <blockquote> <p>For example, an organisation holding health data can’t simply decide to start carrying out research on patient records being used to provide care, or repurpose a research dataset for some other unapproved use. In other words: it’s not just where the data is stored, it’s what’s being done with it that counts. We want to make that verifiable and auditable, in real-time, for the first time.</p> </blockquote> <p>As with blockchain, the system will not allow for any record of data use to be erased, with third parties able to verify data is uncompromised. However, the system will not be as complex or expensive as blockchain, nor will it be decentralized, as it will rely on hospitals and national bodies to act as verifiers.</p> <h3>3. The Study Watch - an everyday wearable</h3> <p>Verily Life Sciences, one of Alphabet's research organisations, has developed <a href="https://blog.verily.com/2017/04/introducing-verily-study-watch.html">a stylish health tracking watch</a> which differs from wearables on the market.</p> <p>As it is designed for every day use in medical studies, the watch is as wearable as possible, ensuring that study participants don't neglect to wear it. That means it looks much like a stylish analogue watch, with only time and date displayed (participants do not have access to logged data), and the battery lasts for a week with syncing only required on a weekly basis, too.</p> <p>Furthermore, the watch's software can be updated wirelessly and a processor encrypts the data collected, which includes:</p> <ul> <li>heart rate</li> <li>electrocardiograms (low res versions taken by gripping the watch bezel)</li> <li>movement data</li> <li>electrical conductance of the skin</li> <li>ambient light and sound</li> </ul> <p><img src="https://assets.econsultancy.com/images/0008/5761/verily_study_watch.jpg" alt="verily study watch" width="400" height="281"></p> <p>The Study Watch is used in several of Verily's studies which aim to collect a wide variety of data. One such study will begin in June with the Parkinson Center at Radboud University Medical Center, Netherlands. 650 volunteers will each use one of the watches, as well as have brain scans and blood tests.</p> <p>Bastiaan Bloem, a neurologist at the center <a href="https://www.technologyreview.com/s/604198/googles-verily-unveils-a-health-watch-for-research/">tells MIT Tech Review</a> the watch is “an exciting way to track people 24 hours in their homes...We know one of the early symptoms in Parkinson’s is heart rate variability. But we only measure it in the hospital.”</p> <h3>4. Project Baseline - a huge longitudinal study</h3> <p><a href="https://blog.verily.com/2017/04/why-baseline.html">Project Baseline</a> was announced in April 2017 and its scope makes it the most eyecatching thing that Verily has worked on to date. 10,000 volunteers will be monitored over four years, building a whole range of datasets using in-clinic testing and continuous data collection via a Baseline app and the aforementioned Study Watch.</p> <p>The study is predicted to take a decade to complete (due to the time needed to find enough participants) and cost more than $100m, with the ultimate aim of finding predictors of conditions such as heart disease and cancer.</p> <p>Participants will undergo x-rays, heart scans, genome sequencing and blood tests, alongside the continuous tracking of activity data and sleep patterns (using an electric loop placed under a mattress).</p> <p>With such a variety of data, Verily is 'creating an infrastructure that can process multi-dimensional health data – much of which have never been combined for an individual.' Other long term studies of note (e.g. the Framingham Heart Study) do not look at such a wide range of data, so Baseline's results will be eagerly anticipated.</p> <p><img src="https://assets.econsultancy.com/images/0008/5767/baseline.jpg" alt="baseline" width="615" height="338"></p> <h3>5. An eye-scanning algorithm to diagnose eye disease</h3> <p>One burgeoning area of medical research is the use of machine learning to assist with diagnosis, as well as some practical parts of medicine (such as the careful <a href="https://www.technologyreview.com/s/602277/deepmind-will-use-ai-to-streamline-targeted-cancer-treatment/">segmentation process during radiology</a>).</p> <p>DeepMind Health is innovating in these areas and received much publicity for its work in ophthalmology. Since July 2016, DeepMind has worked with Moorfields Eye Hospital in London in training computers to assist with screening for diabetic retinopathy (DR). The algorithm was trained using 128,000 retinal images that had already been classified by ophthalmologists. In testing, the algorithm then matched or exceeded the performance of experts, not only in identifing DR but also in grading its severity.</p> <p>DR affects a third of diabetes sufferers and Moorfields assesses 3,000 scans every week. The development of such an algorithm allows expertise to be transferred to areas of the world that are lacking in retinopathy experts.</p> <p><img src="https://assets.econsultancy.com/images/0008/5777/retinopathy.jpg" alt="retinopathy research" width="615" height="278"></p> <h3>6. Miniaturized continuous glucose monitors (CGMs)</h3> <p>Verily is working with Dexcom to develop <a href="https://verily.com/projects/sensors/miniaturized-gcm/">miniaturized continuous glucose monitors</a> (CGM) for those with Type 2 diabetes.</p> <p>The monitors are predicted to be ready by 2020, and will help to make continuous monitoring less expensive and less disruptive, using wireless connectivity and precluding the need for measurement with the traditional finger stick.</p> <p><a href="https://diatribe.org/dexcom-g6-sensor-shines-early-accuracy-study">Fewer that one in five people</a> with Type 2 diabetes use continuous glucose monitors. This new technology may make the practice affordable and convenient for many more.</p> <p><img src="https://assets.econsultancy.com/images/0008/5778/dexcom.png" alt="cgm" width="350"></p> <p><em><strong>More on healthcare:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68851-six-ways-digital-is-changing-the-pharma-healthcare-industry/">Six ways digital is changing the healthcare &amp; pharma industry</a></li> <li><a href="https://econsultancy.com/blog/67011-how-is-healthcare-marketing-changing-in-the-digital-world/">How is healthcare marketing changing in the digital age?</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69034 2017-04-26T12:24:21+01:00 2017-04-26T12:24:21+01:00 Amazon launches 'Subscribe with Amazon' to help companies sell subscriptions Patricio Robles <p>The <a href="https://www.subscribewithamazon.com/">marketplace</a>, which is said to have been in development for the past year, was born out of Amazon's homegrown subscription initiatives. "Over the years, Amazon has gained extensive experience in the memberships and subscriptions space, innovating across programs like Prime and Kindle Unlimited," Lovina McMurchy, the GM of Subscribe with Amazon, <a href="http://www.businesswire.com/news/home/20170424005365/en/Amazon-Launches-Self-Service-Marketplace-Subscription-Providers">explained</a> in a press release. </p> <p>Vendors interested in selling through Subscribe with Amazon have access to self-service tools that allow them to create detail pages for their offerings. An API allows vendors to receive order data and updates from Amazon so that they can automate the management of subscriptions. As one would expect, Amazon is giving vendors the ability to sell subscriptions with different terms, such as monthly and annual, and also allows them to offer introductory pricing to new subscribers.</p> <p>Initial Subscribe with Amazon partners include Disney Story Central, The Wall Street Journal and Dropbox. Currently, Subscribe with Amazon is accepting applications from vendors that sell digital content, but it would not be surprising to see Amazon later extend it to subscription services that offer physical products.</p> <p><img src="https://assets.econsultancy.com/images/0008/5680/subscribewithamazon.png" alt="" width="768" height="450"></p> <h4>Distribution, but at what cost?</h4> <p>Subscribe with Amazon's primary value proposition is that it offers subscription vendors a marketplace through which they can sell to Amazon's massive customer base. To help them sell, Amazon is even offering vendors the ability to create special promotions for Prime members, which are now estimated to number more than 65m.</p> <p>For example, one Subscribe with Amazon launch partner, Texture, offers a 50% discount to Prime members for the first six months of a subscription to its digital magazine service.</p> <p>In addition to helping vendors market their wares, Subscribe with Amazon could, <a href="https://econsultancy.com/blog/68792-amazon-payments-usage-grows-should-you-adopt-it/">like Pay with Amazon</a>, reduce purchase friction because it enables Amazon customers to purchase and manage subscriptions through their existing Amazon accounts, speeding the purchase process and reducing concerns about trust. Such concerns are often more pronounced in subscription purchases because charges are recurring. </p> <p>But despite the appealing aspects of Subscribe with Amazon, vendors will probably want to think carefully before they embrace Amazon's new offering.</p> <p>First, there's the issue of margin. Amazon takes a 30% cut of subscription revenue in the first year. That drops to 15% after the first year. While giving up 30% and then 15% might make sense for some vendors – it's in line with what other distribution channels charge – it might not make sense for others and vendors will want to do the math to determine the potential impact on the profitability of their business, especially if they consider that some Subscribe with Amazon subscriptions may displace some portion of subscriptions that would otherwise be sold direct.</p> <p>Second, there's the issue of data and customer ownership. While Amazon is giving vendors access to order data through an API, Subscribe with Amazon will obviously give the online retail giant the ability to collect significant data about its vendors. And it will own the relationships with customers who purchase using Subscribe with Amazon.</p> <p>Data and customer ownership is a thorny issue for vendors. After all, Amazon increasingly competes with companies that sell in its marketplaces. For example, it has launched its own private brands in categories ranging from apparel to electronics accessories. Some companies believe that Amazon <a href="https://econsultancy.com/blog/67769-the-rise-of-amazon-s-private-labels-shows-the-perils-of-not-owning-your-data-customers">has used its vast trove of sales data to identify products that its private labels should sell</a>.</p> <p>Given that Amazon already operates a number of digital subscription services of its own, the company's actions in other markets make it clear subscription vendors will have no choice but to consider that Subscribe with Amazon could eventually help the retail giant at their expense.</p> tag:econsultancy.com,2008:BlogPost/68986 2017-04-24T15:00:00+01:00 2017-04-24T15:00:00+01:00 How AI is bound to change B2B sales and marketing forever Maz Nadjm <p>As a result, our experiences as consumers and humans becomes more seamless and pleasant. It doesn’t take long to get used to this, to the point that some of us are now starting to expect a certain level of personalisation prompted by artificial intelligence systems in our interactions with brands in the B2C space.</p> <p>As <a href="https://econsultancy.com/blog/67745-15-examples-of-artificial-intelligence-in-marketing/">AI technologies</a> become the norm, B2B companies will be expected to provide the same level of smart automation as their B2C counterparts. Most professionals are well aware of this; according to a recent report by Demandbase, <a href="https://www.demandbase.com/press-release/marketing-executives-predict-artificial-intelligence-will-revolutionize-marketing-2020/">80% of B2B marketing executives</a> predict artificial intelligence will revolutionise marketing by 2020. </p> <p>Yet, only 10% of them are currently using AI for their business. Even more interestingly, a recent Forrester study reported that <a href="https://www.forrester.com/One+Million+B2B+Sales+Jobs+Eliminated+By+2020/-/E-PRE7784">nearly 75% of B2B buyers prefer to buy online</a> when purchasing products for work, yet just 25% of B2B companies actively sell online.</p> <p><img src="https://assets.econsultancy.com/images/0008/5368/AiBlog1-02.png" alt="" width="678" height="425"></p> <p>B2B marketing and sales departments that will become early adopters of AI are bound to see amazing results very quickly. But in order to get started and to build a strong business case for this type of technology within your organisation, it is essential to understand how it can benefit your business right now, and not in a futuristic tomorrow. </p> <p>There are two areas in particular where AI and machine learning can help B2B sales and marketing teams achieve their ambitious goals right now:</p> <h4>1. Better insights, better strategy</h4> <p><a href="https://www.salesforce.com/form/pdf/state-of-the-connected-customer.jsp">Salesforce’s 2016 Connected Customer report</a> highlighted that by 2020 57% of business buyers will switch brands if a company doesn’t actively anticipate their needs. It is not uncommon to read about this being the ‘era of the customer’, and companies that can really put their clients and prospects at the centre of their marketing and sales efforts are bound to win big in the short term.</p> <p>With the right kind and the right amount of data, B2B businesses will be able to design strategies that will anticipate the needs of their customers at an unprecedented level. The same way our ‘Discover Weekly’ Spotify playlist seems to know us better than we know ourselves, B2B vendors can use behavioural analysis and machine learning to understand their customers’ pain points and suggest ad hoc solutions in a cost-effective and efficient way. </p> <p>As much as ‘<a href="https://econsultancy.com/reports/predictive-analytics-report/">predictive analytics</a>’ sound like something out of a 1970s sci-fi film, truth is that they are already part of our lives. When building the audience for a specific Facebook ad or letting Mailchimp optimise the best time to send out your monthly newsletter, all you are doing is allowing a software to suggest a course of action based on the data it already has. </p> <p>As time goes by and the amount of data available to us grows to unimaginable amounts, this process is only bound to become more and more refined.</p> <p> <img src="https://assets.econsultancy.com/images/0008/5366/aiblogpost3-03__1_.png" alt="" width="440" height="378"> </p> <h4>2. More time to do your (real) job</h4> <p>Since the beginning of time, good technology has been amazing at helping us be more productive. What was true for the invention of the wheel is certainly still relevant in the age of software that can learn from the outcome of their own assumptions and actions (aka artificial intelligence). Both sales and marketing teams can see a spike in productivity when implementing the right kind of AI tech.</p> <p>When it comes to sales teams, a well-functioning process including AI technology can save hours, if not days, on a weekly basis spent on prospecting. Who has clicked on your email, who has engaged with your LinkedIn post, and was there a commonality between the pieces of content that raised that person’s interest? </p> <p>What was, until now, up to a salesperson’s instincts to identify and understand can be easily turned into consumable data to be analysed by a smart programme. The result is that sales teams can spend a lot more time on building meaningful relationships and starting real conversations with prospects and customers while gaining a deeper understanding of their existing pain points. </p> <p>Through AI-powered smart content discovery, sales teams can source the most relevant information to share with their prospects on social media to address their challenges in a timely and non-intrusive way.</p> <p>But sales teams are not the only ones to benefit from smart machines crunching data faster than any human being (however smart they may be). When freed by the burden of data cleaning, marketing teams can spend more time on what makes their job so great: creativity. </p> <p>Good machine learning helps you understand your audience and your buyer personas at a much deeper level and develop a message that will be relevant to them at the most convenient time. When data sorting is being taken care of in a time-saving way, marketers’ time can be freed up and be spent on creating original and truly outstanding ideas. </p> <h4>In summary...</h4> <p>In contrast to what a lot of us may think, AI is already part of our lives.</p> <p>Those B2B companies that see its potential and take concrete steps towards implementing these new technologies within their sales and marketing departments will be the most likely to succeed in the next few years.</p>