tag:econsultancy.com,2008:/topics/digital-strategy Latest Digital Strategy content from Econsultancy 2016-10-24T10:11:00+01:00 tag:econsultancy.com,2008:BlogPost/68420 2016-10-24T10:11:00+01:00 2016-10-24T10:11:00+01:00 How to make your mark as a disruptive startup Nikki Gilliland <p>So, where exactly should you start?</p> <p>Recently, we sat down with six executives from the <a href="https://econsultancy.com/reports/top-100-disruptive-brands-2016/" target="_blank">Top 100 Disruptive Brands</a> list, a report produced in association with Marketing week, to find out their top tips.</p> <p>You can see the interviews in full by watching the video below, or read on for a summary of what they said.</p> <p><iframe src="https://player.vimeo.com/video/184675406" width="640" height="360"></iframe> </p> <h3>Buying time</h3> <p>According to Eren Ogazir, the founder and CEO of Push Doctor, time is one of the most important factors for setting up a company. </p> <p>As a result, whether it is in terms of help from friends or family or free services from those around you, he emphasises how you should focus on buying yourself time in order to gain the flexibility you need.</p> <p>In doing so, you will be able to move towards the end solution at a quicker pace, without having to worry about finding extra income.</p> <h3>Simplifying the proposition</h3> <p>Justin Basini from ClearScore suggests that disruptive startups can be guilty of over-complicating their proposition, especially when entering a complicated market like finance or technology.</p> <p>However, the best thing to do is to hone it down to a single sentence so that it can be communicated to consumers in simple terms.</p> <blockquote> <p>In the case of ClearScore, it is “get your credit score for free for ever”. It doesn’t get any simpler than that – it is really easy to communicate. </p> </blockquote> <h3>Caring about the customer</h3> <p>It might sound obvious, but many startups focus on the end goal rather than finding out exactly what it is the customer wants from your product or service.</p> <p>The founder of Pact, Stephen Rapoport, explains how a non-existent marketing budget meant that he was forced to take other measures in order to get the word out to consumers.</p> <p>By using social media channels like Twitter, he was able to build trust on a one-to-one level with customers – even delivering the product in person. </p> <p>This enabled him to tweak and hone the company’s proposition, website and product in line with customer feedback.</p> <h3>Sticking to your guns</h3> <p>Having a strong vision for the company is a given, but Emma Chalwin, Marketing Leader at Salesforce, suggests that sticking to it in the face of opposition is key.</p> <p>Whether the obstacles are in the form of resistance to investment or simply people not believing in your idea, it is easy to waver at this point and bend to the perception of others.</p> <blockquote> <p>If you really believe that your proposition and your vision for the customer experience within your industry is valid, then really stick to your guns and take that risk.</p> </blockquote> <p><em>Download the <a href="https://econsultancy.com/reports/top-100-disruptive-brands-2016/" target="_blank">Top 100 Disruptive Brands report</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68423 2016-10-21T11:45:54+01:00 2016-10-21T11:45:54+01:00 How fashion and travel are leading the way in m-commerce Gregory Gazagne <p><a href="http://www.deloitte.co.uk/mobileuk/">Deloitte’s Mobile Consumer Survey</a> found that UK citizens look at their smartphones over a billion times a day, declaring that “no other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to.”</p> <p>Around the same time in late September the IAB released its ‘<a href="http://www.businesswire.com/news/home/20160927005394/en/Three-Quarters-Mobile-Users-World-Purchases-Smartphones-Tablets">Mobile Commerce: A Global Perspective</a>’ survey, which found that three-quarters (75%) of smartphone and tablet users say they have purchased a product or service on their smartphone or tablet in the past six months, and nearly a quarter (23%) buy on mobile devices on a weekly basis.</p> <p>As the retail industry rapidly adapts to mobile usage, at Criteo we’re able to analyse millions of online sales in real time, on all devices and from thousands of brands across all industries.</p> <p>With this front-row seat to the very latest in mobile commerce, we’re especially interested in looking at the way different retail industries are keeping pace with the rate of change.</p> <p>Because of the specific challenges facing them, we’ve seen that the fashion industry in particular is blazing a trail in smartphone targeting, including cross-channel strategies, and travel is making its mark by providing superior customer experience/ better conversions via apps.</p> <p>What’s driving these industries to lead in these areas – and what can others learn from them?</p> <h3><strong>The rise of the ‘Smartphonista’</strong></h3> <p>Last month’s New York-London-Milan-Paris Fashion Weeks saw the <a href="https://www.theguardian.com/commentisfree/2016/sep/30/us-vogue-editors-ridiculous-fashion-shows-changed-bloggers">old guard of print fashion journalism clash with the fashion world’s new digital influencers</a>, who rely on blogging platforms and Instagram to communicate with their thousands of followers.</p> <p>Their argument is symptomatic of a wider trend: that smartphones are revolutionising the way the fashion industry markets and sells its wares, and this is causing headaches for traditional media – but driving strong results on digital channels.</p> <p>According to Criteo <a href="http://www.criteo.com/resources/fashion-flash-report-2016/">data</a>, clothes have quickly become the premier mobile purchase in the UK, with 55% of online fashion purchases now being made through mobile (smartphones or tablets), and four out of 10 of all fashion purchases in the UK being made through smartphones.</p> <p>This makes fashion shoppers that purchase on smartphones (who we’ve coined ‘Smartphonistas’) a particularly valuable audience for fashion retailers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0592/criteo_slide.png" alt="" width="800"></p> <p>Mobile is perfect for this kind of off-the-cuff purchase, allowing consumers to browse flash sales on their phone, shop while watching TV, or buy an article of clothing on a whim.</p> <p>In addition to impulse, these purchases can also be driven by social connections and social influence (as evidenced by the rise of the fashion bloggers so vilified by Vogue).</p> <p>Social media – particularly Snapchat, Instagram and Pinterest – appears to strongly influence clothing purchases on mobile.</p> <p>Heavy Snapchat users are 139% more likely to buy clothes on mobile than the average Brit, while heavy Instagram (113%) and Pinterest (83%) users are also much more likely than average to buy clothing on mobile, according to <a href="http://www.criteo.com/resources/a-portrait-of-mobile-performance/">Criteo’s Portrait of Performance report</a>.</p> <p>Despite all this, acquiring new fashion customers is notoriously hard.</p> <p>What’s more, it can take several purchases before a customer earns you a profit, and turning new customers into loyal buyers takes finesse.</p> <p>In response to these challenges, fashion retailers are starting to recognise what products drive the best response on what device.</p> <p>For example, fashion shoppers favour small screens for low-risk items (T-shirts etc.) and products they don't need to try on (e.g. accessories).</p> <p>In addition, the new breed of Smartphonistas often use multiple devices on the path to purchase, so retailers are starting to track more effectively across devices in order to send the right message to the right person, at the right time.</p> <p>Nadya Birca, Senior Digital Marketing Manager at New Look told us that the key to successfully engaging with the Smarphonista is to recognise that he or she expects a truly cross-channel experience:</p> <p>“With mobile usage soaring in the UK, the experience we’re aiming to deliver on mobile is significant for our interactions with customers both on- and off-line.</p> <p>"When browsing on mobile we shouldn’t expect users to purchase straight away - allowing them a seamless navigational exploration, and later consideration experience, is what should drive any mobile commerce business focus.”</p> <h3><strong>Destination App</strong></h3> <p>As the 36th annual <a href="http://wtd.unwto.org/en">World Tourism Day</a> reminded us at the end of last month, the tourism industry continues to drive positive social, cultural, political and economic impacts worldwide.</p> <p>In many countries, including the UK, the travel industry is feeling the positive impact of the rise of smartphone use.</p> <p>Criteo’s latest Travel Flash Report shows that one in five Brits now browse for travel options on their mobile phones, and close to one-third of online travel bookings worldwide took place on mobile devices in Q2 2016 (up 24% from the year before).</p> <p>During the same period, smartphones captured nearly one in five online travel bookings.</p> <p>But that’s not all – the travel industry, more than most other verticals, is seeing particular success when it comes to mobile apps.</p> <p>According to our data, with investment in in-app tracking and advertising, committed travel advertisers are seeing a surge of bookings made from apps.</p> <p>Apps generated 57% of mobile bookings in Q1 2016, up from 40% in Q3 2015.</p> <p>Over the past two years, travel brands that invested in their apps saw constant growth in app bookings from 12% to now over half of all mobile bookings. </p> <p>For one-night stays, apps have a clear lead over other devices or platforms, with nearly three in four app bookings made for one-night stays.</p> <p>The most effective travel mobile strategies encourage app installs with services that really make a difference:</p> <ul> <li>Personalising recommendations based on searches, selection criteria, past travels and wish lists</li> <li>Sending up-to-date, useful and non-intrusive notifications (e.g., check-in reminders, traffic, delays, alternatives, cancellation, nearby offers)</li> <li>Offering better deals on your app to temporarily capture downloads and bookings, but be consistent to sustain them</li> <li>Enabling one-click bookings with intelligent auto-fill of personal details (while highlighting payment security)</li> </ul> <p>App bookings are on a roll, and we can see that merchants who invested in and promoted apps early are now reaping the benefits. </p> tag:econsultancy.com,2008:BlogPost/68435 2016-10-20T15:13:00+01:00 2016-10-20T15:13:00+01:00 Q&A: Publicis’s Rishad Tobaccowala on digital transformation & agency double dealing Olivia Solon <h3>You have said that customers are now Davids while marketers are Goliaths. What do you mean by that?</h3> <p>Traditionally marketers have spoken about how they would enable people, empower people.</p> <p>But now you and I have smartphones with the same amount of processing power that was in the Space Shuttle.</p> <p><img src="https://assets.econsultancy.com/images/0008/0574/rishad.jpg" alt="" width="226" height="226"></p> <p>So what happens is we already are enabled by our phone and our social networks connected to the internet. This technology allows us to bring down Goliath. </p> <h3>How well are marketers coping with digital transformation, on the whole?</h3> <p>They are in the stage somewhere between grief and anger. They no longer have denial.</p> <p>The problem with grief and anger is that they are taking it out not on themselves but on anybody else. It’s one of the reasons why you are seeing so many agency reviews.</p> <p>They are slowly moving to acceptance but that doesn’t mean there’s a solution there. </p> <h3>Which companies are thriving in this environment? </h3> <p>Look at Dollar Shave Club.</p> <p>They realized they could market using Facebook and YouTube effectively by giving people value by selling blades made in the same factories as Gillette, without the overheads of Gillette’s advertising.</p> <p>This means they give you the same blade for half the price and send it to you directly.</p> <p>In return they went from no market share to 15% of the market and they got bought by Unilever for $1bn.</p> <p><iframe src="https://www.youtube.com/embed/ZUG9qYTJMsI?wmode=transparent" width="640" height="360"></iframe></p> <p>P&amp;G is now going to have to write down the value of Gillette. </p> <p>Similarly cab drivers used to give us problems and now they are very nice to us.</p> <p>In the old days our bosses would tell us ‘you are well paid’. Now, with Glassdoor we can see when that’s wrong.</p> <p>Entire industries are being revitalized. </p> <h3>Which companies aren’t coping well?</h3> <p>Most newspaper brands with the exception of the Wall Street Journal, Washington Post and New York Times. They failed to adapt.</p> <p>And TV networks. The basic concept has died but they still don’t realize. People care about shows rather than networks. Or modern networks like Netflix. </p> <h3>Why hasn’t the TV industry realized that the model is broken?</h3> <p>Primarily because it’s been highly lucrative and successful until about now. They have to recognize that the spectrum is no longer valuable.</p> <p>They have to think about the storytelling business. TV is the next big thing that will be restructured in a big way.</p> <p>Magazines? Too late. Newspapers? Too late. TV had the opportunity but did nothing because they were succeeding because it was the last mass medium left.</p> <p>They didn’t do any deals with the devil like Apple like the music industry did, but consumer behavior has moved. They no longer align with the consumer like Amazon and Netflix do. </p> <h3>What do marketers need to do to adapt to the new digital landscape?</h3> <p>The future does not fit into the mindsets of the containers of the past.</p> <p>If you are trying to get into a different business using the same people, incentive system and structures you aren’t going to get there.</p> <p>A bus does not fly however much the bus people want it to fly. You need pilots. And this applies to every company, not just agencies. </p> <h3>Are there any skills that still apply in this new digital world?</h3> <p>Insights and ideas matter. The ability to align with customers matters. Marketing still matters. Understanding and meeting people’s requirements.</p> <p>Marketing works otherwise we would all be using Blackberrys and driving Yugos.</p> <p>Marketing works when it has this combination of respect, trust, value and design as well as empathy and storytelling.</p> <p>It’s not like throwing the baby out with the bathwater. </p> <h3>What does this mean for agencies?</h3> <p>The agency business is one of the few businesses that will survive very well. The rationale is not because I work in it, it’s because the only thing we have is people.</p> <p>As the world changes we can change the people. We don’t have things like factories and assembly lines, TV spectrum and any sunk costs.</p> <p>Our holding company went from 7% digital to 50% digital in seven years. We’re light. We are stupid but we’re light.</p> <p>Our business is about some combination of automation and creativity. Storytelling for big brands and connecting machines requires people. </p> <h3>What does this mean for the CMO?</h3> <p>The future is about allowing people to access companies, to market to themselves.</p> <p>When I’m looking for a product or service I’ll ask my friends, check out stuff on Facebook and Google.</p> <p>We have to facilitate this self-marketing, so I suggested the Chief Marketing Officer becomes the Chief Facilitating Officer. </p> <h3>How will marketing evolve over the next five to ten years?</h3> <p>People increasingly want access rather than ownership. That changes the way you speak to people. It’s not one sale, you have to keep them happy.</p> <p>You need a continued good experience. As a result of that you need more investment in utility services and a superior product and less in advertising.</p> <p>If you have a superior product and service and fantastic content and storytelling you can get it distributed.</p> <p>So spend more money on content, utility and services and less in messaging and media. </p> <p>You are also going to have less arbitrage. You are going to have to work in a world of perfect information.</p> <p>That’s going to impact a lot of companies. For our company, our clients wonder, ‘can we trust you to shepherd our money properly or are you double dealing?’. Most of us aren’t.</p> <p>The reason there was any double dealing is because clients were saying ‘we won’t give you any fees so make it your own way’. So we worked out how to get paid.</p> <p>We have to grow up and learn how to connect. Our industry may become smaller, but it will be more profitable and with better people. </p> <h3>How can agencies rebuild trust lost?</h3> <p>Most clients believe we are the sewage of the Nile. You have to convince them we are the jewel in the Nile.</p> <p>If you do that with any arrogance you’ll get kicked out in 15 seconds. You cannot take people into the future if you are scared or arrogant.</p> <p>You also have to address the ‘turd on the table’.</p> <h3>What do you mean by addressing the ‘turd on the table’?</h3> <p>A big part of leadership is addressing reality. There are too many meetings where nobody discusses the real issue. People do these dances. Accept reality!</p> <p>Then there’s credibility and you can spend time arguing about the real problem: the shitty brown thing on the table, rather than ignoring it or pretending it’s chocolate cake. </p> <p>At the moment clients have questions over whether they can trust us to allocate their money and whether we are double dealing.</p> <p>After they get past that, clients are deeply insecure about their own future. <a href="https://econsultancy.com/admin/blog_posts/new/">Digital transformation</a> is an issue that’s challenging everybody. </p> <h3>Everybody?</h3> <p>Well apart from Google and Facebook. Every other company that was unstoppable – AOL, even Apple – has problems.</p> <p>Microsoft was unstoppable, Yahoo was unstoppable and both got into trouble. </p> <h3>What’s your advice to anyone starting out in marketing now?</h3> <p>Try to spend one hour a day learning new things. People always ask me how I stay fresh when I’ve worked in the same company for 30-40 years.</p> <p>Every day I spend between 4.30am and 6am learning new things. Today I was reading a book called Magic and Loss by Virginia Heffernan.</p> <p>Sometimes I play around with new tech like Samsung Gear VR. Sometimes I’m reading blogs or learning about new technology.</p> <p>Or read poetry. I spend 90 minutes doing stuff that helps me grow but is not about work or email. That’s how we remain relevant in a changing world. You have to educate yourself. </p> <h3>Every day?! What time do you go to sleep?</h3> <p>10pm. I get up at 4.30am when I’m in Chicago, which is 50% of my time. 5.30am in New York, which is 15% of my time.</p> <p>The rest of the time I do not get up. </p> <h3>So you travel a lot, how do you cope with jetlag?</h3> <p>I have three tricks. The first is luck. I know how to sleep on planes and I am relatively senior so I travel business class, which makes it easier to sleep.</p> <p>Then I work out every morning, so my system recognizes that if I am working out I must be awake. It’s a Pavlovian sign.</p> <p>Then I have coffee take-offs and alcoholic landings. Three espressos, exercise, sleep on planes, two beers at night. That’s what I do. </p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="http://digitalagencies.econsultancy.com/"><em>Top 100 Digital Agencies Report 2016</em></a></li> <li><a href="https://econsultancy.com/blog/68066-top-100-digital-agencies-2016-the-state-of-the-industry/"><em>Top 100 Digital Agencies 2016: The state of the industry</em></a></li> </ul> tag:econsultancy.com,2008:Report/4278 2016-10-20T10:00:00+01:00 2016-10-20T10:00:00+01:00 The Fundamentals of Email Marketing <p>No tool in your marketing toolbox is as valuable and necessary to you as your<strong> email marketing</strong> programme:</p> <ul> <li>Email <strong>generates a generous return on investment</strong>, higher than any other digital marketing channel, including search and social media.</li> <li>Email <strong>extends the reach and power of every other marketing channel you use</strong>, whether it’s digital, mobile, print, broadcast or out-of-home.</li> <li>Holistic email marketing <strong>improves the customer experience</strong>.</li> <li>Email messages can <strong>align with all of the touchpoints on the customer journey</strong>, from browsing to buying and on to loyalty.</li> <li> <strong>Continuous platform development</strong> makes innovations possible.</li> </ul> <p><strong>The Fundamentals of Email Marketing</strong> report will help marketers understand, implement and execute email strategies to maximise return on investment in this channel.</p> <h2>What the report includes</h2> <p>The report includes <strong>initiatives, strategies and tactics that are not part of the conventional wisdom surrounding 'best practices'</strong>.</p> <p>All the initiatives, strategies and tactics recommended in this report assist both the marketer and the consumer. We’ve created this guide so you can use it to <strong>either review your existing email strategy or to help create a comprehensive email marketing strategy from scratch</strong>.</p> <p>We've also included <strong>a multitude of practical tips</strong> you can apply to individual campaigns to help maximise results.</p> <p><strong>A word of advice</strong> before reading – always question a tip and test it, even the ones we advocate here. Don’t accept on faith that something is the best route to take.</p> <p>However, whether you are a time-pressed newcomer to email or a grizzled veteran looking to elevate your programme, this guide and its recommendations are a good place to start.</p> <h2>How the report is structured</h2> <p>We've written this as eight standalone sections covering the essential areas of email marketing:</p> <ul> <li>Objectives and strategy</li> <li>Growing your database</li> <li>Using your email for targeting</li> <li>Designing for email</li> <li>Copywriting for email</li> <li>Testing and optimisation</li> <li>Reporting success using metrics that matter most</li> <li>Deliverability optimisation</li> </ul> <p>So you have a choice: you can sit back and read this guide from beginning to end like a book or you can jump to the section that has the most relevance to your current needs and explore it and delve into the others as and when needed.</p> <h2>Author and contributors</h2> <p>This guide has been put together by <strong>Kath Pay</strong>, who lives and breathes email marketing, with the aid of several experts who have kindly contributed their time and effort in producing this guide.</p> <p>Contributors to the report include:</p> <ul> <li>Skip Fidura, Client Services Director, dotMailer</li> <li>Guy Hanson, Senior Director of Professional Services, Return Path</li> <li>Steve Henderson, Compliance Officer, Communicator</li> <li>Loren McDonald, Marketing Evangelist, IBM Marketing Cloud</li> <li>Dela Quist, CEO, Alchemy Worx</li> <li>Jordie van Rijn, Email Marketing Consultant, eMailMonday</li> <li>Karen Talavera, President, Synchronicity Marketing</li> <li>Catherine Toole, Founder and non-executive Director, Sticky Content Ltd</li> </ul> <p><strong>Download a copy of the report to learn more.</strong></p> <p>A <strong>free sample</strong> is available for those who want more detail about what is in the report.</p> tag:econsultancy.com,2008:Report/4273 2016-10-17T03:00:00+01:00 2016-10-17T03:00:00+01:00 Social Media Strategy Asia Pacific Best Practice Guide <p>One of the most popular areas of digital is social media. The vast majority of internet users have at least one social media account and the main social platforms boast hundreds of millions of daily users.</p> <p>Over the last few years, though, social media has also started to have a strong influence on organisations. Social media has changed how people work, how they communicate and the relationship that they have with their customers.</p> <p>Adding to this, social media is evolving at a blistering pace. New considerations for social media strategists include: paid ad formats, new visual and video formats, buy buttons, private messaging, social servicing, the quantified self and the Internet of Things.</p> <p>Because social media touches so many areas of an organisation, however, getting it 'right' in spite of all these changes has never been more important.</p> <p>This report follows on from Econsultancy's <strong>Social Media Strategy Best Practice Guide</strong>, published in June 2016, and has been updated with information for marketers who are either based in Asia Pacific (APAC) or responsible for marketing in the region. </p> <p>APAC consists of a wide variety of countries, including such diverse markets as Japan, China, India, Australia and other Southeast Asian countries. The reason for a special report on the region is that, taken as a whole, APAC accounts for more than half of all social media users worldwide and has many of the world's fastest growing economies. Its size and potential for growth has made APAC a very attractive target for brands over the past decade.</p> <h2>This report will enable you to:</h2> <ul> <li>Establish a framework for social media strategy</li> <li>Rethink how brands are managed</li> <li>Review company structure</li> <li>Carefully plan social media strategy</li> <li>Execute within regional constraints</li> <li>Provide measurement</li> </ul> tag:econsultancy.com,2008:BlogPost/68368 2016-10-12T15:11:43+01:00 2016-10-12T15:11:43+01:00 To win over millennials, brokerage firms rethink their digital services Patricio Robles <p>In an attempt to address that challenge, a number of upstart brokerages are rethinking how their services function and how they charge for them.</p> <p>For example, <a href="https://www.robinhood.com/">Robinhood</a> is a brokerage firm that has a unique proposition: _ts customers can trade only through the company's smartphone app, which is far more simple than those offered by many brokerages.</p> <p>The firm, which has raised over $60m in funding from investors, says that 80% of its users are millennials and the average age of its customers is 28.</p> <p>Not surprisingly, many of Robinhood's customers reportedly have smaller accounts, but the company is betting that as they increase their earnings and funnel more of their money into stock market investments, the loyalty it has built will pay off.</p> <p>Another startup broker, Divy, aims to attract millennials <a href="http://www.barrons.com/articles/two-new-mobile-investing-apps-for-millennials-1453527209">by adding</a> a social layer to investing and allows its customers to buy fractional shares of company stock with friends and family in increments of as little as $10. </p> <p>"Investing in very small increments, while looking at what your friends and colleagues are doing, helps you think about the markets much more broadly," the company's founder, Marc Teren, <a href="http://www.barrons.com/articles/two-new-mobile-investing-apps-for-millennials-1453527209">told Barron's</a>.</p> <h3>Applying familiar business models</h3> <p>Some brokers are rethinking their business models, going so far as to apply business models from other industries.</p> <p>For example, last month, Motif, a Silicon Valley-based brokerage startup that bills itself as a "next-generation online broker," <a href="https://www.motifinvesting.com/about/press/press_release/motif-enters-subscription-economy-introduces-motif-blue">launched</a> a subscription-based trading service called Motif BLUE.</p> <p>According to Hardeep Walia, Motif's founder and CEO:</p> <blockquote> <p>Today’s subscription-based economy means more affordable, customizable services. We don’t think that investing should be an exception, and that’s why we’ve set out to create the Amazon Prime of our industry.</p> </blockquote> <p>Motif BLUE allows customers to trade as frequently as they like without racking up transaction fees.</p> <p>Like many subscription services, Motif BLUE has multiple subscription tiers that offer different features and costs, and a one-month free trial is available.</p> <p>All tiers allow customers to create investment models, configure recurring investments and rebalance their portfolios without management fees.</p> <p>Motif says that its BLUE subscription offering "marks a shift toward business model innovation" whereas previously the company was "focused on product innovation."</p> <p>That's an important point for financial services firms that are attempting to court younger investors.</p> <p>While these firms can update their services and create new ones that are designed to appeal to their young customers, how those customers pay for those services is arguably just as crucial.</p> <p>This is because young consumers are often more comfortable with business models that are not as common in financial services.</p> <p>With BLUE, Motif can potentially lure customers who like the idea of all-you-can-eat trading for a flat monthly subscription fee.</p> <p>And millennial-focused Robinhood doesn't charge its customers transaction fees at all.</p> <p>It relies on other sources of revenue, such as interest from margin accounts, to cover the trading costs other brokerages charge their customers.</p> <h3>Will it work?</h3> <p>There's evidence that all of this is working. For instance, since its launch Robinhood has attracted over 1m customers.</p> <p>But the real question for brokerage firms that are rethinking how their services are structured and sold is whether millenials will stick with them as they grow up and their needs change.</p> <p>There's a danger they will graduate to more traditional brokers that might not meet their needs today but will tomorrow.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/66536-digital-transformation-in-financial-services-challenges-and-opportunities/"><em>Digital Transformation in Financial Services: Challenges and opportunities</em></a></li> <li><a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016/"><em>Digital Trends in the Financial Services and Insurance Sector</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68363 2016-10-11T11:00:11+01:00 2016-10-11T11:00:11+01:00 Will messaging apps be the next walled gardens? Patricio Robles <p>Case in point: <a href="https://econsultancy.com/blog/66486-stats-the-growing-and-enduring-appeal-of-messaging-apps/">messaging apps</a>.</p> <p>These are some of the most prolific drivers of <a href="https://econsultancy.com/blog/67536-three-dark-social-channels-with-a-billion-active-users-how-to-use-them/">dark social</a> content sharing and referrals, but increasingly messaging apps are building functionality that could force marketers to engage with users in-app.</p> <p>For example, <a href="https://econsultancy.com/blog/65047-tencent-and-wechat-35-facts-figures-on-the-chinese-tech-giant/">Tencent-owned WeChat</a>, one of the most popular messaging apps in China with more than 800m monthly active users, is <a href="http://www.wsj.com/articles/tencent-tries-out-a-stickier-wechat-1475086017">currently testing</a> a featured called Xiaochengxu, which translates to "little program."</p> <p>Xiaochengxu is a development platform for third-parties to build apps that operate within the WeChat app, effectively turning WeChat into an operating system of sorts.</p> <p>As Forrester analyst Wang Xiaofeng told The Wall Street Journal:</p> <blockquote> <p>With everybody coming in to launch Xiaochengxu, WeChat will be much more than an app. It will become the entry point of the Chinese mobile internet.</p> </blockquote> <p>Currently, numerous companies, such as China's Didi Chuxing ride hailing service, have integrations with WeChat, but those link out to their own sites from within WeChat.</p> <p>Xiaochengxu could change that, ensuring that users never leave WeChat. </p> <p>Hong Bo, a marketing consultant, says that's WeChat's goal. "The Chinese internet will be WeChat and others," he predicts.</p> <p>Already, some entrepreneurs and developers are expressing interest in Xiaochengxu, noting that being able to tap into WeChat's user base could be beneficial and reduce their user acquisition costs.</p> <p>Others, however, believe it's "scary" that an app like WeChat could become the ultimate walled garden in which users spend all their time.</p> <h3>A sign of things to come?</h3> <p>Since the Chinese market for messaging apps is seen as leading Western markets, WeChat's Xiaochengxu experiment is worth noting, as it could offer a glimpse of a trend that will eventually come to Western messaging apps.</p> <p>Last year, Viber, which Japanese ecommerce giant Rakuten purchased for $900m in 2014, launched Viber Games globally.</p> <p>Viber Games offers users a catalog of games that they can play from within the Viber app. Viber is popular internationally, and it's worth noting that games are often one of the application types that are used to plant a walled garden.</p> <p>For instance, when Facebook, which is the biggest walled garden on the internet, first launched its developer platform, many of the first Facebook apps that gained traction were games.</p> <p>It's also no surprise that Facebook is looking to extend its walled garden to its Messenger app through <a href="https://econsultancy.com/blog/68184-domino-s-introduces-dom-the-pizza-bot-for-facebook-messenger/">bots</a>, <a href="http://newsroom.fb.com/news/2015/03/send-money-to-friends-in-messenger/">money transfers</a> and <a href="https://econsultancy.com/blog/66234-is-facebook-about-to-open-messenger-to-content-producers-brands/">third-party integrations</a>.</p> <p>It may also <a href="https://blog.whatsapp.com/615/Making-WhatsApp-free-and-more-useful">be planning</a> to build another walled garden with WhatsApp, the messaging app <a href="https://econsultancy.com/blog/64383-why-facebook-bought-whatsapp/">it purchased</a> in 2014 for more than $16bn.</p> <h3>Walled gardens everywhere</h3> <p>While brands might be comfortable with the idea that messaging apps will become walled gardens – they are after all a part of the broader social market – the reality is that walled gardens seem to be growing eveywhere. </p> <p>As Scott Eagle, the COO of 12 Digit Marketing, <a href="https://www.internetretailer.com/commentary/2016/10/06/new-generation-digital-walled-gardens-coming">detailed</a> in a post on InternetRetailer, major retailers and cable companies are also building walled gardens of their own, raising the specter of a day when brand marketers will have to be comfortable with the idea that it's somebody else's internet and they're just living in it.</p> tag:econsultancy.com,2008:TrainingDate/3104 2016-10-07T15:15:17+01:00 2016-10-07T15:15:17+01:00 Digital Transformation in Practice <p>Digital Transformation. The buzzword of the moment. Everybody from IBM to the British Government claim to be in the throws of digital transformation. But what is it and what does it mean in practice?</p> <p>This course will cut through the hype and answer a simple question. What does digital mean for how you do business? You will learn how digital has changed consumer behaviour. You will discover what steps you will need to take if your organisation is going to survive in this new business reality.</p> tag:econsultancy.com,2008:BlogPost/68346 2016-10-07T14:24:28+01:00 2016-10-07T14:24:28+01:00 New data shows why digital is now critical to pharma Patricio Robles <p>At the same time, more than half (53%) of all marketing to physicians takes place through "non-personal" marketing channels.</p> <p>Digital channels in this category include email and SMS alerts.</p> <p>Today, physicians say they spend 84 hours per year interacting with pharma firms through non-personal channels, which they estimate represents 64% of the total time they spend interacting with pharma firms.</p> <p>It can be overwhelming. According to ZS:</p> <blockquote> <p>Today, each of the 26,000 prescribers contacted most frequently by pharmacos receive around 2,800 contacts per year from the pharmaceutical industry.</p> <p>This amounts to about one contact – an in-person sales rep visit, email, phone call or other – every working hour, including weekends and holidays.</p> <p>And they receive these commercial messages on nearly every device, including iPads, mobile phones and laptops.</p> </blockquote> <p>Interestingly, despite the fact that physicians perceive that non-personal channels account for the majority of their pharma interactions and pharma companies estimate that 52% of their outreach is through non-personal channels, budgets don't appear to have shifted yet.</p> <p>A whopping 88% of sales and marketing dollars are still allocated to sales staff.</p> <h3>Increasingly elusive physicians</h3> <p>With the majority of physicians restricting access to sales reps, and 18% of them now "severely" restricting access by meeting with fewer than 30% of the reps who try to meet with them, it's clear that physicians are becoming more elusive and pharma marketers will need to up their game to reach them.</p> <p>According to Malcolm Sturgis, the associate principal at ZS who led the firm's study: "To reach physicians, the pharma industry must become more targeted and sophisticated in its multichannel marketing efforts.</p> <p>"As the variety of alternative marketing channels available today continue to expand, it is critical for pharma to focus on providing a better experience and respond promptly to customer challenges."</p> <p>That doesn't mean getting too aggressive, or going too broad.</p> <p>"While non-personal communications provide an opportunity to reach those 'tough-to-see' prescribers, blindly inundating healthcare providers with digital communications isn't the best solution," Sturgis noted.</p> <p>Pharma marketers will also need to carefully craft the messages they deliver to physicians because of trust: according to a study conducted by Deloitte Consulting, <a href="https://econsultancy.com/blog/67131-pharma-s-mobile-social-efforts-aren-t-as-healthy-as-they-should-be">75% of physicians don't entirely trust information that comes from pharma</a>.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/8526/deloitte2-blog-flyer.jpg" alt="" width="470" height="346"></p> <p>But despite the challenges pharma marketers face in today's environment, a large number (84%) told Deloitte that they are influenced by proprietary data, such as efficacy data, that only pharma companies can provide.</p> <p>And 65% indicated they'd be willing to interact with pharma firms around that content through social channels.</p> <p>There are also new channels, <a href="https://econsultancy.com/blog/67831-electronic-health-records-ehrs-could-help-pharma-marketers-reach-doctors">like EHRs</a>, through which pharma marketers have opportunities to provide value to physicians and interact with them in meaningful ways.</p> <p>So as physicians become harder to reach through traditional channels and take more control over their interactions with pharma companies, expect to see pharma marketers adapt by investing more in non-personal digital channels.</p> <p><em>For more on this topic, check out these reports:</em></p> <ul> <li><a href="https://econsultancy.com/reports/embracing-digital-transformation-in-the-pharma-and-healthcare-sectors/"><em>Embracing Digital Transformation in the Pharma and Healthcare Sectors</em></a></li> <li><a href="https://econsultancy.com/reports/healthcare-study-organizing-marketing-in-the-digital-age/"><em>Healthcare Study: Organizing Marketing in the Digital Age</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/68362 2016-10-07T13:45:03+01:00 2016-10-07T13:45:03+01:00 What would a Twitter acquisition mean for marketers? Patricio Robles <p>If a deal does finally materialize, Twitter's future could be very different than the one it currently faces as an independent entity.</p> <p>Here are some quick thoughts on how it could affect marketers:</p> <h3>Twitter will survive</h3> <p>For a Twitter acquisition to occur, a buyer would almost certainly need to pay a premium over the company's current valuation, which earlier this week stood at $16bn in the wake of the company's acquisition-rumor sparked share price rally.</p> <p>If a buyer pays that much for Twitter, it will require a long-term commitment, making it exceedingly unlikely that Twitter will go away as an independent service. </p> <p>That would of course probably be good news for marketers who have invested significantly in their efforts on the platform, although it still won't guarantee that Twitter will stay relevant over the long haul.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Time for a user buyout. Let’s all chip in $50 then sack whoever invented promoted tweets. <a href="https://t.co/hDtzN92byV">https://t.co/hDtzN92byV</a></p> — Christopher Biggs (@unixbigot) <a href="https://twitter.com/unixbigot/status/784280989795164160">October 7, 2016</a> </blockquote> <h3>The Twitter identity crisis could end</h3> <p>One of the biggest challenges facing Twitter is a lack of a clear identity.</p> <p>A year ago, <a href="https://econsultancy.com/blog/67012-twitter-names-new-ceo-what-it-means-for-marketers">Twitter named co-founder Jack Dorsey as its permanent CEO</a>.</p> <p>Since he took over the reins, Twitter has launched new products, including <a href="https://econsultancy.com/blog/68353-twitter-s-moment-feature-is-now-open-to-all-here-s-how-to-use-it/">Moments</a> and <a href="https://econsultancy.com/blog/67710-twitter-s-nfl-deal-five-questions-we-re-asking">live sports streaming</a>, but the questions about what Twitter is and will be remain.</p> <p>An acquisition could go a long way to finally answering those questions.</p> <p>After all, if Salesforce was to purchase Twitter, one could expect to see greater focus on how Twitter can maximize its utility as a sales and marketing platform.</p> <p>While it's likely any acquirer wouldn't make too many waves lest it alienate Twitter's existing base of users and customers, a clearer focus could benefit some marketers more than others depending on the markets they're in. </p> <h3>New Twitter integrations could emerge</h3> <p>If a tech company acquires Twitter, expect to see new integrations.</p> <p>For instance, Salesforce, which acquired social media marketing platform Radian6 for $326m in 2011 and social media engagement platform Buddy Media for $689m in 2012, would likely integrate Twitter with its relevant products, including its Marketing and Community Clouds. </p> <p>New and deeper integrations could be beneficial to marketers, but it's also possible that a Twitter acquirer will eventually change or shutter relationships with existing vendors that marketers rely on, a consequence that creates some hassles.</p>