tag:econsultancy.com,2008:/topics/digital-transformation Latest Digital Transformation content from Econsultancy 2018-01-17T14:39:32+00:00 tag:econsultancy.com,2008:BlogPost/69732 2018-01-17T14:39:32+00:00 2018-01-17T14:39:32+00:00 TD Bank's acquisition of an AI firm highlights the growing importance of AI in banking Patricio Robles <p>While Layer 6's AI tech is used by clients in a number of industries, TD Bank ultimately decided that the company's technology was critical enough to its business that it made sense to buy its vendor out.</p> <p><a href="https://td.mediaroom.com/2018-01-09-TD-Bank-Group-acquires-artificial-intelligence-innovator-Layer-6">According to</a> TD Bank Group CEO Bharat Masrani, “Anticipating and meeting customer needs are at the heart of our promise, and we are excited to further accelerate our innovation agenda to deliver well into the future.”</p> <p>Masrani's comment refers to TD Bank's use of Layer 6's AI tech to create “predictive and personalized” customer experiences, which it says are at the heart of its digital transformation strategy. Layer 6's platform can be used to generate product recommendations, deliver personalized pricing, predict customer complaints and attrition and identify next best actions.</p> <p>All of those can be integral to creating user experiences that keep customers happy and strengthen TD Bank's relationship with them. Increasingly, some of these user experiences are taking place in a variety of new channels, such as <a href="https://econsultancy.com/blog/68934-how-chatbots-and-ai-might-impact-the-b2c-financial-services-industry">chatbots</a> and voice assistants, that will realistically require good AI to function well.</p> <p>Case in point: TD Bank was the first bank in Canada to launch a Twitter chatbot and it recently launched an Alexa skill that allows customers to bank by voice using one of Amazon's Echo speaker devices.</p> <p>While TD Bank is trying to position itself as an innovator and is clearly ahead of many banks, the reality for the industry is that AI is likely to be a necessity, not a differentiator, in the very near future. </p> <p>Accenture's Banking Technology Vision 2017 report found that four in five bankers believe that AI will “revolutionize” the way they gather customer data and interact with customers, and Accenture believes that AI-based applications <a href="https://www.cnbc.com/2017/03/28/ai-to-become-main-way-banks-interact-with-customers.html">will become</a> the primary channels through which they interact with them within a few years.</p> <p>The reason: according to Accenture's banking practice chief, Alan McIntyre, AI-powered applications “will give people the impression that the bank knows them a lot better, and in many ways it will take banking back to the feeling that people had when there were more human interactions.”</p> <p>He added, “The big paradox here is that people think technology will lead to banking becoming more and more automated and less and less personalized, but what we've seen coming through here is the view that technology will actually help banking become a lot more personalized.”</p> <h3>Banks need an AI strategy, and soon</h3> <p>If AI is key to the customer experiences that banks need to deliver to win, 2018 will be a critical year for banks to incorporate AI into their digital strategies. This not only involves determining where and how to adopt AI but who should develop or provide it.</p> <p>There are numerous challenges, including the widespread use of legacy systems within banks and the more stringent compliance requirements they must adhere to.</p> <p>Additionally, <a href="https://econsultancy.com/blog/69151-a-day-in-the-life-of-senior-data-scientist-at-asos">AI talent</a> has never been more in demand, creating a challenge for banks hoping to build in-house AI capabilities. And while the number of companies offering AI platforms is growing, not all AI platforms are created equal. </p> <p>TD Bank's acquisition also highlights the risk that large players in financial services or other industries that are embracing AI could acquire a platform outright, making outsourcing AI capabilities to a third-party somewhat risky. After all, the wisdom of relying on an AI platform owned by a competitor is questionable.</p> <p>Given just how critical AI could be to banks' ability to deliver the kinds of experiences their customers will demand, each bank's AI decisions could determine whether it thrives or falters in the coming years.</p> tag:econsultancy.com,2008:TrainingDate/3396 2018-01-15T04:56:52+00:00 2018-01-15T04:56:52+00:00 Fast Track Digital Marketing - Singapore <p>This intensive 3-day course is a great place to start your digital marketing training. The course gives you a complete overview of the exciting areas of digital marketing, knowledge on how to effectively leverage the new media and integrate them into your overall marketing strategy.</p> tag:econsultancy.com,2008:BlogPost/69715 2018-01-11T11:24:00+00:00 2018-01-11T11:24:00+00:00 How Disney is approaching its digital transformation and fighting disruption Bola Awoniyi <p>In order to stave off the type of disruption that Netflix inflicted on Blockbuster, Disney has had to execute a multi year plan, that is now beginning to take shape.</p> <p>The result is an approach that at the very least provides a template for how to execute a digital transformation strategy in the face of competition.</p> <h3>Investing in the tech through acquisition</h3> <p>Through the success of Netflix, it has long been acknowledged that digital streaming will have a profound impact on how consumers find and watch video content.</p> <p>However, when Netflix started investing in buying and producing its own content, rather than just distributing content, it turned its content suppliers, including Disney and Fox, into competitors.</p> <p>Therefore in order to prevent Disney from becoming obsolete, or at the very least, a heavily commoditised part of the value chain, Disney invested in technology that allowed it integrate vertically, just as Netflix laddered up by producing its own content.</p> <p>This is something that Disney theoretically could have done by building the technology in-house. However, it opted to invest in BAM-tech, a sports video streaming technology on a multiyear basis, ultimately <a href="https://thewaltdisneycompany.com/walt-disney-company-acquire-majority-ownership-bamtech/">becoming majority owner in August 2017</a>.</p> <p>Not only did this approach allow Disney to save time, but it also enabled the business to acquire significant domain expertise, as BAMtech arguably has the best streaming technology of any organisation not named Netflix.</p> <p>However, while it gave Disney the technical backbone needed to create a Netflix competitor, there is more to a streaming service than just the technology.</p> <h3>Understand the new value proposition</h3> <p>While the end result of consumers watching content is the same, doing this via a streaming platform, instead of through a cable operator means a necessary change in how Disney views its value proposition.</p> <p>Rather than just creating differentiated video content that can be bundled into channels and sold to cable distributors and advertisers, a streaming service means a direct relationship with the consumer, ultimately cutting out the cable operators entirely.</p> <p>This is relatively similar to the experiences of commerce brands needing to consider their own direct to consumer channels, to the potential determent of sales through distributors and retailers.</p> <p>However, with the barrier to entry much higher for a streaming platform, it was important for Disney to test some assumptions first. This led to the company creating a subscription platform called "Disney Life" in 2015 as a place to experiment in a restricted numer of markets.</p> <p>Not only were there valuable lessons and experiences acquired in creating appropriate customer experiences and journeys, it provided core insights on what consumers were looking for. As early as March 2016, Disney CEO Bob Iger <a href="http://www.homemediamagazine.com/disney/bob-iger-we-ve-learned-lot-disneylife-37720">can be quoted saying</a> that the service has shown them that consumers are drawn to the television and film content, over the books and video games.</p> <h3>Improving the “product”</h3> <p>Despite this insight, the Disney Life experiment has not gone well from a commerical standpoint - and this was in large part due to the insight above.</p> <p>The key differentator for a streaming platform is providing access to content that isn't available anywhere else. However for the most part, most of the television and film content on the Disney platform still available through its cable and distribution partners.</p> <p>This realisation is what caused the media brand to decide that <a href="https://www.cnbc.com/2017/09/07/disney-ceo-iger-marvel-star-wars-to-go-to-disneys-streaming-service.html">Marvel and Star Wars titles will be streamed exclusively on the new Disney streaming platform</a> when it launches, after initially being on the fence regarding the distribution of the marquee franchises.</p> <p><img src="https://assets.econsultancy.com/images/0009/1581/black-panther-quad-poster.jpg" alt="" width="600"></p> <p>This is also the context in which the Fox properties were acquired - Disney now has (exclusive) access to an extremely large content library full of premium content, not only making their offering stronger, but also making Netflix weaker, as they remove most Disney and Fox programming from Netflix over the coming years.</p> <h3>Is Disney in the clear?</h3> <p>To be clear, the degree to which Disney was in any real trouble was small. However, this transformation is about more than just surviving the Netflix; this is Disney's play to maintain and solidify its position as the worldwide leader in media and entertainment.</p> <p>That said, despite Disney’s impressive execution of it’s strategy in such a short space of time, there is still more to go. Not only do they need to wait for the Fox acquisition to be approved, but they still need to create a streaming experience that works and scales, even at the expense of its cable oriented businesses.</p> <p>This is particularly key for a legacy organisation like Disney, as it will always have it’s golden era of television dominance as a benchmark - a dominance that still contributes a significant amount towards its profits.</p> <p>While it certainly has a responsibility to create as much value as possible, becoming a full stack streaming business is very different to being a content production house.</p> <p>However, what Disney seems to have recognised and what every other company that goes through its own transformation should appreciate, is that it should be judged not on its ability to replicate or surpass the profits of its glory days, but on its ability to effectively compete today and beyond.</p> tag:econsultancy.com,2008:BlogPost/69687 2018-01-05T14:46:59+00:00 2018-01-05T14:46:59+00:00 Four digital transformation secrets, revealed Jeff Rajeck <p>So what have practitioners learned about digital transformation that most of us don't already know? What are the secrets to <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a> success?</p> <p>To find out, Econsultancy recently invited dozens of client-side marketers to discuss their digital transformation experiences. At a roundtable hosted by Damien Cummings, CEO of Peoplewave and Principal Consultant at Econsultancy, participants provided insights about how digital transformation really works, with the main points summarized below.</p> <h3>1) Digital transformation is really about survival</h3> <p>The first secret revealed by attendees is that digital transformation is not about getting ahead of the competition.  Instead, for most firms, digital transformation is started to head off bankruptcy.</p> <p>As one participant said, 'with our digital transformation programme, we are trying to disrupt ourselves before being disrupted by others'.</p> <p>The reason that struggling firms are more likely to adopt digital transformation is that transformation is not high on the priority list of profitable businesses. Instead, successful firms are under pressure to deliver short-term results, not long-term transformation strategies.</p> <p>Marketers attempting to start digital transformation at their companies were encouraged, therefore, to highlight negative metrics in their reports and point out weaknesses in the current business strategy.</p> <p>'Fear is a great motivator' quipped one participant.</p> <p><img src="https://assets.econsultancy.com/images/0009/1271/digital-transformation-1.jpg" alt="" width="600"></p> <h3>2) There is more than one way to get buy-in</h3> <p>We've often heard that top-level buy-in is required for any serious digital transformation effort, but those who have digital transformation programmes underway offered some tips on how to get it.</p> <p>First off, if you are petitioning the management, they said, then you need to go beyond presenting the benefits and showing profit projections. Instead, marketers need to talk about end-to-end processing and the key decisions that the CEO and his team have to make in order to make digital transformation happen. Spell it out for them, said one delegate.</p> <p>Furthermore, appealing to the c-suite was not the only way that marketers were able to get support for digital transformation. Another popular technique for getting buy-in was the 'bottom-up' approach. Here, marketers simply enabled customer-facing staff with new digital tools and data and let them initiate the changes in processes. This created an environment where management had to either go along with the changes or appear as if they were dragging their heels.  And these days, few people want to appear to be technology laggards.</p> <p><img src="https://assets.econsultancy.com/images/0009/1272/digital-transformation-3.jpg" alt="" width="600"></p> <h3>3) Agencies are not typically used for digital transformation</h3> <p>Veterans of digital transformation also revealed that agencies, while great enablers, struggle to drive change at organisations.  Because of this, they advised that agencies should not be relied on for digital transformation projects.</p> <p>Instead, management needs to review the skills and competencies they have internally and hire the people they need to complement the team.</p> <p>Agencies, according to participants, should continue to be used for outsourcing marketing functions. They can even be used to a greater extent once transformation is underway, freeing up resources.</p> <p><img src="https://assets.econsultancy.com/images/0009/1273/digital-transformation-2.jpg" alt="" width="600"></p> <h3>4) No one has figured out the best organisational structure yet</h3> <p>Attendees who were currently working on transformation could not agree on the ideal structure for a new, digital organisation.</p> <p>Some had implemented a 2-speed model where transformation was taking place in 'labs' outside of the reporting structure and slowly implementing changes in the main business. Others said that it was necessary to integrate innovation teams into the organisation straight away so that everyone was on the same journey.</p> <p>While no consensus on the ideal structure was reached, most agreed that the best overall approach was to train up internal staff, empower them to make changes, and trust them to figure out how best to transform the organisation.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank our table host Damien Cummings, CEO of Peoplewave and Principal Consultant at Econsultancy for guiding the discussion and eliciting the secrets of digital transformation from our many delegates.</p> <p>We'd also like to thank all of the marketers who attended Digital Cream Singapore 2017 and shared their valuable insights. We hope to see you all at future Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0009/1274/digital-transformation-4.jpg" alt="" width="600"></p> <p><em><strong>Based in London and want face-to-face digital transformation training? Explore <a href="https://econsultancy.com/training/courses/digital-transformation-in-practice">our Fast Track course</a>.</strong></em></p> tag:econsultancy.com,2008:BlogPost/69633 2017-12-13T15:00:00+00:00 2017-12-13T15:00:00+00:00 The six-point guide to data-driven transformation Jeff Rajeck <p>Reason being, unless data is captured, shared and utilized, any increased adoption of digital technology will be in vain. A competitor with the better data will most likely win in the end.</p> <p>With this in mind, how can companies transform both digitally and with data? What are the issues that need to be considered?</p> <p>To find out, Econsultancy recently invited dozens of marketers to discuss this and other topics over roundtable discussions.  At a table hosted by data experts David Brigham, Analytics Director, Mirum, and Zak Agus, Sales Director, SEA, Tealium, brand marketers revealed their thoughts on what was driving data-driven transformation at their organisations. The main points from the discussions are summarized below.</p> <p>Before we start, though, we'd like to let you know about upcoming training which may help you with your data-driven transformation. Econsultancy is offering an Advanced Mastering Analytics course on April 8th, 2018 in Singapore. <a href="https://econsultancy.com/training/courses/advanced-mastering-analytics-training-singapore/dates/3365/">Click here for more information and to book your spot</a>.</p> <p>So what do organisations need to consider when driving data-driven transformation?</p> <h3>1) Breaking down data silos</h3> <p>The first thing participants asserted was that there is no 'one size fits all' approach to getting data flowing through an organisation. Every organisation is different and so each data-driven transformation project needs to take the organisational structure into consideration first.</p> <p>Yet despite these differences, nearly everyone said that departmental data silos are perhaps the biggest barrier for companies aiming to harness the power of data.</p> <p>In order to get over this hurdle, participants argued, the transformation team must examine all of the company's data assets and determine which department has ownership and who already uses the data. Then, they should ensure that transformation has buy-in at the highest level so that management cannot unreasonably stand in the way of future data requests.</p> <p><img src="https://assets.econsultancy.com/images/0009/0883/data-driven-transformation-4.jpg" alt="" width="800" height="533"></p> <h3>2) Breaking down insight silos</h3> <p>Data silos, however, are not the only problem faced by data-transformation teams. Another issue which attendees brought up is that companies also have 'insight silos'.</p> <p>An insight silo occurs when one department has data analysis expertise which is lacking in other areas of the organisation, and is unwilling or unable to share.</p> <p>According to attendees, this situation occurs quite often at airlines. Airlines have large teams of pricing analysts and separate teams of marketing analysts who work independently of each other, with little sharing of insights.</p> <p>So, for organisations to benefit from their talent, the data-transformation team should also identify where the analyst talent sits and find ways to get the teams to collaborate.</p> <h3>3) Finding industry 'data pools'</h3> <p>For data that does not exist within the organisation, the transformation team will have to look elsewhere.</p> <p>Existing solutions, such as data management platforms (<a href="https://www.econsultancy.com/blog/68769-what-s-the-difference-between-crm-marketing-automation-and-dmps">DMPs</a>), help but often they are expensive and may actually offer too much data.</p> <p>A new alternative to DMPs, according to participants, is for companies in the same vertical to share data between each other so that everyone benefits from having access to relevant and relatively inexpensive data.</p> <p>Named 'data pools' by our subject matter experts, these new ways of obtaining data inexpensively should also be researched by the data transformation team.</p> <p><img src="https://assets.econsultancy.com/images/0009/0884/data-driven-transformation-3.jpg" alt="" width="800" height="533"></p> <h3>4) Resourcing the transformation</h3> <p>In addition to identifying the talent already present within the organisation, participants indicated that data-driven transformation often requires people with new skills, such as data scientists.</p> <p>As finding the right people for these roles is often time-consuming and difficult, one suggestion was that an organisation going through transformation should first hire a 'data guru' who will be responsible for upskilling existing staff.  In this way, expertise <a href="https://econsultancy.com/blog/68487-how-can-companies-attract-and-retain-talent-in-the-digital-age/">can be built-up in-house at the same time new talent is being recruited</a>.</p> <h3>5) Proving data-driven ROI</h3> <p>Proving return on investment (ROI) is now expected in most marketing departments, but it is a relatively new topic for analysts.</p> <p>For a small project costing a few thousand dollars and lasting 3 months, ROI may not be a big issue but for a long-term data transformation costing a few million dollars, ROI should certainly be a consideration.</p> <p>To manage this requirement for ROI, data-driven transformation teams should be prepared to defend their investments in technology and resources. The team will need to demonstrate how their approach will either increase revenue or decrease costs, something which most analysts have not yet given much thought, said one participant.</p> <p><img src="https://assets.econsultancy.com/images/0009/0885/data-driven-transformation-1.jpg" alt="" width="800" height="533"></p> <h3>6) Communicating the limits of data-driven transformation</h3> <p>Finally, attendees said that the transformation team should set departmental and management expectations about the potential and the limits of data-driven transformation.</p> <p>For example, a marketing department who wants to invest in personalisation data must first understand the risks of becoming too intrusive through excessive use of personal data.</p> <p>Additionally, there will come a point when additional data and analytics will only achieve incremental results, and business heads must be made aware when that point is reached. As one participant put it, "you can't continually invest in data and expect to get the same results every time."</p> <p>So, while teams are talking up the potential of a data-driven transformation they must also be careful not to overpromise and subsequently underdeliver.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank our table host David Brigham, Analytics Director, Mirum and subject matter expert Zak Agus, Sales Director, SEA, Tealium for guiding the discussion and providing real-world examples of how brands are achieving marketing automation excellence.</p> <p>We'd also like to thank the table sponsor, Tealium, and all of the marketers who attended Digital Cream Singapore 2017 to share their valuable insights. We hope to see you all at future Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0009/0886/data-driven-transformation-5.jpg" alt="" width="800" height="600"></p> tag:econsultancy.com,2008:BlogPost/69598 2017-11-23T14:26:20+00:00 2017-11-23T14:26:20+00:00 Four steps to successful digital transformation Jeff Rajeck <p>But every journey requires preparation and it can be difficult to know what organisations should do before getting started. What exactly needs to be in place for digital transformation to work?</p> <p>To answer this question, Econsultancy recently brought together a few veterans of digital transformation to discuss what organisations need to do before they take that first step.</p> <p>Below are the points summarized from the discussion, but as this was just one of the topics from the day <a href="https://econsultancy.com/hello/ask-me-anything-digital-transformation-getting-started-webinar-resources/">please do watch the whole discussion here</a>.</p> <p>So, the question was posed to both Damien Cummings, Lead DT Consultant at Econsultancy and CEO at Peoplewave, and Eu Gene Ang, Principal Trainer, Econsultancy - what are the basic ingredients required for a successful digital transformation?</p> <h3>1) Think differently</h3> <p>Damien was quick to answer that <strong>there is no set playbook for digital transformation</strong>. The process is different for B2B and B2C companies and can also be different, depending on the industry.</p> <p>He continued that <strong>digital transformation was typically the result of a catastrophe</strong>. Either one that had happened or one that was about to happen (e.g. Google/Uber/AirBnB entering your market).</p> <p><strong>The first essential ingredient of such a situation is for people to think differently. </strong>People in the organisation must first analyze their people, technology, go-to-market strategies, and all of the other things which they are comfortable with - and think about how these can be changed to meet the threat.</p> <p><img src="https://assets.econsultancy.com/images/0009/0622/digital-transformation-1.jpg" alt="" width="615"></p> <h3>2) Understand the details of your journey</h3> <p>Eu Gene followed up with another helpful tip.  <strong>Digital transformation, he says, must start with an understanding of why you are going through it.</strong></p> <p>It could be, as above, that your company's market is changing or it could be that your company is struggling to be profitable with all of the manual processes in place.</p> <p>Regardless, in order for digital transformation to be successful a number of details need to be thought out in advance: </p> <ul> <li> <strong>Vision</strong>: What does the end result look like?</li> <li> <strong>Skillsets</strong>: What do you have? What do you need?</li> <li> <strong>Resourcing</strong>: Who is going to do the work?</li> <li> <strong>Incentive to change</strong>: Who in the organisation is incentivized to change? Who needs more incentives?</li> <li> <strong>Action plan</strong>: What are some of the first concrete actions you will take? </li> </ul> <p> <img src="https://assets.econsultancy.com/images/0009/0623/digital-transformation-2.jpg" alt="" width="615"></p> <h3>3) Have a strategy</h3> <p>Once you know the details, Damien continued, then you need to put a strategy in place.  </p> <p>This strategy should go beyond the steps you are taking toward digital transformation, but should instead encompass the whole company. For example, how is your company going to position itself to fend off threats from digitally-savvy companies?</p> <p>Additionally, you need a people strategy. In addition to evaluating the skillsets mentioned by Eu Gene, you also need to make sure you have the right level of people. <strong>If you want to compete with companies like Google, then you need people with talent and training at that level.</strong></p> <p>Finally, you do need a technology strategy. Without a step change in technology and new sources of data, your plan will not have enough innovation for it to succeed in the long term.</p> <p><img src="https://assets.econsultancy.com/images/0009/0624/digital-transformation-3.jpg" alt="" width="615"></p> <h3>4) Don't worry about processes, empower your employees</h3> <p>Finally, Damien added that with the right strategy you won't need to worry so much about processes.</p> <p><strong>If you have great people with the right training who understand the strategy, then they will develop the right approach to implementing your strategy.</strong></p> <p>This is particularly important for companies whose markets change quickly. As things evolve more rapidly and data becomes more real-time, then the company's reaction must be more agile.  And for this to happen, you must empower employees to make the right decisions.</p> <h3>So...</h3> <p>So, according to our experts, before launching into digital transformation ensure that you have a: </p> <ol> <li>New, resilient approach to your market</li> <li>A solid idea about why you need to transform</li> <li>A strategy which encompasses the whole company, and</li> <li>People who can execute the strategy. </li> </ol> <p>Then you will have the key ingredients in place for a successful digital transformation project.</p> tag:econsultancy.com,2008:BlogPost/69569 2017-11-13T15:00:00+00:00 2017-11-13T15:00:00+00:00 Messaging platforms could even boost NPS – businesses should get on-board now Blake Cahill <p>With 1.2 billion people using the Messenger app today and a staggering 2 billion messages <a href="https://en-gb.facebook.com/business/products/messenger-for-business">sent between people and businesses each month</a>, this bet has well and truly paid off. </p> <p>And he wasn’t the only one. Tencent’s <a href="https://econsultancy.com/blog/67490-10-things-you-didn-t-know-about-wechat">WeChat</a>, launched in 2011, was an early adopter of the integrated model, partnering with businesses and restaurants to provide users an extended offering before even the likes of Facebook. Although its user base isn’t as broad as the social media site or Whatsapp, in its native China it is expected to have a staggering <a href="https://www.emarketer.com/Article/WeChat-Users-China-Will-Surpass-490-Million-This-Year/1016125">84.5% market capitalisation</a> on all mobile messaging apps this year. </p> <h3>The move to Messenger</h3> <p>As such a large proportion of communication traffic between businesses and consumers now plays out across messaging channels, companies need to recognise and act on the fact that today’s consumers often prefer to use messaging apps to get in touch with them.</p> <p>Research into our own consumer base here at Philips underscored this preference, revealing that our customers want their brand interactions with us to be low effort and humanised. These criteria are instantly met by messaging channels which are easy to use and enable a business to communicate in an empathetic, human manner with their customers.</p> <p>It therefore made complete business sense for us to incorporate messaging channels into our customer care strategy as such channels map directly into the needs of our customers; facilitating ease of conversation with our customer care team, all at the tap of a touch screen.</p> <h3>Impact of messenger channels on Net Promoter Scores</h3> <p>For businesses looking to satisfy their customer base and interact with them in the way they want, while achieving high Net Promoter Scores (NPS) at the same time, messaging channels are the way forward.</p> <p>Testament to this, we have seen that across markets, NPS scores are consistently high for consumers using instant messaging applications to communicate with us; in many cases higher than when using traditional channels like email. This stands to reason as messenger apps can be used from any device at any given moment, giving consumers the instantaneous, human interaction they are looking for.</p> <p>Messenger apps are, after all, the way that we interact with our friends and family, so it’s an easy and natural transition to use these as a means to communicate with businesses too.</p> <h3>Frictionless customer-to-business interaction</h3> <p>Despite all the best intentions, barriers to successful customer interaction remain, such as Interactive Voice Response (IVR) Menus or difficulties finding relevant information on websites. To combat this, we found that messaging channels enable consistent, frictionless interactions.</p> <p>One benefit of is that customers can easily share photos or videos with our customer care agents – just like sharing photos with their friends. This enables our teams to best respond to questions in real-time, with increased accuracy.</p> <p>Additionally, by using messaging apps, conversations are digitally documented, meaning that consumers can leave a conversation and come back to it as they wish, without losing any of the information they previously shared with us.</p> <h3>Making the most of messenger: Things to keep in mind</h3> <p>Our experience to date has provided some valuable insights and lessons in addition to the obvious benefits. Firstly, we have seen that to truly derive value from instant messaging apps, you need to have a centrally aligned consumer care team. Put simply, it’s vital to work closely together with all marketing teams as many questions are the result of wider company activities such as product offers, or campaigns. If this doesn’t happen, you will be unable to respond as rapidly to inbound enquiries on new campaigns or products.</p> <p>We have also seen the importance of being ready for the volume of messages and inbound requests that opening a messaging channel permits. At Philips, instant messages now exceed the volume of inbound messages from some other channels, and this shift has happened very rapidly. Therefore, other businesses considering messaging apps need to be ready and have the resources in place to manage this new conversation flow.</p> <p>Recently, Nielsen found that <a href="https://messenger.fb.com/blog/messenger-highlights-from-f8-2017/">53% of people surveyed</a> stated that they are more likely to do business with an enterprise they can message, highlighting the importance of messenger apps like Facebook and WhatsApp to remain competitive in today’s digital age.</p> <p>For those businesses yet to launch a channel, the message from the Nielsen study comes across loud and clear. Get on board now and reap the rewards that interacting with your consumers via messenger affords or risk falling behind. </p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/67697-does-the-rise-of-messaging-apps-mean-brands-need-a-bot-strategy/">Does the rise of messagign apps mean brands need a bot strategy?</a></li> <li><a href="https://econsultancy.com/blog/68363-will-messaging-apps-be-the-next-walled-gardens/">Will messaging apps be the next walled gardens?</a></li> </ul> tag:econsultancy.com,2008:TrainingDate/3366 2017-11-13T03:50:09+00:00 2017-11-13T03:50:09+00:00 Fast Track Digital Marketing - Singapore <p>This intensive 3-day course is a great place to start your digital marketing training. The course gives you a complete overview of the exciting areas of digital marketing, knowledge on how to effectively leverage the new media and integrate them into your overall marketing strategy.</p> tag:econsultancy.com,2008:TrainingDate/3354 2017-11-13T03:06:13+00:00 2017-11-13T03:06:13+00:00 Fast Track Digital Marketing - Singapore <p>This intensive 3-day course is a great place to start your digital marketing training. The course gives you a complete overview of the exciting areas of digital marketing, knowledge on how to effectively leverage the new media and integrate them into your overall marketing strategy.</p> tag:econsultancy.com,2008:BlogPost/69565 2017-11-06T13:30:00+00:00 2017-11-06T13:30:00+00:00 From zero to CMO: Five essential steps Jeff Rajeck <p>But the road to the top isn't always clear and many wonder what it takes to become a CMO. Is it just a matter of becoming a great marketer and then applying for the position when there is an opening?</p> <p>Apparently not, according to Damien Cummings, former CMO and currently CEO of Peoplewave. At our recent Digital Intelligence Briefing in Singapore, Damien dispelled myths about how people get to the top of the marketing chart and laid out the five steps all aspiring CMOs must go through to even be considered for the position.</p> <h3>Step 1: Understand the CMO's job</h3> <p>The role of the CMO is not, according to Damien, just the top marketing manager. Instead, the CMO is now expected to be the CGO, or chief growth officer<strong>.</strong></p> <p>This means that the CMO, in addition to leading marketing, must also know how to grow the company's business, and this requires a whole different set of skills.</p> <p>Those who are aiming to be a CMO in the future, then, need to understand all aspects of the business: </p> <ul> <li>Sales</li> <li>Go-to-market</li> <li>Market share</li> <li>Margin</li> <li>Customer acquisition</li> <li>Customer experience </li> </ul> <p>And they also need to know how to plan and execute strategies which take each of these disciplines into consideration.</p> <p>So the first thing to know is that the CMO role is not just about being a great marketer. You must be an excellent business strategist as well.</p> <p><img src="https://assets.econsultancy.com/images/0009/0200/becoming_CMO_1.jpg" alt="" width="800" height="533"></p> <h3>Step 2: Know the whole marketing career path</h3> <p>Damien continued by explaining that there are four phases of a marketing career and aspiring CMOs must ideally experience each of them on their way to the top.</p> <h4>Entry level</h4> <p>First off, there is entry-level marketing. Most people start here and have a basic understanding of marketing principles and how digital fits in.</p> <p>In order to move on from this phase, though, marketers who want to be CMO must be curious and treat their entry-level experience as an expansive learning experience.</p> <h4>Mid-career</h4> <p>After around 5 to 10 years on the job, marketers may find that they are not actually doing much marketing. Instead, they have outsourced their jobs and are busy managing staff and agency partners who are responsible for most of the creative, placement, and analytics.</p> <p>Marketers looking for a CMO spot one day should, at this stage, develop a laser-like focus on customer acquisition metrics and be able to talk at length about related costs on various channels</p> <h4>Senior marketer</h4> <p>After 10 years, marketers gunning for the CMO role will have moved on from managing day-to-day marketing and be more focused on brand leadership, customer experience, and providing inspiration to other marketers.</p> <p>Senior marketers should also be able to write and execute a marketing plan, not just aim to hit sales targets.</p> <p>Additionally, those wanting to be promoted should be known for something besides customer metrics in the organisation. They should associate themselves with projects such as digital transformation, new data initiatives, or proving marketing return on investment (ROI).</p> <h4>CMO</h4> <p>Then, at the fourth stage, the aspiring marketer reaches their goal and is the chief marketing officer.</p> <p>This role is very different from the three which precede it as the focus of the CMO, as mentioned previously, is on growing the company's top and bottom line as well as managing change throughout the organisations.</p> <p>Those who desire this job must realize that being a CMO requires crafting long-term (5 to 10 years) plans and delivering it using large-scale project management, often encompassing the whole organisation. Those who lack a passion for managing enterprise-wide projects may want to rethink their career goals.</p> <p><img src="https://assets.econsultancy.com/images/0009/0202/becoming_CMO_3.jpg" alt="" width="800" height="533"></p> <h3>Step 3: Acquire the required soft skills</h3> <p>Besides knowing the career path, marketers who want to be considered for a CMO role need to be strong in three areas:</p> <h4>a) Vision</h4> <p>This includes setting short and long-term targets and explaining complex strategies through frameworks</p> <h4>b) Leadership</h4> <p>CMO candidates should always be able to do the job of everyone on the team - and be able to put aside their management hat and do them on a moment's notice.  At the same, they need to be a thought leader and one step ahead of everyone else.</p> <h4>c) Digital outlook</h4> <p>Nowadays, marketers aiming for the top need to be digitally savvy and be considered a leader in their company's digital transformation programme, never a follower.</p> <h3>Step 4: Talk the language of data</h3> <p>Moving on from everyday tasks and soft skills, CMO-bound marketers should also lead company-wide initiatives to make data an essential part of marketing.</p> <p>They need to do the work which makes data: </p> <ul> <li> <strong>Real-time:</strong> So that marketers can get digital, social, marketing, sales, and service data on a real-time basis.</li> <li> <strong>Aggregated:</strong> So that data is available on desktop and mobile and can be used to make decisions wherever marketers are</li> <li> <strong>Visual:</strong> Because if data is not seen, it is not used.</li> <li> <strong>Physical:</strong> Finally, marketers should put data at the centre of your sales, marketing and service centres.   </li> </ul> <p>True leaders in this space often push for a 'command centre' which brings together brand marketers, agency partners, and data display for social and web analytics.</p> <p><img src="https://assets.econsultancy.com/images/0009/0203/becoming_CMO_2.jpg" alt="" width="800" height="533"></p> <h3>Step 5: Be ready to lead change management</h3> <p>Damien's final point was that the CMO is the most likely person in an organisation to lead digital transformation because they will typically have flexible budgets, a customer focus, and the ability to run small tests unlike the CEO, CTO, or CIO.</p> <p>But leading change means more than knowing how to spend budget. One of the most important parts of leading the change is to have the soft skills (see above) to foresee who in the organisation will be the loser due to the change process and then work hard to make sure they will still have a place in the transformed company.</p> <p>Having this level of personal influence and leadership requires that aspiring CMOs have strong communication skills and that their leadership style is, perhaps ironically, more personal and less digital.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank Damien Cummings, CEO of Peoplewave, for his excellent presentation on the steps required for marketers to become a CMO.</p> <p>We'd also like to thank all of the marketers who attended the presentation and helped with this post by asking many intelligent questions.</p> <p>We hope to see you all at future Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/9938/3.jpg" alt=""></p>