tag:econsultancy.com,2008:/topics/digital-transformation Latest Digital Transformation content from Econsultancy 2016-07-19T11:18:49+01:00 tag:econsultancy.com,2008:BlogPost/68066 2016-07-19T11:18:49+01:00 2016-07-19T11:18:49+01:00 Top 100 Digital Agencies 2016: The state of the industry Amy Rodgers <h3>The top 10</h3> <p>The digital agencies included in our Top 100 have had an impressive year. Total fee income surpassed the £2bn mark.</p> <p>Up by 20%, this growth is being accounted for at the top of the table rather than the bottom, which continues to see flux with new entrants and exits as acquisitions and mergers take place. </p> <p>The weighting of fee incomes at the top of the table is more pronounced than in 2015, with the top five agencies commanding 34% of the entire fee income of the 100.</p> <p>Half of the total can be explained by just nine agencies.</p> <p>This year, SapientNitro has slipped from the number one spot for the first time since 2007.</p> <p>However, it must be noted that it was not able to disclose 2015 financials after the acquisition by Publicis Group last year.</p> <p>As a result Sapient's fee income has remained static while that of other agencies around them has increased.</p> <p><em>The top 10 digital agencies</em></p> <p><img src="https://assets.econsultancy.com/images/0007/7050/top_10_agencies.png" alt="" width="800" height="379"></p> <p>An increase of around the same proportion as last year would put it almost exactly equal to IBM iX, so it will be interesting to see the standings next year if SapientNitro is able to disclose its financials.</p> <p>In addition, a number of the top 20 firms from the 2015 ranking were unable to disclose financials or unwilling to participate this year.</p> <p>This sees the loss of iProspect and Salmon from the Top 10; both part of large agency networks which tend to come with complex financial organisation.</p> <p>Though we still believe fee income to be the most accurate way of ranking digital agencies, the difficulties in calculating and disclosing the value does result in inevitable omissions through the table.  </p> <h3>The rise of the consultancy</h3> <p>Though the big agency groups are still very much present at the top of the ranking, a notable shift in recent years has been the rise of consultancy firms moving into the digital agency field.</p> <p>This shift has developed as the term <a href="https://econsultancy.com/training/digital-transformation/">‘digital transformation’</a> has come to the fore and the need for technological and strategic changes led by digital have been realised. </p> <p>This year’s top five shows that the emerging dominance of consultancies continues. IBM iX have been joined by Accenture Interactive (a new entrant for this year) and Deloitte Digital.</p> <p>All historically consulting firms in IT and management, these giants have bridged the gap between technology consulting and traditional digital agency work with digital transformation services, and are fast expanding their provision to include a full spectrum of digital marketing capabilities. </p> <p>Agencies with this background are well-placed to be able to guide businesses through ‘transformative’ changes; changes that have become necessary due to the vast amount of technology associated with marketing and the need to be agile enough to embrace and onboard appropriate technology quickly.</p> <p>Growing technology stacks and increasingly cloud-based services are core parts of the very modern form of marketing that marketers are grappling with today, and which often require guidance to move towards.</p> <p>In fact, only one of the top five agencies has a ‘traditional’ agency background, which explains why many in the industry are worried about competition from this new breed of agency and the prospect of adapting to a changed role. </p> <p>When asked about challenges for the year ahead, one agency said:</p> <blockquote> <p>Our challenge is two-fold. With management consultancies continuing their expansion into the digital services arena, it’s the clients with the large digital transformation briefs and corresponding deep pockets, which are being seduced by the big consultancy brands.</p> </blockquote> <p>The rise of the consultancy model of digital agency has developed within an environment of wider agency change.</p> <p>In 2016, agencies are describing themselves as having a new role and a new relationship with their clients. </p> <blockquote> <p>We’ve seen more and more businesses hiring skills that were previously unique to agencies (such as digital or creative) in-house, meaning that clients are savvier and less inclined to outsource projects they think they can do themselves.</p> <p>This has led to clients wishing to work with agencies on a project-by-project basis rather than the more traditional retained approach and so agencies have had to up the ante broadening their services and innovating their offerings.</p> </blockquote> <p>A number of factors are playing a part in this changing role:</p> <p><strong>1. Digital skills are improving in-house</strong></p> <p>Brands have realised the need for training and skills within their internal staff, and with this improved understanding of digital has come increased expectations of their agencies to deliver excellence.</p> <p>Clients are now participating in many stages of the agency’s work, increasing the pressure on agencies as they become more scrutinized by their clients.</p> <p>Digital transformation strategies, now present in the majority of companies in some form or other, are connecting the dots internally between departments, technologies and strategies.</p> <p><em>The top 10 full service agencies</em></p> <p><img src="https://assets.econsultancy.com/images/0007/7049/Top_10_full_service_agencies.png" alt="" width="800" height="378"></p> <p>This creates efficiencies but agencies have also recognised a greater sophistication and complexity in the briefs they are given.</p> <p>As brands become increasingly aware of everything they can do with their data, across channels and devices, the role of agencies becomes to consult on which they should, and equally shouldn’t, be using.</p> <p>One agency referred to their perceived need to offer a ‘whole system’ way of thinking that delivers a coherent, channel neutral experience for the consumer, and the client.</p> <p>This step change is not only affecting the way agencies work with clients, but also causing them to look internally.</p> <p>One agency explained: “We need to find the right balance of structure and process versus the need for fluidity and dynamism to service our ever-evolving client needs.</p> <p>"The agency landscape is facing a rethink and having told our clients that technology is changing their communications relationships, we must continue to turn the spotlight on ourselves by trialling different models to support an increasingly diverse range of outputs that stem from a cohesive narrative.”</p> <p><strong>2. Growth is doing battle with agility</strong></p> <p>The age of digital – the <a href="https://econsultancy.com/reports/a-marketer-s-guide-to-the-internet-of-things/">internet of things</a>, the cloud, big data, interconnectivity – means an age of agility for both agencies and their clients.</p> <p>Agility was spoken of as both a challenge and an opportunity by Top 100 agencies.</p> <p>An opportunity, in that agile strategies enable ideas to be realised and tested rapidly on a small scale, producing a minimum viable product that can be brought to market quickly.</p> <p>This encourages creativity and productivity within teams and maintains an innovative culture.</p> <p>However, agility rarely comes hand in hand with growth, and therein lies the challenge. Agencies that are very large can struggle with remaining agile as teams grow and communication begins to require more effort.</p> <p>The smaller, independent agencies in the ranking would claim that it is their independence (and therefore relatively small size) that allows them to maintain their agility.</p> <p>The agency holding companies continue to acquire independent specialists, adding to their expertise and maintaining their dominance, but this does justifiably provoke questions around how agile they are able to be. </p> <p>However, their success in terms of fee income would suggest that red tape is not affecting them financially so far, despite the claims of the independents.</p> <p>The Top 100 agencies predict an average of 24% increase in fee income over the coming year.</p> <p>Growth, despite its threat to agility, is seen as a key opportunity for agencies over the coming year. International expansion in response to escalating demand was highlighted by a number of the Top 100.</p> <p>Greater global connectivity and at the same time greater localisation and personalisation of content has created a need for campaigns with international scope, but regional relevance.</p> <p><strong>3. Agencies continue to struggle with recruitment</strong></p> <p>This growth opportunity is being hampered by the perennial challenge of recruitment.</p> <p>Overwhelmingly the biggest challenge facing agencies is in hiring the best talent to enable them to keep doing innovative and engaging work.</p> <p>Digital is a relatively young industry and always developing, meaning that <a href="https://econsultancy.com/blog/67263-skills-shortage-the-biggest-barrier-to-digital-progress-overtaking-legacy-systems/">specialist skills are scarce</a> and competition strong.</p> <p>Increased client expectations mean that the pressure on agencies to find ‘the best’ is ever-present.</p> <p>When there exists a shortage of skills, finding those top individuals and enticing them to choose you, is a consistent challenge.</p> <p>Many of the challenges raised by Top 100 agencies circle back to recruitment.</p> <p>The emergence of consulting firms is increasing competition, as is the movement of skills from agency to client-side as companies strengthen their in-house capabilities.</p> <p>One agency explained:</p> <blockquote> <p>It’s never been a more competitive landscape into which we now have to recruit and retain people.</p> <p>Their choices of employer range so broadly that we find ourselves competing against huge technology companies, exciting-sounding start-ups and traditional agencies of all types, as well as other digital agencies and more direct competitors.</p> </blockquote> <p>The digital agency industry is evidently one which is changing, and though change is not always welcome or easy to adapt to, there is no denying that it is an exciting time for digital marketers.</p> <p>Technologies such as <a href="https://econsultancy.com/reports/a-marketers-guide-to-virtual-reality/">virtual reality</a>, geo-location and the Internet of Things (IoT) are opening up exciting new opportunities for marketing campaigns.</p> <p>Even so, the IoT has probably not yet moved to the heart of most agencies and their work.</p> <p>On the contrary, many are now doing good work with mobile as standard; campaigns which, importantly, have produced real results.</p> <p>Though <a href="https://econsultancy.com/reports/a-marketer-s-guide-to-wearable-technology/">wearables</a>, virtual reality and <a href="https://econsultancy.com/blog/67745-15-examples-of-artificial-intelligence-in-marketing/">artificial intelligence</a> may not yet be close to their full potential, it is down to agencies, with the necessary knowledge, skills and passion, to drive brands towards them.</p> <p>Technology advances mean the speed of advance is exponential.</p> <p>R/GA, the peer-selected ‘most respected agency’ for 2016 is using this speed to great effect in its Accelerator programme:</p> <blockquote> <p>The speed at which start-ups can be created and grown has unlocked a new source of innovation for brands – the accelerator.</p> <p>This offers the ability to rapidly address ‘third horizon’ innovation. R/GA’s accelerator programme is delivering transformative ROI in months where other approaches can take years.</p> </blockquote> <p>Possibly this is where the larger agencies who want to grow can compete in an environment where agility is key.</p> <p>Certainly ensuring innovation will be vital to remaining competitive in an industry where technological advances are having such an impact. </p> <p>With the role of agencies changing and in-house skills increasing, the opportunity for agencies over the coming year will be to make the most of these increased skill levels, utilising the ambition they generate within companies to find new ways to engage with the consumers of today.</p> <p><strong><em>This article was originally published in Econsultancy’s <a href="https://econsultancy.com/reports/top-100-digital-agencies/">Top 100 Digital Agencies 2016 Report</a>.</em></strong> </p> tag:econsultancy.com,2008:BlogPost/68025 2016-07-18T09:50:00+01:00 2016-07-18T09:50:00+01:00 How hotels can create a more convenient customer experience Anton Schubert <p>In my previous digital hospitality blogs I talked about the need for both <a href="https://econsultancy.com/blog/67493-how-digital-can-revolutionise-the-customer-experience-in-travel-leisure/">recognition</a> and <a href="https://econsultancy.com/blog/67658-how-hotels-can-personalize-the-customer-experience-to-compete-with-airbnb/">personalisation</a> within the hospitality industry - mega trends globally in most consumer facing industries as well as in our society as a whole. </p> <p>Let’s face it; most of the digital tools we use these days require registration and personal profiling, forcing us to allow others to track every detail of who we are and how we live. Companies use this data to build a relevant and meaningful dialogue with us to create brand loyalty, and when done well, this is truly helpful.</p> <p>There is an ongoing need for convenience, too, and during the past half-century we have seen incredible advances in our never-ending desire to make things easier and faster.</p> <p>However, many of us do still feel inconvenienced is when we stay in hotels. The hospitality industry still manages to get some of the most basic things wrong.</p> <ul> <li>You’re trying to check out after a business trip only to find the queue is some 40 people long.</li> <li>You need to access your booking email to check in with your kids in tow but the Wi-Fi code is tediously long and complicated.</li> <li>Which light switch is for which lamp? Where is the mains plug?</li> </ul> <p>Regardless of whether your stay is for business, pleasure or necessity, there isn't an excuse for these issues of inconvenience. </p> <h3>So what can hotels do to solve these convenience problems?</h3> <p>Well as a designer you've got to put yourself into these contextual situations and consciously force yourself to create desirable solutions.</p> <p>It's an exercise in mapping all possible scenarios and designing in fixes or fall back strategies if things go wrong.</p> <p><strong>Check-in</strong></p> <p>Hilton Worldwide hotels are one of the many hotel chains now <a href="https://econsultancy.com/blog/67930-12-outstanding-mobile-customer-experiences/">leveraging mobile</a> to bring super convenience to their guests.</p> <p>For the frequent business traveler especially, being able to skip the check-in and out queues without ever talking to another person is a very welcome development.</p> <p>Of course this kind of service also alleviates a considerable amount of work from front desk staff allowing them to focus on more valuable face-to-face interactions.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6672/third_image-blog-flyer.png" alt="" width="470" height="248"></p> <p><strong>WiFi</strong></p> <p>Scandic hotels in the Nordics listened and responded to the frustration of their guests, who had to type in long codes from paper vouchers given at front desk.</p> <p>The Scandic 'Easy Wi-Fi' allows returning guests the benefit of clicking one button to reconnect whenever they visit a Scandic hotel. Guests only provide an email or phone number once, the first time they sign up to the service.</p> <p>Again this very simple kind of digital initiative not only meets a convenience need from the guest, but also saves back of house operations from managing millions of printed paper codes. </p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6673/wifi_scan-blog-flyer.png" alt="" width="470" height="294"> </p> <p><strong>Plug sockets</strong></p> <p>In regards to the physical problem of charging and mains plugs, many of the more user-centric hotel chains now have super handy devices on the bedside tables that double up as clock, mains unit and USB charger.</p> <p>If all hotels just did this one thing, it would make me stay with them again and again.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6670/bedside_clock-blog-flyer.png" alt="bedside clock" width="400"> 
</p> <p><strong>Taxis</strong></p> <p>We've all done it right. Not only do you often have to wait in the tedious check-out queue, you also need to ask the front desk staff to do something other than check-out, slowing everything down and making all the other angry waiting people behind you even more frustrated.</p> <p>A much better solution in this case is to take the digital self-service approach and build a cab ordering service right next to the exit so you press one button on your way out with no hassle. Failing that just use an Uber.</p> <p><img src="https://assets.econsultancy.com/images/0007/6671/Taxi_stop.png" alt="taxi stop" width="300"></p> <h3>We need a guest-centric mindset</h3> <p>It has to be said though that delivering this kind of convenience is usually not at all convenient for the hotel brand to implement.</p> <p>Behind the scenes, hotels often need to make radical changes to their IT infrastructure and the physical hotel environment. They are also dealing with legal and contractual issues that have been in place for many years and cannot easily be changed.</p> <p>Hotel tech systems are usually bought and maintained from third party providers that supply the whole industry and these commercially- driven tech companies have never really had the end user needs in mind.</p> <p>In order to create real convenience for the guest, all staff must ultimately adopt a different, more guest-centric mindset. Staff usually have to go through a time consuming and expensive training programme to learn to adopt new ways of working.</p> <p>So as easy as it looks from the outside, this level of digital seamlessness requires hotels to transform the way their organisation is set up and forces them to prioritise different developmental decisions.</p> <p>It means balancing the investments differently and putting more money aside for digital service.</p> <p>The hotel business is as old as the hills and built around physical assets so it's true to say that building a desirable digital service layer has come to the hotel businesses rather late in the game. Many are feeling the pain of being left behind from the digital disruption happening all around them. </p> <p>In the end, to deliver convenience or not is no longer a choice, or else hotels risk losing guests.</p> <p>There's only one way for the hospitality industry to go and that's toward a more user centric, convenient delivery. It's already underway and staying at a hotel is about to get better.</p> tag:econsultancy.com,2008:BlogPost/68060 2016-07-12T14:01:00+01:00 2016-07-12T14:01:00+01:00 What brands can learn from Nintendo’s digital transformation and Pokemon GO Bola Awoniyi <p>If you haven’t already seen, Pokemon GO is the new joint venture between The Pokemon Company, Nintendo and Niantic, Inc. that has reprised the original Pokemon game into a smartphone-only, augmented reality experience.</p> <p>The app already has more active users than Twitter, despite it only being officially released in Australia, New Zealand and USA. </p> <p>Instead of the brand languishing at the bottom of a nostalgic refuse collection, this merger of legacy brand and storytelling with new platforms and technology has created AR’s first killer app.</p> <p>And there are a number of lessons that can be learned regarding how brands should be thinking about their <a href="https://econsultancy.com/training/digital-transformation/">digital transformation</a>.</p> <h3>Stop being romantic about the past</h3> <p>Pokemon GO is a perfect mix of something users care about, with something that is relevant today. </p> <p>The asset that is the Pokemon franchise is extremely valuable and it’s as evident today as it was two decades ago.</p> <p>However, this product could only be executed because Nintendo got out of its own way.</p> <p>The company has famously resisted smartphone games as mobile inherently devalues the intellectual property that it owns. </p> <p>However, now it is finally listening to the market as it relates to the business of casual gaming and the results are clear.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Nintendo's mobile strategy:<br>2008: what's an iPhone <br>2010: what's an Android <br>2012: nope<br>2014: still no<br>2016: change how society functions</p> — Aaron Levie (@levie) <a href="https://twitter.com/levie/status/752358516950642688">July 11, 2016</a> </blockquote> <p>Much has been made of Nintendo’s 58% increase in stock price ($11bn+) since last Tuesday’s launch.</p> <p>However, the increase isn’t just because this game promises to make that much in revenue; rather Nintendo is realising that in a mobile-driven world, it needs to focus on being an IP licensor rather than just a game maker, as <a href="https://stratechery.com/2016/the-pokemon-go-phenomena-nintendos-pivot-additional-notes-on-pokemon-go/">analyst Ben Thompson explains</a>:</p> <blockquote> <p>The potential that Nintendo has truly woken up to is the latent value in its intellectual property and it is poised to take advantage of mobile’s scale in a far more effective way than anyone thought possible.</p> </blockquote> <h3>New technology needs brand, storytelling and good use cases</h3> <p>This is not the first ever AR experience. It isn’t even the first AR game by Niantic, the creator of the technology that used to be incubated in Google and is now part owned by Nintendo and The Pokemon Group.</p> <p>However, it is the first to get this degree of success.</p> <p>While the emphasis in many digital transformation efforts has been around the technology that needs to be created and integrated, the value of brand should not be underestimated in not only creating relevant experiences, but even making new technology commonplace.</p> <p>Google Glass has struggled to become anything more than a fringe accessory for users in very specific circumstances, yet users of Pokemon GO are happily engaging in augmented reality, as are users of Snapchat via its filters and lenses.</p> <p>The difference with Pokemon and Snapchat is that AR is simply a byproduct of engaging with a brand and narrative that users are already invested in, rather than the focal point of the product.</p> <p>This might be the way forward for legacy companies - resurrecting much-loved characters and brands to create meaningful experiences that are enhanced by new technology.</p> <p><iframe src="https://www.youtube.com/embed/2sj2iQyBTQs?wmode=transparent" width="560" height="315"></iframe></p> <h3>Double down on the strength of your brand and collaborate for the tech  </h3> <p>As mentioned previously, Pokemon GO is a three-way venture between Nintendo, The Pokemon Company and Niantic. </p> <p>The technology that powers the game was created in 2010 by Niantic, which went on to release AR-based games in 2012 (The Field Trip) and 2013 (Ingress).</p> <p>Rather than Nintendo attempting to create the same capabilities from scratch, inside a culture that has been historically anti-mobile, it made far more sense to invest in the technology startup and work together to build the game.</p> <p>In fact, one reason for the relatively rapid turnaround (the app took around 10 months to develop) is because it was built off the back of the Ingress game's infrastructure, but with Pokemon IP.</p> <p>While most businesses don’t have the spare cash to invest in AR startups, it is entirely possible to outsource and/or partner with a technology specialist to handle what they know best.</p> <p>This way, brands are free to focus on how their IP can be reimagined in a new world.</p> <h3>What's next?</h3> <p>Now all of this doesn’t mean Nintendo is saved: Pokemon GO could still be just a fad, albeit one of viral proportions. </p> <p>Making money out of mobile games is notoriously hard, but the fact that it is both the most downloaded and top grossing app on iTunes bodes well.</p> <p>Moreover, if history is a reliable teacher, only 1%–2% of users will actually go on to make in-app purchases; are there other ways to monetise Pokemon GO?  </p> <p>Also, is this success something that can be duplicated for Nintendo’s other brands and franchises?</p> <p>Only time will tell. However, what is clear is that in this fringe case of nostalgia meeting augmented reality, a path for digital transformation has appeared in the quest to catch ‘em all.</p> tag:econsultancy.com,2008:BlogPost/68047 2016-07-08T11:34:00+01:00 2016-07-08T11:34:00+01:00 The Sales & Marketing departments: Why & how they should merge Ben Davis <h3>Why merge Sales and Marketing?</h3> <p><strong>1 Effectiveness of marketing and sales is under scrutiny</strong></p> <p>The combined cost of sales and marketing <a href="https://www.amazon.co.uk/Profit-Maximization-Paradox-Marketing-%20Alignment/dp/1419691791">is estimated</a> to be between 15-35% of an organisation's total costs.</p> <p>With any activity costing so much, its effectiveness must be under scrutiny.</p> <p>This is especially true in the UK at the moment, where, as Mark Patron points out, every CFO will be looking to trim the fat from their organisations in the wake of a referendum-induced economic downturn.</p> <p><strong>2. The consumer expects one joined up sales journey</strong></p> <p>The customer has never seen their own path to purchase as a funnel, nor do they want to be clunkily handed from one department to another.</p> <p>Improving the customer path to purchase is common to every model of digital transformation, whether it be customer focused, technology focused or organisation focused.</p> <p>The fact that so much of the research phase for customers now occurs online means the remit of marketing draws ever closer to the moment a customer decides to buy.</p> <p><strong>3. Qualifying leads is not as simple as BANT any more</strong></p> <p>Just as marketing is more involved in the sale, salespeople are having to reach up the funnel to understand their prospects.</p> <p>Hubspot defines this by breaking down the N of the BANT lead-scoring acronym (Budget, Authority, Need, Timeline). 'Need' is further broken down into 'goals, plans, challenges and timeline'.</p> <p>Essentially, the customer need becomes a lot more nuanced, with salespeople tailoring the product/service/pitch to fit.</p> <p>This nuance is gauged from a wide range of interactions, often online, between the customer and the organisation's people and resources.</p> <p>McKinsey neatly sums this up with the chart below, showing how the organisation interacts with the customer in different stages of their journey.</p> <p><em>Impact of different touchpoints over the customer’s path to purchase journey (Adapted from McKinsey 2009)</em></p> <p><img src="https://assets.econsultancy.com/images/0007/6845/Screen_Shot_2016-07-07_at_15.07.37.png" alt="marketing/sales touchpoints" width="615" height="487"></p> <p><strong>4. Qualified leads need integrated technology</strong></p> <p>With salespeople qualifying leads in a much more engaged way, they need access to more customer data - most of it collected by marketing in the awareness and consideration phases.</p> <p>Access to data dictates a single view of the customer that marketing and sales teams can share. Typically, this means <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">a single CRM</a>, but impacts on many data-gathering technologies.  </p> <p><strong>5. Marketing at scale (automation) requires further integration</strong></p> <p>As data and processes are aligned, marketers can look to nudge customers along the funnel at scale, by automating some communications.</p> <p>To achieve the benefits of automation, organisations must see the logic of bringing sales and marketing closer together.</p> <h3>How to merge Sales and Marketing?</h3> <p>So how do organisations unite sales and marketing?</p> <p>Mike Baxter, author of the best practice guide on this topic, says it's all about serving the customer with the right message at the right time.</p> <p>This requires data capture, the right content, and an understanding of customer intentions. Mike splits the process into strategy development and strategy deployment.</p> <h3>Strategy development</h3> <p><strong>Process design</strong></p> <p>Diagnosis of current processes of sales and marketing. This involves analysis of possible customer paths to purchase and comparing them to the ideal.</p> <p>Looking at your service proposition, as well as the identification of and communication with prospects, process design entails examination of data and tech.</p> <p>It may be that opportunities for personalisation are earmarked, or a lack of a joined-up CRM is identified.</p> <p>This is extensive work and often involves a full capability audit (for more on this, see Econsultancy's <a href="https://econsultancy.com/admin/blog_posts/68047-the-sales-and-marketing-departments-why-and-how-they-should-merge/edit/%20https:/econsultancy.com/training/digital-transformation/">Digital Transformation hub</a>).</p> <p><strong>Competitor analysis</strong></p> <p>Looking for opportunities for differentiation from your competitors.</p> <p><strong>Content management</strong></p> <p>Conducting a content inventory and audit to understand what content is required at each customer touchpoint and how it can be optimised.</p> <p><strong>Measurement planning</strong></p> <p>Understanding where improvements have been made by planning what to measure.</p> <p>The measurement framework below is one adapted and refined by Econsultancy during work with Digital Transformation clients.</p> <p><img src="https://assets.econsultancy.com/images/0007/6846/Screen_Shot_2016-07-07_at_15.07.09.png" alt="framework for measurement planning" width="615" height="357"></p> <h3>Strategy deployment</h3> <p><strong>Team organisation</strong></p> <p>This is the determination of whether job roles, org structure, targets and remuneration are in line with newly designed sales and marketing processes.</p> <p>Typically there may be expansion of mid-funnel roles, such as in sales development. New targets and leadership may be developed. Low touch sales teams may be identified.</p> <h3>In conclusion...</h3> <p>Econsultancy's new report <a href="https://econsultancy.com/reports/the-convergence-of-marketing-and-sales/">refines the model for sales and marketing convergence</a>, giving much more detail and several more frameworks (than featured in this post) for managing this process.</p> <p>The drivers of this change are fairly widely recognised and many organisations have already begun to respond to new customer behaviours by changing org structure and process.</p> <p>If you are interested in help with sales and marketing convergence, or want to conduct a capability audit as part of a digital transformation journey, you can find more information on our <a href="https://econsultancy.com/admin/blog_posts/68047-the-sales-and-marketing-departments-why-and-how-they-should-merge/edit/%20https:/econsultancy.com/training/digital-transformation/">Digital Transformation pages</a>.</p> tag:econsultancy.com,2008:BlogPost/68014 2016-07-05T14:47:00+01:00 2016-07-05T14:47:00+01:00 How charities can win at the Zero Moment of Truth Alasdair Graham <p>Prior to the internet and mobile being such prevalent and omnipotent forces in everyday life, the donor journey looked a lot like the diagram below.</p> <p>Charities' marketing efforts were focused heavily on influencing the “first moment of truth”, the key donation interaction. </p> <h3>The 'classic' three-step mental model</h3> <p><img src="https://assets.econsultancy.com/images/0007/6600/original_mental_model.jpg" alt="Classic 3 step mental model" width="635" height="243"></p> <p>However the donor journey has now changed significantly, largely due to the fact that over three quarters of UK adults now own a smartphone.</p> <p>This connectivity coupled with the shift in donors' expectations in terms of receiving a return from their donation (whether altruistic or otherwise) has given rise to a new mental model and donor journey.</p> <h3> <strong>The new mental model: Zero moment of truth</strong> </h3> <p> <strong><img src="https://assets.econsultancy.com/images/0007/6601/ZMOT_mental_model.jpg" alt="Zero moment of truth for charities" width="682" height="305"></strong></p> <p>The ‘Zero moment of truth’ mental model takes into account today's landscape of highly connected and diligent donors whose donation journeys span multiple marketing channels, devices and timespans.</p> <p>Utilising the Proctor &amp; Gamble and Google '<a href="https://www.thinkwithgoogle.com/collections/zero-moment-truth.html">Zero Moment of Truth</a>' or ‘ZMOT’ model shown above, alongside our own qualitative research into 25 of the UK's top charities, this article aims to highlight pitfalls and opportunities for charities in digital with a specific focus on the defining ZMOT.</p> <h3>Zero Moment of Truth: ‘ZMOT’</h3> <p>The zero moment of truth is:</p> <ul> <li>A commuter reading the news on his iPhone while travelling to work, seeing the need for aid due to a natural disaster and doing a Google search on his phone for how he can help/donate. </li> <li>The managing director of a local business monitoring regional social media on her mobile for an opportunity to give back to the community through a charitable donation.</li> <li>A young office worker on her lunch break with a family member affected by an illness researching which charity will make the most of her donation from her desktop computer.</li> </ul> <p>The ZMOT is a moment that has never been more prevalent and is ultimately where donations are won or lost.</p> <p>Communicating effectively in this moment can also be the difference between a one-off donation of £5 or a standing monthly donation of £10.</p> <blockquote> <p>84% of people said that ZMOT shapes their decisions. It’s now just as important as stimulus and the first moment of truth in moving consumers from ‘undecided’ to ‘decided’ in terms of who they choose to donate to, how much and with what regularity.</p> </blockquote> <p>During the zero moment of truth or ‘research/choosing’ phase it is essential to put your best foot forward and ensure your charity is front and centre in users' searches and conversations where possible.</p> <p>As an example, a young man has been incited to donate to a cancer charity due to a recent personal scare.</p> <p>He performs a Google search on his phone for “cancer charities” which returns three prominent AdWords results for Macmillan, Cancer Research UK and Alder Hey.</p> <p><em>Google mobile search for "cancer charities"</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6602/cancer_charities_google_mobile-blog-flyer.jpg" alt="Google search for cancer charities" width="470" height="508"></p> <p>However, a quick review of the sites' homepages raised more questions than were answered, so later a second Google search is undertaken at home on a laptop computer for “where does the money I donate to cancer research go”.</p> <p><em>Google desktop search</em> </p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6603/2016-06-22_17_02_49-where_does_the_money_i_donate_to_cancer_research_go_-_google_search-blog-flyer.png" alt="where does the money I donate to cancer research go" width="470" height="596"></p> <p>Despite the fully populated <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">PPC ads</a> in the returned search results, not one of them answers the query, with the majority just dumping the user on a ‘donate’ page with no further information.</p> <p>Worse still, the top result from Cancer Research UK directs the user to a broken page – not good!</p> <p><em>Cancer research UK paid search landing page for Google query “where does the money I donate to cancer research go”</em></p> <p><img src="https://assets.econsultancy.com/images/0007/6606/cancer_research_broken_site_screenshot.png" alt="Broken landing page cancer research" width="662" height="174"></p> <p>This presents a significant opportunity to improve visibility and relevance in paid search, particularly for Cancer Research UK in this instance.  </p> <p>Thankfully the organic listings, which are dominated by Cancer Research UK, are more useful.</p> <p>They provide a clear answer – “80p of every £1 given is used to beat cancer” and that “thanks to donations Cancer Research UK have doubled cancer survival rates.”</p> <p>Provided a user heads straight into organic results then Cancer Research UK could consider the ‘Zero Moment of Truth’ won. However it's likely, particularly on mobile, that a paid result will be clicked.</p> <h4>What about the competition?</h4> <p>This particular search engine results page also raises the question “where are the other cancer research charities in the organic results?”</p> <p>In addition to the search example shown above, it is imperative to consider what questions your potential donors may be asking in the zero moment of truth and where they are asking them.  </p> <p>From here it’s important to be where your donors are and to address their queries across organic and paid search, social media, their emails and on news sites and blogs.</p> <p>Additionally, there is significant value in personalising messaging based on who’s reading your ‘ZMOT’ content.  </p> <p>This is obviously far easier on channels such as Facebook or Twitter, however there are opportunities to tailor messaging in search using geotargeting or <a href="https://support.google.com/adwords/answer/2701222?hl=en-GB">Remarketing Lists for Search Ads</a> or strategically targeting content to local news sites and blogs.</p> <h3>First Moment of Truth: ‘FMOT’</h3> <p>The first moment of truth is:</p> <ul> <li>A donor visiting your website and making a standing monthly donation of £15.</li> <li>The friend of someone doing a charity 10k run that has posted a link to their JustGiving page on their Facebook feed and been inspired to give to the cause through the JustGiving platform.</li> <li>Someone that follows your charity on Twitter and appreciates the work being undertaken, then passes by a charity box on their lunch break and gives a cash donation.</li> </ul> <p>Given the prevalence of mobile devices and trust in online financial transactions over the past decade it may be a surprise to find that the vast majority of donations are still made offline.</p> <p>According to a 2015 study from Barclays, <a href="https://www.barclayscorporate.com/content/dam/corppublic/corporate/Documents/research/the-future-of-charitable-donations.pdf">79% of donations</a> are still being made offline with ‘direct cheque’ and ‘direct cash’ donations leading the charge.</p> <p><em>Online vs. offline donations</em></p> <p><img src="https://assets.econsultancy.com/images/resized/0007/6609/online_vs_offline_donations_pie-blog-flyer.jpg" alt="Online vs offline charitable donations" width="367" height="358"></p> <p>This currently makes the first moment of truth more often than not a donation box, phonecall or personal interaction rather than a website or app.</p> <p>A situation that is potentially made worse by the fact that one in five charities don’t currently facilitate online donations on their own sites.</p> <p>However, this is set to change as younger donors tend to have a strong preference for donating online.  </p> <p>The Barclays study indicates that 72% of charities expect an increase in donations stemming from social media activity and 87% of charities agree that they’ll receive significantly more donations directly via their website in the near future.</p> <p>While the majority of the 25 charities we surveyed have made a strong effort to facilitate online donations, there are still significant opportunities for improvement across the board to improve conversions and total donations.</p> <p>None of the charities we surveyed were employing customisation measures to improve site user experience and donations. </p> <p>Provided data can be collected from existing and new donors such as their location, demographic or past donations, site content can be customised to improve conversions and maximise the value of a donor.</p> <p>As an example, first moment of truth donor experience customisation could take the form of:</p> <ul> <li>Tailoring site content based on user data, for example personalising content based on location to indicate where your charity has helped in the donor's region.</li> <li>Tailoring suggested donations based on user data such as location, or past donations.</li> </ul> <p>This engagement, customisation and initial contact is particularly important for young, first-time donors, because gaining affinity among them will be critical to future donations as they grow older and more affluent.</p> <p>Additionally, making an effort to attract online donations can significantly improve the addition of Gift Aid as the process is far easier compared to offline.</p> <h3>Second Moment of Truth: ‘SMOT’</h3> <p>The second moment of truth is:</p> <ul> <li>A donor receiving a welcome email giving thanks and indicating where their donations may be getting spent.</li> <li>A donor completing a donation online and being shown a ‘thank you’ page that allows them to quickly share where they donated and how it's going to help.</li> </ul> <p>One item often not considered with charitable donations is the second moment of truth – the user's ‘experience’ of the donation and how this moment can be used to influence other potential donors in their zero moment of truth.</p> <p>While 100% of the 25 major charities we surveyed sent a follow-up ‘thank you’ email, 44% of those emails were not personalised to any significant degree (only names were ‘personalised’).</p> <p>Additionally, there were only limited opportunities to share your donation and information about the charity's work, which again has the potential to become another donor's ZMOT, creating a positive feedback loop from user-generated content and conversation.</p> <h3>Key Takeaways</h3> <h4>1. Online donations set to increase</h4> <p>While online isn’t a major player at the moment in terms of volume it is almost guaranteed to become the primary means of donation in the coming years as younger, digital native donors begin to gain affluence.  </p> <p>This is backed up by the fact 71% of charities are seeing ongoing increases in online donations.</p> <p>The benefits of online donations reach much further than convenience and capturing the ‘next generation’ of donors, as online donations significantly increase the likelihood of Gift Aid additions and also present opportunities to engage donors in an on-going relationship through targeted online communications.</p> <p>Furthermore, the charities that invest in and get digital correct early on are likely to be the key players in the coming years.</p> <h4>2. Provide relevant information to user queries</h4> <p>Pay close attention to how your donors are behaving in the zero moment of truth.  </p> <p>In the example given earlier, a search for “where does the money I donate to cancer research go” yielded a paid result that led nowhere.  </p> <p>Capitalising on opportunities and queries such as this with targeted information can significantly increase the chances of donation.  </p> <p>A valuable exercise here may be to ask the questions “what would incite me to donate to a particular charity over another” and “what questions would I be asking to validate my choice of charity and where would I be asking them”.</p> <h4>3. Use social to influence the ZMOT</h4> <p>Take every opportunity to facilitate the positive feedback loop between a donor’s second moment of truth and their creation of a new donor's zero moment of truth.  </p> <p>For example, creating opportunities to share details of your donation and its impact on the donation complete page.  </p> <p>Potentially pre-populate a share that is customised to the donation amount, for example “I just paid for a month's worth of clean water for a child in Tanzania – You can make a difference too...”</p> <p>This circumvents any friction around “what to share” or “what to say” with social shares.</p> <p>Furthermore, taking the opportunity to give sincere thanks and show how each donation is being used can pay significant dividends in terms of creating brand affinity and promoting sharing and discussion around your charity.</p> <p>Again, this creates a positive feedback loop into the zero moment of truth.</p> <h4>4. Personalise experiences wherever possible</h4> <p>Personalisation across all points inclusive of stimulus, zero moment, first moment and second moment of truth is a cost effective way to improve conversion rates and can also influence donation amount and frequency.</p> tag:econsultancy.com,2008:Report/4175 2016-06-30T09:28:00+01:00 2016-06-30T09:28:00+01:00 The Convergence of Marketing and Sales <p>The Convergence of Marketing and Sales report provides a framework to assist a manager's journey in deciding whether or not to converge marketing and sales. Designed to be a companion and thought-provoker, the guide is written in two parts.</p> <h2>What's in the report?</h2> <p><strong>Part 1</strong> sets the scene, framing marketing and sales in different ways - from the path to purchase in the mind of the customer, to the marketing and sales process in the mind of the vendor, and the changing role of marketing and sales in a digitally networked world.</p> <p><strong>Part 2</strong> outlines our framework, split into the following key steps:</p> <p><strong>Strategy development</strong></p> <p><strong>Diagnosis</strong> - the research and obstacle definition that needs to precede all strategy development. We consider four key topics:</p> <ul> <li> <strong>Process design. </strong>Diagnosis focused on current processes used by marketing and sales and how they differ from the ideal.</li> <li> <strong>Content management. </strong>Diagnosis focused on current content used by marketing and sales and how they differ from ideal.</li> <li> <strong>Competitor analysis.</strong> Analysis of how to gain competitive advantage.</li> <li> <strong>Measurement planning. </strong>What measurements do we need to put in place to indicate if our strategy is working and do we need to refine and optimise the actions we are taking?</li> </ul> <p><strong>Insights and action - </strong>what insights have come from the above diagnoses and how can we convert these insights into coherent actions to overcome obstacles and achieve our strategic goal? (We identify Key Actions at the end of each topic.)</p> <p><strong>Strategy deployment</strong></p> <p><strong>Team organisation. </strong>How, when we roll out this convergence strategy for marketing and sales, do we take two teams with different cultures and different ways of working and turn them into a single team?</p> <p>Written by experienced consultant Dr Mike Baxter, who has led consultant teams on many of Econsultancy's digital transformation projects, the report aims to identify best practice approaches and techniques. The report also includes real-life examples illustrating how marketing and sales have a pivotal role in digital transformation.</p> <h2>How can we help?</h2> <p>Our <a href="https://econsultancy.com/training/digital-transformation/">Digital Transformation</a> team regularly supports leading organisations to drive forward organisational change. Our Digital Maturity Audit is often the first step in this journey, providing you with a clear framework to:</p> <ul> <li>Understand critical capability gaps.</li> <li>Prioritise key projects and areas for development.</li> <li>Validate business cases for investment.</li> </ul> <p>If you want to find out more about the Digital Maturity Audit and how we can help, please don't hesitate to get in touch by emailing <strong>transformation@econsultancy.com</strong> or calling us on +44 (0)20 3199 8475.</p> <p><iframe src="https://www.youtube.com/embed/Pi15K7YytWo?wmode=transparent" width="560" height="315"></iframe></p> <p>video by <a href="http://www.londonvideostories.com/" target="_blank">LondonVideoStories</a></p> tag:econsultancy.com,2008:BlogPost/68009 2016-06-28T14:34:00+01:00 2016-06-28T14:34:00+01:00 It is the end of the beginning for digital. But is it the beginning of the end? Ashley Friedlein <p>Mark Ritson confirmed last year that <a href="https://www.marketingweek.com/2015/08/05/mark-ritson-the-death-of-digital-is-upon-us/">the death of digital was upon us</a> and duly <a href="http://www.marketingweek.com/2016/06/08/mark-ritson-eight-marketing-concepts-some-heavenly-some-hellish/">consigns digital marketing to hell in this great presentation</a> from Marketing Week Live. </p> <p>And yet. And yet.</p> <p>And yet the appetite for ‘digital’ is as rampant as ever. And yet the skills and roles in most acute demand are digital. And yet digital teams appear to be growing and subsuming others, not the other way round. </p> <p>The strange thing among all this is that the most sophisticated and long-in-the-tooth digital marketing types I know are the least excited by ‘digital’ the name, digital the badge, digital the rallying cry as a solution to all ills. Me included.</p> <p>What is exciting is business models, growth, creativity, change, culture, innovation, new markets, learning, data, agility, <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences/">customer experience</a>.</p> <p>Yes, a lot of those things are catalysed or enabled by ‘digital’ but they do not have to be digital, nor about technology.</p> <p><iframe src="https://www.youtube.com/embed/dBiy3N2nycs?list=PL1-kPkZBw50G5af50RWyZQktGWjOkGxLI&amp;wmode=transparent" width="560" height="315"></iframe></p> <p>These same digerati would rather ‘digital’ was not in their job title. They recognise that the term is somewhat meaningless, encourages silo-thinking and actually limits their own career progression.</p> <p>They also increasingly find themselves in the strange position of advising internally against over-zealous digital-ness. </p> <p>One senior digital exec at a global fashion brand I spoke with recently lamented “they’ve decided to put all their marketing spend into digital.</p> <blockquote> <p>They want to spend all the launch budget on a [hot-social-media-platform] campaign. Are they mad? How can I tell them to stop doing this crazy digital stuff I know won’t work when I’m the digital guy?</p> </blockquote> <p>So where does this leave us? </p> <p>I have some suggestions and would love your feedback and comments to see if we can actually agree on some things, as marketers, as an industry, so we do not need continued existential anguish around whether digital is dead or not.  </p> <p>Things I hope we can agree on:</p> <ul> <li>Digital marketing is tactical, not strategic. Digital marketing should play its part in supporting the marketing strategy which in turn supports the business strategy. </li> <li>Digital marketing is a sub-set of marketing. It is ‘just marketing’ but there are a number of specific disciplines (like <a href="https://econsultancy.com/reports/email-census/">email marketing</a>, search engine marketing, social media, digital analytics and optimisation etc.) which can legitimately be described as ‘digital marketing’. </li> <li>These disciplines will not die. Indeed, many will grow and new ones will emerge. Specialists in digital marketing will continue to be in demand as well as marketing generalists.</li> <li>To be a C-suite marketer it is not acceptable to be only ‘digital’ or only ‘traditional’. You must be customer-centric and media neutral (AKA ‘multichannel’).  </li> </ul> <p>A question I am still pondering: has marketing itself, as a function, changed? I believe it has.</p> <p>Specifically in a widened remit that encompasses ownership of the customer experience and thereby the product/service itself in some cases.</p> <p>This is especially evident in the ‘product marketing’ role common in tech businesses. There is also much more ‘content’ in marketing than ever before and more ‘sales’. </p> <p>After 20-ish years it feels like we have reached the end of the beginning for ‘digital’. But is this also the beginning of the end? Yes and no. Strategically, yes; tactically, no. </p> <p>And let us not underestimate the value of tactics.</p> <p>Tactics are about execution. Ancient Chinese military strategist Sun Tsu said “Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat.”</p> <p>We need the right marketing strategy to win, but we may well need digital marketing to get us to victory quicker.</p> tag:econsultancy.com,2008:BlogPost/67976 2016-06-24T10:44:04+01:00 2016-06-24T10:44:04+01:00 This is how you explain to HR what 'digital' means Ben Davis <p>But it's true (and <a href="http://www.thedailymash.co.uk/news/business/nobody-knows-what-digital-supposed-to-mean-20160614109525">is already the butt of satire</a>), and HR needs to grab this lexical bar of soap if it is to attract and retain the best staff.</p> <p><em>Watch our new video on Top Tips for Digital Transformation.</em></p> <h3><iframe src="https://www.youtube.com/embed/Pi15K7YytWo?wmode=transparent" width="560" height="315" style="font-weight: normal;"></iframe></h3> <h3>A definition from the Co-Op</h3> <p>Below is Mike Bracken's <a href="https://digital.blogs.coop/2016/06/14/what-we-mean-when-we-say-digital/">definition of 'digital'</a> at the Co-Op.</p> <p>Note that technology is only one of the features of the internet era that defines 'digital'.</p> <p><img src="https://assets.econsultancy.com/images/0007/6302/coop.jpg" alt="co-op definition" width="615"></p> <h3>Skills and culture are two sides of the same coin</h3> <p>There was a report out recently from Grovo called <a href="https://www.grovo.com/whitepaper/why-millennials-leave-companies">Why Millenials Leave Companies</a>.</p> <p>Whether you like the term or not, as the first internet-native generation, millenials provide a good yardstick for whether a company is 'digital'.</p> <p>If a company can attract and retain talented millenials, chances are it has 'applied the culture, practices, processes and technologies of the internet era'. </p> <p>The report identified the following factors as important to millenials.</p> <ul> <li>Development - training and career advancement.</li> <li>Meaning - doing work that matters.</li> <li>Autonomy - working on their own terms.</li> <li>Efficiency - finding better, faster and easier ways to work.</li> <li>Transparency - being kept in-the-know on the job.</li> </ul> <p>These values are ones that can be applied to culture, process and technology across a business.</p> <p>Culture and skills are increasingly two sides of the same coin. If the culture isn't right, skilled employees are the first to get snapped up.</p> <p>Complaining about your job is no longer a rite of passage.</p> <h3>Consumers get it</h3> <p>Once the consumer has experienced great product and service from one brand, they naturally expect it from another.</p> <p>'Digital' to them means speed, transparency and, crucially, control.</p> <p>Sectors that continue to struggle are those in which customers feel unheeded - whether it be a utilities company unable to provide information on billing or a publisher intent on demeaning UX with crappy display ads.</p> <p>'Think like the customer' is still the best advice there is - if that's not realistic within your organisation, then there's still work to be done.</p> <p><em>For more on 'how to be digital'....</em></p> <ul> <li><a href="https://econsultancy.com/blog/67248-the-a-z-of-digital-transformation/">The A-Z of digital transformation</a></li> <li><a href="http://www.slideshare.net/econsultancy/the-context-for-digital-transformation-46544257">The context for digital transformation</a></li> </ul> tag:econsultancy.com,2008:Report/4162 2016-06-21T11:05:00+01:00 2016-06-21T11:05:00+01:00 Digital Transformation in the Financial Services Sector <p>The <strong>Digital Transformation in the Financial Services Sector</strong> report looks at the challenges that companies within the sector are facing as they digitally transform themselves to compete in today’s changing market, seeking to understand best practice approaches, techniques and strategies that financial services companies are adopting to increase their chances of success.</p> <p>The report, which is an update on the 2015 research of the same name, aims to explore how marketers' responses to challenges have evolved and provide some updated recommendations on approaches to and opportunities related to digital transformation.</p> <h2>Methodology</h2> <p>We carried out a series of in-depth interviews with senior executives from across the financial services and insurance industries to understand how a range of organisations were responding to different opportunities and challenges.</p> <p>Companies interviewed included: Saga, MORETH&gt;N, RSA Insurance, LV, BlackRock, Alpha Financial Markets Consulting, Direct Line Group, The Co-operative Insurance, Barclays Bank, Lloyds Banking Group, Santander UK, Droplet, Nutmeg, AXA, JP Morgan Asset Management, Bibby Financial Services, Interactive Investor, Hargreaves Lansdown, Betterment and Scalable Capital.</p> <p>We also looked at sector-specific data from our <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends/">Digital Trends 2016</a> and <a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016">Digital Trends in the Financial Services and Insurance Sector</a> reports, both published this year.<br></p> <h2>What you'll learn</h2> <ul> <li>The financial services industry is facing challenges from new business models and new players entering these markets, changing the ecosystem and making these sectors ripe for digital transformation.</li> <li>Companies in the sector see investment in digital and related skills as critical to success.</li> <li>Customer experience is a major focus for marketers.</li> <li>Having the right strategy and culture to deliver digital transformation is seen as essential.</li> <li>Data is perceived as being a huge part of the digital transformation journey.</li> </ul> <h2>You'll discover findings around:</h2> <ul> <li>How companies are looking to differentiate the customer experience and deliver value to their customers.</li> <li>Ways in which companies are putting the customer at the centre of decision-making.</li> <li>Practices companies are adopting to work in a more agile way.</li> <li>Encouraging a digital culture where digital is promoted throughout the organisation and is a part of everyone's job.</li> <li>Importance of re-platforming and moving away from legacy systems to be able to deliver on ambitions. </li> <li>Integrating data to understand customer journeys and behaviour to deliver more personalised and relevant communications.</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> <h2>How we can help you</h2> <h2 style="font-weight: normal; color: #3c3c3c;"><a style="color: #2976b2; text-decoration: none;" href="https://econsultancy.com/training/digital-transformation" target="_self"><img style="font-style: italic; height: auto; float: right;" src="https://assets.econsultancy.com/images/resized/0004/8296/rgb_dt_logo-blog-third.png" alt="Digital Transformation" width="200" height="66"></a></h2> <p><a title="Digital transformation - Econsultancy" href="https://econsultancy.com/training/digital-transformation/">Digital transformation</a> is a journey that's different for every organisation. To enable delivery of your digital vision (or help you shape that vision) we’ve designed a comprehensive approach to tackle your transformation.</p> <p>Covering everything from strategic operational issues, down to specific marketing functions, we will work with you to achieve digital excellence.</p> <p>Talk to us about an initial, no-cost consultation.</p> <p>Contact our Digital Transformation Team on <a href="mailto:transformation@econsultancy.com">transformation@econsultancy.com</a> or call</p> <ul> <li>EMEA: +44 (0)20 7269 1450</li> <li>APAC: +65 6809 2088</li> <li>Americas: +1 212 971-0630</li> </ul> <p style="color: #6b6b6b;"> <iframe src="https://www.youtube.com/embed/2q_lWLm5qtg?wmode=transparent" width="560" height="315"></iframe></p> <p style="color: #6b6b6b;">video by <a href="http://www.londonvideostories.com/" target="_blank">LondonVideoStories</a></p> tag:econsultancy.com,2008:BlogPost/67943 2016-06-14T09:57:00+01:00 2016-06-14T09:57:00+01:00 Why are we still talking omni-bollocks? Chris Bishop <p>We all know by now that digital thinking can’t be siloed.  </p> <p>That it works best as an active and integrated part of the retail mix, supporting and complementing the whole shopping experience.</p> <h3>So, why are we still going on about it?</h3> <p>Well, amazingly, at the retail and digital conferences I attend and speak at, these same old debates do seem to rumble on.   </p> <p>There is an old guard who are still in denial, who need convincing that digital is not simply eating away at bricks and mortar profitability.  </p> <p>Marketing teams are still asking us for help to sell in joined up digital thinking to their senior management.</p> <p><img src="https://httpsimage.com/img/online-stealing.png" alt=""></p> <p>So if we’re still banging on about "omni-channel" and "digital transformation" maybe it’s because the focus remains within silos and those lessons don’t seem to haven’t been universally adopted.</p> <h3>Are we making digital sound too complicated?</h3> <p>But maybe we’re so bound up in the omni-channel rhetoric and jargon that the digital world is simply not making the case well enough.  </p> <p>Maybe the problem is the new media age punks chasing or being given the latest cool-sounding job titles and spouting the latest omni-bingo terms.  </p> <p>Maybe we aren’t telling the story clearly enough. Ironically, maybe it’s the focus on digital itself that’s misleading.</p> <p>We need to remember that BHS, Austin Reed and the rest did not collapse because they failed at digital, they collapsed because they failed at retail.</p> <h3>It’s just retail</h3> <p>Digital is not replacing real world sales but lifting performance and building profitability across the board.</p> <p>It is simply helping retailers to sell more product in more ways than ever before.</p> <p><img src="https://httpsimage.com/img/online-not-for-luxury.png" alt=""></p> <p>From <a href="https://econsultancy.com/blog/66389-what-does-the-ideal-click-and-collect-service-look-like/">click and collect</a>, to location-based services and mobile, in 2016 we are seeing digital more and more bridging the gap between the physical and virtual world.</p> <p>It is breathing life into the whole retail sector and making it a formidable force in the economy.</p> <h3>Where’s the proof?</h3> <p>Online retail is continuing to expand; experts are forecasting more than 18% growth in 2016 alone.  </p> <p>But total retail spend is also on the increase from £13.3trn last year to a projected £13.7trn in 2016. </p> <p>Smart brands are realising that all of their real estate (digital and physical) are assets that can work together to drive customer satisfaction and profitability.</p> <h3>So, bricks and mortar retail is not dead?</h3> <p>No, but digital has killed off the idea of the convenience store because physical retail is no longer a ‘convenience’.  </p> <p>We’re no longer popping to the shops because it’s the simplest thing to do. Online is now by far the easiest way for consumers to transact.  </p> <p>Digital is what we turn to first in the buying cycle and remains their to assist in every aspect of a real world purchase, too,</p> <p>Digital retail is not eating the lunch of their bricks and mortar operations, it is redefining what those operations are for and how they work.</p> <h3>The mobile revolution changed the world</h3> <p>In the story of mobile we can see the way a single digital channel has reconfigured the entire shopping experience.  </p> <p>Of course, it’s become a powerful retail platform in its own right, it now accounts for one-third of the retail sales in the US (source: Internet Retailer).  </p> <p>But mobile has become the ultimate shopping assistant in real world sales, too. Mobile is the operating system that navigates your customers to your physical store. </p> <p>Today there are 34 times more ‘find my nearest’ requests made on mobile than there were in 2011, according to Google. </p> <p>Mobile is the operating system that makes the consumer more knowledgeable about the product they are about to buy.</p> <p>Already this year consumers have spent 100m hours watching ‘how to’ videos on their handsets, while 82% of consumers have turned to their smartphone for advice before making an in-store purchase.</p> <p>This isn’t a channel that’s driving customers away from shops!</p> <h3>Destination Retail</h3> <p>But one thing digital is doing is placing a new emphasis on retail premises as ‘destinations’ in their own right. </p> <p>With luxury brands leading the way, stores are becoming <em>more</em> attractive as places to spend time and money. </p> <p>They offer location-specific experiences, they build loyal communities and relationships, precisely because they do so in the real world.</p> <p><iframe src="https://www.youtube.com/embed/BE4dzuZeFkk?wmode=transparent" width="560" height="315"></iframe></p> <p>And it’s easy to see how digital experiences can be built around those communities, through apps, notifications, concierge services and the like, to help evangelise brands and create further real world and online sales.</p> <h3>Death to the buzzword!</h3> <p>As digital marketers let’s tell our stories without resorting to <a href="https://econsultancy.com/blog/66631-20-banned-words-from-the-econsultancy-blog-and-their-alternatives/">buzzwords, jargon and other omni-bollocks</a>.  </p> <p>It’s getting us a bad reputation and switching people off.</p> <p>Consumers don’t see themselves as ‘multi’ or ‘omni’ anything, they simply want to choose the most convenient way to shop at any particular moment.  </p> <p>They are becoming less patient and more demanding. They expect retailers to provide a connected and on-demand shopping experience - anytime, anywhere.</p> <p>Digital channels are key to these new <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences/">customer experiences</a>, but they are part of an organic whole.</p> <p>Forget about the digital fairy stories, what’s important is what makes consumers tick and what makes them buy - wherever and whenever. </p> <p>If we focus on those things we’ll really help the total retail sector continue to grow.</p> <p><strong><em>Done something special in retail or multichannel this year? </em></strong></p> <p><strong><em>Celebrate your success by entering Econsultancy’s <a href="http://www.festivalofmarketing.com/awards/categories?utm_source=econsultancy&amp;utm_medium=blog&amp;utm_campaign=econ%20blog">Masters of Marketing Awards</a>. </em></strong></p> <p><strong><em>Deadline for entry is on Friday 17th June.</em></strong></p>