tag:www.econsultancy.com,2008:/topics/skills-capabilities Latest Skills & capabilities content from Econsultancy 2016-07-21T11:05:00+01:00 tag:www.econsultancy.com,2008:Report/4200 2016-07-21T11:05:00+01:00 2016-07-21T11:05:00+01:00 Measurement and Analytics Report 2016 <h2>Overview</h2> <p>Never have marketers, analysts and ecommerce professionals had more data to work with as part of their ongoing efforts to improve business and organisational performance.</p> <p>At the same time, the growing challenge for individuals and organisations alike has been to avoid being overwhelmed by proliferating sources of data and metrics across a burgeoning number of marketing channels and technology platforms.</p> <p>The <strong>Measurement and Analytics Report 2016</strong>, produced by Econsultancy in partnership with analytics consultancy <strong><a href="http://www.lynchpin.com/">Lynchpin</a></strong> for the ninth year running, looks at how organisations are using data strategically and tactically to generate insights and to improve business performance.</p> <p>The research, based on a survey of almost 1,000 digital professionals, also focuses on the important role for data and analytics in supporting their attempts to build a competitive advantage by becoming more customer-centric.</p> <h2>What you'll learn from this research</h2> <ul> <li>Understand how analytics can help to meet financial goals and what the most common growth and profit-related requirements are.</li> <li>Discover how organisations are using data and analytics to build a competitive advantage by becoming more customer-centric.</li> <li>Benchmark the make-up of your analytics or data team and investment plans against those of your peers.</li> <li>Find out where the biggest analytics skills gaps are and what the most common challenges related to deploying tools and technologies organisations face.</li> </ul> <h2>Key findings from the report</h2> <ul> <li>The vast majority (84%) of marketers agree that their understanding of the customer is increasing over time, and 64% say that they are using data-driven customer insights to adapt their marketing strategies and influence business decisions.</li> <li>Despite the increasing importance of data, the proportion of analytics data used to drive decision-making within the organisation dropped by seven percentage points compared to last year's survey.</li> <li>While 77% of marketers believe digital analytics important to their company’s digital transformation, fewer than one in five consider digital reporting to have a ‘very influential’ role in supporting business decisions.</li> </ul> <h2>Features of the report</h2> <p>Based on a survey of almost 1,000 digital business professionals, this report also aims to cut through the noise to understand how companies are using measurement and analytics to boost revenue and profit growth, while also looking at the types of technology and data which are used to meet these ends.</p> <p><strong>Download a copy of the report to learn more.</strong></p> <p>A <strong>free sample</strong> is available for those who want more detail about what is in the report.</p> tag:www.econsultancy.com,2008:BlogPost/68080 2016-07-20T10:58:50+01:00 2016-07-20T10:58:50+01:00 It's time to reinvent the HiPPO Paul Rouke <p>The traditional HiPPO in business is the thing that so often is seen as the opposite of progress, engagement, leadership, inspiration, collaboration and humility.</p> <p>The HiPPO (meaning Highest Paid Person’s Opinion) usually stirs perceptions from the wider team of egotism and short-sightedness, whilst generating frustration for everyone underneath them within an organisation.</p> <p>If you have never worked within a company where you’ve had a HiPPO running the show, you’re one of the lucky ones.</p> <p><img src="https://assets.econsultancy.com/images/0007/7119/by_Nils_Rinaldi__Flickr.jpg" alt="" width="549" height="367"></p> <p>If you think you might be the one being perceived as a HiPPO, then consider this a guide to change.</p> <h3>The reality is this…</h3> <p>Every business will always have a HiPPO, but do we have to accept and work in businesses where the typical negative influences on company culture are driven from the top down?</p> <p>Do we have to accept these types of leadership traits?</p> <ul> <li> <strong>Egotistical</strong> – “I have all the answers”</li> <li> <strong>Arrogance</strong> – “I’m experienced enough”</li> <li> <strong>Cowardice</strong> – “I don’t need to quantify this”</li> <li> <strong>Blinkered</strong> – “But this is the way I’ve always done it”</li> <li> <strong>Apprehension</strong> - “It’s easier to keep things the way they are”</li> </ul> <p>A simple solution would simply be to eradicate these negative influences within a business. What I propose however, is that we reinvent the HIPPO to make it something every single person within a business (and generally in life) can aspire to.</p> <h3>I’m in, let’s reinvent the HIPPO</h3> <p>So how do we do it? Well, we change what the acronym is built from. Below you will see my proposed changes and my rationale. In my experience, I’ve found the qualities I’ve listed below are integral to healthy and thriving relationships, both in and out of the workplace.</p> <p><img src="https://assets.econsultancy.com/images/0007/7118/hippo-re-invented.png" alt="" width="549" height="308"></p> <h3>H for Humility</h3> <p>Personally speaking, in life but even more importantly in business, over my career I have come to truly appreciate the importance of having humility.</p> <p>No matter how experienced I am in my profession, how much public speaking I do, how many hours I spend with users (listening to them during a research session), or how many businesses I go and meet who are at the start of a journey to transform their culture and strategy, <strong>I know I do not have all the answers</strong>.</p> <p>Just as important is not pretending I have all the answers, either. I’ve no doubt that you will know a whole lot more than me in your areas of passion and experience.</p> <p>In a business environment, having humility is a key to success. Correctly identifying and communicating individual strengths and weaknesses will create a stronger team unit, from the board level down through the departments and beyond.</p> <p>I would summarise the importance of humility as this: <strong>know that you will never have all the answers, truly respect the thoughts and ideas of others, and listen more than you talk to give people in your presence the opportunity to share their very best (often buried away) ideas for improving experiences and our world.</strong></p> <h3>I for Integrity</h3> <p>I have a confession to make, and quite an embarrassing one at that.</p> <p>Back in 2010, if you were leaving people a recommendation on LinkedIn, you had the option of choosing three words which best describe that person. When I was receiving recommendations, the word that was chosen for me most often was integrity. Believe it or not, if someone asked me to describe what integrity means, I wouldn’t have had a compelling answer. My thought back then was simply that it related to being honest, but I couldn’t say much more.</p> <p>Type integrity into Google and this is what you get:</p> <blockquote> <p>Integrity is the quality of being honest and having strong moral principles; moral uprightness. It is generally a personal choice to uphold oneself to consistent moral and ethical standards.</p> </blockquote> <p>On reflection (LinkedIn removed this feature a few years later), it makes me very proud that integrity was the word so often used to describe me as person.</p> <p>For everyone reading this, <strong>having integrity (especially in business) will garner you more respect and provide you with a platform that more people will want to share with you.</strong></p> <h3>P for Passion</h3> <p>The happiest, most fulfilled and not coincidentally, the most successful people you will meet all have something in common: they live life with passion.</p> <p>A quick search in Google brings up this result:</p> <blockquote> <p>Passion is a very strong feeling about a person or thing. Passion is an intense emotion, a compelling enthusiasm or desire for something.</p> </blockquote> <p>From my personal experience, you won’t be able to realise your potential in a role you’re not passionate about. I learnt that when I left BAE after one year of an apprenticeship.</p> <p>You also can’t underestimate the importance of passion in motivating those around you. One key example of this is public speaking. I have seen many public speakers over the last 10 years (and I’m one myself), and the speakers who stick with me and whose message resonates deliver their message with passion.</p> <p>For everyone reading this, <strong>being passionate about what you do will demonstrate how much your work means to you, and your enthusiasm will be infectious.</strong></p> <h3><strong>P for Positivity</strong></h3> <p>I have another confession to make. You know how you can be a “glass half-full” or “glass half-empty” person? I am typically a “glass half-empty” person.</p> <p>At this stage I won’t go in to explaining about imposter syndrome, apart from saying that it’s something that affects almost all driven, passionate, ambitious people.</p> <p>For me, advocating the importance of positivity is in some way contradictory to my general persona, but one thing I know is 100% true: when I focus on being positive in my life and in my work, more positive things happen.</p> <p>A key part of being (and staying) positive is knowing that you are working towards something.</p> <p>Maybe things don’t fall in to place straight away. Maybe you are getting setbacks and people around you start to lose faith. Throughout this, staying positive, keeping the faith, planning for long term personal (and business) success is crucial.</p> <p>The higher you are in a business, the more people will look to you for guidance. If they see the captain of the ship doesn’t believe, then why should they?</p> <p>For everyone reading this, <strong>remember that our lives and our careers should be a marathon, not a sprint. Have determination to reach your goals, keep pushing forward, fight back against those negative thoughts in your mind, and know that positive thoughts bring positive experiences.</strong></p> <h3>O for Openness</h3> <p>When we are open-minded, we are creating opportunities for ourselves to have new experiences in our lives or in our careers. We are stepping outside of our comfort zone to try new things.</p> <p>In some ways, this is facing up to our fears: fear of taking on a new role that is going to stretch us, fear of putting our experiences and reputation on the line, fear of standing in front of people to deliver a presentation.</p> <p>Being open these past 15 years has led me to where I am today. Yes, I have had to face up to my fears on many occasions; but would I swap all that anxiety, worry, stress, and the sleepless nights for having a simple career which is just plodding along on auto-pilot?</p> <p>Not for one minute.</p> <p>What are your biggest fears? Are you truly fulfilling your potential? Is there something that you wish you could do which will take you completely outside of your comfort zone? Just remember: who dares, wins.</p> <p>For everyone reading this, <strong>whether you’re at the top of the chain and worried about change, or anywhere in the business, if you take one thing away from reading this article, it is this: open your mind to the possibility of facing up to some of your biggest fears.</strong></p> <h3>Will you aspire to be the HIPPO?</h3> <p>So there we have it, the re-invented HIPPO. Humility, Integrity, Passion, Positivity, Openness.</p> <p>Thank you for reading (the first step in being open to change) and I look forward to working alongside and working with more HIPPOs during the rest of my career.</p> <p><em>For more on leadership, read the following:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67238-redefining-leadership-in-the-digital-age">Redefining leadership in the digital age</a></li> <li><a href="https://econsultancy.com/blog/67303-15-inspiring-quotes-from-digital-leaders">15 inspiring quotes from digital leaders</a></li> <li> <a href="https://econsultancy.com/blog/67797-digital-transformation-five-key-tenets-of-a-digital-leader">Digital transformation: five key tenets of a digital leader</a> </li> </ul> tag:www.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:www.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:www.econsultancy.com,2008:BlogPost/67961 2016-06-20T14:51:00+01:00 2016-06-20T14:51:00+01:00 How should your digital marketing team be structured? Nikki Gilliland <p>Recently, we sat down with three top marketers with three varying perspectives on the topic. </p> <p>They are:</p> <ul> <li>Jane Newens, Head of Communications at the Open University.</li> <li>Vinne Schifferstein Vidal, Global Category director at Pearson.</li> <li>Jack Swayne, Chief Strategy and Analytics Officer at iProspect.</li> </ul> <p>To find out what they said, watch the video, or check out the summary below.</p> <p>And be sure to check out Econsultancy's best practice guide on <a href="https://econsultancy.com/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide/">Digital Marketing Organisational Structures and Resourcing</a>.</p> <p><iframe src="https://www.youtube.com/embed/t9p5Lo3mlZ4?wmode=transparent" width="854" height="480"></iframe></p> <h3>A digital team is not always required</h3> <p>As the Head of Communications at the Open University, Jane Newens doesn’t understand the need for having a specific digital team. </p> <p>Instead, she believes that digital should be integrated throughout an entire business, with sound knowledge being a focus for all areas of marketing – not just an isolated group.</p> <blockquote> <p>We do it in our team, because we’re constantly looking at both the online and offline experience and all the different touchpoints. Then in our acquisition team we also have a number of digital experts.</p> <p>But... we don’t have a <a href="https://econsultancy.com/blog/67948-how-long-will-the-head-of-digital-role-exist/">head of digital</a>.</p> </blockquote> <h3>A digital team divided into different strands</h3> <p>Vinne Schifferstein Vidal explains that for a company like Pearson, digital remains the responsibility of a select few. However, she also explains how the team is divided between different verticals of the business.</p> <p>With half dealing with the sale of digital products, and the other focusing on the marketing of digital channels, the different roles are brought together to make a truly collaborative team.</p> <blockquote> <p>One side is really looking after the website and how we communicate to our target audience. On the other side, the channel might not necessarily be a digital one, but the product that we sell is always digital.</p> </blockquote> <h3>Three distinct types of digital teams</h3> <p>Instead of just one approach, Jack Swayne explains how iProspect chooses to structure its digital teams around three core elements – holistic, specialist, and integrated – in order to guarantee success. </p> <blockquote> <p>The digital world is becoming more and more complex. Within search, social, content – it’s moving at a faster pace. Changes are happening so quickly that we need in-depth specialism to make sure we’re staying ahead of it all.</p> </blockquote> <p>By using holistic thinkers to help make sense of the ways digital is changing consumer behaviour, specialist marketers are then able to take these insights and turn them into actual solutions. </p> <h3>So...</h3> <p>These three examples just go to show how differently digital teams can be structured. </p> <p>There are no set rules, but it ultimately depends on how a company values digital knowledge and expertise.</p> <p>Whether fully integrated, specialist, or a mixture of the two – marketing teams are becoming just as complex as the industry itself.</p> <p><em>To benchmark your team’s knowledge against their industry peers, check out our <a href="https://econsultancy.com/training/digital-skills-index-lite/">Digital Skills Index.</a></em></p> tag:www.econsultancy.com,2008:BlogPost/67942 2016-06-13T15:15:00+01:00 2016-06-13T15:15:00+01:00 How AO.com succeeds by focusing on people, culture & customer service Lynette Saunders <p>In an interview for my report on <a href="https://econsultancy.com/reports/digital-transformation-in-the-retail-sector/">Digital Transformation in Retail Sector,</a> Dave Lawson, AO.com’s group ecommerce director, said it's about getting the right people who care massively, are driven and smart, and rewarding them accordingly.</p> <p>The basic principle of delivering what customers want is embedded in what <a href="http://ao.com/">AO.com</a> does, but key for the company is its people. </p> <p>I was fascinated by what sounds like the perfect culture within a company, where everyone loved their job, was rewarded for what they do and was focused on the customer and keeping them happy.</p> <p>So much so that I wanted to find out more and Andrew Kirkcaldy, AO.com's group brand director, who looks after both the brand team and people team, was happy to answer more of my questions. </p> <p><img src="https://assets.econsultancy.com/images/0007/6110/ao_manager.jpg" alt="" width="800" height="533"></p> <h3><strong>Can you first tell me about your job role. It sounds interesting to link brand and people together?</strong></h3> <p>I have been in the business for eight years, working my way up from managing our Google paid search activity to managing all of the digital marketing teams, to now focusing on brand, people and culture.</p> <p>Two years ago, we realised that it was our culture that had enabled the business to be so successful and would shape our brand's future success.</p> <p>When I chat to people about what I do they are surprised at first, but when I explain the importance of having alignment of the culture and your brand communications it all makes sense.</p> <p>I see a piece of brand communication as a promise to the consumer - if the reality of the business doesn’t match up to that promise then you won’t have a very sustainable business.</p> <p><img src="https://assets.econsultancy.com/images/0007/6017/AO_screenshot.png" alt="" width="800" height="463"></p> <p>It’s about perception vs. reality, your brand communication has to originate from truth of the business; why do we do what we do.</p> <p>For us our biggest risk is not necessarily competitors, but ourselves as we continue to grow. We have a lot of programmes that support our emerging talent, as we see promoting from within as a key defence against diluting our culture.</p> <p>When we do look externally to recruit we take this very seriously. If we recruit a person who doesn’t believe in our vision and core values then this can be very disruptive and potentially damaging.</p> <p>By ensuring that everyone has an intimate understanding and belief in our culture means that the people who don’t ‘get it’ stand out very clearly.  </p> <p>We want to be the best electrical retailer in Europe. This can only happen by having the best people who believe they are part of shaping what that looks like.</p> <p>Best means lots of different things to people, therefore, we need the culture that amplifies the passion for our customer, as every customer has different needs. </p> <h3><strong>How did you develop the culture you have?</strong></h3> <p>Every business has a culture, but the key thing to understand is whether that culture is aligned to the vision of the business and, of course, aligned to what consumers expect and deserve.</p> <p>In startup businesses the culture is very potent, as you have the passionate founder who exudes why they believe in the business.</p> <p>As you grow more people join and decision-making gets de-centralised with people across different locations and countries, so this approach is not scalable. </p> <p>We knew that we had to codify the AO culture. We embarked on a programme of surveys, one-to-one interviews and focus groups to gather opinions, stories, anecdotes and customer testimonials, which gave us great insight into how it should be shaped.</p> <p>After many iterations we settled on five values. We tested them by seeing whether these values were used when we made business decisions over the years, how we treat our customers, to how we treat each other.</p> <p><em>Two of AO.com's five values</em></p> <p><img src="https://assets.econsultancy.com/images/0007/6015/ao.com_values.png" alt="" width="802" height="347"></p> <p>This enabled us to see that they were more than just words, but how people behaved and the resulting stories they created. They were a perfect match.</p> <p>We launched the values by running culture workshops that outline the importance of our culture and why it now needed to be defined.</p> <p>We now run regular values role model workshops to arm people with how they can protect, promote and lead by example.</p> <p>We have monthly ‘state of the nation’ meetings where John Roberts (founder &amp; CEO) shares stories with the whole business on how the team have gone above and beyond by living the AO values.</p> <p>Finally, we also encourage all employees to share stories of colleagues who have lived the values. Some of these stories are amazing and humbling to read. It is these stories that maintain our passion for the business.</p> <p>Story telling is a key to making sure everyone realises that our culture is alive and well - people remember how you made them feel, not the facts and figures.  </p> <h3><strong>Through your recruitment process how do you ensure you hire the right people and know these are going to be people that care?  </strong></h3> <p>We have questions that extract stories from the candidate that allows the recruiter to understand whether they understand and believe in our vision and values.  </p> <p>For us it is about focusing on behaviours, their beliefs and attitudes rather than solely on their qualifications.</p> <p>A person could be the most qualified; most experienced in the world, but if they don’t ‘get’ our culture, then they don’t progress to the next stage. </p> <p>Our recruiters play a pivotal role in maintaining our culture as they are our gatekeepers for our special AO culture. They have an implicit understanding whether someone is right or wrong for our business.</p> <p>People don’t get to an interview if they are not the right cultural fit. Sometimes a simple question can help identify this. </p> <p>When I was interviewed eight years ago; I remember our COO asked me ‘how often do you see your mum?’ in the interview as he wanted to extract whether I care or not.</p> <p>You can’t teach or pay people to care and this is one of our core values.  </p> <h3><strong>How important is training to developing your culture?</strong></h3> <p>When people join they have a three-week induction training programme.</p> <p>For new starters into our contact centre, part of this is a values week, where they get to understand the AO mantra of how we approach customer service.</p> <p>It is not a big book of rules, but a set of principles. One of the core principles is;<em> “Treat every customer like your gran and do something your mum would be proud of.”</em></p> <p>We also run a series of product training across the business – we want them to be passionate about what they sell and have deep knowledge of products. We have built product showrooms so anyone can experience the product themselves.</p> <p>On top of that we have manufacturers bring their own mobile training centres to the business, where they give live demonstrations of the products.</p> <p>We have a development programme called <em>“AO star programme”</em> that is for rising stars within the business where they have the opportunity to get wider exposure across the business, which will enable them to accelerate their development.</p> <p>We try and tie things together through development and engagement. We set up our own charitable foundation called, AO Smile Foundation.</p> <p>Every development programme has a team building element and we use AO Smile initiatives to ensure that we mix team building and making a difference to the local community.</p> <p>For example, DIY SOS with a house that needs doing up where the family was unable to do for themselves. A great example of how people at AO.com go that extra mile is shown in this video:</p> <p><iframe src="https://www.youtube.com/embed/fv-cC0RYITI?wmode=transparent" width="560" height="315"></iframe></p> <p>Remuneration is also important to ensure people are paid fairly and we benchmark in our industry and this is reflected in how employees are rewarded.</p> <p>For me Richard Branson’s quote sums it up nicely:</p> <blockquote> <p>Train people well enough so they can leave, treat them well enough so they don’t want to.</p> </blockquote> <h3><strong>In my initial interview with Dave he talked about driving out negativity, how do you manage to drive a positive attitude?</strong></h3> <p>It starts with making sure you recruit like-minded people. We are a very fast-paced business and there are always too many opportunities to work on. This of course leads to frustration.</p> <p>The key is making sure people appreciate each other and respect what each person brings to the table and have what we call ‘positive frustration’.</p> <p>We know there will be conflicts and challenges to any ideas of progressive thinking. We are very positive company and encourage people to challenge, but do it in a constructive way. </p> <p>What has helped this, is by creating situations for people to come together from different parts of the business – logistics, operations, finance, IT and marketing through our development programmes, internal communications, engagement activities and events.</p> <p>This enables people to create personal connections as they get a greater appreciation for what others do.</p> <p>This reduces negativity as people see different views and try and work through problems together and everyone knows they are all working towards the same business vision.</p> <h3><strong>Finally, I have heard some great stories about how AO.com empowers its staff. Can you tell me more about why this works so well for you?</strong></h3> <p>Everyone has a part to play in our culture and vision of the business. If something does go wrong, we empower our staff to make it right.</p> <p>We have put guidelines in place and trust people we recruit to do what they can to make sure the customer is happy.</p> <p>The challenge is how we articulate our culture to people outside of the business. ulture is a set of beliefs, behaviours and feelings that means when you come and see the business you feel the difference.</p> <p>Over the years we have fanatically worked on making our <a href="https://econsultancy.com/reports/customer-experience-statistics/">customer experience</a> seamless.</p> <p><em>Positive reviews for AO.com</em></p> <p><img src="https://assets.econsultancy.com/images/0007/6018/positive_reviews.png" alt="" width="800" height="432"></p> <p>When a customer places an order with us, we are making a promise to that customer and we take their hard earned money very seriously.</p> <p>Things do sometimes go wrong, but because the vast majority of our customer promises are met, we can fix the ones that go wrong quickly to ensure that the customer is happy.   </p> <p>As an example, we had a family of four who bought a free-standing cooker which had been disconnected and wouldn’t load on our van. The family had the problem of what were they going to do about their dinner.</p> <p>The agent took it upon themself to have pizzas delivered to the family so that they wouldn’t have to do it themselves. </p> <p>We are not telling people to give things away, but we know it is an inconvenience for people if things have not gone to plan.</p> <p>By living by our culture and principles, we allow people at AO to be very creative in how they solve problems.</p> <p>We don’t follow a computer says ‘No’ approach. </p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/66768-ao-com-the-best-ecommerce-experience-available-online/"><em>AO.com: The best ecommerce experience available online?</em></a></li> <li><a href="https://econsultancy.com/blog/64902-13-ecommerce-best-practice-lessons-from-ao-com/"><em>13 ecommerce best practice lessons from AO.com</em></a></li> <li><a href="https://econsultancy.com/blog/67107-five-digital-organisations-with-a-transparent-company-culture/"><em>Five digital organisations with a transparent company culture</em></a></li> <li><a href="https://econsultancy.com/blog/67059-changing-company-culture-six-things-to-try/"><em>Changing company culture: six things to try</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67868 2016-05-24T10:09:02+01:00 2016-05-24T10:09:02+01:00 What skills do employers look for when hiring digital marketers? Nikki Gilliland <p>As shown in the <a href="https://econsultancy.com/reports/career-and-salary-survey-report-2016/">Career and Salary Survey Report</a>, salaries within digital are <a href="https://econsultancy.com/blog/67480-should-female-content-specialists-be-worried-by-our-salary-survey/">largely increasing</a> as a result.</p> <p>But with an expanding pool of talent and so many different skills to draw upon, what exactly do employers look for when hiring digital marketing talent?</p> <p>We recently sat down with three senior marketers and asked them exactly what makes somebody a sure-fire hire.</p> <ul> <li>John Watton – EMEA Marketing Director at Adobe.</li> <li>Jack Swayne – Chief Strategy &amp; Analytics Officer at iProspect.</li> <li>Vinne Schifferstein Vidal – Global Digital Category Director at Pearson.</li> </ul> <p>To find out everything they said, be sure to watch the video at the bottom of the article, but here are just three of the most important skills highlighted.</p> <h3>Curiosity</h3> <p>Most employees are bound to say that having an interest in what you do is important, but for digital marketers, it is even more the case.</p> <p>With the amount of access to new forms of technology, marketers need to be consistently curious about how they might utilise its potential.</p> <p>As John Watton explains, having the desire to learn new things, asking questions, and seeking out solutions are all key behaviours that a curious marketer should demonstrate.</p> <blockquote> <p>I don’t think it’s a profession now where you can come in at 9am and leave it all behind at 5pm.</p> </blockquote> <h3>Flexibility</h3> <p>While certain areas of digital require specialism, it’s important to remember that companies also need good all-rounders - those who understand how digital can fit into the entire eco-system of a business.</p> <p>As Jack Swayne says, by retaining a broad mindset around different channels, employers are likely to encourage employees to undertake training in specific areas as experience is gained.</p> <blockquote> <p>We look for a whole host of people, but ultimately, those who are really passionate about whatever digital channel they are looking after.</p> </blockquote> <h3>Data-driven</h3> <p>Despite the belief that risk-taking within marketing is important, many employers are beginning to place more value on being data-driven.</p> <p>As Vivve Schifferstein explains, using data to improve strategy is far more likely to get results than gut feeling.</p> <blockquote> <p>I want someone who is eager to make sure that assumptions are not assumptions any more. I think facts are much more important in the digital space.</p> </blockquote> <p>Whether it’s CTR or ROI – data is undoubtedly a brilliant tool for any marketer.</p> <p>The key is to not get too bogged down in its endless nature, and instead, use it in conjunction with creative and experimental methods.</p> <p><iframe src="https://www.youtube.com/embed/Cbo6AC3haLo?wmode=transparent" width="854" height="480"></iframe></p> <p><em><strong>To find out how your skills measure up, take our <a href="https://econsultancy.com/training/digital-skills-index-lite/">Digital Skills Index</a>, or improve your prospects with our range of digital marketing <a href="https://econsultancy.com/training/">training courses</a>.</strong> </em></p> tag:www.econsultancy.com,2008:BlogPost/67846 2016-05-13T10:14:25+01:00 2016-05-13T10:14:25+01:00 Logic & magic: How to harness the power of language Nikki Gilliland <p>I digress. The point is that lexicographer Susie certainly knows her stuff when it comes to words and how they work.</p> <p>Yesterday, I heard her speak at the <a href="http://summit.adobe.com/emea/">Adobe Summit</a> where she provided unique insight into how language can be utilised for business on all levels.</p> <p>Before I summarise her wisdom in a handy little list, here are the results of a poll taken by the audience during the talk. </p> <p>(This might give you an idea of just how strongly people feel about language)</p> <ul> <li>52% ‘literally’ blow up at the over-use of literally.</li> <li>65% are annoyed by the habit of using ‘so’ at the beginning of every sentence.</li> <li>87% have talked about ‘solutions’ and ‘paradigm shifts’ at work.</li> <li>92% want to face-palm when they spot a misspelling.</li> <li>60% aren’t bothered by new words like ‘face-palm’.</li> <li>87% say their company does NOT communicate effectively.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4906/dictionary.jpg" alt="" width="700" height="496"></p> <p>Now, on with that list...</p> <h3>Don’t be scared to stutter</h3> <p>According to research, ‘umming’ and ‘ahhing’ is not always a bad thing.</p> <p>One experiment demonstrated how a speech including conversational fillers was more readily understood by the same audience than one that was word-perfect.</p> <p>This is due to natural rhythms of conversation aiding comprehension, with regular pauses in speech allowing the listener to absorb what is being said.</p> <h3>A large vocabulary doesn’t mean a complicated one</h3> <p>Expanding your vocabulary is one of the most overlooked ways to improve your prospects (and sharpen communication). But it doesn’t mean the words have to be complex – quite the opposite in fact. </p> <p>Shakespeare had just 20,000 words at his disposal. Today, we have around 50,000.</p> <p>Learning new words doesn't mean you have to use all of them, or indeed speak like Shakespeare, but it'll certainly help you think in a more agile fashion.</p> <h3>Use words with precision</h3> <p>The more words we know, the more we have to choose from, but often the most basic sentence can be the most powerful.</p> <p>Let’s take Apple for example. With just one phrase, “Think different”, they managed to encapsulate everything the brand stands for. </p> <p>And not a single mention of the product.</p> <p><iframe src="https://www.youtube.com/embed/nmwXdGm89Tk?wmode=transparent" width="854" height="480"></iframe></p> <h3>Know your audience</h3> <p>Just because more slang words are appearing, it doesn’t mean the overall language is shrinking. You just have to use them sparingly and appropriately as well as aim them at the right people.</p> <p>A great example of slang is Susie’s favourite word of the moment: 'Procaffeinating'. Which means the art of putting everything off until you’ve had another cup of tea. </p> <p>Similarly, you should always be aware of cultural norms and how words will be translated. </p> <h3>Ditch the gobbledygook</h3> <p>The definition of <a href="https://econsultancy.com/blog/66631-20-banned-words-from-the-econsultancy-blog-and-their-alternatives/">jargon</a> is ‘unintelligible or meaningless talk’, and in this sense, it is definitely something worth discarding.</p> <p>Revenue streams, joined up best practice, digital natives... if the person you're talking to is forced to decipher or un-pick the meaning, it’s not worth saying. </p> <h3>Not all jargon is bad!</h3> <p>According to Susie, although jargon is often annoying, it's also helpful.</p> <p>This is because jargon can be seen as a tribal language – i.e. a language that is used to bond or unite a specific group.</p> <p>With marketers dealing with brand-new concepts on a continuous basis, it's unsuprising that we're coming up with new words to describe them.</p> <p>That being said, whether this is a good enough excuse for ever saying the word ‘leverage’ is debateable. </p> <p><em>For more on this topic book yourself onto our <a href="https://econsultancy.com/training/courses/online-copywriting/">Online Copywriting Training Course</a>, or check out these other posts:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67752-three-online-copywriting-tips-supported-by-research/"><em>Three online copywriting tips supported by research</em></a></li> <li><a href="https://econsultancy.com/blog/67256-should-writers-be-worried-about-automated-copywriting/"><em>Should writers be worried about automated copywriting?</em></a></li> <li><a href="https://econsultancy.com/blog/65642-nine-writing-rules-you-can-safely-ignore/"><em>Nine writing ‘rules’ you can safely ignore</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67753 2016-05-03T14:25:26+01:00 2016-05-03T14:25:26+01:00 CMOs are taking command of the growth agenda, one byte at a time John Kelly <p>Increasingly, it involves a call for organic growth, coming from the CEO, board, and shareholders.</p> <p>And often, it’s on the chief marketing officer to deliver.</p> <h3>Then vs. now</h3> <p>Historically, the marketing team has been responsible primarily for execution of the communications plan — it used to be a service organization.</p> <p>But today, the CMO is firmly planted in the C-suite and viewed as an important leader of the team.</p> <p>Greg Welch, a longtime leader at Spencer Stuart and arguably the industry’s top CMO recruiter, recently shared his perspective on this important change:</p> <blockquote> <p>It used to be enough for the CMO to simply have a point of view on the agenda, but now it’s truly about being a powerful force in shaping it.</p> <p>For the first time, I’m seeing CMOs who are not only playing a major role in the overall company growth agenda; now it is quite common for them to also have specific revenue targets for growth.</p> </blockquote> <p>Consider the role and legacy at General Electric of Beth Comstock, a vice chair and previously the company’s global CMO.</p> <p>She and her successor, Linda Boff, have been tasked with delivering on not only the complex marketing plan, but also plans that enable the organization to drive important and profitable growth across new channels, summing to a multibillion-dollar growth target each year.</p> <p>With inorganic options like acquisitions and partnerships exhausted for many, corporations like GE are realizing the best option for growth comes from being the first to anticipate and recognize evolving customer needs.</p> <p>As past Walmart CMO Stephen Quinn said, “If you can own the customer, you’re in a great position to lead.”</p> <p>Today we see the best CMOs take advantage of that desire for customer leadership, and this is the critical expectation invested in the role now.</p> <h3>Data-driven growth agenda</h3> <p>Precisely what does data have to do with it?</p> <p>Owning the customer means utilising the data available to most companies today to precisely anticipate the customer’s desire and profitably steer the company toward its delivery.</p> <p>Within the conventional boundaries of marketing, broadly, that means marriage of reliable, predictable and complete sales data with consumer sentiment information.</p> <p>But if the CMO is to embrace the new expectation — to be at the center of the growth agenda among all C-level executives — then it also means thinking globally, financially, and in the terms of C-suite peers.</p> <p>Farmers Insurance CMO Mike Linton suggests: “In order to distill the data effectively, the CMO must have a global overview of the company and be thinking future tense.</p> <blockquote> <p>If you don’t have a good global overview of how all this stuff works together around your customer, and around your financials, you are not going to use the data very fairly for the company and/or the customer. </p> <p>You’re going to use it only for marketing. And then you’re going to lose credibility because you’re going to be the marketing person versus a business guy who’s good at marketing.</p> </blockquote> <p>Clearly, the CMO role is then going through its own growth agenda, through proximity to the customer, greater availability and application of data, and the weighty expectation — and even tension — that the CMO deliver on the call for organic growth, with inorganic options largely exhausted.</p> <h3>Getting it done</h3> <p>It’s easy to point out highly visible executives like Comstock as success stories when they have already reached the destination.</p> <p>The rest of us are in the trenches, still on the path to achievement.</p> <p>If you accept that it’s the CMO’s role and the time is now, how are we to be good marketers, leaders, and change makers inside the company?</p> <p>Here are some ideas from your peers rising to the challenge.</p> <h4>1. The best offense is a good defense</h4> <p>By now it’s a cliché: The best offense is a good defense. In this case, that means employing the data in advance to test the hypotheses you will inevitably be questioned on.</p> <p>Linton has been challenged on the details of the marketing plan many times: “What are you doing? How come we’re not on Facebook? Why this campaign? Why are you focusing on this client segment? Here’s a good idea for a sponsor.”</p> <p>He’s heard it all.</p> <p>In response, he turned himself into a data experimentalist, quickly moving off his heels to the front of his feet.</p> <p>He asked himself, what data do we need to get smarter about the decisions we’re making next year? And that put him back on the offensive.</p> <p>The litany of second-guessing now meets with a response: “Look, we’ll run this experiment. I’ll let you know in six months” or “Here’s what we did. Here’s what we learned. That’s why we’re not doing it.”</p> <p>Linton says: “As a CMO, if you say, ‘I just don’t like it’ or ‘I don’t think it works,’ that’s where you get in trouble.”</p> <h4>2. Speak the language</h4> <p>To be a leader, you need to connect with your team.</p> <p>In the CMO’s case, the team is the rest of the C-suite, and given those executives’ respective areas of specialization - operations, technology, finance, etc. - the languages they speak vary widely.</p> <p>Taking control of - and even contributing to - the growth agenda creates a burden to translate from marketing terms into the other languages of the business.</p> <p>For example, as a CMO of a global organization, you may have responsibility over <a href="https://econsultancy.com/training/digital-transformation/">the digital transformation</a> of the firm.</p> <p>This means something to marketers but not to the chief financial officer.</p> <p><iframe src="https://www.youtube.com/embed/2q_lWLm5qtg?wmode=transparent" width="560" height="315"></iframe></p> <p>A different approach might be, “Hey, Mr. CFO, I think I can get your attention if I talk to you about how I, as a marketer, can help you improve your revenue productivity.</p> <blockquote> <p>If we can improve operational efficiency, if I can bring you <a href="https://econsultancy.com/blog/65327-why-dynamic-pricing-is-a-must-for-ecommerce-retailers/">dynamic pricing</a> and reduce your distribution costs, if I can optimize marketing, if I can help you drive ancillary revenue.</p> </blockquote> <p>This represents the kind of conversations United Airlines CMO Tom O’Toole has every day with his peers.</p> <p>He drives the growth agenda through data for everything at United, from the cockpit back, with responsibility for mobile devices to Wi-Fi to beacons, omnichannel, social media, and the website.</p> <p>Similarly, when he talks with the CEO, he might say, “Can we talk about how there’s a channel shift going on? Can we talk about employee satisfaction and irregular operations?”</p> <p>These are matters the CEO thinks and cares about.</p> <p>O’Toole speaks in the language of his functional peers, and as a result they trust him to drive the growth agenda.</p> <h4>3. Build a magnet</h4> <p>As marketers, we’re familiar with the need to create our own markets.</p> <p>The most critical market one can build is at the core: the internal market for your ideas and the resultant desire for your leadership of them.</p> <p>One measure of a marketer’s success is their ability to market themself.</p> <p>And frankly, if you’re <a href="https://econsultancy.com/blog/67577-today-s-renaissance-cmo-should-master-both-logic-creativity" target="_blank">a good CMO</a>, you ought to be able to market your own programs, interests, and strategies at least as well as you promote the company’s offerings.</p> <p>Linton suggests the best way to do this is to emphasize pull over push, meaning you develop a market for analytics and your ability to provide them within the company first.</p> <blockquote> <p>Get the company to agree on the problems to solve and serve them above yourself. Set yourself development benchmarks, beat them, and then let the organization come to you begging for more.</p> <p>Once you have created and satisfied that demand across the organization, then you can lead.</p> </blockquote> <p>Ironically, it’s the art of change management that enables the advantage of data science.</p> <h4>4. Failure is an option</h4> <p>CMOs have a great deal of responsibility, growth agenda or not. At the same time, business, technology, and markets change at a remarkable pace.</p> <p>That requires a lot of effort and an outstanding team to deliver.</p> <p>Alan MacLeod, NBC Universal’s vice president of IT, consumer products, and brand management, contends:</p> <blockquote> <p>The team must be enabled so that everyone can take a piece of the CMO pie. In the successful data-driven organization, everyone relates to the growth agenda and owns a piece of it.</p> </blockquote> <p>But to achieve that exceptional level of collaboration and accountability, the CMO must encourage an environment that pushes the limits — and sometimes crashes into them.</p> <p>“It won’t always be done right, and it’s important to be okay with that,” Welch counsels.</p> <blockquote> <p>The ones achieving long-term success are unafraid to fail, and the best ones are leading that cultural shift with their teams.</p> <p>It creates an interesting dynamic on your team when you say, ‘It’s OK; we’re going to try some things. We’re not always going to get it right, but we’re going to continually get better about how we go about it.’</p> </blockquote> <h4>5. Know your limits</h4> <p>Leading the growth agenda through data is an exciting prospect. Many marketers are successfully absorbing the “<a href="https://econsultancy.com/blog/67416-who-owns-data-analytics-in-your-company-and-who-should/" target="_blank">big data</a>” assignments and the personnel, budgets, and associated responsibilities to deliver as a result.</p> <p>But don’t bite off more than you can chew. Beware the technology gold rush attempting to part corporate executives from their budgets.</p> <p>Nary a week goes by without multiple companies suggesting they’ve devised the holy grail for leveraging big data insights via a new instrument or tool.</p> <p>CMOs are particularly bombarded by these external forces and their messaging. Who is to know who is right or wrong? </p> <p>Welch likes the idea of each CMO having a “trusted big data consigliere: someone with the deep data-science technical knowledge who can help to vet each idea, and who cares first and foremost about the success of your business and is willing to test, learn, demonstrate a success, and become an extension of your team.</p> <blockquote> <p>Today, the job of managing a complex CMO desk is simply too much to go it alone.</p> <p>I see the best CMOs successfully engaging these external partners, especially those without conflict of interest. They are the ones having the most success today.</p> </blockquote> tag:www.econsultancy.com,2008:BlogPost/67758 2016-04-29T14:01:05+01:00 2016-04-29T14:01:05+01:00 Big data tools & techniques successful CMOs need to know John Kelly <p>Take the entertainment and ticketing business.</p> <p>Andrew Rentmeester, senior vice president of revenue planning and operations at The Madison Square Garden Company, sees it this way:</p> <blockquote> <p>What the CMO uses now (and will always need) are simple scrapes of the ticket inventory system and what’s sold today. If you don’t have that, you really don’t know where you are in the business.</p> </blockquote> <p>Rentmeester adds that, even though it’s just an inventory system for tickets, an old-school Excel sheet works. While it isn’t ideal, it’s needed, nonetheless.</p> <p>Consider the marketing of tires. Tire manufacturers struggle to understand the market value of their brand and products.</p> <p>Typically, they web-scrape prices listed by local retailers and make rough estimations of the value of their brand versus benchmarks.</p> <p>Even the application of this crude method of <a href="https://econsultancy.com/blog/67699-how-online-retailers-can-improve-price-optimization-strategies/">price optimization</a> improves margins in a very competitive market sector. </p> <p>Shawn O’Neal, vice president of global marketing data and analytics at Unilever, suggests that tool exploration begins before its analysis:</p> <blockquote> <p>You have to know what you want before you build the database with data tools. You have to understand what attributes you’re going to scale in the hierarchy and segmentation before you ever build the database.</p> <p>If you don’t have the database built for the data, you don’t capture it.</p> </blockquote> <h3>Big data tools on the CMO’s wish list<br> </h3> <p>Rentmeester says he would like to start his morning in this way:</p> <blockquote> <p>Marketing leadership and I need a dashboard concept that we look at and know what the overall state of our key marketing levers are so that we can use that to drive the business forward.</p> </blockquote> <p>He likes the idea of a type of dashboard mechanism that allows for quick insight into key sales drivers, year-to-date numbers, and prior-year numbers (and one that also provides a way to view the revenue funnels in parallel).</p> <p>For example, if you have a website and different digital marketing strategies for that website, you want to know which method is working best, how they are stacking up against each other and, most importantly, how they are relating back to sales. </p> <p>However, in a world where large, monolithic-type reporting engines still exist, Rentmeester finds that, by the time a report is generated, it’s already out of date because the questions have changed.</p> <p>If he wants to see one specific metric — such as the average ticket price in Section 340 for Knicks games — how does he get that metric quickly?</p> <p>He argues that the reporting structure isn’t usually oriented to answer that question at that point in time, which could prove to be a challenge for a CMO.</p> <p>He’s looking for a tool that allows him to get granular and to get as much data as he needs in order to make use of it as quickly as possible.</p> <h3>Tools or Techniques?<br> </h3> <p>Other executives claim there is more value to knowing a few standard analytical techniques above any one tool that should be leveraged.</p> <p>Sandeep Sacheti, executive VP at Wolters Kluwer, suggests the following “big five”.</p> <h4>1. A/B Testing</h4> <p><a href="https://econsultancy.com/blog/67249-a-beginner-s-guide-to-a-b-testing/">A/B testing</a>, as the name implies, involves a comparison or test. It is the simplest testing method possible, measuring the effectiveness of one path versus another.</p> <p>Some ideas for areas to A/B test include webpage design or timing of messages in an email campaign. One can test creative and response rates to specific offers as well.</p> <p>Although most marketers are well-informed of this basic technique, in the rush to get the job done and get to market, fewer employ it than one would expect.</p> <h4>2. Net Promoter Score (NPS)</h4> <p>NPS is an inherently simple concept to measure customer loyalty: It’s a tally of whether customers would recommend your business to others.</p> <p>While it might seem crazy that entire consultancies have been testing and reporting something as simple as the NPS concept, that number leads to the need for real strategic changes if not at its ideal level.</p> <p>Again, start simple: Are you asking your customers for it? And have you tracked how your score moves over time?</p> <h4>3. Customer Lifetime Value (CLTV)</h4> <p>Here’s another simple metric, but this one accomplishes a complex transformation — getting an organization to shift its priorities from quarterly profits to the health of customer relationships.</p> <p><a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">CLTV</a> is most applicable to businesses that can successfully achieve an annuity from their clients (think financial services, for example).</p> <p>Beyond that, it answers this question: “What is this customer worth to me?” to which there are three more consequential questions:</p> <ul> <li>Should I encourage this customer’s business, or let it go? </li> <li>If I want to encourage his or her business, how likely is he or she to continue?</li> <li>And what do I need to invest to keep that annuity going?</li> </ul> <h4>4. Recency, Frequency, Monetary (RFM) Analysis</h4> <p>This is the most basic method of measuring CLTV.</p> <p>Scoring of all three — combined with a weighting of each to reflect the specific importance of each to your business — is the essence of this simple tabular calculation.</p> <h4>5. Customer Wallet Estimation</h4> <p>Maintaining a base level of analytics ensures you know what your customer spends with you in a given period.</p> <p>However, in a competitive marketplace, do you know how much money that customer is spending in that same time period across your industry?</p> <p>This measure involves more advanced statistical analysis and some outside market audit data, including a small sample of customer spend with competitors.</p> <p>A reliable marketwide number can be derived from this small sample by employing rules of statistics.</p> <p>Provided in context, knowledge of this number is good for relative comparison combined with other data.</p> <p>For example, are some of your marketing dollars achieving as much customer money as your competitor’s marketing dollars are? </p> <h3>Making the most of the CMO’s big data toolkit<br> </h3> <p>What needs to happen to make these tools most effective for CMOs today and in the future?</p> <p>O’Neal insists that setting up big data infrastructures with big groups of people and big budgets is no longer the way to go.</p> <p>Analytics should be built to empower people to do work in a demand-driven way — and not in the way IT systems were built in the 1990s.</p> <p>He goes on to agree with Rentmeester above:</p> <blockquote> <p>We build minimum requirements that are highly alterable, not capacity models that hope demand will grow and become what you envision. Because what you envision today is changing so rapidly that, tomorrow, it’s out of date.</p> </blockquote> <p>Rentmeester, however, believes that more people are the answer to actually marshal the data and make it quickly usable.</p> <p>A large staff, with enough data sense and business acumen to drive business by the numbers, can achieve the right balance of analytical agility, innovation, and most importantly, actionable results.</p>