tag:econsultancy.com,2008:/topics/strategy-operations Latest Strategy & Operations content from Econsultancy 2018-05-21T13:00:00+01:00 tag:econsultancy.com,2008:BlogPost/70033 2018-05-21T13:00:00+01:00 2018-05-21T13:00:00+01:00 Why modern marketing is as much about mindset as technical skills Stephanie Miller <p>However, if you want to build a modern marketing organization, teaching technical skills is not the only answer (although those skills certainly matter!). As important as data is, it is not the most important, nor the central element in modern marketing.</p> <p>In fact, the core of modern marketing is <em>mindset. </em>Specifically, instilling a customer centric mindset is what makes marketing modern.</p> <p>Customer centricity is an approach or attitude, as well as a set of principles and practices. However, while easy to say (or even agree with), true customer-centric marketing is often elusive.</p> <p>Modern marketers must first embrace the fact that modern marketing is not simply a sum of all digital and classical disciplines. It's a specific set of skills and knowledge on top of those specialty areas. It's a set of principles and approaches that put customers at the center of all a brand does in the market.</p> <p>Customer value becomes the central tenet of every organizational function - from marketing to sales to product to IT to customer service. From there, a marketer who specializes in any area - from brand, to product, to advertising, to search, or to analytics - can become a modern practitioner.</p> <p>Econsultancy launched the <a href="https://econsultancy.com/reports/m3">Modern Marketing Model (M3)</a> last November, as the first model in three decades to address the wide scope of skills and approaches essential for modern marketing. Moving beyond Lauterborn's 4C's (introduced in 1990, and the most recent model prior to M3), the model defines marketing in the digital age.</p> <p><img src="https://assets.econsultancy.com/images/0009/2908/M3.jpg" alt="m3 modern marketing model" width="500"></p> <p>M3 is derived from three core principles, which are the foundation of any high performance marketing team. Essentially, modern marketing is:</p> <ol> <li> <strong>Customer Centric.</strong> Modern marketing puts customer experience at the core of all objectives and partnerships<em>. <strong>That means </strong>marketers must collect, </em><em>analyze and apply data insights throughout the customer journey in a continual, dynamic loop.</em> </li> <li> <strong>Integrated</strong>. Modern marketing is a blend of classic and digital disciplines and marketers<strong> </strong>are expert both in their specialty and at modern marketing.  <strong><em>That mean</em></strong><em><strong>s</strong> they have deep knowledge in one specialty/channel, and also innovate and advocate for improved customer experience.</em> </li> <li> <strong>Nimble &amp; Innovative.</strong> Modern marketing is responsive and agile, using technology strategically and effectively to create personalized experience. <strong><em>That means </em></strong><em>marketers<strong> </strong></em><em>master technology and data insights to reach, surprise and delight people who connect with the brand.<strong> </strong>Mindset is just as important as skills.</em> </li> </ol> <p>These core principles uphold the M3 model, and reflect the complexities and interdependencies of how marketers must work, as well as how organizations support and energize high impact marketing teams. </p> <p>You may have noticed a frequent refrain in this description. M3 is just as much about HOW to work, as it is a set of WHAT work (skillset) is required for modern marketing. This reflects a long-held truth: That marketing has long been a "whole person" profession - part art, part science - where coding is just as essential as copywriting. </p> <p>Are you ready to recognize the importance of modern marketing in your organization? Have you created an operating model and the encouragement necessary for marketers to perform in a modern manner?</p> <p>Take a look at <a href="https://econsultancy.com/reports/m3">our M3 overview</a> and use it to discuss your current approaches. We'd love to hear what questions and ideas it prompts for you and the team – get in touch via <a href="https://twitter.com/StephanieSAM?lang=en">@stephanieSAM</a> on Twitter, or email <a href="mailto:stephanie.miller@econsultancy.com">stephanie.miller@econsultancy.com</a>.</p> <p>Econsultancy also runs an online course, <a href="https://www.econsultancy.com/training/courses/fast-track-to-modern-marketing/">Fast Track to Modern Marketing</a>, designed to formalise your existing skills, and give you the confidence that you know your stuff – and how to prove it at the highest level.</p> <p><em>Stay tuned for part two of this series – applying the Econsultancy Modern Marketing Model to your business.  <strong>#ModernMarketing</strong></em></p> tag:econsultancy.com,2008:BlogPost/70027 2018-05-17T15:00:00+01:00 2018-05-17T15:00:00+01:00 How the Supreme Court sports betting ruling will affect the internet economy Patricio Robles <p>With PASPA gone, states will now be able to come up with their own laws to legalize, regulate and of course tax sports betting, setting up what could be one of the biggest gold rushes the American economy has seen in recent memory.</p> <p>While it could take several years for that gold rush to fully materialize, a good chunk of that gold rush will likely take place through digital channels and moves are already being made to capitalize.</p> <p>Here's a look at how.</p> <h3>Fantasy services and betting operators will vie for billion dollar jackpots </h3> <p>Operators of popular online fantasy sports services such as FanDuel and DraftKings are extremely well positioned to enter the sports betting market as states adopt laws permitting sports betting. In fact, prior to yesterday's Supreme Court ruling, DraftKings had already set up shop in New Jersey and hired a head of sportsbook. New Jersey was the lead plaintiff in the Supreme Court case. It had sued the federal government after it was blocked from legalizing sports betting.</p> <p>In addition to fantasy sports services, existing betting operators, such as casino operators and non-US online betting services, will also almost certainly jump into the legal sports betting fray. In fact, some, such as the UK's William Hill plc, <a href="https://www.marketwatch.com/story/william-hill-preps-for-nj-sports-betting-2018-05-14">are ready to pull the trigger</a>.</p> <p>Up for grabs: the billions upon billions of dollars that will inevitably be wagered each year by the millions Americans living in states that are likely to embrace legalized sports betting.</p> <h3>Googlebook is house money</h3> <p>The vast majority of every new dollar invested in digital advertising today goes to two companies – Google and Facebook – and as betting operators and firms that provide services targeting bettors seek to take advantage of the new regulatory environment, Google and Facebook will capture the bulk of the new ad spend.</p> <h3>Sports media will have lucrative new opportunities</h3> <p>As states implement laws that allow sports betting to occur within their borders, online and offline betting operators will no doubt seek to woo consumers in those states through advertising. While much of the marketing dollars will go to Googlebook, publishers that focus on or have significant exposure to American professional sports will also find that they have a lucrative new pool of marketing dollars to tap into.</p> <p>Depending on how markets shape up in each state, some of the advertising opportunities could be of the performance marketing variety in which publishers are paid fees for each new customer they deliver. Some online bookmakers even offer their affiliates commissions on the net revenue generated by customers they referred.</p> <p>To fully exploit this new opportunity, expect publishers to launch new properties that are dedicated to betting-related content. For example, ESPN already operates a fantasy sports channel and such a property could easily be extended to sports betting.</p> <h3>Tech giants and publishers could get into the act directly</h3> <p>While major tech companies and sports media players will no doubt earn fortunes from the newfound ability to sell sports betting ads targeting users in the US, there's also the potential that they could seek to develop their own sports betting platforms or partner with existing operators to integrate sports betting into their platforms.</p> <p>To be sure, such moves would carry with them significant risks, especially for companies like Google and Facebook. For this reason, there's no guarantee they'll pursue this path, but given just how lucrative sports betting in the US is going to be, all bets are off. </p> <h3>Nobody should count their chips before they have them</h3> <p>There is little doubt that legal sports betting is coming to the US but it's important to keep in mind that there are still far more unknowns than knowns at this point.</p> <p>For starters, before legal sports betting becomes ubiquitous on the other side of the pond, each state will have to create laws to legalize sports betting within their borders. Some states could, for instance, limit sports betting licenses to a few companies, such as existing casino operators. And states could place significant restrictions on internet-based betting, if they permit it at all.</p> <p>There's also the potential that the federal government could pass legislation to regulate sports betting at the federal level. While the Supreme Court decided that PASPA was unconstitutional, that doesn't mean there's no potential for the federal government to regulate sports betting constitutionally. </p> <p>With this in mind, it's clear that the opportunities created by the Supreme Court's ruling will not offer instant victories to every company that shows up for the game. Those who want to cash in will first need to place winning bets.</p> tag:econsultancy.com,2008:BlogPost/70026 2018-05-17T09:00:00+01:00 2018-05-17T09:00:00+01:00 Martech for operational excellence: How to build your 'productivity stack' Frazier Miller <p>In fact, Gartner’s figures show that CMOs allocated 3.24% of total company revenue to technology spending in 2016 – very close to the 3.4% of revenue CIOs earmarked for IT. </p> <p>As the change in the digital landscape accelerates, marketers are investing heavily in technology. Why? Because consumers have ever-increasing expectations around the speed of response and delivery, and personalisation (which starts at the very first interaction with your brand).</p> <p>Marketers are playing an increasingly important (and measurable) role in driving revenue. With the right marketing technology in place, marketers can deliver personalised messages to specific customer segments at the right time, throughout their interaction with the company.</p> <p>And, not only are marketers building better customer experiences, technology can track the return on pounds spent. This is a true game-changer for all marketers.   </p> <p>With the biggest line item in most CMO's budgets being personnel, one of the biggest opportunities to drive results for the business is using technology to help manage the work getting done. The efficacy of your marketing and impact of your brand ultimately come down to the quality and productivity of your people. The array of technology and systems savvy marketers are choosing increasingly includes project management tools and software that help teams operate in a lean, agile manner. These systems can give CMOs the confidence to know deadlines are being hit and quality work is getting done. By leveraging these collaborative work management tools, marketing teams can build a <a href="https://www.wrike.com/blog/operational-excellence-your-company-s-future-depends-on-it/">culture of operational excellence</a>. </p> <p>Such operational excellence is critical to success - especially in this day and age where the speed of change is so dramatic. <a href="https://hbr.org/2017/09/why-do-we-undervalue-competent-management">According to a piece</a> by Harvard Business Review, ‘firms with strong managerial processes perform significantly better on high-level metrics such as productivity, profitability, growth, and longevity’. Top performing teams are 75% more productive and businesses that implement best-in-class management practices experience 25% faster annual growth and up to $15m in profit increase. </p> <h3>How to build your ‘productivity stack’?</h3> <p>Chiefmartec editor Scott Brinker’s most recent marketing technology landscape highlights 5,000 marketing technology tools, which makes it insanely difficult for CMOs to know what technology tools to use, and when in a company’s growth to deploy them.</p> <p><img src="https://assets.econsultancy.com/images/0009/4521/chiefmartec_5000.jpg" alt="chief martec 5,000" width="615" height="346"></p> <p><em>The martech landscape supergraphic, <a href="https://chiefmartec.com/2018/04/marketing-technology-landscape-supergraphic-2018/">from Chiefmartec.com</a></em></p> <p>With so many new tools on offer, many of which include overlapping services/benefits, it is key that CMOs embrace their new role as one of the main technology purchasers/users within an organisation. Often second only to the CIO. You should be procuring the right tools to unlock operational efficiency within your teams.</p> <p>Questions to ask to get you started: </p> <ul> <li> <strong>What problem are we trying to solve?</strong> What’s broken today? Typical areas of concern within most businesses are: hitting deadlines on time, keeping projects within scope/budget, tracking costs to return on an ROI basis, getting visibility into the team’s work, and being able to showcase the work to the rest of the organisation.  </li> <li> <strong>How can we collaborate most effectively?</strong> Best-in-class organisations are executing integrated marketing campaigns across teams. This requires a high degree of interaction and collective organisation. While chat tools may be better in some respects than email, it might make sense to think about your workflow and collaboration behaviours. How can you create more ability for teams to work well together?  </li> <li> <strong>How can I drive increased performance of the team?</strong> Getting team members to take accountability for the work, and ensure they are working on the right stuff is at the heart of productivity solutions. Ensuring your team has the right data and strategic framework to push decision making down in the organisation is a worthy endeavour. Finding solutions that empower the team can be a big boost to morale as well.</li> <li> <strong>Finally, what are barriers for successful adoption and use?</strong> What is the corporate environment and appetite for technology tools? Are there solutions already being used across the organisation? How can you ensure that you are going to genuinely enhance productivity? Culture will play a critical role here – make sure you understand the culture in which you are operating so that you can plan for successful adoption. </li> </ul> <h3>Making ‘flawless execution’ a reality</h3> <p>The increase in spending on technology for the marketing team is symptomatic of the transformative effect technology is having on the marketing industry as a whole, and will likely only increase. From automated responses to team collaboration platforms and audience analysis tools, marketers are embracing new technologies to improve their speed of delivery, quality of work and ability to provide customised offerings for each individual. </p> <p>Done right, the introduction of marketing technology should add a tremendous competitive advantage, and unlock the opportunity to move ever closer to the holy grail – a culture of continuous improvement in pursuit of flawless execution.</p> <p><em><strong>Further reading:</strong></em></p> <ul> <li><a href="https://www.econsultancy.com/blog/69865-what-is-dark-martech-and-what-challenges-does-it-present">What is 'dark martech' and what challenges does it present?</a></li> </ul> tag:econsultancy.com,2008:BlogPost/70013 2018-05-15T09:00:00+01:00 2018-05-15T09:00:00+01:00 What is invitational marketing? And why do you need it? David Newberry <p>As Albert Einstein said:</p> <blockquote> <p>We can't solve problems by using the same kind of thinking we used when we created them.</p> </blockquote> <h3>Current marketing strategy is reaching breaking point</h3> <p>The role of marketing has always been to connect a company and brand with its audience in a way that establishes brand affinity. By achieving this, companies raise the likelihood that the individual will buy into their proposition. However, the way to achieving this has always been highly company-centric, where communication and engagement is sought based on the needs and goals of the organisation, rather than that of the consumer. The view being that if we offer something of interest and it is relevant, then consumers will be thankful for the company interrupting their lives with an advertisement or communication. </p> <p>Move forward to the modern day and this approach is clearly starting to fail. We all know that consumer expectation is rising; coupled with the following trends it is clear that current marketing strategy is reaching breaking point:</p> <ul> <li>Media fragmentation - so many different options for individuals to consume media and entertainment</li> <li>Channel proliferation - a growing number of channels (offline, online and social) through which to communicate</li> <li>Multiple devices - with individuals communicating through PCs, mobile phones and tablets</li> <li>Advertising saturation - the average US citizen exposed to over 3000 messages daily</li> <li>Explosion in the number of messages sent and received - with the average person receiving over 180 emails per day</li> <li>A diminishing, or perhaps more demanding, attention span</li> <li>Increased mental opt-out as an individual’s attention is not gained and therefore messages fail to be memory encoded, i.e. memorable</li> </ul> <p>Setting aside advertising, which is a blog post (or several) in itself, let’s take a look at direct consumer engagement when you have a known customer. </p> <p>Very simply this form of marketing is focused on the contact record. That’s it. This is the starting point and the premise is that the better we can understand the individual the better able we are to send them our most relevant offer. </p> <p>Here’s the scenario: We have a contact record. We ask the individual for some additional first party data. We add in some behavioural data, e.g. a previous purchase. We can add big data, from social feeds. We can even apply some unstructured data, e.g. from a call centre. We can even in some cases find some contextual data. In fact, we can add and apply any data we can capture.</p> <p>Then with all our AI and predictive analytics we can identify the propensity for each consumer to buy into our next proposition. From here we then profile each and every consumer. We can create segments, micro segments, even nano segments. Much is talked of 1:1 marketing. We will customize the offer for the specific individual. We can even identify the most likely time that consumers will respond. We then push out communication and offers on our terms, knowing that we have optimized the likelihood of a response and made the offer as relevant as possible to the individual who will be receiving our communication. That’s it, the smartest marketing we can do.  </p> <p>So how well is this working? Well there are tons of stats out there. Here’s some <a href="https://mailchimp.com/resources/research/email-marketing-benchmarks/">data from Mailchimp</a>: In summary, they generally find email open rates around 25% and a click through rate of just 2-3%. So, 97% of individuals are just not interested, and this is the smartest marketing we can do. Even with the best AI and self-learning programmes in the world how much better do we think we can do. </p> <p>In all honesty, this is the equivalent of a lemming standing on the edge of a cliff. If this is the best you can do, there really is nowhere else to go but down, with lower and lower click through rates being achieved.</p> <h3>Put yourself in your customers' shoes</h3> <p>So, what should modern marketing really look like? The way to approach this is to put yourself in the shoes of your prospective and current customers and to identify what you really believe their needs, expectations and aspirations are. Here are some thoughts:</p> <ul> <li>Consumers don’t want to be disrupted, based on company goals</li> <li>Consumers desire to be able to choose when they engage, and in what form they wish to engage (device / channel). They are weary and over-saturated with direct engagement</li> <li>Consumers want offers “In the Moment” when it makes sense to them, not the brand</li> <li>Consumers want to receive compelling and rewarding experiences, it is not just about what you offer but about how you offer it</li> <li>Consumers want to be able to define how their engagement unfolds – they want control. They want to define their own journey</li> <li>Consumers want to be rewarded for their engagement, there has to be mutual value in the exchange</li> <li>Consumers are happy to engage and respond to brands that are distinctive, fun and valuable</li> <li>Consumers want a continuous relationship on their terms</li> </ul> <p>To deliver against these expectations, modern marketing must place experience design at the core, both in terms of advertising as well as direct communication. So, what is <a href="https://www.econsultancy.com/reports/a-guide-to-customer-experience-management">experience design</a>? Very simply, it is developing an experience that the consumer will value, but where value is not constrained by a specific offer. Consumers value experiences that are interesting, informative, fun, artistic, shareable, curious and even humorous as we are potentially providing a good deal or a chance to win.</p> <p>If these experiences are valuable, then you don’t have to push them out as communications. All you need to do is to make them available, to invite individuals to engage, to participate, to respond. These invitations can be provided in many ways, both when the consumer is known and also when they are unknown. You also don’t have to limit who you are making the experience available to. This can be achieved in so many ways; QR codes, through Shazam, via packaging, display adds, via notifications etc.</p> <p>There are two key additional brand benefits:</p> <p><strong>1.</strong> When an individual responds to an invitation, you are 'in the moment'. You have contextual data like time of day, location, weather etc. so you can make each engagement highly relevant, compelling, fun and most importantly valuable. You can also pull through CRM data in real time, when customers are known, to make experiences truly smart.</p> <p><strong>2.</strong> You are also mass marketing. There is no reason to limit your invitation to a specific segment. You can position yourself to the entire category. When 50% of your business may come from casual or very infrequent purchases, you can influence these consumers as well. Increased penetration and real growth are more than possible, they are highly likely</p> <h3>Welcome to <em>invitational marketing</em> </h3> <p>Invitational marketing is making available an experience that is seen as being valuable by the individual and is so compelling that they have to engage.</p> <p>Invitational marketing is based on three fundamental principles:</p> <ol> <li>Make available interactive journeys that encourage your consumers to engage in a two-way conversation that they control, this is continuous, highly distinctive and builds emotional connection.</li> <li>Provide rewarding experiences that are seen as being highly valuable in the eyes of the consumer, whether it be fun, informative, offer-related, interesting or even humorous.</li> <li>Invite and motivate the consumer to engage in the moment, when they want to, in the way they want to. </li> </ol> <p>This is the future of marketing.</p> <p><em><strong>Any thoughts? Let us know in the comments below.</strong></em></p> tag:econsultancy.com,2008:BlogPost/69998 2018-05-11T13:26:00+01:00 2018-05-11T13:26:00+01:00 The six types of marketing org structure Ben Davis <p>Anyway, the blog is here to offer you a preview of said report, and specifically to mention the six proposed organisational structures fully visualised and discussed within.</p> <p>These structures are no easy task to define, given the lines between marketing, PR, advertising, ecommerce, tech, operations, product, design, sales and customer service can blur. Before we get on with it, I should mention that the report also attempts to define customer experience, content and data, splitting them out into respective domains, activities, functions and roles.</p> <h3>Why now? </h3> <p>Unless you've been living under a rock, you will probably know that in 2017 Econsultancy published a new unifying framework for modern marketing called <a href="https://econsultancy.com/blog/69468-introducing-the-modern-marketing-model-m3">the Modern Marketing Model (M3)</a>.</p> <p>Here it is...</p> <p><img src="https://assets.econsultancy.com/images/0009/2908/M3.jpg" alt="m3 model" width="615"></p> <p><em>The M3 model</em></p> <p>The aim of the model is to reconcile classical and digital marketing and define what the marketing function does.</p> <p>This reconciliation is very much an ongoing process in the real world, given our recent <a href="https://www.econsultancy.com/reports/a-guide-to-customer-experience-management">Guide to Customer Experience Management</a> revealed that less than half of respondents said they had an integrated approach to online and offline marketing (see chart below).</p> <p><img src="https://assets.econsultancy.com/images/0009/4367/integration_of_classic_and_digital_marketing.png" alt="integration of classic and digital marketing" width="615"> </p> <p>So, with the M3 model and its aims a metaphorical gauntlet thrown down, the org structures compiled in our new report describe the way marketing is organised today and can be used as blueprints (for competencies, hiring and managing).</p> <p>Here's M3 creator and Econsultancy founder Ashley Friedlein:</p> <blockquote> <p>The structure employed by an organisation will be determined by its people, processes, technology and competitive landscape. That means that there is no one-size-fits-all approach.</p> <p>At a minimum, companies will need to break organisational silos and connect teams responsible for different channels so that they can collaborate and deliver seamless and consistent experiences. Intuitively, this makes sense, but operationally, this can take time to execute and may require the support of partners to redesign teams and processes.</p> </blockquote> <h3>The six structures </h3> <p>These structures serve as the basic building blocks of organisational design. The report examines how marketing leaders might apply the M3 framework to each of these structures. As previously stated, you'll have to dive into <a href="https://econsultancy.com/reports/a-guide-to-the-modern-marketing-model-m3-and-organisational-structures/">the report</a> for full visualisation of these structures with detail on which roles and teams sit where and why.</p> <h4>1. Product-focused organisational structure</h4> <p>A product-focused org structure may be useful when only a few major customers or customer types make up most of the business revenue. Product or brand managers are responsible for a product’s marketing plan and the implementation of this plan to achieve market share and profit goals.</p> <p>Product managers may be directly responsible for marketing strategy, marketing operations, customer insights and analytics. They may need to enlist the support of (but may not have responsibility for) brand, marketing, media planning and buying, PR, sales, manufacturing and finance.</p> <h4>2. Geographically-focused organisational structure</h4> <p>Big companies serving multiple markets may need geographic specialisation. The sheer size of the market area might require smaller marketing units to address regional requirements effectively.</p> <p>This can still be a customer-centric approach, given that customer preferences can vary in different geographic markets. The challenge, however, is ensuring good communication between territories. If not, this can create inconsistency.</p> <h4>3. Channel-focused organisational structure</h4> <p>Here, channel expertise is the primary basis for structuring the org (e.g. direct mail, ecommerce, loyalty). This arrangement has become popular in response to an increasing fragmentation of channels.</p> <p>Though there may be deep channel expertise, this is perhaps caveated with a difficulty in coordinating seamless customer experiences across channels.</p> <h4>4. Functionally-focused organisational structure</h4> <p>An organisation based on common job functions has separate departments or teams created for areas such as advertising, sales or market research.</p> <p>Again, this is a structure that can be explained by fragmentation of media channels but also marketing tools and tactics. If specialist expertise is required (as became necessary for search or, lately, programmatic) functional teams are a simple way to address these requirements, if, indeed, they are not outsourced.</p> <h4>5. Segment-focused organisational structure</h4> <p>Organising around groups of customers, related by industry, application or usage, for example, is another approach. Econsultancy's report identifies this structure as the one that most closely aligns with M3.</p> <p>Such a structure allows for identificaiton of changes in audience behaviour and opportunities to cross-sell and up-sell, though it can lead to duplication of functional expertise such as sales and each segment needs to be scalable. </p> <h4>6. The customer journey-focused organisational structure</h4> <p>This is a variant of the segment-focused org and represents a de-emphasis of product and geography, and a reflection of the customer journey. As the report puts it, "after all, a business cannot optimise the customer experience without organising activities around the customer journey."</p> <p>Acquisiton, retention and growth are given equal footing, with a so-called omnichannel experience the focus.</p> <h3>The tangible meets the intangible </h3> <p>Let's go back to the M3 model again. Its principles are:</p> <ol> <li>Customer-centricity</li> <li>Integration (of classic and digital disciplines)</li> <li>Agility (responsive and able to create personalised experiences)</li> </ol> <p>But where terms like 'customer centricity' arise, the report authors are quick to recognise the meeting of culture and structure. Indeed, the report states "in some cases, organisational structure may provide an indication as to what kind of culture exists in a business. The organisational structure can dictate how information flows throughout the organisation. It provides an indication of reporting lines and generally how a business gathers resources to achieve business objectives."</p> <p>This means org structure is a really important link between the philosophy (if you like) of customer centricity, often instigated by founders or CEOs, and the reality of culture and process.</p> <p>By creating the right structure, marketing can work towards the modern goal of making every interaction with a customer as relevant, pleasurable, easy and useful as possible for them.</p> <p><em><strong>Download <a href="https://econsultancy.com/reports/a-guide-to-the-modern-marketing-model-m3-and-organisational-structures/">A Guide to the Modern Marketing Model and Organisational Structures</a> today.</strong></em></p> <p><em><strong>Econsultancy also offers an excellent online training course - <a href="https://econsultancy.com/training/courses/fast-track-to-modern-marketing">Fast Track to Modern Marketing</a> - taught by Ashley Friedlein and covering the 10 parts to the M3 model:</strong></em></p> <ul> <li><strong><em>Marketing Strategy</em></strong></li> <li><strong><em>Market Orientation</em></strong></li> <li><strong><em>Customer Insight</em></strong></li> <li><strong><em>Brand &amp; Value</em></strong></li> <li><strong><em>Segmentation &amp; Targeting</em></strong></li> <li><strong><em>Positioning</em></strong></li> <li><strong><em>Customer Experience &amp; Content</em></strong></li> <li><strong><em>Distribution</em></strong></li> <li><strong><em>Promotion</em></strong></li> <li> <strong><em>Data &amp; Measurement</em></strong> </li> </ul> tag:econsultancy.com,2008:Report/3008 2018-04-23T13:39:00+01:00 2018-04-23T13:39:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are also available:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a><br></strong></li> <li><strong><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a></strong></strong></li> <li> <strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a></strong><strong> </strong> </li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> <li><strong><a title="Travel Statistics Compendium" href="https://econsultancy.com/reports/travel-statistics-compendium/" target="_self">Travel</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/69927 2018-04-19T16:11:00+01:00 2018-04-19T16:11:00+01:00 Why trust & transparency are crucial components of brand success Lynette Saunders <p>A new Econsultancy report, <a href="https://econsultancy.com/reports/trust-transparency-brand-safety/">Trust, Transparency and Brand Safety</a> looks at how companies are focusing on these areas and consider the factors which have been impacting trust, driving a need for further transparency around a brand’s advertising, and affecting how businesses operate and communicate with their customers. </p> <p>The research is based on interviews with senior executives working for brands, agencies, media owners and publishers including ANZ Private Bank Australia, The Financial Times, Formula 1®, Jaguar Land Rover, Kantar TNS, Royal Mail, Schroders APAC, The FA and Virgin Atlantic.</p> <p>For more insight, Econsultancy subscribers can <a href="https://econsultancy.com/reports/trust-transparency-brand-safety/">download the full report</a>, but here are several key themes and recommendations emerging from the study.</p> <h3>Taking control of your marketing communications</h3> <p>There was a lot of talk during 2017 about the need to clean up digital advertising and the impact of ‘fake news’ on trust. A CMO Council <a href="https://www.cmocouncil.org/thought-leadership/reports/brand-protection-from-digital-content-infection">study</a> found that 78% of companies say their brands have been hurt by unintended associations with objectionable content, images, topics, audiences or conversations.</p> <p>72% of CMOs say they are facing pressure from management to secure brand trust and gain tighter ad controls. </p> <p>Interviewees for Econsultancy's report supported the need for greater transparency from their agencies. Some acknowledged they may have to pay more money for their advertising, but would rather do this to ensure their brand content appears in the right context to the right audiences.  </p> <p>To ensure greater transparency a number of interviewees are developing stronger digital advertising guidelines and contracts for agencies and buying networks to adhere to. Many have also implemented better controls and processes to drive accountability clientside and are also taking steps to better track and monitor ad placements through internal resources, which can often include a manual approval process. </p> <p>A number of companies interviewed also highlighted the need for clarity on performance-related fees with their agencies and having transparency from the very beginning with any new relationship. <a href="https://www.wsj.com/articles/brands-look-to-take-back-some-digital-control-from-ad-agencies-1502883557">According</a> to the WFA more than half (53%) of marketers in a survey said they had added “audit right” clauses to their contracts over the past year. The same proportion said they had added clauses related to media rebates.</p> <h3>Being transparent about your business</h3> <p><a href="http://www.trinitymirrorsolutions.co.uk/whentrustfallsdown">58% of adults</a> don’t trust a brand until they have seen ‘real world proof’ that it has kept its promises.</p> <p>The reality of your business has to match up to your promise to consumers was a clear message from interviewees. John Sinke, Director of Marketing at Hong Kong Disneyland, described how they are demonstrating their ethics by trying to get as close as possible to the truth when letting people know what to expect from their products, service and experience when they come to the park or their hotel.</p> <p>For Sinke this acts as a guiding principle for marketing and advertising to make sure that what they are trying to market through all channels is in line with reality. The team would rather under promise and over deliver than the other way round.</p> <p>With the imminent requirements of <a href="https://www.econsultancy.com/reports/a-marketer-s-guide-to-the-general-data-protection-regulation-gdpr">GDPR</a>, report interviewees saw an opportunity to be clear with customers about why they want their data, how they are collecting information about them and how it will be used. It was then seen as important to use this data in a way that engenders trust and channels transparency. </p> <h3>Putting the customer first and focusing on what your brand stands for</h3> <p>It is clear that too often it is the technology driving a brand’s marketing strategy rather than the customer need.</p> <p>But for Atom Bank the aim is to do what is best for their customers and build from the customer out.</p> <p>“Trust is absolutely embedded into our marketing strategy and built into the culture of the company so that everything we do is about building trust and transparency with our consumers. Transparency is one of our design standards, one of the things we hold ourselves accountable to when designing our Atom proposition” said Lisa Wood, Chief Marketing Officer at Atom Bank.</p> <p>Above all there was a strong view amongst report interviewees that companies must deliver on their promise to consumers and for behaviours of everyone in the company to reflect the values of the business. For brands to help build trust they need to demonstrate that they “really believe” in what they say they stand for. </p> <p>Tara Prabhakar, Global Director of Client Impact at Kantar TNS highlighted the company had identified 10 principles of trust that cluster around three key areas:</p> <ul> <li>Integrity – brands that are trustworthy and operate on integrity.</li> <li>Inclusion – making consumers feel part of that brand world and setting up rules of engagement to include them.</li> <li>Identification – trusted people identify with a brand and understand their needs in specific context. </li> </ul> <p>Finally, it makes good business to be open about your business to your customers and your employees. Focusing on trust can give you a competitive edge. As highlighted by Ellie Norman, Director of Marketing at Formula 1, brands should think of themselves more as individual people with morals and values that they live by.</p> <p><em><strong>For more insight, download the new Econsultancy report - <a href="https://econsultancy.com/reports/trust-transparency-brand-safety/">Trust, Transparency and Brand Safety</a>.</strong></em></p> tag:econsultancy.com,2008:BlogPost/69945 2018-04-16T14:59:54+01:00 2018-04-16T14:59:54+01:00 Companies around the world are worried about the GDPR: study Patricio Robles <p>Those fines likely explain why, according to <a href="https://www.netapp.com/us/media/netapp-gdpr-survey-findings.pdf">a survey</a> conducted by NetApp, which polled over 1,100 C-suite executives, CIOs and IT managers, companies around the globe <a href="https://www.businesswire.com/news/home/20180411005738/en/45-Days-76-U.S.-Organizations-Concerned-Meeting">are worried</a> about the potential effects of the GDPR on their businesses. </p> <p>44% of the companies NetApp surveyed fear that they could lose revenue because of a failure to comply with the GDPR. In the US, the percentage is even higher, with just over half of companies expressing this concern.</p> <p><img src="https://assets.econsultancy.com/images/0009/3584/netapp-gdpr.png" alt="" width="800"></p> <p>Globally, half of companies also worry that a failure to comply with the GDPR could result in reputational harm, a fear that doesn't seem misplaced given the fallout from <a href="https://www.econsultancy.com/blog/69902-facebook-is-in-real-trouble-what-it-could-mean-for-marketers">Facebook's Cambridge Analytica scandal</a>. Econsultancy's <a href="https://www.econsultancy.com/reports/a-marketer-s-guide-to-the-general-data-protection-regulation-gdpr">own GDPR research</a> shows a starker picture, with 70% of brands very or somewhat concerned about the damage to brand reputation associated with non-compliance.</p> <p>But the concern around GDPR compliance cuts way deeper than revenue loss and reputational damage. Globally, 35% of companies fear that the financial penalties possible under the GDPR could imperil their very existence. In the UK and US, over 40% feel this way, according to NetApp.</p> <p>Unfortunately, while awareness of the GDPR is relatively high, two-thirds of companies are not confident they'll be in compliance with the GDPR when it goes into effect. Beyond the general complexity of the GDPR, there's a seemingly good explanation for this: well under half (40%) of those polled by NetApp indicated that their businesses are confident they know where their data is stored.</p> <p>According to NetApp, “Understanding where data is stored is the first step for businesses towards GDPR compliance.” In other words, it's hard to comply with the GDPR if you don't know where the data you're required to protect actually lives.</p> <p>Econsultancy's GDPR research is perhaps more optimistic than the NetApp figures, with 33% of clientside marketers saying they already have a plan or framework in place for compliance and 50% saying that whilst they don't yet have a plan, they are working on one.</p> <h3>A silver lining</h3> <p>The good news for companies is that despite any challenges they face in complying with the GDPR, the opportunities will arguably far outweigh the costs. As Kieran Flanagan recently explained, <a href="https://econsultancy.com/blog/69870-gdpr-why-the-opportunities-far-outweigh-the-costs">the GDPR will help companies deliver better user experiences and use their data more effectively</a>.</p> <p>“If you focus on this as an opportunity to improve how you handle data and how you engage with your prospect and customers, you'll see that this is a step in the right direction,” he suggested.</p> <p>What's more, given the likelihood that rules similar to those promulgated by the GDPR are eventually likely to be enacted in other parts of the world, including in the US, companies that make the effort and investments necessary to comply with GDPR should be well-positioned to deal with new legislation. This is likely to be especially true for businesses <a href="https://econsultancy.com/blog/69935-companies-should-consider-embracing-the-gdpr-even-where-they-don-t-have-to">that embrace the GDPR as a global standard</a>.</p> <p><a href="https://www.econsultancy.com/reports/a-marketer-s-guide-to-the-general-data-protection-regulation-gdpr"><img src="https://assets.econsultancy.com/images/0009/3207/gdpr_report.png" alt="gdpr" width="615" height="243"></a></p> tag:econsultancy.com,2008:BlogPost/69948 2018-04-16T10:42:59+01:00 2018-04-16T10:42:59+01:00 'Marginal gains' is dead. Long live strategic marketing. Frederic Kalinke <p>However, Wiggins’s scepticism is more than an egotist’s attempt to claim his rightful share of the credit back from his support staff. “Marginal gains” <em>is</em> a buzz-word; one which chief sports writer for the Independent Jonathan Liew <a href="https://www.independent.co.uk/sport/cycling/team-sky-rise-and-fall-sad-parable-human-nature-bradley-wiggins-dave-brailsford-a8247016.html">calls</a> “not simply a natty little tale to spin the papers, but a cultish business credo that its advocates have ruthlessly commodified for personal enrichment.”</p> <p>It both was and is more important to get the fundamentals right.</p> <p>For British Cycling and Team Sky getting the fundamentals right has chiefly meant a funding advantage over their rivals. In marketing though, marginal gains have often been sought through conversion rate optimization (CRO).</p> <p>In its broadest sense, CRO means getting more of the people who visit your website to buy what you are selling. In practice it often means iterating through lots of small to medium-sized changes in order to optimize the entire site.</p> <h3>End of an era</h3> <p>Neatly enough, interest in CRO has grown in tandem with the success of marginal gains at British cycling, beginning in 2008 (the year of the Beijing Olympics). </p> <p><img src="https://assets.econsultancy.com/images/0009/3591/cro_interest_over_time.png" alt="interest in cro over time" width="350"></p> <p>In another coincidence of zeitgeist, 2008 was the year of <a href="https://blog.optimizely.com/2010/11/29/how-obama-raised-60-million-by-running-a-simple-experiment/">the founding myth</a> of one of the biggest and most influential CRO-focussed companies out there, Optimizely. The company was founded in 2010 by two former colleagues at Google. One, Dan Siroker, had been the Director of Analytics on Barack Obama’s victorious campaign for the Presidency of the United States.</p> <p>It would be fatuous to suggest that the end of the era of marginal gains is a death knell for Optimizely. However, in a tacit acceptance of the inefficacy of incrementalism and the “marginal gains” breed of optimization, Optimizely has <a href="https://venturebeat.com/2016/09/15/optimizely-x-launches-so-marketers-can-experiment-everywhere-including-tv/">moved away from the pure-CRO service</a> it once provided (now called Classic) and funnelled resources into a new, broader marketing technology, Optimizely X.</p> <h3>Dare to think</h3> <p>Regardless of whether you think there is something to this zeitgeist or not, marketers would be wise to embrace its spirit. Improving a website’s conversion rate is one of the most important tasks in marketing, but it cannot be achieved by fiddling around the edges. We need to be bolder, daring, and <a href="https://www.marketingweek.com/2018/01/09/mark-ritson-strategic-thinking/">most importantly, thoughtful</a>.</p> <p>Occasionally a case study may trumpet great successes from the manipulation of button colours, but these are invariably <a href="http://kadavy.net/blog/posts/aa-testing/">based on poor quality statistics</a>. In practice, the optimizations that deliver meaningful results are the big ones, such as entirely new customer journeys. (Indeed, advice like this was echoed recently in <a href="https://www.marketingweek.com/2017/08/08/sign-webinar-building-world-class-optimisation-programme/">a Marketing Week webinar</a> conducted by Optimizely, supported by data across experiments on their platform.)</p> <p>Hertz increased enrolment in their gold member loyalty programme by 60% when they experimented with all the pages of the online booking journey rather than making marginal tweaks to landing pages.</p> <p>Trying out a bold new idea might have been described as risky were it not for rigorous A/B testing of the new journey against the old. This also allowed Hertz’s marketers to roll back any changes immediately if they far underperformed the control.</p> <p>60% improvements might be unheard of in top-level sport but in marketing they are there for the taking for those with the confidence to think strategically. </p> <h3>Be strategic</h3> <p>To think in the necessary strategic ways, marketers will need to, as the Met Office’s Head of Digital Marketing, Simon Swan <a href="https://amigotechnology.com/leaders-in-marketing-simon-swan/?ast=BPPPlb">put it</a>, “stop jumping straight into the shiny tactics and start with understanding your audience and what your objective is.” </p> <p>This is about bringing simplicity to something that can be very complex. It is difficult, which might be why marketers (perhaps working too many hours or with too many responsibilities pulling them in different directions) have tended to recoil from it in recent years. </p> <p>Making great leaps forward requires hard thinking, and disciplined testing of your best ideas. It may be tempting to throw 100 variations into a <a href="https://blog.hubspot.com/blog/tabid/6307/bid/30556/the-critical-difference-between-a-b-and-multivariate-tests.aspx">multivariate test</a> and believe that the data can make your mind up for you. It cannot. You will still only be throwing in 100 ideas out of the infinite number of changes you could make to your site, and (<a href="https://www.theguardian.com/technology/2014/feb/05/why-google-engineers-designers">unless you’re Google</a>) you won’t have enough traffic to test them all.</p> <p>One good big idea will always be preferable to 100s of bad or negligible ones.</p> <p>In 2018, marketers ought to do what comes naturally to them, follow the zeitgeist. Stop looking for small wins and incremental improvements. Start thinking, all the way from first principles, about how you can effect a revolution in your customer journey.</p> <p><a href="https://econsultancy.com/reports/a-guide-to-customer-experience-management/"><img src="https://assets.econsultancy.com/images/0009/3592/Customer_Experience_Management_Best_Practice_Widget__1_.png" alt="customer experience management best practice guide (subscriber only)" width="615" height="242"></a></p> tag:econsultancy.com,2008:BlogPost/69939 2018-04-11T14:04:58+01:00 2018-04-11T14:04:58+01:00 Why dynamic pricing is still as relevant as ever Min-Jee Hwang <p>With its growing popularity, any retailer that didn't have some form of dynamic pricing implemented might risk missing out on increased margins when competitors run out of inventory. On the other end of the spectrum, a retailer could be missing out on sales opportunities if a competitor drops their prices, leaving that retailer with a relative price that is way too high to be competitive.</p> <p>Dynamic pricing is still relevant because online retail is as competitive as ever, which means it's harder to capture pricing opportunities (to maximize margin or revenue, depending on your strategy) in real-time. </p> <p>'Retail winners' overwhelmingly find dynamic pricing more effective than price matching – 65% of retail winners and 46% of others agree with that statement, <a href="https://www.rsrresearch.com/research/retail-pricing-2017-the-dawn-of-personalized-prices">according to an RSR Research study</a>. It's not about pricing lower, it's about pricing more intelligently. Dynamic pricing means pricing according to internal and external variables, such as stock levels and competitor prices. You need timely, accurate data in order to do it right.</p> <h3>Dynamic pricing benefits</h3> <h4>1. Keep up with market trends</h4> <p>Retail moves fast. You may have the best price in the market one moment and be beat by multiple competitors the next. With dynamic pricing, retailers can stay up to date on competitors' prices, as well as other pricing and inventory trends, and automatically incorporate those variables into new pricing. Imagine manually trying to keep up with market trends and repricing your SKUs based on that data before the market changes. Sounds impossible, doesn't it?</p> <h4>2. Boost stagnant sales</h4> <p>Are your sales lackluster or do you need to clear inventory faster? Discounts are necessary sometimes, but it's important to ensure you don't price too low, or too high. With dynamic pricing, you can lower prices to meet your revenue goals by incorporating market trends, internal stock levels, and competitor data to find the most ideal price.</p> <h4>3. Maximize margins</h4> <p>On the flip side, dynamic pricing can be used to identify when you can raise prices to maximize margins without negatively impacting revenue. For example, perhaps your top competitor is priced significantly higher than you, or you are the only seller in the market. In both of these scenarios, you can test higher prices to estimate demand elasticity. </p> <h4>4. Scalability</h4> <p>If you're managing a large number of SKUs, perhaps the most important consideration is whether the pricing strategy you have in place is scalable. Only then can you ensure sustainability and long-term success. Many retailers have invested in building technology to support the dynamic pricing process or have turned to third-party providers to automate what was once an extremely tedious, manual, and inaccurate process.</p> <h3>Common misconceptions about dynamic pricing</h3> <p>While the benefits of dynamic pricing are clear, many retailers are hesitant to implement such a strategy due to some common fears:</p> <h4>Will dynamic pricing deplete margins?</h4> <p>Dynamic pricing is often associated with Amazon's aggressive price slashing strategy, and many retailers worry that changing their prices based on competitor pricing will force them into a margin-depleting price war. After all, most retailers can't afford to be as aggressive on price as Amazon. </p> <p>A few ways to prevent this domino effect from happening include setting price guards to make sure your pricing never goes below a certain price and incorporating other pricing variables, besides competitor pricing, into the equation.</p> <h4>Will consumers be turned off by dynamic pricing?</h4> <p>Another company that is often associated with dynamic pricing is Uber. Trying to call an Uber during a peak time can be 10x the normal cost, and consumers certainly didn't take kindly to surge pricing. While that's an extreme example, it's a reasonable concern that consumer sentiment may suffer.</p> <p><strong>But consider this:</strong> consumers are used to sales and discounts. This is no different, in the sense that consumers end up paying different prices for the same items. While incredibly frequent price changes are most likely not the right strategy, carefully implemented price changes at the right time can be a win-win for both retailers and savvy shoppers.</p> <p>In addition, just like the price guards mentioned above can protect your margins from falling below a given threshold, you can also set an upper bound to ensure your prices are always in line with your brand identity and customer expectations. </p> <h3>Closing thoughts</h3> <p>Dynamic pricing in retail is plagued with misconceptions, but Amazon's success with it proves that it is worth the time and effort. While customers might take some time to get used to the concept, rest assured they will. As a retailer, dynamic pricing is more relevant than ever because it helps them make the most of existing traffic and sales. Pricing can fluctuate within an ethical framework and still keep shoppers happy. </p> <p><a href="https://econsultancy.com/reports/ecommerce"><em><strong><img src="https://assets.econsultancy.com/images/0009/3439/Ecommerce_Best_Practice_Widget.png" alt="ecommerce best practice guide (subscriber only)" width="615" height="243"></strong></em></a></p>