Archive | May 2013

Infographic: CMOs facing a disconnect in their digital marketing strategies

BY  ON 24 MAY 2013
Link to: Infographic: CMOs facing a disconnect in their digital marketing strategies

CMOs are facing a disconnect in their digital marketing strategies, a new survey has found. Of all surveyed, 65% of CMOs say a digital focus is important, however only 7% believed their performance was ‘leading edge’ and almost 50% of Australian CMOs surveyed believe their customers are becoming harder to reach and influence through traditional marketing channels.

Patricio De Matteis, managing director, Accenture Interactive Asia Pacific says irrespective of the type of media spend CMOs engage in, whether it be real-time bidding, convergence buys, performance buys or even direct buys, analytics are still essential in driving smarter digital purchases.

“Analytics allows for independent verification that the ads purchased ran accordingly; assists marketing teams to assess buy performance; has the ability to influence changes to forthcoming strategies and; assists companies in revising their media buying parameters therefore improving targeting and efficiency,” he says.

De Matteis, is also adamant that acquiring and retaining customer sales should remain at the top of the CMO priority list. “Today’s consumer has more control than ever before. They’re savvier, sceptical of traditional marketing methods and have greater access to products and services via the internet. Within this climate, it is becoming much more difficult to reach them and to measure marketing interactions,” he adds.

“Companies must evolve their marketing strategies to remain relevant to their customer.  Ideally, businesses will restructure the organisation to work horizontally to deliver seamless and relevant customer experiences across all points of interaction. This delivery of a consistent customer experience is essential to survival in the global marketplace.”

Investing in data analytics to improve understanding of changing consumer needs is something that CMOs should begin to invest in, which will in turn help them ultimately succeed with their customers.

This was made obvious in the Accenture 2012 CMO Insights Survey where nearly half of all CMOs said that in order to help retain and grow their customer base they will spend more on managing customer data, 40% will increase budget spend on web analytics and 39% will spend more on marketing analytics.

De Matteis says the marketing function of CMOs must undergo a dramatic overhaul in the next five years if it is to stay on top of evolving consumer behaviour.

Some of the significant changes he expects to see include:

– The rise of digital – as previously highlighted, businesses lack confidence in their digital capabilities and are realising the need for increased digitalisation. For this reason, we predict that everything digital – including budgets, social media and dedicated digital employees – will continue to rise.

– Investing in big data and analytics – CMOs have recognised the importance of analytics in understanding consumer intent. We therefore expect marketers to increase their spend in areas such as managing customer data, web analytics and marketing analytics.

~ Curated by TME World of Marketing, May 29, 2013

Source: http://www.marketingmag.com.au/news/cmos-facing-a-disconnect-in-their-digital-marketing-strategies-40728/#.UaUpECs-LC4

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CMO’s: Enlist an army of brand advocates across your enterprise

Forrester to CMOs: Engage, Excite and Educate Employees

By   May 21, 2013

Balancing the demands of digital marketing isn’t easy, especially if you’re the chief marketing officer. What makes you most successful? No one can deny that leveraging big data to build solid relationships customers is key, but according to a new report by Forrester, most CMOs believe it’s actually an enterprise-wide commitment to brand building that is critical to success.

We’re All in this Together

One-hundred percent of the marketing leaders surveyed agreed that ‘brand building is a company-wide effort that requires employees in all departments to be brand ambassadors.’ However, the reality doesn’t necessary reflect those sentiments. Previous reports have shown that most organizations are still experimenting with modern brand building and in a new report Build Your Army of Brand Advocates From Across the Enterprise only 41% believe their CEO is setting a vision for brand building across all consumer touch points.

CMOs know how to build an army of brand advocates among their customers, but having an army of cheerleaders within the organization is also necessary. Forrester’s new report outlines a few steps everyone in the C-suite must take to ensure that the organization’s employees are excited and empowered.

Educate, Excite, & Engage

The three-step framework works to foster engagement while promoting awareness and educating employees about the brand’s mission and values. The era of the empowered employee taught us to invest in our workforce. To help them help the company and yet, it seems to have stalled. Perhaps due to a struggling economy, slashed budgets and lean teams, convincing employees to put their trust and loyalty into a company has become harder. However, without their participation, the strongest customer-facing brand will struggle to thrive if its employees don’t support its missions and uphold its values.

Forrester_BrandAdvocates_Army.png

The report reinforces the need for investing in employee education, inspiring excitement and actively engaging employees into all parts of the customer experienceso they not only understand how the brand is introduced, but also so they understand the role they play in the process.

Convince & Convert

While this helps to emphasize the need for internal brand advocates, nothing in this report is new. We all know how important it is to find the allies within an organization and get them involved in piloting new processes and championing innovation. Their successes and testimonials can help others move from skeptics to adopters. Perhaps your company already has similar employee adoption programs focused towards improving software or intranet integration. CMOs and others in the C-suite are behooved to work together to apply similar models so brand building becomes a natural part of an organization’s culture.

Building your army of brand advocates doesn’t always come naturally, however. Often it requires an intentional focus on helping employees learn about why the company does what it does and the impact that it has on customers and in society. Convincing and converting employees into brand advocates can also appeal to customers, who understand that a good company is built on the backs of those who work behind the scenes.

~ Curated by TME World of Marketing, May 22, 2013

Source: http://www.cmswire.com/cms/customer-experience/forrester-to-cmos-engage-excite-and-educate-employees-021000.php

Forrester: Want Marketing Innovation? Change Your Corporate Culture

By  (@xbarrylevine)   May 20, 2013   

Forrester: Want Marketing Innovation? Change Your Corporate Culture

What’s the key to adopting the kind of marketing innovation that is necessary in today’s environment? According to a new report from Forrester Research, it boils down to one thing: a culture of innovation.

The report, “Culture is Key to Marketing Innovation Velocity,” said that creating an innovation-driven marketing culture is “the hardest challenge,” but it is necessary in order to “build a marketing innovation foundation and culture that emphasize a post-digital mindset” and reward innovation. Traditional marketing channels, tools and strategies, the report noted, are becoming less and less effective.

Digital Innovators: Nestle, 7-Eleven, Chick fil-A

Innovation, by definition, takes many forms. The report points to Nestle’s recruiting and development of digital leaders, 7-Eleven’s creation of a business innovation team that was outside its core group, and Chick fil-A’s broad roll out of Daddy-Daughter Date Night that began at a single store.

Behind these program examples, Forrester said, was an attitude toward marketing innovation that can “unlock discontinuous or disruptive marketing programs.” Digital leads the innovation culture, such as with digital labs that are designed to provide spaces for experimentation and for leveraging data. But digital efforts have to be integrated with physical traditional marketing that can magnify progress with point-of-purchase displays, sold-out events or non-digital media buzz.

The report found that the most consistent predictor of marketing innovation success was a “strong cultural bias toward innovation,” from the executive level down. To get there, Forrester recommends that Chief Marketing Officers demonstrate the tangible value to the company of marketing innovation investments, such as new brand relationships and new markets.

Executive teams must also be cultivated, with innovation an established part of budgets. The report cited Coca-Cola’s Liquid & Linked marketing budget strategy of 70-20-10, where 70 percent of the budget is on low-risk marketing programs, 20 percent on emerging marketing trends that are just beginning to gain traction, and 10 percent on next generation, completely untested ideas.

Four Innovation Cultures

The report also points to strategic hiring decisions in support of innovation, by focusing on attitudes toward innovation among new hires as well as on technical and other skills.

As context, Forrester noted the four kinds of innovation culture:

  • Risk-averse ones that innovate only when forced, such as those with command-and-control structures in financial services, utilities, government services or healthcare.
  • Pragmatists that innovate on occasion, but the innovation is focused on the product or service and not new ways to market. These companies, typically in such sectors as consumer product goods or durables, will only move forward if ROI is proven before execution and if the program in question has been thoroughly vetted.
  • Experimenters who innovate rapidly but don’t follow up with a long-term strategy. This culture often occurs within large multi-brand organizations, and innovation typically occurs within rogue groups.
  • Customer-oriented cultures that are “post-digital by nature,” accelerating to where customers are going rather than where they are now. These are often organizations that are primarily digital or became digitally-oriented through “exceptional leadership.”

The report recommends companies recognize that innovations bubble up rather than fall downward, that they set “big audacious” goals for the entire organization and that they hire digital practitioners who are also great at communicating.

In this report, Forrester tackles the problem of making innovation part of a company’s DNA. Interestingly, though, the report often points to customer-oriented cultures as being among the most innovative, suggesting that focusing on the customer, rather than quick responses, experimentation or digital techniques, is the long-lasting characteristic of innovation cultures.

~ Curated by TME, World of Marketing, May 21, 2013

Source: http://www.cmswire.com/cms/customer-experience/forrester-want-marketing-innovation-change-your-corporate-culture-020974.php

Who really owns your brand – brand advocates kicking ass in Kentucky!

May 19th, 2013 


Brand owners never really own the brand. Consumers do.

I recently spoke at two events for Destination Marketing Association International. Their members are marketers tasked with driving tourism to their regions. I came across a tourism case study about who really “owns” a brand.

The Kentucky Department of Tourism invested $600,000 to “brand” the state of Kentucky. They came up with the slogan, “Unbridled Spirit”, and drafted the following positioning statement: “Kentucky is a place where spirits are free to soar and big dreams can be fulfilled. We relish competition and cherish our champions for their willingness to push beyond conventional boundaries to reach new heights of success.”

A couple ad guys from Kentucky found the official Kentucky brand lacking, and took it on themselves to rebrand the state. Their slogan: “Kentucky Kicks Ass”. They launched a video of kick-ass Kentuckians and created assets with Kentucky factoids like “In Kentucky, there are more barrels of bourbon than there are people.”

<p><a href=”http://vimeo.com/55873402″>Kentucky Kicks Ass – Rebranding Kentucky</a> from <a href=”http://vimeo.com/user9981347″>Kentucky for Kentucky</a> on <a href=”http://vimeo.com”>Vimeo</a&gt;.</p>

When asked about the “Kentucky Kicks Ass” movement, the Kentucky Department of Tourism was not amused: “We certainly would not sanction or endorse that phraseology. These guys are Kentucky natives and they love the state. But they have a different constituency. Which is no one.”

The Internet loves statements like that. This catapulted the “Kentucky Kicks Ass” movement (and #constituencyofnoone hashtag) to popular imagination everywhere, including Conan O’Brien’s opening monolog. This ironically created great publicity for the state of Kentucky (despite the tourism department’s best efforts). It also encouraged the guys behind Kentucky Kicks Ass to keep going.

“Regardless of what Kentucky’s Tourism Department says, we’re rebranding the state. A grass roots movement is taking place – driven by proud Kentuckians, the Internets and a little social media. Our goals remain the same – increase tourism, foster pride, diminish stereotypes, bring in new business and distinguish Kentucky from any other place on the planet.”

Marketers all want to generate word-of-mouth for our brands. But we sometimes forget that this inherently means giving up control. It requires a fundamentally different mindset. “Sanctioning and condoning” doesn’t work in a social media world. We can’t script the creative force of brand advocacy, but we can channel it.

We need to remember that advocates are every bit a part of the marketing team as the marketers themselves.

~ Curated by TME, World of Marketing, May 20, 2013

Source: http://tomfishburne.com/2013/05/word-of-mouth-marketing.html

Building a Brand Advocate Army: Q&A with Rob Fuggetta from Zuberance

Building a Brand Advocate Army: Q&A with Rob Fuggetta image rfug

EXPERT INTERVIEWS

By , Published May 15, 2013

I recently sat down with Rob Fuggetta, founder and CEO of Zuberance, the leading brand advocacy company, to discuss the importance of brand advocates. Check out my interview with him to learn all the different things advocates can do for your brand and how to engage them.

CH: To start things off, tell us a bit about your company, Zuberance.

Rob: Zuberance manages and powers Brand Advocate programs for some of the best-known consumer and business brands in the world. Our mission is to help companies build what we call “Advocate Armies” – virtual communities of a brand’s most passionate, enthusiastic and loyal customers – and then help companies to leverage these armies to drive more positive word-of-mouth, leads, and sales.

CH: What led you to start the company?

Rob: During most of my 10-year tenure with Regis McKenna, I co-managed the Apple account. I spent a lot of time working on-site at Apple and became very aware of how passionate consumers can become about a brand. Shortly afterward, I saw some Net Promoter research that showed that while Apple may be the poster child for brand advocacy, it is certainly not alone. Nearly every company in the world has highly satisfied customers and other people who recommend that company (or brand or product), and in surprisingly large numbers! That was inspiring for me, and I decided to start a company that would help brands find, engage, and activate these Brand Advocates.

CH: And why is now the right time for a company dedicated to Brand Advocacy?

Rob: Well, brand advocacy is hot! IBM did some research a while back where they surveyed over 1,700 CMOs globally. IBM asked these CMOs “What is your number one digital priority?” 67% of the CMOs said driving advocacy and loyalty is their number one priority.

CH: Wow!

Rob: Yeah… Advocacy has moved to the front burner of the CMO’s agenda. I think that reflects a growing belief that the fastest way to grow (when growing is tough) is to turn the funnel upside down. Instead of focusing on Advocates at the bottom of the funnel, make your Advocates into your marketing department. Let your enthusiastic customers tell your story and help you sell your products! More companies are aware that they have Advocates and those Advocates are amplified by social media. They’re very interested in learning how they can reach, engage, and activate those Advocates.

CH: Are Brand Advocacy and Customer Loyalty related?

Rob: Absolutely! For example, we have several customers in the fitness industry – an industry that has a 30% industry-wide attrition rate. But we’re seeing examples where Advocates are reminding people why they joined in the first place, and raising awareness of all the different services that these clubs offer, like spa services, swimming lesson, and personal training. Advocates are encouraging their friends to go to Zumba classes and group exercise classes. The more people engaged with your product or service the less likely they are to churn out. Advocates for the brands that we work with in the fitness industry are not only becoming more loyal themselves, they’re also helping those companies reduce their attrition rates. Now, if you’re a big fitness company like 24 Hour Fitness or Anytime Fitness (both Zuberance customers) and you can reduce your attrition rate by 1-2% – that can have a significant business benefit…in the millions of dollars.

CH: How do you get Advocates to engage and take action? What truly gets Advocates mobilized?

Rob: The key thing is to make it easy for Advocates. Give them online applications and tools that make it convenient for them to recommend your brand or product. And by the way, it’s not just reviews. There about 10 different things that Advocates can do on behalf of the brand – like writing testimonials, answering prospects’ questions, and sharing offers with their social network.

CH: How would you characterize the results Zuberance customers have seen with Brand Advocacy programs?

Rob: We see that about 70% of people in an Advocate’s social networks respond to an outbound communication from an Advocate – that is, they interact with that content, download it or they go to a website or a landing page to learn more.

What’s equally stunning is that we’ve found that, on average, among those people who download or interact with that content or recommendation provided to them by an Advocate, 30% of them then take that final step that the marketer would like them to do whether that is to sign up for a webinar, buy a product, or redeem a free trial offer… That’s 50 to 60 times higher than the online conversion rates for traditional marketing and paid media!

I look at the data a lot, and in some cases we’ve seen conversion rates even higher than that. One Black Friday campaign for one of our customers got a 56% conversion rate for an offer that Advocates shared with their social networks – 56%! I’ve been in marketing for 25 years and, you know, I’ve never seen conversion rates like this! They’re truly extraordinary.

What we’re talking here about is the power of a trusted recommendation, peer-to-peer recommendations, versus paid media, which research shows most people don’t trust, and in fact many people just flatly ignore.

CH: By the way, congratulations on your book, Brand Advocates: Turning Enthusiastic Customers into a Powerful Marketing Force.

Rob: I’m really excited about that… in fact I recently got my first royalty check from my publisher the other day! I opened up the envelope with lots of excitement. Then I found the check was for $10.00. So, I bought two lattes and called it a day.

(But seriously…)

CH: As an authority on brand advocacy, how do you feel about putting all your secrets in the book?

Rob: It actually is doing quite well and the response has been really fun and gratifying. The book is almost like a cookbook – what ingredients you need and in what order you need to assemble those ingredients in order to do advocate marketing.

Now, if you’re a big company, you probably should have some sort of technology platform (hint hint!) that can help you do this at scale… but I really believe if you read the book tonight, you can go into the office tomorrow and put together a game plan for how you’re going to create and mobilize your own Advocate Army.

Like a lot of consumers, I’m tired of being targeted and treated poorly by marketers who seem to have no lack of ways to insult people’s intelligence. Word of mouth marketing has always been the most powerful and effective form of marketing, but until now there really hasn’t been a way to scale word of mouth marketing, or track it… so to the extent that the book inspires more marketers to do word of mouth marketing, and make the art and science of marketing better, I think that’s a great thing!

CH: Rob, thanks so much for your perspective on using brand advocacy to power digital customer loyalty and engagement.

Rob: It’s been a pleasure. Thanks!

For more insights from Rob, follow him on Twitter at @robfuggetta

[Note: this post first appeared on Get More Engagement which covers engagement marketing trends, tips, and advice.]

(Photo Credit: Sean Driscoll)

 ~ Curated by TME, World of Marketing, May 17, 2013.
Source: http://www.business2community.com/expert-interviews/building-a-brand-advocate-army-qa-with-rob-fuggetta-0495315

 

Four Disruption Themes for Business

APRIL 18, 2013 BY 

By Altimeter’s Research Team

Analysts: Susan Etlinger, Charlene Li, Rebecca Lieb, Jeremiah Owyang, Chris Silva, Brian Solis; Consulting: Ed Terpening, Alan Webber: Researchers: Jon Cifuentes, Jessica Groopman, Andrew Jones, Jaimy Szymanski, Christine Tran

Over 30 Technologies Have Emerged, at a Faster Pace than Companies Can Digest.

If you think social was disruptive, it was really just the beginning. Altimeter’s research team recently convened for our annual research offsite and found over 30 disruptions and 15 trends that have emerged (see below for the full list in our Disruption Database). These disruptions and trends will affect consumers, business, government, the global economy; with accelerating speed, frequency and impact.

Altimeter 2013 Disruption Themes

Four Major Business Disruptions Emerge – Business Leaders Must Prepare.

Out of these disruptions and trends, Altimeter identified four major themes that will be disruptive to business. Below is a preview of Altimeter’s four business disruption themes, with a definition and short description of each. In the coming weeks, we’ll publish a short report explaining these themes in more detail.

Everything Digital: An increasingly digital landscape – including data, devices, platforms and experiences – that will envelop consumers and businesses.

Everything Digital is the increasingly digital environment that depends on an evolving ecosystem of interoperable data, devices, platforms – experienced by people and business. It’s larger than the scope of Internet of Things, as it’s pervasive or ambient – not defined only by networked sensors and objects, but including capabilities such as airborne power grids or wireless power everywhere. Everything Digital serves as the backdrop for our next three themes.

Me-cosystem: The ecosystem that revolves around “me,” our data, and technologies that will deliver more relevant, useful, and engaging experiences using our data.

Wearable devices, near-field communications, or gesture-based recognition are just a few of the technologies that will make up an organic user interface for our lives, not just a single digital touchpoint. Digital experiences will be multiplied by new screen types, and virtual or augmented reality. Individuals who participate will benefit from contextualized digital experiences, in exchange for giving up personal data.

Digital Economies: New economic models caused by the digital democratization of production, distribution, and consumption.

Supply chains become consumption chains in this new economy as consumers become direct participants in production and distribution. Open source, social, and mobile platforms allow consumers to connect with each other, usurping traditional roles and relationships between buyers, sellers, and marketplaces. Do-it-yourself technologies such as 3D printing and replicators will accelerate this shift, while even currency becomes distributed and peer-to-peer-based. In this new economy, value shifts towards digital reputation and influence, digital goods and services; even data itself. The downside? An increasing divide between digital “haves” and the digital “have-nots.”

Dynamic Organization: In today’s digital landscape, dynamic organizations must develop new business models and ways of working to remain relevant, and viable.

Business leaders grapple with an onslaught of new technologies that result in shifting customer and employee expectations. It’s not enough to keep pace with change. To succeed, dynamic organizations must cultivate a culture, mindset, and infrastructure that enables flexibility and adaptability; the most pioneering will act as adaptive, mutable “ad-hocracies.”

Altimeter’s Disruption Database

Below are the 30 digital disruptions and 15 digital trends, which were used as the starting ground of our analysis.

Disruptions Trends
3-D Printing and Replicators
App Economy
Artificial Intelligence (AI)
Augmented Reality (Google Glass)
Automated Life (Cars, Homes, Driving, etc.)
Automated Robots
Bio-Engineering
Biometric Authentication (Voice/audio, fingerprint, body/eyescan, gesture, olfactory user interface Content Marketing
Digital/Social TV vs. “Second Screen”
Emerging Hand Held Devices / Platforms (Android, Tablet, Phablet)
Gamification
Gesture/Voice-Based Interface/Navigation / “Human as Interface”
Hacking/Social Engineering and Information Security
Haptic Surfaces (Slippery, wet, textured through electrical currents)
Healthcare – Data and Predictive Analytics
Human-Piloted Drones
Hyper-Local Technology / Mobile Location / Indoor Mapping
Internet of Nanoparticles (Embedded in bloodstream)
MicroMedia Video
Mobile Advertising
Mobile Payments
Native Advertising
Natural Language Processing
Near Field Communications
Open Source / Open Data / Open Innovation
Peer-Based Currency / Soical Currency (BitCoin)
Proximity Based Communications
Social Engagement Automation (Robots Respond on Twitter)
Social Network Analysis, Graphing, and Data Science
Social Technologies
Touch Permeates Digital/Surfaces: TVs, Touch Advertising
Virtual Reality / Immersive 3D Experiences
Wearable / Embedded Technology
Wireless Power / Electricity
Big Data
Collaborative Economy
Connected Workplace
Customer Experience Design/Architecture and Integration
Data Convergence/Customer Intelligence
Data vs Creative in the Org: New Decision Process
Digital Ethnography or Customer Journey Mapping
Digital Influence and Advocacy
Evolution of the Center of Excellence
Generation C
Hypertargeting
Internet of Things or Internet of Everything
Intrapreneurship, Innovation Culture, and Innovation Hubs
Pervasive Computing
Porous Workplace
Privacy: Standardization and Regulation (“Beware of Little Brother”)
Quantified Self or Human API
The Digital Journey and Understanding Digital Signals
The Maker Movement
The Neuroscience of Digital Interactions


Open Research: Please Share Your Comments and Insights with Us.

There’s more to come – we’ll be sharing additional insights such as 1) top questions for businesses to ask, 2) who’s disrupted and who benefits, and 3) enabling technologies.

In the meantime, we’re soliciting your comments as part of our Open Research model. Please share our themes with others, and help us answer these questions:

  • What other business disruptions or trends are you seeing? Please add to this Google form and we’ll provide proper attribution.
  • Which of these four business disruption themes impact your business now?
  • How is your business responding to these themes, or the related disruptions and trends?

Photos from Altimeter’s Research Offsite

Below are a couple illustrations that resulted from the discussions that took place at our research offsite:

Mock Up of Disruption Marketecture

Above Image:  Altimeter synthesized these disruptions and trends, which become broader themes. 

2013 Research Themes Brainstorm

Above Image: A graphic illustration of our synthesis. Thank you to Paula Hansen who was instrumental in visually capturing our discussions in real-time.

~ curated by TME, World of Marketing, May 16, 2013

Source: Altimeter Group: http://www.altimetergroup.com/2013/04/four-disruption-themes-for-business.html