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Skill Level Intermediate
(gentle music) - As companies start going through the journey of adopting, a journey-based perspective of their customer. There's a number of very deep organization changes that they start to go through. First off is actually changing the way they set targets. So most companies have very distinct targets for marketing, for sales, for service. What a journey-based company is doing is looking overall at the lifetime value of customers. They're also looking at customers from the perspective of can they influence other customers? And are we increasingly, are we bringing in customers who are not only going to provide us with direct value, but actually have advocacy value as well because they're well connected and they talk about us to others, which increasingly you can now track. They're also thinking about customers in terms of do they engage with the brand on an ongoing basis? Whether it's by responding to emails, whether it's joining up on social media and actually posting content, and they can actually see different segments of customers who are engaged at different levels with the brand. I just buy it or not only do I buy it, I respond to messages they send me. Not only do I do that, I share it with other people. And so they're starting to set targets for bringing in customers and moving them up that engagement ladder. That holistic perspective and saying, how do we get people more engaged, not only to buy our products, but more engaged with the brand and essentially then to become marketing advocates for ourselves? That becomes one of the most important things that they start to set up in terms of overall targets and objectives for what they're trying to do. They're thinking about that customer and that journey. And they're using it to set the measures. (gentle music) Second thing that they're doing is thinking very explicitly about data and how they're going to gather, analyze, and use data throughout that journey and do it explicitly. There've been a number of studies out recently from different kinds of analysts and various research houses, essentially all coming to the conclusion that over the next five years, the chief marketing officer will spend more on technology than the chief information officer. Well, the size just simply spending on technology, it'll be much more effective if you've got very specific requirements for what you're going to use that technology to do. What they're realizing is that they need to start having a better understanding of what are the kinds of interactions that can collect data. And so many companies now are creating more use case models where they're looking at the different kinds of flows of journeys that customers have through the marketing, through selling through product use. And they're looking at these different use cases of how somebody might flow through their journey. What's the information exchange that's going to happen at each touch point if I'm going to make each of those interactions targeted to the right customer and personalized to take advantage of the best information I have about that customer. And so they're thinking very explicitly about requirements for their systems that are based on a sense of how that journey's going to flow. Now, right now, one of the biggest, most important things is mobile. Mobile is becoming more important in more and more journeys. People are using mobile devices at home. They're using it in stores. One of the important pieces of data with mobile is location. So, okay, location is important, but how are we going to use location data? Why would it matter to us? Are we going to start thinking about different kinds of promotions at this exact store versus that exact store in those stores? Or are we going to think about different promotions tied to this geography, this city versus that city? Are you really going to take it that far? And what are you going to be doing with that data? Sometimes, you can collect all of this data, but if you're not starting to think about how you're going to use it, you can be chasing all kinds of things and spending a lot of money very quickly on technology that you're not going to be taking advantage of. So it's important in a data strategy to look at the journey and start challenging yourself, what really is the data that not only can I collect, but how might I use it and what would that lead to? And that can start helping you set better priorities for the kinds of technology you're going to need, the analytics you're going to need. And how are you going to start changing that journey over time, using better information capabilities. (gentle music) The third thing that companies are thinking about more and more is speed. It's about being fast. You've got to be able to react quickly. A customer sends you a signal says, ask the question in social media about a product that they might be able to buy from you. And you've got to respond to that quickly. You find out all of a sudden that something has happened in the marketplace that's leading customers to suddenly come onto your site. You need to be able to expand capability or you want to move a hot product up to the homepage where it might've been buried. There's a lot more dynamic optimization, agility that companies need than they ever had before. Consumers are expecting things to happen on demand. It's about fast response. If they've got a mobile device in their hand, it's especially about fast response. And so companies are trying to figure out how they can make themselves much more agile. And that leads to some very specific things down in the details of how things operate. So, for example, one thing is not allocating all of your marketing budget and locking it in to upfront buys and into specific programs at the start of the year, but actually having some amount because sometimes it's important to buy upfront, set up early, but giving yourself more opportunity for a lot more agility, to be able to reallocate things as you learn more and as you see how the market goes. And so you're changing your whole budget allocation process to give you more flexibility so you can move faster. You might also be thinking about algorithms that can spot certain kinds of patterns that would cause you to move very quickly. So, for example, you might be, if you're a retailer, you might set certain parameters around different products where if sales are going up by a certain speed or going down by a certain speed, that's going to lead you to dynamically reallocate where those products are. Some may move up, some may move down, and you're managing by exception. And you're looking at the things that are moving and using that to dynamically change things. The other way might be from a social media perspective, having ears out there, social media tools that are analyzing all the different conversations that are going on. Having filters that are looking for certain kinds of keywords and having people who are trained with certain clear protocols, and how to quickly engage the conversations that are happening and take action on them, whether it's a customer service action, whether it's helping somebody from a marketing standpoint, in terms of understanding more about a product, but having people who are out there listening to what's happening in social media, armed with the capability and content to be able to respond to what's going on. And there are other things like that, as well as you start going through all the different things that happen across the customer journey. There's a need for speed. (gentle music) And then the last thing is in order to do all of these things, you've got to get more cross functional coordination. Because it is about the journey, and it's going to link marketing to sales and service. One of the things I mentioned earlier was marketing with technology that the chief marketing officer is going to be spending more on technology than the chief information officer. Well, that means that marketing and technology need to get much closer together. It probably also means organizationally that there should be somebody in the marketing organization who from the marketing organization side as a client for the technology organization is looking at an owning the technology strategy of marketing. It might also mean new kinds of mechanisms by which marketing and sales may be working together under shared budgets and shared targets. Maybe also co-locating them in order to be able to be more facile and be able to understand the handoffs more between marketing and sales and be able to work that dynamic better. We also see sometimes creating integrated analytics groups that can look at the customer all the way through the journey. So instead of just looking at marketing effectiveness, for example, from a digital standpoint, they'll look at which search terms are driving people onto the site who actually buys, who actually stays and tracking that all the way through so that they see it from marketing to sales all the way down through ongoing loyalty. And they have an analytics group that can pull together that entire view. Whereas beforehand, those analytics people may have been separate in different organizations. So now you're taking a much more integrated view of the customer and building that into the structure. So these companies are asking themselves where do the functional boundaries breakdown and where do I need to create new mechanisms? Whether it's a shared service group, like analytics, whether it's new roles, such as a marketing technologist, whether it's new forums, such as marketing sales, joint calls every week where they are going to be on the phone for two hours every week, going through numbers and realigning their plans on a dynamic basis, or maybe even co locating them. They're looking for where do those functions break down and they're trying to stitch them back together. To act in a more integrated way than they have before. (gentle music)