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ARTICLE BY DR. KOEN POWELS
Marketing measurement, accountability, analytics and dashboards are priorities in the toolkit of the successful Chief Marketing Officer. The pressure from the top is strong: prove your marketing is working, give us higher profits with lower budgets, show us the opportunities for profitable growth. Many companies have developed marketing analytic dashboards to help attain these goals, and are getting on average 8% more Return on Assets as a result (21% in highly competitive industries). A marketing analytic dashboard is a concise set of interconnected performance drivers to be viewed in common throughout the organization; for examples and case studies please see www.notsizedata.com.
A key challenge is how to motivate employees to actually use these analytic insights to improve decision making. Resistance to measurement and data-driven insights is widespread – not just among creative content generators who fear it will hamper their freedom (see http://analyticdashboards.wordpress.com/2014/03/13/help-your-creative-cats-bring-home-the-bacon-whos-afraid-of-accountability/’). Having lived through analytics & dashboards projects across 3 continents, I’d like to share tips on how to get employees on board.
My top ten list:
- Communicate the purpose and usefulness of a dashboard for the organization;
- Explain the role of an employee in the project and his/her impact on overall performance;
- Emphasize benefits of the dashboard application for an employee, e.g. ability to track, adjust, manage and consequently improve personal performance;
- Encourage a dashboard trial;
- Invite employee feedback and demonstrate that it is valued by adjusting the dashboard if possible;
- Inject a culture of accountability and facilitate a conscious choice of an employee to use a dashboard and other performance measurement tools, e.g. develop performance related incentive scheme that will motivate an employee to keep track of his/her individual progress;
- Incorporate a dashboard into day-to-day operations, e.g. use it in employee meetings;
- Garnering management support and guidance: Communicate the benefits of accountability culture for a company, e.g. give specific examples (supported with numbers) on how the company can optimize its expenditures and escalate its profits;
- Demonstrate functionality and usefulness of a dashboard application (for this purpose you may need to build a simple dashboard or select a dashboard example available online : see e.g. www.dashboardinaction.com;
- Indicate industry/market trends towards the use of a dashboard (show the statistics on dashboard adoption rate in the market, use industry or cross-industry benchmarks).
As detailed step for step in www.notsizedata.com, building a marketing analytic dashboard requires vision, courage, transparency and effective internal communication – which are much more important than the specific software or ‘big data’ used. Just like any other innovation, a marketing analytic dashboard cannot be effective unless its users understand its functions, are convinced about its benefits, and want to use it. In sum, a marketing analytic dashboard should not be something imposed on a company; it should be ‘sold’ in the best tradition of marketing art.
How about you? Can you share tips on how to motivate employees and increase marketing accountability? Looking forward to hearing from you,
Prof Koen Pauwels
“It’s not the Size of the Data – It’s how You Use It: Smarker Marketing with Dashboards and Analytics”
The goal for Future CMO Commercial Community is to create a network of highly capable individuals who can act as supertemps or highly advanced specialists who can act as catalysts for customer centric, marketing and organic growth driven strategic and operational transformation for their clients. Below, there are directions and requirements for those who would like to join this community and offer their services in Futurecmo.org. Future CMO is a platform for Symbiosis Strategy and I welcome you to join. Futurecmo.com will also be published later in 2014. Join now and we’ll get better service up and running soon. There will also be new and improved FutureCMO.org.
Here’s initial offering description:
Toni Keskinen, Founder and Cheaf Editor of Future CMO
+358 50 5522276
Located in Helsinki, Finland
Available for speaking engagements and consulting globally
Jarmo Lipiäinen, Co-Founder, Business Director and Consultant
+358 40 525 7289
Located in Helsinki, Finland
Available for speaking engagements and consulting engagements
About Future CMO Commercial Community: Anyone can contact Toni Keskinen and request membership in the Future CMO Commercial Community. The only requirement for enlisting is that you have original, fresh, insightful and important insights to share with the members. The best source for such insights and content is your daily client work which is why the most ideal members are people who actually get their hands dirty and do what is required to be done. Experiments and practical work generate the most interesting content. I don’t really think that this community is suitable for academics. The minimum requirement for membership is that you write at least one article in a month. The goal is that Futurecmo.org becomes a service with very high quality content and subsequently serves all members as a marketing & learning platform. Joint effort will increase reach and impact more than anything a single person could do. In case you are accepted as a Commercial Community member, you will get publishing rights to this service. There will be two types of FCMO Commercial Community members a) Supertemps b) Specialists.
Specialists:You should have practical, unique and original thoughts, ideas, insights or cases to share. Specialists should also be capable of connecting their specialist area in to general marketing and management realities.
Some questions that might help you recognize the supertemp inside yourself:
- Do you have both breadth and depth in your skillset at practical and strategic levels? Are you the one who recognize what, why and how should be done in order to drive much stronger performance, growth and profits?
- Do you have experience from multiple business areas with different business logics and aplications to value creation and competitive advantage?
- Do you have difficulties leveraging your full capacity in you current work?
- Do you want to practice your skills and learn much faster and more holistically and pragmatically than is possible in a regular specialist role?
- Are you happy moving from one company to next without a fixed team and do you feel comfortable facing challenges by your self together with a client’s own internal team changing in each engagement?
- Do you have a network of specialists around you, who can fulfill your shortcomings reliably and rapidly so that you can solve any given challenge you come across?
- Are you capable of driving co-creation development, designing customer centric operational change, business modeling and -cases and managing projects across corporate silos, levels and specialist ownerships like sales, CRM, online, analytics, BI, customer service, marketing, research or ICT?
- Do you impress clients with you skills, accelerate development, drive results and generate strong recommendations for your work?
Typical Must Win Battles that give us direction for relevant content creation:
- Best customer experience (Goals: loyalty, LTV, cross & upsell, high NPS)
- Innovative solutions: Creation of competitive advantage, distinctive and special offering capable of delivering substantial value, high quality at highly competitive price
- Continuous and cost-efficient new business (Goals: new customers, demand generation and stronger conversion)
- Lean and effective operations and processes – strong bottomline (Goals: highly productive organisation capable of delivering superb customer experience at comparatively low expences by using new technologies, online environments and automation
- Creation of inspired and winning corporate culture: Inspirational and very satisfying workplace capable of understanding and driving development and change. Corporate recognition as very prominent employer for hungry and innovative new talent, Topline growth energize the company’s employees and focus their minds on opportunities, innovation and growth. Growth is a lot more inspiring tool for profitability than trying to save the company to mental death
Forrester Research and Forbes made a study and article about CIO-CMO collaboration: “Why The Most Important C-Suite Relationship For Marketers Is Still The Trickiest” The article concentrate on the challenges and approaches to enable and enhance collaboration and how to create common ground and language between the two very different specialist areas. I did agree with everything that was said in the article, but I couldn’t help thinking whether CMO-CIO collaboration is actually enough. Customers today engage with companies in multiple touchpoints and environments, their expectations change along their customer relationship and -journey (check out article: definition for Customer Experience) and their motives and needs have great variation. In my opinion CMO should be in charge of customer experience, promises, concepts and methods that drive great brand experiences, brand loyalty and engagement. However, the reality is that currently many of those channels and touchpoints are managed by customer service and business units or online service development unit. Often the research and analytics are also outsourced or in a separate silo. In case the CMO really has the wide customer experience management role, I agree that CMO-CIO relationship can drive phenomenal success, in case that is not the case, there must be even wider collaboration across business units. Here’s Accenture Interactives documentation about the subject: “The CMO-CIO disconnect – Bridging the gap to seize the digital opportunity”
Tom Asacker captures why customers think of corporate experience holistically. A brand, he says, is “one, interdependent system of behavior”. The problem is that in too many organizations the “system” has many masters and each wants independent control of their domain. CMOs, who might be expected to have responsibility for the overall experience as of right, do not. That’s because large chunks of the interface with customers, and the factors that influence that interface, remain for the most part outside of their control. They do not fit neatly into the “normal” org chart definition of what constitutes marketing. (Full article: Brands: One System Of Touch)
Some time ago I wrote an article in which I claimed, that the marketing organisation is like an engine from 60’s. “The Duke University’s CMO Survey 2013 results highlighted again the need for marketing and CMO’s to carry more responsibility and integrate better with the corporate management and operations. It seems to me that marketing is facing the same evolution that car engines have gone thru since 1960′s. In the 60′s car engines were large, heavy, powerful and impressive but their gas consumption was just terrible and their efficiency unacceptable in current evaluation. Currently engines are much smaller but deliver a lot of power with very low gas consumption. The big and impressive modern engines have amazing power with acceptable gas consumption. The engine game is all about efficiency, as it should be – and the same rule apply to marketing management”.
Inbound marketing technology provider Hubspot has created their view of agile, rapid, realtime, evidence based marketing function and organisation. They don’t actually define the business units that should be involved, that must be considered case by case. Hubspot’s process is based on SCRUM-software development process and methodology. I find this approach to marketing quite appealing and interesting. Inbound marketing is about creating content and turning that content and stronger online traffic in to demand and leads. The approach is all about relationship marketing in the digital era and omnichannel environment. Please comment if you have any experiences about implementing such process to your organisation? Check out the presentation:
I’m working with company’s customer interface development and customer experience design. What I see in my everyday business, is clear need to break thru silos and increase collaboration. The SCRUM-process and organisation outline in the presentation must be considered separately for each organisation. The SCRUM-team should be a group of people influencing customer experiences across the Funnel and customer relationship in order to really make most of the approach. Short term analytics and A/B-testing are naturally important tools in such approach to marketing, but also the long-term development must be carefully considered. The brand image changes rather slowly and is an outcome of everything the company does. The SCRUM process easily change perception to short-term development and generate blind spots in larger scale opportunities. Team like this must make sure that they have both insight and topsight views to what they are doing and developing.
Service Design is a ground breaking methodological shift towards customer centered business development. I can’t underline enough how important this new dicipline is in creating completely new and very influential business models. Service Design should also be used in marketing just as effectively.
In my opinion, marketing should evolve in to such direction where we are designing the entire customer relationship from consideration to purhcase and continuously improving relationship with earned trust. Custom communications according to customer behavior is one key issue, because the company should be capable of adapting to customer’s needs and motives, not the other way round. Customer centricity and customer centric innovation accross all touchpoints is the very core of the game.
This presentation is very thorough and insightful approach to Service Design. Check it out and think how you could use these ideas and methodologies in your approach to service designing marketing
Harward Business Review just published a great article about Customer Experience and Journey. See here. The main point of the article is, that managing single touchpoint engagements doesn’t provide sufficient customer experience.
My advice is: Don’t design just touchpoints – Design chain of events, proactive and reactive. Development and measurement is often done engagement by engagement. The service design approach also highlight such emphasis. I’ve done Customer Journey mapping and methodology development since 2004 and agree with the article, only it’s lacking tools and methods how you should approach the challenge. I can help with that.
I’ve written an article series about customer journey management and you can choose and pick, which areas you are interested in or read them as a series of articles:
- Customer Journey FLOW
- How to map and study Customer Journey
- Customer Journey stage 1: Brand as a platform
- Customer Journey stage 2: Initiation
- Customer Journey stag 3: Choosing and buying – cross-channel influence
In order to really do Service and CX design for the entire customer relationship, you need to understand that there are very different journeys to begin with.
- Purchase journey (From awareness to consideration and transaction, Acquisition)
- Service journeys post purchasing (Using the product or service, value-in-use)
- Planned (e.g. Address change, regular maintenance etc.)
- Unpredictable (e.g. Product failure, reclamation, insurance coverage, etc.)
- Delivering a service as a customer journey (taking a cruise or flight, restaurant, using media, etc.)
- Retail customer journeys (e.g. IKEA store experience)
Once you have both Insight and Topsight level understanding about customer journey in full, you need to take a look inside the company. What organisation bodies are involved with customers, what kind of technical environment direct their operation and what kind of data steers their actions. The reality is, that management reporting practices represent management understanding and decisions. The systems and technical infra on the other hand define how the corporate body acts. In case you need to change the way how the corporate body in total behave, you need to define required technical changes, change management and manage change. In my experience, creating Service Blueprints has been quite effective tool for both challenge recognition at current status mapping and Customer Experience planning.
The potential is absolutely amazing. The customer’s expectations are constantly growing harder to fulfill and companies that are agile enough to cure “Corporate Autism” and take the steps required to move from “inconsideration marketing” and mass mailings to service automation, Customer Experience and Journey design at total relationship level, can win marketshare and increase profits considerably. The business-as-usual approach is no longer sufficient, you need to free the full potential an organisation can offer and tear down silos in order to take advantage of synergies available.
In the big picture, your company must act professionally and fulfill minimum requirement perfectly. Failing these requirements cause criticism and decrease your NPS results. Acting human, being considerate, thoughtful and proactive on the other hand increase the number of people willing to recommend you and increase you NPS score. Succeeding in both cumulate earned trust, which is the foundation for long-lasting and profitable customer relationships and strong brand.
In case you do well, the process will enable you to design lean processes and define the best possible value your business processes can possibly deliver. In my opinion this is the Future for CMO’s position inside the company. It’s not the job for CMO’s to define business process management, but it’s the CMO’s responsibility to make certain that everything the company does, delivers maximum customer value and experience across all customer interfaces
In case you can capture customer contacts, you can start servicing and inspiring customers individually and simultaneously your capacity to influence increases. The bigger share of the customers buying in a certain category you have in your database, the more effective means you have to influence their behavior and market dynamics. The ultimate goal is to synchronize customer portfolio with product and service portfolio across all touchpoints and marketing interfaces.
In my experience the only way to do successful customer journey and experience design and create sustainable management model for it is to do the work upside-down. You start from the actual interfaces, motives, contexts and people. From there you continue inside the company culture, practices and technology and design the strategy level after you understand everything else. Like this:
The Holy Grail of customer value is Symbiosis. Check Symbiosis Strategy – creating the ultimate value -article here.
This is a video by McKinsey Chief Marketing & Sales Officer Forum on Sep 12, 2013, It’s All About the Customer Journey
Author: Toni Keskinen, Marketing Architect & Customer Journey Designer, Toinen PHD
Join The Future CMO Movement LinkedIn Group here
I just found Dr. Rod King’s Blue Ocean dashboard and process tools from SlideShare today and thought about how necessary it is to understand the whole value creation process in order to manage brand effectively. The number one branding responsible inside the company is actually the CEO, as he is often the only person in a company responsible for the total experience.
Brand identity is a reflection of the company, it has to be real and true. False promises and wrong kind of identity only generate dissatisfaction and distrust. You are what you are and you can improve, but you can’t stretch too far. Marketing is often responsible for the identity design, business managers are responsible for the experience. This approach doesn’t work anymore – The brand from the customer’s perspective is one single entity and the experience and perception must be a solid combination.
Mr. Graham Hill, well-known and great CRM and customer experience expert whom I respect very much just published an article: How Stupidity, Short-termism and Immorality Ruined Marketing in Customer Think -blog. Here’s a quote:
“If you take a step back you will see that the ethos of marketing has changed over the past 50 or so years. It used to be the driver of a three-step process of 1. understanding what customers want, 2. organising to give it to them profitably and 3. telling them all about it.
Today, this has been changed so that marketing is now the driver of a much more intrumental three-step process of 1. create more stuff that we already make or that competitors make, 2. tell customers about it over and over again, and 3. manage away the customer queries, complaints and returns as cheaply as possible.”
In my opinion the article just emphasized how important it is to act now and change the way how companies organize for marketing and define the role marketing has within the organization. (Below the article there is also great dialogue about the matter.) Read here
The CMO’s should have the best view on how the customers both perceive and experience the company and translate that reality for business owners and the CEO. Mandate for this position comes from the customers. The CMO’s role is to understand how the product/service range and customer experience influence the overall value experience, brand perception and preference, demand and capacity to generate premium pricing. CMO should define how the company should position different products and services in order to optimize the overall growth, sales and profit margin.
Dr. Rod King’s tools for Blue Ocean dashboard tool felt like rather easy and rapid tool for over all view creation, opening eyes for the whole. Here it is: