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Salesman didn’t die.. but got help

Every time something new comes up and people jump on it, they learn something new but it seems that they often start forgetting the best features of the previous while learning. Then came the content marketing era and inbound marketing surge. Now there is a swing back to ABM (Account based marketing and proactive sales). Danny Wong from Blank label just published an article about this with 9 B2B sales predictions for 2016 in Huffington Post (source: http://www.huffingtonpost.com/entry/the-future-of-sales-9-b2b-sales-predictions-for-2016_us_56beb9b0e4b06fb6526b67c9)

It was great article and I totally agree with Mr. Wong.: Outbound and account management are musts, buyer journey and customer centricity are imperative. Marketing automation is fantastic in existing customer management and content marketing. Still, in case of new prospect recognition most visitors don’t leave their contacts or signs of interest which leaves most potential customers unrecognised. This is something that has bothered me.

Then I learned about Leadforensics… (because they reached out to me and outbound works 🙂 ) They gave me a short introduction to their software (phone+video), we did a pilot with two weeks of data capturing after which they presented me the results and pitched me an offer. I got hooked and bought the license.. and I am even more hooked now. (By the way, their process is very much worth experiencing too, its brilliant. You can book your trial contact here)

This is something I just have to share, because I find Leadforensics to be so elegant, easy and effective. The foundation of the service is IP address recognition. The service lets you know from which companies people are visiting your website, how many of them, which content, time spent and so on. In B2B this intelligence is often enough. You know which companies are looking right now in your sector and they are already considering your company. In case you are considering marketing automation or need leads for sales to follow, Leadforensics is a great tool to take as a first step in operational and cultural change or as part of the lead generation development in marketing automation project. This is what you get (this data is from this site):

#1 Visiting organisations

1 visitor list

#2 Sorting visitors

2 Sorting visitors

Example of multivisitors

3 multivisitor

#3 Company details and visitors

4 company details

In this case 3 visits by one person

5 visitor number

#4 Potential people to contact

6 contacts

#5 Dashboard

7 dashboard

#6 Sorting and actions

Now that I have the tool in use, I can upload my customer register and create a current customer group with assigned contacts. I can also create prospect list with assigned persons who will be notified about new visits. You can also define goals, not every content is a sign of buying intent, but some are exactly that. Assigning goals and actions for them is quite easy and effective.

My company FutureCMO – Catalyst for Growth is a super temp one man show with a network of other entrepreneurs and I am mostly helping large companies with their digital and customer experience transformation. My challenge is, that projects are large and take my time while running them leaving me little time for selling next cases. When they end I can easily drop between projects. This kind of transformation work is quite time sensitive and frequency of doing it is rare. Also, The lead-time from interest to project could take a lot of time too. Another challenge has been, that I have a globally competitive knowledge, methods and approach, but my work has been local sofar. Now I am going to make my first attempt to get my first very own international clients onboard. While working for WPP and Omnicom this was natural, but as an entrepreneur now it would be a big leap. This is why I think Leadforensics will help me target right companies at the right time and make certain that I can get my projects in without long stand-by periods. I am also working on a start-up for which we are raising money to get started and knowing which companies are interested in our pitch is very important. I am only in the beginning of using Leadforensics, but I am quite impressed with it.

In case you find Leadforensics interesting, you can book your own demo and trial period here (Link URL )

In case you are using some other tools for lead recognition, I’d be very happy to hear about your experiences!

WARC Webinar Path to purchase Insight Keynote presentation

Here’s my WARC webinar presentation from 30th July 2014. Enjoy 🙂

Also check out:

  1. Managing brand – the most profound KPI’s and measures
  2. Customer Journey FLOW
  3. How to map and study Customer Journey
  4. Customer Journey stage 1: Brand as a platform
  5. Customer Journey stage 2: Initiation
  6. Customer Journey stag 3: Choosing and buying – cross-channel influence
  7. Marketing’s new and re-designed 7P’s

Marketing’s new and re-designed 7P’s

Marketing Mix 4PMarketing used to be about making companies APPEAR to be better, increasing brand appeal etc. Today marketing is about MAKING BETTER COMPANIES

The omni-channel, real-time, everything’s available and traceable environment we are currently living in has changed the marketing fundamentals quite radically. The world is no longer the same place for which The marketer E. Jerome McCarthy proposed the four Ps classification in 1960. This age requires us to re-design them. Actually, in my opinion we should question the old truths and re-define the entire concept, role and meaning of marketing.. go back to the fundamentals and adjust them to this time and age. I hope this article sparks interest and willingness to join in and continue the discussion at Future CMO LinkedIn Group

The new 7P’s

  • Position – in customer’s mind
  • Performance – the user experience, capability to meet expectations
  • Proximity – How close the brand is to it’s customers, Customer intimacy
  • Price  – Price is no longer a fixed figure
  • Presence – instead of Place
  • Perceived product
  • Promotion

POSITION

There is a lot of everything. Customers instinctively make their lives easier by using their mental shortcuts, heuristics, in order to make sense of the surrounding wealth of messages and impulses. The position a brand holds in the customer’s mind connects it to certain attributes, contexts, values, benefits and purposes. Actually, our brain gives an emotional tag to every single piece of information before entering our conscious mind. Branding is about training customers’ brains and winning certain position in their minds. This is why it takes a long time to really gain a meaningful position as a brand. That’s also why brand extensions are not a certain success, as the position the brand has in customer’s mind only consist of certain learned connections.

Because of these reasons I would define Brand as a position in the customers’ minds. During the past decade people have also learned to use brands as their road signs when searching for products, services, solutions, ideas and inspiration. For example in travel and telecommunications markets the number of category searches has dropped, while brand searches have increased. Instead of searching for smartphone or holiday, customers search operators, smartphone manufacturers and travel agencies by brand. To people, brands stand for direct access to information they are looking for. Such behavior makes the top-of-mind position even more important than it has been before. Smartphones or 4G are minimal interests, while Samsung and Apple have strong demand. The data also shows how Android has become a brand on it’s own and has an even stronger demand than Samsung has.

Mobile Google trends

PERFORMANCE

When customers do buy a product or service they have certain expectations for what they bought. Depending on how well the brand meets those expectations, it influences the customer’s personal experience and view on the brand’s performance. Value for money experience is a very important measure for a brand and shared experiences influence the brand’s Net Promoter Score directly. Performance should be measured through the customer’s entire relationship with the brand, across every single experience they share. In my opinion we should include PERSEVERENCE as part of the performance. The customers expect you to stay interested in them and continue to deliver high value. One-shot experience is not enough, no matter how good it is. The real performance must be proved over time also in case of product failure or other unexpected events.

In September 2013 HBR published an article: “The truth about Customer Experience” by Alex Rawson, Ewan Duncan, and Conor Jones. In their experience, most companies measure customer experience by touch points or single engagements. Such an approach will tell you how did that single engagement meet customer’s expectations. It does not say anything about customer’s satisfaction over time. In case this is the only mean to measure performance in a corporate KPIs, it will create an illusion of performing well. In their article, they proved the declining customer satisfaction over the length of customer relationship. When you think in terms of performance, you need to continuously improve your service, in order to keep your customers happy. In my Customer Journey studies I have also learned that, the reasons why customers choose to buy a certain product, or a service, are not necessarily the same ones that will keep the customer happy post purchase on a longer term.

Performance measures are also changing the marketing as a practice, changing management and the ways of managing change. Today, everything can be easily tested in small scale, scaled to global level and measured in real time. The marketing practice has been measured with rather elusive figures like top-of-mind, preference, awareness and attributes until recently. Now marketing has become an actual business unit that should have a business plan, revenue forecasts and profit expectations. This is finally something that other members of the board understand. This is why the marketing as a practice is moving up on the corporate power ladder. Corporate management is already expecting CMO’s to take responsibility for corporate digital transformation. In my opinion the creativity factor associated with marketing function has more potential in this new order than ever before when its performance is measured right. When customer understanding, creativity and performance metrics are connected across corporate strategy and operations, possibilities of developing business, competitive advantage and brand become infinite. We just need to follow the path companies like Tesco, Apple, Google and Amazon have opened for us over the past two decades. In that time the technology and ecosystem developed to its current level of sophistication and accessibility allowing us to join in and follow the paths these giants have already proved effective.

PROXIMITY

Proximity is a synonym for distance. In order to create trust and relationship with customers, brands need to get close and personal with their customers. At best, you can talk about customer intimacy and connecting the brand to people’s self image. We have a chance of having a dialogue and become a part of peoples everyday life via different channels like Facebook, apps, online services, even external bought mediums at personal level. Although the Internet and all it’s applications have a lot to offer, PEOPLE belong in this category too. Person-to-person communications are the primary way of connecting and even getting imprinted to the brand. People and corporate culture represent the brand in human form. The old truth about brand being as good as its salesman is still true. Customers meet people while making their choices, have support needs or they want a reclamation taken care of. People are the very core of trust experience and in many businesses customers imprint on people serving them. In such cases the brand experience and loyalty has it’s foundation on personal relationship: it’s not about B2B or B2C, it’s about Human-to-Human. The current view is, that those companies that best connect their physical experience in an omni-channel world will win the hearts and minds of their customers.

In my opinion the Apple Store concept is one of the best examples of creating a strong human interface and online customer relationship together. The experience at Apple store is that all employees are there for you, concentrating on your concerns and help you with your needs. There are often more employees than there are customers, which just stands for Apple’s priorities. The store is a place for brand experience and it is not measured by sheer efficiency like most other stores are.

Apple store

Picture source: http://zerogeekspeak.net/2014/06/16/av-forward-training-customerprofessional-relationship-dynamics/

PRICE

Price used to be a rather fixed figure. In this age price has become a rather elusive measure. The new approaches to pricing are about yielding models and price variety between customer segments or distribution channels. There is one price for me, and another for you, although the product and the seller are the same. There is a price for me right now and another tomorrow.

Online environment has made it possible to democratize offering and make pricing transparent by using aggregators and comparison services that find prices from different sellers and present them in one single view. This kind of approach has democratized the marketplace, because the aggregators only show certain comparable basic functionalities and push the brand further away from the customer. This approach has increased the meaning of pricing volatility and transparency. People on the other hand love such services, because the offering with large selection, customer reviews and low prices can be found and bought from a single location fast and conveniently. Actually these players like Expedia that is offering Hotels.com, expedia.com, Trivago and those alike them, are creating direct relationships with customers and effectively drive prices lower (and their profit margin higher because they effectively own demand). Smaller players, who have less known brands but can offer services and products at lower cost, can access demand and challenge better known brands due to this logic.

The demand for lower prices is growing and now it’s also connected with certain brands known for their low prices. In January 2014 Amazon reported that its’ more than 2 million marketplace sellers sold more than a billion units globally. In their annual report Amazon also reported higher profit margins, because everything they sell in their marketplace generate pure profit. Amazon, like big brands, have the demand, selling other businesses’ products don’t cost virtually anything for them.

Here’s how demand is developing in case of accommodation business:

Travel Google Trends

PRESENCE

I think that presence has replaced place on this list. In the digital era, presence equals availability and direct access to buying. Presence is a more flexible concept than place that is physical. Social media is a method of expanding presence across customers’ peer groups and generating recommendations, participation and coverage in general. Aggregators also scale presence further. Customers will choose a brand among those present. It is to say that expanding presence is likely to directly impact sales. Out of sight – out of mind, is the name of the game.

When I have been studying Customer Journeys and customer’s decision making, I’ve learned that there exists a market segment of people who are at the state of “pending decision” or “pending action” in many categories, especially in case of consumer packaged goods. Let’s say that you, for example, need to buy a new toothbrush and you decide to do so. The decision is already there, but it could take months before you actually make the purchase. In such cases the sheer presence where customer makes the purchase increases sales even without any kind of promotion. The same logic applies in many other cases too. I have personally become completely loyal for a contact lens seller LensOn. They send me an email once my previous order is likely to be nearly consumed and I only need to click once to renew my order. They know me and their presence takes place at the right time inside my personal space. I consider that great service. Their presence is perfect – out of sight and not bothering me at other times, only serving me proactively when they know I need it. LensOn has effectively increased my contact lens spending, because I have not run out of them since my first purchase, almost four years ago.

PERCEIVED PRODUCT

A PRODUCT is too often defined by companies as how they see and envision it. This is naturally flawed/biased and is where many companies make a mistake in the first steps of selling and marketing their product/service. Especially engineer lead organizations that are very product detail focused. In reality this should be PERCEIVED PRODUCT, making an enormous paradigm shift from companies defining a product, to understanding that the PRODUCT is actually only and exactly what we can get the consumer to perceive it to be. This adds the element of communication responsibility and understandability to the 7P’s equation. Most companies think they have the best product, but still fail, because of an enormous perception gap in the definition of the product in their minds and the potential customers minds. Perceived Products is naturally tightly linked to the second P = PERFORMANCE, which is all about (repeatedly) living up to, and exceeding the product perception and quality expectations of the customer (The definition of Perceived Product came from Jarno Aho, OMD Finland.)

What makes the concept of Perceived product especially important, is the fact that customer experience about a product or service is firmly embedded on expectations. When expectations are really high, it is difficult to meet them. On the other hand low expectations are easy to exceed and translate them to endorsements. Perception has a major influence on brand demand and preference. Branding has everything to do with it.

PROMOTION

Here’s the Wikipedia’s definition: “All of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, sales organisation and sales promotion.[1]” Another way to approach promotion can be divided in four major categories:

  • Owned media (own customer interfaces and direct channels for customer communications)
  • Earned media (social media and PR)
  • Partner media (retailers, resellers, bundling and packaging partners, etc.)
  • Paid media (advertising, SEM, etc.)

Important measures for promotion are reach and impact to brand awareness, preference, willingness to pay premium and convert sales. In the Internet age of overwhelming availability of data, own media has increased it’s capacity to impact sales tremendously. Search engine’s page rank can be improved, own customer data can be leveraged very cost efficiently and the relationship with customers can drive further reach with earned social media and dialogue with customers. In the current online centric customer relationships in which marketing and servicing merge as one single messaging, it’s increasingly difficult to define where the product or service ends and marketing/promotion starts. You could say that the core customer service and customer relationship processes have become promotional activities in the age of open online dialogue. Partnering influence reach and presence very effectively too. These new possibilities have diminished the role of paid mediums and increased promotional capacity and scalability at a low cost. Data driven marketing enable paid media’s role as an extension of customer relationship marketing even if the customer has never left his/her contacts.

These were my 7P’s. In case you can agree with them, I’m sure you can also agree with this. Marketing used to be about making companies APPEAR to be better, increasing brand appeal etc. Today marketing is about MAKING COMPANIES BETTER. The difference between these two roles is so great, that it demands us to open our eyes and re-define marketing as a practice for the needs and opportunities of today.

Further reading:

Beyond HBR’s “truth about customer experience”

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.

HBR - Truth about 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:

  1. Customer Journey FLOW
  2. How to map and study Customer Journey
  3. Customer Journey stage 1: Brand as a platform
  4. Customer Journey stage 2: Initiation
  5. 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.

creating customer loyalty and trust_improving NPS

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

Customer interface reach & effectiveness

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.

customer portfolio_customer touchpoint & marketing portfolio_product and service portfolio

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:

Bottom-up strategy and data analysis

The Holy Grail of customer value is Symbiosis. Check Symbiosis Strategy – creating the ultimate value  -article here.

This is a video by on Sep 12, 2013, It’s All About the Customer Journey

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer, Toinen PHD

http://www.linkedin.com/in/tonikeskinen

Join The Future CMO Movement LinkedIn Group here

Marketing has an identity crisis – Blue Ocean dashboard

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:

Naturally branding and brand identity has a lot to do with subconscious and emotions along with rational mind. The business owners are  rational, which doesn’t guarantee success and most certainly doesn’t drive willingness to pay premium. Business owners often demand rapid results, which easily leads to tactical marketing emphasis, which only decline people’s willingness to pay for quality and drives opportunistic customer behavior. This is where marketing must bring the magic in. Creativity has more demand now than it has ever had due to the cluttered market and overwhelming amount of marketing messages everywhere.
Marketing has a strategic role inside the corporate hierarchy, it’s time to act and wipe away the perception of marketing, that is now dominating business owners minds.
Let’s face it. Marketing has an identity crisis and Marketing as a “brand” is suffering from wrong “brand perception” and customer experience defects. Lets re-define the meaning of marketing, polish the “brand” and it’s value for other corporate board members. This is why Future CMO Movement was founded!
I hope this community could become a place for game changers to exchange ideas and share experiences. In case you think you would have great material to share, please contact me and I’ll grant you author rights for this blog. Contact me via toni.keskinen(at)gmail.com
Also check out these articles:

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join Future CMO Movement LinkedIn Group here

The CMO Survey 2013 & insights – What CMO’s should do now?

Screen Shot 2013-05-29 at 8.41.47 AM

The Duke University’s CMO Survey 2013 results highlighted again the need for marketing and CMO’s to carry more responsponsibility 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, powerfull 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.

This is the case that CMO’s are facing now too. The way to get there is very much about understanding the big picture (customers, their needs and drivers, choice criteria, their cross-channel behaviour and corporate capacity to serve and deliver great customer experience across touchpoints), managing analytics and customer interface operations. The multitude of digital and analogical touch points has exploded and require very much consideration in order to come up with the essentials and focus on what matters. Marketing budget, according to CMO survey, is currently 10,6% of corporate overall budget and if we add to that retail, sales, customer service, customer managament related technology and online service investments, the customer interface investment in total is eventually what runs the company. This combination is what matters most and should be considered as an entity that must be analyzed and managed in an integrated way. See article Marketing do-or-die -managing customer interfaces

According to the CMO survey 2013:

  • 6% of marketing budget is allocated to marketing analytics and it is expected to grow to 10% over the next three years. However, only 30% of company’s projects use marketing analytics and leverage insights from it
  • Social media share of budget is currently 8,5% and it is expected to be 11,5% by the end of the year and 21,6% in the next five years. However, for the past several year the level of social media integration to marketing strategy has remained at the level of 3,8 in a scale 1=not integrated to 7=very integrated. The spending is expected to more than double but even in current situation the value social media could deliver is not being effectively harnessed.
  • The CMO’s role is weakening in the areas of CRM, new product development, sales, pricing, innovation
  • The company’s next 12 months expectations though highlight success in customer retention and profit increase and the companies are concentrating on diversification strategy (new products – new customers) and organic growth.

To me these results mean, that CMO’s are actually shying away from the corporate center. The best companies are already using Customer Journey design tools and managing customer interfaces in an integrated way, which really enable CMO’s to fine tune their engines and deliver much higher return on investment. These companies are rare though. The results show that in majority of cases CMO’s and marketing department’s role is weakening. Over time this can only mean declining budgets or declining role of CMO.

We are currently living in very rapidly changing environment from which the marketing has best understanding and the board has least understanding. The boards are now more interested in customers than ever, and they need answers. Sheryl Pattek’s (CMO for Forrester research) article highlights how National Association of Corporate Directors (NACD), a group of board-of-director members from the US’s most prestigious companies is discussing the topic: How to keep corporate boards relevant in the 21st century. This is Sheryl’s view on the discussion:

The discussion that morning focused on the need to respond to and keep pace with the rapid change in customer behavior to stay competitive. It also addressed how current board members could keep up with the evolution of customer touchpoints to understand the new digitally-based strategies that are increasingly being shared with them. What I found striking about the discussion after some reflection was that the realization of the critical importance of customer behavior on the future success of top companies has made it all the way to the boardroom. The age of the customer that Forrester first identified in 2011 has really arrived and goes well beyond marketing. Why now? Corporate boards are starting to realize that to provide the strategic guidance and governance that their role requires, they need to better understand customers and how the relationship between them and the companies they direct are changing. And they need to understand it fast. The market is moving and changing too rapidly to be left behind.” (see the full article here: CMOs, Is Joining A Board of Directors Part of Your Career Plan? If Not . . . It Should Be.)

This is the time when marketing can really, finally become corporate center – driver for management change and change management.  Mr. Steven Cook, the founder of Fortune CMO network has made a great presentation about this subject with some cases. Enjoy.

 

SEE ALSO:

FutureCMO definitions

Lost insights and Corporate Blind Spots

Business Design with customer centricity

How to enable smart company and avoid corporate autism

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join FutureCMO Movement LinkedIn Group here
 
 
 
 

Christine Moorman is the Director of The CMO Survey®
http://youtu.be/gqOGVZE-tMo

The CMO Survey 2013 results in full:

Digital Trends for 2013 by Adobe

Technology meets marketing. Analytic mind meets creativity. It’s going to be a year of change which is just speeding up constantly

Digital Trends for 2013 by Adobe

The beginning of customer journey – Initiation

Image

The customer comes to a crossing and stops because the brand successfully engages with him or something changes in the customer’s situation. In most customer journeys there is a defining moment when a person gets actively interested in buying, initiated. That moment can be identified rather reliably. Something makes a person actively start considering about buying something. Active purchasing consideration does create memories because it’s done.. well, actively in your conscious consideration. Active consideration could take years in some cases or it can spark purchase spontaneously. Depending on the category, differences are huge but also within a single product group customers’ behaviour have vast differences. In many smaller decisions the consideration is less profound but still, when ever you are breaking a habit or really considering about doing something, you can recall doing so when specifically asked about it. In fact the customer is the specialist in his own experience and we can learn from him. Best way of getting to know the dynamics and learning about the reasons for people to get interested is by doing one-to-one interviews. Interviews are actually for discovery, expedition trip to customer behaviour and drivers, differences and variety. Group discussions easily make people indicate rational behaviour although it was not. We would suggest one-on-one in-depth interviews or questionnaire before a group discussion asking person’s own thinking. In the group discussion some of the key findings could be thoroughly opened. This kind of approach enables capturing human behaviour more reliably.

There is a methodology in Psychology called Interpretative Phenomenological Analysis (The Psychologist, vol 18, No1, January 2005) It has been developed for analysing people’s lived experiences. The methodology avoid making assumptions and does not test hypothesis. The person’s experience should be recorded as authentic as possible. They are done in one-on-one meeting. Interpretative means that the researcher looks for things that are distinct (i.e. idiographic studies), but will also attempt to balance this against an account of what is shared (i.e. commonalities across a group of participants). Researcher reduces the complexity of experiential data through rigorous and systematic analysis. Analysis relies on the process of people making sense of the world and their experiences. I use this methodology in Insight interviews and then create quantitative study based on these findings in order to quantify which phenomena has most meaning and can these phenomena related to specific business and brand be segmented in some way or result difference between segments and brands.

The best way we could come up when working on One Experience cross-channel buying behaviour mapping tool, was to start with one-on-one interviews and learning about the people’s reasons to get initiated in the first place and continue to map out the cross-channel purchase behaviour.

The initiation of the active consideration is often a result of certain drivers and motives in certain context being prompted to active consideration by certain touch point in certain channel. These reasons, channels, motives, contexts and drivers should be recognized and quantified in different target groups. They are the very foundation of profitable marketing operation.

You can roughly divide reasons to initiate in commercial and non-commercial reasons. Commercial reasons have to do with advertising, direct marketing, outbound telemarketing, retail, point-of-sale promotions, sales people and so on. Non-commercial reasons have to do with magazine reviews, word-of-mouth, actual need because of losing or breaking the old product, tradition based behaviour (e.g. in travelling every year at the same time), change in a living situation (e.g. moving) and so on.

Further, initiation can be divided in initiation in general and initiation to the brand. Initiation in general is about how the customer became interested in acquiring certain product or service in general and these reasons are often non-commercial when asked from the customers directly. This is not completely true because something has created the need in the first place. That’s why it’s also important to ask about their initiation to a purchased brand. Becoming initiated to certain brand is more likely to be commercial. In most cases you can narrow these reasons to a few major ones per segment. This information will help you decide where and what to do in marketing. How to effectively reach people and how to choose the message and content in most appealing way.

The Apple iPod is a great example of a product, which had  ”a long activation” period. The iPods were originally too expensive for many people who would have loved to get one. After some time, the price of the iPod reached tippin’ point, level which enabled most people to get one. At that point iPod rose from most wanted niche product to dominant brand. The MP3 format, iTunes and making CD digitization easy were the enablers of MP3 revolution. ITunes and buying music online were Apple’s strengths. However, the product design and user experience made it the most wanted brand and later on dominant market driver leading the way. Currently it has been predicted that when eye surgery costs come down to the level of 1500€, people choose surgery over new classes. Markets could change profoundly and rapidly.

We have learned from several cases that the brands often don’t know why and from who’s initiative customers got activated. In one case our client, advertiser, was wondering why their demand had suddenly increased dramatically and they made record sales without doing anything specifically. This company had very effective sales process delivering superb customer experience and consequently very high sales conversion. After running customer journey study for them we found out these people were originally activated by a competing company, which had launched a major direct mail campaign. The product was expensive and people wanted to take another offer just to be certain. This incident delivered record sales for the competitor. It’s likely that the active brand also sold more than in average but it’s absolutely certain that they also lost major part of their potential sales.

When you are concentrating on customer perspective you are simultaneously doing very effective competitor benchmarking and learning from their success too. In best case the competitor becomes your best salesman without knowing about it. You can also learn from competitor’s success.

In retail store you can roughly share products in two categories: must have and nice to have products. These products life cycle could vary greatly. In one CPG case that we analyzed we found three most common patterns in getting initiated. The first one was planned. People wrote on their shopping list that they will buy this product. The second was buying in stock when the product was in discount. The third was the biggest one… People who had made a mental note they should buy the product. However, this product was not in the priority list, which resulted ”pending activation”. These people were activated to purchase by just seeing the product in store or seeing an offer about it. The major sales increase for promotion was due to the fact that they had promotional spots that prompted people’s attention and activation by just being there. The sales would have increased even if there were no discounts because people just forgot to act on their decision. In many cases there is latent behaviour that must be recognized in order to optimize profits. There’s no need to offer major discounts if just being there does the job or offer smaller discount or on-top offer in order to justify the extra visibility in store and also activate stock buyers. It also has major indication in the media strategy. If the brand’s awareness and other KPI’s are in order, the most important goal is to have continuous activation going on generating faster re-purchases and increase in the market value. Depending on the product’s role in customer’s life there would also be possibility of creating CRM or social relationship management (SRM) approach that would keep customers active and engaged with them in product and service development.

Testing in the real environment is the only way to get a true business case

Making people move is a fundamental marketing goal. In order to optimize marketing effect, you must study, test and learn what kind of trigger and content create most response. You should also learn in which context or medium people would be most likely to act on the advertising and which interaction channels deliver best results. Consider, what is the role of your own mediums like website, retail or CRM. How can you leverage earned media like discussions online and press or other PR. Are there ways of collaboration with partners that would result synergy and low-cost leads? Where and how much should you invest in paid media like TV, print, radio, outdoor and online. You can manage what you measure and optimizing the mix takes a lot of learning, trial and error to make it right.

The second equally important issue is to learn where you should steer people post activation: online, mobile, customer service, retail or create a first action which help you support customer thru out the journey and purchase. Again, there are good learning’s available but each business is unique.

Consumers want to have control

Today’s consumer want to control the process of choosing and avoid being sold at. Pushing is irritating and considered as a bad customer experience. When customer has a medium in which there is a lot of choice he has the control. Customers choose what to concentrate on, and how much time they are willing to use in learning about product. Customers can choose to continue shopping online, in retail, mail order or to go and see the product live or choose not to do anything.

Advertisers have an opportunity to increase communications to own customers and creating own mediums in print and online. Previously marketing focus was mostly about finding new customers, although majority of the sales came from existing customers. Customer magazines and catalogues are part of customer loyalty, mobilisation marketing. The respondents consider the magazine or catalogue as respect of customers own space, time and consideration.

Buying is not easy

Marketers often assume that selling is hard and buying easy. For customers it is not easy to really understand the scale of offering and relevancy of it. At personal level they have ways of learning in their own time. Often the retail experience is too hectic and nervous for learning at own speed. Online services and catalogues allow people to have their own time and space. In one case outbound represented majority of initiation, but fraction of the transactions.  Banner ads are often judged wrongly due to this – people initiate but make transactions elsewhere.

Consumers consider concrete pricing, product pictures and good presentation of products as valuable service that makes buying easier. It’s easy to see for example how much catalogues and online travel advice decrease the need of personal advice from travel agencies and enable online buying.

The difference between emotional brand advertising with very little information and buying information sources is obvious.

Conclusions about Initiation

Initiation and getting activated is about prompting attention and making the person move. No matter how long there has been a latent interest, there’s always something that changes in offering, customers situation or the market that gets people activated. What is that, what is the motivation behind, what is the customer’s mindset at that point, which brands customer considers as options, which does he prefer if he does? Understanding this has a major influence in the overall marketing strategy.

In order to understand how customers are best reached it’s also important to understand the need of advertising and shopping consideration. For many brands there would be possibilities in helping customers learn about their value proposition by really making great product descriptions and photos for shopping medium use. Although the customers would not buy from these sources, they still learn from them. That’s free media that really hit the target. Brand’s own online service should be the source of ultimate information that really answer customer’s questions and engage with the customer resulting action.

When we were studying the different mediums capability to influence customers and how brands currently work, we came to conclusion that when brands are rapidly learning new, they are simultaneously forgetting old. Customer’s behaviour does change but when competing retail brands e.g. drop catalogue and go purely online, the other brand might gain advantage.

When measuring success brands should concentrate on how much did the advertising change customers perception of the brand positively, did the advertising justify higher price or increase the interest in wider audience with current price or did the advertising just activate people with discounts, which is good in the short run but could damage the brand in the long run. Which mediums performed best compared to the investment? If some mediums under performed was it due to the medium or advertising content? If you can answer all these questions post campaign, your capability to improve further is much better and you can actually predict outcome much better than previously which justify the spending.

What do you think? I’d love to get some comments :)

If you liked this one, check out how to manage customer interfaces and pre-initiation stage along the customer journey Brand-as-a-roadsign.

An article about the next stage in Customer Journey here: Choosing and buying – cross-channel influence

More advice about how to map and stury customer journey is available at https://futurecmo.org/2012/12/01/how-to-map-and-study-customer-journey/

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join FutureCMO Movement LinkedIn Group here

Conflicting interest and Customer Journey

Garmin Navigator

This is a real story, which really shows how little things and conflicting interests influence customer journey.

On one sunny Saturday morning I was browsing thru door drops, marketing leaflets from home electronics stores, cataloguers, hypermarkets and such. For more than a year I had been following the price development of systems cameras by Nikon and Canon. While doing that I had also got interested in GPS navigation. On this sunny Saturday there was a sale for TomTom Navigator at the price of 75€. It was a limited offer, only 400 pieced nationally. Package included maps for Western Europe. When the clock was closer to 10am, the opening hour, I decided to drive to Gigantti and buy the GPS navigator.

I came to the store and looked for the right one. I asked from the seller and she showed me where the model was. She also said that there had been a mistake in the ad, the package only had Scandinavian maps in it. I asked how much more would it be with European maps?  105 €. The salesman showed GPS navigation models on the wall. ”Here’s TomTom”. Next to it I noticed Garmin model that had the same price as TomTom. I asked if there was any difference between Garmin and TomTom. The salesperson said Garmin had better battery life. That was it. I walked out from Gigantti with Garmin 245. The purchase customer journey was done.

Let’s consider this journey and it’s implications to different players.

Me, the customer:

I was very happy, although I paid 40% more than intended but 105€ wasn’t a problem eventually. I was highly price-oriented customer who was looking for ”good enough” solution and was not interested in more advanced solution or bigger screen. Because of the basic functionality needs I had I was also not interested enough to look in to product specifications online, product reviews or discussion forums. This product will get the job done anyway. At home, the product exceeded expectations. It had much more functionalities than I was expecting. They had minor meaning compared to the basic functionality, none of them was more important than the battery life, but it was a positive surprise.

Gigantti store:

Closed 40% more sales than I had intended to spend. The experience about the store was positive and the sales person’s advice was good, which means that the store will get more money from me later on. Was their error in the ad intentional? Probably not but they should still analyze how the error influenced their GPS navigator sales in general. What did customers come to buy and what did they actually walk out with?

TomTom:

Complete failure. The brand might have made a special deal for the campaign resulting change in price image. After reading that leaflet customers think, that you can get TomTom with European maps at the cost of 75€. It easily becomes the market standard. You are making a bad deal if you pay more for it. Price/value ratio sounds perfect but actually it wasn’t real because of the error in the ad. That’s ok if you go to Gigantti and they tell you about the error. If you don’t you just expect that TomTom’s are now cheap. It’s most likely that TomTom does some kind of post campaign analysis and comes to completely wrong conclusions unless they understand how the purchase dynamics in the low price category GPS really works and how their campaign influenced customer behaviour in general.

Garmin:

Great success. Garmin did nothing but made a deal anyway.  Well, I had positive image about Garmin in advance and the sales person just gave me the last defining fact that led to decision to buy Garmin. Now that Garmin closed a deal with me and got me registered, I am quite likely to buy other stuff on top later on.  Was Garmin’s success intentional? In reality the sales person’s advice could have been founded on her own perception or Garmin had analysed the differences between brands and intentionally launched training for retail sellers which states that their battery life is better than TomTom’s. How much longer? No idea.  It never came up.

Questions?

 In the cross-channel decision-making journey customers move instinctively. There are conflicting interests, opinions, and influencers along the journey. How do you manage that? What do you know about the journey in practical level? Brands win and loose or worse, sell competitors products, without knowing it. Are you selling your competitors products? How do you manage chaos?

Have you got similar experiences? I’m looking for more real life experiences 🙂

More about how to map and study Customer Journey here https://futurecmo.org/2012/12/01/how-to-map-and-study-customer-journey/

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join FutureCMO Movement LinkedIn Group here

Planning 3.0 – combining Creative, Communications, Experience and Business planning = Customer Journey Management

Admap published a writing competition results – best articles about “Planning 3.0”– How will we be planning in 2020? The winner, Nick Hirst said “We need to transcend the often polar disciplines of ‘conceptual’ (creative agency) and ‘practical’ (media agency) planning to deliver, not communications, but great brand experiences.”

I couldn’t agree more! Although mr. Nick Hirst’s and other rewarded articles were great, what really made an impression to me was the pre-words the judges wrote. They analyzed the articles they received and came to conclusion that the future of planning looks like… ‘We don’t know’, or at least, ‘we don’t agree’.

According to judges the most striking theme about the entries was not about how the entries were presented but how they represented a clear new chapter of planning, not necessarily a consistent chapter, but a new one nonetheless. This new era could be dubbed the, ‘the post-specialist era of planning’. 

Planning has grown around specialists in data and analytics, user experience, information architecture, trend analysts, digital strategy search optimizers, social media and crm gurus… Until now, the dominant conversation about strategy has been about the need for these specialists, and for them to be distinct and separate from what has gone before.

Entries to this Admap Prize competition no longer championed the specialists as skill sets that deserve their unique place. Instead, they argued that they should be the very future of planning in its entirety; the planning specialism becomes the planning mainstream.  According to judges, authors wrote of the data and analytics skill as simply becoming planning – all tasks of planning would become measurable and, therefore, the measurement/analytic skill would become planning. Or, the specialist skills of social media strategy would become the fundamental of brand planning, given the very social future that brands face.

According to main judge, JWT’s Guy Murphy two things will happen

1. There will be a sense of planning returning to be a more singular and holistic way of working. Certain planning tools will become the norm for all planners – just as the notion of ‘paid, earned and owned’ seems to have become standard currency for media thinking today.

2. Planning will become more influential. The assimilation of its new-found specialists skills will make it a richer, more effective and more confident force. It will make a decent fist of managing the huge and growing complexity that faces brand building and communication. This will shift the role it has been playing.

In my opinion 2020 is far far away and everything mentioned above is already happening. Planning is rapidly facing new requirements for its effectiveness and moving towards more holistic view. Actually this holistic approach is gaining momentum in general.

Last week IBM organized “Smarter business day 2012” event in Helsinki. Data analytics was an issue there too. What IBM’s director for Analytics division Juha Teljo presented that the whole analytics business is moving from application centered approach to analytics centered approach by 2020:

So, along with planning, also the whole infrastructure is becoming analytics – that is planning – centered.  Once I search about this matter, I also found IBM’s view on how to create Analytics Center of Excellence inside your own organisation. The 150-page material is attached here: 5Keys to BA Program Success

The winning article by Nick Hirst agreed with this idea of holistic planning. He recognized User Experience planners as the first breed of future planners: “User experience goes way beyond Information Architechture. While the latter is a specific discipline concerned with the organisation of information to ensure its swift, intuitive navigation, User Experience considers the experince of the user as a whole: their expectations, their level of interest, their attitudes  even how they feel. Concepts like surprise of disruption, or even entertainment – all proven tools for affective and effective communications – are anathema to a classical Information Architect, but entirely within the imaginative realm of the User Experience Architect.

Even now they think about both the effect of an indivicual, small experience – a piece of copy, a picture, the way a button workds – and the overall journey. Even now, some agencies are recognizsing the ‘planneriness’ of what they do, and reconceiving them as Experience Planners. But just imagine what would happen if we unleashed that kind of thinking on everything else that comms agencies do now.”

I think the future of planning will be even more amazing than expected and I do think that Nick Hirst’s dream is becoming reality. Here’s what I think:

  1. Planning marketing will be about planning competitive advantage, that is corporate strategy and operations. see Forbes article here
  2. Corporate Image will be more and more about actual experiences and shared opinions – planning will be about designing and managing customer interfaces and experience. Article here https://futurecmo.org/2012/11/10/marketing-do-or-die-managing-customer-interfaces/
  3. Comms and marketing to customers will become service experiences – event based automatic communications that integrate with the customer’s situation and needs in any given location or interface. Marketing automation becomes service automation along the customer’s journey. The center of gravity will be the Customer Journey understanding and design.
  4. Planning will become more holistic than ever – we are moving towards business design. At this point planners will become the McKinsey’s consultants of tomorrow or McKinsey’s consultant will take care of the business design on behalf of marketing planners of today. McKinsey is already moving towards customer journey and experience planning, see this article http://cmsoforum.mckinsey.com/article/winning-the-consumer-decision-journey#.UIOLl_Mukic.email I would take it even further, here’s why https://futurecmo.org/2012/10/21/customer-decision-making-journey-flow/

Companies that are taking analytics and planning seriously are already doing much better than their peers. By 2020 you really have to be great in order to survive. And let’s not forget – analytics is useless without understanding and decisions (generate corporate autism) – planning and management. I thinks this means the dawn for customer journey planning and management as the new breed of holistic planning work!

SEE ALSO:

“The CMO 2013 Study insights and what CMO’s should do now”

Lost insights and Corporate Blind Spots

Business Design with customer centricity

How to enable smart company and avoid corporate autism

Author: Toni Keskinen, Marketing Architect & Customer Journey Designer

http://www.linkedin.com/in/tonikeskinen

Join FutureCMO Movement LinkedIn Group here

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