Given the importance of digital transformation and the never ending onslaught of new technologies, how should organization prioritize limited resources, time, and attention? This presentation to the San Francisco American Marketing Association is the 7th year in a row when Charlene has presented her take of top digital trends.
Top Digital Transformation Trends and Priorities for 2016
1. Proprietary and confidential. Do not distribute.
Charlene Li, Principal Analyst @charleneli
Altimeter, a Prophet Company charlene@altimetergroup.com
January 26, 2016
The Digital Transformation
Helping Your Company Thrive in the
Digital Era
3. 3
What are the Important Trends?
With limited time and resources,
what should you focus on in 2016?
What are crucial areas to focus on to
drive digital transformation?
What can we safely ignore?
6. 6
Top 10 Priorities for Digital Transformation in 2016
1 Customer
Experience
2 Culture &
Leadership
3 Content
Strategy
4 Digital
Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of
Things
9 Artificial IQ 10 Virtual
Reality
Top Priorities
7. 1. Customer Experience
Everything that you do (and don’t do) impacts the brand
Priority: Map out and use the digital customer journey
8. 8
Customer Journeys Are Not
Connected to Digital Transformation
Is your organization undergoing a
digital transformation?
Source: Altimeter Group Digital Transformation Study, 2014.
88%
12%
Yes
No
42%
25%
12%
12%
3%
The need to do so
hasn’t come up or been
made a priority
We have not officially
researched the digital
customer journey but
we have updated
digital touch points
with new social and
mobile technologies
and investments
We’ve talked about the
need to do so but no one
has taken the lead yet
We are researching
customer behavior now
and waiting for results to
inform our digital
transformation strategy
We have completely mapped out
the customer journey within the
last year and have a clear
understanding of new digital
touch-points
Which best describes your company’s efforts around
the customer journey/experience?
9. 9
Nordstrom’s purpose: To provide a fabulous customer experience
by empowering customers and the employees who serve them.
21. 21
Employee Engagement Has Very Slowly Improved
US EMPLOYEE ENGAGEMENT
Figures show are for February of each year
28.1
30.5 30.4 31.4 32.9
52.0 50.4 50.8 50.8 50.3
19.9 19.1 18.8 17.8 16.8
2011 2012 2013 2014 2015
Engaged Not engaged Actively disengaged
Source: GALLUP
30. 30
Content Management Team
Case Study: Nespresso
• Sets governance for content production
process, guidelines for tone, visuals and
messaging
• Orchestrates content across PR, customer
service, local markets and commercial teams.
• Works closely with CRM and customer
insights group
The Content Management Team:
• Turns customer insights into relevant content.
• Hosts digital/creative assets.
• Sets governance for how content is used.
• Establishes guidelines for consistent voice,
message and tone.
• Looks for integration between paid, earned
and owned content.
35. 35
Break Down Silos to Align Customer Experience Priorities
• Different KPIs lead to competing efforts
• Consumer data lives in silos, each department has
partial insight
• Same channels have disparate content
39. 39
Three Key Issues Around Paid Social
Paid Social Ads
Social Community
Management
Social Customer Care
Will brands shift resources from engaging customers
through community management to paid social for
reach, and shift engagement to social customer care?
40. 40
Three Key Issues Around Paid Social
Paid Social Ads Employee
Advocates
Or will the rise of employee advocacy increase reach
and thus reduce social ad spend?
41. 41
Three Key Issues Around Paid Social
Paid Social Ads
Will brand teams continue to use social at the top of the
sales/marketing funnel?
Or will digital advertising use paid social ads to drive e-commerce?
Brand Marketers Digital Advertising
42. 6. Wearables
Why Wait: Primarily health/fitness use
cases
Why Act: Develop content that can be
consumed on these emerging platforms
43. 43
Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce
Have a strong
content strategy
and capabilities to
take advantage of
emerging platforms
44. 7. Visual Web
Why Wait: Technology to identify and
analyze your visual brand are still nascent
Why Act: Your brand is under fire/being
lauded/ignored and you don’t know
46. 8. Internet of Things
Why Wait: Standards are a complete mess
Why Act: Post-purchase experiences and opportunities to
build loyalty/advocacy
47. 47
Diageo piloted connects bottle to smartphone
campaign for a personalized content experience
• 72% sales during pilot
• Expanded program to 6 countries
• 100k unique QR code downloads
• supply chain efficiency/visibility
48. 9. Artificial Intelligence Virtual Assistants
Why Wait: Still very early in development
Why Act: Build trusted relationships with
recommendations/ads via AI-powered virtual assistants
49. 49
Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use
50. 10. Virtual Reality
Why Wait: Proprietary platforms are just launching this
year, standards are still emerging
Why Act: Study and develop new storytelling capabilities
51. 51
Prepare Content and Customer Experiences for VR by Exploring Storytelling
Oculus Rift, March, $599 HTC Vive Pre, March
Sony PlayStation VR, H1 ‘16
Samsun Gear VR, $99
Microsoft HoloLens, 2016 $3,000 Google Cardboard, $30
52. 52
Top 10 Priorities for Digital Transformation in 2016
1 Customer
Experience
2 Culture &
Leadership
3 Content
Strategy
4 Digital
Ecosystem
5 Paid Social
Watch and Prepare
6 Wearables 7 Visual Web 8 Internet of
Things
9 Artificial IQ 10 Virtual
Reality
Top Priorities
53. For more information please contact:
Charlene Li
Principal Analyst
charlene@altimetergroup.com
@charleneli
www.altimetergroup.com
www.charleneli.com
Notas del editor
Do you *know* your digital customers? They are not just young Millennials. They are all ages, backgrounds. They are your customers, and they are digital. The opportunity today is to know so much more about them.
While it’s great to think about new technologies like IoT and VR, the trends that will drive real business value will be the ones that are maturity today – Social, Cloud, Mobile, and Data. It’s really the convergence of these tech trends coming together that are creating opportunities.
Here are the top 10 priorities for digital transformation in 2016. The Top 5 should be the core focus of your efforts and limited time/resources. The next five are still developing – and the best way to prepare is to make sure that the top five priorities are met. If you can deliver great customer experiences across the customer journey, have a content strategy in place, and the digital ecosystem worked out, you’ll be able to execute on these newer trends as they develop over the next 1-2 years.
Altimeter’s research shows that 88% of companies are going through a digital transformation. But only 25% truly understand the customer journey and use it to create new digital touch points.
Here’s an example: Nordstrom’s purpose statement is focused on the relationship with customers, defined by EMPOWERMENT. They started with inventory systems because they helped salespeople fulfill a key need of customers. Then armed employees with tablets, information at their fingertips. Then incorporated Pinterest pins into merchandising, and even put pins in the stores. Their technology choices were grounded in what will build experiences that deepen the relationship. This is a strategy.
For more information, see prophet.com/relevantbrands
Even the way we create traditional customer journeys needs to change – next generation experiences will go beyond a few personas to be individualized, be continously designed based on dynamic, real-time data.
Sephora uses behavior to segment down to thousands of segments to customize the experience online and in the store. ColorIQ is a key component of this, but so is the online experience around these 110 segments X preferences/purchases.
For more information on this research, go to http://bit.ly/IoTPrivacy2015
For more information on this research, go to http://bit.ly/CXcloud2015
For more on this research, go to: http://www.altimetergroup.com/2014/07/the-2014-state-of-digital-transformation/
For more on this research, go to http://www.altimetergroup.com/2014/12/strengthening-employee-relationships-in-the-digital-era/
For more on this research, go to http://bit.ly/2015socialbiz
For more information about “The Engaged Leader” book by Charlene Li, please visit charleneli.com/the-engaged-leader
Can you find 15 minutes to listen to what is on the minds of your top customers and employees?
Correct. No one cares what you had for lunch. They care what you talked about at lunch.
Incorrect. You lead a team, you lead your company’s information strategy. It’s your job to set the strategy, and communicate it over and over again.
This is the hardest to overcome, how to build up the confidence in your judgment.
This is the hardest part of being engaged. Palms sweaty, stomach churning.
For more information on this research, go to http://www.altimetergroup.com/2014/12/a-culture-of-content/
For more information on the research, go to http://bit.ly/ContentPerf2015
For more on this research, go to http://bit.ly/2015socialbiz
For more information on this research, go to http://bit.ly/CXcloud2015
For more on this research, go to http://bit.ly/2015socialbiz
For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
For more informationon this, go to http://www.altimetergroup.com/2016/01/altimeters-top-technology-trends-for-2016/
gives Diageo a direct, one-to-one channel for communicating with consumers: their products.
3. It enables users to personalize products, by definition, in unique ways.
4. It converts existing, even generic, products into functionally intelligent ones, which (with the addition of smart phones) can deliver dynamic ad messaging linked to specific physical objects.
5. It creates a rationale for the consumer to have an on-going relationship with the brand — by linking continuing online interactions to real world product-based experiences.
– The campaign changed customer perception of the whisky category, re-positioning the participating Diageo brands as innovative and modern
– CRM opt-ins meant that Diageo gathered permission-based intelligence it could then reapply for future customer interactions
– Resulted in a 72% sales uplift in the two weeks leading up to Father’s Day, plus an earned media value five times higher than investment
– Due to the success in Brazil, the Father’s Day digital gifting campaign will rollout in 2013 across multiple markets, and Diageo’s first mobile loyalty scheme running on EVRYTHNG’s Engine launches in May this year
Results
72% increase in sales in the 2 weeks before Father’s Day
Earned media impact 5x investment
Several celebrities created videos tweeted to 1M followers
100k increase in Facebook fans
Global PR and industry coverage
Permission-based opt-ins to CRM program, loyalty program expanded
100,000 unique QR downloads
Program expanded to 6 countries
Increased loyalty, loyalty rewards
Enabled mobile targeting linked to specific QR code
Increased supply-chain efficiencies
https://evrythng.com/customers/diageo-case-study/
http://www.marketingmagazine.co.uk/article/1311292/five-brands-successfully-embracing-internet-things
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