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Putting Digital to Work
4 Key Actions to Drive Digital Transformation
2+ million search queries
Source: Intel
204,000,000 e-mails sentSource: Intel
120+ reviews
30 hours of video uploadedSource: Intel
100,000 tweets
Source: Intel
208,000 photo uploads
Source: Intel
9
• 44% of all cell users• 40% of those 35-44• 50% of smartphone owners• 60% of those 18-34
Source: Pew Internet & American Life Project
Fragmented “Customer” Set
Industry Disruption/Disintermedia
tion
Risk-Sensitive Culture Highly Emotional Purchase
4 key actions
1. Know your customer
2. Lead with data
3. Test and learn
4. Master accountability
1: KNOW YOUR CUSTOMER
Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71
Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66
Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66
January, 1998 •Cut commissions to $29.95 in all channels
6.67
Date Event Split-adjusted share price
December, 1996 •Launch online trading 3.71
May, 1997 •700k/1.5MM online accounts 4.94
Year-end 1997 7.66
January, 1998 •Cut commissions to $29.95 in all channels
6.67
Year-end, 1998 •59% commission revenue growth•Pre-tax margin 18% vs. 10.7% industry average•ROIC 5x industry average•50% market share
15.47
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12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95
Split-adjusted share price
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20
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12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95
Split-adjusted share price
•30%-35% of all revenue-based trades occurred online (up from ~0%)•Schwab captured half•All by focusing on
customer
2: LEAD WITH DATA
• “You’re not losing placement on one site; you’re gaining placement on a dozen more”
• Defined potential lost revenue to each hotel
• Rolled out with only four brands
• Reported incremental hotel results monthly
• Additional brands asked us to enlist in program
3: TEST AND LEARN
“Swing for Fences” or “Slow and Steady”?
• Staged sequence of market tests for client
• Holdback and A/B tests on marketing messages
• Averaged 1.6% increase monthly
• 83% revenue increase over three years
• 22% CAGR
Image source: http://www.usmc.mil/marinelink/image1.nsf/ae82f18a8e1b160b852568ba007e7e5e/afd408b3a327a3d4852570850054af5b/$FILE/02padres01.jpg
Not “Big Data.” Your data.
• Know your customer
• Competitive differentiator
• Scale when ready
Visual Information Specialist Jason Johnston/U.S. Army
4: MASTER ACCOUNTABILITY
Image © 2011 Manu Cornet http://www.bonkersworld.net/2011/06/27/organizational-charts/
RAPID• Input
• Recommend
• Decide
• Agree
• Perform
4 key actions
1. Know your customer
2. Lead with data
3. Test and learn
4. Master accountability
Thank youWeb: timpeter.com
Phone: 201-305-0055
E-mail: [email protected]
Twitter: twitter.com/tcpeter
