Embed Size (px)
Citation preview
the DIGITAL ENTERPRISE
REVOLUTION2012U R HERE
31%
OF COMPANIES REPORT THEY ARE
JUST STARTING TO DEVELOP
A MOBILE STRATEGY OR HAVE
NO MOBILE STRATEGY AT ALL.
SOCIAL BUSINESS
CL UD
MOBILITYHOW THE WORLD GETS ONLINE
IN ONE MINUTE ... MOBILE STRATEGY
2008 2014
60%
OF SERVER WORKLOADSWILL BE VIRTUALIZED
IN 2 YEARS
90%OF THE
WORLD’S DATA WAS CREATED IN
THE LAST
2 YEARS
BigData
Cloud Apps
.com Mobile Email
Video Social Search
BIG DATA APPSWHERE MOBILE USERS SPEND TIME
60%
1.5bvia desktop
5.5bvia mobile
100,000
Tweets47,0
00A
pp S
tore
dow
nloa
ds
2 million Google searches
695,
000
Fac
eboo
kst
atu
s u
pdat
es
571 new websites
= 100 MILLION
12%
Fortune 500companieswith blogs
23%
Fortune 500companies
active on Twitter
62%
ONLINE RETAILU.S. OUTLOOK: GROWTH
2012 2016
192 million people167 million people
45% $327B$226B43
Mobile Web
16
42
17
54
21
54
23
59
23
70
24
72
25
71
27
72
25
83
26
79
20
88
21
101
23
Mobile Apps
20122011MARFEBJANDECNOVOCTSEPAUGJULJUNMAYAPRMAR
(billions of minutes per month)
AN INFOSYS PUBLICATION
ART & SCIENCE
AR
T &
SC
IEN
CE
the D
IGITA
L EN
TE
RP
RIS
E
ART & SCIENCE
VOLUME 2
THE DIGITAL ENTERPRISE
infosys.com/artandscience
AN INFOSYS PUBLICATION
ART & SCIENCE
Gartner,as published in CRN
Server, Desktop Virtualization To Skyrocket By 2013: Report
http://www.crn.com/news/applications-os/214000129/server-desktop-virtualization-to-skyrocket-by-2013-report.htm
The 2011 Fortune 500 and Social Media Adoption Study ,
by Center for Marketing Research atthe University of Massachusetts
Dartmouthhttp://www.umassd.edu/cmr/studiesandresearch/2011fortune500/
Modus Associates, as published in
Mobile Marketer, March 4, 2011http://www.mobilemarketer.com/cms/news/research/9264.html
Mashable, June 22, 2012http://mashable.com/2012/06/22/data-created-every-minute/
&
Business Insider, December 26, 2011 http://articles.businessinsider.com/2011-12-26/
tech/30559182_1_facebook-status-updates-skype
Q4 2011 Global Mobile Maturity Online Survey,
Forrester, April 2012http://blogs.forrester.com/thomas_husson/
12-04-13-drive_product_innovation_to_mature_your_mobile_strategy
Ron Conway,Where Angels Will Tread,
The Economist, November 17, 2011http://www.economist.com/node/21537967
Nielsen, as cited byBeth Callaghan,
The Era of Appnation Has Arrived,AllThingsD, May 16, 2012
http://allthingsd.com/20120516/the-era-of-appnation-has-arrived/
U.S. Online Retail Forecast, 2011 to 2016,
Forrester, February, 2012http://www.internetretailer.com/2012/02/27/
e-retail-spending-increase-45-2016
CHIEF EDITORS
Raj Joshi
Stephen Pratt
Ming Tsai
EDITORIAL BOARD
Vince Cavasin
Oliver Siodmak
EDITORIAL ASSISTANCE TEAM
Simon Berkeley
Inder Dua
Melodie Grace
Sanjay Khurana
Monika Matthews
Margi Moscoe
Sameer Phadke
Steve Silver
Bonny Smith
Manu Tyagi
MARKETING TEAM
Jigesh Haren Shah
Navninder Singh
Amandeep Singh Syali
Varinder Verma
5 WELCOME Stephen Pratt
6 THE JOURNEY ToaCustomer-Centric Business
Robert Ballantine and Richard Hamerton-Stove
14 BIG DATA Embracingthe ElephantintheRoom Duane Lyons and Rajeev Nayar
22 7 COMMON MISTAKES ThatKillSocialMedia’sValue Jack Keen and Farhan Elias
30 MOBILE STRATEGY FindingValueinApps
Heidi Lamberts and Steve Orr
36 INTERVIEW WITH SANJAY NAIR UnitedAirlines’Managing
DirectorLoyalty&CRMTechnology,MileagePlus
42 ENTERPRISE DIGITAL STRATEGY
RealityorScienceFiction? Akash Bhatia
48 DOING A DIGITAL MARKETING CAMPAIGN?
YouMightNeedaGeneralContractorforThat
Brian Famigletti, Nicole Spitalieri, Avijit Dutta and Roma Sharma
Art & Science Volume 2: The Digital Enterprise
ART & SCIENCE 54 ART & SCIENCE
Welcome to Art & Science,
Consider this issue part warning and part clarion call.
The warning goes something like: “Hell hath no fury like a digital consumer
scorned.” Like it or not, your customers (and most likely you) have become
those full-fledged, pesky digital consumers. Whether based on facts, gossip,
or experiences, customers are sharing impressions about businesses in a
remarkably efficient manner. Increasingly, buyers will have an information
advantage over sellers (or will think they do). Developing loyalty will require
honest, open, listening relationships with customers – at scale. And that
means digital.
Fortunately, the same mechanisms that have emboldened the digital
consumer are also available to the digital enterprise. Mobility, social
media, digital marketing, in-memory analytics, data visualization, platform
independence, and good data governance – the tools of the digital enterprise
– offer an amazing canvas where creativity and technology can come
together to create business model brilliance. Art meets science once again.
We have all felt the effects of great digital enterprises – fast, responsive,
easy to work with, reliable, self-correcting. And these characteristics have
some nice side effects for the business: increased sales, reduced costs, lower
working capital, and abundant loyalty from your valued customers.
We hope this issue helps you avoid the fury and feel the love. And of course,
we hope it all leads to success with your customers, employees, partners and
investors. Digital consumer, meet the digital enterprise.
Enjoy the issue, and thank you for spending a little time with us.
Stephen R. Pratt
Managing Partner – Worldwide Consulting & Systems Integration
Executive Council Member, Infosys Ltd.
ART & SCIENCE 5
A n Infosys consultant returning to LHR from a business trip to SIN arrived at the airport and made her way to the gate for an 11:30 p.m.
departure. As she neared the gate, she noticed the aircraft wasn’t there. Great, delayed. She grabbed a seat, hoping it wouldn’t be long. Soon, an agent got on the loudspeaker and explained the delay was due to weather in London. OK, not much they can do about that. An hour later, the agent made another announcement, apologizing profusely, but admitting the delay would last at least until 2 a.m.
by Robert Ballantine and Richard Hamerton-Stove
THE JOURNEY
To a Customer Centric Business
8 ART & SCIENCE
The Journey To a Customer Centric Business
ART & SCIENCE 9
Along with the announcement, the crew rolled out a spread of food and drinks to tide customers over, and handed out blankets and pillows so people could rest.
The flight wasn’t called until 4 a.m. But as the weary passengers prepared to board, friendly crew members stood at the jet way and handed out a gift, along with a survey asking for opinions on how they’d handled the disruption. On the plane, the captain personally apologized for the delay. And flight attendants provided one-on-one help with each passenger’s connecting flight.
What’s missing from this picture? Lost customers. Angry tweets. Passenger frustration.
Singapore Airlines did things right. They explained the delay, apologized, tried to diminish the inconvenience, and solicited feedback. They knew this was a moment customers would remember, so they used it as an opportunity to create a positive experience.
But great customer experiences don’t happen by accident. They are planned, designed and actively managed. Companies that consistently deliver, and improve upon, positive experiences have three things in common: customer insight, a customer culture, and a “designed” customer experience.
THE CUSTOMER EXPERIENCE MATURITY MODEL (CXMM)How good is your organization at planning and delivering outstanding customer experiences? Our Customer Experience Maturity Model has five stages of maturity,
based on how advanced an organization is in three capabilities: insight, culture, and experience design.
1Customer Insight: Does your business have an accurate,
data-driven picture of customers, their needs, and their behaviors?
Carmaker Nissan had customer satisfaction challenges in 2011. The problem was inconsistencies in the dealership experience (comfort, rest room quality, etc.), and Corporate had no means of tracking or responding to these problems.
Once the company developed a means to measure and collect feedback on the dealership experience, the effect was
significant; customer satisfaction results were boosted in less than a year.
Of course, it’s not just having good data that creates insight; it’s the
delivery of that data in bite-size chunks that
can drive action.
This means serving up
alerts, exceptions, and thresholds –
highlighting the So what for busy executives. It also means delivering the data in new ways, via mobile, tablet or other portable devices. How insights are filtered, interpreted, and delivered can exponentially increase their value.
2 Customer-Focused Culture: Does the whole business
revolve around providing value and service to customers?
Rackspace is an IT infrastructure firm that understands hosting has become a commodity, and the only way to differentiate is through outstanding
service. The company refers to itself as a service business rather than a technology provider. One employee even holds the title “Customer Fanatic & Vice President of Fanatic Support.”
Once when service went down for a few hours, Rackspace refunded customers for the entire day at a cost of $3.5 million. The move generated tremendous word-of-mouth and customer loyalty. And as a result, Rackspace has had 40 consecutive profitable quarters, grown at least 50% every year since 1999, and in 2011 grew net revenue 31%. They charge a premium for their service, but customers are happy to pay it.
3Customer Experience Design: Has the business actively
designed a differentiated experience at all touch points?
Apple is an oft-cited example of exemplary design, but for good reason. Apple’s genius in products such as the iPad and the iPhone comes from a deep understanding of how a product is made: its materials, its tooling and ergonomics, the unboxing experience – the total design.
But the “Apple experience” transcends product design: go into a retail store, and you can check yourself out when purchasing small items by using an app on your phone. The store is designed to inspire, and everyone is invited to use the product. Small details are all well designed, from the roving employees who come to you to complete a sale, to the receipt printers hidden under every desk in the
store. Beyond the stores, every single customer touch point, down to emails, support, forms, contracts, and problem resolution processes, are actively designed at Apple. Often ignored as inconsequential by Apple’s competitors, these small encounters create an incredibly positive impression.
CXMM: THE STAGES OF MATURITYBecoming so customer-centric that you develop devoted evangelists doesn’t happen overnight. It’s a journey with several stages, and these are the stages of our Customer Experience Maturity Model. STAGE 1: THECUSTOMERISIGNORED
Insight: In Stage 1, businesses are capable of receiving and processing customer complaints, but they do not act on the root cause. They may track competitive positioning of customer satisfaction through 3rd party research, but they only understand customer interactions in terms of their own organizations.
Culture: Companies like this focus on streamlining processes internally rather than on improving customer interactions.
Experience Design: A Stage 1 business tolerates bad experiences. The most critical experience failures are addressed reactively, but not in a systematic way. For example Ryanair, who makes customers pay to use the aircraft toilets, is a clear example of a company that has made the decision to compete on price rather than customer experience.
STAGE 2: THECUSTOMERISHEARD
Insight: A Stage 2 business uses customer research to segment its customer base.
Customer satisfaction and its drivers are understood, but only in the context of the industry.
Culture: Businesses at this stage will acquire and manage data on satisfaction through warehousing and regular market research including benchmarking, mystery shopping and satisfaction surveys. But management doesn’t share data throughout the business.
by Robert Ballantine and Richard Hamerton-Stove The Journey To a Customer Centric Business
10 ART & SCIENCE ART & SCIENCE 11
Great customer
experiences don’t
happen by accident.
They are planned,
designed, and actively
managed.
CXMM:
THE
STAGES
OF
MATURITY
Business is inward-looking.
Has only a basic understand-
ing of (and interest in) who
customers are or what they
want. Customers often
believe the business doesn’t
understand or care about
them. Customer experience
is inconsistent and often
unpleasant.
STAGE 1HEARD
Business has a good
understanding of who
customers are and how they
feel, and uses this insight to
make adjustments to the
customer experience.
Customers may believe the
business is interested in
learning from them, but they
don’t have much attachment
to the brand.
STAGE 2UNDERSTOOD
Business has programs that
drive deep insight, track
customer preferences, and
ensure a consistent
experience. Customers
believe their needs are
mostly addressed by the
products and services
offered. There is a clear
linkage between customer
insight and products.
STAGE 3
ENGAGEDBusiness has a comprehen-
sive, actionable picture of
customers, and a culture of
accountability. This gives it
differentiation in the market
and generates loyalty.
Customers believe the
business cares about them,
and they trust the company.
Customers demand
increased value, and they are
rewarded for their loyalty.
They are willing to spend
more for the assurance of a
consistently positive
experience.
STAGE 4PASSIONATE
Business has such strong
relationships with custom-
ers, it has become the
undisputed industry leader
in Net Promoter Score and
customer retention.
Customers are passionate
evangelists. They feel
privileged to associate with
the company and share
stories of their positive
experiences with others.
STAGE 5
IGNORED
ask for permission to do so. In fact, they are measured on customer experience as part of their performance rating. Consider the Ritz Carlton, which empowers associates to spend up to $1,000 per day per guest to improve someone’s stay. While not every company can afford to spend this much on each customer, the spirit behind the idea is instructive. At every Ritz, the staff also reviews guest situations at the beginning of each day, in a meeting they call the “Line Up.” Most businesses could afford to implement a practice like this.
Experience Design: Customer experiences are structured, identified by segments and aligned with sales and customer service. The quality of customer experience delivery is fully under control, with consistent, positive experiences delivered each and every time, and your most profitable customers receiving superior service.
STAGE 5: THECUSTOMERISPASSIONATE
Insight: A Stage 5 business tracks and reports on all interactions with customers and predicts the effect of future interactions. Businesses at this level have invested in systems that augment raw customer data with real time feedback. At popular Spanish retailer Zara, store associates act as “eyes and ears” for Headquarters, noting what colors and styles are hot. Executives actively monitor and respond to this feedback, rotating lines and products mid-season.
These companies have a systematic, holistic and dynamic view of the customer and track individual customer preferences, like the Nordstrom personal shopper who calls because she’s found an item you might like based on previous purchases. Culture: A business with passionate customers routinely involves them in
setting the direction of the company and in the development of new products and services. A Stage 5 business will operate a customer-centric organizational model, like Harley Davidson, where senior executives are required to spend at least 15 days a year riding with customers in order to really understand their needs, lifestyle, and experience with the product.
Experience Design: Stage 5 Experience Design uses customer behavioral data to tailor products to individuals, rather than just segments. Think about the recommendation engine on Netflix or the personalized recommendations on Amazon; these are Stage 5 companies who tailor their products and experiences to a customer’s specific buying patterns rather than a general demographic like Soccer Moms. The personalized customer experience keeps engagement and customer retention rates very high. CXMM: THE BOTTOM LINEWith this 5-stage model, businesses can work their way up the ladder of collecting insight, building a customer-focused culture, and embedding experience design in every decision every employee makes.
The journey to a truly customer-centric business is a long and arduous haul, but if you succeed in passing through enough stages, your marketing hurdle will decrease in inverse proportion to your rising customer loyalty.
by Robert Ballantine and Richard Hamerton-Stove The Journey To a Customer Centric Business
Experience Design: At Stage 2, the customer experience is formed through systematic, on-going improvements like usability testing and channel metrics.
Initiatives are sporadic, siloed, and give rise to uneven customer experience across channels. Imagine the bank whose advertisements promise no hassle, but opening an account is a long and arduous process with endless forms full of complicated legalese. The customer service might be good at your local branch, but if you go to the one in the next town, it’s inconsistent. Your business and personal accounts may not be connected, and the web site takes a few minutes to sync up with any transfers you’ve made on the mobile app. Each channel is trying to be its best, but the customer experience is hardly consistent across touch points.
STAGE 3: THECUSTOMERISUNDERSTOOD
Insight: Businesses in Stage 3 understand the met and unmet needs of their customers, and use those needs to help identify new business opportunities. Customer needs are disovered in sustained qualitative customer research focused on drivers of behavior.
Culture: A prevailing “internal customer” service culture typifies Stage 3 businesses. Employees treat each other as customers, striving to provide superior service internally, and business performance is measured on customer satisfaction and behavior.
UK sandwich chain Pret-a-Manger
famously sends all candidates (regardless of the post applied for) to a store to work a six-hour day; the store’s employees decide whether to keep them or not. In fact, a candidate for chief financial officer exited the recruitment process based on feedback from an in-store team. This ensures that Pret-a–Manger hires and keeps motivated, customer focused staff.
Experience Design: At Stage 3, the key drivers of positive experiences are actively managed. The most important moments in the customer experience, those things that are critical to quality for customers, have specific performance objectives and are tracked.
The vast majority of companies do not make it beyond Stage
3. Of course not every business can have passionate customers, but every business can make a strategic decision to improve their
existing customer focus.
STAGE 4: THECUSTOMERISENGAGED
Insight: At Stage 4, customers provide immediate feedback about their experiences. The objective is to then feed real-time, actionable customer intelligence to all decision makers in the organization. Businesses in this stage quantify and measure the customer experience, and priorities are set accordingly. Culture: Employees understand their role in the customer context and are empowered to act accordingly. If they see a problem, they know how to solve it and don’t have to
Stage 5 companies
tailor their products
and experiences to a
customer’s specific buying
patterns rather than a
general demographic like
Soccer Moms.
12 ART & SCIENCE ART & SCIENCE 13
14 ART & SCIENCE
Richard Hamerton-Stove is a Principal in the Financial Services practice of Infosys. He has worked in and around technology since Netscape Gold, in both the US and Europe, delivering large-scale, customer-facing Internet programs.
Richard joined Infosys following a stint as a board director and independent contractor. Previously, he was a strategist at leading digital design agency, LBi.
Richard holds an honors degree in economics from St. Andrews University (pre William and Kate), and is interested in changing customer behavior.
Rob Ballantine is a Principal in the Retail, Consumer and Life Sciences practice of Infosys. Rob has over 14 years’ experience in user-centered design of advanced technology. Rob has a proven track record of translating business needs into usable solutions in all kinds of diverse applications, from banking systems to armored vehicles. His experience prior to Infosys includes senior positions in global enterprises and digital agencies. Rob holds a BSc (Hon) in behavioral science from University of Abertay Dundee, and an MSc in ergonomics from Loughborough University. He is a sought-after speaker at international conferences on customer experience and technology.
About ROBERT BALLANTINE
About RICHARD HAMERTON-STOVE
by Robert Ballantine and Richard Hamerton-Stove
S earch history, page views, ad performance, conversion rates, click-throughs, social sentiment, location awareness, demographics – we are up to
our ears in information about customers, in fact are on the hunt for more, yet we hardly know how to make sense of what we’ve already got.
The amount of available customer information is increasing at near exponential rates. Zettabyte, anyone? There is near universal agreement among executives that there’s gold in Them Thar Hills. But, despite all the hype and potential, Big Data is right now more of a Big Nightmare. We don’t have time to filter it, analyze it, or read it, and we’re not making good use of it.
by Duane Lyons and Rajeev Nayar
16 ART & SCIENCE
Big Data: Embracing the Elephant in the Room
ART & SCIENCE 17
Welcome to the wonderful world of Big Data – where data sets have grown so large and complex, they defy traditional analysis, but still tempt us with the possibility of game-changing insights (and hundreds of billions in sales).
HOW DID WE EVEN GET HERE? The explosion in data—and its business value—is owed to three recent phenomena:
• Rapidandrelentlessinnovationsinconsumertechnologies (smart phones, location-aware devices, tablets, and gaming systems) that allow companies to interact with consumers over a plethora of touch points;
• Theriseofsocialmediacommunitiesandforumswhere
consumers disclose (inadvertently) a wealth of information in structured and unstructured ways; and
• Advancesinanalyticsandcomputinghorsepower:Evolving algorithms running on ever cheaper, more powerful hardware can rapidly convert garbled reams of data into personalized marketing in real-time.
WHERE DO WE GO FROM HERE? In order to manage all the chaos brought on by these advances, and go from Big Data to something more like Big Easy, we recommend clients reign in the hype, and take a practical inventory of the data they already have, using something like our IntegratedCustomerIntelligenceFramework (on the next page).
BIG DATA
Embracing the Elephant in the Room
1,000,000,000,000,000,000,000bytes
1,000,000,000,000,000,000bytes
1,000,000,000,000,000bytes
1,000,000,000,000bytes
The world of electronically stored data topped 1.8 Zettabytes, or 1.8 Trillion GBs, in 2012.
Who wants to sort through all this?
The Digital Universe
1,000,000,000bytes
1,000,000bytes
1,000bytes
ZETTABYTE
EXABYTE
PETABYTE
TERABYTE
GIGABYTE
KILO-BYTE
MEGA-BYTE PURCHASE
BEHAVIOR
APPS
VIDEO
SENTIMENTANALYSIS
SENTIMENTANALYSIS
GEOTRACKING
GEOTRACKING
AUDIO
VIDEOAUDIO
PICTURES
MUSIC
PICTURES
NEWSCLICKS
FILTERINGPAPERSBIRTHRECORDS
DEATH
CENSUSD A T A
RECORDS
MAPS
SEARCHENGINES
INVENTORY& SHIPPING
PERSONALLOCATION
DATA
COLLABORATIVE
ERP
CRM
INTERNET
WORLDWIDE WEB
POINT OF SALE
BI
DATAWAREHOUSE
BOOKMARKSfavorites
BROWSINGHISTORY
SMARTPHONEANALYTICS SMART
PHONEANALYTICS
SPOTPATTERNS
LIKES PINS
TWEETS
DEMOGRAPHICINFORMATION
INTEGRATED CUSTOMER INTELLIGENCE FRAMEWORKThe point of our framework is to help get a handle on all the data by categorizing it in four simple groups. It’s not about collecting data for the sake of “owning” more information than your nearest competitor -- it’s about identifying what you currently have access to, and what you might be able to combine it with, to get to Insight.
1 INTERNAL CUSTOMER DATAFor many organizations, just being
able to consolidate, filter and leverage the customer data they already collect is a daunting challenge. Most of this data is either provided by the customers themselves (e.g. profile data, customer care data), or gathered from observing their behavior (loyalty, purchase history, browsing behavior, click-throughs, cart abandons, etc.).
But the advantages for successfully mastering internal data alone can be enormous. CVS/Caremark launched ‘Pharmacy Advisor’ to improve the living conditions of Pharmacy Benefit Management (PBM) plan members with conditions like diabetes. The negative impact for diabetics who do not take their medication as prescribed can be costly and catastrophic.
Because CVS/Caremark was able to recognize each PBM member across their multiple touch points, analyze their prescription history to spot non-compliant members, and leverage their retail Rx locations for customer
consultations (all while still complying with HIPAA), CVS was able to leverage internal ‘big data’ to improve the living conditions of PBM members and differentiate itself in the marketplace to win new PBM clients.
2 EXTERNAL CUSTOMER DATAExternal customer data, which
can be purchased or gathered through primary research, often provides a deeper understanding of specific segments of customers or prospects for acquisition, cross-selling, service, and retention opportunities. Firms like Dun & Bradstreet, Experian, TARGUSinfo and Nielsen can now provide real-time financial and demographic data that can be incorporated into enterprise customer relationship management (CRM) and sales force automation (SFA) systems. This data may be aggregated from shopping websites, panels or surveys, product usages data, and user log-in demographics.
A sample third party audience might be women, ages 18-24, living in Cleveland, who have demonstrated the intent to purchase a new car.
Of course this allows for more targeted prospect lists and hopefully higher response and conversion rates. But it can also be used in new ways, like real-time call center sales. Let’s say a prospect rings your call center for product information. How will the customer service representative (CSR) distinguish between a high net-worth private banking prospect, and a lower income prospect whose needs are less complex?
Combining a simple unique identifier like the caller’s phone number with well-segmented external data, routed to the right person at the right time, can help CSRs provide a much more targeted
18 ART & SCIENCE
To go from Big Data to
something more like Big Easy,
we recommend clients reign in
the hype, and take a practical
inventory of the data they
already have.
by Duane Lyons and Rajeev Nayar
IntegratedCustomer
Intelligence
InternalCustomer Data
DeviceData
ExternalCustomer
Data
SocialData
Customer Relationship Management Systems
Loyalty Programs
Customer Profiles
Purchase Histories
Customer Care Systems
Demographics
Telemetry
Global Positioning Systems
Near Field Communication Protocols
User Generated Content
Ratings & Reviews
Discussion Forums, Suggestion Forums, Q&As
Facebook, Twitter, foursquare, Google+, Pinterest, LinkedIn, Instagram, Quora, etc.
ART & SCIENCE 19
Big Data: Embracing the Elephant in the Room
experience—and, at the same time, increase the odds of conversion.
External data is a good place to start, but it can be expensive and should be tested. You want to make sure it is reliable, up-to-date, uses unique user IDs, and that it can be delivered to you swiftly, through cookies or a digital marketing platform.
3 SOCIAL DATAMost B2C companies today have
some kind of internal social capability on their website, and these can be structured to capture very granular information about each customer.
Examples include ratings and reviews (Amazon), support forums (Microsoft Answers), customer input or design forums (Dell’s IdeaStorm or NikeID), and user-generated content (Doritos’ Crash the Superbowl contest).
The advantages of this kind of data collection are that the company can target a very specific customer or product; the company controls the Terms and Conditions of the collection process; and the company can impose a degree of structure on the data not possible with external social data, including mapping it to existing internal customer records. The disadvantage is that consumers may not be as willing to participate in sponsored activities.
On the other hand, virtually all B2C companies, whether they track it or not, are the topics of external social media content: in blog posts, third party review sites, foursquare check-ins,
Facebook comments, tweets, etc. These conversations among your customers are there for you to mine for insights into product design, promotional targeting, product positioning, PR, and customer service.
Whether social data comes from an internal or external source, it can provide insights into customer sentiment, influencer identification, predictive analysis for demand planning and logistics, proactive customer service, and collaborative design.
4 DEVICE DATAGathering data automatically from
a customer’s device is an old idea that has become phenomenally powerful with recent advances in technology coupled with customer adoption of new devices.
Given the prominence of smart phones and mobile computing devices, drawing insights from location awareness and near field communication data are big opportunities that companies are just starting to effectively pursue.
One less frequently discussed area that we think holds perhaps even greater promise is the area of device telemetry, which involves a digital device transmitting data (usually wirelessly) to a central database for analysis and action. Think, for example, about your family car. The auto makers own a platform to collect and store data points pertaining to vehicle performance. They have full control over the data collection; they simply need their customer’s permission to use it for marketing and selling.
One of our major automotive clients estimates that approximately 1 TB of basic vehicle data – information about the state of the vehicle’s operation at
20 ART & SCIENCE ART & SCIENCE 21
by Duane Lyons and Rajeev Nayar Big Data: Embracing the Elephant in the Room
ignition on/off – is transmitted from its telematics-equipped cars every day—so clearly we are talking about very “big” data, especially since cars with this functionality represent only a fraction of the total vehicles in operation.
The data being transmitted today is fairly mundane, but still offers significant value to both the customer and the OEM. For example, total vehicle mileage and time between scheduled maintenance visits can be used to issue reminders and send promotions right to a vehicle’s information center. Engine warning data could trigger a proactive call from the dealer.
It doesn’t take much imagination to see how the less mundane data already residing in car systems could provide even more value:
n Vehicle entertainment system data can be used to target promotions for downloadable audio and video.
n GPS data could be mined for customer behavior insights, to target promotions along frequently traveled routes. This information could be analyzed in combination with vehicle data, to suggest an available maintenance appointment at a time when the customer is typically in the dealer’s vicinity.
n Aggregate “vehicle in service” data could be analyzed to identify potential mechanical defects (with, say, a new model) before they become a PR concern or danger.
BRINGING IT ALL TOGETHERThe “nirvana” state entails a fully integrated view of all four of these customer data areas: all the personal information a customer has ever provided, along with her browsing habits, purchase history, what similar customers buy, her travel habits, location history, what she’s discussing on social sites, and potentially one day, even the clothing brands she likes, as recognized in her social media photos.
Of course, this nirvana state doesn’t yet exist, though the hype would have you believe you should have been there
yesterday. What we are seeing is that our most pioneering clients are
finding significant value by combining just two or
three data sources. Some examples:
A large credit card company is combining client profile information
(interests, preferences) with
location-based data where a card is being used to allow preferred merchants to make special offers to customers in real time, while a transaction is being executed.
A large financial services company is developing a solution that combines customer profile information and information extracted from online behavior to determine the “next best action” for each individual.
Say a customer is filling out a 529C form to start a college fund for his kid but abandons the process mid-stream. The financial service company can see this interaction, verify from his profile
Conversations among
your customers are there for
you to mine for insights.
that he does have young kids, and then analyze his social media interactions to determine that he is worried about his children’s future. Based on this analysis, the company might determine that the next best action for this customer is a phone call, offering a personalized planning session to help him think through his situation.
One of the largest players in online gaming is using customer profile information combined with in-game customer behavior to personalize the gaming experience for each player. They offer weapons and other add-on items based on an individual’s profile, gaming history, and in-game behavior.
Integrating customer data from two channels is challenging enough technically, and becomes more complicated when privacy concerns come into play. However, we believe the compounding effect of integrating data channels will yield business benefits so promising that solving the technical challenges and privacy concerns will be incredibly worthwhile.
MAPPING YOUR JOURNEY Odds are you are already dealing with data from all four of these channels in some capacity—and if not, you soon will be. But when do you reach the nirvana of integrated customer intelligence?The answer is: it depends:
n Where are you today? What data channels are you currently leveraging? What level of integration have you currently attained? How mature are the processes and technologies you have in place to gather, integrate, and analyze data from each of the channels?
n Where are your customers and competitors today? Take a hard, sober look at each channel—even if some of them seem far-fetched for your business—and figure out how your customers and competitors use them.
n Where are your customers and competitors going? Take an even harder, more sober look at the future to evaluate how the customer and competitive landscape might evolve in each channel over the next 2-3 years.
Remember that while pure nirvana might be integration of all four channels, based on your above analyses you can (and should) prioritize integration efforts based on ROI.
Do this by evaluating the business benefit (increased revenues, decreased costs) of each potential integration scenario, as well as the cost of implementing the integration. Consider whether there are opportunities to use third party services or to outsource to achieve your goals.
22 ART & SCIENCE ART & SCIENCE 23
Duane is a Partner in the Financial Services practice of Infosys with 20 years’ experience in customer operations and business intelligence. He acts as a subject matter expert on ‘customer-centric’ data solutions.
Prior to joining Infosys, Duane led the business intelligence practice of Inforte. He is a frequent speaker at national and regional marketing conferences.
Duane is a past chairperson of the Database Marketing SIG of the Chicagoland Association of Direct Marketing.
Rajeev Nayar is an Associate Vice President in the Big Data practice of Infosys.
He has over 18 years’ experience in information management and has pioneered many innovations in Big Data at Infosys. His key areas of focus are Big Data analytics and Extreme Data processing, which deals with large-scale data solutions.
Rajeev’s work spans multiple verticals and has helped guide the development of a patent pending solution called the eXtreme Data Hub. He has presented at a number of conferences and co-authored a book on Big Data called BigDataSpectrum.
About RAJEEV NAYAR
About DUANE LYONS
by Duane Lyons and Rajeev Nayar Big Data: Embracing the Elephant in the Room
You may, for example, find significant value in relatively simple integrations—like accessing social data via a service like Facebook Connect, and analyzing it in combination with your own customer profile data in order to target highly personalized offers.
The point is not to reach integrated customer intelligence nirvana tomorrow,
but to work toward the right capabilities in a systematic, realistic, and business value justified way.
Given the value our clients are seeing through the integration of just a couple data sources, we advocate a practical approach to integrating the data you already have as the best first step.
The nirvana state entails
all the personal information a
customer has ever provided,
along with her browsing
habits, purchase history,
what similar customers buy,
her travel habits, location
history, what she’s discussing
on social sites, and even the
clothing brands recognized in
her social media photos.
S amah, the marketing head of a prominent Egyptian cosmetics company, looks at the results of her latest social media outreach campaign.
She’s trying to figure out what new products she should introduce to the growing number of working women in the Middle East. So far, her campaign has been a grand success, receiving more than 10,000 responses, and she has selected five ideas for product development.
by Jack Keen and Farhan Elias
24 ART & SCIENCE
7 Common Mistakes That Kill Social Media‘s Value
ART & SCIENCE 25
But Samah decides to go further, hiring an analytics firm that specializes in unstructured data. The insights gleaned from the comments will help her not only develop the new products, but also market, package and brand them. A year later, Samah’s brand is the most preferred in the region, and has increased market share by 8%.
Samah’s program was a success. She initiated it, got the feedback she needed, and analyzed the data to further refine her marketing efforts.
But not all companies have had such positive experiences with social media. Some have had it forced on them by customers who start talking about them “behind their backs” on Facebook and Twitter, Get Satisfaction, or even “The Ripoff Report.” Those companies then go into rapid response mode, throwing unplanned efforts at the social media wall, just hoping something will stick.
Social media is far too important for enterprise survival (never mind success), to be so unplanned or misdirected. So how does an enterprise get involved in ways that create shareholder value, address the problem of approaching disruptors, and address actual customer needs?
It’s uncharted territory, and not a lot is known about what will work and what will not for a specific enterprise. But mistakes in such a transparent medium are costly; they can not only cause you to lose value from your campaigns, they may even cost you customers.
Here are some of the social media investment mistakes we see most often – a what NOT to do list.
THE 7 MOST COMMON MISTAKES THAT KILL ROI
1Inadequate Business Case
Companies often seem to hop on new tools like Pinterest or Google+ without giving any thought to what their business case should be.
That will trip you up every time. Spending some time establishing the objectives for your program will tell you how to engage with the public, and which shiny new features will contribute the most value.
A lot of companies have Facebook pages and Twitter accounts, but do they know why? Who they’re trying to reach? What kind of interaction are they trying to provoke? How that interaction might lead to value? Nope, they’re just trying to rack up followers.
Our advice: think through the business case, and then focus your efforts so they maximize business value. We recommend using a ValueDiagramfor this (see example at the end of this article). A Value Diagram will create line of sight from the initiative you’re engaged in to the operational levers you’re looking to transform, and the business value you are hoping to create.
7 COMMON MISTAKES
That Kill Social Media‘s Value
Social media is far
too important for enterprise
survival (never mind success),
to be so unplanned or
misdirected.
Companies often seem
to hop on new tools like
Pinterest or Google+ without
giving any thought to what
their business case should be.
2 A Social Media Presence that is Rather Antisocial
A lot of companies design things like Facebook pages that are just a one-way monologue with customers. Instead of asking questions and engaging customers, the company just spews out advertisements and marketing messages.
Let your advertising do this kind of one-way communication; your social media presence should be interactive. In fact, not only should your social media efforts be interactive, they should allow customers and prospects to give input into a social campaign’s functionality. Design it with them if you can.
Scott Monty, a forward-thinking social media manager at Ford, sponsors conferences for bloggers so he can find out what influencers think. Ford also gave 100 social media-savvy bloggers a free Fiesta and asked them to document their experiences on Twitter, Facebook and YouTube for 6 months. He knew
they could say negative things about the car, but he really wanted to learn what potential new customers would think. Guess what? It was nearly all positive.
3 Untracked Results
We all intuitively know how helpful social media can be in hiring, communicating and selling. But these benefits can’t be fully realized if they aren’t carefully tracked. The executive suite will want hard numbers, so when you launch a social media campaign, make a plan for more than just anecdotes to report your results. The key here is to translate activity statistics (likes, comments, and shares) into measurable business value (sales, more loyal customers, etc.).
Facebook has a free tracking tool, Facebook Insights, that can give you analytics on how people interact with your content on its site.
Other tools, like SproutSocial and Radian6, for example, can measure the reach and impressions of your social media efforts.
4 Soft Benefits Are Ignored
Even though numbers are important, you shouldn’t totally exclude the “soft stuff” from your social media cost-benefit calculation.
Improved customer sentiment, often hard to quantify, has enormous benefits because it’s so expensive to acquire new customers. A customer who consistently interacts with your brand through social media is telling you something about customer sentiment.
Similarly, strongly-worded negative feedback from customers on social media sites may be hard to hear and hard to quantify, but it is an extremely important indicator for your business, and this kind of unstructured data shouldn’t be ignored.
Starbucks has a site called MyStarbucksidea.com, where customers can post their ideas for making Starbucks better, and can vote other customers’ ideas up and down. Starbucks culls through them to choose among potential new products and services.
This use of unstructured customer data to promote both customer loyalty and contribute ideas to product development is not unlike the story of Samah with which we began.
5 Lack of Centralized Accountability
Value rarely emerges from any investment unless someone is made responsible for making sure it happens. In the enterprise, the rush to be seen on social media platforms has led to an abdication of accountability and scores of oars rowing in different directions with no destination in mind. Make one person responsible.
Hire (or assign) a director of social media who has defined goals related to business value. This is another case where a ValueDiagram(see example at the end of this article) can come in very handy; it will create line of sight to corporate business objectives and keep your social media director focused on the right goals and activities.
6 Data Collected is Not Used
The best thing about social media is its ability to generate large amounts of useful data about customers. For example, who’s using your app? How often do they visit? If you don’t take the data you collect, analyze it, and put it to use, you will never get a defensible return from social media investments.
If you have a retail location, chances are customers are checking into it on foursquare and leaving tips for their friends. Do you look at those tips? Do you know who checks in to your store on foursquare? Are you rewarding frequent visitors? Can their check-ins at other stores teach you something you may not have known about your target demographic?
26 ART & SCIENCE ART & SCIENCE 27
by Jack Keen and Farhan Elias
A customer who
consistently interacts
with your brand through
social media is telling you
something.
7 Common Mistakes That Kill Social Media‘s Value
ANTISOCIAL PRESENCE
UNTRACKED RESULTS
NO CENTRALIZED ACCOUNTABILITY
DATA COLLECTED ISN’T USED
NO BUSINESS CASESOFT BENEFITS ARE IGNORED
MISDIRECTED FOCUS
The best thing about
social media is its ability to
generate large amounts of
useful data about customers.
7 Misdirected Focus
This can take many forms, but some examples include the inability to distinguish between the relative importance of people who “converse” about a firm’s products versus those who actually “engage.” If they’re just talking about your brand but not engaging, maybe they’re not worth your time.
For example, the new visual social site Pinterest is a good way to reach a female demographic. The value of Pinterest is in the way information travels from person to person via “re-pinning.” If you have pinboards on Pinterest, and no one is re-pinning them, perhaps they aren’t worth maintaining. Or, if a fair amount of people talk about your brand on Twitter, but none of them are target customers, should you bother monitoring their conversations?
Another potential focus issue is around new technology. In today’s world, this could mean an overreliance on desktop social media, and overlooking the increasing power of mobile.
Chase Bank was one of the first to invest in a mobile app that allows customers to take photos of checks and deposit them by mobile phone. But some of America’s other leading banks have not invested in that functionality. Eventually, a noticeable number of customers will likely gravitate to Chase simply because it is responding to the customer desire to do everything over a smartphone.
KEEPING ROI ALIVEThese are seven of the most
common mistakes that decrease returns from social media investments.
Social media is exciting, but it can
also be scary. No one wants to be hit with
a barrage of customer complaints the way a well-
known financial institution was on Twitter when it announced a
new debit card surcharge. And nobody wants to invest a lot of money without making sure it pays off.
This means the #1 most important thing you should do is spend far more time on planning and articulating a path to value, and then integrating all your campaigns under a common set of objectives. By approaching it carefully, and avoiding some of the common mistakes, your social media efforts can deliver their intended value.
28 ART & SCIENCE ART & SCIENCE 29
by Jack Keen and Farhan Elias 7 Common Mistakes That Kill Social Media‘s Value
Jack Keen is the Value Analytics Leader in Infosys’ Organization Transformation practice. His 21 years’ experience as a value realization consultant includes leading change management engagements on five continents.
His book of value realization best practices MakingTechnologyInvestmentsProfitable: ROI Road Map from Business Case to Value Realization (John Wiley & Sons, 2011) has been praised by key media, sold worldwide, and adopted as a textbook.
Jack holds an MBA from Harvard Business School and an Industrial Engineering degree from Stanford.
Farhan Elias is a Lead Analyst at Infosys.
A finance professional who became enchanted with the more qualitative aspects of businesses strategy and transformation, Farhan is a member of the Institute of Chartered Accountants of India, and has passed all levels of the CFA program.
He received the Infosys Award for Excellence in 2011, in the Innovation - Initiatives category.
About FARHAN ELIAS
About JACK KEEN
SEE VALUE DIAGRAM ON FOLLOWING PAGE
OPERATIONAL LEVERS CHANGE INITIATIVES
SOCIAL MEDIA VALUE DIAGRAM
INC
RE
AS
E S
HA
RE
HO
LDE
R V
ALU
E
What needs to transform and how can it be measured?
Where will valuebe created?
How should the transformation be achieved?
SOCIAL MEDIA STRATEGYAnalyze and recommend approach for
presence on social media channels
SMS
INTEGRATED CLIENT DATA MANAGEMENTIdentify, extend and augment existing customer
master data with social data elements
ICM
SOCIAL CRMAnalyze and augment existing CRM with
information from social channels (e.g., Twitter)
SCR
SOCIAL ANALYTICSCreate data marts to store and report structured
and unstructured data from social channels
SAN
SOCIAL CAMPAIGN MANAGEMENTCreate promotions and campaigns for existing
and new clients based on social insights
SOCIAL iOSIntegrate social networking capabilities within
iOS apps to provide easier access
SOS
SEARCH ENGINE OPTIMIZATIONImprove visibility to website through
backlinks in social channels
SEO
RATING / REVIEW WEB APPLICATIONImplement rating and reviews on products,
content, etc. from user community
RRW
INTERNAL COLLABORATION - INTRANETProvide forums to share critical info, providing
access to info, facilitating innovation, etc.
ICI
MARKETING: Increase Awareness, Grow Sales & Take Market Share
SCMICMSANSLDSCMSEOSOS
Identify market trends faster
Leverage competitive intelligence
Multiply campaign effect
Increase brand awareness & promotionsIncrease client loyalty
Increase cross sell & up sell
Gain share via market intelligence
Expand Salesto Current Clients
Increase NewClients
ICI
Improve workforce engagement
Reduce onboarding and ramp-up time
Empower individual productivityImprove workforce performance
Improve employee time-to-productivity
Increase workforce attraction
SANSCM
Accelerate research and idea quality
Leverage market insights for innovationImprove results from R&D
Accelerate time-to-revenue
SCMICMSANSLDSCMSEO
Generate leads faster/increase pipeline
Reduce cost per lead
Grow sales through social channels
SCM
Improve reputation
Engage public in topics of interestMonitor & engage investors/community
ICMSCRSCRSLD
Reduce issue resolution time through knowledge reuse
Reduce incoming call volume
Increase client service satisfactionBuild client trust & loyalty
SCM
Improve access to research capabilities(blogs, whitepapers, videos)
Enable faster purchasing decisions
INC
RE
AS
E
RE
VE
NU
ER
ED
UC
E
CO
ST
SIN
CR
EA
SE
BR
AN
D V
ALU
E
ReduceCorporate
Operational Costs
SALES: Grow Sales
B2B: Educate Business Partners
PRODUCT DEV: Align Innovation with Market Demands
CLIENT SERVICE: Provide Consistent Client Support at Reduced Cost
HR: Attract, Engage & Retain Workforce
PR: Establish & Maintain Positive Online Reputation
Increase Employee
Satisfaction
ImproveCorporate Image
Faster Launch of New and Relevant
Products& Services
VALUE LEVERS
SCM
SOCIAL LISTENING DASHBOARDCreate dashboards on key topics like
sentiment analysis, discussion topics, etc.
SLD
IncreaseEmployee
Productivity
Lower support costs
MAKING THE BUSINESS CASEWe recommend all our clients approach social media by creating a Value Diagram, a component of Infosys’ Value Realization Method (VRM)tm. This kind of analysis helps them get crystal clear on where and how value should originate from each social media investment.
On the right of the diagram are all the potential Change Initiatives that could possibly be funded (in this case, they are all investments in social media).
In the middle are Operational Levers – the ways these initiatives would improve business operations.
On the far left are Value Levers – the high-level financial payoffs expected when you pull the operational levers.
Reading from right to left, the path will reveal how, by investing in a Social Listening Dashboard, stakeholders would expect outcomes like reduced issue resolution time, reduced call volume, or increased client satisfaction.
These operational improvements would result in lower support costs and improved client trust and loyalty. And these benefits would trigger reduced corporate operational costs, increased employee productivity, and faster launch of new products.
Finally, shareholder value improves via increased revenues and reduced costs.
T raveled lately? Chances are you have. And chances are you’ve used a few of the popular mobile travel apps to make your trip planning easier. Maybe
you used Kayak, Orbitz, Travelocity or Expedia to find the cheapest or most convenient flight across all airlines, and book reservations. And then turned to SeatGuru to find the perfect, 180-degree-reclining exit row aisle seat. Maybe you used Hipmunk, Jetsetter, TripAdvisor or Priceline to find a hot hotel at a discount. And perhaps TripIt told you when your flight was delayed or your gate changed.
by Heidi Lamberts and Steve Orr
32 ART & SCIENCE
Mobile Strategy: Finding Value in Apps
ART & SCIENCE 33
Every frequent traveler has at least one travel app on his smartphone. But did anyone notice how few of these apps are actually built by the travel providers?
How did that happen?
It’s a cautionary tale of finite resources, legitimate choices and steep trade-offs. And it’s worth studying for anyone considering a mobile strategy.
TRAVEL TALESIt’s no secret the travel industry operates in extremely difficult circumstances: a depressed economy, a long-term dip in bookings post-September 11, volatile fuel prices, high capital requirements, and an ongoing battle against commoditization.
Against this backdrop, the industry had to plot a course in the new frontier of mobile.
Most, in this environment, would choose features that could immediately create revenue or reduce costs, and the airlines did just that: they pursued mobile apps that mirrored their websites, and were largely transactional.
They sprinkled in a few pre-flight services that would save costs, like mobile boarding passes and mobile booking, check-in, and seat selection. Initial estimates of savings from the mobile boarding passes alone are north of $500 million.
But the airlines missed other, critical opportunities to connect with customers in many areas of the travel experience.
And this left the field wide open for third-party app developers, nimble start-ups, and other industry players to jump into the void.
They started aggregating data, storing preferences, showing ratings and reviews, and using location-based services to deliver personalized recommendations and offers directly to customers.
These apps
now provide a
lot of the services that travelers
desire.
One could easily argue that the
airlines, having long-standing relationships with other travel businesses, were in the perfect position to offer “travel concierge” services throughout the entire customer lifecycle. Now, the disruptors have come in and begun to play much of that role. Airlines and other traditional travel industry providers are left to play
MOBILE STRATEGY
Finding Value in Apps
At every stage in the
Customer Experience Lifecycle,
you have a chance to gain or
lose loyalty. In a world of finite
resources, you must have deep
insight into where the most
loyalty is generated so you can
prioritize investment.
catch up in many areas, having ceded quite a bit of control over the end-to-end travel experience.
AIRLINES ARE NOT ALONEOf course, travel-related businesses are not the only ones to fall victim to disruptive mobile start-ups. Banks and wealth management firms are also struggling to maintain a primary relationship with their customers.
Consumers are turning to their mobile devices 3 times a week for financial information vs. only 2 times for online banking services. This distinction will only become more acute as younger consumers mature, enter the market and increasingly rely on a mobile device as their primary computer.
Apps like Mint, Pageonce, Yodlee, Adaptu, and HelloWallet all provide a consumer’s complete financial net worth, ways to track cash flow, bill payment reminders, and electronic bill payment. They also provide some services traditional banks have ignored: cost-saving tips based on analysis of your transactions, and digital wallets that allow users to pay for services using their smartphone, thus eliminating the need to carry credit or loyalty cards.
THE EXPERIENCE LIFECYCLEThe lesson for all industries? At every stage in the CustomerExperienceLifecycle(below), you have an opportunity to gain or lose loyalty. The key is to analyze customer behavior with a wide lens, and make sure you understand all aspects of how your customers make decisions.
Mobile Strategy: Finding Value in Apps
34 ART & SCIENCE ART & SCIENCE 35
by Heidi Lamberts and Steve Orr
If you only focus on improving existing transactions or specific features, you may miss opportunities to extend your services into a more comprehensive set of offerings that cover more of the lifecycle and satisfy more customer desires.
So when developing your mobile strategy, reevaluate your Customer Experience Lifecycle, including the times before and after customers encounter your business. Run through a myriad of user stories and brainstorm new interactions at each point of the lifecycle.
Then, try to identify where loyalty is generated. What are the most important moments in the experience for customers? And when are their peak mobile usage moments? Where can you cement loyalty? Answers to these questions will help you brainstorm ideas and decide where to focus.
For example, a deep-discount airline competing on price generates loyalty in the purchase phase (“shop and buy”). Its app should focus on finding customers the absolute cheapest rates on flights, and maybe offering deals on airport parking, restaurants, car rental, and hotels.
On the other hand, a relationship-focused airline should use its app as a forum for enhanced interaction: help the customer not only book a flight and hotel based on previous purchases, but also find underground gems, see friends’ top-rated restaurants, and recommend clubs, performances or other attractions based on previous behavior or current city.
Customers would be able to book events inside the app, and also review them. The app then becomes a companion throughout the entire trip. Understanding where engagement and loyalty are created is the first step in solidifying your mobile strategy. The next step is ensuring mobile delivers value.
LINE OF SIGHT TO SHAREHOLDER VALUESo you’ve examined each stage of the customer lifecycle to determine how mobile can best engage customers, and you’ve probably found more opportunities than you have the budget to pursue. How do you decide where to best invest your limited funds?
We recommend creating a ValueDiagram. And this is where the “rubber meets the tarmac”—where customer-engaging
mobile initiatives are vetted for their true business value.
A Value Diagram (following page) is an invaluable tool because it forces a conversation about the key drivers of shareholder value, the operational levers that enable them, and the metrics associated with each lever.
This Value Diagram shows, at a high level, the customer and company value components that may have influenced the decision to develop mobile boarding passes.
As you can see, the benefits that accrue from mobile boarding passes stem––for the company––from the three levers that
FrequentFlyer.
TRAVEL PLANNING & PURCHASESearch/Purchase ExperienceTravel Package OptionsPricingCross-Sell / UpsellOnline Help & Advice
ABOVE THE WING PRE FLIGHT SERVICES
POST-FLIGHT / INTENT TO TRAVEL AGAIN
AWARENESS & DISCOVERY
Flight Updates and Check-inSeat SelectionMobile Boarding PassStandby or UpgradeAirport Parking, Dining
EntertainmentIn-flight DiningAmenitiesConnecting Flights
Post-flight Issue ResolutionBaggage TrackingPromotion UpdatesLoyalty Points Management
Loyalty/Frequent FlierWord of Mouth & Affiliate CampaignsOffers & PromotionsReviews & Ratings
FEEL CONNECTED
ENVISION& WANT IT
SHOP& BUY
RELAX & ENJOY THE EXPERIENCE
The Traveler’s Customer Experience LifecycleItalicized touch points: still owned by airlinesOther touch points: stiff competition from third party apps
Try to identify where
loyalty is generated. What are
the most important moments in
the experience for customers?
When are their peak mobile
usage moments? Where can
you cement loyalty? Answers
to these questions will help you
brainstorm ideas and decide
where to focus.
more loyalty? Mobile entertainment? Virtual concierge? Travel wallets?
If they have more ideas than they can handle, they can use a Value Diagram to sort through the ideas, and choose the ones that drive operational efficiency and ultimately deliver shareholder value.
Should you have to make similar bets and trade-offs, allow your organization to think creatively about new ideas surrounding the entire customer experience, and then
filter those ideas using a tool that ensures measurable value and alignment with your company’s strategy.
If you have deep insight into where value is created, and where in the customer lifecycle loyalty is made or broken, you can focus your finite resources on the areas that matter most. Then, if you have to make trade-offs and cede space to third-party disruptors, you’ll at least know where it makes the most sense to do it.
36 ART & SCIENCE ART & SCIENCE 37
by Heidi Lamberts and Steve Orr Mobile Strategy: Finding Value in Apps
Heidi Lamberts is a Partner leading the Discrete Manufacturing practice for Infosys.
Heidi works closely with clients during strategic visioning, business case development, process development, communication and change management planning. At Infosys, she has developed corporate, operational, and eCommerce strategies, redesigned organizations, reengineered processes, and developed Infosys’ business transformation framework and QA process.
Prior to joining Infosys, Heidi worked in PricewaterhouseCoopers’ management consulting practice and at iXL. She began her career at Mercer Management Consulting.
Heidi holds an MBA from the University of Michigan and a BA from Northwestern University.
About HEIDI LAMBERTS
Steve Orr is a Principal in the Energy, Communications and Services practice of Infosys. Steve has extensive experience in the travel and leisure industries, with over 25 years in a marketing and consulting capacity. He has worked in strategy and change leadership on custom application initiatives for major airlines, hospitality and travel-related firms worldwide. He specializes in the area of sales, marketing and operational related systems, with an emphasis on customer experience. Steve holds a Masters in Management degree from Northwestern
University and an undergraduate degree from Brown University.
About STEVE ORR
create shareholder value: increased revenue, reduced cost and reduced working capital.
What makes the case for mobile boarding passes truly compelling, however, is the benefits they provide to the customer: time savings, increased convenience, and reduced spend. On both sides of the equation, the real insights come from the levers, metrics, and the pathways for each value driver.
MOBILE STRATEGYHOW YOU CAN USE THESE TOOLSGoing back to our mobile boarding pass example, to determine if this feature is worth implementing, an airline would analyze the payback. The airline would need to determine which operational levers are impacted by this capability, and how those levers positively impact shareholder value.
By applying specific metrics to each of the operating levers, quantifiable value can be determined, and thus ROI effectively measured. In the case of the estimated $500 million in annual savings from mobile boarding passes, that figure may only factor the print cost savings and may not even reflect the additional shareholder value
created through, for example, increased customer satisfaction.
As you identify new app ideas, map them on your Value Diagram to ensure they provide both value to customers and value to the enterprise. Remember, benefits can be measured through customer satisfaction scores, loyalty ratings, revenues, cost savings and many other metrics.
WHAT CAN WE LEARN FROM THIS TRIP?After 9/11 and the Great Recession, the airlines were buffeted from every angle by business interruption on a unique scale. No wonder they chose to focus on safe investments with the most obvious business benefits. Unfortunately, a lot of third parties were happy to focus on customers’ unmet needs.
But there’s good news. In the dynamic world of mobile apps, there are always new opportunities. Going forward, travel suppliers have an opportunity to develop (or refresh) their Customer Experience Lifecycle to see where openings exist to create customer delight. Where can they generate
VALUE DIAGRAM: MOBILE BOARDING PASSES
PO
SIT
IVE
EX
PE
RIE
NC
E =
CU
ST
OM
ER
VA
LU
E
FR
EE
CA
SH
FL
OW
=
SH
AR
EH
OL
DE
R V
AL
UE
CustomerPriorities
CompanyOperational
LeversCustomer
Loyalty LeversCompany
Value LeversChange Initiative
Avoid Counter/Kiosk Lines
Check-In Whenever, Wherever
Lower Airline Costs = LowerTicket Prices
SaveTime
ReduceSpend
MOBILEBOARDING
PASS
IncreaseConvenience
IncreaseRevenue
ReduceWorking Capital
ReduceCosts
Check-in Time
# of Check-in Options
Ticket Price
Improve Service and Increase
Loyalty
Avg Check-in Time
Increase Customer
Self-Service
% of CustomersUsing Mobile Passes
Reduce CapitalEquipment
# of Check-in Kiosksper Passenger
Sanjay Nair, a United Airlines veteran, joined the company in 1994. As head of Loyalty & CRM Technology for Mileage Plus, the recent merger of United with Continental has given him an opportunity to renew the combined company’s dedication to a one-to-one relationship with each customer using emerging technologies like mobile.
Nair started in Corporate Research and Development, then moved into Marketing & Customer Satisfaction, followed by Customer Experience. There he led the implementation of United’s award-winning messaging service EasyUpdate. He has led MileagePlus’ Marketing Operations and most recently worked on its integration with Continental OnePass.
We recently sat down with Sanjay at United’s Chicago, IL headquarters for a rare opportunity to discuss the use of mobility in the travel industry.
1Where do you believe the greatest benefits lie for mobility in the travel industry?
Revenues, including ancillary services – We begin by understanding our customers’ needs and how we can provide them offers they would value. The mobile channel can then facilitate shopping and purchasing these personalized offers, particularly when you are traveling but also pre- and post- trip. For example, you may decide that you want to make this trip memorable and want to buy extra leg-room at the last minute.
Irregular operations - Mobile solutions can provide a tremendous benefit, like communicating with customers during irregular operations. They can provide updates about delays, cancellations, re-accommodation or lost bags. We have yet to fully leverage all of mobile’s capabilities in this area.
A Conversation with Sanjay Nair, United, Managing Director Loyalty & CRM Technology, MileagePlus
38 ART & SCIENCE
Social media – This is another area that holds great potential, as it provides the ability to connect with people. For example you may be in Hong Kong and wonder who else from your network is there at the moment and can they meet you for dinner. In this fashion social media can have a business and leisure component. It builds excitement, encourages more travel, and provides another mechanism (e.g., Facebook) besides email to help you update your family and friends on where you’re traveling and what you’re up to.
The mobile channel will really get business travelers into the social media space because mobile is real time and can be seamlessly integrated with social media. In the beginning, there will be partnerships with others outside the travel community, but eventually social media will become a core part of a travel company’s offering. For example, I think there will be great demand for location-based capabilities. Start-ups are driving much of the innovation and out-of-the-box thinking in this space, but the ideas will be pervasive in a few years. People will see and understand the benefits without needing to invest in developing the pioneering solutions directly.
Customer engagement - Mobile enables engagement with customers, thereby building the brand and loyalty. We can help make travel seamless by providing mobile opt-in functions that add value, for example sending alerts regarding traffic delays to the airport, where we can leverage publicly available information. By addressing our customers’ varied travel needs we will continue to strengthen our relationship with them, keeping them coming back to United.
2Do you believe mobile solutions can impact shareholder value? If so, how?
The way to think about it is, Not having a mobile channel in 2012 is like not having a website in 2000. Absolutely, mobility is going to be critical in driving shareholder value given its ubiquity and growth. Enabling the value stream through mobile solutions builds customer loyalty and customer engagement, thereby driving shareholder value. The key is providing customers a positive engagement with the brand.
For example, how you deal with a customer during a problematic travel time will drive greater customer satisfaction than a perfect day; this is an opportunity to support “re-purchase intent.” If you handle problems poorly,
ART & SCIENCE 39
then your customer satisfaction drops sharply. Baggage tracking is a perfect example of how we can share information through mobile and remove customers’ anxiety – just by showing them where their bags are and when they will arrive.
We can enable positive engagement in other ways, too, like mobile flight tracking, or sharing itineraries to facilitate group meetings. All these are enabled by mobile.
Finally, generating opportunities that customers value, using location-based services, and providing topical, relevant, real-time customer offers can positively impact revenue and shareholder value.
3How do you measure success in terms of mobile solutions?
That is a good question, especially during difficult times when funds are scarce and companies are hesitant to make large bets on technologies that have big potential but unproven value. Is it better to be an early mover or not? Some companies churn out mobile solutions, but once they’re downloaded by the consumer, they don’t drive usage or engagement. Hence, we need to think about it more critically. And it’s important that we don’t just track obvious metrics, like the number of downloads, time spent on a website, because this can lead to incorrect conclusions. Mobile is part of the larger ecosystem and it may not be appropriate for results to be measured yet as a stand-alone investment.
Customers may engage with you via mobile but your actual revenue may be generated through a different channel. You need to measure the overall brand and the customer experience as a whole and understand how mobile contributes to it. For example, while it is difficult to measure return on investment, there is greater economic value when consumers use mobile for shopping or researching your brand.
4What do you foresee as the next wave in mobile capability?
The next wave of mobile capability will depend on demographic segments and what solutions we provide to satisfy them. Customers will be looking for richer content, less voice (telephony) communication, and more data. I foresee a few interesting developments.
40 ART & SCIENCE
First,thedevelopmentoftheeWalletspace. How we are able to make purchases, what we will carry in our wallets, the use of NFCs, QR codes, and credit cards on mobile- all of these processes and technologies will evolve. Directly linked to this trend is increased security for mobile phones. Technologies like trust icons, particularly for credit cards and payments, will increase security and make people more comfortable.
Second,location-basedservices and usage are going to be very, very important. Early entrants are shopkick, foursquare and other applications that know where you are. We see LBS already used in retail; BestBuy consumers are rewarded for checking-in and scanning products.
Finally,voicecommandscan potentially make keypads obsolete. Siri on the latest iPhone has shown us the beginning of this next wave.
Essentially, I see a convergence of channels. It is happening from web to mobile, TV to mobile, and from print to mobile. Using data to make this convergence valuable to the customer is truly exciting, particularly for achieving a one-to-one customer relationship.
5What is your vision for MileagePlus’ use of mobility?
MileagePlus’ objective is to drive loyalty, so we need to have a strong product offering that enables customers to engage with United in ways that add value to their lives. We can add value beyond just travel, like making daily purchases with our co-branded credit card. The scale of this credit card, combined with our MileagePlus program partnerships, puts us in a unique position to create a mobile payment platform (tied to the MileagePlus card). The credit card is a very important part of our portfolio, because it helps us understand customer needs, what is important to them, what they buy, and what offers we can make that they’ll actually use. If a mobile device can facilitate the purchase once you receive the promotion, and add miles to your account, it’s a win-win for everyone.
ART & SCIENCE 41
I f your company was founded before 1990, chances are you have piecemealed it into the digital world, first embracing digital for operational improvements
like more efficient marketing and customer support, and later bowing to pressure to keep up with social trends.
Nothing wrong with that, but you might notice that you have yet to achieve the supposed vision of digital: a truly connected enterprise, where resources inside and outside the company contribute to its success by sharing data across seamless vendor-employee-customer partnerships.
by Akash Bhatia
44 ART & SCIENCE
The Digital Enterprise: Reality or Science Fiction?
ART & SCIENCE 45
THE DIGITAL ENTERPRISE
Reality or Science Fiction?
Most companies believe they’ve implemented the latest digital strategies, but in fact, they are wrestling with things like greater infrastructure spending on video conferencing that no one knows how to use, outmoded collaboration tools, and unwieldy sets of customer data.
To the uninitiated, fancy conference rooms and portal implementations look pretty spiffy. But truth be told, they’re most often just a superficial digital veneer that covers up the ho-hum of business-as-usual lurking underneath.
So how do we turn the digital promise into reality? Here’s how to make those investments pay off.
1We ask all our clients to start with the highest-level
business objectives. Too many digital initiatives have been divorced from the three main objectives of any business (increase customer engagement, run efficient company operations, and improve products and services). In our haste to keep up with the Joneses, we fall prey to me-too’isms like,
“Get on Twitter; all our competitors are on.”
“We should have the latest conference room bells & whistles to attract young employees.”
“We need to upgrade to the latest intranet software.”
Fancy conference rooms
and portal implementations
look pretty spiffy. But truth
be told, they just cover up the
ho-hum of business-as-usual
lurking underneath.
IncreaseCustomer Engagement
Run EfficientCompany Operations
ImproveProducts & Services
Better Customer ServiceAllows companies to put customers in control of their time via interactions with the company on mobile apps, live chat, etc.
Employee EnablementAllows employees to do more, sooner via better tools (e.g. social collaboration, mobile productivity)
Better Products, ServicesAllows companies to improve products and services by leveraging social feedback and unstructured data analytics
Better Customer UnderstandingAllows companies to get a better understanding of customers’ & prospects’ needs via analytics
Better Operational AnalyticsAllows companies to better diagnose process bottlenecks through operational dashboard & collaboration tools
Lower R&D CostsEnables companies to reduce R&D costs through crowd- sourcing, open collaboration, and new prototyping tools like digital fabrication
Better Customer EngagementEnables companies to better serve customers across channels and leverage their enthusiasm via social media
Smoother Partner OperationsEnables companies to reduce partner operations costs via real-time collaboration tools
New Business ModelsEnables companies to create new offerings by tapping into digital data streams and new product/service partnerships
What Digital Does for the Enterprise
Those things may be true, but why are you doing them? Are you trying to impact customer engagement, company operations, or products and services? Every single thing you do should have an explicit tie to one of these three business objectives. That’s step number 1.
2Next, create a digital center of excellence that works
across the enterprise and includes the Chief Customer Officer, the COO and the CMO. Empower that digital center of excellence to think outside traditional functional roles, and give it ownership of something cross-functional, like the customer experience. The initiatives it creates should be based on clear value rather than traditional alignment to a group. The only way to make this work, and get everyone to work across boundaries, is to set up a center of excellence and have the backing of the CEO.
3And finally, get bold. A lot of companies are moving
too slowly – e.g., portal initiatives still evoke awe and careful planning, while the reality is that most employees and customers would prefer to consume business information the same way they consume personal information: via devices other than PCs. You will need to rethink sacred cows and take some risks here. Your survival depends on it.
Here are some of the ways we’ve seen the digital promise go awry, sorted by the three main business objectives, as well as some ideas for how visionaries will do it more boldly.
CUSTOMER ENGAGEMENT
BETTER CUSTOMER SERVICE
THE USUAL APPROACH:Customer service reps (CSRs) have a limited view of what’s happening in marketing, logistics, R&D – or even customer purchase history. In fact, most companies struggle to pass along to the CSR the data the customer spent 5 minutes punching into the IVR system.
THE VISIONARY APPROACH:Integrate customer service data
with sales and marketing to provide a unified view
to CSRs—even if you have to do it by scraping screens at first. Use data from customer service channels to drive ideas for products/services. Use sentiment
analysis software to monitor social forums in real-time to proactively address customer complaints, and at the same time, build relationships and the brand. Use social forums to allow customers to support each other.
BETTER CUSTOMER UNDERSTANDING & GREATER ENGAGEMENT
THE USUAL APPROACH:Understanding and engaging customers are two sides of the same coin that companies often treat separately. It usually looks something like this: a BI group generates 37 customer analysis reports that no one reads; a customer experience group designs engaging experiences, but they’re based on siloed user testing; marketing struggles to quantify the engagement achieved by
46 ART & SCIENCE ART & SCIENCE 47
by Akash Bhatia The Digital Enterprise: Reality or Science Fiction?
its campaigns; and sales has valuable customer insight that never makes its way to any of the other groups. THE VISIONARY APPROACH:Move heavily to digital; integrate analytics, reporting, sales, marketing, and customer experience.
Adopt a cohesive, end-to-end, customer lifecycle-based approach to understanding and engagement– ensure the two disciplines feed each other through governance and process, and track metrics at every stage of the lifecycle to monitor this.
Tactically: leverage cookies, customer profiles, and loyalty programs to better track the customer journey along the Suspect > Prospect > Lead > Customer > Repeat lifecycle. Identify opportunities to improve conversion rates at each step of the lifecycle; set aggressive goals, and put in place initiatives necessary to hit them.
COMPANY OPERATIONS
EMPLOYEE ENABLEMENT
THE USUAL APPROACH:Collaboration tools in place are too
hard to use (compared to their consumer counterparts). Employees work around internal policies and sanctioned tools, instead using free social tools to collaborate (e.g. Google Docs, Dropbox, Skype).
Spend on office space is higher than is needed. IT is often a bottleneck
to getting things done.
THE VISIONARY APPROACH:Outsource non mission-critical IT and go cloud-based. Pioneering companies won’t have huge in-house IT departments. They’ll allow
employees to connect to their own devices, and enable consumer internet-like collaboration.
They’ll also go office-less, or as close to that as possible, by applying usage analytics to figure out how much space an office really needs to allocate.
One thing you can do now: require every manager to justify the need to have his or her team co-located. Or, you could emulate start-ups and have all employees work in one large room – a setup that fosters cross-functional collaboration.
Pioneering companies will go even further, enabling full mobile productivity through laptops, “MIFI” cards, smartphones, and collaboration tools for everyone. Yes, everyone. And they’ll use green building technologies for lighting, HVAC, etc. to further reduce infrastructure spend (and score PR points with increasingly eco-sensitive customers and employees).
Too many digital
initiatives have been
divorced from the three main
objectives of any business.
48 ART & SCIENCE ART & SCIENCE 49
by Akash Bhatia The Digital Enterprise: Reality or Science Fiction?
BETTER OPERATIONAL ANALYTICS
THE USUAL APPROACH:While most companies focus their operational energies rightly on things like procurement and the broader supply chain, there are areas that are going untapped, like HR. Typically, HR managers are the last to know when employees are leaving. They have very little interaction with digital tools, and aren’t using social media to attract or retain rock stars. When the average cost of hiring an employee is $4000, this is a costly hit to SG&A.
THE VISIONARY APPROACH:Visionary companies are arming their HR managers in the war for talent, giving them digital tools that unearth insights in internal data as well as external, unstructured data (like emails and social media). This helps HR make better predictions in regards to quality of hires or staffing churn. It also helps find better talent, using LinkedIn or Twitter to search for skilled talent that is not actively on the market, but waiting to be poached.
SMOOTHER PARTNER OPERATIONS
THE USUAL APPROACH:Most companies have similar investments in electronic procurement and supplier exchanges. There is no differentiation except in execution.
THE VISIONARY APPROACH:Analyze invoice and payments data to identify opportunities for ‘recovery’ where you may have overpaid or double paid an invoice. Recovery audit services can save up to $1m on every $1 billion in sales. Leverage the power of global internet price transparency to find lower cost suppliers—even if you don’t buy from them, you can use them to negotiate better deals with your existing vendors.
PRODUCT & SERVICE OPERATIONS
IMPROVING R&D
THE USUAL APPROACH:
Most companies are obsessed with
incremental “continuous improvement” efforts that simply track the status quo. Or
they’ll put some high-paid scientists
in a room and hope for the best.
THE VISIONARY APPROACH:It doesn’t have to be that way. The world is now your laboratory. Minds outside your company can help come up with new ideas.
Use collaborative tools to involve customers in the R&D process where feasible. Apply unstructured data analysis to all existing customer communication channels (CSR notes, third-party forums, social sites, ratings/reviews, blogs, etc.). What insights or new product ideas can you take from those? Leverage the open source community to rethink your development processes.
Akash is a Senior Principal in the Manufacturing practice of Infosys.
He is an expert in digital operations and IT strategy, and specializes in digital business strategies, process improvement, and implementation management.
Prior to Infosys, Akash was an early employee of a software start-up (since acquired by IBM), where he helped define, market and sell portal dashboard solutions. He has graduate degrees in physics and computer science.
About AKASH BHATIA
DEVELOPINGNEW BUSINESS MODELS
THE USUAL APPROACH:Most companies have similar investments in PLM, ERP, and ecommerce systems and follow roughly the same ideation-through-sales process; there’s no differentiation; it’s just a “me too” play.
THE VISIONARY APPROACH:For suitable products, digitize everything: let customers help with ideation & selection through online collaboration forums; use web-based configurators and digital fabrication (3D printers) and to enable ‘mass customization’ of the physical products.
While 3D printing may seem too cutting edge for practical application today, it is poised to explode: industry estimates indicate that the market will grow five times in the next 10 years, and it’s
already cheap enough to experiment with for the right products. Companies that start now will have a distinct advantage not only from customer experience and operational perspectives, but eventually from an outbound logistics perspective as well. For many products, the factory of the future will be a $300 3D printer sitting in your customer’s home office.
And if this is true, and everything is “print on demand,” will your huge inventory tracking system even be necessary?
While some of these ideas may sound radical, they could all be implemented today. The technology is there; it’s the will that’s missing. That’s counter-intuitive, given that in most business contexts, implementing these initiatives would both lower costs and increase revenue, which in turn would provide greater shareholder value. And who doesn’t aim for that?
A lot of companies are
moving too slowly.
I t’s 11 p.m., and Mary is still in the office, initiating a GoToMeeting session at a time that will least inconvenience team members in Asia-Pacific, Europe,
and North America. As the brand manager of a new statin, she must get accurate, timely information about the drug’s superiority over its predecessors into the hands of sales reps, doctors, and consumers around the world. Because she has to execute a campaign in all the old marketing channels: print
by Brian Famigletti, Nicole Spitalieri, Avijit Dutta and Roma Sharma
50 ART & SCIENCE
Doing a Global Digital Marketing Campaign?
ART & SCIENCE 51
collateral, print ads, TV ads, and PR – plus all the new ones – the corporate web site, email, online ads, mobile, and social media, she has a specialist agency for each channel.
She’s also trying to do a simultaneous introduction in 57 countries, so she needs local agencies to help tailor the message and language to each market, and help her comply with each geography’s regulations about what claims a brand can make.
This session, she hopes, will get 114 employees, agencies and freelancers on message, and ready to execute.
“Good morning, good afternoon, good evening” she says, starting the call. “In three months, we launch Innostatin, and I know you are as excited as we are. All the files you need for your campaigns are available for download when you log in to the DMP.”
And with that, Mary has unleashed an international team of brand managers and agencies to begin deploying digital campaigns across multiple channels, from email promotions in Spain to Facebook ads in Israel. And she will watch it all happen, and manage the campaign’s success, from San Francisco.
This is the life of the modern-day marketer, and what makes it all possible is a Digital Marketing Platform (DMP).
A DMP capitalizes on economies of scale, offshore labor resources, process standardization, and technology automation in order to deliver speed, efficiency, and cost savings. With a digital marketing platform in place, companies can glean insights about what content customers are looking for, how they are accessing it, and how to produce the most engagement. With analytics like these, brands can tailor personalized digital experiences, the holy grail of inspiring loyalty.
THE DIGITAL MARKETING PLATFORM AND ITS ECOSYSTEMA digital marketing platform may start with a piece of technology through
which an organization can monitor, manage, and create
custom-tailored digital campaigns. Or it may
be several off-the-shelf technologies stitched together to monitor and
report on campaigns.
If you’ve ever deployed enterprise software, you know it will be useless
without repeatable business processes and
trained resources.
That’s why we recommend a digital marketing ecosystem that is more than just a piece of software, but also a set of offshore resources and standardized processes. This army of resources can be systematically managed by your DMP vendor to create and launch global digital campaigns quickly and efficiently – the same way a general contractor handles all the processes and subcontractors (through a single point of contact) when building a house.
DOING A GLOBAL DIGITAL MARKETING CAMPAIGN?
You May Need a General Contractor for That
While it looks like a simple online dashboard, behind the scenes a DMP:
n Gathers and stores all creative assets from the company’s agencies and internal departments in one place;
n Monitors and manages all brand interactions, including email, social media, direct mail, and web sites;
n Allows central marketing staff/agencies to create content once and push it to regional brand managers and agencies instantly, so they can translate, ensure compliance with regulations, and disseminate locally;
n Adds a “factory” of global arms and legs, thereby accelerating time to market for campaigns; and
n Generates easy-to-read, multi-channel reports about the value of all activities and success of various campaigns.
The DMP is also equipped with pre-configured web services for registration pages, contact us pages, user profile pages, FAQs, and landing pages. These web services, because they are common and white-labeled across all branded sites within an organization, allow marketers to make fast updates to any site or page.
Moreover, once you have built digital collateral on the DMP, it’s stored there as long as you need it, and labeled so you can find it to use again. Thus, brand teams can reuse or share assets across campaigns, reducing marketing collateral redundancies, time, and, in turn, costs.
By creating standard and repeatable steps, a delivery team of trusted resources can successfully deliver digital content on the DMP, leaving you and your agencies to handle the creative. Once the digital campaign has been developed, the DMP team carries it out in a standard way across the marketing organization, meeting all policies and standards, enabling assets to
be shared across brands as well as vehicles, and maintaining a central pool of skilled resources, just like a general contractor.
And the DMP is not only a tool for outgoing communication. It is also a place to collect valuable input from customers and the salesforce that would otherwise get lost in the distribution process.
BENEFITS TO MARKETERSTo the marketing organization in the enterprise, a digital marketing platform brings many benefits. First of all, it integrates separate databases that may have been used for mobile, social, and email campaign data collection. But even more than that, it brings:
1Improved communication between agencies and
business unitsCompanies that enlist a 3rd party vendor to design, build, and operate a digital marketing platform also often use that vendor as a Brand/Agency Liaison -- a conduit between the client and all of its agencies and third party vendors, giving the Marketing Manager one point of contact for setup, execution and tracking for any campaign while the vendor takes the heat and manages the tiny details.
2Consistency of data collection and analysis
Companies that have separate agencies to handle their online, mobile, social and email campaigns separately often struggle with data integration issues. With a DMP, campaigns are easily tracked, measured and analyzed across all devices and customer demographics using a common set of metrics and a single profile. Website, social media, email, and mobile data from disparate campaigns can be brought together in one database. You outsource the monitoring; you can also outsource the analytics.
3Expedited campaign cycle times
With dashboard views into financial and performance metrics as well as reusable, process-based templates, a DMP can significantly reduce time to market for each campaign.
Most digital marketing platforms also offer a Digital Asset Management system that creates an efficient process for storing, tagging, accessing and searching every type of company-owned marketing file from sales presentations to legal documents, JPEGs and iPad videos. The result is reduction in costs associated with improperly stored files and repeat content purchases.
4Simplification of the budgeting process
Without a Platform, Marketers must resort to using their agencies for both creative and development work. With a Platform, the creative work is left to the agencies while all of the development work is brought onto the DMP, where standardized templates are used to design and build digital assets. Over time, these standardizations create less variation and more predictable development costs for marketers.
5Automation and standardization of
development processesMost large marketing organizations and their agencies launch digital campaigns using a “one-off” process. Every time they begin a new initiative they are starting from scratch, despite the fact that many of the
You May Need a General Contractor for That
The DMP is not just a tool
for outgoing communication.
It is also a place to collect the
input from customers and the
salesforce that so often gets
lost in the marketing shuffle.
52 ART & SCIENCE ART & SCIENCE 53
KEY COMPONENTS OF A DIGITAL MARKETING PLATFORM
Benefits
Key Points of Integration
Existing EnterpriseApplications
3rd PartyVendors
Capabilities
Website ContentManagement
LibraryServices
ProjectTracking
SecurityTesting
Shareable Web Tools
Web Analytics & Reporting
HostingApplicationMarketplace
Customer DataManagement
Global campaigns
executed faster, with less
hassle, at reduced cost:
Campaign results
(analytics)
Pre-built web tools,
increasing automation
and economies of scale
Standardized support
processes
Digital asset sharing
Time-saving “factory”
model of arms and legs
in various countries
WEB SOCIAL MOBILE EMAIL
@
Channels
by Brian Famigletti, Nicole Spitalieri, Avijit Dutta and Roma Sharma
an Net Present Value of over $7 million based on a discount rate of 10%, and hitting break-even in Year 2. The important takeaway is that, like all investment decisions, a DMP only makes sense if the business case shows the investment yielding a positive NPV.
In order to determine whether or not a DMP is right for you, speak to several vendors to get an idea of overall costs to your organization, and request real life cost savings and case studies. Once you
have that data, you can build a simple NPV model using your company’s current digital marketing spend, hurdle rate and payback period.
But don’t forget to crank in the qualitative factors. What type of corporate culture do you operate in? Are you an early adopter of new technologies, or does it pay to let your competitors make mistakes first and then adopt the best practice?
Like any change initiative, implementing a digital marketing platform brings anxiety as people learn new systems and processes. Even if your company is highly adaptive to change, and you’ve gotten financial approval, failure to get key management in your corner will make implementation an uphill battle. All the key influencers within your organization must understand the business case and commit to championing the project throughout the organization.
Knowing that you have a strong financial story to tell, a long-term plan that ensures adoption, and key management in your corner will set you up for success. And before you know it, you’ll be holding that 11 p.m. launch conference call with 57 countries, just like Mary.
elements from their previous campaigns can be easily replicated and repeated. When organizations deploy a digital marketing platform, they eliminate cost redundancies associated with the “one-off” model by creating a repository of reusable campaign templates and other digital assets.
As the figure below represents, the more campaigns an organization runs, the more the cost per campaign decreases. The pool of re-usable assets expands and less individual work is required to meet the desired outcome. By standardizing design and development processes from start to finish, marketing organizations can ensure all campaigns comply with geographic, technical and brand specific regulations. This mitigates exposure to undue regulatory or compliance risk and the legal fees or penalties associated with violating them.
HOW DO YOU KNOW IF YOU NEED A DMP?If you were building a home, you would be wise to have a general contractor manage all the subs. Likewise, a good DMP vendor is the “general” for a global marketing plan.
The marketers, with their agencies, are the architects – but choose your DMP vendor wisely, because they are the contractor who will oversee the execution.
It takes a certain kind of company to “get” the value of a digital marketing platform. Any DMP is going to be a multi-million dollar investment from design to steady state, so there is a minimum threshold where investment does not make sense. Your threshold will depend on your organization’s current digital marketing spend, hurdle rate and payback period.
A digital marketing platform investment carries a one-time, up front capital expenditure, followed by an annual ongoing maintenance fee.
So let’s assume your organization spends $20 million per year on digital marketing initiatives, and you calculate a DMP can decrease your campaign development costs by 20%. The table below shows a sample business case for implementing a DMP.As you can see, the business case is compelling in this scenario––generating
54 ART & SCIENCE ART & SCIENCE 55
YEAR 2 YEAR 3 YEAR 4YEAR 1
One-Time Capital Expense
Maintenance and Management Costs
20% DMP Cost Savings
Annual Net Benefit
NPV at 10%Discount Rate$7,735,996.67
(-5,000,000)
(-1,000,000)
4,000,000
(-1,000,000)
4,000,000
(-1,000,000)
4,000,000
(-1,000,000)
4,000,000
3,000,000 3,000,000 3,000,000
Cumulative Savings (-1,000,000) 2,000,000 5,000,000 8,000,000
Break-even Point
by Brian Famigletti, Nicole Spitalieri, Avijit Dutta and Roma Sharma Doing a Global Digital Marketing Campaign?
NPV scenario based on $20 million yearly digital marketing spend
AUTOMATEDPROCESSES
LOW CAMPAIGN
VOLUME
HIGHCAMPAIGN
VOLUME
LABOR INTENSIVEPROCESSES
Cost SavingsIncrease
Cost SavingsDecrease
56 ART & SCIENCE
Brian Famigletti is a Senior Associate in the Digital Transformation practice of Infosys.
For the past 12 years, Brian has been helping organizations with a breadth of marketing, business development and technology initiatives. Prior to Infosys, Brian spent four years as the Director of Marketing for venture backed tech start-up, Vibes Media. He spent the early part of his career in the strategic planning groups at agencies Ogilvy and Mather and Element79.
Brian holds a B.A. from Harvard University and an M.B.A. from Northwestern’s Kellogg School of Management.
Nicole Spitalieri is a Senior Associate in the Digital Transformation practice of Infosys. She has over 5 years’ experience delivering large-scale digital initiatives for global marketing organizations. For the past two years, she has been focused on global digital transformations for two of the largest pharmaceutical companies in the world.
Prior to Infosys, Nicole worked at a leading advertising agency in New York, delivering brand initiatives for market-leading CPG products. Nicole holds a B.S. in Communications from Ithaca College and currently resides in Brooklyn, NY. She plans to move to London at the end of 2012.
About NICOLE SPITALIERI
About BRIAN FAMIGLETTI
by Brian Famigletti, Nicole Spitalieri, Avijit Dutta and Roma Sharma Doing a Global Digital Marketing Campaign?
Avijit is a Principal in the Life Sciences practice of Infosys. He has over 14 years of global consulting experience.
Avijit is a thought leader in the Life Sciences domain, focusing on clear strategy, business process design, and innovation. He has specialized expertise in large-scale, IT-enabled transformation in sales and marketing and drug development.
Avijit received his MBA from XLRI Jamshedpur, India and BE in Medical Electronics from Bangalore University, India.
Roma Sharma is a Senior Associate in the Retail practice of Infosys.
She has 9 years of experience in pharmaceutical consulting and specializes in digital marketing. Roma joined Infosys from Sanofi-Aventis, where she was a quality and compliance manager.
Roma loves photography and spends most of her free time with her camera.
About ROMA SHARMA
About AVIJIT DUTTA
ART & SCIENCE 57
Discover more Art & Science:infosys.com/artandscience
email: [email protected]
Find us around the web:
© 2012 infosys limited, bangalore, india. all rights reserved.
Infosys believes the information in this document is accurate as of its publication date; such information is subject to change
without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other
intellectual property rights mentioned in this document. Except as expressly permitted, neither this document nor any part of
it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing,
photocopying, recording or otherwise, without the prior permission of Infosys Limited and/or any named intellectual property
rights holders under this presentation.
facebook.com/Infosys
linkedin.com/company/Infosys
twitter.com/Infosys
