Many companies find that their people, processes and products lack digital maturiy, digital capabilities and digital innovation. Now, a recent study by MIT Sloan Management Review and Deloitte Digital finds that most employees (and not only GenY!) are not happy how their companies understand and leverage digital transformation. They want to work for the digitally mature management teams and leaders.
The report called „Strategy, Not Technology, Drives Digital Transformation“ surveyed over 4,800 business executives across 27 industries and 129 countries. The main finding is that the opportunity to digitally transform and to turn a business into a digital business depends largely on a digital strategy enabled by leaders who understand to create a culture that is open to change and reinvent an organization.
The study also makes clear that digital maturity of brands is based on the talents that companies can safe and hire these days. Over 75% of the digital mature companies agree or strongly agree that their organizations provide the necessary skills to capitalize on digital trends. Against those stand the immature companies where only 15% say that their organizations have a clear and coherent digital strategy.
Companies that are not yet digitally developed and advanced tend to focus on operations and what technology can do for them in an operational, tactical way. However, digitally advanced companies leverage their products always evaluating the digital transformation view in their strategic approch.
Interestingly enough, the study proves the agile way of doing bsiness and inventing products in the future. Those compannies that are igitally maturing organizations are more open to taking risks than the laggards. Over 50% of those laggards fear the risk as a major shortcoming. Embracing failure as a „prerequisite of success“ seems to become the new standard if companies want o be innovative and fast in driving digital transformation.
Not surprisingly, the maturing organizations are nearly twice as likely as less digitally mature entities to have a single person or group leading digital transformation process. The fluency of these leading digital companies is highly appreciated by employees – but it is not based on technology. Translating the capabilities of technology into value creation is much more challenging for companies but delivering the value that digital transformation needs. And leaders seem to (90%) understand the technology according to their employees.
The main message of the study for us was that leaders (70%) encourage their employees to innovate with digital technologies. Now, the study does not tell the readers how the managers are empowering their employees, in which way they provide motivation or technological ways to do so (which as we know ist he masterclass that most managers have not visited yet), and how much they have succeeded with their approach. In the last years, we have learned that most companies are exactly on that spot blank. Defining the ambition, delivering creative concepts, leveraging the sustainability of the concept, and finding the right processes was often the biggest effort in our projects for companies.
A recent study 2015 Content Marketing Survey by content marketing agency Castleford states that the amount of marketers committed to content marketing is increasing. According to their results 65% (compared to 48% one year ago) of marketers want to boost their content marketing next financial year. Their plans is to invest more in time and resources.
Even more, 97% of participants of the survey said they will increase or retain their current level of investment. And the respondents also face the support of their C-level executives. Of the responding marketers 76% replied their C-level executives viewed content marketing „quite positively“ or „very positively“.
Obviously, there are also some challenges involved in content marketing creation wit time (45%) and budget (29%) being the biggest problem. Just, 3% that mentioned their C-level buy-in is their biggest challenge to content marketing will be probably persuaded over time, we think.
In terms of content marketing tactics the study shows that social media (81%) is still the favorite online marketing tactics in this field. However, the biggest growth opportunity shows video marketing and paid promotion of content for the next year. 61% are already using video marketing, (increase of 13% compared to last year). This is probably also driven by the main players Facebook and Google.
The variety of content marketing is also growing though. Almost every second marketer said that they use five or more different online marketing channels (45%).
Although Castleford director Rob Cleeve is confident with the development of content marketing, he also makes clear that marketers need to deliver results with it as well: „In my experience, content marketing is claiming an increasingly large share of overall marketing budgets, which is going to mean more pressure to show how it’s benefiting the bottom line.“
Content marketing definitely has changed the advertising industry drastically. However, the main challenges involved are the appropriate use of data with content to drive the right story in the right context to the right user at the right time. Here we see massive problems for many marketers still in our work with customers. Post-it recently explained it nicely in a video that leverages their banner and ask many question in terms of how retargeting actually kills good content marketing in terms in the example of banner ads.
The infographic of the study carries all relevant results of the Castleford study.
Some years ago and in many seminars, we make clear that the 3Rs of social consumers will revolutionize the sales world: ratings, reviews and recommendations. However, the question arises what make people recommend brands and services? What is their intrinsic motivation or human driver that makes them push out more positive comments around a brand.
A recent infographic by Social Media Link pulled together the most important findings of a study that surveyed 24.000 social media consumers. Still, the best customer experience that leverages recommendations is „a positive experience with the brand“ (93%) and „receiving a free product or sample“ (79%). On the other hand, a poor customer experiences motivates sharing, too. 71% stated „a negative experience with a brand“ makes them write a review as well.
The survey respondents also mentioned that they are more likely to trust a product recommendation on Facebook than any other social network (71%), followed by Instagram with only 38%.
Not surprisingly, Facebook and retailer websites ist he place to discover new brands and services (53%). However, for purchasing the retailer becomes more important and after purchasing a product people use predominantly Facebook to share their buy (54%) – again Instagram comes in second place.
Now, when you think you just need to give a free product to someone, it makes them write a review or recommendation, you might be wrong. Although, 88% trust friends’ and family members’ reviews when these write about their give free product in exchange, the bloggers only come in at 78%. BUT: Is payment included in exchange for the review, trust-level goes down – especially at bloggers to 48%. Still, the best way ist o have apersonal story which is authentic, not animated and personal.
The social networking landscape is changing massively over the last years. Curation and aggregation of content becomes a big game changer through new ways of sharing, new platforms and modern technologies. Some new data from eMarketer explains the main gains and chains of social networking.
„Let’s face it: As much as we complain about those over-sharers who inundate us with baby photos and vacation snapshots, we’re still in love with social networking.“ Debra Aho Williamson, Pricipal Analyst, eMarketer
The next big thing will be mobile social networking, where Twitter, Instagram, Pinterest and Tumblr will become the prominent players. So, let’s see how eMarketer predicts the social networking future for the next two years.
Selling through social media has always been a challenging business. However, all brands and companies we have spoken to in 2014 wanted to turn around Social Media from a brand reputation channel into a sales opportunity touchpoint.
Obviously, many of the companies had already failed. Most of them as they were either too greedy, or just not prepared to go in a bar without expecting someone to sell them a drink – or respectively, to buy their products and services after the brands or companies have posted their first status updates. In my eyes, it is time to shift expectations and start anew. 2015 should not be your year of sales disappointment, it should become your year of redefined engagement.
All companies aim for the same goal. Customer engagement is what companies are waiting, hoping and praying for. Thus, they pump out tons of content pieces from their latest brand sponsoring activities to the best white papers and case studies they can offer until they cannot find any content piece in their PR or marketing repository that has not been shared across the globe. And by accelerating the content via Facebook, Twitter and the likes, they expect their KPIs to become real.
And then, the guys from SocialFlow conducted a study in summer last year. analyzed organic posts with almost 1.5 billion social actions, showing them 99 percent of those updates on Twitter, Facebook, and Google+ create little to no engagement at all. Did brands use engagement the wrong way? Where their tactics bad? And if so, what were the obstacles they did not obey?
Let’s look at the following three tactical approaches. Ask yourself if you really follow the three rules of engagement.
1. Engagement: Think cross-department, cross-partners and cross-employee
Companies still tend to be structured in silos. Internal politics, department thinking and career ambitions rule out what could be replaced by community engagement, employee engagement initiatives or engagement incentive plans. Still, most responsible managers don’t know or forget how networking inside the company and with all external forces like resellers, retailers and partners might might leverage selling opportunities.
Now, whether it is limited digital capabilities of employees or the HR department that is often only involved in social media in terms of setting up social media guidelines, companies should start realitzing that their social media manager is not the company’s silver bullet. HR and marketing need to align forces and work closer together: Culture, relationship building and trust creation is not only a sales business which got nicely highlighted by a study from Altimeter at the end of 2014.
Setting up processes, programs and platforms that work towards a common goal, that get updated by various minds, by different perspectives and manyfold views attracts the engagement of more customers. The formula is easy and proven: More brains can be in more conversations and generate more engagement.
2. Engagement: Learn cross-platform, from „free-meal“ to „pay-for-play“
Companies and brands seem to accept that social media is not a „free-meal“ any longer by investing in consulting companies to help transforming their social media efforts into social selling enagement. Facebook is leading in driving engagement to brands according to Simply Measured’s 2014 Facebook Study which analyzed the Interbrand Top 100 Global. Photos accounting for 77% of total engagement, and link usage to around 16%.
However, brands still haven’t respected the fact that getting people to listen and read their marketing messages by posting in social media is changing dramatically. When Facebook turns the algorithm into „less promotional“ this year, companies need to start redefining how they approach their customers more subtile. Even if they will be addressing them with building clusters (or circles), contacting them via the „@name“ phenomenon or hashtags. The wording needs tob e chosen carefully, and we can be sure other networks will follow that example.
Thus, the next big thing will be the shift from investing in traditional media to spending more money in platforms that leverage social networking engagement. Products like the LinkedIn Sales Navigator or individual targeting through the combination of data analytics and marketing services, will become the new sales kid in town. Where marketing and media decision makers have invested in nebulous target-group definitions, social networks can cluster target-groups by their individual interest in content, in pictures or in videos.
The only shame is that smart data (and especially media and sales data exchange) across platforms does not work yet. So, banners and sponsored posts will continue to haunt customers although they have already bought a product or service a banner promotes to them. Clever managers invest in blogger programs, in brand advocates and loyalty programs to drive up and cross-selling opportunities. Don’t just think about content!
3. Engagement: Understand cross-quality values
Just to make this clear from the beginning: A LIKE is not only a LIKE, like a Retweet, Repin or Reblog is not just a meaninglesss interaction of some lazy engagement. In many seminars, we see marketers that still center their KPIs around quantitative engagement figures while under-estimating the chances that are covered behind such „automated“ customer interactions: joy, interest, passion, emotions, etc..
Clever sales people use such quantitative engagements for profiling their customers’ habits, experiences and interests in their social CRM database or sales management systems. They value every single customer engagement as they know when to turn quantitative into qualitative engagement, and how to turn it to their favor in meetings, calls and conversations. Knowing that a client has liked a shared golf or football video can be the start of a long-term relationship and open up doors for introductions to others.
Customers will be happy if they get good content to share with their own peers and community. They appreciate the dedication (seasonal content), commitment (consistency of service) and the quality of engagement (high interactivity) that brand accounts offer to them according to a study by the Engagment Labs. Appreciation, well-understood from customers and companies, is the key to social media engagement.
The link between customer engagement and employee engagement was not only proven in a study by Answers Corporation lately. In many examples with customers and experts have we experienced that social media engagement is not rocket-science, however the process of setting it up plus using and finding the right technology is a challenge. Still, the rules of engagement are changing in social media, especially in social networks. Facebook is the former RSS feed, just with the difference that you can sponsor it now. Youtube is the new search engine. It’s 2015! Redefine your engagement mindset!
Eyes wide open, the two IBM gentlemen look at me. They sit up right. Professional. Spot On. You can feel their enthusiasm, their expectations are high. Both are social collaboration leaders at IBM, evangelizing on the #newwaytowork. That’s how the software technology company hashtags their latest journey to the revolution of the email as they call the launch of their new inbox communication software „IBM Verse“. You can tell how excited the two managers in front of me are to talk about the IBM success story. The launch seemed to have gone well so far.
On my opening question both face each other, not sure who shall answer. They are professionals in communication, they are prepared. „The term Verse is historic for communication and conversation“, replies Dr. Peter Schuett, Leader Social Business Strategy at IBM. „In times of Goethe, when carriers brought people hand-written letters, all the communication that went to and fro was written in verse.“ The answer surprised me as IBM’s development sounds like a trip in the past.
It is not. For the first time, IBM has taken a new development approach. They made their customers think about the new software solution by inviting customer to their labs, by rethinking email, and by thinking design and customer experience first, based on real customer feedback, input and inspiration. Not the cheapest way to innovate. The product development cost 100 Mio. US Dollars according to them. It has got to be effective from a customer perspective.
For a long time, IBM has been a forerunner in terms of modern workplace technology. Their „Outside the Inbox“ evangelist Luis Suarez has already been preaching for a business world with less emails. We all know the reasons why he was addressing this. People get approximately 127 emails a day. This means emails kills 28% of our daily work-time, and thus of our daily productivity.
With IBM Verse the software technology company wants to shift productivity. Creating a more effective business culture is the aim. From Ed Brill’s perspective, he is IBM’s social business transformation specialist, email should function as a transmitter. Email today should be serving notes like a private letter what Goethe used to do in hand-written form: delivering private information.
„Email is the service forever. But it needs to be a personal service.“ Dr. Peter Schuett, IBM.
Focussing on the new software solution, I brought up the question in which way this is a revolution to email communication. Ed Brill emphasizes that IBM did not want to reinvent the email. IBM wished for a better email. However, IBM wanted to create a new intersection of email, calendar, social media and analytics. That’s what they have done with IBM Verse.
When I showed a bit of my disappointment around the new solution’s capabilities in terms of being an aggregation platform for direct messaging and functionality as an inbox management system in general, Ed Brill rearranges my expectations in bringing the metaphor on suits which might all look different in design but are in a sense all alike from the amount of innovation in style and structure. And by the way, the power users of enterprise email are still personal assistants.
True, sometimes people forget where they stand in the evolution of modern communication. With their „People“ and „Analytics“ functionality, the modern way of a more personalized communication approach seems to get in that social direction in the future. At least, when we compare IBM Verse and Facebook from a superficial point of view. With IBM Verse people also move into the centre of the communication universe which is meant to map the efficiency form content to people. IBM Verse „People“ learns to show the users dynamically who is important to their communication, by hour, meeting and topic of conversation. Obviously, users can also change that and arrange it according to their premises. The world of communication gets filtered more and more.
IBM Verse is definitely a big evolution step in email communication. Still, they could have made it a bit more of a revolution in delivering a multi-messaging and communication management platform in my eyes which integrates direct communication via Facebook, Twitter and others.
Brill agrees that when CEOs wanted to spread the word around some company, product or people changes in the company, IBM was about to use email for that communication. Today, via IBM Connections -the internal use of their own company community platform- gets 7 Mio. accesses a month, and the CEO messages will reach (and achieve more feedback) more people via internal social messaging than via email in the past.
Nevertheless, the two gentlemen did not want to commit to a statement whether IBM Verse and IBM Connections might become one platform in the future. But the approach to one collaborative workplace platform, serves the option to have fewer apps in the future. But hey, there is hope: „Rome was not build in one day!“ summarizes Schuett in the quick Snapshot video interview in the end of our interview, and smiles.
In days of Facebook, AirBnB, Tumblr & others, when new business models and start-ups spread all over the world, some marketing freelancers might think about the option to appear big. Or shall I say for some interim period of establishing a business, these people might want to look bigger than some decision-makers might imagine? Whatever their driver might be. When starting a business, marketing consultants have got the challenge to look professional all over their brand. An address in the right context location seemed to be a must-have. It’s all about the brand, right? However today, the overarching value of a new business brand might have changed. What was a shiny office address in the middle of town in the year 2000, isn’t important any more (and maybe never was). There are new and probably better options that virtual offices can offer.
Thinking back around millenium days, when we launched a start-up with some good business partners, the venture capitalists would have loved the option of a virtual business. The resons were obvious: The business model puts a foot on the „valid business reasons'“ groud instantly. Operationals can start immediately. Being first to market, cannot be taken away from you. „Land and expand“ is the option. All set. In 2000 this sounded like a dream for founders and their investors. Our company’s rental costs were the biggest liability we had those days (also when we bought the business and sold some years later). We couldn’t just leave and sign off our contracts. The landlord was clever enough to keep us in our rooms for at least six more months. The virtual office is much more flexible and usually offering shorter termination periods.
Talking about liabilities, you might also think about getting a secretary? Another cost topic. Virtual offices have got their own secretaries who will look after your business. Calls, postage, or even emails if you may want to leave it to them: all sorted out by them. Whether it is PR requests, marketing topics, sales inquieries or any other service related business, the virtual assistant is giving clients and business contacts what they are asking for (if you brief them properly). No overhead business. No extraordinary employee costs. If it is your own staff, you have to find replacement for them on days of illness or family issues. In virtual offices, the service is available 24/7/365. These days, you do not necessarily have to pay for health treatment if someone is ill. And speaking frankly, this harms your business in the start-up business three-fold: cost-wise, additional workload and underpaid founders doing processes and projects they should not be looking after in the start-up period.
Later, when I started some other consulting business, I used a virtual office place to start the business. The benefits were quite interesting then:
a) Pay-per-stay. When I was in London for business, my virtual office in London would have been fantastic. Why do you always have to commute around London and waste expense budgets, when from time to time you can just have gotten people to commute to you?
b) Pay-per-use. When clients came to visit, I did one phone call to the virtual office desk and paid for hourly use. That was really handy. Do I need to „own“ (and pay) a meeting-room that is unused for 35 out of 40 hours a week?
c) Pay-per-need. When I needed a desk, I paid for a shared desk. If I wanted to stay at home, I just told the office desk the day before. Do I need to rent a place where „my“ desk stands and is waiting for me too many days in a month? Traveling is the key to starting a good business. Meet as many people as you think is necessary.
d) Pay-per-inspiration. When I needed business exchange, new innovative approaches or even looked for some new networking opportunities, there were people from many industries to talk to at the coffee lounge in the virtual office. On a good talk, I paid for the coffee. No cheaper way to get consulting. And: Who goes a floor down in his office, just to meet someone as they are tenants like you are in order to speak about business?
There are valid business reasons to use a virtual office company when you start a business. When the business grows and you have got paperwork to store, you might think about using a bigger version of the virtual office components and features. Still, the reason for renting an office in days of cloud computing, bigger WIFI access and coffee bars in virtual offices is becoming smaller and smaller. And even, if your business grows, there are many ways to leverage the virtual office s long as you act in start-up mode.
A recent report from G2 Crowd, based on the reviews of 1,700 CRM professional users, shows that Salesforce and Microsoft Dynamics are the leading two customer relationship management (CRM) systems. This is the finding of a report that has checked the 27 highest rated systems by customers.
The report grouped tools together based on two main deliveries a) overall customer satisfaction (average scores by users) and b) market presence (market share, vendor size, and social impact). The report defined the CRM systems as software systems that provide salesforce automation features (account, contact and opportunity management), marketing automation tools (lead and campaign management), customer support options (knowledge management and support case), and a unifying database.
In the CRM „leader“ category finished Salesforce and Microsoft Dynamics. Both tools showed substantial scale and were rated relatively highly. Salesforce was rated significantly better by 9 out of 10 users: reviewers gave Salesforce 4 or 5 stars. Furthermore, 84% stated they would recommend the product to peers and 88% thought the CRM tool is headed in the right direction.
However, Microsoft Dynamic’s impact on the market in the top tier is predominantly depending to its large market share. Only 60% of Microsoft Dynamics users rated the product 4 or 5 stars. Still, 64% would recommend the tool to their peers and 60% think the CRM system is headed in the right direction.
Another study by Salesforce.com shows that customers experince CRM systems to boost customer experience. However, data quality and predictive analytics could still do better in performance conversion. Nevertheless, the battle in the CRM tool business is on. Microsoft just bundled their product offering to challenge Salesforce. Although aggressive pricing might change proples‘ minds, Salesforce.com has the benefit there exist hundreds of AppExchange partners, like Marketo, Eloqua, LinkedIn and others. While Microsoft also has its‘ partners, Salesforce.com’s still offers the enterprise app cloud development platform that shows more opportunities.
Compared to some previous study, this years CMO Council’s „State of Marketing“ (sponsored by NetBase and Infor) shows that confidence to be a trusted source for the C-level is back with marketers. The online study that asked 525 global marketers in the first quarter 2014 shows that 69% of senior marketers see themselves as a trusted, strategic member of the C-suite and/or are increasing their credibility with the main business decision makers inside their companies. Furthermore, 81% of senior marketers responded that they’re confident to meet management expectations and goals for top-line revenue growth and market share in the next 12 months.
„The level of confidence and optimism is very high. We are seeing the CMO role being elevated to a much larger degree.“ Donovan Neale-May, Executive Director, CMO Council
From a budget perspective, the main areas of marketing spending growth for this year will be social advertising (71%), online video (71%), social engagement campaigns (69%), retargeting (67%) and search engine marketing (66%). However, mobile will go down in the attention of marketing spendings this year. Only 62% said they plan to increases and just 25% project increases of over 5% for 2014. 45% said they expect no change for mobile banners. The report makes no commments on reasons for this stagnating mobile budget growth. In general, 54% of marketers plan to increase their marketing budgets over the next 12 months, 27% will keep budgets stable. The most funding will go into new products and program launches (54%), corporate branding and identity building (53%), lead generation and qualification (50%), and customer retention and monetization (44%).
When asked to identify where marketers will allocate marketing budget across
From an operational and process point of view 12% of the responding marketers said they will invest in product marketing, 12% said in strategy and branding, almost 7% in marketing and planning, 7% in sales and lead management, and 5% in market research, among other areas. It seems that programmatic buying has still not reached the marketing department. Only 1% sees programmatic advertising technology systems an interesting topic to invest in. Maybe they just do not have the right arguments for their C-Suite on programmatic yet.
The senior management expects from their CMOs over the next 12 months to drive top-line growth (56%), grow or retain market share (52%), better define the brand and value proposition (44%), and further customer insights and analytics (37%). As the leading areas of responsibility the marketers see for themselves strategic planning and forecasting (74%), branding (71%), digital (68%), budgeting and mix modeling (68%) and market research (67%). from a C-level perspective the marketers state that their main tasks from the business leaders are driving top-line growth (56%); growing or retaining market share (52%); better defining the brand and value proposition (44%); and furthering customer insights and analytics (37%).
The challenge for marketers as of the cloud technology evolution is to connect with other departments inside the company. Interesting to see from the report to which people marketers are reaching out these days for partnerships. The marketers responded that the CFO (58%), CIO (53%) and chief sales officer (51%) are their main three touchpoints inside the organization to form partnerships with.
The report also states that 55% of marketers want to hire in 2014. Their main focus of reecruiting people or getting knowledge will be on customer analytics (40%), social media (36%) and content development (27%). Interestingly enough, a trend that we also experience with our clients is that B2B marketers (60%) are very active finding new staff. Their main interest is in people on topics like customer analytics (33%), product marketing support (33%), content development (32%) and social media (32%).
Many companies and brands are thinking about ways on how to embrace the Internet of Things (IoT) in connecting devices to cloud products and services. Whether it’s cars, switches or home appliances, the IoT will change the world we are living in but also give us opportunities to ease our daily life. IDC estimates that internet of things market has already a volume of $1.9 trillion dollars -and in 2020 8,9 trillion US dollars- based on some research they have done recently.
Now, the guys at AriaSystems have created an interesting infographic showcasing products and services which companies have created, and how they already make money with the Internet of Things.