Digital Strategy: Reconnect Customer & Rebuild Org Flashcards
What is customer journey?
Complete sum of exp. that customers go thru when interacting w your company & brand - documents the full exp. of being a customer
use marketing funnel (aka conversion funnel) to see customer’s path-to-purchase from being:
- aware of the product/brand
- interact (consider, purchase, service) w the pdt / brand
- loyal to the pdt / brand: repeat purchase, support the brand
What are the various touchpoints of a customer journey?
- Awareness
- Consideration
- Purchase
- Service
- Loyalty
What are aspects of reconnecting with customers?
- Aquiring Customers - Digital- & social-mkting -> new channels for aquisition
- Engaging Customers - not tech & data alone but unique value
- Measuring & Optimizaing Marketing Spend - effectiveness in ads spending
Why do we need to consider Customer Lifetime Value (CLV)?
CLV is a metric that indicates the total revenue a business can reasonably expect from a single customer account thruout the business r/s
E.g. Blue Apron, a meal-kit maker stubled in its IPO bcs analyst recognized that 60% of customers left after 6 mths
What is the 200-20 rule?
- 20% of the customers provide 80% of the revenue
- 20% of the customers provide almost 200% of the profit
How to acquire customers?
- Moments of Truth
- From search to purchase
- Personalization & retargeting
- Social media advertising & viral marketing
- Acquisition thru offers (e.g. price promo)
- Freemium model for aquisition
What are the moments of truth (3)?
Happens at store shelf:
1. ZMOT - Zero Moment of Truth -> Search & evaluate
2. FMOT - First Moment of Truth -> Purchase
Happens at home:
3. SMOT - Second Moment of Truth -> Consume
What is from search to purchase?
- Paid media (e.g. search engine mkting, sponsored ads)
- Owned media (e.g. own social media channels, websites, blog posts)
- Earned media (e.g. influencers, reviews, online word of mouth)
What is personalization & retargeting?
Ads to customers who visited but didnt buy
What is the Freemium model for acquisition
- Digital Products - almost zero production & distribution
- Adobe changed from selling packaged pdt to monthly subscription service w freemium model -> aquired millions of free users
What are the potential market segmentation criteria?
- Geographic Criteria (Macrogeographic / microgeographic Criteria)
- Sociodemographic Criteria (Demographic / socioeconomic Criteria)
- Behavioural Criteria (Price behaviour, media user, pdt choice)
- Psychographic Criteria (Motifs & attitudes, lifestyle criteria, value expectations)
How do you engage consumers?
- Providing value
- From storytelling to storymaking
- Moment-based mkting
How do you provide value to consumers?
- leverage mobile to create win-win strategies
- Tesco “Virtual store”, Homeplus in S. Korea in Seoul’s busiest subway (distance of supermarket in Korea > SG)
- Sephora’s Virtual Artist app - enables consumers to try on pdts instantly –> shopping is more effective & interesting
How do you use from storytelling to storymaking?
Use a broader message that is emotionally engaging -> allows for a 2 way conversation
- makes consumers an integral part of the story
- makes your brand a part of consumers’ true-life exp
Example: Mastercard’s aim on making meaningful exp - “Connecting People to Priceless Possibilities”
Campaign “Priceless Causes”
- to generate donations to particular charities when consumers use Mastercard
- collab with STB to launch mkting partnership to boost domestic tourism
- launch of 16 new & exclusive priceless exp like sailcations -> help locals reconnect w familiy & friends
- Audience: Families, Young Professionals (both makes up >50% of SG cardholders)
What is moment based mkting?
- X about consumer demographics, interests / past purchases
- about the moment & context
E.g. DBS developed Home Connect
- users calculate mortgage payments for their home purchases & check infoon on past transactions for similar properties - includes rental information
- to get customer for mortgage lending
How to win micromoments?
- Map customer journey to understand their intent & context
-> DBS: value for customers thru info like amenties for decision making - Classify diff moments into coherent groups
-> ~ do, ~ go, ~ buy etc - Provide useful info
- Create snackable content for customers’ short attention span
What is attribution modelling?
Attribution: desc who gets the credit for a conversion
Attribution model
- default: last click / last interaction
- simplest to implement but only one channel gets the credit even tho a customer has multiple interactions that can affect the conversion
What is the online-offline interaction?
Online ads influence offline sales BUT is hard to measure the value of the ads
E.g. Google buys Mastercard data to track store sales measurement from online ads & measure ad impact
What comprises of rebuilding an organisation? (brief) (3)
- Managing digital transition [leadership]
- Designing org for innovation [culture]
- Skills, capability & talent management [skillset]
For the article 12 reasons why digital transformation fail, classify them under managing digital transition, designing org for innovation & skills, capability & talent management
Managing digital transition [leadership]
- lack of CEO sponsorship
- trouble with what & how
Designing org for innovation [culture]
- resistance to change
- wait and see trap
Skills, capability & talent management [skillset]
- failure to align tech & talent needs
- talent deficit
What are the development stages of digital org? (w increasing degree of digital automation & innovation)
part of managing digital transition
- Traditional Analog Org
- strong hierarchies, analog tech, simple desktop tech - Initially Digitized Org
- relatively flat hierarchies, comp. tech, internet tech - Partially Integrated Digital Org
- partially digitized biz model, big data, broadband internet - Fully Integrated Digital Org
- digital network org, cloud / edge computing, AI
What is the roadmap for managing digital transition?
Stage 1: Defining Value
- secure snr mgmt commitment
- set clear, ambitious targets
- secure investment
Stage 2: Launch & Acceleration
- start w lighthouse proj.
- appoint a high caliber launch team
- organize to promote new, agile ways of working
- nurture a digital culture
Stage 3: Scaling Up
- seq initiative for quick returns
- build capabilites
- adopt a new operating model
Lighthouse proj - highly visible / strategically impt proj that serves as a model or example for others to follow
What were Adobe’s efforts and changes to managing digital transition?
- Pdt development - change to subscription model -> allows feature incorporation from customer feedback & customization
- Distribution and sales force - direct selling
- Pricing - charged based on usage behaviorr
- Promo & comms - digital mkting tool for better targeting
- Customer Mgmt
- Online communities - platform for info sharing & connect w expert for a fee
How do you design an org for innovation? (brief -2)
- Creating landing dock
- intiative to use the infrastructure and the engine, align w company strat
- open to internal & external innovation team - Build a new company from within
How do you design an org for innovation? (brief -2)
- Creating landing dock
- intiative to use the infrastructure and the engine, align w company strat
- open to internal & external innovation team - Build a new company from within
- build new biz focus & slowly morph the company into the vision
Mastercard’s example of creating a landing dock (5)
- Mastercard Labs
- standalone on budget but must use infrastructure - Tapping into external ecosystem
- incubators & accelerators ard the world
- invest in start-ups - Joint ventures
- most innovations will fail BUT worth to try & see tech of the future & inspire employees - Building pipeline for acquisition
- find local talent & innovation for btr integrataion - Internala competitions & hackathon
- encourage & fund employees to develop innovative ideas
How do you manage talents in the Digital Age?
Recruiting - algo first screen candidates -> f2f interviews
Training & development - Coke CEO created a teen advisory board to get insights on media consumption & buying behavior
Performance evaluation - data analytics on sucession planning & career coaching ; GE implemented real-time feeback
Talent retention - GE predicted employee churn 6 mths in advance & designed appropriate interventions
Goldman Sachs’s example of building a new company from within - regulation & FinTech challenges
- Create tech platforms to centralize core components - remove duplication & breaking silos
- Open the platform to clients to accee the platform & tools - co-build pdt
- Build new biz - position itself for the future
- SIMON - platform for structured notes (& competitors are invited)
