Lecture 9 Flashcards
Marketers need to be able to access their data to measure
digital marketing activity
Most marketers will have website analytics and their own business analytics tracked in
either homegrown or third-party tools.
In more advanced cases, a data warehouse can pull together data from a wide array of systems to
make insights and reporting more accessible.
Data Sources
Transaction Database
Web Analytics Tool
In Store Tracking
3rd Party Pixels
External Sources
Analysis Tools
Statistics
Modeling
Visualization
Ad Hoc
Reporting
Languages
Map Reduce
R
Python
SAS
SQL
Platforms
Relational
Hadoop
Hive
Spark
Transactional
Insights & Analysis Ecosystem
Data Sources
Analysis Tools
Languages
Platforms
90s Competitive Advantage
• Operational skills used to confer long-term
advantage
• Leaner manufacturing, higher-quality
products or superior distribution would outrun
competitors
New Competitive Advantage
• New source of competitive advantage is
customer centricity
• The ability to deeply understand your
customers’ needs and fulfilling them better
than anyone else
What is Customer Centricity?
Business strategy that sits at the intersection of what the customer truly needs, the purpose that the brand wants to bring to life for its customers, and the way in which the business commercializes its relationship with its customers.
Customer-centric companies are growing revenue faster than their competitors and are creating
personalized, experiential value
propositions based on data-driven insights
By 2020 there will be more than 50 billion connected devices (~7 per person), making enough data available to
better understand people and transform companies into customer-centric
Business Drivers of Customer Centric Growth
There are 10 drivers within 3 dimensions that over-performing companies adopt to deliver customer-centric growth
Customer Obsession Drivers
Insights Engine Drivers
Total Experience Drivers
Customer Obsession Drivers
Drive customer obsession throughout the
organization, taking the voice of the
customer into account in every business
decision (internal and external)
Drivers
- Embrace by all
- Leadership priority
- Collaboration
- Experimentation
Insights Engine Drivers
Evolution of Insights & Analysis from support role to fully integrated business partner that has a seat at the leadership table, driving strategy and real-time execution
Drivers
- Leading role I&A
- Unlocking power of data
- Critical capabilities
Total Experience Drivers
Seamless, consistent and tailored
brand experience that goes beyond
functional benefits and is built on a
clear purpose for why the brand exists
Drivers
- Purpose-led
- Data driven customization
- Touch point consistency
Benchmark in-house results against a robust global cross-industry dataset to
quantify the revenue growth potential of addressing each driver.
How To Achieve Customer Centricity
- Customer Centricity requires data
- However, having troves of data is of little value, the ability to transform data into insights about consumers’ motivation and to turn those insights into strategy is the real differentiator
- This alchemy requires innovative organizational capabilities called “insight engine”
The Importance Of The Insight Engine
Its vital role was revealed in the Insights2020 study led by Kantar VermeerI, which involved interviews and surveys of more than 10,000
business practitioners worldwide.
Of the factors that were found to drive customer-centric growth, none mattered more than a firm’s insights engine, embodied in its insights and analytics function.
Unilever Case
- Shows how the insight engine works at the consumer giant and its characteristics
- Unilever owns 400+ brands, including Dove, Knorr, and Axe, which generated $60 billion in revenue in 2015, with underlying sales growth of 4.1% for the year
• Performance at those levels requires full engagement of the company’s 169k employees, who span functions from supply chain and R&D to marketing and finance. But as we’ll review, it’s the
insights engine, manifested in the firm’s Consumer and Market Insights (CMI) group, that underpins Unilever’s customer-centric strategy
Unilever New Strategy
• In 2016 Q1, Unilever’s CEO announced a new initiative to shift
resources to local markets around the world, clarifying
accountability and making marketing teams more agile globally
and locally
• The initiative was based on the insights collected by the CMI group,
which were discussed with the board and led to changes in the
organization and mindset
• CMI identified growth in consumers seeking brands that align with
their cultural identity and lifestyle, allowing local firms to grow faster
and strengthen their competitive position
• Unilever’s new initiative showcases the type of a high-level advisory
role that leading insights functions are increasingly taking
A decade ago, I&A was sort of strategic
involvement by a customer intelligence
operation was almost unheard of and was typically a
reactive service unit reporting to the marketing function, fielding marketing requests, and producing performance management reports
Over time, I&A has been shifting from merely
supplying data to
interpreting it, distilling insights about consumers’ motivations and needs on the basis of their behavior.
Driven by the imperative to become
customer-centric, leading firms are now
completing the transformation of market
research groups into
true insights engines with
a fundamentally strategic role.
Characteristics of Superior Insights Engines
There are 2 broad groups:
- Operational Characteristics
2. People Characteristics
- Operational Characteristics
- Data Synthesis
- Independence
- Integrated Planning
- Collaboration
- Forward-looking Orientation
- Affinity for Action
- People Characteristics
- Whole-brain Mindset
- Business Focus
- Storytelling
Until recently, large firms had an advantage over smaller rivals because of the scale of their market research capability.
Today what matters is the ability to
connect the dots and extract value from the information
__% of executives at over-performing firms said that their company was skilled at linking disparate data sources
67%
To improve proficiency in using data, firms are creating
dedicated data groups, under senior executive leadership, to consolidate, manage, and analyze data and distribute it throughout the
organization
For any insights group, the first challenge is to
integrate massive and disparate sets of both structured and unstructured data
Superior insights groups sit decisively
outside
marketing and other functions and
often report to someone in the C-suite (i.e.
CEO, Chief Strategy Officer, or Chief
Experience Officer)
The i2020 research shows that insights leaders in over-performing organizations report to these senior executives more than twice as often as their counterparts in underperforming organizations (29% vs 12%)
What is the driving force behind strategy
development and execution?
Business and brand planning cycle
This is where decisions are made, resource
allocation and budgeting formalized and
performance monitored against goals
For I&A to help drive strategy, their
activities must be aligned during the
planning cycle with those of strategic
planning, marketing and other functions.
Over-performing firms usually include
insights leaders at __ stages of the
planning cycle, especially in retail
all key
Over-performing firms work __ with other
functions and customers
closely
Emphasis on collaboration is evident
particularly among tech start-ups, but also
among
giants such as Alibaba and Google
In traditional market-research functions, the
emphasis isn’t so much on collaboration as on
being an effective service provider
Insights functions have a distinctly different role
that emphasizes
shared goals and partnerships.
Over-performing companies are 3x as
likely to embrace
a culture of experimentation than underperformers.
The i2020 research shows B2B firms in
general are more experimental than B2C
companies (40% versus 13%)
To get a handle on the future, market
researchers traditionally focused on
the past
Most firms today have shifted substantial
attention to studying
the present, monitoring consumers in real time to
anticipating what they’ll do next.
The most sophisticated are pushing harder, using predictive analytics and other technologies, along with new organizational structures, to both anticipate and influence behavior.
The most influential insights functions focus as much on __ as on data
strategy
• Indeed, i2020 found that 79% of insights functions at over-performing companies participated in strategic decision
making at all levels of the organization
• CMI’s action orientation manifests itself in two broad ways: in its specific recommendations to other functions and in the recruitment and training of “action-oriented” employees.
Whole-Brain Mindset
• A culture that breaks from the past is needed
• Today’s insights teams must think holistically,
exercising creative, right-brain skills
• High-performing organizations are particularly
adept at integrating the creative and
analytics approaches
• Achieving balance between right and left
brain thinking requires a 2 pronged effort:
recruiting whole-brain talent and encouraging
the mindset across the existing organization
Business Focus
• Historically, organizations’ right-brain
thinkers (i.e. marketing creative teams)
have not naturally focused on the
business side
• i2020 found that respondents from highperforming firms were much more likely
than those from low-performing firms to
believe that their insights functions were
business-focused
Storytelling
• The i2020 research imparts a final lesson
about what makes for a strong insights
engine: good storytelling
• At over-performing firms, 61% of surveyed
executives agreed that people in their
insights functions were skilled at conveying
their messages through engaging
narratives
Four Building Blocks
Access Sources
Develop Strategies
Execute in Real-Time
Engage Partners
Building an Insight Engine Requires Alignment
Structure
People
Tools
Processes
People
People with critical competencies such as business acumen, storytelling and a whole-brain mindset, that embrace a culture of experimentation and crossfunctional collaboration
Structure
Insights as an independent function
mirroring Marketing, with clear
accountability, resulting in less
debates
Processes
Clear processes that enable teams to play an integral role in the business planning cycle, turning data into action and shifting s from
hindsight to foresight
Tools
World-class tools enabling teams to effectively synthetize data and act as a guardian of data quality / reliability
