Top Digital Transformation Trends and Priorities for 2016 - PowerPoint PPT Presentation

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Top Digital Transformation Trends and Priorities for 2016

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  1. The Digital Transformation Helping Your Company Thrive in the Digital Era Charlene Li, Principal Analyst Altimeter, a Prophet Company @charleneli charlene@altimetergroup.com January 26, 2016 Proprietary and confidential. Do not distribute.

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  3. What are the Important Trends? With limited time and resources, what should you focus on in 2016? What are crucial areas to focus on to drive digital transformation? What can we safely ignore? 3

  4. Drives Measurable Business Value 4

  5. Technology Maturity Adoption Rates Internet of Things Virtual Reality Social Cloud Data Mobile 2020 2005 2010 2015 5

  6. Top 10 Priorities for Digital Transformation in 2016 Top Priorities 1 Customer Experience 2 Culture & Leadership 3 Content Strategy 4 Digital Ecosystem 5 Paid Social Watch and Prepare 6 Wearables 7 Visual Web 8 Internet of Things 9 Artificial IQ 10 Virtual Reality 6

  7. 1. Customer Experience Everything that you do (and don’t do) impacts the brand Priority: Map out and use the digital customer journey

  8. Customer Journeys Are Not Connected to Digital Transformation Which best describes your company’s efforts around the customer journey/experience? The need to do so hasn’t come up or been made a priority Is your organization undergoing a digital transformation? No We’ve talked about the need to do so but no one has taken the lead yet 12%3% 12% We are researching customer behavior now and waiting for results to inform our digital transformation strategy We have not officially researched the digital customer journey but we have updated digital touch points with new social and mobile technologies and investments 12% 42% 25% We have completely mapped out the customer journey within the last year and have a clear understanding of new digital touch-points 88% Yes Source: Altimeter Group Digital Transformation Study, 2014. 8

  9. Nordstrom’s purpose: To provide a fabulous customer experience by empowering customers and the employees who serve them. 9

  10. The Top 50 Relentlessly Relevant Brands 21 31 41 11 1 22 32 42 12 2 23 33 43 13 3 24 34 44 14 4 25 35 45 15 5 26 36 46 16 6 27 37 47 17 7 28 38 48 18 8 29 39 49 19 9 30 40 50 20 10

  11. Relentlessly Relevant brands have four key characteristics CUSTOMER OBSESSED DISTINCTIVELY INSPIRED PERVASIVELY INNOVATIVE RUTHLESSLY PRAGMATIC

  12. Creating Next Generation Consumer Experiences Traditional Journeys Next Gen Experiences • Personas • Behavior-based segments • Linear • Unpredictable, shared • Optimization focus • Strategic focus • Functional • Emotional • Episodic designed • Continuously designed • Static • Dynamic, real-time • Survey & heuristic based • Data-based 12

  13. Sephora’s Marries Digital and Retail Data for Customized Experiences 13

  14. An Ethical Data Strategy Becomes a Brand Issue 14

  15. This isn’t a Technology Problem 15

  16. “You’ve got to start with the customer experience and work backwards to the technology.” - Steve Jobs

  17. The Customer Experience Cloud 17

  18. 2. Culture & Leadership Priority: Support and amplify your brand internally

  19. Biggest Challenges of Digital Transformation 19

  20. Better Employee Relationships   Better Customer Experiences   Better Customer Relationships 20

  21. Employee Engagement Has Very Slowly Improved US EMPLOYEE ENGAGEMENT Figures show are for February of each year 52.0 50.8 50.8 50.4 50.3 32.9 31.4 30.5 30.4 28.1 19.9 19.1 18.8 17.8 16.8 2011 2012 2013 2014 2015 Engaged Not engaged Actively disengaged Source: GALLUP 21

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  23. The Engaged Leader Framework Listen at Scale Share to Shape Engage to Transform 23

  24. “I don’t have the time.” 24

  25. “It’s not about me.” 25 #MKTNATION

  26. “It’s marketing’s job.” 26

  27. “I don’t want to get my company in trouble.” 27 #MKTNATION

  28. 3. Content Strategy Priority: A cohesive strategy that address content needs across the organization

  29. Do You Have a Cohesive Content Strategy? 29

  30. Content Management Team The Content Management Team: • Turns customer insights into relevant content. • Hosts digital/creative assets. • Sets governance for how content is used. • Establishes guidelines for consistent voice, message and tone. • Looks for integration between paid, earned and owned content. Case Study: Nespresso • Sets governance for content production process, guidelines for tone, visuals and messaging • Orchestrates content across PR, customer service, local markets and commercial teams. • Works closely with CRM and customer insights group 30

  31. Be Clear About The Purpose of Each Type of Content 31

  32. 4. Digital Ecosystem Rationalization Priority: Break social and digital silos, distribute digital throughout the organization and leadership

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  34. Break Down Silos to Align Customer Experience Priorities • Different KPIs lead to competing efforts • Consumer data lives in silos, each department has partial insight • Same channels have disparate content 35

  35. Key Players in Digital Transformation CIO CMO CHRO 36

  36. 5. Paid Social Priority: For Marketers, take a measured approach to paid social’s place in the strategy and budget

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  38. Three Key Issues Around Paid Social Paid Social Ads Social Customer Care Social Community Management Will brands shift resources from engaging customers through community management to paid social for reach, and shift engagement to social customer care? 39

  39. Three Key Issues Around Paid Social Employee Advocates Paid Social Ads Or will the rise of employee advocacy increase reach and thus reduce social ad spend? 40

  40. Three Key Issues Around Paid Social Brand Marketers Digital Advertising Paid Social Ads Will brand teams continue to use social at the top of the sales/marketing funnel? Or will digital advertising use paid social ads to drive e-commerce? 41

  41. 6. Wearables Why Wait: Primarily health/fitness use cases Why Act: Develop content that can be consumed on these emerging platforms

  42. Few Wearable Categories Will Break Out Beyond Health – Marketing Opportunities Will Be Scarce Have a strong content strategy and capabilities to take advantage of emerging platforms 43

  43. 7. Visual Web Why Wait: Technology to identify and analyze your visual brand are still nascent Why Act: Your brand is under fire/being lauded/ignored and you don’t know

  44. How Is Your Visual Brand Being Used? 45

  45. 8. Internet of Things Why Wait: Standards are a complete mess Why Act: Post-purchase experiences and opportunities to build loyalty/advocacy

  46. Diageo piloted connects bottle to smartphone campaign for a personalized content experience • 72%  sales during pilot • Expanded program to 6 countries • 100k unique QR code downloads •  supply chain efficiency/visibility 47

  47. 9. Artificial Intelligence Virtual Assistants Why Wait: Still very early in development Why Act: Build trusted relationships with recommendations/ads via AI-powered virtual assistants

  48. Place Voice Artificial Intelligence in the Context of The Customer Experience and Ethical Data Use 49

  49. 10. Virtual Reality Why Wait: Proprietary platforms are just launching this year, standards are still emerging Why Act: Study and develop new storytelling capabilities