You May Also Like
Data-Driven Commerce: Winning at Commerce in the New Digital Economy
In Data-Driven Commerce: Winning at Commerce in the New Digital Economy, we examine how brands can use data to enhance every facet of their commerce strategy: availability, findability, buyability and repeatability. By the end of 2020, retail e-commerce sales are expected to reach $4.21 trillion (USD) worldwide.[i] Although transactions happening offline will still represent more than 80% of the estimated retail sales, growth is shifting to e-commerce with a sales progression close to five times stronger than the rest of commerce[ii] and sustained by the growing dominance of mobile (67% of e-commerce sales[iii]). As 72% of people in developed markets and 83% in emerging markets declare they are more likely to do their shopping online in the next year compared to the past year,[iv] what should marketers do to seize the full potential of commerce in the new digital economy? We surveyed 100 global marketers to learn more about how they currently perform in their commerce efforts, ranking their answers across each dimension of iProspect’s Commerce Success Framework (CSF). The report builds upon the results of this State of Commerce Maturity survey to explore how brands can fuel their growth by using data to grow their capabilities in each aspect of the CSF model. Feedback confirmed that most brands are actively building upon their performance marketing heritage, adapting their skills and technology to secure the availability (2.99/5) and findability (3.17/5) of their proposition in the commerce sphere. Notwithstanding these efforts, they are having a harder time converting (2.35/5) and retaining (2.62/5) their audiences, and only a few have taken the plunge into commerce-specific technology (less than half - 46% - use Product Information Management and only one out of five - 21% - use digital shelf analytics). Asia-Pacific leads the world in every category, and industries that traditionally have access to more data (e.g., Travel & Tourism) scored significantly higher than those whose performance has been tied to offline channels such as the Food & Beverage and Media industries. The report also includes exclusive interviews and insights from leading brands and platforms such as Danone, Google, KLM, Jumpshot, Pinterest, Beiersdorf, Jumper.ai, Diageo, Revuze and Saucony. Chapter One: Availability, Meeting Consumers Where They Really Are Although being online may have once seemed sufficient evidence of availability, too many brands spent years simply trying to get consumers out of their daily routines and into the brands’ own ecosystems without properly assessing the influence and roles of other environments in the shopping experience. This section explores ways marketers can use data to better understand how consumers navigate between shopping environments, make the most of their product inventory at scale, and monitor the activity of third-party sellers and illegitimate resellers. Includes exclusive contributions from: Steve Kraus, Head of Digital Insights, Jumpshot, on how data can provide comprehensive insights into digital behavior. Beatrice Lindvall, Global Head of Media, Danone, and Tom Verbugt, Global Director E-Acquisition, KLM Royal Dutch Airlines,on integrating data into the organisation, bringing various disciplines together and collaborating with agencies in the future. Chapter Two: Findability, Ensuring Relevant Visibility When It Matters To emerge in the ocean of search engine result pages and product listings, marketers need to ensure their brands speak the same language as consumers and are visible to shoppers at the right time with the right message. This section delves into the metrics marketers should consider before launching advertising campaigns, how harnessing data on their competitors’ marketing activity can give them the edge, and how to inspire people through discovery. Includes exclusive contributions from: Jenna Spivak Evans, Global Go-To-Market Lead for Shopping & Assistant, Google, on how marketers can use data to capture demand. Jesus Valdelamar, Head of Consumer Planning & Marketing Communications, Diageo Mexico, on looking beyond online transactions. Vikram Bhaskaran, Global Head of Vertical Strategy and Marketing, Pinterest, on the importance of Return on Inspiration. Chapter Three: Buyability, Differentiating Products from the Competition Now that digital shelf and product detail pages have replaced flashy packaging, compelling content, competitive pricing and promotions are crucial to differentiate a brand from its competitors and nudge users into purchasing. This section covers how product page content needs to be optimised to appeal, convince, reassure and capture the sale. It will also discuss how data can help maximise the opportunities in fast growing environments, and how retail analytics can help brands connect the dots between their online and offline shopping experiences. Includes exclusive contributions from: Yash Kotak, Chief Executive Officer, Jumper.ai, on the most important components to a successful social commerce strategy. Don Lane, Global Chief Marketing Officer, Saucony, on integrating brand and e-commerce messaging. Chapter Four: Repeatability, Building a Relationship with the Consumer Beyond the First Sale Brands need to make sure they deliver an excellent customer experience so that consumers become lifetime repeaters. In fact, marketers believe maintaining and improving the quality of the purchase experience and after-sales service is their priority for increasing trust in their brand in 2019.[v] In their quest for loyal repeat customers, it is paramount brands pay particular attention to user feedback and engage customers beyond the sale. This section explores how marketers can leverage product reviews and sentiment analysis to improve their proposition, and how they can increase customer lifetime value in a world where brand loyalty is non-existent. Includes exclusive contributions from: Boaz Grinvald, Chief Executive Officer, Revuze, on the data sources marketers should consider exploring and the ways they can turn data into intelligence for every stakeholder across their organisation. Santiago Nettle, Regional Marketing Director Northern Cone, Beiersdorf, on creating relationships and generating loyalty. DOWNLOAD THE REPORT SOURCES: [i]eMarketer, Retail Ecommerce Sales, Worldwide, 2019-2023, May 2019 [ii]eMarketer, Total Retail Sales, Worldwide, 2019-2023, May 2019 [iii]eMarketer, Retail Mcommerce Sales, Worldwide, 2019-2023, May 2019 [iv]Dentsu Aegis Network, Digital Society Index 2019, April 2019 [v]iProspect 2018 Global Client Survey, October 2018 05 min read
Future Focus 2019: Searching for Trust
In Future Focus 2019, we examine how brands that are built on credibility, relevance, and reliability will see trust as the very foundation for their success in the digital economy. The digital economy has brought new opportunity for development and innovation in every business sector. While the majority is “good innovation”, we continue to see a significant gap at a societal level, driven by a continued disparity in access to technology based on socio-economic factors. In today’s hyper-sensitive media landscape, how should brands and publishers navigate the notion of truth and authenticity? We interviewed more than 300 global marketers and leaders across a broad spectrum of brands, including FTSE 100 and Fortune 500 companies, and used the real-time responses to outline key insights and priorities necessary for businesses to thrive in our fast moving, high expectation digital economy. Feedback shows that trust is at the forefront globally with 88% of marketers making trust in their brand a priority in 2019. Marketers see gaining consumer trust as vital to business growth with 76% stating that trust is important to keep consumers buying their brand. Digital will play a clear role in this with 60% believing that the rise of AI will increase consumer trust as it allows for more relevant and personal experiences. 83% don’t believe brands will dominate over convenient experiences in the future 62% don’t have a proactive role in approaching online reviews, although they think reviews represent the greatest risk to consumer trust 62% say the quality of their purchase experience and after-sales service will be a priority for 2019 69% think the rise of digital assistants represents an opportunity to become closer and develop stronger relationships with consumers The report also includes exclusive interviews with global leaders from businesses, such as The New York Times Company, IBM, Microsoft, Hilton, The Economist, Rachel Zoe, Inc., IKEA, and AccorHotels. Chapter One: Credibility in the Age of Doubt Outlines the role of purpose in the digital economy and how immediate benefits for brands will be bestowed to those who can use digital to build and reinforce their credibility in the eyes of consumers. By protecting the integrity of their brand online, communicating their values, and leveraging the power of technology, brands will see a steady increase in trust of their brand. Includes exclusive interviews with: Mark Thompson, CEO and President, The New York Times Company, on leading the battle against misinformation and fake news. Armin Molavi, Interim VP Media, Hilton, on trust in the travel industry, social responsibility and the new place for data. Mark Cripps, Chief Marketing Officer, The Economist, outlines opportunities in the new value exchange and the notion of being data-responsible. Chapter Two: Relevance in the Age of Noise Explores the rise of shrinking consumer attention and an increasingly fragmented consumer landscape. Successful brands will be those who focus on relevant experiences, outplay the influx on digital content, and make the most of the Assistance revolution. Includes exclusive interviews with: Vanja Mlaco, Digital Growth Strategist, Transavia, on the importance of putting the consumer ahead of conversion, and using technology as a goal, not a means to an end. Carrie Seifer, Vice President and Chief Revenue Office, IBM Watson and Weather, on the unstoppable rise of AI and how trust and transparency must underpin all action. Laurent Tiersen, Country Marketing Manager, IKEA UK & Ireland, on the constant focus on staying relevant to their customers. Jonathan Foster, Principal Experiences Manager, Microsoft, on how he builds Cortana, using personality goes a long way to building trust, and using art to show humanity to humans. Chapter Three: Reliability in the Age of Convenience Focuses on the rise of convenience as it intersects with the more traditional power of brand, and highlights the subtle balance between building brands and designing highly convenient solutions. Successful companies will dominate by focusing on the convenience of their digital properties, media assets, and presence on third-party reseller platforms. Includes exclusive interviews with: Antoine DuBois, SVP Marketing Global Strategy, AccorHotels, on the convenience, artificial intelligence and the war for talent. Rachel Zoe, CEO, Rachel Zoe Inc., on navigating the rise and influence of digital in the fashion and luxury landscape, and why adaptability is key. DOWNLOAD THE FULL REPORT Trust. It's not an issue; it's the issue. 04 min read
Is In-housing Right for your brand?
As we begin 2019 we wanted to take some time to look back at one of the biggest trends which we expect to continue throughout this year and beyond: In-housing. Last year several of our clients came to us to begin discussions about the prospect of in-housing elements of their digital media. In this blog post we look at some of the factors a brand should consider when deciding whether to in-house. The process is not for the faint-hearted and should not be reached without careful consideration and having full support of the wider business through expectation alignment and management. Before deciding whether to in-house or not, first ask yourself whether the organisation is structured correctly, whether you fully understand the implications and complexities of in-housing and whether you can dedicate the time and resource to the process. It would be easy to follow the momentum in the industry and jump into in-housing. But not every business needs to in-house. There are a multitude of reasons a brand might decide to in-house and knowing your organisations motivation is a good place to start in understanding whether in-housing is right for you. Perceptions about the potential savings or benefits of in-housing are often misguided, for example, believing you can save agency fees by in-housing needs to be weighed up against the potential loss in ways of working, learnings and the expertise a brand receives from an agency relationship. It may be that instead you need to review how you work with your current agency partner. We have defined five insourcing models, these range from agency owned models where the brand owns the tech, but the agency delivers all activation, through to various hybrid models, brands owning everything in-house and the agency providing strategic and advisory support. During the initial stages of in-housing, we work closely with clients on a “Pre-Discover” phase, defining business cases, expectations, organisational buy-in and agreeing on the best operating model to achieve a brand’s objectives. The “Pre-Discovery” phase helps avoid other pitfalls by aligning the wider business and ensuring sufficient stakeholder engagement. A crucial part to this process and something we can’t emphasis enough, is the relationship with your existing agency. It’s short-sighted and potentially catastrophic not to engage your agency in the process. We understand that notifying your agency of a desire to in-house can be challenging, but your agency should be thought of as partners and be integral to the success of the process. Finally, we have outlined some questions to begin asking yourself to help you decide whether in-housing is right for your business. Technology: Does my business have the right tech in place? What tech should the business adopt, that it does not already have in place? People: Which kind of experts do I need for this project? In which geographical areas can I find them? What talent retention approach does my business need to put in place? Which kind of corporate culture changes might be needed? Ways of working: How can I establish the similar ways of working that I had with my agency? E.g. cooperation and an exchange of learnings. Change management: How can I implement this huge change in the best way for my business? What impacts could I potentially face? What is the best path for my people to adopt and embrace the change? The iProspect Consult team have strong a strong track record of finding the right solution for brands that are seeking to in-house. If you are thinking about in-housing or are interested in hearing more, get in touch with the team to hear how we’ve been supporting other clients. 04 min read