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Human: How A Human-Centric, Collaborative Approach Can Unlock Potential in Marketing and Business
Human: How A Human-Centric, Collaborative Approach Can Unlock Potential in Marketing and Business
Only
Human
How a human-centric, collaborative
approach can unlock potential in
marketing and business.
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Aqueduct / Only Human
Everyone knows
that technology is
changing the world
at an incredibly
rapid rate.
But how fast are
things moving —
and more importantly,
what are the impacts?
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Introduction
The cycle of corporate birth and death has accelerated. While
it took 75 years for the telephone to have 100 million users, the
mobile phone only needed 16 years to reach this number while
the internet took just seven.1 But it took less than a month for
Pokemon Go to reach this number.2
Since the birth of Moore’s Law, almost also between each other. Marketing
all aspects of technology (and often, academic Philip Kotler has suggested that
their adoption by consumers) have seen rather than identifying and approaching
exponential growth. To match this, there are customers through segmentation and
companies which have grown at trajectories targeting, brands should think first of
which are also blazingly fast. At the time of communities of people; he also suggests
writing, there are 186 ‘unicorns’ - startups the traditional 4Ps of marketing should be
which have achieved a valuation greater replaced by the four Cs of co-creation,
than $1 billion. 3 But unicorns are rare, currency, communal activation and
meaning there is a much more common conversation. 5 Now that trust worldwide
story. For companies which established their has hit a new low, this approach is even
place in the market before the emergence more significant. 6
of the consumer internet, this change in
pace has been very challenging. While the So what is the answer?
average human lifespan has increased from
61 to 75 years since the 1930s, the average Until computers become truly smarter
age of companies on the S&P 500 Index has than human beings (a point in the future
decreased from 75 years to just 15. 4 Sadly, dubbed as ‘The Singularity’), new digital
firms which fail to adapt have been pushed products will not be invented by themselves.
towards extinction. This means that people are the answer. In
a world of both personal and corporate
What has led to this accelerated change, this is the common thread.
state of change? Behind every digital interaction or the
creation of an online experience, there
The flow of information, communication are people. And by understanding this as
and commerce is easier than ever before. a fundamental principle, companies can
The barriers to entry for new products create foundations which enable them
and services has never been lower. With to succeed. Technology is just a tool, not
the adoption of smartphones and other an answer in itself. Without the context of
digital technology, it is extremely easy for a people to use and interact with it, there is no
customer to find the same or similar product purpose. Indeed, the so-called ‘Fashionistas’
or service from another company. of the digital world (i.e. those who adopt
The use and adoption of ecommerce, shiny technology without managing it
search engines, reviews and customer properly) see a drop in profitability of
forums means it is very easy to switch and 11%.7 This report explores three areas that
buy from another brand. Incumbents that focus on both the interactions customers
provide experiences that lag behind more have with brands and the interactions that
innovative competitors and startups will brands have internally with their agencies
lose out. The ‘Lean Startup’ is a risk to the and partners. We highlight the difference
legacy giant. As a result, brands today must between the promise of new approaches
be transparent. Consumers not only have versus the reality when brands get it too
two-way conversations with brands, but wrong too often.
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Source: http://media-publications.bcg.com/BCG_Technology_Advantage_April_2015.pdf
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Big data as a
term has existed
since the 1990s.8
Since then it’s gone
through various waves
of popularity and
awareness, from
reaching the top of
Gartner’s Hype Cycle
to disappearing
all together.9
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in one end of a black box to take money In this context, teams which understand
(from higher conversions or order values) their users and can create experiences
out of the other side. Doing so might turn in line with their needs will be those that
a profit initially, but it comes at the cost succeed in the long term.
of losing touch with your customers.
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It is clever
It is helpful
It is motivating
(to click or buy)
It is surprising
It is relevant
It is creepy
It is annoying
It makes me
angry
It is intrusive
3 times
It is distracting 4-5 times
10+
Source: http://www.inskinmedia.com/wp-content/uploads/Whitepaper_Familiarity-Frequency-and-Fine-Lines_for-site.pdf
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Key considerations
1 Research and understand your customer. This will allow you to start thinking
creatively about ways in which you can personalise their experience. User stories
with ‘soft’ and ‘hard’ elements can be a highly effective outcome of this research.
2 Think of interesting forms of data to use - and inferences on that data. Attempts
at personalisation are all too often simple. Weather, Facebook likes, geography,
past purchases, search history, and even sports scores can be used.
3 Set frequency caps for your online advertising and cancel retargeting on
shoppers who have completed a purchase. Test your creatives on real people
to see their response.
1
http://media-publications.bcg.com/BCG_Technology_Advantage_April_2015.pdf
2
https://www.appannie.com/insights/mobile-strategy/pokemon-go-an-opportunity-not-a-threat/
3
https://www.cbinsights.com/research-unicorn-companies
4
http://www.slideshare.net/MelinaGouveia/didier-bonnet-senior-vice-president-global-practice-leader-digital-transforma
tion-capgemini
5
Kotler, P. et al (2016). Marketing 4.0. London: Wiley
6
http://www.edelman.com/trust2017/
7
https://www.capgemini.com/resource-file-access/resource/pdf/The_Digital_Advantage__How_Digital_Leaders_Outperform_
their_Peers_in_Every_Industry.pdf
8
https://bits.blogs.nytimes.com/2013/02/01/the-origins-of-big-data-an-etymological-detective-story/?_r=0
9
https://www.datanami.com/2015/08/26/why-gartner-dropped-big-data-off-the-hype-curve/
10
http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/big-data-the-next-frontier-for-innovation
11
https://econsultancy.com/reports/the-realities-of-online-personalisation-report
12
http://www.inskinmedia.com/wp-content/uploads/Whitepaper_Familiarity-Frequency-and-Fine-Lines_for-site.pdf
13
https://twitter.com/jamielow/status/189760204513083394
14
http://www.netimperative.com/2016/11/video-case-study-toyota-usa-makes-100000-versions-facebook-ad/
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https://econsultancy.com/blog/67889-how-waitrose-is-using-personalisation-to-increase-conversions/
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Social media also plays a big role. Online reviews are another area where
Research by analysts at Forrester shows brands can fall. While some miss out on
that across a number of categories, those the opportunity to use them, the use of
who engage with a brand through social fake reviews can lead to reduced trust.
media are more than twice as likely to Companies need to also tread lightly on
have made a purchase in the last 12 using incentives, particularly given recent
months. Those who use social media in research by ReviewMeta which showed
brand interactions are also more likely to incentivised reviews on average rate
turn to social (37%) than a brand website products .38 stars higher - leading Amazon
(27%) when it comes to deciding which to ban the practice. 23 Strangely it actually
product or service they will use or buy.19 makes better business sense to accept the
However, not all branded content on presence of negative feedback. More than
social media or product reviews perform two-thirds (68%) of consumers trust reviews
as they should, with many either failing to more when they see both negative and
engage appropriately with the audience positive reviews, while consumers seeking
or encouraging reviews that can reduce out negative reviews have almost twice
trust. An example that demonstrates a lack the conversion rate. 24
of personal understanding comes from
Morgan Stanley, which initially only allowed Negative reviews are also an opportunity to
its brokers to tweet using a pre-approved list show your business cares. By responding to
from the compliance department. 20 While and fixing problems, your future customers
they can now tweet more openly (after will see that if something does happen to
completing an online training course), such go wrong, you will do your best in making
an approach such an approach failed to it right.
understand how a confined approach would
not build trust, aggravating perceptions at
a time when banks needed (and still need)
to build bridges.
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Source: https://blog.reevoo.com/ebook-bad-reviews-good-business/
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Kia Trafalgar
While Kia’s customers knew that Specialising in guided tours and
their cars were reliable and affordable, escorted vacations, Trafalgar knew
their brand perception was poor. it offered a great service to its
customers but wanted to ensure
In order to change this, Kia worked visitors to its site were reassured of
with independent review site Reevoo the quality of its holidays.
to collate thousands of unedited and
uncensored reviews and put them all Research uncovered that customers
in one place for potential customers to booking a holiday aren’t using a trip
see. The approach was so successful as the end in itself. People book
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holidays to alleviate the stress of this with the tag line “Our guests love
work, create a romantic environment us”. They also showcased their award
in which to propose or improve a of Best Escorted Tour Operator from
relationship, or catch up with friends the Telegraph, noting this was based
away from the daily grind. As such, on 75,000+ readers. And to create
there is a huge responsibility on travel further proof, they encouraged the use
companies, and those without wide of the hashtag #simplytrafalgar and
brand awareness might not be as pulled in Instagram posts and social
trusted at face value v as others. media photos that guests took while
on holiday. This approach has led to
To solve this, Trafalgar decided to a marked increase in the number of
put its customer reviews and social bookings made through the website
proof at the heart of its website. To do and allowed Trafalgar to expand its
this, they partnered with independent loyal customer base.
review site Feefo to collect more than
13,000 reviews which had an average
satisfaction rating of 97%, highlighting
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Key considerations
1 Speak to your customers in the way they want to be spoken to. Feel free
to experiment, but don’t fake a tone of voice just because it’s fashionable.
4 Identify those that are especially loyal and vocal about your brand. Give
them a platform from which to share and encourage them to do even more.
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https://econsultancy.com/blog/9366-ecommerce-consumer-reviews-why-you-need-them-and-how-to-use-them/
17
http://www.pewinternet.org/2016/12/19/online-reviews/
18
http://www.demandgenreport.com/resources/research/2016-b2b-buyer-s-survey-report
19
http://static.ow.ly/docs/REPORT_Forrester_Best_Customers_1xJ0.pdf
20
https://www.ft.com/content/77e52974-bf08-11e1-8ccd-00144feabdc0
21
http://www.thedrum.com/news/2016/02/01/house-frasers-emojinal-social-media-campaign-invokes-ridicule
22
https://econsultancy.com/blog/63901-the-top-16-social-media-fails-of-2013/
23
https://reviewmeta.com/blog/analysis-of-7-million-amazon-reviews-customers-who-receive-free-or-discounted-item-much-
more-likely-to-write-positive-review/
24
https://blog.reevoo.com/ebook-bad-reviews-good-business/
25
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/11630738/Giffgaff-the-bonkers-mo
bile-network-proves-that-the-crowd-can-run-your-business-for-you.html
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https://econsultancy.com/blog/66107-three-award-winning-marketing-case-studies-from-the-digitals/
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Amongst the
many definitions of
‘Digital Transformation’
there’s one thing
that’s agreed on...
The team you
construct & practices
you employ are what
will affect change the
most. Co-Creation is
key to doing this.
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Co-Creation and
Digital Transformation
At the beginning of this report, we described how the lifecycle
for businesses has rapidly accelerated through the growth
of technology. While the previous two sections discussed the
external customer — facing elements, it is also vitally important
to understand the internal aspect that create them. The term
‘digital transformation’ has been used to describe the ways
in which organisations are looking to change themselves
to become fit for the digital age. But a whole number of
definitions exist:
“What is important to say is that (digital transformation) is not big IT... we are not
talking about £40m/£50m projects that require four years and almost certain
failure. What we’re talking about are small incremental steps based around proof of
concepts, based around agile methodology, based around engagement with
users who will use the service.”
Despite these all having a slightly different often cited are the practices within agile
focus, there are common themes that approaches to software development,
almost all practitioners use. Perhaps most in particular the emphasis on teamwork,
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Key considerations
1 Place customers at the heart of your transformation efforts. Carry out user
research to identify the pain points they are suffering. Session videos and
recorded interviews can be very powerful in winning over even sceptics.
4 Start a few experiments to prove the case for co-creation and digital
transformation. Make sure any teams have the space and freedom to
test the waters without traditional barriers.
27
http://sloanreview.mit.edu/article/the-nine-elements-of-digital-transformation/
28
https://www.marketingweek.com/2016/04/14/what-does-digital-transformation-really-mean/
29
https://www.holyrood.com/articles/feature/tech-100-digital-transformation-doesnt-mean-were-talking-about-big-it
30
http://altimetergroupdigitaltransformation.com/img/dt-report.pdf
31
Teasley, S. et al (2000). ‘How does radical collocation help a team succeed?’. Proceedings of the 2000 ACM conference on
Computer Supported Cooperative Work. 339-346.
32
Edmondson, A.C., Dillon, J.R. and Roloff, K.S. (2006). ‘Three perspectives on team learning: outcome improvement, task mas
tery and group process.’ The Academy of Management Annuals 1. 269-314.
33
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/60993/Martha_20Lane_20Fox_s_20let
ter_20to_20Francis_20Maude_2014th_20Oct_202010.pdf
34
https://www.gov.uk/transformation
35
https://gds.blog.gov.uk/2015/10/23/how-digital-and-technology-transformation-saved-1-7bn-last-year/
36
See Kotter, J. (1996). Leading Change. Cambridge, MA: Harvard Business Press
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What next?
This report has covered just three areas which we feel
highlight the need for a human-centric approach in marketing
and business today. But we believe that understanding people
is critical across every area of business.
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