Digital Transformation Starts and Ends with a Digital Architecture

The implementation of business transformations within organisations, and especially digital business transformations, is growing to a peak level right now. Chief Information Officers and Heads of Transformation are stepping in to: “digitally enable businesses”, “implement customer self-service channels”, “put the customer at the centre/focus” or just to simply “be more digital” (whatever that means).

However, when you ask these organisations what they are doing to change their internal systems and technical architecture design to facilitate this change, many either go quiet or simply utter something such as “it’s not about technology, it’s mainly about people”… Which I have worked out to actually mean “that technology stuff isn’t as interesting as building something nice & glossy I can show to the board”.

But let’s flip this around for a minute…

Digitally enabling your business usually means taking control of the data in your organisation and enabling it via online technologies. Yes, it does therefore mean the creation of some sort of new database or cloud-based big data lake that can then have modern web services integrated to it, so that some or all of this can be presented within a browser interface.

Implementing customer self-service channels, typically boils down to pretty much the same thing.  Web services and functionality are (securely - obviously) exposed to external customers via web and mobile App channels, so that contact centres or telesales operations can be scaled back or redeployed to different tasks. This also usually comes with a more onerous set of performance & availability criteria, so that a (near) 24/7 service can be offered to customers. However, presenting these services to real users also means that the systems behind-the-scenes need to be able to scale and adapt to changing user demands. Just plugging a rich user interface into a legacy system and hoping for the best is not digital architecture, it is digital anarchy.

Putting the customer at the centre of a business is an easy thing to say and a much harder objective to implement. Most organisations have been created to make money and therefore have lines-of-business designed to perpetuate this purpose. Consequently, technology systems are developed to support these structures and maintain the status-quo, rather than re-orientate things to make sense to the customer or help facilitate their engagement. It might be the ideal, but very few companies actually have end-to-end integrated systems that enable a single customer to be consistently tracked throughout their entire lifecycle. In short, creating technology to enable a customer to be in the middle of a business isn't always as easy as the sales PDF brochure states, especially if you don’t have a decent vision of how these systems need to work together.

So what can a decent technical architecture do for your company’s digital transformation?

It can provide a stable backbone that can support your technical & process change objectives. It can facilitate agile incremental delivery based upon re-usable components. It can help your business grow by supporting integration of other online services, API’s and data sources.

If you’re planning any of this, can you afford to NOT have the right digital architecture?

Think Like A Start-Up

In my recent session at the Marketing Society I talked about the need to think like a start-up.

I'd therefore like to clarify further what I mean by this:

1. Support a test & learn culture
I was once told "The biggest issue with failing in not failing.... it is failing to pick yourself up again afterwards", but this is only part of the approach you need. You must also foster a culture that supports failure when it inevitably does happen, by encouraging innovation and testing to find out what works (and learning from those things that don't).

2. Be prepared to pivot
Accepting you are wrong is a humiliating experience and it is also a viable business strategy if your proposition or market isn't working. Lots of start-ups have changed their business model or product to suit a better customer need.

3. Learn from everyone you can
Big businesses tend to know a lot about their current situation (e.g. their products and typical customer attitudes & other insight). However start-ups learn quickly... they have to. But in my opinion it is their approach to fast learning that interests me.
They ask everyone, from people who have used their website or app just once... through to mentors and others who have done similar things many times before.
They ask about their product or service: what people liked, what they didn't like and more importantly how it could be improved.

Does your company do these things?

Change is the only constant @haydens30 #digitalday2015 think nimbly, think like a start up pic.twitter.com/f3JEhm9zDG

— Tiffany St James (@tiffanystjames) October 1, 2015

The Future of Digital - thoughts Part 1

Following on from some questions I was asked at the Marketing Society's Digital Day 2015, I have decided to write-up my thoughts on the future of digital.

This basically takes the questions I was asked on the day and answers those here.

Q: What are you expecting audience engagement to look like over the next 5 years?

An increasingly demanding and savvy customer:
We have to meet the needs of a customer who more & more have either grown up with digital technologies or adopted them & lives online.  Regardless of channel, location and device the customer now expects a response in the next 3 seconds or they get frustrated, in 5 seconds.... forget it.

Forget about generic messages, they won’t cut it anymore
Sending & providing the same information to everyone is going to have less & less effect, relevancy is key. This obviously creates an issue for those who do not have technology & marketing systems integrated.

Have an acute focus on the customer

Understand each touch-point with your prospective or returning customer and then do everything within your power to minimise their frustrations and maximise their delight. Your website, mobile app, kiosk and should be optimised continually to make them better… if you don’t, your competitors will!

Customer Data Is Essential To A Digital Strategy

The cornerstone of any Digital Transformation Programme, to move an organisation to a place of improved digital maturity, is customer data

The collecting, storing, processing, analysing and presenting of data collected about your users needs to be a fundamental requirement. From data comes an understanding of who your customers are and what they are doing.

Who they are:
(Typically obtained from account / registration database)
Address
Age, sex & other demographics
Communication preferences
etc.

What they do:
(Typically obtained from your online analytics package)
Device(s) used
Time of day they visit
Browsing behaviour (e.g. pages visited)
Marketing campaigns they have interacted with
Goals completed
etc.

Or put a different way... structuring your digital transformation efforts around your customer is more important than you possibly realise.

Commerce and Content – Still not fully integrated

The two disciplines of digital content management and eCommerce have been side-by-side for many years now, but why has the enterprise software / service market not yet managed to create a bunch of mature products that have both great content management systems (CMS’s) and great digital retailing service… and that are actually fully integrated into each other?

I believe the root of this problem lies in the origins and on-going management of these two inter-connected digital disciplines. Back in the dim and distant days you had two distinct silos for managing online: the digital marketing team who managed the content (text, images and increasingly rich assets such as video) and the eBusiness or eCommerce team who managed the product catalogue & payment side of things. In my opinion this has historically resulted in two different sets of people creating disparate experiences and leaving one crucially important person floundering in between… the customer.

The only thing is, the customers these days do actually notice when an online experience clashes. They quickly give up when they are struggling with a user interface that doesn't help them search, find and browse through the products they want. They try your competitor’s URL when your site doesn't connect product content with the ability to buy it in one simple action.

I therefore think the major vendors of Web Content Management (WCM) and eCommerce need to seriously take a look at their product stack. They then need to integrate & align these two areas into one compelling proposition. This shouldn't be done in half measures (E.g. by a large CMS vendor just buying up a small eCommerce product and offering it as a complex bolt-on  to their already weighty offering), in most cases this will need a complete re-think of both sides of the equation to create something that works for the customer (and the end user).

Until then, both in-house teams and the customer will continue to have a mixed experience. And quite frankly in this more mature digital age…. That’s bloody awful!

Give the customer what they want

“The customer is always right, even when they are wrong”, was the phrase drilled into me at my very first retail job, a weekend activity that furnished me with enough money to gain some independence during my late teenage years (e.g. to drive a car and to date girls clearly out of my league).

I questioned this mantra at first, asking why someone had the right to reverse common sense just because they wielded money. However, I subsequently came around to this financial perspective, especially when it earned me further work and therefore some incremental income. I had therefore succumbed to one of the pressures of modern life, I had followed the money and given the customer the control.

But now, as I consult on eCommerce projects across the globe, I find a similar situation… that the online customer is right in whatever they do, even if they don’t do what you want them to do. In other words: you can craft what you think is the best online user experience, you can come up with what you believe is the most persuasive design and you can create the most engaging content I the eyes of your stakeholders… however if the relevant customer doesn't have what they want to make their decision (e.g. to take them forward to purchase), then all your hypotheses aren't worth anything.

Digital leadership - be more than an online expert

Being a digital leader means you need to be more than just an absolute expert in one area of online technology or marketing. You may know all about PPC, display & remarketing, SEO, email , display, affiliates and social media, but this isn't enough. To truly be at (and stay at) the forefront of digital, you really need to have the following qualities or experience:

1.  A leader of people
It's not just enough to have line managed the odd eCommerce staff member or digital agency, you need to be a mentor & coach, a motivator and a decision maker who can support and build a high performing team members to do great things.

2. An all-rounder
To understand how to get the best from that team, you ideally need an understanding of all aspects of online business. From being able to produce a focused digital business case to justify further investment, through to engaging with your opposite number in the technology department... you are going to have to have a broad spread of expertise.

3. An innovator
What have you done in your career that wasn't just "me too" but truly ground breaking? Have you been creative in your delivery of a new digital platform or applied a new method or approach to a building a difficult user interface? Have you been the first in your industry to trial a new device or an advanced technology that was subsequently adopted by the rest?

4. A strategic brain
Are you able to consider the bigger picture and link your team's work to the business drivers of the wider company? The creation and ownership of your organisations digital strategy should sit with you, it's yours to manage shape and develop as the company grows in its adoption of new online technologies and practices.

5. A customer advocate
Do you know who your customers are and what their digital needs really are? Do you know why your online presence or your eCRM initiatives work well (and why sometimes they don't strike a core)? It's not just a case of hiring a user experience (UX) person to do your thinking for you... you also need to get under the skin of your users and know what drives both their loyalty & resistance.

6. A scientist
Getting data from your analytics package is a basic necessity for any online practitioner these days, but being able to dive into the dashboards and analyse the insight that the information is giving you needs more than just a little diligence. You should also have experience of carrying out multiple experiments to improve your goals, ideally from a programme of on-going AB and Multi-Variate tests.

7. A communicator
It's fine to have strong views on those topics that you are passionate about, but you also need to be able to get your ideas across in a structured and eloquent manner.... especially to senior stakeholders.

The Moments of Truth

Most savvy marketers should now be familiar with the concept of the first and second ‘moments of truth’. The idea (pioneered by P&G over a decade ago) that there are several key points in the shopper’s journey which should be recognised and supported, is now pretty much part of the vocabulary of modern retail marketing.

The First moment of truth (FMOT):
When a shopper decides to purchase an item (e.g. reaches for the product sitting on a supermarket shelf)

The Second moment of truth (SMOT):
When the shopper gets the product home and starts to use it.

More recently Google identified the Zero Moment of Truth. This was explained as being the online decision-making process that takes the multi-channel shopper from the initial point of stimulus through to the first moment of truth.

The theory is that by being aware of these stages in the buying process means, we can craft message and experiences around these points to encourage and persuade shoppers to buy.  However Google’s Zero Moment of Truth, or ZMOT as it is referred to, needs more than a brief explanation of how it actually works  in practice across the a digital world. Google's model highlights that there is now a new critical moment of decision that happens before consumers get to the supermarket shelf. That regardless of the products sold, customers and shoppers (the two terms here are pretty-much interchangeable) decision on what product to buy is made up. However, it is not necessarily persuaded by just one factor or one message via a single source… but by a complex combination of lots of messages, many of which are via digital marketing channels.
You can find out more about it here: http://www.zeromomentoftruth.com

However these models aren't really that new or revolutionary. Back several years ago I used the acronym AIDA in several posts to refer to a very similar marketing concept. This explained that there are 4 steps along the path to purchase of: awareness, influence, decision and action. This process takes the shopper up to the point when they commit themselves to purchasing… in other words up to the first moment of truth (FMOT).
In my opinion… What Google has done with ZMOT is to give a name to the two steps of influence and decision, shaped for the modern generation of multiple channel users.

Or to break it down in a way that I find easy to understand, I've created the following diagram which shows how I think these different approached come together:

eCommerce and the dehydrated mare

Ever heard the phrase “You can lead a horse to water, but you can’t make it drink”?

Well, if you leave a thirsty horse right by the water trough, make it as easy as possible for them to take what they want and show the water off in the best way possible… you are more likely to get it drinking.
The same goes for eCommerce websites, where the you have no control over the actions of a specific user… but by a clever combination of: thought-out usability, customer insight & segmentation, an acute focus on maximising customer revenue and a ‘test & learn’ approach, you stand a far more likely chance of converting prospects into customers and makin more money in the process.
There's unfortunately no one-size-fits-all model for eCommerce, but typically there are best-practice models to follow in each market sector. Understanding what works for your business is then a process of trial and error to establish what combination works best.

Remember, you may drag your customers to your site via a number of different marketing channels; but what they do when they are there is yours to shape and persuade.

How do you segment financial services customers?

In an earlier post I made it clear that I thought a certain way of segmenting customers has had its day. The method of classifying customers just by their life stage is no longer relevant, with both lifestyles and finances having moved on.

So rather than dwelling on this, I thought it better to look at ways that banks in the future could segment their customers. But to be honest, I couldn’t come up with a single simple way of segmenting financial services customers that made sense in the modern world. Nothing really fitted nicely and any possible model had loads of exceptions to the rules.

And then it struck me... that perhaps there's no longer a few simple segments that fitted all financial services customers. Perhaps this subject is just too complex to put into simple terms... or in other words, perhaps now with the advert of clever data analysis and personalisation, there's no need to segment them into a handful of categories, everyone is in their own segment!

It's therefore my prediction that banks will eventually integrate big data analytics into their CRM systems. This will develop their understanding of who each individual customer is, alongside a record of what products and services they have already got do describe how best to meet their needs.

Some financial services companies may already be on their way to delivering this vision and this should be an interesting space to watch as the use of dig data analysis takes off.

Improving the multi-channel customer experience

I recently read that that 40% of organisations cite 'complexity' as the greatest barrier to improving multi-channel customer experience (hint: it was here).This may at first seem a large proportion of companies who are struggling to either specify, deliver or improve on their multi-channel efforts... But perhaps its not entirely unexpected for several reasons:

1. Understanding the multi-channel customer IS complex

2. The technology to implement it can also be complex to a marketer or other senior exec who has not grown up with it.

3. There is no senior stakeholder commitment to push forward change. Perhaps why only 28% of companies say there is ownership of the customer experience at board or ‘c- level’ (same source)

CMO vs CIO : the battle for data

"In the future, wars will be fought over water" is a phrase you hear quite a lot these days. And it might well be true... As important global resources become more scarce and as rulers realise exactly what matters (in this case, the health of their population).

However, in the boardrooms across the world, there may well be a number of battles. But this time fought over something very important to both technologists and marketers. Data. More precisely, customer & user data, along with any associated information that helps the organisation function / sell / behave better. Consequently, there is a scenario that is looking increasingly likely, the showdown between the Chief Marketing Officer (AKA the marketing director) and the Chief Information Officer.

Its my belief that as data relating to the customer grows and becomes more and more useful (along with the ability to model and then predict future likely behaviour) these two company board members are the two most likely to both stand up and stake their claim to its ongoing ownership. Customer transactions in branches / stores / premises, their online browsing history, their engagement across social media channels and their contact preferences will be like water to these roles.

However, this doesn't necessarily have to be the case. And not just because I'm advocating peace and love in the exec suite, but for a different reason... It has been a prediction of mine for a while now, that the roles of the CMO and the CIO will evolve and in some cases merge, quite possibly around the need to have a single point of data ownership.

This could therefore give rise to a new role seated around the walnut table of major organisations, the CDO. But not the 'Chief Digital Officer' that I have already mentioned a couple of times on this blog, but that of the Chief Data Officer.

The problem with collecting data

Data gets collected all over the place these days:

• Customer feedback questionnaires regularly request and assess views and opinions
• Website analytics capture everything from machine preferences through to individual clicks on each page
• Audience research shows the number of adverts watched in a single evening and the retention of those products the following day.
• In-store ethnographic research identifies trends in purchasing behaviour and the effects of pricing, product selection, promotion and placement.

But businesses and their agencies need to move away from the habit of just retaining data from single channels (e.g. website analytics. TV viewing figures, etc.) and transcend the basic online only attribution models that are currently out there.

They now need to understand the entire user journey that leads not just to a transaction, but to a longer-term relationship. Only then can business truly understand the influence that different devices, channels, proportional activity and other factors (such as peer recommendations) have on purchasing and subsequent behaviour.

But who is linking these sources and others together? Who is trying to pull together the collective understanding from each of the different communication and commercial channels?

Email the key to Multi-channel retail

I've been reading about a new technology that emails your shop receipt to you when you've made a store transaction. This functionality (called Yreceipt) basically automates the process for retailers and takes the customer one step closer to a paperless shopping experience.

But in my opinion it also provides one very important function to the seller.... it helps join up the multi-channel picture for stores, by getting that one piece of data that marries the store purchase with online cuistomer transactions with any digital marketing preferences.... their email address.
This isnt exactly ground-breaking stuff, but getting a customer's usual email address when they are in the store (and yes, I'm well aware that we all have several these days) means you not only know if they've purchased at your online shop, but if they've signed up or opted out of your bulletins. You can then link the in-store purchase to this account or even reactivate them for subsequent email marketing.

Surely by linking till systems with the ecommerce database, any serious retailer can then make the shopping experience more favourable for the customer (by providing loyalty discounts & other incentives, proving an online way for them to see their entire purchasing history and then delivering added value such as emailing receipts to them)?