Enabling (digital) transformation

filmNext week  I am joining a panel discussion about “Digital Transformation and Shared Economy – what family owned companies can learn from start-ups”as part of the Pioneer Festival in Vienna, a major event for future technologies and entrepreneurship.

The impact of digitalization presents unprecedented challenges for all companies – big or small.  Digitalization can not only extend the reach of organizations and improve management decisions, but most of all it can speed up the development of new products and services. But this can also mean that your traditional business model may become disrupted. Having a solid strategy for your digital transformation is therefore key.

For established companies working together with start-ups for their digital transformation can have many benefits. These range from having better access to new technologies to an increase in innovation as well as learning to be more lean and fast.

But what are the most important pre-requisites for a successful transformation? I know that there are a few but here are my top 4:

  1. The C-suite is boss
    Digitalization is a key change for any business model. But it will also mean changes in your corporate culture. Therefore it can only be successful if the transformation process is owned and backed by CEO.
  2. Startup mentality is part of your DNA
    If you want to be innovative and foster new technologies, you will need people that have an entrepreneurial mindset in your organization. And you will want to give them all the support they need. Digitalization means being hands-on, open to trial and error and being convinced of its success. And being given the space to to develop new business models will be key to get ahead in the process.
  3. Protect innovation
    Innovation, just like any change, can often fail if the organization does not embrace it. As mentioned above, it is critical that people working on digital transformation are given the (protected) space to create and develop new ideas and are able to test these in an agile manner. Give them the autonomy to go  and impact things.
  4. Truly understanding your customer
    The key word here is “customer centricity” – if you do not know who your customers are nor what they really need you will already have lost. Services and products should be developed with a focus on what the customer needs rather what the organization believes is needed. And ideally, this should be done as fast as possible to quickly meet the market demands.

 

But something we must not forget: digital transformation is not only driven by technology but also by humans and how they communicate this transformation.  I think the latter is often forgotten when we hear or read about digital transformation. But that is something I will focus on in my next article. Watch this space!

 

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ROI, Facebook and Snapchat

According to a new survey taken in March, almost all (95.8%) of social media marketers worldwide believe that Facebook produces the best ROI out of the major social platforms. With Facebook continually adding new revenue streams, it is not a suprise marketers are using Facebook for their marketing efforts.

ROI

Snapchat, however, is at the bottom – which sort of fits into the results from L2 Think Tank. They found that brands are more hesitant when it comes to using Snapchat.
Instagram on the other hand seems to have almost every industry fully using the platform.  Maybe they have not discovered yet that Snapchat allows you to create unique content in-app that may increase brand following?  Interestingly enough though, posting frequency is higher on Snapchat than Instagram on a weekly basis.
By the way: I am a sucker for both.

snap

 

Marketing customer centricity

3dWhile customer centricity is nothing new, customer experience lies at the heart of digital transformation.

Digital is putting customers in the driver seat, transforming their purchasing decisions. Today’s customers are more empowered, they can get a lot of information online way before they need to get in touch with a sales representative. It is a true shift in power and organizations need to adopt a customer centric approach across their company to offer value.

While most companies today claim to put their customers first, a surprisingly small number are actually doing it right. Servicing your customers well cannot be put into a “one size fits all” strategy and marketing plays an important role in helping to achieve customer centricity.

It’s all about “Personas”
The better you know your customers, the better you can give them what they want. Customer centric marketing needs to acknowledge that there is no average customer. Nobody wants to be spammed with generic email promotions that do not speak to your needs or is just plain boring. This is where personas can help you. By understanding your audiences and buyer types, you can craft a specific message, with relevant content, in the right channels, creating value along the way and hopefully creating long-term relationships, ideally with your customers becoming brand advocates.

Understanding the customer journey
The ‘customer journey’ can be defined as all interactions that customers’ have with a company’s brand, product or services across all touch points and channels. In today’s digital world it is imperative that a seamless experience is created across all channels – and this includes on- as well as offline. Understanding the customer journey allows us to better connect, communicate and give the right information at the right time of the journey or purchasing process.

Make use of data
Too many marketers talk about data-driven marketing but data is only useful if the right technology and know how is in place to capture and analyse. Every day customers are telling us what they want by clicking, sharing, downloading. And it is not about collecting vast amounts of data but more to look at the data and understanding what customers need and want and then using that insight to develop better marketing campaigns, design products and services as well as other efforts and initiatives.

Customer centric business = social business
Customer intimacy relies on two-way conversation. Social media allows you to understand and communicate with your customers, making your relationship with them more meaningful. Social media is a key channel for customers in their decision-making. Make sure that you are present where your customers are present, that you listen, identify the gaps in customer engahement and respond in real-time.

The shift towards becoming a customer centric organization is complex and takes a long time. Marketing plays an important role in helping create a change in corporate culture where the focus is on the customer. The future of marketing (as always) is exciting and challenging.

Facebook F8

FBFacebook is on a roll – the rate at which it is introducing new features is mind-blowing.

Here are the main new things to watch out for:

  • The chatbots are coming
    Through Messenger, businesses can now deliver automated customer support. Might still be a little wearisome now (like ordering flowers) but as Techcrunch wrote it is estimated that chatbots could replace the 1-800 numbers (and probably the humans behind it).
  • Sponsored message ads are go
    Businesses can now send re-engagement messages to people who’ve already started a conversation with them on Messenger. Will be interesting to see how this works out, consumers will not want anything that is to spammy so businesses need to see what the right balance will be.
  • Keeping you in app
    We all know that with the battle over networks everyone’s intention is to keeo you “in app” for as long as possible. So Facebook now also allows you to drop files straight from your Dropbox into Messenger (saves emailing) and have a “persistent Chat Head” at the top of your screen (Android only for now)
  • Instant articles
    And if you haven’t had enough, then instant articles can now be used by ALL publishers. Developers get on it.

 

It’s time for more social savvy CEOs

A recent study from CEO.com showed that the leaders of today’s most powerful companies (aka Fortune 500) still see social media as a non-necessity in their leadership toolkit. In fact, 61% have no social media presence whatsoever.

ceocom-social-report-2016-scrn01

Courtsesy CEO.com

This is totally anti-cyclical to consumers. Today there are more than 3 billion people on the internet and 2 billion are active social media users. We spend almost 3 hours online a day and 74% of consumers rely on social media to make buying decisions. So if social media is where your customers are, why aren’t there more CEOs active on social platforms?

Why Go Social?

The business of business are relationships. Relationships are inherently social. And leadership in the 21st century is all about strong communication. Social media provides multiple benefits for CEOs: it creates emotional connections, builds relationships and demonstrates innovation. Little side benefit: all of these increase leadership effectiveness.

A recent Weber Shandwick study said that 80% of employees would rather work for a social CEO. And 3 out of 4 consumers said they would be more likely purchase from companies who communicate on social media.

And we should not forget trust. Trust is the foundation for any business to operate. Be it internal or external, trust should be high on any CEO’s priority list. Edelman’s yearly Trust Barometer highlights exactly this. With more people placing trust in their peers and company employees than CEOs, social media provides a perfect channel for changing this. In today’s media landscape, there needs to be a move from just traditional media to a platform where CEOs can directly interact with stakeholders and customers. Richard Edelman defined the new role of the CEO to be the “Chief Engagement Officer”. A CEO that has a social profile can result in better communication, more transparency, higher employee morale and an improved brand image. By sharing stories, vision and values, the CEO moves from being just a business figure to a real person – resulting not only in greater visibility and influence, but also in more trust.

So Many More Opportunities

CEO.com’s study showed that those CEOs who are “active” on social media, Linkedin and Twitter were the preferred platforms of choice, although most of them were less active on the latter. With so much happening in the social media space, it will be interesting to see when executives will realize the benefits of exploring  other platforms.  Such as visual platforms like Instagram or YouTube. Personally, I also strongly believe that messaging and streaming apps will be interesting for CEOs to experiment with as these channels are genuinely social with their feedback mechanisms and their informality.

But when looking at today’s social CEO landscape, all this still lies in a very distant future.

Maybe for now it is sufficient for CEOs take some advice from Sir Richard Branson, who said, “Embracing social media isn’t just a bit of fun, it’s a vital way to communicate, keep your ear to the ground and improve your business.”

Ringing the bell for gender equality

 

WEFra4

This is the second year in a row, that Women in ETFs – a network  bringing together women and men in the ETF ecosystem I am proud to be a part of  – rang the bells at 34 stock exchanges around the world to celebrate International Women’s Day.

It was all about raising awareness for women’s economic empowerment and the opportunities the private sector has in advancing gender equality and sustainable development. A recent survey by the Peterson Institute for International Economics of 21,980 publicly traded companies in 91 countries demonstrated that the presence of more female leaders in top positions of corporate management correlates with increased profitability of these companies.  With stock exchanges being a key partner in the ETF industry, WE has used this platform for a second time to bring across the gender equality message.

I had the honor of ringing the bell at Deutsche Börse in Frankfurt together with my fellow Women in ETFs colleague and friend, Ana Concejero, Sophie von Gagern, representative of the Global Compact Network and Hauke Stars, Member of the Deutsche Börse Executive Board and many other inspirational guests – women and men – together making a difference to push for women’s rights.

For more information on our network please go here