A tipping point
3
As many commentators have observed, data, “big” or “small”, is the key to unlocking the future for all businesses. Yet, as it stands, too few brands have realised its potential value. We are reaching a critical tipping point, where data-smart brands have an opportunity to create their own unique intelligence, build solid data foundations that are future-proofed, and allow them to differentiate themselves from their competitors.
WELCOME In this report we explore a number of key topics and rather than just commenting, we share some powerful insights gained from the hard work of helping clients go from ‘A’ to ‘B’.
analogfolk.com
4 CONTENTS
4 Omni-channel:
Realising value from better relationships
10 12
Data shot:
How industries differ in data usage
Digital advertising:
Consumer focused and equity building - it’s actually possible
16 The measurement effect: From TV to purchase, data you can trust
5
20 Data shot:
The value of data
22 A dose of Data:
Exploring ‘Data Driven Business Strategy’ vs ‘Data Strategy’
28 Fountains of knowledege:
34
How to understand why things happen and make a change
Customer experience:
Moving beyond analytics to decoding human behaviour
NOVEMBER / 2016
O m n i channel
6
REALISING VALUE FROM BETTER RELATIONSHIPS THE OMNICHANNEL WAY
Understanding the true impact of delivering omnichannel experiences Redefining the relationship businesses have with their consumers requires them to think outside of just how data can help control and manage the experience. It requires new internal structures, new frameworks to measure success, and new ways of working. The rise of the discussions around ‘omnichannel’ over the last few years has led to ambiguous definitions mostly used as a rationale by technology providers and consultants to demonstrate that they can single handedly solve every business need.
7 The problem facing businesses is clear: many brands have been channel-focused instead of creating value-driven experiences that are people-focused. One of the areas of confusion is that omnichannel consumer engagement is different from taking a multi-channel approach – one is about how people experience your brand, the other is how brands advertise to people. The challenge is exasperated as more ways of enhancing how brands engage and transact with consumers are developed, from enhancing physical stores with digital, exploring new channels for ecommerce, and innovating social channels. But as long as these channels remain siloed from each other, the consumer experience and relationship will remain fragmented. Brands need to establish a clear understanding of who the customer is. For digital-first businesses like Uber and AirBnb this is easy, but for legacy businesses it is tricky to navigate the complex processes and systems that have evolved over time and how they can realise the benefit of the big-data movement. Most business leaders agree that having an enhanced way of the handling of data is imperative for commercial success. A Capgemini study last year said that 65% of respondents view ‘big data’ as a key enabler of their organisational effectiveness and competitiveness in the marketplace, from identifying cost savings to using insights to boost sales and marketing. In addition, pre-digital and mobile era businesses are not set up to handle and analyse data at the level of complexity required today. A Gartner survey claimed that over half (51%) of Chief Information Officers (CIOs) worry that the flood of data is rising at a faster rate than they can cope with, and this torrent is only likely to get faster. To place the customer at the heart of the organisation and deliver an omnichannel experience requires businesses to change the way they operate with data.
8 CHANGE IS NOT EASY Breaking down internal silos, inter-departmental politics and changing existing ways of working with agencies and suppliers does not happen overnight. It requires the support of the board, a mandate from leading executives, and the formation of a senior team with responsibility for the end-to-end customer experience. Technology companies with a ‘one-size-fitsall’ solution typically ignore the organisational issues that need to be overcome before their platforms will work, while media agencies present a different challenge, because their view is channel-first. Even many digital agency specialists will give you a strategic view of why omnichannel is a good thing, but lack the depth of experience necessary for delivery. Most agencies have a very ‘front end’ view of consumer experience (with a focus on creative and design) and insufficient experience to architect and build accessible data environments, constantly confusing them with databases. Businesses are beginning to recognise the importance of understanding the inner workings of their organisation to drive their success. A report published last year by MediaSense, in association with ISBA and IPSOS Connect, suggested that marketers are increasingly focused on becoming more self-reliant and agile. Over half of those surveyed (54%) said that by 2020 they expect to bring in-house a number of functions previously outsourced to agencies.
THE DATA IS MINE
This is not to say that an organisation can do this on its own, the right partners that understand the challenges the individual business faces and can interpret these into a clear vision and roadmap for success can still provide real value. But it’s important to think ahead, allowing for a plan to build the key competencies internally and transition over time to become less reliant on these partners. But it’s not just internally that an organisation needs a change in mindset. Consumers are changing the way that they want to interact with brands, and are becoming more aware of their data rights. Privacy, security and trust are becoming big issues, and can have a serious impact on your business if not addressed, both reputationally and financially. There seems to be a lack of awareness of what people think about advertisers using their personal data, not helped by the fact that those consumers can themselves sometimes convey contradictory messages on the topic. In research conducted by Boxever, more than 60% indicated they prefer offers that are targeted to where they are and what they are doing, but 62% of the same respondents insisted that they do not want retailers tracking their location. The Boxever report found that consumers do not wish to continue sharing personal information because they are not seeing sufficient value from the data that brands already possess. A fresh approach is urgently called for, with brands explicit about why they wish to collect data, and consumers offering permission if the rewards are right. In the UK, the Direct Marketing Association has found that 80% of consumers see personal data as their property, and they should be allowed to trade it as they see fit.
10 CO-CREATING VALUE A new balance needs to be established between businesses and consumers, if brands are going to be able to offer a truly seamless, omnichannel experience. Marketers must be prepared to collaborate with other teams and departments to forge a clear business strategy, and allow their customers to join them in both creating and extracting value.
A Capgemini study last year said that 65% of respondents view ‘big data’ as a key enabler of their organisational effectiveness and competitiveness in the marketplace, from identifying cost savings to using insights to boost sales and marketing.
Creating this balance cannot be achieved overnight. It means owning intelligence about people, from what they think about your products and services, to how they interact with your business across bricks and mortar, telephone, desktop and mobile. Using this intelligence to create the experiences that consumers demand and value wherever and whenever they decide to interact. The journey will not be easy, but, then again, neither is it for your consumers as it presently stands. //
11
12
Data shot
How industries
DIFFER
in data usage
Source: EY and Forbes Insights ‘Analytics: Don’t Forget The Human Element’ - June 2015 Base: Global, 500+ Executives from companies with $500m+ in annual revenues.
13
Consumer Products & Retail, Technology Financial Services, Manufacturing Healthcare, Energy Pharmaceutical Government
DIGITAL ADVER TISING Consumer focused and equity building - it’s actually possible
A unique advantage awaits businesses that create their own ‘brand intelligence’ and avoid throwing money at agencies and technology vendors. The use of programmatic has increasingly become a valued tool for media, digital agencies and brands. The conversation recently moving away from real-time buying of digital advertising to utilising data to target the right audience and serve the right creative. The promise of delivering the right advertising to the right person at the right time is enticing to brands. Instant conversion or purchase can be driven from knowledge of context of consumers’ state of mind and relevance of the actual creative as an individual.
15 BUT IT ISN’T WORKING FOR A NUMBER OF REASONS …
Agencies still mimic the ways that they work with TV advertising, using a generalised segment approach with information obtained from companies like Acxiom or TGI and enhancing with location, weather and time to target more effectively. The success metrics still have not changed, with reach and impressions the primary target of programmatic campaigns. However, confronted with brands wanting programmatic, agencies leap to the ‘creative’ solution, proposing to serve different creative to consumers rather than target the right people. Two reasons seem to exist for this, agencies lack of understanding and access to information required to create relevant target audiences and the revenue models that are based on the amount of media spend.
SO STEP FORWARD THE DMP (DATA MANAGEMENT PLATFORM) … Recognising a lack of ‘real’ knowledge of consumers, many agencies and brands have grasped the concept of a DMP and turned it into the ‘nirvana’ of digital advertising. The DMP takes many forms, from ‘pools’ of cookies with attributes taken from interactions consumers have on digital properties’ to ‘big data environments feeding audiences for targeting’. The DMP as a concept seems to be the right one, fundamentally it is there to (1) Collect Data (2) Find Segments (3) Send Instructions, but there are a number of mistakes being made.
+ + + +
16
D M “The challenge is a brand’s interactions now form part of a larger ecosystem, which likely contains their competitors.”
Giving away a brands business advantage
One of the easiest and most popular ways to ‘create’ a DMP is to implement a vendor ‘tag or cookie’ into your digital properties. These DMPs normally reside close to the demand side platform (DSP), and hide the detail under the hood, providing brands with lists of attributes that they can utilise to target individuals, all inferred by the DMP owner from interactions consumers have had. The challenge is a brand’s interactions now form part of a larger ecosystem, which likely contains their competitors. The more brands that add to that ecosystem the more value it has to other similar brands.
Also, the actual logic of inferring how interactions are turned into attributes is hidden from the brand, with algorithms created to describe the portrait of the consumer the same for everyone. As Facebook and Google enhance their offerings, agencies will continue to find it easier to deploy to generalised audiences trusting the DMP definitions of consumers without question.
Working within the minefield of DMP siloes
On a daily basis the number and size of different DMP offerings continues to increase with each containing varying methods to identify a consumer. Models to define the attributes to create a potential audience are changing at the same velocity, as DMP owners look to produce more accurate views of their consumer pool.
P
17 The challenge for brands is that to combine these siloes they either need to “mass tag” their digital properties with various vendors, or attempt to “stitch” these siloes together by matching id’s together (typically with limited success of around 20%).
SO WHAT ARE BRANDS TO DO … There are a few key things for brands to keep in mind to successfully deploy advertising that is relevant to their consumers within the right context of their individual experience.
Ownership and control Brands should retain ownership of their intelligence and therefore create their own DMP to differentiate themselves from the competition. Owning and continually learning from this intelligence will create a strategic business asset valued across the business, not just in marketing. Utilising knowledge of consumers interactions, brands can inform new product development and the creation of unique service offerings removing guesswork and minimising the risk of failure.
Content and advertising become soul mates Brands should bring content production and advertising closer together in order to understand the real attributes of the consumers they interact with rather than being reliant on others (who do not know their business) to define it for them. Channels should be thought of as simply a distribution mechanism for all content editorial (including advertising). Brands should focus on an ‘inside out’ approach, where the brands unique understanding of who, how and when they want to interact with consumers leads both the definition of what content to create and how that informs and powers their digital advertising. Brands can (and will) continue to throw money at agencies and technology vendors that end up gaining more value than the brand itself, but it will be the ones that start to create their own ‘brand intelligence’ that integrates with the various commodity providers – be them technologies or agencies – that gain a unique advantage. //
P
18 MEDIA KPIS SHOULD REFLECT WHAT IS TRULY IMPORTANT FOR BUSINESSES TODAY, NOT THE REACH AND FREQUENCY FACTORS OF OLD.
Second screening, VOD, social engagement, branded content, in-app advertising, the purchase funnel, programmatic; they’re all part of today’s marketing ecosystem. And they reflect a new media age in which campaigns are being planned in a highly integrated way across multiple media. Despite the rapid pace of change during the last few years, if you take a look at the way most media are monitored, you’ll find a system that hasn’t changed in any significant way for decades. In Israel there’s an old adage about a drunk man who, in his inebriated state, had lost a coin. He was seen searching for it under a streetlight, but however hard he looked he couldn’t manage to find it. A passer-by offered to help the drunk and asked him where in the street he thought he’d lost his coin, to which the response came… “I think I lost it in that dark corner over there, but here there’s a streetlight so I thought that would make it easier for me to find it.”
THE MEASUREM / Guest Contributor: / Ronny Golan / CEO, Viewers Logic
From TV to purchase, data you can trust
19
In a new era of advertising, media KPIs are still being defined by what can be measured – where the light has been shone - rather than by what is truly important for the business. Reach and frequency continue to be the key factors for TV advertising, whereas we should really be looking at conversions to online and offline interest, and ultimately to sales. Since the 1980’s TV viewing patterns have continued to be observed by the ‘People Meter’ which monitors this single medium. That information is then being fused with online behavioural data from a different panel. Transaction data is then factored in from a third sample group, to determine whether consumers are buying the product as a result of their exposure to a campaign. On this basis, despite all of the flaws that come from ‘correlating’ different data, clients continue to use this approach in deploying billions of pounds-worth of multi-channel media. It’s a scary time to be a CMO! It seems inconceivable that other parts of the business, for example operations, supply chain, or accounting, would be managed with such a loose approach to data. All now aim to base their decision-making on solid, business-grade data.
There has been one important and encouraging exception, and that lies in the world of online marketing. Advertisers now have a means of tracking precisely what each and every customer does as a result of campaign exposure, and deducing why they acted in that way. The data can then be used to improve campaign effectiveness in real-time, and to offer programmatic solutions. That said, contrary to most ‘futurist’ predictions, and despite the massive growth of online, TV remains the most-used advertising medium, and is still the most popular choice for reaching mass-market audiences. TV has not remained static; it has evolved to offer new ways to pay for programmes and new platforms on which to view them. As the medium continues to lead the advertising sector, a new monitoring system, capable of integrating TV viewing with the consumer’s usage of other media is required urgently. To solve this challenge, and develop a new source of business-grade data for use by marketers and their agencies, a new approach needs to be developed, offering the following:
/ Single source
Collecting media consumption and purchasing data of an individual person across TV, internet, and apps - 24/7/365.
/ Broad in scope
Covering the whole purchasing journey across multiple online media as well as into the physical world.
/ Longitudinal
To observe behaviour patterns over a period of months and years, not hours or days.
/ Passive in its collection
This would mean that we would be 100% sure to monitor what they are actually doing as a result of each media exposure. Existing technology can be used in a new way to achieve these monitoring attributes. By passively collecting information about their TV and second screen viewing, it is possible to track subsequent online activities, app usage, store visits, and purchases, etc. This new single-source data is enabling clients to look at campaign and brand performance in a way that has never been possible before, offering:
/ A deep understanding of the consumer’s journey, from exposure to an ad until purchase of a product. / An ability to identify the contribution of each part of a cross-media campaign. / Improved TV buying through better knowledge of the conversion levels for each of the channels and programmes in the mix. / Deep dive into second-screen activities. Every CMO should have media monitoring that is up to date for an era of cross-media planning enabling brands and agencies to plan campaigns with unprecedented levels of accuracy and confidence. //
21
22
DATA SHOT: THE VALUE OF DATA
If we do not embrace Big Data we risk becoming irrelevant / uncompetitive
65%
AGREE
20%
NEUTRAL
10%
DISAGREE
5%
DON’T KNOW Source: Capgemini ‘Big & Fast Data: The Rise of Insight-Driven Business’ - March 2015 Base: 1,000 senior decision-makers from 10 countries worldwide
Exploring ‘Data Driven Business Strategy’ VS‘Data Strategy’ It may sound like semantics, but although much of our industry is well on the way to embracing the power of data, many companies are thinking about it as an addition to their core business operation rather than an integral and valuable thread that runs through it. Those who do make it a core part of their business strategy (and use their own data to drive these decisions) are reaping the rewards. No matter how technology shapes the way we execute our ideas, creativity is still at the heart of our industry and it’s what gets most of us out of bed in the mornings. The world’s most meaningful brands find inventive ways to engage consumers, forging relationships that impact business and brand performance. But those who super-charge their business with data can boost their results even further.
25
Brands that really matter to people today are those that understand and specialise in engagement, and engaging activities. There is no need to use intuition or guesswork. Most businesses have the capacity to only do a few things really well, and this means being selective about which plans to act on and which to ignore. Data can help you make those choices with greater confidence. A surprising number of businesses are not aware of the kind of data they possess. A study undertaken by Pricewaterhouse Coopers and Iron Mountain, showed that one in five executives did not believe their businesses understood the data sources coming into their organisation. 23% said they didn’t know how that information could be transferred across the business. So if the people in key decision roles aren’t aware of the kind of data at their fingertips, are they in danger of making mis-informed business choices? Even those companies who have hired a Head of Data often already employ Chief Marketing, Technology, Information and Digital Officers, meaning the management of data ends up sitting in another silo, where it cannot influence the rest of the business.
For many CMOs, data innovation is still in its infancy. According to a report by the CMO Club and Visual IQ, many factors are standing in the way of implementing an omni-channel approach. Some 85% said their efforts are being thwarted by a lack of access to tools and technology, while 82% of the same respondents complained that their inability to measure cross-channel is hindering the creation of a proper data strategy. No matter how forward-thinking your business is, it is not realising its full potential if data is an afterthought. A truly forward-thinking business is one that thinks about data as a driving component rather than a back-end operation.
A ROADMAP FOR CHANGE Transforming an organisation into placing data at the heart of everything it does can be a complex task. Having a clear vision of how data can help is the easy job but understanding how you can change the way you operate as a business whilst still generating business value is the more difficult key to the success. By identifying where various business units are on their journey to puts data as an integral part of the day-to-day activities, and provides a clear path to change.
BE DATA AWARE Most (if not all) organisations have a way of understanding what is happening in the business, allowing management to have a view of what is working and what is not. However, this typically happens once marketing activities have completed, and is normally viewed from a silo of individual channel campaign reporting. Developing a measurement framework that can be used to define both the strategy for marketing activities but also report them back to actual business goals is an important step. Having clear achievable objectives that highlight how each activity is aligned to contribute to a high-level business goal (i.e. Awareness, Consideration, Sales, Retention) and how each campaign, tactic, communication delivers value will help increase overall performance. Enhance this with a culture that consistently looks to optimise activities whilst they are running rather than wait until they are complete by using previous campaign experience to inform what they should do. Ultimately allowing the business to move from being reactive to being responsive.
BE INSPIRED BY DATA Brands that use insight to develop their strategies uncover hidden opportunities and increase their likelihood to be relevant. It’s important that this is not constrained to what the business knows today. Analysing the profiles of existing customers, their interactions they have had and their feedback is one dimension. More and more, brands are looking to understand what is happening outside of their organisation, looking at different audiences, their behaviours and the conversations they have to provide increased insight. By combining these two dimensions, organisations can create differentiated and unique strategies that are both contextual and relevant to their target consumers.
29
BE DATA DRIVEN Transforming an organisation into placing data at the heart of Developing an omni-channel approach can not be fulfilled by simply buying technology, centralising decision making or hiring a Head of Customer. Where various business units, agencies and partners support execution within channels, data needs to drive how consumers experience the brand. So by assembling a rich-view of both a business’ own data and ‘open’ data available to anyone, and connecting this to each channel through smart profiles, developing this approach can prove to be more cost effective and powerful than remaining in a single channel world. Organisations like Disney, Mastercard and Burberry have already seen significant benefits from optimising the way they advertise, increased engagement through personalised experiences and loyalty through relevant messaging. Data should be integral to a business’ strategic goals, informing the plan through insights and analytics, joining up disparate channels, and enabling continuous improvement. Moreover, marketers, with their operational view of customer experience, are often best placed to influence this plan. It is not too late to transform your business. //
30
FOUNTAINS OF
KNOW How to understand why things happen and make a change
/ Guest Contributor: / Jeremy Hollow / Founder, Listen + Learn Research
31
LEDGE BY BLENDING INTERNAL TEAMS AND DATA SOURCES, BUSINESSES CAN TRANSFORM ORDINARY INSIGHTS INTO TRUE BRAND WISDOM. We’re lucky. When deciding how to improve our business, the data available to us has become both more abundant, and more diverse. For our familiar data sources (transactional, attitudinal), we’ve now got more, quicker and cheaper. For the new (social, visual, neuro, ‘things’), we’ve got different capabilities, techniques, and challenges. What’s more, technical innovation has opened the floodgates. For the first time, you don’t have to be rich, to be data rich. Modest investments can net you millions of new data points. As a result, we’ve moved from having a few fountains of corporate knowledge, owned by established business units, to a much more voluminous and porous data environment.
E G LE D O W KN ’T IS N ES S C
AC
…but not that lucky. We’re facing a new set of challenges, and it’s alluring to think that a tech-led approach will give us the simplicity we crave (“if we press this button, we’ll have all the answers we need”). But more tech isn’t the answer. Because access to abundant and diverse data hasn’t nailed the central issue. Which is, there is no perfect answer. Life’s too complex, there are too many unknown unknowns. We have to accept risk within decision making, no matter how shiny the dashboard or beautiful the API. One solution to this complexity is to treat decision making as a progression. A deliberate and considered development: from data (the right information at the right time) to knowledge (drawing the right conclusions from your data) to wisdom (turn this into a business advantage).
AC ES
C
And it’s this, rather than the tech that’s the biggest challenge. It requires a vision, the leadership, and courage to see the potential, and a willingness to immerse yourself in a different perspective. But all too often new sources or ideas are seen as someone else’s thing; if they don’t fit in with business as usual.
A case in point is social media (which shares a lot of characteristics with other new data). Massively overhyped, people still struggle to make it work as a source of insight. This comes from a reluctance to try new things (especially if it’s something they don’t really get themselves), a bad first experience (there’s a reason social monitoring was rebranded as listening), a lack of internal skills or simply a lack of vision about the potential.
S ’T
N
IS D LE
W
O
KN
But, stop for a minute, what is social, really? It’s thousands of people talking about things that brands really want to know about. If it’s not working for an organisation, it’s not the fault of the data, but rather the tools, ambition and vision behind the attempt. Those who embrace the complexity of social (or other new ideas), working their way through with trial and error, get access to a completely new form of consumer insight (it is, after all, one of the only ways to get an unfiltered opinion) and are richer for it. Those that dismiss it, saying “it’s handled by our digital team” will be the poorer.
E
G
E TH IN G SI T H
There’s always more than one thing you can do. Use the data you’ve got, supplemented by further targeted research to help you explore the field of opportunity. Find out what’s possible, what might work.
Use these initial insights to help you find your direction and define a more comprehensive insight brief, proportionate to the opportunity.
Blend your data (social, survey, transactional, contextual) to explore the whats, whys, hows and whos. Compare and contrast the findings from different sources to give your insights real depth.
Test knowledge with wisdom, synthesise the results to provide unique opportunities that translate research into instructional execution.
Y IT
Carefully define the moment of change. What’s the strategic objective, who’s going to make it happen, what barriers need to be overcome?
N
No matter the size of your business, you can take a multi-layered approach to finding insight. We suggest teams:
U RT
O PP O
Let’s free data from business as usual. Let’s create a vision for progressing data into knowledge and onto wisdom.
BRIDGING THE GAP BETWEEN BUSINESS STRATEGY AND DELIVERY Data suppliers (internal or vendors) all believe that they have the answer. They do, just not all of it. And, what’s more, this is just the first step in the journey. Tech’s great, and is getting better, but it’s a very long way from being fool-proof and completely comprehensive. Instead, our attention should be on insight. Insight is the best bridge between strategy (our aims) and delivery (what we do). And true insight requires immersion in the data, in the case of social – the thoughts expressed by all those people using it. Done well, it’ll show you how best to invest your energy and what you actually need to do to make it happen. And the best insight today comes from blending teams and sources; IT with research, sales with operations. Blur the lines between internal silos, don’t let knowledge become isolated. Because if you do, you’re never giving it a chance to progress into wisdom. //
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
01001001 01101110 01110011 01110100 01100101 01100001 01100100 00101100 00100000 01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111
01101110 01110011 01110100 01100101 01100001 01100100 00101100 00100000 01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111 01101000
01001001 01101110 01110011 01110100 01100101 01100001 01100100 00101100 00100000 01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111
01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111 01101000 01110100 00101110 00100000 01001001 01101110 01110011 01101001 01100111
01110011 01110100 01100101 01100001 01100100 00101100 00100000 01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111 01101000 01110100
01110100 01100101 01100001 01100100 00101100 00100000 01101111 01110101 01110010 00100000 01100001 01110100 01110100 01100101 01101110 01110100 01101001 01101111 01101110 00100000 01110011 01101000 01101111 01110101 01101100 01100100 00100000 01100010 01100101 00100000 01101111 01101110 00100000 01101001 01101110 01110011 01101001 01100111 01101000 01110100 00101110
0111 0110 0110 0110 0010 0010 0110 0111 0111 0010 0110 0111 0111 0110 0110 0111 0110 0110 0110 0010 0111 0110 0110 0111 0110 0110 0010 0110 0110 0010 0110 0110 0010 0110 0110 0111 0110 0110 0110 0111 0010
Customer ex
MOVING BEYOND ANALYTICS TO DECODING HUMAN BEHAVIOUR / Guest Contributor: / Chris Johnston / CEO, Adoreboard
perience WHEN BUSINESSES SUCCEED IN CONNECTING WITH CUSTOMERS’ EMOTIONS, THE PAY-OFF CAN BE HUGE, OFFERING A NEW SOURCE OF COMPETITIVE ADVANTAGE. “What Women Want” starts with a simple idea. The movie that starred Mel Gibson as Advertising Executive, Nick Marshall, shows that if we really knew what people felt we’d be able to align our ideas, emotions and behaviours accordingly. Yet the magical powers to understand how customers feel about brands still remains elusive. And if suddenly we acquired customer telepathy, we’d be shocked by how wrong assumptions about customers really are. We’d probably employ a similar arsenal of comic reactive expressions - amazement, frustration, joy – just like Nick Marshall. Often, it’s guess work: a fragmented media landscape, contradictory data sources or insight all gets in the way of understanding the customer, who they are, how they behave and what’s important to them. A reliance on logical approaches to measurement, like performance KPIs for media buying, for example, reinforces a status quo. Whilst brands can continue to pump out ineffective concepts and stories, in the end customers will vote with their feet to brands that do a better job.
38
The power of emotion So the challenge for any global brand is to understand customers that transcend geographies, languages and brands themselves. An effective way to do this at scale is to use ‘emotional intelligence’. By understanding emotion and its intent we can learn about the concepts that people attach value to and how they’re triggered. This applies even to trusted brands that fail to align themselves with the emotions that influence purchasing decisions. Businesses need to make a change.
39 The case for emotionally intelligent insights When businesses do connect with customers’ emotions, the pay-off can be huge. After a major bank introduced a credit card optimising specific emotions amongst a younger audience, new account growth rose by 40%. A major airline could achieve a 13% increase in email click-through rates by optimising customer communication for emotion. And a 12-month study by data scientists at Adoreboard based at Queen’s University evidenced that Golfing star Rory McIlory’s online popularity surpassed three of the biggest global brands due to high intensity emotions he could generate. Emotional intelligence can discover unusual findings. When analysing customers’ emotional reactions to an e-cigarette brand, it revealed that the dominant emotion of joy related to the devices ‘oven’ and ease for consuming marijuana. This put a swift end to any ideas of ‘repositioning as a luxury brand for casual social smokers’. Global legal firms will spend millions on communicating how good a place their firm is to join. The customer experience at the end of the process unusually created rage and frustration due to thousands of concepts relating to PFO (Please F**k Off). By leveraging this insight and by changing the feedback process for unsuccessful candidates, a new source of competitive advantage and growth was created.
40 Steps to better customer experience
Building a picture of customer’s emotions and targeting these with little idea of what works is challenging. Experience suggests by measuring the feelings that underpin consumer behaviour reveals what customers care about. Emotional analysis provides a structured process of learning about customers’ emotions from any customer experience. By applying data analytics to detailed customer-data sets, which can comprise of any content such as social data, survey verbatim, customer feedback, news articles, competitor communication, you can arrive at compelling insights in four steps.
1
SCORE CONTENT FOR EMOTIONAL INTENT
Apply emotional analysis to any content to score its emotional properties on a scale of -100 to 100. This provides easy comparisons on how the brand communicates, the reality of the customer experience and competitors.
2
CREATE A LANDSCAPE OF CUSTOMER EMOTIONS Any brand can be placed on emotional indices currently joy, surprise, anger and trust to understand how the customer experience they create relates to an industry average or competitors.
41
3
LINK EMOTIONS TO CONCEPTS FOR TRUE INSIGHT Explore the drivers of customer behaviour by detecting which emotions are triggered by the concepts. If a deodorant brand wants to target a younger customer base, they can identify that people express admiration towards brands that make them feel confident. This helps brands to discover what emotions influence a customer journey.
4
ESTABLISH NEW BRAND NARRATIVES BASED ON CUSTOMER EXPERIENCE
By building on the insights from each step it creates narratives describing the specific emotions expressed by customers at each position in their decision journey. This helps decision makers by identifying the key actions required to optimise the customer experience.
The promise of emotional analytics is to bring clarity and rigour to what is often considered more art than a science or strategy. It enables businesses to achieve an understanding of what customers want through the lens of emotion. A brand being a conduit for customers wants and desires doesn’t require a freak electrical accident like in the movies. Today, it’s actually as easy as a click of a button. //
//