Ernan’s Insights on Marketing Best Practices

Monday, April 18, 2016

Nestle Waters' CMO Answers 4 Questions For Marketing Innovators

Article by Ernan Roman
Featured on CMO.com
Antonio Sciuto Before he was appointed executive vice president and chief marketing officer at Nestlé Waters North America in 2014, Antonio Sciuto oversaw the brand's digital transformation as its global head of e-commerce. Prior, he was global strategy and organization manager for customer and sales.
A graduate of Bocconi University in Milan, Sciuto began his career in 2000 at Procter & Gamble, where he spent seven years in marketing and sales roles. He then worked as a consultant for McKinsey and Co. from 2007 to 2010.
Sciuto recently participated in our "4 Questions for Marketing Innovators" series.
1. What is one marketing topic that is most important to you as an innovator?
The evolution of the marketer's role to win in the omnichannel consumer journey.
The centricity of the consumer journey is shifting marketing's focus from building databases to fostering communities by leveraging social and mobile platforms. In the past few years, we have focused on big data: building things like databases, consumer segmentation, and predictive behavior. All of these initiatives are still relevant, but we need to shift our mindset toward understanding that the best databases are ones that are available at our fingertips (e.g., Facebook, Twitter, Instagram, Pinterest, etc.). Data from these platforms may not be owned in the traditional sense, but they are certainly usable as long as we leverage the data to make better business and marketing decisions.
An important part of our job must be to leverage social databases and their roles in consumer behavior. We do this not only by engaging with consumers when responding to inquiries, but also by fostering a more modern, proactive approach to satisfy consumer needs and enrich their consumer experience. Our scope is no longer just limited to demand generation; our mission should be building a holistic relationship with our consumers by leveraging all engagement opportunities across all available channels and touch points on their journey.
2. Why is this so important?
This new reality is blurring boundaries between marketing, sales, customer service, and IT, requiring an end-to-end approach that will transform the entire organization, rather than merely adding incremental online revenue. This is critically important considering the implications on three key components: role of content, definition of community, and evolution of marketing approach.
Branded content is the new advertising. The development of the right content by touchpoint is key to driving conversion along the entire consumer journey, from basic product information to brand campaigns. Most importantly, it's critical to understand how content and the role of the touchpoint are changing.
Our definition of "community" has changed as well. We have seen that community is no longer a place where people gather around similar interests, but rather something that forms temporarily and elastically around content people share similar interests in.
Last but not least, the marketing approach needs to evolve to smarter brand campaign content, complementing the traditional agency model with a faster go-to-market model built for more intelligent, higher quality content creation and distribution. We've found this in both agency partners, like Deep Focus and its DFx platform, and new content partners (e.g., BuzzFeed, Tastemade), who are changing the rules of the game. They offer not only more collaborative content production, but guaranteed targeted distribution and engagement at scale as part of a turnkey offering.
3. How will the customer experience be improved by this?
In this changing environment, the integration between marketing and technology will allow brands to build a deeper relation with consumers. This integration will make a significant impact by supporting the collection of consumer data, mapping of consumer profiles, and building lookalike models to amplify campaign effectiveness. This offers new possibilities to build more valuable brands and businesses by personalizing the consumer experience. Now marketing is not a sequence of different campaigns but an integrated and automated journey to better satisfy consumers' needs.
At Nestlé Waters North America, our approach is to offer consumers a unique and complete set of omnichannel solutions aligned with their needs by offering the ideal product assortment in-store, e-retailer content to overcome online shopping barriers, content worth sharing in their social channels, and delivery directly to their home with "Ready Refresh," our direct-to-consumer business.
4. How will this improve the effectiveness of marketing?
This renewed digital approach, enabled by marketing cloud technology, will allow brands to amplify their marketing efforts beyond the main campaign. Marketers now have the opportunity to proactively engage with consumers on social platforms and to build additional consumer journey and content based on online consumer behavior amplifying campaign results.
To improve marketing effectiveness and capture this opportunity, there are three key enablers for success:
  • Manage digital operations end-to-end by integrating digital, social media, and e-commerce into an e-business organization unit. This combines different teams with complementary roles and one common denominator: a relentless focus on the consumer journey.
  • Accelerate a shift to digital media vs. traditional media in accordance with the opportunity of each brand's consumer targets
  • Adopt a "learning by doing" approach. Accelerate the speed to market and not worry too much about perfection, but, rather, place emphasis on speed.
Bonus: Favorite activity outside of work?
Traveling and enjoying time with my lovely wife and my daughter.
For additional Marketing Innovator stories, click here.

Monday, April 4, 2016

Research Shows Marketing Personalization Misses The Mark

Article by Ernan Roman
Featured on Forbes.com
Marketing Personalization Misses the MarkHere’s what a leading CMO told me recently when I asked about the quality of their CX and personalization: "We are using new CRM technology to automate old, bad behaviors…not being guided by how our customers define improved CX. Result: High volume, irritating and brand damaging spray and pray."
Per VoC research conducted by our firm among customers and lost customers of leading brands, many marketers are kidding themselves when they say they’re doing personalization. What they are really doing is putting lipstick on tired, transactional emails and blasting them from the latest and greatest CRM technology.
As John J. Curtis, SEO manager at Walgreens stated regarding the importance of content and CX, "Good content marketing is designed for your customer…. with any tool, you have to use it properly for the job you’re doing, and every tool isn’t used for every job. … [Assess] the issue at hand, identify the customer need, …then decide what to grab from the toolbox."
Per the VoC research findings, here are three ways to stop damaging consumer relationships and start delivering truly personalized CX:
Fulfill the Promise of Value
As illustrated by the recent Apple privacy controversy, consumers clearly understand the value of their personal information and are willing to provide marketers with that information if there is a promise of value in exchange for this interaction.
However, all too often this is what people are telling us in the VoC research:
"What we receive is not smart personalization. They aren’t personalizing the things that matter to me."
"What they consider personalization is so old-fashioned"
"I want more than just buying history-based emails."
"With today’s technology, I expect the experiences and emails to reflect my interests and preferences."
Enable Customers to Drive Personalization per their Individual Preferences
Reciprocity of Value is a fundamental requirement for gaining in-depth customer information in exchange for significantly improved preference-driven personalization.
Customers want explicit, preference-based personalization, such as product recommendations that are based on their previous shopping history, favorites, or noted preferences.
Consumers also want to be partners in their personalization. They also want the ability to correct a company’s algorithm when it picks up on the wrong signal such as a purchased gift that was not in line with their own preference-based wants and needs
Don’t Be Afraid to Request Appropriate Personal Data
Sephora uses shopper data to deliver amped-up CX by gathering data on shopping habits. Actions analyzed to deliver a more personalized experience include behaviors and interactions within product pages. Choices indicate intentions that can be used to develop a more personalized user experience at three specific shopping stages: consideration of a purchase, planning a purchase or ready to purchase.
The important point to remember is that even with privacy concerns, your consumers are willing to provide the information you need to boost their CX interactions to a higher level. The problem doesn’t lie with consumer willingness; the problem lies in marketers’ abilities to deliver in-depth personalization and high levels of value.