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Posts from the ‘Analytics’ Category

14
Sep

Digitizing Customer Journeys


For the times they are a-changin’… Bob Dylan

Customer channel behavior and interaction model is evolvi3 151ng constantly.  Just when retailers think they have multi-channel figured out the channel/interaction game is shifting with chatbots, virtual assistants, speech shopping, and other innovation.

According to Gartner: “Conversational AI-first will supersede cloud-first, mobile-first as the most important, high-level imperative for the next 10 years.”

Basically, customers are not interacting with brands in a linear fashion… they are jumping around from channel to channel and expecting the experience to be seamless and relevant.

For instance, in online shopping, women are more likely than men to reach for their smartphones and tablets to research and make purchases. Of U.S consumers who say they’ve completed a purchase on a mobile device in the last month, 66.5% are women and 33.5% are men. Compare that to 2013, when a greater share of men than women completed purchases on mobile. [BusinessInsider, The e-commerce demographic report].

To better understand, customize and respond based on customer behavior/context/clicks, Fortune 500 companies are making large investments around Programmatic Marketing (“Marketing that learns”). Specifically, the objectives are:

  • Visualize and map the 1:1 customer journey by personas.. Customer journeys are an illustration or visual representation of all points of interaction across touchpoints.
  • Optimizing on the right journey attributes to increase yields  by >30% lift… Uncover the right combination of web, mobile and physical channels, content and experiences that  best achieves the target goals
  • Enable marketers to identify journey bottlenecks for individuals and aggregates
  • Leverage actual behavior data to enhance and personalize the experience for each individual customer

One of most often implemented use case in Programmatic Marketing is customer journey mapping and analytics.  Why? Because, deciphering the nuts-and-bolts” of individual customer journeys (and deducing intent) is core to improving customer experience and driving brand loyalty.

CustomerJourneyMapping

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25
Aug

Digitizing Wealth Management – The Rise of Robo-Advisors

Fintech stands for financial technology. It’s just a blanket term for technology that is disrupting the financial services industry. Payments, Blockchain, Robo-Advisors (or automated investment advisory services) are all segments in Fintech.

Why robo-advisors? We are in the early stages of a shift in wealth management, especially “plain vanilla” investing for the mass affluent and millennial segment.  Until recently, you had only two options when investing:

  • Do-it-yourself (DIY)
  • Hire a registered investment advisor (RIA)

Now there is a third option.  Robo-advisors are new a class of financial advisors that provides online, algorithm based portfolio management with minimal human intervention. Robo-Advisors going after the low-end of brokerage/RIA business with automated asset allocation.

The Robo-Advisors market leaders who are serving the mass affluent include are:

  • Wealthfront (with over USD 2.6bn in assets under management (AuM) and 20,000 investors);
  • Betterment (with over USD 1.4bn in AuM and 70,000 investors); and
  •  FutureAdvisor (With over $600 million in AUM).

The timing for this market shift coincides with three trends: consumerization, digital tools, and disillusionment with status-quo investment advisors.  The gyrating stock market driven by program trading is increasingly bringing Robo-Advisors, algorithmic portfolio management to the forefront.  Investors are getting disillusioned with traditional investment advisors who simply track the market indices (SPY, QQQ or Russell 2000) by purchasing ETFs at best.

Many banks and brokerage firms over the years have shifted their focus to serve ultra high net worth (UHNW) and high net worth (HNW) investors, leaving an opportunity for firms to target the “mass affluent” investors, or those with less than $1 million in investable assets. Younger investors are increasingly interested in online digital advice, as opposed to hiring an adviser.

wealthfront3 Read more »

25
Aug

Digital Personas, UX and Customer Journey Mapping

Who are we designing for? What are we designing?  What outcomes are we targeting? What are the end-to-end user journeys as boundaries blur  between consumers, stores and consumer brands?

How do you approach the messaging and the storytelling, especially given the challenges of channel proliferation? How do you break through the clutter? The first step in every digital strategy is to develop personas that segment the audience and serve as the foundation for customer UX and journey mapping analysis.digital-persona-development2

The best practice firms start with the user. Working from the perspective of the client who consumes a product or service, they focus on personas or “one idealized digital user.”

The goal is to think about the prospect, consumer, user as a human being. What matters in his or her life. Why?  Because users do not wake up in the morning and think, “I need a new app today,” for example. People wake up in the morning and worry about getting to work, getting kids to school, where to meet friends for dinner, paying your bills and saving for the future.

Understanding the persona and the daily journey is critical in modern experience design.  If marketing is going to interrupt you with something that they think is important to you, they have to find a way to tell the user about it so that it resonates with the user. There has to be a benefit to user. There has to be substance. Hence the need for real-world story-telling and context.

What is a digital persona?

Personas are fictional characters used to represent specific segments that interact with the brand across a variety of touchpoints. Personas characterize attitudes, values and behaviors of customer segments, and draw from various inputs to accurately depict the customer. They are helpful in distilling key information into more succinct stories that can be quickly understood. Personas are developed using qualitative research interviews, ethnographic studies – talking to real people about their real needs, motivations and behaviors.

Why is digital persona development important? The new battlefield is the customer journey and its various touchpoints across the lifecycle: AWARENESS → CONSIDERATION → PURCHASE → LOYALTY → ADVOCACY.

Across every industry, consumerization is changing how People they interact with businesses. Traditionally, most businesses have followed the same marketing and sales playbook to generate leads, close sales and provide support to their customers as they did 10-15 years ago. Businesses need a more effective way to humanize the target audience in order attract, engage and delight customers who have access to an abundance of information and an ability to block traditional marketing and sales tactics. To do this, businesses need to deliver an customized experience, which enables them to be more helpful, more relevant and less interruptive to their customers.

I believe an effective way to illustrate how people have transformed the way they consume information, research products and services, make purchasing decisions and share their views.  You get a sense of this by reviewing these general personas – Digital Susan, Social Ashley, Introvert Dave,  Modern Meghan and Traditional Ted.  Read more »

28
May

The Chief Digital Officer (CDO) – Defining this Critical Leadership Role

“Today’s CEOs are starting to take active roles as the de facto chief digital officers within their companies. Digital transformation is  a CEO-level conversation, we’re in the board room, presenting to the board. In the last three weeks, I’ve had more conversations with CEOs around transformation than in my entire career.” Salesforce CEO Marc Benioff 

“Everything we (Starbucks) are doing in digital is about enhancing and strengthening those connections [with our customers] in only the way that digital can and only the way that Starbucks can. “ Adam Brotman, Chief Digital Officer

“Financial assets are all digital. That’s where your customers are and you want to be where your customers are.” Steve Ellis, head of Wells Fargo’s innovation group.

———————

New Technologies | New Possibilities | Design Thinking

Consumerization, data-driven digital engagement, insightful multi-screen and multi-channel user experiences are increasingly taking center stage. Companies are building up their Digital DNA to engage with customers, blend physical, digital and virtual elements, and interact via new channels.

There is often a big difference between the digital experience companies deliver and what the consumer is looking for. Most companies flat-out miss this point. As a result, there has been an exponential increase in executives being assigned Chief Digital Officer (CDO) titles.

CDOIn fact, there have been a tremendous proliferation of new XO titles that all focus on the customer, innovation, omni-channel platform and revenue growth in some form or fashion:

  • CDO – Chief Digital Officer
  • CDO – Chief Data Officer (data is at the heart of  digital today)
  • CCO – Chief Consumer Officer or Chief Creative Officer
  • CXO – Chief Experience Officer
  • CIO – Chief Innovation Officer
  • Cross Channel Customer Officer (also Chief Revenue Officer is title i am coming across more)

In this article, we focus on the Chief Digital Officer (CDO), an executive who is in charge of emerging digital customer experience and next generation experience (e.g, Augmented Reality or Speech Driven UI). Wikipedia describes the CDO as an executive who helps a company drive growth by converting traditional “analog” experiences to digital ones, and by overseeing operations in the rapidly-changing digital channels: mobile applications, social media and related applications, as well as web-based information management and digital marketing.

CDOview

CDO roles are permeating every large consumer facing organizations.

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26
May

Health Exchanges, Consumerism and Payers – Digital Transformation Underway

DigitalHealthcareEvolutionEmployee Benefits and HR are going digital. New firms like Workday and Zenefits are transforming HR into the multi-tenant Cloud.  New firms like BenefitFocus, Liazon (acquired by TowersWatson), Healthcare.gov and others are moving employee benefits to the cloud.

Employee benefits and health insurance in the U.S. is at the cusp of a major transition from an employer-driven payer model to a employee driven digital model.

Private and public health insurance exchanges with a defined contribution approach represent a significant step in this journey. There are also clever risk shifting strategies emerging where employers are moving part-time workers onto public exchanges.

The spend on employee benefits in the U.S is staggering. In 2011, employers spent on $1.64 trillion on employee benefits alone.  Healthcare benefits are the 2nd costliest line item for companies in the U.S. So, companies are taking aggressive steps to reduce this spend.  Employers are digitizing HR and moving employees to private exchanges at faster than anticipated rate. Consider this:

  • IBM moved to a private health exchange…Extend Health private exchange will be handling plan options for 110,000 IBM retirees
  • Walgreens moved employees to a Corporate Health Exchange.  Of the 180,000 Walgreen employees eligible for healthcare insurance, 120,000 opted for coverage for themselves and 40,000 family members. Another 60,000 employees, many of them working part-time, were not eligible for health insurance.
  • Trader Joe’s  — decided to send some employees to the new public exchanges. Trader Joe’s has left coverage for three-quarters of its work force untouched but is giving part-time workers a contribution of $500 to buy policies. Because of the employees’ low incomes, the company says it believes many will be eligible for federal subsidies to help them afford coverage.
  • Time Warner will direct retirees to an exchange to get health coverage

The move to patient-centered, consumer-driven, and value-based models is real. The market size is enormous.  Healthcare spending is forecasted to be ~$3.1 trillion in 2014, with $620 Bln of this paid by U.S. employers.  In 2013, employers contributed 32% more in health care expenses than 2008.  More recent data about the changing insurance and delivery landscape.

ChangingHealthcareEcosystem

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