Making Leaders Successful Every Day
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1 Making Leaders Successful Every Day
2 Break Down The Silos: How To Organize For The Digital Future TRACY STOKES, Principal Analyst July 11, 2013
3 To reflect the evolution of brand communications to encompass marketing across all media platforms
4 Digital is changing everything
5 Agenda The marketing environment has radically changed Marketers are not prepared for digital disruption Marketers need an organization reboot 2013 Forrester Research, Inc. Reproduction Prohibited 5
6 Agenda The marketing environment has radically changed Marketers are not prepared for digital disruption Marketers need an organization reboot 2013 Forrester Research, Inc. Reproduction Prohibited 6
7 Four significant changes 1. Customer Change 2. Relationship Change 3. Media Change 4. Brand Change 2013 Forrester Research, Inc. Reproduction Prohibited 7
8 1. Customer change: Today s consumers are perpetually connected 2 in 3 US adults own 2+ internet connected devices Source: North American Technographics Online Benchmark Survey (Part 1), Q (US, Canada) US Online adults 2013 Forrester Research, Inc. Reproduction Prohibited 8
9 they connect on multiple devices US online adults spend an average of 20 hours/week online 56% of US adults own a smartphone Forrester forecasts 167 million consumer owned tablets by % of US households have a connectable TV Source: North American Technographics Online Benchmark Survey (Part 1), Q (US, Canada) ; Forrester Research Smartphone Adoption Forecast, 2012 To 2017 (US); Forrester Research Tablet And ereader Forecast, 2012 To 2017 (US); Source: Forrester Research Connected Devices Forecast, 2012 To 2017 (US)
10 their online and offline worlds are merging Three-quarters of US online adults consume some sort of media online weekly Watch TV Listen to the radio Media Consumed At Least Weekly 42% 42% 87% 93% Read Magazines Read Newspapers 38% 55% 66% 74% Online Offline Base: 57,499 US Online Adults Source: North American Technographics Online Benchmark Survey (Part 1), Q (US, Canada)
11 They chose where, when and how they want to engage with you
12 2. Relationship change: from funnel to life cycle Source: January 2013 Embed The Customer Life Cycle Across Marketing 2013 Forrester Research, Inc. Reproduction Prohibited 12
13 3. Media change: From channel to eco system Depth Reach Engagement 2013 Forrester Research, Inc. Reproduction Prohibited 13
14 New media are mass media 133 billion 1 billion 517 million 48.7 million >39 million 200 million 1 billion 2013 Forrester Research, Inc. Reproduction Prohibited 14
15 4. Brand Change: Consumers expect more of brands Desired Brand Building Outcomes REFERRAL PRICING POWER PREFERENCE Consumers Higher Standards Brand Pride Societal Contributions Special Experiences Indispensable Value Four Pillars Of Brand Equity CREDIBILITY LEADERSHIP UNIQUENESS RELEVANCE 2012 Forrester Research, Inc. Reproduction Prohibited
16 From image to experience 2013 Forrester Research, Inc. Reproduction Prohibited 16
17 Agenda The marketing environment has radically changed Marketers are not prepared for digital disruption Marketers need an organization reboot 2013 Forrester Research, Inc. Reproduction Prohibited 17
18 Most can see it coming, but few are prepared for digital disruption There is significant opportunity for digital tools and experiences to change the industry we serve 86% People in our company are excited about the changes that digital will bring to our company 67% People in our company have the skills needed to adapt to the changes that digital will bring to our company 46% Our company has policies and business practices that will enable us to adapt to the changes that digital will bring to our company 36% Percent that agree with each statement (top-2 box) Source: Forrester Research, Digital Disruption Readiness Assessment Preview, Nov Forrester Research, Inc. Reproduction Prohibited 18
19 For years, digital has been additive, not integrated into the organization 2013 Forrester Research, Inc. Reproduction Prohibited 19
20 Digital marketing is disconnected from strategy Digital Marketing Organizational Structures Other Distributed Shared Service Center of Excellence 2013 Forrester Research, Inc. Reproduction Prohibited 20
21 Skills don t match priorities and responsibilities Responsibilities Priorities Skill level Web analytics Search optimization Web site development Social media Web site development Web site maintenance marketing Web analytics marketing Search optimization Conversion tracking Web analytics Web site development marketing Paid search Web site maintenance Paid search Search optimization Paid search Social media Social media Conversion tracking Web site maintenance Conversion tracking 2013 Forrester Research, Inc. Reproduction Prohibited 21
22 Miss opportunities to innovate
23 Agenda The marketing environment has radically changed Marketers are not prepared for digital disruption Marketers need an organization reboot 2013 Forrester Research, Inc. Reproduction Prohibited 23
24 Marketing leaders must ADAPT their organization to keep pace with the perpetually connected consumer
25
26 Create a federation not an org model Adaptive Marketing Confederation A flexible structure and culture of working with marketing staff, partners, and systems that enables brands to respond quickly to their environment to align customer and brand goals Forrester Research, Inc. Reproduction Prohibited 26
27 The confederation includes three main elements 2013 Forrester Research, Inc. Reproduction Prohibited 27
28 Constitute marketing operations as a strategic not just executional - partner 2013 Forrester Research, Inc. Reproduction Prohibited 28
29 Technology skills are critical to success Please rank the critical skill sets needed for a team like yours to be successful Analytics IT/Infrastructure Collaboration Operations Speak/write Customer service Market research Usability Product management Project management Forrester Research, Inc. Reproduction Prohibited 29
30 In fact, digital staff today are more ops than marketing Please mark each function that your interactive marketing team is responsible for. (Multiple responses accepted). Source: Q1, 2012 Digital Marketing And ebusiness Panel Survey 2013 Forrester Research, Inc. Reproduction Prohibited 30 30
31 Recognize that technology is essential to marketing strategy Dedicate a team to marketing operations Adopt an agile approach to marketing innovation Use the team to support multiple marketing roles Empower engineers to be business innovators 2013 Forrester Research, Inc. Reproduction Prohibited 31
32 Create a collaborative marketing services provider roster 2013 Forrester Research, Inc. Reproduction Prohibited 32
33 Focus on your core marketing challenge, not channels transforming a business building experiential brands generating demand engaging audiences 2013 Forrester Research, Inc. Reproduction Prohibited 33
34 Adopt new agency orchestration models
35 Acculturate agency partners into the business
36 Create a digital culture 2013 Forrester Research, Inc. Reproduction Prohibited 36
37 Develop digital business leaders 2013 Forrester Research, Inc. Reproduction Prohibited 37
38 Hire for attitude, not just for tactical experience Collaborative Bring people together to nimbly adapt to change Creative Develop new concepts and strategies Curious Customer- Centric Explore what is new and different Care passionately about understanding customers 2013 Forrester Research, Inc. Reproduction Prohibited 38
39 Publicize your digital efforts-loudly
40 Recommendations Tackle organization as a process, not an end state Lead with a digital mindset to foster innovation Prioritize ownership over organization 2013 Forrester Research, Inc. Reproduction Prohibited 40
41 Questions
42 Thank you Tracy Stokes
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