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Social Distancing Doesn’t Have to Interrupt B2B Customer Relationships

With the right tools and skills, remote selling can be just as effective as meeting face to face.

Firms reluctant to make the shift to digital selling are finding that their hands are being forced as social distancing makes traditional interactions between suppliers and customers impossible.

The COVID-19 pandemic is changing the ways suppliers and customers interact with remarkable suddenness and scale.  B2B companies that rely on large sales forces, networks of intermediaries, call centers, and visits from technical support teams are particularly vulnerable to having their customer relationships interrupted. Making a shift to digital selling is an important way to sustain supplier-customer relationships throughout the pandemic and to exit it with capabilities to accelerate revenue-building once customer demand improves.

B2B companies that have successfully made the shift to digital selling – organizations such as integrated logistics giant Maersk and the commercial arm of ING bank – have reoriented themselves and are now using data and digital tools to acquire new customers; sustain and grow share of wallet among established customers; expand the number of buying centers within existing customer organizations.

“Making a shift to digital selling is an important way to sustain supplier-customer relationships throughout the pandemic.”

These companies have taken advantage of recent B2B advances in digital targeting, personalization, outreach, content creation, account-based marketing (ABM) and always-on marketing, to position themselves well in today’s uncertain times. A digital selling shift involves moving to a selling approach that relies extensively on digital marketing and data-driven selling. It integrates sales and marketing in a tightly linked partnership that is data-driven, digitally powered, and foregoes the need for person-to-person contact.

During a digital selling shift in the current environment, B2B leaders pursue revenue-generating paths to address the parts of the sales funnel that at immediate risk and provide the greatest growth opportunity once recovery begins. The risks and the opportunities will vary by company and industry. For established leaders in mature industries, the greatest risks and opportunities will often occur in the parts of the funnel dealing with renewal, cross-sell and supporting existing relationships. For insurgent companies or rapidly growing sectors, the opportunities and risk may reside primarily at the top of the funnel in acquiring new customers and encouraging them to make an initial or trial purchase.

Our study of successful digital transformation in B2B has uncovered several paths leaders can take to reduce their risks of selling disruption and boost their opportunities to build demand as economies begin to recover:

Demand Generation to accelerate customer acquisition

The explosion of data and a rapidly expanding set of vehicles for reaching B2B decision-makers is making it possible to create direct relationships with end customers without cutting out their sales representatives, channel partners, distributors, advisors, or other middlemen. These channel and content alternatives are enabling established sellers to generate leads for their sales as well as for their intermediaries. Engaging in demand generation provides an added benefit: it creates a direct relationship with the customer that enables suppliers to learn from users and buyers, test alternatives, and more effectively probe for new opportunities. This path may be particularly important to insurgent companies or companies in rapidly growing sectors.

Digital Sales Enablement to accelerate cross-selling and boost value

Here, companies use digital tools and digitally collected data to sell more effectively. Sales engagement and relationship management platforms, including those of Salesforce.com, Oracle, and SAP are so well established that Gartner reports that the market reached $48.5 billion in 2018 and represents a quarter of all corporate purchases of enterprise software. Sales enablement platforms, networks, and apps help individual salespeople achieve more and help sales teams work more effectively together. In the past few years, these platforms have shifted from individual customer relationship management to helping the sales teams engage more fully with their customer’s entire decision-making team. The payoff is immediate: better equipped and coordinated sales teams perform better. They generate more revenues, strengthen customer relationships, and stay with companies longer. This path may be particularly relevant to leaders in mature industries.

Digital Relationship-Building

New, more targeted vehicles, such as LinkedIn advertising, along with compelling content (such as video and virtual reality) have paved the way for Account-Based Marketing (ABM). ABM is more personalized and tailored to the needs of individual decision-makers than traditional push email and digital advertising campaigns. As an integrated approach, it combines salesperson interactions and digital engagement for maximum efficiency and impact. Its digital components extend engagement into an anytime, anywhere experience through the 24/7 advantage of online and mobile vehicles. This path is likely to be relevant to all companies with sales teams whether they are leaders or insurgents.

Digital Customer Support

Companies are also using digital technologies to shift more of the routine chores online. B2B companies are now using advanced AI bots in combination with live person-to-person chat to enable customers to easily order parts and accessories and get problems resolved online. Companies are also shifting their technical support and client-learning functions to digital formats. These new tools boost team efficiency and effectiveness through improved resource deployment and enable customer 24/7 customer support. This path is helpful in any industry where technical support or customer training is an important part of the supplier value proposition.

Direct Digital Commerce to accelerate acquisition and cross-selling

One of the biggest opportunities digital has created for customers is allowing them to make purchases directly from suppliers and bypass intermediaries. As more customers demand 24/7 access, intermediaries’ have become increasingly open to allowing suppliers to directly engage with customer segments that are hard to access, fulfill offers that are costly to serve, or supply information directly that enhances the customer experience. Direct commerce can be valuable at renewal, upgrade or cross sell occasions in addition to initial purchase. It’s important that suppliers determine how they will integrate direct digital commerce solutions with their intermediary relationships or their own salespeople. This path has broad relevance for both incumbents and insurgents but the scope of bypassing the intermediaries will vary based on the power of the intermediaries and the willingness of the supplier to challenge them.

Our 4 Step Approach

By examining case studies in successful transformation by B2B companies we’ve identified a step by step approach to following each path and generating measurable impact:

  1. Choose where to play by understanding where in the sales funnel to sustain or grow customer demand and by understanding the barriers customers face in achieving their goals.
  2. Determine how to win by building a compelling digital strategy based on clarifying the target, capturing the target’s attention, cultivating their interest, and converting them to buy, buy more, or recommend to others.
  3. Accelerate what to do by using scrum agile methods to conduct a series of sprints to pilot new digital selling approaches, scale previously piloted approaches, or build capabilities required for digital selling.
  4. Ensure you have who is needed by setting up and enabling a customer data team with the resources they need to put in place a system to undertake the shift and maintain progress through continuous customer-driven improvement.

FINAL THOUGHTS

Making the digital selling shift makes sense in ordinary times.  At a time when in-person contact is extremely difficult it is even more important.

Joerg Niessing, a faculty member at INSEAD and Fred Geyer, a consulting partner at Prophet, are authors of  The Definitive Guide to B2B Digital Transformation upon which the conclusions in this article were based. Visit this website to learn more and get your copy of the book here

REPORT

The Conversational Brand: Strategy for a Digital-First World

Digital assistants—whether embodied in a voice agent, a bot or both—change the way we think about brands.

Foreword

The evolving COVID-19 pandemic has thrust us all into a new, urgent reality, one that—perhaps permanently—is challenging assumptions about how we live and work. From a business perspective, the pandemic is rapidly exposing the vulnerabilities in our strategies, systems and processes, and accelerating our reliance on digital systems that scale and connect where people cannot.

In this context, digital assistants such as chatbots and voice agents have a valuable role to play. They can support business resilience and reduced operational expenses, freeing up service and support representatives to focus on higher urgency, more sophisticated customer interactions; deliver needed information and services; become a source of “voice-of-the-customer” insight; or provide a moment of humanity and helpfulness when customers need it most.

The report that follows lays out strategic and brand guidelines for designing and activating digital assistants. We hope you find it valuable as you navigate this challenging time.

Susan Etlinger & Darcy Muñoz
April 8, 2020

Executive Summary

Digital assistants — whether embodied in a voice agent, a chatbot, or a combination — change the way we think about brand, from a generally static and visual experience to one that is dynamic and conversational. They unlock new strategic possibilities for customer and ecosystem engagement, and, as a result, raise questions about how brands should sound and behave in dynamic, often unpredictable situations. Finally, they compel us to address questions of brand architecture, identity, behaviors, language choices, movement, and tone in an unprecedented way.

This report, based both on independent research and direct consulting experience with global brands, addresses the opportunities of digital assistants and the conversational technologies that make them possible. We focus on conversational brand strategy, the key elements of persona development, and how to build engaging and trustworthy conversational experiences. Finally, we include a checklist to help business leaders plan for the risks and opportunities of incorporating conversational technologies into a well-considered brand strategy.

This report includes the following:

  • How to build a conversational brand that supports business strategy
  • Key elements of a conversational brand identity
  • Fundamentals of a trustworthy conversational experience
  • A checklist & assessment to guide planning efforts and gauge progress

Is your organization well-positioned to deliver strategic, on-brand and trustworthy customer experiences using digital assistants?

Take our assessment to find out.

Download the full report below.

Download The Conversational Brand: Strategy for a Digital-First World

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BOOK

The Definitive Guide to B2B Digital Transformation

FRED GEYER

Summary

Sustained, profitable growth is increasingly uncommon for B2B companies as they face changing market dynamics and the threat of digital disruption. This book guides B2B leaders along a step-by-step path to uncommon growth through three transformative shifts:

  • The Digital Selling Shift to digital demand generation
  • The Digital Experience Makeover to digital customer engagement
  • The Digital Proposition Pivot to data-powered, digital solutions

Prioritizing customers over technology is the key to success.

The current paradigm of technology-led transformation is a recipe for failure. Successful digital transformation puts technology at the service of customers.

Rich case studies from Maersk, Michelin, Adobe and Air Liquide with best practices from IBM, Salesforce.com, Johnson & Johnson, ThyssenKrupp, and scores of leading B2B companies to illustrate in this book how putting customers at the heart of digital transformation drives uncommon growth.

Order Your Copy Here

Why B2B Leaders Need This Book

Endorsements

Vincent Clerc
CEO, Maersk Ocean & Logistics

“A thought provoking exploration of three crucial transformational shifts for B2B companies.”

David Aaker
Renowned brand strategist and bestselling author of Owning Game Changing Sub-Categories

“This book illuminates the secret sauce of digital transformation in the B2B space: the thrust should come from customers and how digital could improve their experience and relationship with the brand.”

Dr. Lars Brzoska
Chairman of the Board of Management, Jungheinrich AG

“This is a great guide to applying best practices to the formidable challenge of digital transformation in complex markets and supply chains. It provides the tools leaders need to move ahead.”

Lindy Hood
Chief Customer Experience Officer, Zurich Financial North America

“By providing case examples and step by step assistance in determining where to play, how to win, what to do and who to win, this book fulfilled my need for inspiring and pragmatic transformation guidance.”

About the Authors

Fred Geyer is a senior partner at Prophet. He has helped B2B clients in the financial services, healthcare, and technology industries – including Zurich Financial, AXA, Johnson & Johnson Medical Devices, Medtronic, and Avery Dennison – undertake customer-first transformations and address the challenges of digital disruption. Fred’s prior experience as president of Crayola Canada and chief marketing officer, North America, of Electrolux Floor Care, enables him to bring a practitioner’s perspective to making digital transformation work in the real world.

Joerg Niessing is a member of the faculty at INSEAD and is a globally recognized expert and strategic advisor on digital transformation, digital strategy, customer-centricity, and data analytics. He is the program director of INSEAD’s flagship programs “B2B Marketing Strategies” and “Leading Digital Marketing Strategy.” Over the past five years, Joerg has engaged with more than 3,000 executives from a wide range of companies in Europe, the Americas, the Middle East, and Asia, including Google, Kone, Roche, Maersk, Michelin, IBM, Thales, PwC, and Kion.  Joerg’s prior experience as head of Prophet’s Insight and Analytics practice, along with his previous work as a marketing data scientist, inform his insights on ensuring that digital transformations are data-driven, customer-centric, and drive sustainable growth.

Connect

Want to speak to Fred about how to become more consumer-centric and implement the essential shifts needed to unlock growth? Contact us today. And if you’re a leader looking for more insights into the B2B sector then visit the B2B Digital Transformation resource hub here.

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The Secret to Transformational Leadership

Why courage–a trait long discouraged by many companies–is now an essential component of cultural change.

“You cannot swim for new horizons until you have courage to lose sight of the shore.”

– William Faulkner

A System of Fear

Following the 2008-2009 financial crisis, the pendulum of decision making swung firmly to conservatism and the avoidance of risk became the key focus for many industries and organizations. Many would say it was long overdue but it was a relatively binary and extreme reaction. It led to a nervousness to act and a clampdown on experimental activity in many quarters. Armies of people were hired, especially in financial institutions, to hard-wire risk avoidance into their processes and systems. This also surfaced in many other industries outside of financial services, with systemic fear not only preventing people and organizations from stepping forward and innovating but paralyzing daily progress through red tape and lack of decision making.

Fear-driven protectionism is not a modern phenomenon, in fact, it’s natural. From our prehistoric origins, we’ve relied on survival instincts, humans have barely evolved beyond their preponderance to scan their environment continually for threats. Yes, we all seek reward but we are much more motivated by loss aversion. Our brains have roughly five times the receptors for threat as we do for reward. This leads us all to constantly look for comfort and familiarity because that is more likely to lead to survival. Humans are also influenced by the group they belong to (read organization here) and the need to continue to belong to the group. Building systems of risk avoidance helps conservatism take hold and the tendency to slow down spreads at the speed of light.

We Need Courage, Not Heroes

It takes courage to break out of that cycle. You have to be brave to take a risk and swim against the organizational tide. Most definitions of leadership include a notion of being at the front, bringing others into a new reality. It’s vital to be clear on what you are doing, where you are going and why, especially if you are going to take a leap forward and risk personal and professional capital on your ‘unusual’ decisions and actions. As Nelson Mandela learned: “Courage was not the absence of fear, but the triumph over it.” Unfortunately, courageous behavior often becomes riskier for leaders the more senior they get. They have more to lose. And consequently, fear rises.

Courage is not a new phenomenon in leadership but we don’t see it as a prominent focus in many organizations today – it’s seemingly lacking from many organizational values or leadership behaviors. Perhaps because we are trying to get away from the traditional, machismo image of a hero leader – so often portrayed as male – courage is not fashionable today. That’s a shame because now is the time that we need it most. Now and in the future.

Courage in leadership can be about being part of a team. It can be about backing other people to give their ideas traction – it doesn’t have to be about direct personal delivery. We often put our favorite sports teams on a pedestal because of the courage they demonstrate in fighting together to the end against their arch-rivals and being able to win as a team on the biggest stages, under unbelievable pressure.

Courage Is a Core Competency for Leaders

In 2018, research for one of our global clients into the requirements to lead their transformation journey revealed the missing link to being courageous. They knew the changes ahead would be difficult and instilling the courage in their leadership and culture was central to raising performance, increasing accountability and driving greater innovation. Equipping leaders with the techniques and permission to show bravery and listen fearlessly is playing a significant part in their turnaround story.

In today’s world of constant change and digitization, leadership is becoming even more important. Our 2019 global research examining the cultural levers for growth demonstrated that in digital transformations, leadership’s role is elevated to be even more fundamental than during a traditional transformation. In fact, building a culture of empowerment and innovation came in the top three priorities for transforming the employee experience – an increase of 65% from the previous year. The transformational levers we uncovered that related most to leadership were setting the ambition and roadmap, role modeling, aligning incentives to break down silos and pushing decision rights downwards – each requiring courage to challenge the status quo, push forward, stay the course and trust others to deliver. And all of these create very uncomfortable situations for a leader to face.

A Culture of Bold Moves

What can you do to build courage into your leadership cadre, your change leadership, and your entire organization? Most of our leadership work is in transformation leadership. There is no silver bullet. The answer lies in the specifics of your situation and ambition. However, there are three things that set the foundations for courage:

  1. Coupling purpose with ambition so that your transformation has a clear meaning and a North Star – making it easier to be brave in pursuit of it.
  2. Equipping leaders with mechanisms to be bold, for instance, developing personalized trigger plans where they focus on their style, their routine and their big decision-making moments, enabling them to prepare for and be courageous at key moments.
  3. Focus on a culture that inspires courage, where leaders and the organization make bold growth moves – creating safe experimentation spaces, valuing improvement ideas, championing customer experience and balancing purpose with profit. Courage is part of your personal character but it is also part of your corporate character, and thankfully it is possible to build it.

FINAL THOUGHTS

Courage is a very powerful and engaging force in any organization. People love to follow brave leaders. It’s difficult to take a bold step into the unknown but that is what’s required if you are to lead lasting transformation. Don’t take it all on yourself. Take a deep breath and take people with you.

Interested to learn more about honing your leadership skills for the digital age? Get in touch

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Defining the Digital Future of Financial Services

Asset-light thinking, “little” data and bundled services are all responding to changing customer needs.

Remember when “digital”, to most banks and financial institutions, simply meant getting online? Mobile apps, online banking, digitized systems for claims, servicing, etc. – this was the first wave of the digital agenda. But those days have quickly moved into the rear-view mirror, as new enablers and disruptors present opportunities, and challenges, for financial services firms to tackle.

“New enablers and disruptors present opportunities, and challenges, for financial services firms to tackle.”

Here, we’ve highlighted the four differentiators that financial services organizations should be considering over the next 5 years and beyond. We have identified the A, B, C and D of disruptive forces seen from the perspective of the customer, the key shifts affecting them, and consequently how financial services companies can adapt to these disruptive factors to drive their business forward.

A: Asset-Light: From Ownership to Access

Banks that will succeed in the next 5 years will make the pivot towards being asset-light. First, this will require becoming asset-light as a company, e.g., smaller real estate footprint, fewer branches, less human staff in place of e-tellers, and so on. It used to be that you had to build it all yourself. Then, you could rent IT-as-a-service (IaaS), and over time you could rent products-as-a-service (PaaS), and eventually software-as-a-service (SaaS). Today, you can pretty much “rent” the entire business-as-a-service (BaaS), freeing you up entirely to focus on your core business. This is why asset-light companies have an advantage – they focus their full attention on their core business while building and scaling faster than ever.

Why Build the Foundation When You can Rent it?

But beyond the physical footprint, asset-light also means adapting to a customer who is more asset-light than ever – fewer houses, mortgages, cars, etc. Creating a more flexible and adapted product range to meet the needs of today’s asset-light customer will require a re-think of your firm’s product and service offerings.

B: Bundling: From More to Less

For years, big banks were a one-stop shop for all your financial needs – from your first savings account to credit card investments, mortgages, loans, and wealth management. These financial institutions had advantages in size (assets under management and customer count) and their global networks added a multiplier effect. They also had strong, globally-minded compliance systems in place to manage the difficult regulatory environment. So, they were hard to disrupt…if you tried to disrupt them in aggregate.

To overcome this competitive advantage, companies disrupted piece by piece, niche by niche, service by service. In the past 10 years, we’ve seen an emergence of niche players who entered the market and disrupted a very specific part of the value chain — Monzo (debit), Robinhood (investing), WeChat and Momo (payments), Revolut and Transferwise (FX), Stripe (B2B), etc. And they won share by being asset-light, freeing them up to deliver a better, more convenient (and sometimes affordable) experience.

But these niche players are no longer babies – they’ve grown up, raised billions, acquired millions of customers, and over time, have begun offering more comprehensive bundling of services.

For the first time since the fintech market took off 10-15 years ago, the big banks are no longer being disrupted in niche areas, they’re facing bigger threats as these formerly-niche-players bundle a more comprehensive set of services. It’s a global trend that customers are far more likely to refer a friend to a fintech than to a traditional bank.

So, today, who’s David and who’s Goliath?

C: Community: From Insular to Interoperable

For nearly a century, banks have thrived as closed systems, keeping data and assets in-house. But the rise of digital gave way to a new way: open source. It started in software, but over time open source became foundational to pretty much all businesses, none more so than financial services.

Meanwhile, openness isn’t just a customer nice-to-have, it’s becoming a regulatory norm. APIs that build and bridge communities and financial ecosystems will become a must. In this environment, financial services firms will need to strategically identify which data sources to share, based not only on what they can monetize, but what customers expect from a financial experience today.

But take note: openness is NOT about creating connections. It’s not simply enough to connect player A to player B.

Success comes down to creating community, which is about much more than connections. It’s about experiences. It’s sticky. Connections are a commodity – anyone can get access to APIs and connect things. But those who really create community do so in a way that creates stickiness, retention, loyalty. There’s a real value exchange, a real reason to come back time and time again.

D: Digital Identity: From Big Data to Little Data

For the past decade, the hype has been on big data. Collecting as much data as possible, storing it, and analyzing it. But the value actually lies in the “little” data — the data exhaust that you as a n=1 give off every day. Your daily schedule, shopping choices, patterns of travel, temperature preference in your home or car, physical health, emotions.

Google coined the term “ZMOT” a few years ago, with the idea that there was a single/zero moment of truth. That critical point when a decision is made. However, the reality is with little data, there are millions of moments of truth. When viewed in aggregate, they provide a much more compelling and interesting perspective of a person’s overall digital identity.

Millions of Moments of Truth

Companies that track, analyze and engage around “little data’ will be – and already are – the big winners, because they know you fully, not just in the realm of their industry or one-off interactions with you. They are becoming stewards of your digital identity.


FINAL THOUGHTS

As we undergo a shift from placing value on share of wallet to share of data, financial services companies are uniquely positioned to be those stewards of our digital identities. What we spend, where we travel, what we save, who we transact with, financial services companies are entrusted with millions of data points. And as trust in social media firms erodes, financial services firms are strongly positioned to be the owners of our digital identities for years to come.

If you would like to assess where your financial organization sits on the path to transformation, and where it can go next, connect here.

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4 Examples of Digital Transformation’s Role in Strategic Growth

E-commerce, social media and branded communities are all intensifying the pace of innovation.

A second big idea in David Aaker’s new book, Owning Game-Changing Subcategories: Uncommon Growth in a Digital Age is digital’s role in the dramatic increase in subcategory competition.

Digital transformation is on the minds of most marketing executives.  Digital’s purpose is often assumed to be tactical in nature–generating customer leads, data analytics or making the customer experience more efficient.  But digital has a key role in strategic growth as well.

The Owning Game-Changing Subcategory book posits that the only way to grow is to create “must-have” subcategories, become the exemplar brand, and build barriers. That has always been true. But in the last decade or two, digital has put subcategory creation on steroids.

“In the last decade or two, digital has put subcategory creation on steroids.”

The frequency of new subcategories emerging has increased by an order of magnitude.  A firm that might have seen a new subcategory every half-decade might now see one every year or every quarter.  Digital is without question the driver of strategic growth and market dynamics. Let’s take a look at four ways in which digital has emerged to play this role:

Digital Technology

Digital technology in the form of sensors, microcomputers, voice recognition, smartphones, cloud computing, analytics and much more provides new avenues to “must-haves.”  Artificial Intelligence (AI) has unleashed new or changed capabilities throughout the value chain. The Internet of Things (IoT) has created smart cars, smart appliances, smart hotels and so on. Nest Thermometer, for example, created a new subcategory by using AI and IoT to control the temperature of homes, offices and industrial buildings.

E-commerce

E-commerce has provided fast, inexpensive market access that bypasses the cost of storefront retailers and personal sales teams. Nearly every product arena has a subcategory created by brands like Dollar Shave Club, Warby Parker, or Casper Mattresses that brought products to market via e-commerce. Even Amazon has developed its own subcategory with a host of digital-enabled “must-haves” surrounding its e-commerce model.

Social Media and Websites

These tools enable communication with reach and impact that is more effective and budget-friendly than traditional advertising or event marketing.  Dollar Shave Club shot out of the gate with a two-minute video that went viral largely because of its humor, establishing a customer base in a matter of weeks.  There was no advertising creative that required specialists and no media budget involving TV and magazines. The Dollar Shave Club experience has been replicated by many of the successful new subcategory entrants.

Brand Communities

Brand communities are groups of people that bond because of shared involvement or even passion in some activity, goal or interest area connected to a brand, and are enabled by digital. This provides a high level of involvement and social benefits resulting in loyalty to the subcategory and its exemplar brand.  The Sephora Beauty Insiders community, for example, is a magnet for people to gather and exchange information about skincare and beauty.


FINAL THOUGHTS

Digital has a tactical and operational role for sure.  But it also has a role to enable strategic growth and thus should be a key business priority.

The e-book version of Owning Game-Changing Subcategories is now available. The book will be available wherever books are sold in early April.

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How Dove Real Beauty Uses Digital Marketing to Stay Relevant

This long-running campaign has converted an authentic and inspiring purpose into tens of millions of shares.

In 2004, Dove provocatively widened the definition of beauty through its landmark Real Beauty campaign, challenging airbrushed stereotypes established by the personal care industry and rallying around the “real beauty” of women everywhere.  Originally positioned as a functional soap brand, Dove’s campaign leveraged digital marketing to provide a new opportunity for social discourse and community building, elevating the brand beyond the product line. Dove didn’t just sell beauty, but self-esteem and acceptance, becoming a brand grounded more in social and emotional benefits than functional ones.

How Far Dove Real Beauty Has Come

A primary reason for the success and resonance of the Real Beauty message was its deep rooting in digital activation at a time before digital marketing was commonplace.  For example, Dove used compelling and provocative videos to provide energy around the campaign, including its 2006 “Evolution” video – one of the earliest viral brand videos on YouTube. Its “Real Beauty Sketches” video also became one of the most-watched videos of all time.  It also launched the Dove Self Esteem Project, a web portal intended to improve the self-esteem of young people by engaging viewers in forums, workshops, articles and videos that educate on topics like body positivity and bullying.

“Digital engagement has become table stakes, audience touchpoints and expectations are changing in profound ways”

Now, nearly 15 years after the initial Real Beauty effort, Dove exists in a digital world that looks very different from the original.  Digital engagement has become table stakes, audience touchpoints and expectations are changing in profound ways and the “cause marketing” space has become increasingly crowded and noisy.  It would have been fair to question whether Dove’s brand message was at risk of fatigue.  However, Dove has continued to maintain energy around its brand and sustain relevance as we enter 2020 – using digital to continue to power its message and positioning.

Improving Brand Relevance Through Digital Transformation

The numbers back this up.  In the Prophet Brand Relevance Index® (BRI), Dove remains the most relevant brand in the Household & Personal category – a position it’s held since reclaiming the top spot from Crest in 2017.  Additionally, the gap between Dove and its category is growing, with a 2019 Brand Relevance score that is 35 percent higher than the category average, compared to 32 percent higher in 2016.  Dove’s score for “Customer Obsession” puts it in the top 10 percent of all brands and above noted customer-obsessed stalwarts such as Chick-fil-A and Southwest Airlines, validating the continued strength of the brand’s emotional connection with its audience.  The brand has also seen a steady increase in purchase consideration from 2014 to 20191, and as more and more brands position themselves more explicitly around a cause, Dove has managed to stand out, with the highest association with a social cause among all brands2.

Examining the moves Dove has made the last few years, it’s clear that it has accomplished this in part by investing in unique, thoughtful and more sophisticated digital marketing strategies.  These digital marketing campaigns – which range from stunt marketing to larger content creation strategies and partnerships – continue to reinforce Dove’s brand positioning, while leveraging more digital touchpoints that audiences interact with.  The approach allows the brand to build off of its earlier momentum by broadening and deepening its exposure with audiences.

Some of Dove’s Best Digital Marketing Strategies

  • In 2015, Dove partnered with Twitter to identify negative tweets about beauty and body image, and then respond to these tweets in real-time as part of the #SpeakBeautiful campaign. This was coupled with a creative advertisement about the ramifications of body shaming during the Academy Awards pre-show.
  • In 2017, Dove teamed up with award-winning photographers to take striking pictures of “real women” – pictures that spotlighted women’s strength, grit and talent. Through a digital back door, these pictures were uploaded to Shutterstock with a search tag of “beautiful” that flooded results for a search term that historically had yielded photoshopped, airbrushed pictures.  Dove then encouraged other photographers and brands to join the cause, and in turn, created a host of informal ambassadors for the Dove message.
  • In 2018, Dove introduced its “No Digital Distortion” mark – a symbol indicating that a picture hasn’t been digitally altered. This symbol runs across all branded content – digital advertisements, social media content and print – and serves as a consistent reminder of the Dove message across both digital and non-digital channels.
  • In the same year, Dove announced a two-year partnership with the Cartoon Network series “Steven Universe” to educate young people on body confidence and speak to the next generation of consumers.
  • In 2019, in partnership with Getty Images, Dove collected over 5,000 images on the Getty website that featured 179 different women, all of which were women from a variety of underrepresented backgrounds. These images were made available for public use, and like the Shutterstock stunt marketing campaign from 2017, created a sense of ambassadorship for users of the pictures.

1 YouGov

2 Do Something Strategic: A Social Impact Consultancy


FINAL THOUGHTS

Dove originally built strong brand equity by repositioning around social and emotional benefits, capturing topical consumer concerns and executing on an integrated marketing approach with a distinguished digital strategy and content.

Now, Dove has broadened its digital footprint through multi-channel campaigns, new-age content creation strategies and partnerships and crowd-sourced stunt marketing, all while maintaining its singular focus around its support of “real beauty” in an increasingly loud “cause marketing” space.

These strategies have been flanked by its legacy digital marketing touchpoints like viral YouTube content and the Dove Self Esteem Project web portal, creating a rich, layered marketing strategy.

Looking ahead to a new decade of digital possibility, Prophet’s team of digital marketing experts will be keeping a close eye on how Dove and others continue to build relentlessly relevant brands through excellence in digital marketing. And we’re excited to see what 2020 will bring.

BOOK

Owning Game-Changing Subcategories

DAVID AAKER

Summary

The only way to grow (with rare exceptions) is with “must-haves” that define game-changing subcategories. These subcategories must offer new or markedly superior customer experiences or brand relationships, an exemplar brand that positions the subcategory and creates barriers to competitors.

Subcategory-driven growth has exploded in the digital era because of technological advances and the fast, inexpensive market access made possible by e-commerce and digital communication.

The alternative, “my brand is better than your brand” competition, rarely generates growth because markets are so stable and difficult to disrupt. The book includes case studies from numerous companies including Airbnb, Etsy, Warby Parker, Prius and Muji to illustrate how subcategory creation has led to uncommon growth.

Highlights

  • Explanation of why growth almost always involves “must-haves” defining new subcategories, earning exemplar brand status, and creating competitor barriers
  • Tips for finding “must-haves” and examples with case studies featuring notable leading brands
  • Deep dive into how digital tech trends like e-commerce, the Internet of Things, brand communities and more that drive growth through subcategory formation

Endorsements

I really LOVE this book!! It is so right for organizations looking to drive growth. Through compelling insights, Aaker shows how to employ the Digital Revolution to create and own  Subcategories highly relevant to customers. A MUST READ book for our Digital times!

Joe Tripodi
Former CMO of Coca-Cola, Allstate, MasterCard, and Subway

David Aaker uses economics and case studies to show how growth comes from inspired breakthroughs that create new subcategories and not from expanding market programs.  Use the 20 takeaways to find your own subcategory breakthrough.

Philip Kotler
The Father of Modern Marketing

David Aaker teaches us how to grow in the digital era by harnessing the power of subcategories. A must have for all business leaders.

Yong-Jin Chung
Vice Chairman, Shinsegae Group (Korea’s Largest  Retailer)

Media

“From Brand to Subcategory Competition” in European Journal of Marketing, Fall 2018

“Winning in the Sharing Economy—Six Keys to Airbnb’s Success, ‘ Journal of Brand Strategy, February, 2019.

About the Author

David Aaker, is the author of more than one hundred articles and 17 books on marketing, business strategy, and branding that have sold over one million copies. A recognized global authority on branding, he has developed concepts and methods on brand building that are used by organizations around the world.

Connect

Want to interview Dave or feature him on your next podcast? Please connect with us or David Aaker directly.

Explore how David Aaker and Prophet can help your business create game-changing brands that resonate with both your customers and employees.

PODCAST

Becker’s Healthcare Podcast: Interview with Scott Davis and Jeff Gourdji

23 min

Scott Becker interviews Prophet’s Scott Davis and Jeff Gourdji, co-authors of the book “Making the Healthcare Shift, The Transformation to Consumer-Centricity” on the Becker’s Healthcare podcast series for insights on what’s driving digital transformation in healthcare today.

Listen here for insights on how healthcare organizations can drive growth through consumer-led transformation.


REPORT

China’s Brand New World

Working with Alimama, we’ve developed a model for brand building, adapted for market forces in China.

Adopting the Brand-Building Model to Win

Brand building in China is at a crossroads. The long-term, equity-building playbook that once worked for Western companies is now less effective, as China’s increasingly tech-savvy and bargain-hungry consumers navigate a digital ecosystem that’s unlike any other. And the approach many local companies use – trying to quickly increase market share by focusing on speed to market, low prices and broad distribution, usually at the expense of branding – is also faltering.

But there is a new way forward. To help both multinational and local organizations build brand equity and drive growth, Prophet and Alimama developed the new Brand META Model, which stands for the Maintain, Evolve, Transform approach. It is an evolved model for brand building that is adapted for the unique market forces in China.

  • Maintain: Maintain the approach of positioning but localize it for different cultures.
  • Evolve: Evolve the way data is collected and activated to identify micro-targets of an audience and the planning process so it is more agile and omnichannel.
  • Transform: Transform consumer experiences to make them more proactive, experiential and hyper-personalized.

Prophet conducted interviews with more than 40 marketing executives who are thoroughly immersed in the Chinese market. The model blends insight about what makes China unique and finds new ways to develop profitable and lasting customer relationships.

To learn more about the Brand META Model, our collaboration with Alimama and how it applies to your business, contact us today.

Download the full report below.

Download The Conversational Brand: Strategy for a Digital-First World

*Fill in all required fields

Thank you for your interest in Altimeter’s research!

REPORT

The State of Digital Transformation 2018

Without ROI data, organizational buy-in remains a top challenge for those leading digital transformation.

Now in its fifth year, our annual “State of Digital Transformation” research continues to document the constantly evolving enterprise. As disruptive technologies and their impact on organizations and markets continue to progress, our research aims to capture the shifts and trends that are shaping modern digital transformation.

In 2019, strategic digital transformation is only becoming more pervasive moving beyond IT to impact competitiveness throughout the organization. Budgets are soaring. The list of disruptive technologies on the radar of stakeholders is expanding. Ownership is moving to the C-Suite and managed by cross-functional, collaborative groups. Customer experience (CX) continues to lead digital transformation investments, but as we observed in 2017, employee experience and organizational culture are also rising in importance to empower and accelerate change, growth, and innovation.

Digital Transformation as an Enterprise-Wide Movement

This year, it’s clear that digital transformation is maturing into an enterprise-wide movement. Digital transformation is modernizing how companies work and compete and helping them effectively adapt and grow in an evolving digital economy.

What’s also evident is that there is still much work to do as companies are, by and large, prioritizing technology over grasping the disruptive trends that are influencing markets and, more specifically, customer and employee behaviors and expectations.

The State of Digital Transformation: 5 Key Takeaways

  • A successful digital transformation is an enterprise-wide effort that is best served by a leader with broad organizational purview. For the second year in a row, CIOs are reported as most often owning or sponsoring digital transformation initiatives (28%), with CEOs increasingly playing a leadership role (23%).
  • Market pressures are the leading drivers of digital transformation as most efforts are spurred by growth opportunities (51%) and increased competitive pressure (41%). With high-profile data breach scandals making daily headlines, new regulatory standards like GDPR are also providing impetus for organizations to transform (38%).
  • While there is a growing acknowledgment of the importance of human factors in digital transformation – like employee experience and organizational culture – most transformation efforts continue to focus on modernizing customer touchpoints (54%) and enabling infrastructure (45%). But many organizations are not doing their due diligence when it comes to understanding their customers, with 41% of companies making investments in digital transformation without the guidance of thorough customer research.
  • Organizational buy-in remains a top challenge for those leading digital transformation. The companies we studied report digital transformation is still often perceived as a cost center (28%), and data to prove ROI is hard to come by (29%). Cultural issues also pose notable difficulty, with entrenched viewpoints, resistance to change (26%), and legal and compliance concerns (26%) stymieing progress.
  • Innovation is staking its claim within the organization. Nearly half of respondents report that they are building a culture of innovation, with in-house innovation teams becoming the norm

Download the full report below.

Download The Conversational Brand: Strategy for a Digital-First World

*Fill in all required fields

Thank you for your interest in Altimeter’s research!

BLOG

Digital Marketing Priorities in Financial Services for 2019

Our research shows that lead generation and customer experience top the list. And hiring is a major headache.

It’s clear that emerging Fintech and Insuretech entrants are shaking up financial services. Across the board – from large to small-scale companies – we’re observing an accelerated need for more digitally fluent marketing organizations to tackle new challenges in an evolving market.

To understand the challenges and priorities impacting the insurance and banking industries today, we turned to Prophet’s digital analyst group Altimeter surveyed 68 global financial services executives as part of their industry-wide 2019 State of Digital Marketing report that spoke to over 500 executives in North America, Europe and China.

“Altimeter surveyed 68 global financial services executives as part of their industry-wide 2019 State of Digital Marketing report.”

The report surfaced three primary digital marketing insights specific to where financial services executives are betting their marketing investments to address business challenges:

  1. Lead generation and customer experience are the
    top digital marketing priorities.
  2. Scaling marketing innovation, the right talent and proving impact
    are the greatest challenges.
  3. Data analysis, marketing automation and UX design are the
    most sought after skills.

Let’s dive into the results.

1. Lead generation and customer experience are the top digital marketing priorities.

Lead generation and customer experience came out on top (see Figure 1) – ranked higher than brand awareness and brand health – a top priority across other industries.

To measure digital marketing success, financial services companies are placing greater emphasis on customer loyalty/customer lifetime value (CLTV) – even before direct revenue (see Figure 2).

We see these forces working within financial services companies that are investing more to acquire customers through digital demand-building activities. Specifically, with the increases in the promotion of banking, investment and insurance products going more digitally direct-to-consumer. We also see loyalty as a rising metric to diagnose and resolve potential attrition challenges before being confronted.

2. Scaling marketing innovation, the right talent and proving impact are the greatest challenges.

Financial services marketing organizations are navigating several challenges with their focus on lead generation and CX development, particularly around scaling, hiring and proving business impact (see Figure 3).

In addition, we learn that compared to other industries, financial services companies are experiencing a much greater challenge in seeing a return on investment for their marketing technology spend with 32 percent saying that it took a long time before they saw any return. Consequently, it is now considered to be their top Martech challenge.

3. Data analysis, marketing automation and UX design are the most sought-after skills.

Financial services companies are now focused on building capabilities in data analysis, marketing automation, and user experience design (see Figure 4) to enable the scaling of marketing innovation across the full enterprise and ultimately to prove business impact.

Financial services companies as a consequence are finding the need for capabilities to apply digital marketing in new ways previously not considered.

These evolving digital marketing priorities are making way for the future


FINAL THOUGHTS

What’s clear from the findings of Altimeter’s 2019 State of Digital Marketing report is that as financial services companies place greater emphasis on driving customer acquisition and shaping customer experiences, marketing must bring in new capabilities formally nascent within the organization, invest in the right marketing technology, and prove business impact on a small – yet scalable – way.

At Prophet, we help our clients drive uncommon growth through transformation. We work with leaders across the insurance and banking categories to understand where to play and how to win to unlock the full potential of the brand and customer relationships. Learn more with our guide to digital marketing excellence here or get in touch today. 

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