Post on 20-Jan-2017
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1. INTRODUCTION
The emergence and adoption of digital communication technology has rapidly transformed
businesses, consumers, governments and industries around the globe (Accenture, 2015).
Organisations have embraced digital and are shifting to address implications, manage
consequences, and capitalise on opportunities presented by these new digital
communications platforms (Accenture, 2015). Organisations that are responsive, transparent
and willing engage in direct dialogue with their constituents and customers on their chosen
platforms are increasingly rewarded in this new landscape (Bishop, 2015). Those that fail to
adapt find it increasingly challenging to get their stories out, manage their brands, and
develop goodwill amongst their constituents (Cruz, 2015). The shift to digital communication
has changed the way that people expect to find, share, and discuss information, and has
opened whole new models for engagement and participation in which public discourse occur
online and in social networks (Bommel, Eldeman and Angurman, 2014). The volatility,
uncertainty and the rapid changes makes it an organisational imperative to transform and re-
imagine their enterprises through developing new skills, practices, and policies in order to
effectively communicate, engage, and manage their brand in this new environment (Evans,
2015). Because wireless internet, tablet computers, and smart phones have also become
widespread, people now expect to be able to access and share information on a wide variety
of computing devices and effective communication strategies take this into account and
choose content platforms that are widely supported on a variety of devices (Walters, 2015).
According to Guzman, Cassidy and Spencer (2015) reaching an audience in this
environment demands strategic and skilful use of digital communications and analytics tools,
as well as basic investments in creating compelling stories and content. The argument for
this paper is that, while early in its evolution, digital transformation represents the next big
thing in customer experience and, ultimately, how business is done. Those companies that
“get it” and invest more in learning about their digital customers’ behaviours, preferences,
and expectations will carry a significant competitive advantage over those that figure it out
later (if at all). This essay details what digital really is and how organisations and consumers
are embracing this digital transformation and the challenges and opportunities that emerge
throughout the process. It will explore the strategic utilisation of the digital platforms and how
digital is leading the brand in 21st century and will discuss the notion of public sphere and
how it influences public opinion, the role of the new consumer behaviour and the disruptive
technologies and lastly discuss the importance of measurement in digital. This discussion
will focus on the South African digital landscape as the case study for this paper.
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1.1 BACKGROUND
1.1.1 What ‘digital’ really means?
According to Walters (2015) the scope of the concept of digital is broad and complex hence
defining it is a challenge. McDonald (2013) states that digital is an adjective describing an
increasing information intensity and connectedness of physical resources. Resources like
facilities, processes, people, teams become digital through the application of technologies
that extract information and connect resource and its information to other resources
(Elderman & Singer 2015). Bishop (2015), argue that thinking of digital as a set of
technologies (analytics, big data, mobile, cloud, social etc.) limits digital potential to the
instrument rather than the application. A smartphone has information intensity and
connectedness, but it requires applications to transform value and disrupt industries
(McDonald, 2013). The term application should be considered broad going well beyond
‘apps’ to the ecosystems we are able to build based on making things digital (Cruz, 2014).
Digitalisation is the transformative process for turning digitised resources into new sources of
revenue, growth and operational results. Creating a competitive premium is the goal of a
digital business. Cinman (2013) states that digital businesses create competitive edges
based on unique combinations of digital and physical resources, they therefore do things
that others cannot and in ways that build comparative advantage.
According to Dorner and Eldelman (2015) the 21st century has been termed the digital era
and the companies today are rushing headlong to become more digital. But what does digital
really mean? For some executives, it’s about technology, for others, digital is a new way of
engaging with customers and for others still, it represents an entirely new way of doing
business. None of these definitions is necessarily incorrect (Dorner & Eldelman 2015).
However such diverse perspectives often trip up leadership teams because they reflect a
lack of alignment and common vision about where the business needs to go (Accenture,
2015). This often results in piecemeal initiatives or misguided efforts that lead to missed
opportunities, sluggish performance, or false starts (Cruz, 2015). Dorner and Eldelman
(2015) further state that even as CEOs and managers push forward with their digital
agendas, it’s worth pausing to clarify vocabulary and sharpen language. Business leaders
must have a clear and common understanding of exactly what digital means to them and, as
a result, what it means to their business (for a deeper look at how companies can develop
meaningful digital strategies and drive business performance. Notable is that although it can
be tempting to look for simple definitions, but to be meaningful and sustainable, one believes
that digital should be seen less as a thing and more a way of doing things. For the purpose
of this document the operational definition of digital will be made more concrete by breaking
it down to three attributes which are creating value at the new frontiers of the business world,
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creating value in the processes that execute a vision of customer experiences, and building
foundational capabilities that support the entire structure.
1.1.2 Creating value at new frontiers
Dorner and Eldelman (2015) argue that being digital requires being open to re-examining
your entire way of doing business and understanding where the new frontiers of value are.
For some companies, capturing new frontiers may be about developing entirely new
businesses in adjacent categories; for others, it may be about identifying and going after new
value pools in existing sectors (Accenture, 2015). Unlocking value from emerging growth
sectors requires a commitment to understanding the implications of developments in the
marketplace and evaluating how they may present opportunities or threats (Andrews, 2015).
The Internet of Things, for example, is starting to open opportunities for disrupters to use
unprecedented levels of data precision to identify flaws in existing value chains. Accenture
(2015) gives an example of an automotive industry where cars connected to the outside
world have expanded the frontiers for self-navigation and in-car entertainment.
Dorner and Edelman (2015) also state that being digital encompasses, being closely attuned
to how customer decision journeys are evolving in the broadest sense. This then means
understanding how customer behaviours and expectations are developing inside and
outside your business, as well as outside your sector, which is crucial to getting ahead of
trends that can deliver or destroy value.
1.1.3 Creating value in core businesses
Digital’s next element is rethinking how to use new capabilities to improve how customers
are served (Dorner and Edelman 2015). This is grounded in an obsession with
understanding each step of a customer’s purchasing journey regardless of channel and
thinking about how digital capabilities can design and deliver the best possible experience,
across all parts of the business. For example, the supply chain is critical to developing the
flexibility, efficiency, and speed to deliver the right product efficiently in a way the customer
wants. By the same token, data and metrics can focus on delivering insights about
customers that in turn drive marketing and sales decisions.
Critically, digital isn’t about just working to deliver a one-off customer journey. It’s about
implementing a cyclical dynamic where processes and capabilities are constantly evolving
based on inputs from the customer, fostering ongoing product or service loyalty. Making this
happen requires an interconnected set of four core capabilities:
Proactive decision making
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Cruz (2014) states that relevance is the currency of the digital age. This requires making
decisions, based on intelligence, that deliver content and experiences that are personalised
and relevant to the customer. Remembering customer preferences is a basic example of this
capability, but it also extends to personalising and optimising the next step in the customer’s
journey. Data providers such as Click Fox, for example, blend data from multiple channels
into one view of what customers are doing and what happens as a result (Accenture, 2015).
In the back office, analytics and intelligence provide near-real-time insights into customer
needs and behaviours that then determine the types of messages and offers to deliver to the
customer (Dorner and Edelman 2015).
Contextual interactivity
According to Dorner and Edelman (2015) this means analysing how a consumer is
interacting with a brand and modifying those interactions to improve the customer
experience. For example, the content and experience may adapt as a customer shifts from a
mobile phone to a laptop or from evaluating a brand to making a purchasing decision. The
rising number of customer interactions generates a stream of intelligence that allows brands
to make better decisions about what their customers want. And the rapid rise of wearable
technology and the Internet of Things represents the latest wave of touchpoints that will
enable companies to blend digital and physical experiences even more.
Real-time automation
To support this cyclical give-and-take dynamic with customers and help them complete a
task now requires extensive automation Dorner and Edelman (2015). Automation of
customer interactions can boost the number of self-service options that help resolve
problems quickly, personalise communications to be more relevant, and deliver consistent
customer journeys no matter the channel, time, or device. Cruz (2015) states that
automating the supply chain and core business processes can drive down costs, but it’s also
crucial to providing companies with more flexibility to respond to and anticipate customer
demand.
Journey-focused innovation
Serving customers well gives companies permission to be innovative in how they interact
with and sell to them (Dorner & Edelman 2015). That may include, for example, expanding
existing customer journeys into new businesses and services that extend the relationship
with the customer, ideally to the benefit of both parties. These innovations in turn fuel more
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interactions, create more information, and increase the value of the customer-brand
relationship.
Building foundational capabilities
The final element of the definition of digital is about the technological and organisational
processes that allow an enterprise to be agile and fast. This foundation is made up of
elements that include
Mind-sets
According to (Cruz, 2015) being digital is about using data to make better and faster
decisions, devolving decision making to smaller teams, and developing much more iterative
and rapid ways of doing things. Thinking in this way shouldn’t be limited to just a handful of
functions. It should incorporate a broad swath of how companies operate, including
creatively partnering with external companies to extend necessary capabilities (Mckinsey,
2015). A digital mind-set institutionalises cross-functional collaboration, flattens hierarchies,
and builds environments to encourage the generation of new ideas. Incentives and metrics
are developed to support such decision-making agility.
1.4 Digital is about unlocking growth now
How companies might interpret or act on that definition will vary, but having a clear
understanding of what digital means allows business leaders to develop a shared vision of
how it can be used to capture value.
2. THEORETICAL FRAMEWORK FOR DIGITAL: TECHNOLOGICAL DETERMINISM
Technological determinism, simply put, is the idea that technology has important effects on
our lives (Clark, 2011). According to Chandler (2014) the technological determinist view is a
technology-led theory of social change that views technology as 'the prime mover' in history.
According to Chandler (2014) technological determinists, particular technical developments,
communications technologies or media, or, most broadly, technology in general are the sole
or prime antecedent causes of changes in society, and technology is seen as the
fundamental condition underlying the pattern of social organisation. (Chandler, 2014)
technological determinists interpret technology in general and communications technologies
in particular as the basis of society in the past, present and even the future. Technology
changed society and in its most extreme form, the entire form of society is seen as being
determined by technology: new technologies transform society at every level, including
institutions, social interaction and individuals (Qualman, 2009).This theory argues that
because of technological advances and innovations, humans constantly adapt to these new
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conditions that are brought about. Technology creates a new way in which social
relationships come about and how people interact with one another as well as the changes
that occur from a cultural perspective. In a post-modern environment, the digital platforms
and the information that is available gives a relatable space in which consumers are able to
relate to the world. Taking the technological determinism theory into consideration, McLuhan
(1964) argued that the environment in which people live and is around them influences them
and a communication medium has the power to enhance the stimuli that they are exposed
to. This exposure acts as extension of individuals self and so the change in human’s social
as well as cultural behaviour can be evident even in a post-modern world (Clark, 2011).
Technological determinism has two approaches in which the first one stipulates that there is
one communication technology that is the sole cause of social change and behaviour in an
organisation (Chandler, 2014). If technology is not the sole cause, it at least needs to be one
of the determining circumstances for the sociological change and another approach in
contrast explains that instead of technology being the sole role player, it is the facilitator
which could create an opportunity that could see a social change. The argument is that
technology gives the option for a change but it does not mean that it will be taken (Chandler,
2014). Technology nowadays is one of the factors that influence an opportunity for change,
technological innovations are able to assist in creating a cultural change which ultimately
shifts the way in which communication occurs which leads to a change and transformation in
the way an individual’s life is shaped (Sayre, 2015). People have become dependent on
technology as it makes daily activities simpler and easier to manage which creates a change
that does become unavoidable. Due to the constant innovations and new developments,
reliance on technology will only increase which means the theory of technological
determinism will continue to remain appropriate. In a post-modern environment individuals
make use of digital platforms to enhance their lifestyles and this has been evident in the
changing of behaviour. Thus is seen in how technology has the individual, the business and
the society as they get to change and re imagine their ways of doing things in order to adapt
and embrace the change.
3. STRATEGIC UTILISATION OF DIGITAL PLATFORMS
3.1 Creating new frontiers: the pathway to growth
Recent Accenture research (2014) uncovered empirical evidence that deep and broad
penetration of digital technologies in businesses and economies which is called “digital
density” leads to quantifiable improvements in productivity that can accelerate
competitiveness and economic growth. The advent of digital has resulted in a scale
disruption of business models to enter a new space or redefine the existing ones and
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organisations and leaders have embraced this transformation to digital and are re-imagining
their businesses not just as a way to improve their own internal processes, but also as a
driving force for how they grow (Mackay, 2014). This broad digital ecosystem provides the
platforms that serve as the new blueprint for how companies will build connect, and deliver
applications specific to industry problems and opportunities (McKinsey, 2015). Companies in
every industry are trying to find new sources of value through digital technology by using re-
imagination which is putting the user at the centre of everything that company does including
strategy, product development, operations, marketing, sales, and customer service and this
entails the reshaping of an entire enterprise and its capabilities system around the customer
or user experience (Cruz, 2015). According to Dorner and Edelman (2015) most companies
are exploring new business models, developing new user experiences, and experimenting
with new channels and platforms all with the strategic goal of creating significant value in a
digitally powered business environment. To get there, most of these companies are pursuing
the same laundry list of initiatives which includes re-engineering processes and products,
investing in technology platforms, and launching efforts to achieve back office efficiency.
Many are recruiting digitally native talent, setting up internal venture funds, or crowdsourcing
new digital business ideas to get a jump start on this transformation (McKinsey, 2015).
KFC South Africa is a company that has re-imagined its business with the help of a giant
agency is South Africa OgilvyGloo. Ogilvy managed to convey a distinctive brand identity for
KFC and created a tangible emotional connection with its targeted customers which are
youth. The Soundbite campaign reinforced the connection across many different channels:
bricks-and-mortar retail stores, websites, and mobile apps. Evans (2015) from Ogilvy stated
that they fundamentally believed that digitally integrated experiences are right for targeting
the youth market. KFC have been progressive partners in considering new ways to use
technology to engage and deliver against their business objectives. The technology that was
used then allowed us to create a highly engaging experience that we felt customers would
not only love, but also talk to others about. Happily for us, we were right! The reactions from
consumers has been very positive. We ultimately adapted technology that is already on the
market for other commercial uses to support our idea. With our own twist and additions, this
became the 'record table'. These beautifully designed table services were designed
specifically to appeal to the target audience. This serves to show that companies will to re-
invent their business process and embrace their customers and digital, they are able to
deliver value and add value to its brand.
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3.2 The Internet of things
Goosen (2015) state that the internet of things is driving the need for organisations to
transform into digital businesses and this is disrupting business operations like never before.
To be globally competitive means being able to make rapid business decisions (Furlonger,
2014). For companies this means digitisation of process, automation of workflow, access to
global information affecting ones business and being able to respond with agility, based on
factual information. Gordon (2015) writes that digitisation is not just about scanning and
saving a document but having the ability to scan, extract, analyses and search information in
a document automatically as an example. Customers are more connected and this has
resulted in an enormous increase in the amount of data flowing into the organisation. For
companies to survive this revolution, they have to become digitally enabled and take
advantage of business analytics to make sense of this data this is the view of Isaac
Mophatlane, CEO of Business Connexion (2015). “Through the internet of things we are
seeing a vast increase in the amount of devices connecting to organisations, “You can no
longer ignore the fact that you can control everything remotely and that is being driven
through the internet and the cloud.” He further states that for companies to remain relevant
in this age of the digital business, they will have to have a solid strategy in place to manage
these access points, devices, increased data and the potential security risks that come with
it. “You must be able to monitor these devices, knowing where they are in your organisation
and what information they are accessing, otherwise you are leaving your organisation
extremely vulnerable.
Accenture (2014) state that mobile devices mean that our customers have access to the
internet wherever they go. Marketers now have layers of contextual information about
customers’ behaviour, added to what they are already able to track using web analytics tools
(Andrews, 2015). The entwined threads of the Internet of Things and wearable computing
take this theme of mobility and data to the next level. These trends see everyday objects
such as cars, watches, fitness trackers, televisions, and even fridges and thermostats
connected to the internet. All of a sudden, there is a wealth of new customer data available
as this network of devices share information with each other and the people who use them.
And they will be even more new points of interaction and transaction with customers, thanks
to new connected devices.
3.3 Big data
Mullins (2015) argue that preoccupation with the customer is the core in the digital
transformation and reimagining and this is where data has an important role to play. Data
and the insights it yields allow companies to align and re-imagine the organisation from the
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customer experience, decision journey and brand touch points (Morris, 2015). The
companies use “big data” and analytics to gather insights in real time from what people do
on each of these channels, and they deploy those insights in real time as well, providing
products and services that respond instantly after sensing and analysing what people need
or expect (Morris, 2015). The operations are set up to react and pivot on these insights with
nimbleness and ease. They continually measure the impact of these products and services,
and set a “test and learn” agenda that can react quickly and iteratively to feedback from
anywhere (Cruz, 2015). Perhaps most important, these companies position their digital
investments not as costs, but as catalysts: using them to build their capabilities, drive their
culture, and accelerate their progress, creating a virtuous circle where behaviour change
fuels more digital innovation. The digital process is a viable contributor to the business, with
significant revenue and profit growth rates. The ultimate goal of reimagining your business is
to transform it into a user-focused organisation with the capabilities to create significant
value (McKinsey, 2015). Some brands in South Africa including Discovery and many other
leading companies are following this trend of successfully using big data analytics to
manage the demands of their growing businesses (Discovery, 2014). The investment in a
robust and fully scalable system by Discovery has definitely helped them manage their
business more efficiently (Gordon, 2015). The understanding of customer needs has helped
increase customer retention and enhanced a more targeted and efficient overall operation.
Big data analytics has also had a top-to-bottom impact, from helping decision-makers gain
critical and more accurate insights into the business to helping call centre staff resolve
customer queries much faster. In today’s digitally powered business environment, every
management team wants to play offense, not defense (Cruz, 2015). Every management
team wants to capitalise on expanding digital opportunities for their business. And every
management team fears that a disruptive digital competitor will threaten the company’s
positioning. Reimagining your business can help businesses navigate through all that. It will
be indeed a bold move and re-imagination through human-centred design has become the
prerequisite for developing the businesses, products, and experiences that engage users
and drive significant value creation in which digital platforms serve as the basis of doing that.
4. THE NEW CONSUMER DECISION JOURNEY
“In an era of “DIGITAL DARWINISM” where technology, society, and business models
rapidly evolve, customer experience is often elusive”. (Walters, 2015).
In a world where physical and virtual environments are rapidly converging, companies need
to meet customer needs anytime, anywhere (Furlonger, 2014). Enormous opportunities exist
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for enterprises to take advantage of connected devices enabled by the Internet of Things to
capture vast amounts of information, enter new markets, transform existing products and
introduce new business and delivery models (Bishop, 2015). Creating above-average digital
customer experiences is a key challenge for many organisations, especially given the variety
of platforms available to consumers (Dorner & Edelman, 2015). However, the reward for
getting it right can be a long-lasting relationship, with the maximum lifetime value of your
customers realised (Dorner & Edelman, 2015). One key component in improving the
consumer's digital experience is an accurate idea of the customer journey (McKinsey, 2015).
This illustrates a customer's path through his shopping experience and how he interacts with
brands, platforms, and products. Developing a customer journey model helps brands
pinpoint the key moments of value, opportunity, or friction with consumers (Walters, 2015).
Customer journeys are unique to each product or service. However, to gain the most value
for their efforts, marketers must consider consistent elements to each customer journey. To
capture the customer journey there has a been advent of Zero Moment of Truth which plays
the role of:
4.1 Zero Moments Of Truth
(Google, 2015)
According to Google (2015) Zero Moments Of truth describes a revolution in the way
consumers search for information online and make decisions about brands. ZMOT has
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become a crucial as it has continued to grow in importance and scale, and as consumers'
behaviour evolves, so must the ways in which brands engage those consumers (Google,
2014). Frampton (2015) argue that consumers now have the convenience of discovering and
experiencing products both online and offline that has become available to them every day,
24/7. Consumers in the digital age do not only listen to what brands communicate but they
rely much on peer reviews and and their own personal experiences or encounters with the
brand (Bishop, 2014). According to Accenture (2015), the internet has allowed for
consumers to be constantly exposed to information that is posted online which makes them
more knowledgeable. When consumers are looking information about the brands they
review lot of things they will look at a reviews before they make a purchase and 60% say
that they trust brands that are recommended to them. These statistics show how others
experience now have a stronger impact on decisions that are made by consumers showing a
change in behaviour. In today's always-connected, mobile-first world, how do brands win
ZMOT?
4.1.1 Content is King
Consumers use search to uncover and understand the moments that matter (Google, 2014).
Search is a natural step in the discovery process according to (Lecinski, 2014) in a web
world, search engines offer a lens into a qualified and structured view to help online
consumers focus and make informed decisions. With Google dominating search, marketers
concentrated on improving search ranking through tried and true techniques to ensure that
what they were marketing earned a coveted position in the likely search results a customer
might consider clicking (Lecinski, 2014). In the digital era content is king, for organisations or
brands be reached by their target audiences their need a great deal of content creation that
is relevant to their customers and stakeholders. Content creation has been a trend in the
strategic communication in South Africa with consumers preferring snackable content
(Dallas, 2015). Mckinsey (2015) brands have an unparalleled opportunity to position
themselves via content and storytelling. The rise of the smartphone society means that
mobile-friendly content targeted and designed to meet the specific needs of individual
preferences is an essential part of strategy. All websites need to be mobile-capable and opt
content needs to be snackable. Pulizzi (2014 advises taking a hard look at your content to
see if what you are producing is actually useful for your customers and enriches their lives in
some way. Pulizzi (2014) puts emphasis on the importance of telling stories; define and
answer your customers’ questions; involve your employees in content marketing; and the co-
creation of content with partners.
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4.1.2 Retargeting
This is where re-targeting has an invaluable in role to play in your marketing strategy
(Azionya, et al, 2014). The digital communication allows brand to embrace a technique for
reaching the same customer on different devices and across different digital touch points,
with messages tailored to where he or she is in the customer journey and his or her likely
activities and behaviour at a given time. Retargeting enables brands to reach consumers
with targeted ads across Google, Facebook, Twitter, ad exchanges, networks and across the
different devices they use. By taking a cross-platform and cross-device view of customers,
marketers can nudge them further down the conversion funnel by targeting them with
relevant messages at each point. Pulizzi (2015) believes brands are not taking their content
seriously enough and that a new mindset is needed in order to become the “leading
informational provider for your niche”. Mike Silver of Stretch Experimental Marketing (2014),
specialises in brand activations targeting the consumer directly and incidentally, delivering
up genuine, authentic, real time consumer brand interaction. However, in many cases, he
says brands don’t seed this great content to their social media and PR channels, or don’t
involve the digital agency or their communication agency in the strategy.
A clear picture of your connected customer’s journey: All touch points and related
information that shows exactly how UMOT connects to ZMOT and where your customers
click to continue their journey. `Once you’ve identified the state of shared experiences, it’s
time to develop a strategy to close the experience gap. Start by defining
What is it that you want people to experience?
What is it that you want them to feel and share?
What are people sharing today, where (networks/apps) and how (content)?With technologies
such as wearable computing, the internet of Things, and augmented and virtual reality all
maturing at a rapid speed, the next stage in the development of a connected world is starting
to unfold (Cruz, 2015). In the future, we can expect many of our old assumptions about in-
store marketing and broadcast advertising challenged as digital technologies are woven
deeper into our customers’ lives (Walters, 2015). These emerging trends mean that digital is
no longer just about offering eyeballs. It is about creating personalised customer
experiences that fuse digital technologies with the real world. Such experiences will be
driven by customer data and they’ll bridge the distance between what we once thought of as
the real (analogue) world and the internet. According to Steenkamp (2015) the
Gloo@Ogilvy’s FNB “Switch” campaign is one of the intersected creativity and deliverable
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innovation quite neatly to give consumers a different experiences. This campaign involved
adding an extra layer of code to the bank’s ATMs which allowed non-FNB users to switch
over at the touch of a few buttons. “This work showcases the power of digital to help brands
engage customers whilst adding huge monetary value to their business. Not only was this a
first of its kind communication, but it also helped directly add millions of rands in value to the
bank.
4.2 Public opinion
In the experience gap, there’s the experience we want people to have, which is reinforced by
our marketing messages and strategies (Walters 2015). Then, there’s the experience people
have and share, which usually demonstrates that what “they” say about us is frequently
different than what we say. Driving shared experiences is a form of customer journey
optimisation. What comes back in the Zero Moment of Truth, patterns and context of
questions, what customers find that helps them make decisions, and also why customers err
to locate or value traditional content (Walters, 2015)? Real world impressions as told through
expressions: What product opinions, tips and tricks, cautionary tales and how these shared
experiences influence the impressions of others. When balanced with a premier SEO
program, optimized shared experiences will complement the customer journey wherever
your customers search and share (Google, 2015). What is soon realised is that Moments of
Truth aren’t just moments in time, they become an experience fuelled continuum. The future
of shared experiences and brands isn’t just created, it’s co-created.
Azionya, Benecke, Crystal, Davis, Levy, Muir, Oksiutyz, Verwey and Fereira (2014) states
that digital technology and communication platforms has led to a shift in communication
patterns and moved from two-way conversations to many-to-many, collaborative
communications that usually take place via open platforms. The emergence of new
communication models, which emphasises many-to-many forms of communication, has
transformed recipients into active participants, content consumers into content generators,
and recipients into producers (Obasanjo 2007; Dmochowska 2008; Mullins 2011).
Consumers are no longer passive users, but have become active influencers through the
use of social media platforms. According to Strokes (2008) the experiences that people have
and in turn share is created a powerful collective repository that is indexed and tapped every
minute of every day. In this sharing economy, social media is primarily about collaboration,
users generating content, sharing and connecting (Stokes, 2008). These individuals now
function in an environment where the F-Factor (fans, friends and followers) plays an
important role and this refers to the fact that a person interlinked with many other people on
social networks may have more power to influence, through collective collaboration, than
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others who are less connected (Azionya, Benecke, Crystal, Davis, Levy, Muir, Oksiutyz,
Verwey & Fereira 2014). This is facilitated through sites and social media platforms such as
YouTube, Twitter, Facebook, Wikipedia, LinkedIn, Foursquare, Myspace, Mxit, and blogs.
Social media platforms are very popular within the South African communication context.
Similarly, many South African organisations use social media to build and sustain strong
relationships between the organisation and its stakeholders. In support of this, Meier (2013)
states that the majority of the top 50 brands in South Africa all have Facebook pages, with
an average of 58 000 fans per page and a collective 48% fan growth per month. The
millennials are an important stakeholder group and thus they are a trend driven demographic
changes these are a generation that one can refer to as the digital native hence business
strategies In 2015 are crafted taking into cognisance that this group of people emerging.
A trend that is driving co-creation online is the idea of the ‘sharing economy’ which explains
that the ultimate driver of a post-modern organisation, the internet, has created a fluid
approach of allowing any individual that have access, the power to continuously discover
and share relevant information. Today consumers are pushing this trend even further by
being open to sharing more than their opinion online but even their material possessions
(Marsland, 2015). Accessibility to online platforms are readily available worldwide to anyone
who has access to mobile or digital devices. This means that discussions can be formed
between individuals or various groups across the world. The concept of the super consumer
shows that consumers hold the power and feel free to express their own opinions. Their
experiences, whether it is a positive or negative one, are disseminated on digital platforms
and so individual encounters and events become intertwined in the digital sphere that then
becomes available to either their followers or any person also making use of the specific
platform (Loader, 2014). The information that is shared via social media has become
somewhat of a commodity that is shaped and disseminated which is eventually going to
create an influence on society. This is known as ‘socialnomics’ and the influence can span
across many disciplines which can alter social outcomes (Qualman, 2009).
4.3 The concept of brand stewardship
According to Azionya et al (2014) the use of social media by organisations has resulted in an
environment where communication professionals have had to develop and assume new
roles in order to manage brand reputations in the online spaces where brands have become
communication platforms. Due to the power that consumers now have over organisations
and their brands, organisations are increasingly not in control of the messages sent out
about their brands (Berthon, Pitt & Campbell, 2008). Brands are no longer solely built by the
communication team or brand owners but by different stakeholders, as brands are now
rather connected in an exciting conversation through social networks where stakeholders
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group themselves and make their voices heard when they love or hate a brand. Azionya et al
(2014) states that this has created an environment where communication management is
shifting from communication that is focused on building the brand, to risk management as a
defence. This has given way to a new paradigm, which is referred to as brand stewardship.
Brand stewardship alludes to the fact that the power no longer lies with the brand owners,
but the customers who have been empowered due to the rise of web 2.0 technologies and
digital communication platforms. Klein (1999) argues that this increased connection with
brands afforded by participative web technologies has profound implications for brand
reputation, as consumers are entangled with the culture and identities of the organisations
and it has become imperative for these organisations to develop measurement metrics to
effectively manage this environment.
4.4 Reputation management
Klein (1999) argues that the current business environment, with stakeholders having
increased connection with brands afforded by participative web technologies, has profound
implications for brand reputation. Consumers are entangled with the culture and identities of
the brands they support and feel complicit in the brand’s behaviour (Klein, 1999). This has
forced brands to seek strategies aimed at collaborating and positively leveraging the
influence of web 2.0 technology and to devise new communication strategies aimed at brand
protection rather than brand building. This has given way to a new paradigm that is referred
to as ‘brand stewardship’ and alludes to the fact that the power no longer lays with the brand
owners but the public, that has been empowered due to the rise of web and digital
communication platforms (Azionya et al, 2014). The increase in reputational risk has resulted
in various online reputational management tools and monitoring systems and, in turn, this
has resulted into an environment where the ability to discern brand risk potential has
become a valued ability (Upson, 2010).
5. CONSUMERS AND NEUROSCIENCE
A new set of tools and technologies has emerged over the last several years to measure the
behaviours of consumers (O'Rourke, 2015). These tools, if used responsibly, transparently,
and without violating people's privacy, hold important potential for better understanding
consumer behaviour with respect to sustainability. According to research that was conducted
by Accenture (2015) it got a finding was that CEOs don't believe consumer-stated
commitments to sustainability. One will argue and say that this makes sense as there is a
massive gap between what consumers say and do. Which is why most companies don't ask
consumers what they believe or value; they study their actual behaviours and increasingly
16
their brain waves. Brands, retailers, and market researchers assert that the newest
behavioural tracking and neuroscience tools are designed to help them learn what
consumers want and need. And ultimately they help them deliver more relevant ads and
products (O'Rourke, 2015). Through online tracking mechanisms such as super
cookies, browser fingerprinting, location-based identifiers, behavioural tracking, and social
network leakage, marketers track both real-time behaviours on web sites down to what you
type, mouse over, purchase and detailed personal data (Enerst and Young, 2015). So when
you land on an e-commerce site, without telling the retailer anything about yourself, they
know your age, gender, physical location, favourite websites, favourite movies, comments
you've left across the web, estimates of your income, marital status, whether you own a
home, etc. (O'Rourke, 2015). This sophisticated tracking has also arrived in brick-and-mortar
stores, In-store cellular and Wi-Fi signal tracking systems can monitor consumers as them
move through malls and stores. According to Ernest and Young (2015) there has been an
introduction of video surveillance and eye tracking systems track what consumers look at,
focus on, and are "engaged" by. One of the most far-reaching of these initiatives involves
Facebook's partnership with data firms Acxiom, Datalogix and Epsilon to connect in-store
purchases from retailer loyalty card data to Facebook user profile data. With all the
information that brand are able to capture about the consumers it is important for them to
practise pro-active intelligence and re imagine the customer journey by designing
experiences that really carry through someone to what they are expecting. Neuroscience
equips the marketers and the brands with new capabilities to target and personalise and also
optimise. Except for organisations that were born digital most South African companies have
not managed to embrace the importance of consumer tracking.
6. THE SA DIGITAL LANDSCAPE
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(We are social.org, 2015)
According to Live Internet Stats (2015) with around 24m internet users, today the country is
one of the fastest growing internet markets in the world with a yearly growth rate of 14%. But
with a current penetration rate of around 47%, there is still considerable room for growth.
Affordable mobile technologies and increasingly alluring online services are seeing more
South Africans come online (Kemp, 2015). Additionally, by 2030 the South African
government is expected to have invested R70b (£4bn) to ensure everyone in the country has
internet access (Steenkamp, 2015). Now is a good time for businesses to explore online
channels in the region and many enterprises are already making good headway in engaging
with South African audiences through digital channels. Much of South Africa’s digital
audience are coming online via mobile devices. In January 2015, We Are Social put the
number of mobile owners in the country at 79m and PwC estimates that mobile internet
users in the market will reach 24.4m in 2015 (PWC, 2015). This proliferation of mobile
devices and the current infrastructure and affordability issues surrounding internet access at
home means a lot of internet users are going online in public spaces in urban centres, at
work, in schools and in internet cafes. When they do log on, getting information (via search,
Wikipedia and domestic news sites) and socialising (predominantly on Facebook) are the
biggest online activities.
South African agencies and brands alike are rapidly evolving and adapting to keep up with
changing buyer behaviours and new technologies. Evans from Ogilvy state that we are
slowly seeing a shift from the same old, tired tactics to forward-thinking, effective strategies
that actually get concrete results. This is brilliant news for the South African business-to-
business sector. Over the past couple of years, the digital landscape in South Africa has
18
shifted dramatically. We’ve seen international advertising players invest in the market,
snapping up many of our leading digital marketing agencies and consulting firms to
strengthen their presence in Africa (Media Yearbook, 2015). Agencies are continuously
facing mergers from the larger agencies such WPP and Publicis and these agencies
dominate by merging with strong digital agencies to increase their presence and superiority
of the industry (Media Yearbook, 2015). Digital agencies that have gained momentum are
taken under the larger group to ensure that they maintain a wide spectrum of skills
(Nadasen, 2015). WPP has done this with Quirk and Native VML to strengthen the brand
(WPP, 2015) as well as the merger of Ogilvy and Gloo that gives a small agency a chance to
develop under the guidance of an industry leader (Furlonger, 2014).
Despite the overwhelming usage of digital platforms in South Africa some brands and
agencies are still stuck in their traditional and often obsolete ways of doing business and are
still hesitant to embrace digital. (Cruz, 2015) argue that if these brands take up the digital
communication platforms they will have a great chance at optimal success. This is evident
with what Lotze explains: as redefining of business that had tremendous results. He states
that taking a legacy agency like Marcus Brewster and rebooting the agency was both
surprising and fraught with challenges as the shift to digital and social channels significantly
impacts on agency internal operations, internal meetings, idea generation needs to be
expanded, staff competence needs to be broadened to allow for this expansion, reporting
structures need to change, compensation models, and use of marketing technology, as well
as measurement systems all need to be reviewed however this integration paved a way for
the agency to a variety of opportunities and there is more value in the work that they deliver
for the clients. Also FleishmanHillard president and CEO, Dave Senay (2014): stated “Many
years ago we recognised the changing communications environment and increasingly heard
client demands for integrated solutions. We reimagined and reinvented our business. We
invested in non-traditional talent and new capabilities behind four significant growth areas
driving our business today: the alignment of brand and reputation; analytics and insights;
social enterprise; and strategic integration across paid, earned, shared and owned media
channels. This statement by the CEO reiterates what the argument states that companies
that get it and embrace digital are more positioned to have better competitive advantage
leaving their counterparts wondering what happened.
The year book (2015) presented the shortcomings of the South African digital landscape.
The biggest problem is the issue of talent in the digital industry. According to Mckinsey
(2015) the power of a digital platform is not always apparent until it reaches a certain critical
mass, this serve to show that with the talent digital platforms cannot be effective as they are
19
tools that require strategic utilisation and currently the South African industry has not
invested much on talent and they are lagging behind in as far as leading the digital
transformation. According to Newlan (2015) in digital today the bar of creativity is extremely
high and the South African agencies are not there competing with the best internationally.
This was evident in this year Cannes Lion awards, the 2015 awards were not a happy
hunting ground for South African agencies In fact, the only local digital agency to win
something was Gloo@Ogilvy, which won a bronze in the Digital Media category. The
Cannes Lions International Festival are about creativity and awards effective applications of
technologies, or tried and trusted methods that deliver solid results. That means it’s meant
for wild, out there ideas that push the limits of creative advertising. In that respect, the South
African digital space should be very worried about the slow uptake of digital.
7. MEASURABILITY AND RETURN ON INVESTMENTS
The advent of digital communication platforms has delivered an opportunity for agencies to
deliver measurable and trackable business results today (Walters, 2015). The issue of the
return on investment has been one of the pressing matters in the digital era with clients
wanting agencies to prove the return on their investments. This has been a bit of a trouble in
South Africa and marketers, agencies and publishers that are serious about helping to grow
the accountability of digital advertising should embrace a shift in the international market
from served ad impressions to viewable impressions. With major digital marketing vendors
such as DoubleClick providing the tools to measure viewable ads and the Interactive
Advertising Bureau (IAB) and the Media Rating Council (MRC) promoting the metric, South
Africa’s industry should also get on board. Promoting this metric can help brands to drive
better return on investment (ROI) from their campaigns and enable publishers to drive
premium pricing for certain inventory. We see the international move towards reporting on
the viewability of ads as a significant step towards a more mature and accountable digital
advertising market. According to (Walters, 2014) the advent of viewable impressions
answers common frustrations of publishers and advertisers alike. It addresses the concern
that many advertisers have that they are paying for ad impressions that are not always seen
by users. For publishers, a shift to viewable impressions addresses the devaluation of parts
of their inventory, for example ad impressions below the fold (Walters, 2015). It helps them
to show advertisers that their money is well-spent because people are seeing their ads
(Walters, 2015). It however important to note that in time, viewability will shift from being a
measurement to a transactional currency in digital advertising, says Walters. But its
immediate impact is to help brands and agencies to be more informed in their media
planning since they will be able to gravitate to the placements and environments that offer
20
the best viewability for their ads. The shift towards trading viewable impressions will take
some time, but leading agencies and publishers are already investing in the tools they need
to value, trade, serve and optimise to viewable impressions. The trend will benefit everyone
in the ecosystem by making ad trades more transparent and boost ROI for advertisers.
8. CONCLUSION
In conclusion it is important to note that the emergence and adoption of digital
communication technology has rapidly transformed businesses, consumers, governments
and industries around the globe (Accenture, 2015). Organisations have embraced digital
and are shifting to address implications, manage consequences, and capitalise on
opportunities presented by these new digital communications platforms Organisations that
are responsive, transparent and willing engage in direct dialogue with their constituents and
customers on their chosen platforms are increasingly rewarded in this new landscape
Those that fail to adapt find it increasingly challenging to get their stories out, manage their
brands, and develop goodwill amongst their constituents .The shift to digital communication
has changed the way that people expect to find, share, and discuss information, and has
opened whole new models for engagement and participation in which public discourse
occur online and in social networks. In this volatile digital era business businesses are in
the process of digital transformation and are reimagining their enterprises to ensure that
they are sustainable and able to deliver value for their customers and stakeholders. Digital
has brought in both opportunities and threats and in the context of South Africa they are
companies that have embraced digital communication platforms maintain competitive
advantage even though South Africa when compared to other countries internationally is
still lagging behind in digital transformation.
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