PUTTING DIGITAL TRANSFORMATIONAT THE HEART OF YOUR (MODERN) MARKETING

SCOT T ALLENCMO, Microsoft UK

@ScottAllenUK

MORE PEOPLE

NOW OWN A

MOBILE PHONE

THAN A

TOOTHBRUSH

THERE ARE MORE

MOBILES THAN

PEOPLE ON

THE PLANET

WE ARE A NATION OFSCREEN ADDICTS

AND IT IS SAFE TO SAY

WE LOVE CONTENT!

300 hours of video uploaded to YouTube per minute

300k black listed websites

2m blog posts per day

4.75bn content shares on Facebook per day

BUT ALL THIS MEANS

“I HAVE FOUR BURNING QUESTIONS”

04

How do I balance

short & long-term

objectives?

01 02 03

How do I know my

marketing budget

is being well-spent?

How do I protect

my brand (and my

customers) online?

How much

personalisation

is too much?

MODERN MARKETING

“WHAT IS IT ALL ABOUT”

THE NEED TO TRANSFORM THE WAY BUSINESS IS DONE…THE BOARD LEVEL AGENDA

Boards recognise that to achieve growth businesses need to apply digital transformation to keep place

with rapidly changing customers.

of CEOs concentrated on customer loyalty recognise that mastering

the customer agenda can unlock value and provide competitive advantage88%

73%

78%

73%

79%

concerned that they are

not keeping pace with customer

needs and expectations

concerned about meeting

the different needs and wants

of digital millennials

concerned about the

quality of data on which

their decisions are based

Concerned their current business

models are not disruptive enough

to remain competitive

Source: KMPG Global CEO Outlook, 2016

SO!

THE CUSTOMER

JOURNEY

HAS CHANGED

Awareness

Consideration

Trial

Purchase

Recommendation

Familiarity

Usage

PurchaseIntent

DELIVER ATEVERY STEP OF THE JOURNEY

Understand where your

customer’s are

Identify needs early

Make the moments

matter

Build emotional

ties

Turn customers into collaborators

MODERN MARKETING IMPACTKEEP IT S IMPLE

Sales enablement is

responsible for making the

sales teams and cycle more effective

Creation and nurturing

of customer demand

to generate leads

Reputation programs

seed the market for

effective demand creation

Enablement asset performance

Pipeline acceleration

Consumption & Usage

Contactability

Lead creation & quality

Marketing sourced pipeline

Sales Qualified Leads

Revenue Contribution

Creating awareness

Changing perceptions

Preference shift

Press coverage

REPUTATION DEMAND CREATIONSALES ENABLEMENT

DIGITAL MASTERSPERFORM BETTER

FASHIONISTAS

Revenue: +6%

Profitability: -11%

Market Value: -12%

DIGITAL MASTERS

Revenue: +9%

Profitability: +26%

Market Value: +12%

Revenue: -4%

Profitability: -11%

Market Value: -7%

BEGINNER

Revenue: -10%

Profitability: +9%

Market Value: +7%

CONSERVATIVE

Dig

ital C

ap

ab

ility

Leadership Capability

Source: MIT/Sloan “How digital leaders outperform their peers in every industry”

+9% Revenue

Creation

+12%Market

Valuation

+26%Profitability

AND OF COURSE ALIGN BACK TO YOUR

BUSINESS GOALS

Cost to Convert/Serve

Business Drivers Business Outcome Top KPIs

Cost per Incident Case Close %

Call / Case deflection

Net Promoter ScoreCustomer Retention

Rate

NPS/CSAT Personalisation

Channel Mix & Attribution

Reach & Engagement

Customer Effort Score

Self Service completion rate

Increase Sales Growth / Cross Sell

Increase Customer Retention

Reduce Cost to Serve

Growth

Cost

WHAT HOW IF

ANALYTICS & INSIGHTS“THE NEW MUSCLE

OF A MARKETING TEAM”

With AI, we have more

power at our fingertips

than entire generations

that came before us.

What will you do with it?

Hindsight Insight

Foresight

Looking back is still as important as looking forward.

you still need ‘interpreters’ to identify the genuine insight

The tools we now have

Data! Data! Data!

I can’t make bricks

without clay!

Sir Arthur

Conan Doyle

MARKETING ANALYTICS I S T H E C R I T I C A L L E N S T H RO U G H W H I C H W E O B S E R V E ,

L E A R N & E V O LV E TO P RO V I D E C L A R I T Y O N O U R M A R K E T I N G AC T I V I T Y

KNOW YOUR CUSTOMERS

Embed a customer 1st

approach to marketing

using data & insight to

support creativity

UNDERSTAND THEIR JOURNEY

Use data & insight to

ensure we are timely &

relevant to our customers,

turning up in the right

channel at the right point

in their purchase journey

DIGITAL ANALYTICS

Identifying & corking

the leaky bucket in

the digital journey

SOCIALANALYTICS

Understanding the

external landscape

& Voice of the Customer

OPTIMISE PERFORMANCE

Build an in depth

understanding of what

good looks like & the

levers we need to pull

to get there

CAMPAIGN MEASUREMENT & OPTIMISATION

Test & Learn framework

Interpretation &

optimisation of digital

destinations

Connected Sales & Marketing

BUT DOING THE RIGHT THING IS IMPORTANT TOO

Brand Sensitivity is unique to each client and is opt in

Brand Ethics the opportunity to actively support broader goals

Brand Safety measures are mandatory for all brands

For example:

• Prioritising accessible sites

• Supporting causes

• Supporting or rejecting political views

• Sensitive News

• Racism

• Homophobia

• Misogyny

• Hate Speech

• Violence

• Terrorism

• Pornography

• Fake news sites

• Clickbait/Bot Farms

For example:

• Avoiding news stories critical of their products

• Avoiding content that they consider “edgy” e.g. Rap/Hip Hop

BRING THATINSIGHT TO LIFE

“THE MILLENNIALS”

INSIGHTAGE 16-24

Millennials expect success; Gen Zers make their own: a pragmatic and

independent bunch with a can-do attitude and an entrepreneurial spirit.

Ambitious yet realistic, they have a strong sense of self-direction,

resourcefulness and ingenuity.

Gen Zers don’t trust brands, they trust people: they prefer realistic to

idealistic and like to be engaged by “real people”: they find user reviews

more influential than expert reviews - authenticity is key. They spend

between 2-4 hours a day on YouTube, their favourite site, including 1h30 of

influencer content - entertainment & tech hold most weight. → 63%

prefer real people to celebrities in advertising

(vs. Millennials 37%) and 69% make purchases

based on influencer recommendations.

As the first true digital natives, Gen Zers could “pinch, zoom

and swipe before they could crawl”. Averaging 10

hours of tech a day, this always-on generation lives on their

smartphones and is highly engaged with and early adopters of technology.

Their digital knowledge exceeds that of older and younger generations and

influences their decisions. → 93% of parents say their children influence

household activities and 61% claim they influence family spending on

consumer activities.

COLLABORATION

Gen Zers use brands to build their own brand. They are going to shop

with brands they feel they can interact with and can contribute to now.

Participation and engaging conversations is

what they value in a long-term brand

relationship. They set out to make things on their own so The FA

has

an opportunity to give them the tools to engage, making them part of the

solution. → 42% would participate in an online

game/series for a campaign and 43% in an

activity review.

INSIGHTCULTURE

Growing up with the answers to any question a few clicks away has enabled Gen Z to be self-reliant. In a world of YouTube tutorials and DIY education,

they challenge conventional wisdom when it comes to self-improvement and self-teaching. → 80% want brands to help them gain new skills and 38% want brands to teach them something.

The journey ‘from start to success’ has shortened dramatically. Technology and social media have made it easier for people to market their skills to a global audience. Forward-thinking Gen Zers are using their digital know-how to great advantage.

Perceptions around the notion of success are now shifting across

generations. Gen Z is planning for their success much earlier in life yet they know that success on their own terms will not come easy. Clear on what success means to them. Success refined.

BUILDING YOUR BRAND

1 by 1 CAN MULTIPLY?

One day he wants

to work for

Microsoft

I HAVE A VERY

HAPPY BOY!

THANK YOU!!

DON’T FORGET

YOUR TEAM

REINVENT

YOURSELF

REINVENT

HOW YOU HIRE!

SO WHAT DOES AMODERN MARKETING

ORGANISATION NEED TO LOOK LIKE?

MODERN MARKETING IS A TEAM SPORT!

PA R T CRE AT IV EPA R T S C I E N T I S T

LEARNING,

DEVELOPMENT

& CULTURE

MAKING SURE

YOU HAVE THE

RIGHT CULTURE

CULTURECAN MAKE OR BREAK YOU

MAKING A DIFFERENCE

WE START WITH A GROWTH MINDSET

At Microsoft, we’re focused on what matters. And what matters is people.

To us technology is a facilitator, an expeditor and enabler. Technology isn’t life, but it is life changing

We are learners, insatiably curious. We learn from each other, finding the genius in what’s been done, eager to improve upon it

We are welcomers, we are open and receptive to the ideas of others. We don’t just value differences,

we invite them in, creating an environment where we will do the best work of our lives

We are one company with one mission. We push, prod and challenge the norm –

and each other – so that united we are able to take on some of the world’s greatest challenges

We are listeners. We design, build, engineer, deliver, revise, refine and perfect

based on how our customers choose, use and love our technology

CUSTOMER OBSESSION ONE MICROSOFTDIVERSE & INCLUSIVE

BRINGING OUR CULTURE TOGETHERGROWTH MINDSET

TIME

Book time out in your diary,

“GMT”

Streamline meeting

attendees

Send less email

Boost Creativity

Leadership Team Support

Early

Collaboration Project

5 KEY THINGSTO TAKE AWAY

IN CLOSING Engage, listen and respond – to your customers and your team

First seek to understand, then build the layers of the experience to show customers you know them

Surprise and delight with the renaissance of the ‘segment of 1’

Plan, test, learn & evolve

Don’t forget your team. Having the right hiring strategy and building a diverse culture is key

THANK YOU

scott.allen@microsoft.com

@ScottAllenUK