making leaders successful every day€¦ · • relationship change 3. • media change ......

Making Leaders Successful Every Day

Break Down The Silos: How To Organize For The Digital Future TRACY STOKES, Principal Analyst July 11, 2013

“To reflect the evolution of brand communications to encompass marketing

across all media platforms”

Digital is changing everything

© 2013 Forrester Research, Inc. Reproduction Prohibited 5

Agenda

›The marketing environment has radically changed

›Marketers are not prepared for digital disruption

›Marketers need an organization reboot


Agenda





Four significant changes

• Customer Change 1. • Relationship Change 2. • Media Change 3. • Brand Change 4.


Source: North American Technographics® Online Benchmark Survey (Part 1), Q2 2012 (US, Canada) US Online adults

1. Customer change: Today’s consumers are perpetually connected

2 in 3 US adults own 2+ internet

connected devices

… they connect on multiple devices

Forrester forecasts 167 million

consumer owned tablets by 2017

56% of US adults own a smartphone

US online adults spend an

average of 20 hours/week

online

Source: North American Technographics® Online Benchmark Survey (Part 1), Q3 2012 (US, Canada) ; Forrester Research Smartphone Adoption Forecast, 2012 To 2017 (US); Forrester Research Tablet And eReader Forecast, 2012 To 2017 (US); Source: Forrester Research Connected Devices Forecast, 2012 To 2017 (US)

38% of US households have a connectable TV

http://www.google.com/imgres?imgurl=http://www.mapds.com.au/newsletters/0807/iphone_home.gif&imgrefurl=http://www.mapds.com.au/newsletters/0807/Newsletter_18_July_2008.htm&usg=__9BQoqRpk7EGBuSYVGp8OxkJcEoQ=&h=495&w=300&sz=41&hl=en&start=1&um=1&itbs=1&tbnid=AaWJZbhjD6s-CM:&tbnh=130&tbnw=79&prev=/images?q=iphone&um=1&hl=en&sa=N&rlz=1R2_____en&tbs=isch:1

… their online and offline worlds are merging

Source: North American Technographics Online Benchmark Survey (Part 1), Q3 2012 (US, Canada)

42%

42%

38%

55%

93%

87%

74%

66%

Watch TV

Listen to the radio

Read Magazines

Read NewspapersOnlineOffline

Base: 57,499 US Online Adults

Media Consumed At Least Weekly

Three-quarters of US online adults consume some sort of media online weekly

They chose where, when and how they want to engage with you


2. Relationship change: from funnel to life cycle

Source: January 2013 “Embed The Customer Life Cycle Across Marketing”


3. Media change: From channel to eco system

Depth

Engagement

Reach


133 billion

1 billion

>39 million 1 billion

New “media” are mass media

517 million

48.7 million

200 million

4. Brand Change: Consumers expect more of brands

© 2012 Forrester Research, Inc. Reproduction Prohibited

Brand Pride Societal Contributions

Special Experiences

Indispensable Value

Consumers’ Higher

Standards

CREDIBILITY LEADERSHIP UNIQUENESS RELEVANCE

REFERRAL PREFERENCE PRICING POWER

Four Pillars Of Brand Equity

Desired Brand Building

Outcomes


From image to experience


Agenda





Most can see it coming, but few are prepared for digital disruption

86%

67%

46%

36%

There is significant opportunity for digitaltools and experiences to change the

industry we serve

People in our company are excited aboutthe changes that digital will bring to our

company

People in our company have the skillsneeded to adapt to the changes that digital

will bring to our company

Our company has policies and businesspractices that will enable us to adapt to the

changes that digital will bring to ourcompany

Percent that agree with each statement (top-2 box) Source: Forrester Research, Digital Disruption Readiness Assessment Preview, Nov 2011


For years, digital has been additive, not integrated into the organization


Digital marketing is disconnected from strategy

Shared Service

Center of Excellence

Distributed

Other Digital Marketing Organizational Structures


Skills don’t match priorities and responsibilities

Responsibilities Priorities Skill level Web analytics Search optimization Web site development Social media Web site development Web site maintenance Email marketing Web analytics Email marketing Search optimization Conversion tracking Web analytics Web site development Email marketing Paid search Web site maintenance Paid search Search optimization Paid search Social media Social media Conversion tracking Web site maintenance Conversion tracking

Miss opportunities to innovate


Agenda




Marketing leaders must ADAPT their organization to keep pace with the perpetually connected consumer


A flexible structure and culture of working with marketing staff, partners, and systems that enables brands to respond quickly to their environment to

align customer and brand goals.

Create a federation not an org model Adaptive Marketing Confederation


The confederation includes three main elements


Constitute marketing operations as a strategic – not just executional - partner


Technology skills are critical to success

0 1 2 3 4 5 6 7 8 9 10

Project management

Product management

Usability

Market research

Customer service

Speak/write

Operations

Collaboration

IT/Infrastructure

Analytics

Please rank the critical skill sets needed for a team like yours to be successful


In fact, digital staff today are more ops than marketing

30

Source: Q1, 2012 Digital Marketing And eBusiness Panel Survey

“Please mark each function that your interactive marketing team is responsible for.” (Multiple responses accepted).


Recognize that technology is essential to marketing strategy

› Dedicate a team to marketing operations › Adopt an agile approach to marketing innovation › Use the team to support multiple marketing roles › Empower engineers to be business innovators


Create a collaborative marketing services provider roster


Focus on your core marketing challenge, not channels

transforming a business

building experiential

brands generating demand

engaging audiences

Adopt new agency orchestration models

Acculturate agency partners into the business


Create a digital culture


Develop digital business leaders


Hire for attitude, not just for tactical experience

• Bring people together to nimbly adapt to change Collaborative

• Develop new concepts and strategies Creative

• Explore what is new and different Curious

• Care passionately about understanding customers

Customer-Centric

Publicize your digital efforts-loudly


Recommendations

› Tackle organization as a process, not an end state

› Lead with a digital mindset to foster innovation

› Prioritize ownership over organization

Questions

Thank you Tracy Stokes +1 617.613.6193 [email protected] Twitter: @tstokes_Forr

making leaders successful every day€¦ · • relationship change 3. • media change ......

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