Social Network and Blockchain. Control in User’s hands.

blockchain

The Blockchain is a technology in continuous evolution, which never ceases to amaze for its endless applications.

What made it known to the general public was the birth and global spread of cryptocurrencies. Unfortunately, due to the lack of confidence in the reliability of this economic system, the Blockchain has not had an easy life in its affirmation process as a technology of the future.

But things are slowly changing.

Not long ago, Carrefour supermarkets implemented a Blockchain structure in its production chain to guarantee the quality of its products. A simple and intelligent way to bring the Blockchain closer to people's daily lives, stimulating their interest and increasing confidence in the system.

Today, another trend is taking shape, aiming to involve people more and more in this technology: the use of the Blockchain within social networks. The distributed database is used both to guarantee the security of users' data and to enable secure in-app virtual payments without banking intermediaries.

The most emblematic case of this trend, which caused a stir in public opinion, was the announcement by Mark Zuckerberg of the creation of a Facebook cryptocurrency, called Libra, to allow users to pay and exchange money.

The announcement immediately created fibrillation between the institutions, banking, and state, concerned about the stability of the international financial system and the protection of user privacy.

The risk of seeing the traditional banking system collapse from the ground up, or the danger of a reduction in tax revenues to which governments could meet, has immediately undermined the "legality" of Libra. Moreover, Facebook and its partners, having the opportunity to learn about users' purchasing behavior for profiling purposes, risk to endanger freedom and individual privacy.

The path to get to the launch of the cryptocurrency, announced for mid-2020, was therefore more difficult than expected, partly because some of the sponsors of the initiative, such as Paypal, Mastercard, and Visa (which had to guarantee the reliability of the project) had left the association, motivating the decision with a lack of certainty about its real application possibilities.

Yet it is not so much the idea of a "cryptoclaimed" social network that is badly viewed, but the size of the operation itself.

In fact, there are already tools that work in the same way.

An excellent example of this is All.me: an application based on the meToken cryptocurrency, launched in 2016 and counting more than 500 thousand users today.

How does a social network with blockchain solution work?

All.me is a single platform that includes some of the most interesting features of the Digital, namely, the creation of social networks, the possibility to earn from its own content, the sale and purchase of peer-to-peer and the exchange of digital currency. All these features are integrated into a single app.

Each component is linked to the others and integrated within the system to make everything safe and reliable. All.me is divided into five modules:

  • Social network (meNetwork) - Platform for sharing information between users.
  • Marketplace (meMarket) - C2C and B2C sales platform.
  • Payment Service (mePay) - The native cryptocurrency-based payment system.
  • Wallet Service (meWallet) - Area for the control of transactions and their balance.
  • Cryptocurrency (meToken) - The native cryptocurrency of the system.

One of the most important features of the platform is the full control of data by customers. They are encouraged to create quality content, receiving in exchange meToken that can be used to buy products on the Market.

The Blockchain for the decentralization of responsibility and ownership of tools, as happens in All.me, is the future of many fields, especially social media.

With these premises, a central organization will no longer be necessary to play the role of a controller who, with the users' data, ends up earning by profiling members.

This transformation offers a huge advantage to the people who decide to participate, as they end up actively contributing to the development of the product and controlling its value.

On social media, where many users feel exploited by organizations, this is a strength that can make a difference today and in the future.

Image by Gordon Johnson from Pixabay

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Neosperience Tourism Cloud, China and digital tourism in Italy

Chinese Tourists

Tourism is a decisive voice for the health of Italian Economy. According to the estimates, expenditure for the year 2019 will be approximately 112.4 billion euros, up between 6% and 13% compared to 2018.

The greatest increase was in the Asian market, especially the Chinese one, with more than 20% attendance and one and a half billion euros spending. 

The creation of the Silk Road (OBOR) and the visit of President Xi Jinping's in Italy have certainly helped the Bel Paese to improve its reputation in the Far East.

What are the average Chinese tourist characteristics?

Tourists from China have some well-defined characteristics. First of all, they are very demanding, both in terms of services and contents. They are high-spending, young (60% between 20 and 45 years), with a male majority (60%), love the cities of art and willingly buy luxury products, especially clothing.

However, what unites every Chinese visitor is the tendency to use digital tools during the booking phase and when purchasing on the Italian territory.

The use of cash in China, in fact, is rapidly decreasing, while the use of mobile payment instruments such as Alipay and WeChat Pay is on the rise. Just to make a comparison, these two instruments have a billion and four hundred thousand monthly active users in total, while Apple Pay, globally, counts 127 million.

It seems clear that, if you want to attract Chinese visitors and stimulate their spending, the implementation of payment methods with these tools must become essential.

As for reservations, the subject is very similar; being strictly mobile people, Chinese users proceed to search for information through online platforms or applications, such as the above-mentioned WeChat.

In the future, a double-digit growth in visitors from China is expected. Today the Italian hospitality facilities must adapt to a market that is profoundly different from the Italian one.

To support this process, Neosperience has decided to develop the Neosperience Tourism Cloud, a platform for customizing and digitizing the tourist experience.

How does the Neosperience Tourism Cloud work?

It is divided in three distinct but complementary components. The first one, specific for customer acquisition, consists of a psychographics traits construction of the audience, through personal data recovery. The goal? To understand their deepest desires and suggest an ideal journey.

How are these data recovered?

Through the other two components: the NeosVoc platform (a tool for the Voice of Customer that uses intelligent, real-time questionnaires to manage, assist and advise tourists throughout their journey), and the Customer Data Platform Unbreakable Community, always enhanced by AI tools, to integrate all the data coming from different softwares and reconstruct the client's history, in order to predict his future behavior.

What does the tourist gain?

A unique and personalized experience designed on his needs and desires. Today, the customer needs to feel "central", and no longer just a guest, but a citizen of the world; from this point of view, it is important to offer real experiences.

And the tour operator?

Greater customer satisfaction automatically leads to better economic results. Online loyalty and word of mouth are the keys to succeed in the digital market. The possibility, thanks to digital tools, to reach market segments that are very distant both in terms of interest and geographic positioning should not be underestimated.

Neosperience for the Chinese market.

To meet the Chinese audience, we decided to welcome Value China in our family: an innovative startup and entrepreneurial reality, which has set itself the goal of facilitating the entry of Italian companies into the Chinese market and vice versa.

At the moment, the focus of its activities is on tourism. An example of what Value China can make with the right tools was the presentation, occurred during the 2nd edition of the International Congress for Cooperation between Chinese Local Governments and Italian Local Governments in the Chinese city of Chengdu, of a new mini-app that allows Chinese tourists in Italy to book and pay taxis via Alipay and WeChat Pay, thanks to the collaboration with the AppTaxy service.

The news was presented by Dr. Carlo Capria, President of the Council of Ministers - Department for the Promotion and Coordination of Economic Policy - and by Dr. Maria Moreni, President of the Italy China Link association.

Today, the growth of tourism in Italy passes through the digital and the Chinese market.

Neosperience has secured, through the Neosperience Tourism Cloud and Value China, a predominant role in the future of this field, to stimulate demand and services offer, beside products that are consistent with the latest technological innovations.

Photo by Amanda Dalbjörn on Unsplash

 

The 4 Cornerstones of a Digital Business Transformation

Business transformation: two words that can mean all or nothing, and yet together they synthesize a trend - and a necessity - that is fundamental for companies.

 

A revolutionized market

In 1859 Charles Darwin published his masterpiece "The Origin of Species". His ideas subsequently expanded to many different fields, including Economy.

In the past, large industrial groups seemed unbeatable because of their economic and material strength. Today, the same assumption is no longer valid. It is not the most powerful subject that gets the best from the market, it is the one that manages to adapt faster.

The Internet has completely changed the paradigms of business: the democratization of ideas and products distribution has stimulated a formidable competition within different fields. Small companies that once managed to reach only local audiences are now able to get to the other side of the world, thus threatening large producers.

What the great realities have experienced directly, in these stormy and dynamic years, is the same lesson that the dinosaurs have learned. Too big to adapt to a new situation, they ended up leaving the planet to small and flexible mammals.

 

The new paradigm of Business Transformation

Adaptation: that is the key concept of a successful Business Transformation. But how can a large company, with the difficulties deriving from its human and production apparatus, follow the continuous renewal of market trends?

In order to answer this question we need to analyze what these trends are. Luckily, they can be summarized in two different but mutually dependent aspects: the focus on the uniqueness of the individual and the digital transformation.

The first concept refers to all the trends that in recent years have focused on improving the customer experience, placing people at the center of corporate interests. Nowadays, the Internet allows the user to exercise enormous power over the market.

The latter concept, on the other hand, is expressed in the renewal of the products and services offer, and in the business and private operations, which today are carried out mainly through digital channels.

These two aspects come together as a single concept: the Digital Customer Experience, also called DCX. It consists of all those activities aimed at giving value to the experience of the single person on every digital channel or touchpoint.

The ideal business, thanks to the new tools made available by technological progress, should implement projects on the DCX, both for the benefit of its customers and to improve the efficiency of its managers, employees and business strategies in general.

Digital media are the facilitators par excellence; avoiding to use them would mean losing the opportunity to facilitate the establishment of an engaging and profitable relationship between all the subjects.

 

The four cornerstones to remember

So, what are the four tips to transform and keep your business relevant, thanks to the Digital Customer Experience?

Simplicity. There is nothing more important. If a company intends to survive and prosper in today's market, the first goal to be achieved is the simplification of its operations, both for the customer and for the company. Waste reduction, better management of the work of employees and facilitation of operations to improve the customer (and employee) experience; the means to achieve these goals is the digital and the tools that this makes available.

Consistency. No lie lives forever. If you are not consistent in your relationship with the public and stakeholders, you can only get two things: lack of trust and confusion. Today, thanks to digital technology, it is possible to manage a strategic transformation to face the different aspects of communication and content in a simple, effective, and above all organic way. If you don’t have the expertise to solve your business problems ask for a transformation consultancy.

Empathy. People are not numbers, they are subjects with individual needs. Today, companies must respect their customers by offering them experiences that improve their lives, especially in the digital environment. At the same time, companies need to sustain an empathic relationship with their employees, so that they do not feel part of a mechanism, but members of a large family that takes care of them.

Fun. There is no such a powerful tool as gaming to make people happy. Offering your audience or your employees a moment of leisure will make the company a friend, not a seller or an employer. Gamification practices, implemented on digital channels, are a powerful tool for gaining involvement and loyalty.

 

The best practices of DCX are therefore able to deeply change the relationships between large companies and individual players. Thanks to personalized and valuable experiences, offered both to the public and the stakeholders, the image and efficiency of the company can improve exponentially, maintaining the advantages of a small company.
You don’t have any more time; start your corporate transformation now!

Customer Satisfaction: “The Bad is the Service of the Great”

customer-satisfaction

While numerous companies claim that they are shifting their business model toward a more customer-centric approach, it is possible to find a few examples of such change.

According to the book Uncommon Service, there are two ways to fit into this kind of ever-changing culture: companies can either improve their service to better satisfy customer needs or convince them they need what they have to offer. The first one, of course, is the only choice that’ll enable you to overcome the challenges of the digital transformation.

As a matter of fact, you need to learn to listen to the voice of your customer to gather enough feedback to act upon. The lack of comprehension between organizations and customers is evident if you look at the numbers: a Teradata report recently highlighted that only 41% of marketing managers are using data gathered by the audiences to implement and improve their strategy.

Common sense is often not enough to determine what your customer needs, data is gathered to benefit your marketing strategy and develop a new customer service model.

What should you do then?

We will start by highlighting a few essential concepts before we move on to the specific steps you need to take to stand out in a customer-centered ecosystem. Frances Frei, Harvard professor and Uncommon Service co-author, analyses the correct attitude of a business to succeed in this specific environment, understanding the financial model of your business is essential, but it cannot be what your company focuses on.

Yes, budgeting and increasing revenues are, but the extreme focus on them could harm the relationship with your customers. Understanding the needs and wants of your clients is a necessity when implementing a specific financial model. What does this mean? Frei introduces the concept of a “bilingual” business, a model where service impacts the economic model of the company and not vice-versa.

With this in mind, how do you revolutionize the structure and business model of your company to put the customer first?

Step 1: Ask Your Employees

Common sense is often overrated when it comes to interpreting customers’ needs. Companies often think the product or service is a fulfilling solution for each segment of the Customer Base, so they don’t think they need to validate that idea. And what is the first step to validate an idea? Ask your first customers, those directly involved with the Brand: employees.

Neglecting employees’ opinions and innovative ideas might lead to an increasing gap between the customer and the company, which then reflects on the customer experience. Your job is to test your people. Create small groups where creativity and equality are encouraged, find out what they think are the most important attributes of the product, what should be improved and how these changes might impact your base.

Step 2: Ask Your Customers

Directly talk to your customer base, ask them what their needs are and what they want from you. Find out why your competitors are being appreciated and where they are lacking. Use those answers to isolate the attributes that are valued the most and, more importantly, use the ones that are valued the least.

Your company can’t focus resources on every aspect, as the dispersion of energies usually leads to mediocrity. The lesson is easy: Have the guts to be bad, don’t be afraid of the weaknesses of your business, be bad in the service of good.

Step 3: Analyze Your Results

With the first two steps you have hopefully gathered tons of information and actionable data. Now it’s the time to strategize, to prioritize and develop a plan where the customer is the center. It is time to take all the data and find solutions. And you will neve be able to do so if you don’t share all the data with your employees and figure out a plan together. Use the Voice of the Customer to set up a brand new idea to implement.

Step 4: Act Upon Data

That’s it. It’s time to reorganize your resources and establish yourself. Apple knew their laptop was the best product on the market in terms of design and operating system, but they were also aware that it lacked memory compared to other options. Yet, it was not a priority for the people that purchased them. Be smart about your strengths and even smarter about your weaknesses.

These four steps give you a general guideline to better connect with your audience, to strengthen the partnership with your consumer by understanding what they want from you and especially what they don’t want. Don’t be afraid of weak performance, use that part that is not performing well and turn it into a powerful marketing lever that could possibly increase visibility and attract attention. Use the data you gather to change, evolve and develop a new model for your business, a model where the customer is the beating heart of every single action.

 

Photo by Lukasz Saczek on Unsplash

Visual Marketing – Everything You Need To Engage Customers

memorability-visuals

Take a look at the advertising and marketing trends of the last four, five years. You can immediately recognize that there is a common trait: visual content. Today, in fact, people prefer visual contents, rather than texts.

As a result, social networks have become primarily visual oriented - i.e. stories and 360 videos - with optical technologies, such as VR and AR, used as marketing tools to create a full, immersive experience for customers.

Why do people prefer visual content? Also, how can companies choose the right image to deliver valuable content and increase customer engagement?

WHY DO PEOPLE PREFER VISUAL CONTENT?

We are meant to process and respond to visual content better than words: it’s in our DNA. In fact, 50% to 80% of our brain is dedicated to visual processing - colors, shapes, visual memory, patterns, spatial awareness, and image recollection. This tendency leads to an innate preference for images, illustrations, videos, and colors.

Also, today’s customers want to receive information quickly and without huge efforts; thus, they are more likely to consume visual content, which is processed 60000 times faster than text. What about the information we retain from experiences? We actually remember 20% of what we read and 80% of what we see.

It doesn’t mean that text is not important anymore. An extensive textual content, in fact, can provide a level of completeness that is incomparable, and sometimes you cannot use a simple image to explain complicated concepts. Combining the two elements, text and images, however, you can reach the best results.

HOW CAN VISUALS IMPROVE MARKETING RESULTS?

With the enormous amount of content and information running each and every day, companies need to do everything they can to differentiate. Using visual elements is much more effective than text only because - as we have just seen - they can capture customers’ attention.

Moreover, the use of relevant and compelling visuals generate more engagement, as it make website visitors stay longer on page, consume more content, and understand the messages you are trying to deliver.

The use of high-quality magnets such as infographics or canvas can also bring a lot of relevant inbound links, boosting your ranking in search results, and increasing brand relevance. It’s been proved that customers make decisions based on what they remember. Thus, leveraging on the most critical driver of customers’ choices - memory - visuals ultimately increase the chances to be recognized.

WHAT TYPE OF VISUAL CONTENT WORKS BEST?

According to iScrabblers, a real photo produces better results than a stock photo (35% more), and employees and customer testimonials generate engagement respectively in terms of viewing time and conversion rate.

Also, colors capture attention, increase recall, comprehension, and brand recognition. Not to mention how they can influence human emotions: certain colors or color combinations generate particular feelings and affect the way people (and customers) make decisions.

To achieve better results, consider putting more efforts on creating original contents and matching colors with the emotions you want to resonate with your message.

HOW CAN YOU FIND THE PERFECT IMAGE?

Marketers often struggle when it comes to producing engaging visual content on a consistent basis. As a result, more and more companies adopt online tools or software to facilitate the process of producing such contents and enhance their performances.

However, this might not be enough: the fact that your image is beautifully crafted doesn’t mean that it is also effective. Every time you grab the audience’s attention but they don’t recall your brand or product, you are losing a chance to convert and monetize.

So, how can you find the perfect image for your blog post, advertising, or product presentation? You can rely on AI tools such as Image Memorability, which can answer this specific need, revealing the memorability score of images or advertisements before they are published, to predict the effectiveness of your visual marketing.

 

Photo by Tony Webster on Unsplash

Create Value, Start by Listening. The Use of Voice of Customer

voice of the customer

Companies are increasingly aware that their value is the result of their customers’ value and the capability to gradually improve their loyalty, profitability and Net Promoter Score.

Despite the rising attention to the “customer obsession” and the growing presence of technologies that allow brands to understand their audience better, it is still hard for companies to achieve effective results, get closer to customers, and intercept their real needs and expectations.

What is often missing is the use of integrated development strategies that allow to listen to consumers throughout the whole product development process, creating a continuous interaction between Brand and consumer. The result would be a deeper understanding of the real market needs and the creation of an authentic relationship with the customer, a proper real partnership.

In addition to the need of containing costs, it is often difficult to manage effectively the results of a multi-channel approach caused by technologies that have disrupted the dialogue between brand and customer.

Unlike the past, the digital revolution has transformed communication habits and changed people’s lifestyles with incomparable speed; it is a change most companies have yet to understand, not to mention how to incorporate it within their strategies.

As a matter of facts, companies face a big contradiction: on one hand, the huge amount of data ‘generated’ by the Digital Age; on the other hand, the inability to keep up with these changes and the need to close the gap and align contact channels with current customer habits.

Brands and consumers have never been as close as they are today, potentially. For this to happen, however, there is an obligated path: companies must restart from the relationship with their customers in order to create value and identify the correct strategies within this liquid and highly unfaithful market.

The question is: How can you build value through partnership with customers? Here is our proposal in four steps.

Step 1. Build Identity: from CRM to Customer Intimacy

While the need to know your customer represents a true leitmotiv among marketers, the knowledge that would make this happen is, in fact, less common. You must go beyond a simple collection of data, and learn how to develop a person-to-person approach aimed at create a more personal relationship with your customer.

Thus, the real target is to reach an effective interaction between people and brands, which would allow you to understand consumers’ needs, anticipate their desires, deeply comprehend their identity, and highlight their emotions and real interests.

Intimacy with customer has to be the first requirement of your strategy!

Technology has significantly simplified how we achieve these goals, thanks to the variety of tools that increase the proximity between companies and customers: messaging platforms, conversational interfaces, apps and listening platforms. There is plenty of possibilities for a real omnichannel Voice of Customer!

Step 2. Tailoring: from Customer Intimacy to personalization

Customer intimacy and data analysis are at the key elements of services, communication and personalized products. Knowing the identity of each customer must become a pillar of your business, so that you’ll be capable to retain consumers and acquire new ones.

Marketers need to go far beyond the concept of service provision; the customer must be put in the conditions of creating a true identification with the product and the Brand. Today, artificial intelligence and machine learning make it possible to deploy solutions which efficiently customize not only products and services, but also communication.

It’s a matter of shaping the message, regulating its extent, tone of voice, and choice of words to fit each client’s profile and to increase its effectiveness as a consequence.

Step 3. Build engagement: from personalization to partnership

The realization of personalized solutions goes through a dynamic process of engagement with those considered potential beneficiaries, the customers. Thus, a marketing strategy that aspires to customer satisfaction has to include among its objectives the creation of customer engagement solutions.

How? Opening privileged channels with the customers in order to actively include them in the continuous improvement process (listening before talking). It is essential for your listening strategy to identify innovative and engaging tools that can guarantee bidirectionality, participation and commonality: for instance, co-creation activities, contests or crowdsourcing technology platforms.

Step 4. Build satisfaction: monitoring performances to create continuous value

The collection of the voice of customer is crucial for performance verification activities that represent an indispensable part of the continuous process of improvement. A customer satisfaction assessment helps brands keeping customers satisfied, with critical benefits to the profitability and the possibility of expansion.

Although most companies have used satisfaction assessment tools, there is often a mismatch between the moment of the brand experience and the moment they ask for a feedback. Today more than ever, it is extremely necessary to adopt channels and strategies capable of gathering the voice of customers while the experience is happening.

In addition to a greater reliability, the collection of contextual data will allow to differentiate strategies on the basis of the different profiles that characterize the consumers of each store or point of interest.

Effective tools that can be used to gather timely information are geolocation systems, inclusion of VOC paths within Brands’ Apps and notification requests related to the passage of potential customers and prospects.

The brand experience starts from the expectations that customers have created, which in turn depend on how much they are satisfied. At this date, every successful company knows that the creation of value begins by valuing their customers. You must listen, and the best way to do so is by taking up on every opportunity technology has to offer.

 

Photo by Jason Rosewell on Unsplash

 

Three Insights From The State of Digital Transformation 2018 – 2019

state of digital transformation

A few weeks ago Altimeter has released its annual report “The State of Digital Transformation”, investigating the evolution of digital innovation in the enterprise ecosystem. Technologies reinvent and reshape markets and business behaviors, and it is crucial to monitor the key trends and insights that can guide you across the modern digital transformation.

This year, the results show an overall maturation: companies are modernizing and working together through this essential and unavoidable transformation. Even more, companies seem to comprehend the importance of expanding and reorganizing their business in a way that responds and corresponds to customers’ expectations and market competitiveness.

However, they still have to cope with a few resistances and missteps, as you could expect. Incorporating such a significant transformation into the organizational culture and people mindset requires efforts that are not-trivial, in terms of investments and guidance.

Looking at the report, we have gained three crucial insights, that describe the state of digital transformation in business.

The Customer Experience is still high-priority

This is the era of customer-centricity, a time when people’s preferences and concerns are much more critical than any other assumption. It is a time of tweets and social sharing, of personalization and co-creation. A time of humans and emotions. Ultimately, a time when empathy and technology must work together.

Over the last few years, customer experience has become the top priority for companies. Fixing and regulating it to meet customer’s needs and expectations is a long-term work that requires a combination of efforts and investments.

In 2018, companies continued to focus on customers, connecting all the touchpoints and empowering an infrastructure tailored to their preferences: 57% of companies report it as their top priority in the long-term roadmap (the next five to ten years) and 54% in the short-term (the next three years). This confirms that the customer perspective will still be a key element when deciding where and when to allocate budgets.

How does this willingness translate into action? Most companies are doing so by investigating customer journeys (59%). This adds to the perception of an increasing level of maturity among businesses, that seem to leverage on the customer understanding when designing the digital transformation roadmap. Only a small part of organizations (7%) hasn’t even studied the new customer journey, revealing a significant gap between mature businesses and the green ones.

Meanwhile, companies are also prioritizing - 49% in the long term and 45% in the short term - the empowerment of an efficient IT infrastructure, to go with and support the CX innovation. This confirms the idea that the customer experience is an omnichannel, general concept, that can’t be detached from the presence of an agile and flexible architecture of technologies, to deliver the exact offering and innovate more efficiently.

Increasing budgets and decreasing controls

When it comes to disruptive technologies, the budget is essential. There can’t be any transformation without investments, and the budgets must evolve in line with the technology upgrades and cross-functional initiatives required.

This year, the percentage of companies that report larger investments has incremented significantly: budgets between $15 and $30 millions boosted 210%, and budgets more or equal to $50 millions presented a dramatic raise of 640%. Even though the latter includes only a few companies (11%), it is a clue of an enterprise-wide movement.

Yet, there is a big concern about whether or not these budgets are relevant to gain an effective transformation. A significant percentage of companies seems to be using the budget without the guidance of a specific roadmap or a clear understanding of customers’ real needs and behavior.

The hardest challenge is the lack of data or a measurable ROI to understand the impact of the digital innovation. If change agents can’t easily show the real value of digital transformation and justify the investments with visible data and results, consequently they struggle to get the material resources they need to thrive.

The perception of digital transformation is, in fact, mostly as a cost center, rather than an investment in growth and performances. This is an example of the difficulties that digital transformers have to handle every day, an expression of the resistance to change that still survives.

Promoting a culture of innovation

One of the most encouraging data is that almost half of the companies have invested in building a culture of innovation, as mandated from the executive level (mostly through an in-house innovation team/lab with dedicated enterprise resources).

On the other side, 48% of companies reported that creating a culture of empowerment and innovation is one of their top priority in digitally transforming the employee experience. Since the digital transformation is an enterprise-wide change, it is essential that this mindset is shared and promoted across all the organization.

It is also promising that this effort is advocated by executives who possess a broad organizational purview. For the second year in a row, CTO/CIOs are reported as formal owners or sponsors of transformation initiatives, followed by CEOs and boards.

These few insights are just a small part of the relevant data and aspects that can be found in “The State of Digital Transformation” by Altimeter.

 

Photo by Joshua Sortino on Unsplash

 

Discover how you can innovate your business strategy to deliver personalized experiences and turn prospects into loyal customers. Download the free report Digital Innovation in Retail & Fashion.

Is Customer Personality the Future of 1-to-1 Marketing?

The new marketing is people-centric, and today companies need to gain a deeper understanding of ‘who’ their customers are, as people, not simply consumers.

However, even when they get to know their customers, companies still rely primarily upon what we can call "hard" data: socio-demographic, economic, and geographic data - sometimes they add behavioral data, such as past purchases and content views.

With a metaphor, we can say that if companies were humans, they would be people who use only the “left side” of their brain, the rational part. But what makes humans so able to understand and communicate with other people is the completion of that rational part with the emotional one: the “right side” of the brain.

Now, if we imagine what this right side of the brain is made of in the digital world, we can say that it is made of "soft" data: the desires, motivations, emotions, and personality of customers.

These human-like data have become essential today. To understand why, let’s see an example from a well-known marketing strategy that relies on a psychological principle: social proof, a technique that leverages our tendency to follow the majority, to look at other people’s actions and behave consistently with them.

In marketing, we want people to imitate desired behaviors, those that will lead to a sale or a conversion. So, we use the social proof principle every time we inform potential shoppers of what other customers do (for example, what they have bought) to convince them to do the same.

We often find this principle applied in the e-commerce world. Think of Amazon and its suggestions tool. Amazon makes extensive use of social proof: "people like you also bought this item"; "frequently bought together"; "customers who bought this item also bought" and so on.

Knowing what other people buy can be important to help us - as customers - to make good purchase decisions. But if you're a marketer, you should ask: is it really so important to all of us? Do we decide and behave in the same way?

An example. Think about a person like Hester.

1-to-1 marketing

Hester is a girl that wants to feel unique - in psychology, they say she has a personality trait called "need for uniqueness". She is creative, original, and a bit eccentric. She wants to feel special with everything she buys and wears; when shopping, she looks for different styles and innovative outfits. If Hester buys a dress and then sees it worn by someone else, on the street or at a party, she gets annoyed.

Now, think about the Amazon-like message "people like you also bought". Do you think that a person like Hester would feel engaged? Or is it more likely that she would get annoyed by the expression "people like you"?

That is the point. Today, 1-to-1 marketing is growing faster and faster. Market leaders such as Amazon, Youtube, Netflix, Spotify are dominating thanks to their ability to accumulate lots of customer data and use them intelligently.

At the same time, we have psychological principles - such as social proof, and many others - that are widely used in marketing but still applied in the same way to all customers.

In this scenario, what about individual differences?

We’re not talking about age, gender, geography, or past purchases. We’re talking about those characteristics that we, as human beings, can see in others and take into account when we interact with them. We’re talking about psychology and personality.

We have seen Hester, with a high need for uniqueness. Now let’s see Emma.

personalized-marketing

Emma wants to “fit in” the group - she has a personality trait called "need to belong". She likes to follow trends and, when shopping, wants to feel fashion. She is the typical girl who, when deciding the outfit, needs to see it already worn by friends and influencers on social media.

Maybe, compared to Hester, she would be much more interested in what other people (“people like her”) bought, much more attracted by messages that leverage social proof.

That’s why customer personality matters.

A good salesman who knows his customer's personality has a huge advantage: he not only knows what to suggest to his customer but even how to paint it. A good seller in the store would certainly communicate differently with Hester and Emma. So, why communication online should be the same for them?

Imagine the experience that Hester and Emma could live on the e-commerce site of a fashion brand when looking for a new dress and some accessories to match.

To be more empathic, that brand could highlight for Hester the most niche and exclusive clothes, that she could be the first to discover, with more powerful storytelling for her, such as: "Discover how to create your unique and innovative outfit for the summer".
With Emma, instead, it would be better to suggest the most popular and fashionable clothes, preferred by the community of other customers, with a more effective message for her, such as: "Discover how to create the most trendy outfit for the summer”.

What is obvious for a good seller still seems impossible for e-commerce. Tailoring the message to reflect a person's attitudes, motivations and personality is a natural process in "offline" marketing, and technology is rapidly evolving to bridge this gap, enabling companies to be more “empathic” with their customers.

There are lots of things that technology can do better than humans, especially those that follow the same general workflow: gather data, analyze data, determine a course of action, implement the course of action. Communication, however, doesn't fall into that standardized process for its intrinsic nature of being more powerful if differentiated, flexible, and tailored to the specific characteristics of the receiver.

That's why skills like persuasion, social understanding, and empathy are going to become our "competitive advantage" as artificial intelligence takes over other standardized tasks. But this also means that technology will always go further in the direction of learning, or trying to learn, the way humans communicate. Digital communication today is more efficient, of course, for the number of people it can reach simultaneously, but human communication is still more effective. Whether or not it will always be, that is an open issue, which is up to each of us to answer!

 

Photos by Tyler LastovichMarco Xu and A L L E F . V I N I C I U S Δ  on Unsplash

 

Discover how you can innovate your business strategy to deliver personalized experiences and turn prospects into loyal customers. Download the free report Digital Innovation in Retail & Fashion.

How the DCX Can Improve Customer Lifetime Value

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Today, customer retention is gaining attention in business. The importance of customer satisfaction, loyalty, and repurchasing behavior is becoming central. The focus has shifted from customer acquisition to customer retention marketing, due to the recognition of its primary relevance.

It is a matter of fact that acquiring new customers is important, but not at the expenses of the ones that already exist. There are plenty of statistics about the massive impact that customer retention can have on business value. Nurturing the relationship with customers, in order to gain their loyalty and advocacy, and watch them coming back over and over, is the main purpose every Brand should pursue.

Therefore, even among those silos that are focused on numbers and sales, the concern shifted to the value of retention. Despite the fact that acquisitions have always held more weight, and metrics were chosen to examine the revenue of new purchases, today there is a better way to measure business success: customer lifetime value.

 

WHAT IS CLV AND WHY IS SO IMPORTANT

In order to get a better understanding of the value of customers, rather than using metrics such as Return On Investment (ROI), companies should choose Customer Lifetime Value (CLV).
ROI measures the gain and loss generated on an investment, within a specific period of time; otherwise, CLV measures the revenue brought by one customer throughout the course of all the interactions with the company.

The main fault of ROI is that it gives a short-sighted business perspective: the concept of “return” requires to set the time by which you want to measure the net profit of your investment. On the contrary, CLV measures the entire value of a lifetime relationship between brand and customer, shifting to a long-term perspective.

Furthermore, Return On Investment considers only the amount of profit gained, regardless of the meaning of specific, different interactions. Repurchasing behavior, positive word of mouth or any action of searching, posting or talking about brands value as much as the return of selling products, or even more.

Switching from an acquisition- to a retention-oriented business strategy requires a different mindset: rather than giving value to consumers based on the amount of their first transaction, brands should measure the cumulative profit provided by customers during the entire duration of their relationship with the company.

 

HOW CX CAN IMPROVE CLV

How can companies accomplish the purpose of cultivating long-lasting relationships, in order to increase Customer Lifetime Value? Focusing on customer experience.
First of all, companies should consider the overall journey of customers. Looking at the bigger picture they can identify the weaknesses and work across functional areas to replace the causes of dissatisfaction and discomfort.

Moreover, concentrating on the relationship, rather than on single interactions, they can cultivate emotional bonds, based on trust, dependability, and reliability. That is the basic requirement of relationship marketing: providing relevant experiences that delight, satisfy, and engage every person, connecting/resonating with their inner meanings.

The first step to the extent of building a strong reputation of the company is to work on the customer touchpoints. The growing area of conversational support, provided by chatbots and messaging tools is opening to new patterns. Due to advances in Artificial Intelligence, machine learning and natural language technologies, Brands can engage customers with personalized and helpful communication.

This kind of “conversational commerce” is growing up quickly, as long as it provides a continuum thread between companies and people, offering the chance to add value to every part of the customer journey. People can search for information, receive support, get personalized recommendations, chat with the company representative, read reviews and click to purchase, without even leaving the messaging app.

Among all the benefits provided by AI, personalization is the feature that best helps companies improve the customer experience. AI technologies let brands easier target specific market segments and provide personalization at scale, using the data gathered by behavior-based algorithms and predictive analytics.

Delivering the best customer experience throughout all the touchpoints allows customers to achieve the highest levels of satisfaction and loyalty - the starting point to create a solid bond between brands and people.

Just as much as customers have started to choose value over price, companies should consider enhancing the worth of the relationships they establish with people: Customer Lifetime Value can be helpful to gain a deeper understanding of this parameter.

Photo by TNK PHOTO on Unsplash

Three Emerging Aspects From the Brand Relevance Index 2018

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Think about the brands that make a difference in your everyday life. The ones that make your life easier, better. Offering you exactly what you need, at the exact moment that you need it.

These brands have the power to influence your decisions, inspiring you day by day. These are the companies that Prophet calls “relentlessly relevant”.

In this article we give an overview about U.S. market, with the purpose to find some relevant aspects that can help marketers understand what people value the most. This perspective gives brands a different approach in order to unlock growth.

THE BRAND RELEVANCE INDEX

The Brand Relevance Index was launched four years ago and is performed country by country, with the aim to distinguish the differences that exist within people and markets from various part of the world.

The crucial point of this ranking is that it is made by surveying more than 40.000 people to list hundreds of brands on many aspects and attributes. According to Scott Davis, “customers are the real only experts” and the choice to start from their perspective to investigate the brand relevance is determinant.

The BRI is based on 4 principles:

  • The inclination to think, make investments and create with a customer-oriented vision;
  • The capacity to meet customers needs, offering products where and when they require them;
  • The ability to provide emotional experiences and ideas that inspire customers day by day;
  • The inclination to continuously reinventing themselves, finding new and creative ways to anticipate unexpressed needs and desires.

The results are mostly congruent to the expectations: tech giants are still dominating the top of the list and, besides few big movers and some surprising entrances, the most famous brands are meeting the expectations.

While a third of the top 21 brands is owned by three companies - Google, Disney, and Sony - none of them stands in the top 5. Instead, Apple is still the most relevant brand, for the fourth year in a row, while KitchenAid and Nike moved into the top 10, replacing Disney and Pixar.

Prophet presents four key findings, common to all top brands: all the companies on the top of the list are constantly reinventing themselves, in order to build a specific, strong community around them. Furthermore, they still are focused on customers and their needs and desires, while trying to inspire them and chasing a higher purpose.

GIANTS AND NEWCOMERS

Tech giants are on the top of the list: 8 of the top 10 are inherently digital and experiential, most born in the last 20 years. How can traditional, brick and mortar companies keep up with the wave of newcomers?

Looking at KitchenAid, a company started in 1919 that has just moved into the top ten, it shows the way to winning customers’ mind and heart: reinventing and renewing is the key to stick out of the ordinary and to emerge from the obsolescence.

Top brands have the commitment to stand ahead customers’ needs and to surprise them, continually reshaping experiences and expectations, in order to offer ever-greater involvement.It’s not just a prerogative of the newcomers.

Older brands, such as Dyson, Chevrolet or Ford, have recently broken into the top 50, confirming that there still is a room for historical brands, if they can keep the pace, transforming themselves while remaining true to their roots and consistent with the brand heritage.

Furthermore, the youngest customer base has a preference for these companies too. While these customers have always been known for being social media obsessed, this stereotype is no longer true - it has never been, probably. In fact, besides all the posting, tweeting and snapping, social media brands aren’t the most relevant to their lives.

On the top of their list there is Netflix, confirmed as the best entertaining media. Due to its ability to offer suggestions tailored to individual preferences, and to increase the content base with new, peculiar projects, it keeps reaching the highest “make me happy” score. Definitely one of the best recently born brands.

SOCIAL MEDIA PLATFORMS

It’s evident that among millennials, all the social media platforms are losing ground; especially Facebook, the biggest mover of the year (-102 positions). However, this drop is seen in every age and gender demographic as well, confirming that this decline is not ascribed to the youngest base.

The decreased usage of Facebook is imputable to the lack of trust and interest. The “fake news” attribution, and the numerous big data breaches have brought down the brand reputation, making people doubt about its value.

Partly, this drop may represent a natural shifting to other parts of the social ecosystem, as people are always looking for the best place to express themselves. Instagram is still running the photo-framed social interactions, WhatsApp is the most used messaging system, and YouTube is the natural place for video sharing.

Nevertheless, all these social media platforms don’t seem to be considered as “relevant” to people: no one of them is ranking on the top 50, except for Pinterest.

INSPIRATIONAL BRANDS

Among social media, only Pinterest is winning customers attention, ranking third in the overall list, and first among “makes me feel inspired”.

Delivering great experiences and promoting relevant ideas, is one of the most important aspects of relevance, that results in the opportunity for brands to create a deeper connection with their customers. People want brands to express a unique model of thought, that is consistent with the brand image, and which customers can relate to or get inspiration from.

Likewise, Android is perceived as “The People’s Platform”, making its openness and ease to use a major of the brand characteristics. Its usage is worldwide - actually 86% of mobile devices - and people have the perception that it is accessible and futuristic, and gives them the power to contribute to its development.

Both these aspects - letting people get inspiration from each other and from the brand, along with showing a purpose to chase - result in the opportunity to build a strong community that shares a common view and meets common values.

The few takeaways presented in this article are just a small part of the relevant aspects that can be observed looking at the report by Prophet. The starting point to study the relationship between brands and customers, that it is the most important element when shaping brand personality in order to become relevant, meaningful and essential to customers’ lives.

Photo by Nik Shuliahin on Unsplash

Download our brand new report, Digital Innovation in Retail & Fashion, and discover why you must know and understand your customers before even thinking about selling, and how you can use personalization to deliver relevant experiences that drive loyalty and increase value.

Schermata 2018-09-17 alle 15.40.21