Driving New Technology with a Culture of Innovation
As new technologies present marketers with both opportunities and challenges, it’s more important now than ever to make smart decisions regarding where to invest in both people and process. While Virtual Reality, Augmented Reality and the Internet of Things command the headlines, a recent Forbes article cautioned “While it’s smart to monitor new technologies, companies are better served by waiting and carefully choosing their battles.” This reality is evident when you consider how many companies wasted their time on Google Glass or Google Plus but have yet to maximize their SEO and paid search strategies. Sam Decker, Co-Founder & Executive Chairman of Clearhead, cautiously pointed out that in less than five years marketing technology solution providers have grown from approximately 400 to 4,000 companies.
At DMA’s Marketing Analytics Conference in Austin, TX this week, I discussed the strategic, technological and staffing challenges that face organizations who are embracing digital transformation and the change management required to become more data centric. When I asked the panel about new tech deployments and how to balance FOMO with smart new tech investments, Elissa Tomasetti, CEO of Blue Skies Direct, advised us to establish a culture of testing. Read and react and determine what your long term bet is.
Good advice. A process that we at DMA have recently employed is the use of RFID and Beacon technology. When the panel weighed in on their new technology initiatives, and in particular those that allow for more localized connectivity with your customer, Bill Tolany – GM/Regional Leader, Amazon Prime Now, made a distinction from one brand to the next and the need to live up to your brand expectations. With Bill’s personal perspective from Amazon and Whole Foods, he has been more aggressive since his brand is viewed “more progressive and forward-thinking” and feels a need to highlight technology and “products you can’t find somewhere else.” In fact Bill is passionate about “the brand essence applied to technology.”
New Metrics for the Customer Behavior You Seek
In Mary Meeker’s latest Internet trends report, she calls out the best Ad Platforms as those with strong data collection and measurement tools. In the same report she highlights that the biggest challenge of social media is the inability to measure ROI. These observations force me to contemplate whether we need to re-think how we measure marketing effectiveness and whether we need new metrics for new tactics?
As another #MAC2017 attendee pointed out; “there is a significant need to redefine the “R” in ROI.” In Bill’s opinion “old metrics were limited to driving traffic to website,” but in fact now we need to address an omnichannel approach and solve for how certain metrics are “not connected to how it was driving activity in the stores.” In Bill’s POV and mine it’s clear that “metrics and customer behavior need to change.” And, in order to manage cross-functional teams and establish corporate level buy-in, you will “gain more faith in programs as you get closer to P&L,” says Sam. “You have to have new metrics in order to measure where the eyeballs are going.”
It’s Complicated…
Throughout the #MAC2017 event presenters and attendees alike, lamented the challenge of proper attribution and the increasing difficulty in properly identifying customers in order to deliver the appropriate messaging. DMA’s Response Rate Report and Statistical Fact Book call-out the increase in device usage (up to 5 each day per person) and the increase in channels used by marketers as compounding the difficulty in tracking “identity” and ROI. Elissa referenced the “magic of seven” touchpoints that a customer typically travels through in route to a purchase. There is a need to track and understand those touchpoints and create universal log-ins to ensure the best possible capture of customer identity. As shown in Elisssa’s example of a purchase decision on some products taking months to culminate, it is essential to capture the touchpoints, devices and channels over the course of that customer journey.
The challenges around the ability to deliver relevant messages to the right person in the right context and on the right channel is directly correlated to the data centricity of a company. DMA / IAB research shows that the ability to elevate a company’s data-centricity is hampered by silos. These silos show up in both cultural and technological ways. As Bill articulated the decision making that went into some of his early app design experience, he noted that if your goal is speed then you often have to be prepared to accept silos. In fact, in order to test new technology creating a silo is the most expedient and cost effective way to test. It’s then incumbent upon the culture to absorb those silos as the technology is accepted and becomes part of the mainstream marketing process.
Rally the Team
In the same DMA/IAB Data-Centric Org study – it was found that leaders felt a lack of expertise and skills prevented them from becoming more analytical and data centric. The panel and the MAC attendees discussed the scarcity in finding the right talent from outside the organization and the limitations on upskilling within the organization. While the staffing issues are real, it is agreed that clear communication and goal setting is a must to facilitate successful launches of new projects and technology that requires coordination across departments.
In fact, failure to execute on these points is called out as a major impediment highlighted by a Harvard Business Review Study that quantifies 75% of cross-functional teams as dysfunctional. These teams “fail on at least three of five criteria: 1.) meeting a planned budget; 2.) staying on schedule; 3.) adhering to specifications; 4.) meeting customer expectations; and/or 5.) maintaining alignment with the company’s corporate goals.”
Much of the failures are more often associated with a deficiency in “soft skills” as opposed to high tech skill sets. Kathryn Minshew Co-Founder of The Muse and Kim Whittler Proffesor at Darden both stress the continued importance of soft skills, like leadership, critical thinking, and emotional intelligence. “Even if robots take over aspects of our work (hey, it could happen), we still need people to lead and solve complex problems,” says Minshew. And Professor Whitler highlighted that while 15% of career success is driven by “hard” technical skills, 85% of your success will be the result of “soft” skills and the ability to work and communicate well with other people.
To learn more about how your organization can address critical issues like Attribution and Identity, visit DMA’s Structured Innovation Program.
What thoughts do you have on these topics? Tweet at @DMA_USA and @NeilOKeefe and we will retweet the best comments!
Neil O'Keefe 
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