First-party data strategies: an introduction for marketers

 

As a marketer, you know that data is an essential component of any successful marketing campaign. By collecting and analyzing data, you can gain insights into your customers’ preferences, behaviors, and demographics, which can help you tailor your marketing efforts to better meet their needs and interests.

However, with the increasing focus on data privacy and security, it’s becoming more important than ever for marketers to think carefully about how they collect, use, and protect customer data. One way to do this is by creating a first-party data strategy for your customer data.

What is first-party data?

First-party data is data that is collected directly from your customers through interactions with your business. This could include information collected through your website, mobile app, email campaigns, or in-store purchases. It can also include data that your customers voluntarily provide to you, such as through surveys or sign-ups for newsletters or loyalty programs.

Why is first-party data important?

There are several reasons why first-party data is important for marketers:

It’s more accurate: First-party data is collected directly from your customers, so it’s more likely to be accurate and up-to-date. This is especially important when it comes to tracking customer behaviors and preferences, as this information can help you create more targeted and relevant marketing campaigns.

It’s more trustworthy: Customers are more likely to trust data that has been collected directly by your business, as opposed to third-party data that has been collected by an external source. This can help build trust and loyalty with your customers, which is essential for long-term business success.

It’s more controlled: With first-party data, you have full control over how it is collected and used. This means you can ensure that your data collection practices are transparent, secure, and compliant with data privacy laws.

It’s more valuable: First-party data is unique to your business, which makes it highly valuable. It can help you understand your customers in a way that third-party data simply can’t, and can be used to create personalized marketing campaigns that are more likely to be successful.

How to create a first-party data strategy

If you want to make the most of your first-party data, it’s important to have a clear strategy in place for collecting, managing, and using it. Here are some steps you can take to create a first-party data strategy:

Identify your data needs: Start by thinking about what types of data you need to support your marketing efforts. This could include demographic information, purchasing history, website behavior, and more.

Determine how you will collect data: There are many ways to collect first-party data, including through your website, mobile app, email campaigns, and in-store interactions. Choose the methods that make the most sense for your business and will be the most effective at gathering the data you need.

Implement data management practices: Make sure you have processes in place to manage your data effectively. This could include storing data securely, regularly updating and cleaning it, and protecting it from unauthorized access.

Define how you will use the data: Determine how you will use the data you collect to support your marketing efforts. This could include creating targeted email campaigns, personalizing website content, and more.

Communicate with customers: It’s important to be transparent about how you collect and use customer data. Make sure you have a clear privacy policy in place and communicate with customers about how you use their data.

In conclusion, creating a first-party data strategy is essential for marketers who want to effectively collect, manage, and use customer data to support their marketing efforts. By focusing on first-party data, you can ensure that the data you collect is accurate, trustworthy, controlled, and valuable, and you can build trust and loyalty with your customers. By following the steps outlined above, you can create a strong first-party data strategy that will help you make the most of your customer data and drive success for your business.

 

The Agile Brand Blog – Greg Kihlström Customer Experience & Digital Transformation  

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MarTech: The ROI of personalized experiences: Process measurements

 

This article was written by Greg Kihlström for MarTech. You can read the full article here.

Looking at the methods used to personalize, how efficiently they are performed and how they are improved over time is part of measuring ROI.

This is the third of a three-part series on the ROI of personalization. You can read the first part (audience measurements) here and the second part (content measurements) here.  

After examining how audiences and content are measured in terms of personalized experiences, let’s discuss how brands should approach the process that drives personalization. 

Process measurements require looking at the methods used to personalize, how efficiently they are performed and how they are improved over time.

In this article, we will:

Cover three aspects of operationalizing personalization.

Do a reality check for those brands that want to go all in on 1:1 omnichannel experiences.

Explore the viability of doing this and the cost of not doing it.

This article was written by Greg Kihlström for MarTech. You can read the full article here.

 

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MarTech: The ROI of personalized experiences: Content measurements

 

Track the ROI of personalized content by looking at individual and incremental performance and using a multi-touch attribution model.

The following was written by Greg Kihlström for MarTech. Read the full article here.

While doing personalization well poses challenges to even the most sophisticated brands, offering personalized customer experiences is increasingly becoming a distinguishing factor in high-performing companies. 

Companies excelling at personalization can generate up to 40% more revenue than those deemed average at it, according to McKinsey.

In the first article in this series, we looked at measuring the performance of personalized experience by how customers reacted, whether individually or within audience segments. 

The next way to measure the ROI on personalized experience is by looking at the performance of content and its contribution as part of a specific experience and across the entire buyer’s journey.

Read the full article here.

 

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The Customer Experience Paradox: A Prediction for 2023

 

For a while now, the marketing and advertising world has been grapping with two very important, yet opposing ideas.

The first set of ideas is the need for more personalized customer experiences that drive greater loyalty and purchase behavior, and which requires a greater amount of first-party data to be owned and understood by the brand. Those following the research are already aware that consumers are more likely to shop and purchase from brands that tailor their experience with content, offers and other details. Of course, this also means that in order for a brand to personalize and experience on a one-to-one basis, they need to know a lot about that customer. This means they need to collect relevant information about that individual.

The second set of ideas is the need for greater consumer privacy protections and governance over that data. With increasing regulations in Europe (GDPR), the state of Califorina (CCPA), and now even in Virginia (VCDPA) these regulations are restricting more and more how brands use first-party (directly owned by the brand) and third-party (owned by other entities and used for tracking and targeting of advertising and other marketing) data. Additionally, the industry has started to regulate itself, with Apple, Microsoft, and a handful of others taking the lead on protections on third party cookies and mobile device ID tracking. Once Google fully deprecates third-party cookies, the world of advertising will be forever changed.

In 2023, we are going to see the clash of these two extremely important areas for brands and marketers. One one hand, they seem at odds with each other. How can a brand actively try to collect more data about an individual in order to personalize their experience, while also minimizing the amount of risk of falling out of compliance with consumer data privacy regulations?

The other way of looking at this is that a lot of the methods that marketers and advertisers have been using to get data about their customers is, at best, flawed, and at worst, unethical. Third party data sources vary widely in their accuracy, as well as in how ethical their methods of data collection are. This can often mean that brands investing in collecting first-party data, or working with ethical data “clean rooms” where first-party data is shared among trusted parties, can provide better information, thus better experiences. All while remaining within compliance.

In 2023, we’ll see leaders in the space pull ahead at a faster pace by reconciling these two areas, while laggards may fall even further behind, delivering less than optimal customer experiences and with a need to play an even greater game of catch up in the months and years ahead. It will be exciting to see who stays at the forefront during these changing times!

 

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Exploring the Future of Podcasting with Josh Nielsen, Founder & CEO of Zencastr

 

The following was transcribed from a recent interview on The Agile Brand with Greg Kihlström podcast. 

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Today we’re going to talk about the future of podcasting with someone who has been at the center of this movement since he founded his company in 2015. To help me discuss this topic, I’d like to welcome Josh Nielsen, Founder & CEO at Zencastr.

[Greg Kihlstrom] Let’s dive in here and start with a little background on podcasting itself. So, you know, while it’s extremely popular now, there were technically podcasts back in the early 2000s, though they weren’t nearly as popular, with such a broad demographic. What do you think brought about such a rise in popularity over the last several years?

Well, I can tell you what happened because I watched it happen. When I started building Zencastr, there was nowhere near as much excitement in the space as there is now. It was sort of a sleepy industry. And I’ve really got to say I didn’t even know it was going to be as big as it became. But, you know, I got lucky, I suppose. But really what happened, to answer your question, is – I’m trying to remember, this was as I was building the initial versions of Zencastr that started to blow up, and really the wave kind of built. And it was because you had podcasts like “Serial” and “This American Life,” I think, were the two sort of breakouts that happened in, I don’t know, 2016-ish, where they suddenly were getting millions of – I think it was “Serial” hit a milestone where they got a million downloads per episode. And they were hitting that regularly. And then everybody’s head started to turn, like “Whoa, that’s a lot of eyes; that’s a lot of brand impressions,” from an advertiser perspective. 

And so people realized, “Hey, there’s gold in those hills,” if there’s going to be that many people interested, as you mentioned, you know, in the United States alone 60-plus percent are listening monthly, if not more. And it’s just continued to grow. And I think I just saw the brand spend projections. It was projected to be the market size tripling by 2023 to 3-point-something-billion. Now the new projection is by 2026 it’s going to be 6-point-something-billion, another doubling. So it’s hitting an exponential growth curve. And it’s really just because so many people are interested in podcast content. It fits into their day in a way that many other mediums can’t and don’t. You can listen to it while you do your laundry, while you’re exercising, while you’re driving. And that’s a lot of time that people are spending and listening to content, and a lot of opportunity for creators and brands to get in front of people.

So I’m very familiar with Zencastr because I’ve been using it since I started this show in 2018. But maybe for those a little less familiar, can you give a little background on what exactly the platform is and does, and how do you differentiate it?

Great question to provide some context there. Back in those days, and the way I got keyed onto this market was I was actually working on a totally different company in the audio space. It was around music and helping electronic musicians collaborate together online. It didn’t work out, for many reasons. But someone said, you know, “Hey, podcasters have this problem getting high-quality assets back and forth. Maybe you can help there.” I honestly sat on that for a few years because I was focused on something else, but it always stuck in the back of my head. And I started looking into that problem, and I realized that podcasters at that time were using mostly Skype to do remote recordings, and most podcasters had either a remote co-host or a remote guest on most of their episodes. It’s really hard to find all the top performing people in your hometown that are going to come to your house, right? So you’ve got to cast a wider net. The problem with that, though, is that Skype, at that time, and now Zoom, which a lot of people use, has the same problem. It records on one end. And so the hosts might sound really good, but the guest is getting recorded with all of the voiceover IP artifacts, could be compressed. It can sound really robotic if the Internet connection is unstable. It can completely drop out at times. And that is really, really annoying to a podcast audience. They’ll jump your case on Twitter; they will stop listening to your show, if you’ve just got poor quality audio. It’s really annoying to the brain. And so it was a major pain point for podcasters at the time.

And that was, kind of, the initial problem and the initial entry point that we solved, long answer to your question. It was a double-ended recording solution. So you send a link to whoever you want to record with; it records them locally on their end; records you locally on your end; and then we mix those tracks together after the fact so that you have a really high-quality recording on both sides that is easy on the listener ears and sounds great and professional. And I should add, that was our entry to market. Now we’ve expanded and we realize there’s a lot of other problems in helping podcasters create high-quality content. And so now we’re helping them produce the content, distribute it, grow the audience and also find monetization.

I wanted to follow up with that, anyway, because you started Zencastr in 2015. I think it was audio only, and limited set of features, even though they were much needed features. But can you talk a little bit about those early days versus now? You know, what’s changed, both in the platform but also just from how you’re seeing people use the platform?

Yeah, I mean, A, the market is just blowing up. It’s white hot. And that’s been a big change, a lot more interest, a lot more bigger players in the market, a lot more people coming from other mediums to get into podcasting as well. It’s starting to become just another arrow, like a necessary arrow, in your quiver of your content marketing strategy, and for a lot of people the most powerful part of that. But, you know, I just went to the Podcast Movement Conference about a month ago, and one of the big things that I noticed there, and a big shift that’s happening now in the industry, is it used to be, you know, if you had a podcast, it was oftentimes mostly a passion project. You were probably spending out of your pocket to do this. You weren’t making a lot of money, if any, and sometimes you were spending hundreds if not thousands of dollars a year on all the tools and services around it. Now what’s starting to happen, now that you’re getting creators from YouTube and other platforms getting into podcasts, the expectations are changing to where it’s more of, instead of I’m going to pay you for your service, It’s like, “Hey, how are you going to help me make money, and how are we going to make money together?”

And I think that’s actually a great transition in the space. It’s a much needed thing. Most of these podcasters should be getting rewarded for the value that they’re providing into the ecosystem. And a way that I kind of describe what we’re trying to build is the YouTube for podcasts. If you’re on YouTube and you’ve got over a thousand downloads a month, there’s a button you can push, and now you’re monetizing; you’re in a rev share agreement with YouTube; you’re making money. And some of these guys are making a lot of money. And that doesn’t exist in podcasting right now, and it really should. And there’s no reason why it can’t. It’s been proven in other mediums. And that’s what we’ve built at Zencastr and are leaning heavily into. We believe that, if you’re a creator, you should be able to create and be rewarded for the time and effort you’re putting into it. And there’s a lot of people out there to listen, a lot of brands out there that are looking for more channels to grow. And podcasting is a great option there. 

So that’s a big shift that I’ve seen that’s been happening, and now if you go to the conference, that’s where the money is at; you know, the service companies are in the small booths, and then the advertising companies are renting out the galleries and throwing the big parties.

Yeah, and, I mean, do you see that as, I would say that’s a maturing industry, right? Is that kind of how you would characterize it?

The podcast ad market? Oh, yeah, I mean, it’s still very Wild West. I think it’s still even too early to call it maturing, like, it’s all over the place, and a lot of opportunity. You know, for example, we’ll go talk to some of our creators and we’ll just ask them an open-ended question like, “What does it cost to run an ad on your podcast,” to get a sense of how people are valuing themselves and the content. And you’ll get answers anywhere from, like, a five-cent CPM to a $500 CPM. And it’s just because the market is so all over the place right now. And, you know, that’s not a bad thing. It just means there’s a lot of work to be done to actually help people figure out how to actually make money and also not waste a ton of time.

That’s another big thing, not just monetization, but if a podcast takes you six hours per episode, which is what our old surveys we used to do before we started building all this product, that was the average, six hours; some people were spending a lot more time. And so just bringing that time to creation down and also making it so that it’s valuable for the creators is really a big part of what I think the podcasting market needs. There’s so many people that try to get into podcasting every day, hundreds, If not thousands, probably. And very few of them actually make it out of the other end of producing content and continuously making a show. It’s not because they don’t want to. It’s not because they don’t have talent. It’s just, it can be really hard and difficult without the right tool chain and the right help to not only help you create the content quickly. find your audience and then start kicking on the money as well, without having to be everything to everyone, like right now so many podcasters are trying to be a marketer, a podcast host, ad sales broker, social media, and nobody can really do all of that stuff well on their own. You kind of have to focus. But so many are being pulled in those directions right now.

I think that’s where it is kind of pointing to what you were saying earlier, it’s got some room to mature, surely, as a communication tool and as an industry, even though it is being used so prevalently. As far as content goes, I mean, I think that’s certainly a key thing. I mean, you can have the greatest team in the world, but if the content of the show is not compelling and everything, it’s not going to get that audience that is going to stick with it. What have you seen in terms of trends in content? I mean, I know there’s more podcasts than ever, so probably more diverse content, but are there any things that you’re seeing, and maybe just to focus that question, you know, content as far as those those brands and those marketers out there that are looking to get into podcasting, like any trends that you’re seeing there?

You know, one thing I’m seeing is just more and more brands are getting into it, in one way or another. I’m always sort of surprised at the different kinds of content. And there’s just such a diverse array of all different kinds of interests that I couldn’t even tell you, like there’s the obvious ones, like true crime is hot, right? I think everybody knows that. But, you know, aside from that, we try not to focus too much on what the content is but just helping give everybody the tooling that they need. As far as trends, I think a lot of it is just this move towards kind of a creator economy that you’re seeing happen in other places is definitely strong in podcasting now. People are coming into podcasting, like obviously they have passion, but it’s also with an expectation that they’re going to be able to build a business out of this. And that’s kind of the goals they’re coming into. Podcasters are very entrepreneurial people, very strong-willed. The ones especially that are successful now because, and in the past, because it’s not been an easy road to walk down. And now we’re just seeing there’s a lot of demand for people to come in and build a business out of podcasting, by and large.

So what’s on your roadmap with Zencastr? What do you see in the next couple years ahead?

Well, as I mentioned, we’ve recently launched the full creation suite, not just recording but production and editing, promotion and monetization. Further down the road, I think we’re leaning pretty heavily right now into helping them monetize through advertising as clearly everybody wants to do that in some way, but there’s a lot of other options, I think, that make sense for podcasters to monetize with that you’re seeing a lot of people already engaging with, which is like private RSS feeds, backer programs. You’re seeing live streams, and like paid kind of other sorts of events, also like merch. You know, there’s all different ways that you can monetize. And I think, if you’re a new podcaster and you’re growing, you know, getting off the ground, you may have an easier time making money with a backer program. I’ve talked to some podcasters that have maybe 5,000 downloads a month or less, but they’ve got a really strong, loyal audience and a backer program. And 500 of their audience members a month are paying them as part of a backer program, and they’re making real money off of it. And that’s a really high engagement rate. You’re not going to get that out of an ad, right? 

And so I think, depending on your content, depending on the size of your show, there’s different monetization options that make sense for that stage. And we want to be there to serve in all of those different areas. So that’s some of where our head’s at moving forward, is not just monetizing through advertising but finding all of the different ways that you can provide value to your audience and provide a deeper connection there that’s going to be valuable for them.

About the Guest

Josh is the Founder & CEO at Zencaster, one of the leading podcast recording platforms.

About the Host, Greg Kihlström

Greg Kihlstrom is a best selling author, speaker, and entrepreneur and host of The Agile Brand podcast. He has worked with some of the world’s leading organizations on customer experience, employee experience, and digital transformation initiatives, both before and after selling his award-winning digital experience agency, Carousel30, in 2017.  Currently, he is Principal and Chief Strategist at GK5A. He has worked with some of the world’s top brands, including AOL, Choice Hotels, Coca-Cola, Dell, FedEx, GEICO, Marriott, MTV, Starbucks, Toyota and VMware. He currently serves on the University of Richmond’s Customer Experience Advisory Board, was the founding Chair of the American Advertising Federation’s National Innovation Committee, and served on the Virginia Tech Pamplin College of Business Marketing Mentorship Advisory Board.  Greg is Lean Six Sigma Black Belt certified, and holds a certification in Business Agility from ICP-BAF. 

 

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Creating a great post-purchase customer experience with Irina Poddubnaia, TrackMage

 

The following was transcribed from a recent interview on The Agile Brand with Greg Kihlström podcast. 

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Today we’re going to talk about creating a great post-purchase Customer Experience. To help me discuss this topic, I’d like to welcome Irina Poddubnaia, Founder of TrackMage.

[Greg Kihlstrom] Why don’t you start by giving a little background on yourself as well as a brief introduction to TrackMage?

I started off my career as a sales professional, and at some point I just decided to move to China and start my own business at the same time. It wasn’t a very smart idea. And when we moved to China, we were running a fulfillment center where we were fulfilling a lot of orders and shipping them across the globe. So that was the point where we discovered the importance of post-purchase experience and exactly how it influenced our income and profit. So what we’ve been seeing is that customers got really anxious waiting for the goods, especially from China, where it takes a lot of time to ship them and for them to get the products. So we discovered that, when we provided proactive updates, we’ve seen less charge-backs and refunds. And that’s when we realized that this probably is a pain point on its own that can be sold for more businesses than ours. That’s when the TrackMage was born, literally crafted in the trenches when we were solving our own problem. And later on, when everything transitioned online and, actually, the business in China closed, we moved back to Bulgaria. And that’s when we discovered that we can just make it its own product. So that’s how my journey started.

That’s great, and so you have real firsthand experience with some of the challenges as well as the opportunities that this product, TrackMage, provides. So that’s great. Well, let’s start by talking about what it takes to create a great post-purchase customer experience. So, to start, let’s talk about some of the pain points. So what do brands often get wrong with their post-purchase experience?

Well, quite frankly, there are a lot of things that can go wrong with post-purchase experience. But the most common one is not having post-purchase experience. Literally, there is just a “buy” button; the customer places an order; and then nothing happens for maybe a couple of days or maybe a couple of weeks. And the customer just kind of forgets about their purchase. And the brand is literally expecting no reaction from the customer. And that’s why we are getting a lot of customer support requests, and we are getting swamped with questions like, “Where is my order?” And there is a term in supply chain management. It’s called “WISMO,” “Where is my order?” That acronym stands for that question, which comprises up to 70 percent of customer support load in retail. 

So the post-purchase experience is very important if you want to not only create a good relationship with a customer; it’s to just literally protect your business from charge-backs, refunds and even creating the load on your customer support. So post-purchase experience, it’s not only for creating customer retention and loyalty but also for lowering the cost of doing business with those customers.

I think that’s interesting because some organizations might have skeptics, let’s call it, of people that are not necessarily sold on going above and beyond on the customer experience. That sounds expensive to those that don’t really understand the value. And so, looking at it, it’s almost risk mitigation, right, is a way to look at it?

It’s almost risk prevention, I would say, because it’s much easier to justify the costs when a fire is already happening. So we are putting out fires upon fires upon fires, and we literally feel like we are doing something meaningful. But when we switch into the fire prevention mode and when we look for optimization points that can prevent bad customer experience in the first place, those negative reviews on social media or those different customer complaints that we are getting as retailers, so when we are switching to fire prevention mode, we literally revolutionize our business. Because all those problems, they stop plaguing the supply chain and the marketing department, and all the marketing literally comes from the customers. Because, when you have good customer experience, they share good reviews and the business grows.

Yeah, so what about companies that are doing it right? What are they doing differently? How are they thinking about this post-purchase customer experience?

So the companies that are thinking right, they put customer experience and post-purchase customer experience as part of marketing. The common belief in the industry is that the customer support and post-purchase experience are the cost centers. But, really, they are the profit centers. So when you have a good post-purchase experience, you actually create this trust between you and the customer. And the customers, they tend to buy more from a brand whom they trust. And if you invest in good post-purchase experience and you invest in good customer support, you actually invest in those customers’ second purchase, third purchase, fourth and so on. So you literally create a more sustainable business that grows exponentially because what tends to happen in the industry is that marketing is mainly focused around customer acquisition, not customer retention. So when you are retaining those customers, you don’t really have to acquire that many customers anymore, to continue growing.

Yeah, I mean, I think there’s always so many shifts in industries, you know, so I think there’s been a bit of a focus on separating marketing and customer experience. But I hear you say this, and totally agree with you, that there is such an opportunity. I mean, often with customers that I work with, we’re looking at things like customer lifetime value, which is not just an acquisition play. It’s exactly what you’re saying, which is, OK, let’s certainly get the customer in the door, but let’s make sure they’re happy and they’re buying again and they’re buying more; they’re buying more often; and they’re bringing their friends, too, right? So what advice would you have to a company where they’re having a hard time making that case?

I would definitely start from troubleshooting over points of contact and seeing how the customer experience actually looks from the outside. So literally buy your own product, and buy it from a mystery shopping, like, another email, another address, so that your employees don’t really understand that it’s you. And see how it looks from the customer’s standpoint. So “Do we answer the customer requests? How long does it take to get an email? What information did you get? What information didn’t you get? How did it look” – I mean, in the end – “when you received the product? Were you asked to leave a review? When were you asked to leave a review?” Because sometimes that only happens if a customer reaches out to customer support and when they are asked to evaluate the service. But usually, when people reach out to customer support, something already went wrong, so that they had to ask. 

Yeah, and so, just for clarification as well, are there any industries or any focus areas that TrackMage deals with, just to get a sense of your customer base?

TrackMage is exclusively working with e-commerce. And we are working with those businesses that have some physical goods that are moving from Point A to Point B. So we are mainly in physical goods. So we don’t help with digital products, or some courses, or other stuff that doesn’t have to be shipped.

Got it, and then, by that token, if you’re selling digital goods, there can be that instant gratification of, like, download or, you know, get instant access. But the companies that you’re dealing with, there’s that wait time; there’s the delivery experience. There’s, I guess, the hassle of returning, if they need to return stuff. So there’s a lot of challenges, but there’s also a lot of opportunity, right?

Definitely. Online retailers and wholesalers, they have very unique challenges, and it’s borderline between marketing and supply chain and all the hard stuff over business.

What trends are you seeing? Obviously, over the last few years, there’s been a lot of things going on, a lot of changes, supply chain issues, all of those kinds of things. But what trends are you seeing now that companies in e-commerce selling physical goods should pay attention to?

Well, I’m seeing a very interesting trend that started recently, and it’s getting stronger. So it started recently with Shopify, for example, inviting influencers and creators to a platform. Also, there was another platform – I don’t remember their name – that launched TikTok endorsements, a paid TikTok endorsements platform, where the customers can actually just record a video of them using the product and they are going to get paid once they post it on TikTok. 

So what I’m seeing is this merger between the creative side of social media and retail. So it’s more and more intertwined, and more and more, those influencers from various platforms are gaining power over consumer needs. So if, for example, one of the Kardashians showed a product, there is definitely going to be demand for that product. So what I’m seeing right now with, pandemic or no pandemic, is that creators are more and more important right now, on the platforms and overall over the Internet.

So let’s switch topics here, a little bit. I see that you have a background in Lean Six Sigma. We share that. It sounds like you might have a little more experience, in practice, with it, but just curious about a couple things. So can you talk a little bit about how you’ve used that approach and where you’ve seen the greatest success using Lean Six Sigma?

Well, we’ve used Lean Six Sigma in multiple optimization endeavors. So basically just, with typical Lean Six Sigma projects, where we take a not-straightforward process with multiple moving parts and people in place, then we apply Lean Six Sigma to really clarify what are the metrics, what should be optimized. And usually what we tend to find are those friction or acceleration points. So the friction points are the ones that are slowing the growth or resulting in some rework or returns or refunds, exactly what I was talking about in the beginning. And the acceleration points are the ones that actually propel the growth, something like the customer sharing a review on social media or the customer inviting their friend to make a purchase, or some other things that don’t cost the brand any money but actually bring extra sales in.

So with Lean Six Sigma, all of those metrics, they contribute to the final result. So what we discovered with a lot of e-commerce companies is that we have even challenges with some things like accounting, bookkeeping, or counting the money. A lot of businesses don’t even know if they lost the money or earned the money, when we’re selling the products, which is really fun to work with, because you invest, let’s say, $20,000, and then you get, what, minus $3,000 in return. So with Lean Six Sigma in place, we were able to help those businesses actually straighten the process out and understand if they’re losing money or if they’re earning money. And, based on Lean Six Sigma, we were also able to tell which products were gaining the most growth of a business, versus the ones that were actually the lost leaders but were not really influencing much of the customer acquisition.

So how about the relationship between Lean Six Sigma and Agile? How do they work together? Do they work together? How have you seen them coexist, if that’s possible?

Well, this is probably my favorite question out of all the questions that you’ve asked. So what I usually explain is that Lean Six Sigma is applicable when the process is predictable, or when you have a standard result. And Agile works with unpredictable, or a very dynamic environment where you have changes upon changes and you have to adapt all the time. So, for example, e-commerce business has both parts. And different kinds of processes should be applied to those two different parts. So the part that is Agile and definitely stays Agile over time is marketing, because you always need to create new and inventive ways to acquire customers, to create different campaigns. And it’s never the same. But when it comes to shipping products, restocking, making sure that the inventory is there, making sure that the shipments are getting shipped on time, this is Lean, because this process is predictable, and shipping one package doesn’t differ from shipping another package, unlike in marketing, where every creative is unique and you have to produce different creatives for different campaigns.

I like that way of putting it. It’s basically using the right tool for the job, right? And, to your point, there’s plenty of room for both in a lot of organizations, probably in most organizations, I would say, because, if nothing was repeatable, you’d have problems, too, right? 

Yeah, being too agile is where you’re literally just like, “Oh, yes, this is the new fire, or this is the new priority. And sometimes the companies, they never get out of this perpetual (inaudible), where, like, “Oh, let’s fix this next. This is the new fire. This is the new priority.” And we’ve all seen those companies where the urgent, important, critical, priority is the only way to tell that this is actually the thing they’re working on.

You have to keep creating new labels, almost, for higher priority, or something like that.

Yeah, because everyone is hysterically waiting for the next big thing, and they are always just like, “OK, what is more important than “critical?” Probably “urgent,” right?

It’s like naming a document “final.” You know, never, ever do that because it’s never going to be the final draft of a document, right?

Yeah, I’ve seen some of those cases where there’s a “final, final, final” document.

About the Guest

Irina is a SaaS founder and a certified ecommerce business project manager consultant. She has very broad experience in ecommerce with over 8 years with its different challenges and obstacles: from running a fulfillment center in China where she was living for over 2 years to launching her own SaaS software “TrackMage”.

She has been successful executing Lean 6 sigma optimizations for eCommerce companies: customer support, logistics and overall supply chain management optimization.

Irina is the founder of TrackMage.com platform. It allows Ecommerce stores to have a 5-10% extra sales by simplifying the customer experience. TrackMage tracks the products, do the upsell and then takes care of the automatic follow ups for reviews.

It helped many brands reduce the number of claims received by the customer services and offer a quality service.

TrackMage has signed a deal with Metal Family, the notorious group of content creators who create famous animations on YouTube with Millions of views worldwide. With their rising popularity, they decided to expand and start selling physical comic books and other merchandise. TrackMage was the solution chosen to help them manage all the supply chain from confirming orders till getting thousands of reviews at the end of the sales funnel.

About the Host, Greg Kihlström

Greg Kihlstrom is a best selling author, speaker, and entrepreneur and host of The Agile Brand podcast. He has worked with some of the world’s leading organizations on customer experience, employee experience, and digital transformation initiatives, both before and after selling his award-winning digital experience agency, Carousel30, in 2017.  Currently, he is Principal and Chief Strategist at GK5A. He has worked with some of the world’s top brands, including AOL, Choice Hotels, Coca-Cola, Dell, FedEx, GEICO, Marriott, MTV, Starbucks, Toyota and VMware. He currently serves on the University of Richmond’s Customer Experience Advisory Board, was the founding Chair of the American Advertising Federation’s National Innovation Committee, and served on the Virginia Tech Pamplin College of Business Marketing Mentorship Advisory Board.  Greg is Lean Six Sigma Black Belt certified, and holds a certification in Business Agility from ICP-BAF. 

 

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Fast Company: The fundamentals of agile leadership

 

This article was written by Greg Kihlström for Fast Company. Read the full article here.

Though it is beyond being a cliche at this point, I believe that people will stop talking about change being the only constant in business and life (aside from death and taxes) only when it stops being true. What does this mean for current and aspiring leaders?

Just when a leader thinks they might have solid ground under them, another disruption occurs, sometimes making the playbook they thought they perfected obsolete, and in other cases requiring new approaches to be combined with existing ones.

For a leader, this requires the ability to objectively assess your approaches, the humility to acknowledge that you may not have all the answers, and the optimism to embrace change and march into the unknown. I call this agile leadership, and in this article, I’m going to explore three aspects of what makes a successful agile leader.

This article was written by Greg Kihlström for Fast Company. Read the full article here.

 

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3D in Retail and Beyond, with Beck Besecker, CEO of 3D Cloud by Marxent

 

The following was transcribed from a recent interview on The Agile Brand with Greg Kihlström podcast. 

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Today we’re going to talk about the use of 3D in retail and beyond. To help me discuss this topic, I’d like to welcome Beck Besecker, Co-Founder and CEO of 3D Cloud by Marxent.

[Greg Kihlstrom] Let’s talk about the use of 3D in retail. How would you describe the current state of 3D usage in retail by the average retailer, as opposed to industry leaders?

We’re still in the first inning of 3D within retail. I’d like to answer this question by kind of going to where it will be.

So what’s inevitable is that eventually 3D will become the principal way you see and interact with products online. So imagine every single product page that you’d go to on Amazon or Wayfair or Target.com or Macy’s, that it’s in fact a 3D model that you can interact with and articulate and pinch and zoom and twirl and spin and download. Eventually, 3D will replace all photography on every product page. And that will be everything from furniture to shoes to luxury watches, you know, dog food, bottles. It will be everywhere. But we’re probably 10 years away from that. And the reason is 3D is transformable; it’s reusable. You can take 3D and see it in physical space using AR or other applications. You can use that content for advertising. You can use that content for visual merchandising. It’s just a very, very malleable asset that people will just come to expect in time. 

Today, the cost of 3D modeling is still quite high. I mean, you could be spending $30, $40, $50, $60, $70 on creating a relatively simple product. And the quality, like the visual quality you can create in 3D, a live 3D model, is still not quite, you know, hyper-realistic, right, like a photo would be. So the cost and the technology have a little bit of ways to go, but the categories that are already out in front are the home categories. So furniture is by far the largest use case of 3D, for, you know, furniture, kitchen, bath, decking, places where you need 3D to do some sort of configuration before you buy a product. Those are the leaders in the space right now.

What kinds of things are those leaders doing that are setting them apart?

What’s happening is they use an analogy, like we used to call a professional to book an airline ticket, right? Because they had a desktop tool and they would tick away, you know, while you’re on the phone with them, and get you your ticket, right? Then Expedia and Travelocity and all these sites, you know, Web-ified them and made them easy to use, and point-and-click, drag-and-drop, and all of a sudden we can all book airline tickets by ourselves. The same thing is now happening for the home industry, where it used to be, if you wanted to design a kitchen or a bathroom or lay out furniture in a virtual space, there was a desktop tool; you would download Photoshop or some other professional tool. You had to have a big graphics card and a big processor, and you had to be trained on how to use the software. 

Now, because 3D is now available for browsers, we can take all that software, really make it drag-and-drop, super-simple, put it on the Web, and people can do it themselves. And so, I mean, we’re doing hundreds of thousands of kitchens and decks and bathrooms and consumers are just doing it themselves. And so now it’s becoming like a self-service e-commerce tool to design a kitchen and check out.

Beyond some of the leaders and some of the areas where it’s being used currently, where do you see some other big opportunities in retail, and what kind of benefits do you think it can bring there?

There’s a confluence of variables I have to meet in order for it to work. So, for instance, for something like a kitchen, if we created 3D models of a kitchen catalog, those products, you know, the faucets and the  appliances and the counters and the cabinets themselves, once we create those assets, they’re not going to change very often, right, like once every two or three years, you might update a finish or something. So the cost of creating those assets can be amortized over a long period of time. Then you also look at, well, what’s the use case? It’s like, well, OK, I actually have to configure this in order to buy a kitchen, and it’s a several thousand-dollar purchase. And so the amortization of the content, plus the use case, is creating a value proposition that works.

To move into other categories, to your question, let’s say handbags, as an example. Will people use 3D to sort of visualize and interact with a handbag, if they’re on Gucci or some place like that? Well, if it costs you $1,000 to create that 3D asset and that product’s out of inventory in two months, you’re not going to get a return on investment. Then you have to ask the question, “Well, do people actually really want to be able to hold a 3D Gucci bag in their hand, like does the product market fit there? Now, if the cost of creating that handbag is 25 cents, you know, why not, right? You’re probably going to get some lift out of that experience. And so you’ve got to find the cost and the amortization and the use case, and if they all sort of intersect to actually make an ROI that actually works. So that’s how we go from category to category and start testing that.

I work a lot with organizations where we’re working on personalization strategies and, wouldn’t it be great if we could, if you have a product, whatever that product is, in the ad, on the website, on the mobile app, wherever you are, could you see the exact product in the exact angle, with true personalization. That becomes really hard when you’re doing product photography. You can’t take a million photos of every single thing. It sounds like it might be early days to really try something like that at scale. But I definitely see some potential for things like that as well.

A really interesting thing that we’re experiencing right now is, let’s say you’re the manufacturer of a product. Let’s just say you’re doing furniture. And I’m the retailer. And the manufacturer, you may, come along with me – so, “I love the couches you manufacturer; I’m going to buy them.” And then I say, “Hey, I need to merchandise those couches on my site. Do you have any photography?” And you say, “Yeah, here’s some product shots I’ve made out of 3D, and here’s some lifestyle images, like in a house and in context, a really nice, glossy photo. But my website – I’m the retailer – uses a different background, right? And I only may sell three of the five products that are in that photo. And so there’s this gap in the market between what the manufacturers provide and what the retailers want, because they’re gonna personalize that content to their site. 

So all of this 3D stuff is actually a great answer to how to solve that, if the manufacturer says, “Well, here are the assets, and if you need to produce custom content for your own merchandising, you know, have at it.” And then what that also does is now, all of a sudden, instead of using these assets for you know, you create photography in September and use them all year ‘round, you can create instant content for holidays, right, and promotions. And so it’s much faster, much more flexible, much less expensive, which is pretty neat.

So there’s a lot of talk about metaverse and all things related to that, for various reasons. You know,  obviously, it uses a lot of 3D. How do you see that changing retail and even what you’re doing?

I’m going to try to be not jaded. Well, it’s funny, so we wrote the very first augmented reality app for the app store in November of ‘11. And so we love to be on the bleeding edge. So we love innovation. It’s why we do what we do. It’s, you know, the best part of the job. I’ve also lived from AR to VR to MR to XR to now, you know, it’s all these different monikers we give the space. Well, here’s where I think there’s an absolute, no question, use case. That’s, if you’re in some kind of game experience like Roblox or Fortnite and you’ve got avatars and you want to somehow wrap your personality and brand in, like, a virtual Nike shoe or a virtual Gucci bag or what have you, that makes a ton of sense to me. I mean, that’s just basic brand advertising and marketing, right? Some of these other cases, like we have a lot of furniture clients who are like, “Hey, what should we do about the metaverse?” I’m like, “Well, man, it’s kind of interesting. All you do is talk about creating high-quality, realistic assets, and now you want to put them in Roblox, that’s basically cartoonish, like there’s a little bit of a logic gap in there somewhere, that needs to be sorted.

So my view, at least I can only really speak to where I’ve had some experience, but I think what’s really interesting about a metaverse type opportunity, for at least the home category, is some day, when you buy your home, the seller will also give you an exact 3D model interactive replica of your home to go along with it, and Zillow will have 3D homes that you can download and interact. And so the idea of going out into something like the metaverse, whether it’s a connected experience or stand-alone, and pulling things out of that world and into your own digital version of your space, I think that’s pretty cool. But, you know, the way I think about the metaverse now is the first thing we do when any technology is new is we copy what we already have in that new medium, right? 

And that’s what we did with websites. They used to, the taxonomy of a catalog looked like a store, right? And then of course that’s all changed. And so, to me, creating a virtual mall – and I’m not trying to downplay the guys that are doing these kinds of things – to create a virtual mall to walk around is like, to me, the equivalent of creating a virtual car lot to walk around to buy a car, like that makes no earthly sense to me. I don’t want to walk around a mall. I want the mall to come to me. But I think that’s how you start, right? The first thing you do is you go, “Oh, hey, let’s emulate the real world, and then we’ll iterate and come up with something cooler.”

Let’s go back to those companies that may not quite be on the cutting edge of using 3D in their retail but, you know, getting started and maybe accelerating their 3D usage. So for those that aren’t quite there yet, what are some things that they should be keeping in mind as they’re trying to get started in this realm?

Initially, in this space, a lot of early adopters thought of 3D as like an application, like “I need an augmented reality application,” or “I need a product configure app,” or “I need a room planning app.” And that was perfectly fair, three, four or five years ago. But the truth is there’s lots of use cases for 3D, and while you might pilot or beta something by just buying an individual app, once you, if you’re a big enterprise like a Kohler or a Lowe’s or a Best Buy or whomever, 3D really is like a platform decision. You need to buy a content management system, almost like you’d buy a CRM. You wouldn’t buy nine different CRM systems, right? You’d buy one CRN system and deploy. The same is true with 3D because you want to repurpose the same asset and you want to deploy it to different applications, and you want analytics all in the same place. And so I think, outside of maybe piloting something, the biggest decision that people need to make first is, “OK, what’s going to be my content management system first, and then what are going to be my applications, second?”

You mentioned analytics, so I’ll go there a little bit further. How should those companies be measuring success? What are the metrics that your customers use to measure how well they’re doing?

I mean, there are a ton of parallels to e-commerce, things like dwell time, where we all know, the more time you spend with something, the more likely you are to buy it. Augmented reality absolutely works. There’s no question about it. If AR is available on a product page, you get a two to three times increase in conversion. It’s very consistent. Now, I mean, some of that’s you’re interested in the product anyway, so you probably want to discount it. But even if you get a 100 percent, 20 percent or 30 percent increase in conversion, that’s still pretty good, right? 

So what we have learned, though, is augmented reality does not work equally for all things. It’s primarily used in the home category as a replacement for measuring. So if you look at what gets used in AR, it’s big things like dining room sets and bedroom furniture and sectionals. Those are the most popular categories. People don’t really use AR for, like, lamps and mirrors. So you probably don’t want to spend money there. But it’s all the same kind of metrics. It’s increases in average order value. It’s duration in the application. It’s conversion to leads, if you’re using it as a lead generation tool, like into a design team. It is reduction in returns because people are able to interact and make sure they buy the right thing at the right size. So it’s all the same metrics that we use to measure website performance.

About the Guest

Beck and his brother Barry are early innovators in marketing technology, first pioneering cloud-based targeting marketing at Copient, a firm acquired by NCR. Their latest company, Marxent, is another cloud-based platform for retailers that is pioneering 3D content management and 3D applications including AR, VR, product configurations, and 3D room planners. Clients include Macy’s, Ashley, La-Z-Boy, and many more leading brands.

About the Host, Greg Kihlström

Greg Kihlstrom is a best selling author, speaker, and entrepreneur and host ofThe Agile Brand podcast. He has worked with some of the world’s leading organizations oncustomer experience, employee experience, and digital transformation initiatives, both before and after selling his award-winning digital experience agency, Carousel30, in 2017. Currently, he is Principal and Chief Strategist atGK5A. He has worked with some of the world’s top brands, including AOL, Choice Hotels, Coca-Cola, Dell, FedEx, GEICO, Marriott, MTV, Starbucks, Toyota and VMware. He currently serves on the University of Richmond’s Customer Experience Advisory Board, was the founding Chair of the American Advertising Federation’s National Innovation Committee, and served on the Virginia Tech Pamplin College of Business Marketing Mentorship Advisory Board. Greg is Lean Six Sigma Black Belt certified, and holds a certification in Business Agility from ICP-BAF.

 

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Customer Experience Innovation Without Boundaries, with Justin Anovick, Optimizely

 

The following was transcribed from a recent interview on The Agile Brand with Greg Kihlström podcast. 

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Today’s customer is on multiple devices and channels, and wants a seamless experience as they interact with brands whenever, wherever, and however they want. This can provide challenges for even the most customer-centric brands, which require solutions that allow the planning, creation, delivery, management, and testing of campaigns and content across multiple channels that deliver a great customer experience.

Today we’re going to talk about customer experience without boundaries. I’m here at Optimizely’s Opticon 2022 conference in San Diego, and would like to welcome Justin Anovick, Chief Product Officer at Optimizely, a leading digital experience platform used by top brands that want to manage and deliver better digital experiences for their customers.

We’re in day two of the Opticon conference as of recording this show. So, we’re going to talk through a few of the announcements that were made, some big announcements from Optimizely. First, I’d love for you to introduce yourself. You’re Chief Product Officer at Optimizely. What does that mean at Optimizely? Tell a little bit about your role.

Justin Anovick:

I’ve been with Optimizely for a little over six years, really focused in the product area. As Chief Product Officer, I’m responsible for the roadmap of the product, what we’re doing, where we’re going.

We have made decisions over the past couple years. You’re always looking at build, buy, partner, and there’s been a combination of each in order to deliver our capabilities. But my team and I really focus on working with customers and partners to make sure that we’re delivering the right capabilities that they need. But also looking ahead, and people don’t necessarily know what they don’t know, and making sure to stay ahead of the curve and delivering innovative capabilities as well.

Greg Kihlstrom:

Nice, nice. We’re going to talk in specific about one aspect of some of the announcements here. One of the big announcements here was this concept of Boundless Digital Invention, which was designed to help brands solve challenges that I briefly described in the intro. Can you describe a little bit about what does boundless digital invention mean, and what does it include?

Justin Anovick:

Yeah. So we went through the process, we talked to customers, and analysts, and really tried to understand the perception of Optimizely as well as what we want to portray, and Boundless Digital Invention was so obvious because it’s aspirational. Right? You don’t want to be bound to the capabilities and the thoughts and the processes that you have today. And really, invention is more along the lines of being scientifically-oriented. When you think of invention, you really equate to being science-based.

So, being boundless, but also rooted in making sure that you’re using science to deliver the experiences that you want. And what’s a part of that really, in how we talk about our capabilities and what we offer, is: Orchestrate, which I think we’ll talk about; Monetize, which is really about the commerce experience; And then Experiment, which is testing a concept to make sure that you’re driving the most value.

Greg Kihlstrom:

Great. Right, yeah. I love that usage of invention, and I think there was quite a bit of talk about both the art and the science of marketing. Having done this for a few years, I can definitely attest to that. There’s definitely an art to it, but if you don’t have the science behind it as well, you’re definitely missing out. I think the Monetize and the Experiment components, certainly those familiar already with Optimizely are definitely familiar with that.

But I think the Orchestrate component is something where personally I’m feeling this in my consulting work with customers. I’m feeling some of the pains that I think drove the creation of this Orchestrate component. It has to do with creation of content, and particularly how content is created for personalization, which that means multiple iterations and variations and all those things. So, anybody that’s been part of a team that has to do that probably has their own horror stories about what it actually takes to coordinate and do all of this. Can you talk a little bit about the Orchestrate solution, and some of those challenges that I kind of inferred there?

Justin Anovick:

Yes. So, technically from a product perspective, (which becomes important at a certain point, but really should be the last piece,) it’s the combination of content management, content marketing, and digital asset management to help marketers, in this case to deliver the right content. But when we really delve into it, we look at what our customers actually use us for or what we hope they use us for, and we talk about these six key activities that help drive the orchestration of what you do.

We can talk through each one of them if we want, but a couple of them are super important as a part of the Orchestrate. The first thing is you have to just know what’s going on in the organization. You have to understand not only what your intent is, but what are your metrics that you’re trying to drive? What are the outcomes you’re trying to achieve? And you need the data and the analytics to tell you how your business is performing.

Without that piece, what’s the purpose of anything else? That becomes guesswork. That becomes less science, and that becomes all art not grounded in reality. So that understand is just purely understanding: What content gaps do you have? Well, we talk to a lot of our customers and we ask the question, “When you start creating content, why do you do it?” And they say, “Well, because we think we need it.” It’s like, “Okay, that’s a good start. But what if we could show you what you actually need and why?”

If you just launched a new campaign for a new credit card, and you realize that customers are actually looking for more details about the APR, well, how do you know that that’s the case without understanding the performance of what’s happening? So that’s the first and I think most critical part. Once you understand, then we ideate. As a part of ideation, there’s collaboration, planning. This is where now you take what you’ve understood of your content gaps and now pursue what you need to do.

Greg Kihlstrom:

Well, and in a multichannel, omnichannel, cross-channel, whatever word that proceeds “channel” world … There’s channel switching by customers, and the teams that are actually creating all of this content need to understand and manage that as well. So, does this help with that kind of thinking as well?

Justin Anovick:

Yeah. It’s funny that you said whatever word precedes “channel,” because I was talking to somebody else, and we’ve been talking about it for 20 years. Omnichannel, cross-channel, all of that, and it’s not just about the digital channel. I think one of the trends that we’re seeing more and more of is some people come to us and say, “I want a CMS,” and they’ve already determined the problem statements that have helped them arrive at why you’d want a CMS. But in reality, they want an improved experience, they want to drive more leads, they want to decrease customer acquisition costs or whatever.

In reality, though, they really need to develop content that’s a part of a campaign. So if you’re launching a new credit card, like we said, it’s not just about what goes on the website. Well, you need banners, you might need copy for emails, you might need copy for social, and that’s all about launching that new credit card, and it’s not just about the content for the web. And what we’re seeing in the trends is that there’s a single team that owns all of that. There might be specialists that create it for the end property, but in reality you’re creating that entire campaign and web is just one element of it.

So when you go through the ideation process, it shouldn’t be in isolation of all the other activities that occur, and that’s a massive trend that we’re seeing. It’s no longer just about any one channel. Because it is funny, when you see and hear “omnichannel”, organizations normally were never organized that way. They were never omnichannel. Their customers were, but they were never organized that way. The trend is now that the organizations are becoming more omnichannel themselves.

Greg Kihlstrom:

So a lot of organizations right now, like Fortune 100 companies that I work with, are organizing these things in Excel sheets, and a myriad of Jira and Asana, and name your project platform of choice. How does this help with that? So you’re organizing cross-channels from the customer perspective as well, but how does this help in just putting stuff in one place?

Justin Anovick:

If you saw the skit that we did at the keynote yesterday, well, the conclusion was: #Don’tBeKevin. But how we got there was … It is insane that if you are creating content, regardless of how you’re using it, you might be in Word, and then you’re collaborating in Word and commenting in Word. Well, that’s in isolation of a broader workflow. And then you have to go and manage that campaign or that content in an Excel, and then you have to post in Jira and Slack and Teams and all these different places.

And as we’re going through and developing the before skit to articulate the problem that exists, we ourselves just had massive laughter because that’s where we were a few years ago, and we know that organizations are like that. So the complexity and the chaos of having to use all those different applications … I used to be in a contact center space, and one of the first things that you would do is you’d go in to look at the customer service rep’s desktop, and they would have 15 tabs open that they would open in succession in the right order because they knew what it was like.

Well, that’s marketers’ lives these days, is that there’s literally 15 different applications in order to process one piece of content. It is ridiculously chaotic. So yeah, our skit was done by Kevin, who, that’s why we say: #Don’tBeKevin.

Greg Kihlstrom:

Nice, nice. So, you touched on this a little bit earlier, but how does this help with personalizing messaging to customers? So you’ve got to create all those different variations in order to personalize, you need to have the content to support personalization. How does this approach with Orchestrate help with that?

Justin Anovick:

It becomes a little bit more complicated, because over the years … The answer becomes more complicated, but the actual solution is probably easier. But over the years, and we’ve talked about it, everybody out there wants to personalize. You want to personalize: What product are you putting in front of people? What content are you putting out there? Oh, you need to create atomic content, because then you just change out the paragraph.

All of that is critically important, but the whole missing component was the data that drives that decision and how you segment. So if I have three kids, there’s a newlywed, there’s somebody that has three dogs, how do you make sure to know what you’re delivering to? And historically that was a missing component.

So you could personalize the content because you’ve created atomic content, you’ve created a bunch of different options. But what was missing was it was all based off of the behavior of what they were doing in that experience, and then people like them that took that same path. But it wasn’t able to use external data about the individual, and it could be even anonymized. It doesn’t necessarily have to be about what you know about them, but you start to take that and that data then drives the right content.

So the creation of the content, having multiple blurbs and making sure to deliver, that in essence was the easy part. The harder part was really about aggregating the data to be able to use and deliver that personalization. And frankly, in the industry that’s probably what was missing up until two, three years ago.

Greg Kihlstrom:

And that drives things like next-best action and other things like that as well, right?

Justin Anovick:

Yeah, absolutely. So, a lot of folks want to design the ideal experience of the right step to do next, the right content, but in reality it has to be much smarter than that. The next-best action could be a multitude of things based on what they just did. You really can’t design the ideal flow because there’s massive permutations to it. You really have to have the logic to say, “These are how these two components or this atomic content is connected,” in order to drive the next-best action.

Greg Kihlstrom:

So, last thing on this topic. Another time-saver and kind of an efficiency gain is the ability to repurpose content. So you create something, it works well, you test that it works well, but you want to use it in a slightly different way or for a different purpose. So, how does this Orchestrate help with repurposing or creating new content based on existing or previous …

Justin Anovick:

The thought is, again, you understand what’s happening, you ideate, you’re creating that content. You create a brief that basically says: What are you intending to use this for? And then the offshoot of that would allow you to use the micro-components, the atomic content for the right area. So the title might be something that you would use in an email, as well as something that’s on the webpage. But the body may be different, because the body on the site is way longer than what you can send out in an email or in social. So you create variations of those. It’s all based on the same overall, overarching title or structure where you’re creating those multiple components to be able to use in the right channels.

We have some capabilities to allow the system to automatically create content. You type in basically what you want, how you want to say it, and then it’ll create those variations for you. I think that is a little bit further away from people to be able to use that mindlessly. You still need to check what you use, but there’s capabilities that the application and the smarts, that it can create it for you. So you create the content for the website and it can recommend, “This is what you should say for mobile.” But it’s the reusability of that based on the overarching content piece, in essence.

Greg Kihlstrom:

Nice. So for someone that’s considering taking this approach, using a tool like Orchestrate, what’s a way that they could start? What mindset should they have, or how do they get started?

Justin Anovick:

There’s a few options. One is to just Venmo me. Two, more likely the first thing is you shouldn’t start off by saying, “I need Orchestrate.” You need to start off by saying, “What are the problems? What are we trying to address? What are the outcomes that we’re looking to achieve? Poor lead conversion? Customer acquisition costs? Stock?” or whatever. That’s where you start. Really define it.

Now, that sounds super logical. But when you go into a lot of opportunities or customers and they haven’t defined that one piece, they just know that they need a CMS or they know they need a combination of these capabilities. That’s like the last step, right? So, obviously understand what’s going on out there and the different capabilities, but really refine what you’re looking for as to the problems that you’re trying to solve. Again, it seems so obvious, but it seems like people start with wanting a CMS and then back their way into their problems that they’re solving. It should be the other way around.

Greg Kihlstrom:

I totally agree. Asking, “What’s the problem we’re trying to solve?” is always a good approach. So, I totally agree. Well, one last question before we wrap up here. We’re at Opticon here in San Diego. What’s been your favorite part so far?

Justin Anovick:

This is the first time seeing colleagues and customers in a while. The last time we got together was really three years ago, and I’ve given more hugs to people this week than I have probably my entire life. Because it’s like, “Oh my gosh, I actually missed that person,” and the 4-D experience is actually much better than the 2-D experience. But it’s been connecting with people and all of that.

In addition, on the selfish, product side, I had a meeting with my product team the other day and said, “Hey, assume that our customers don’t know what we’ve done in the past few years. They probably don’t know what we’ve acquired. Start off from baseline.” And really enlightening people on what they can do with their current investment today, it’s pretty cool to unlock that and uncover it. So the combination of people, and then enlightening customers as to what they actually own and how they can actually get more out of it. So, yes.

About the Guest

Currently the Chief Product Officer at Optimizely, Justin is responsible for product strategy, product management and technology partners. Justin has a 20+ year career with experience in sales, pre sales and professional services and experience with mid-size ($100+M) organizations as well as M&A. He tends to be more business oriented than technical and has spent a lot of time helping to determine the best go to market strategies based on data, past experience, and what the field is seeing.

Justin joined Optimizely over three years ago after leading product strategy at Verint. He is known as a creative thinker who knows how to present a compelling story and provides great leadership for his team. As part of the fun he has at Optimizely, he also co-hosts their internal variety show “Episodes”.

Justin lives with his wife and kids outside of Charlotte, North Carolina.

About the Host, Greg Kihlström

Greg Kihlstrom is a best selling author, speaker, and entrepreneur and host ofThe Agile Brand podcast. He has worked with some of the world’s leading organizations oncustomer experience, employee experience, and digital transformation initiatives, both before and after selling his award-winning digital experience agency, Carousel30, in 2017. Currently, he is Principal and Chief Strategist atGK5A. He has worked with some of the world’s top brands, including AOL, Choice Hotels, Coca-Cola, Dell, FedEx, GEICO, Marriott, MTV, Starbucks, Toyota and VMware. He currently serves on the University of Richmond’s Customer Experience Advisory Board, was the founding Chair of the American Advertising Federation’s National Innovation Committee, and served on the Virginia Tech Pamplin College of Business Marketing Mentorship Advisory Board. Greg is Lean Six Sigma Black Belt certified, and holds a certification in Business Agility from ICP-BAF.

 

 

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The Importance of Addressing the Digital Divide for Better Employee Experience

Read More The Agile Brand Blog – Greg Kihlström Customer Experience & Digital Transformation

As much as 30% of adults experience problems connecting to the internet at home, with 15% of U.S. adults only relying on “smartphone-only” internet. This technological disparity has led to the rise of a digital divide, with less fortunate communities often being left behind.

Written by Trix David for The Agile Brand Blog

Digital access has been more available than ever. A report by the Pew Research Center on mobile tech and home broadband notes that U.S. smartphone ownership and home broadband subscriptions have increased from 2019 to 85% and 77% respectively. However, despite a vast majority having access to these technologies, some people still face access difficulties. As much as 30% of adults experience problems connecting to the internet at home, with 15% of U.S. adults only relying on “smartphone-only” internet. This technological disparity has led to the rise of a digital divide, with less fortunate communities often being left behind.

What is the digital divide?

The digital divide refers to unequal access to technology. Maryville University’s insights on the digital divide in the U.S. note three types of the digital divide: the gender divide, the social divide, and the universal access divide. These disconnects often arise from less privileged groups, such as women, people who aren’t able to afford access to broadband or the internet in general, as well as those with physical disabilities or digital illiteracy. However, there could also be a digital divide in terms of capabilities. A gap in technology-related skills or education may grow more evident as younger, more tech-savvy employees enter the workforce — potentially leaving older workers behind.

How can employers address the digital divide?

Given these technological challenges, many people struggle with not only limited access to different resources but also struggle to stay relevant at work. The digital divide can negatively affect their happiness and work performance, especially in recent years when workers were forced to follow a remote setup. As covered in our post called “Healthy Organizational Cultures”, it’s the responsibility of employers to bridge this gap and focus on improving the employee experience, before their customers’ experience. By being inclusive in their approach to their workforce, companies can help employees address issues related to technology and develop positive business outcomes. Here are some ways employers can start overcoming the digital divide:

Make equipment and tools accessible

Having limited access to technological equipment such as a laptop shouldn’t be the basis for not keeping a great employee. The difficulty often lies in not being able to afford these tools, so to remedy this, businesses should at least lend workers digital equipment and tools that enhance their work. In addition, companies also need to consider their employees’ internet speed and provide an allowance based on their workload. By improving accessibility, businesses can achieve better remote worker productivity and job satisfaction.

Offer training and support programs

To adapt to changing technologies, companies must train and support their employees in learning or re-educating themselves in different processes. This is in line with an article by Business Insider on reskilling, sharing that 79% of CEOs are regularly concerned about their workforce’s existing skills. Businesses must reskill their employees to promote inclusive and sustainable economic growth and support productive employment with fulfilling work. Free training programs can ensure employees have relevant skills and increase business success outcomes.

Stay connected with employees

Aside from addressing their accessibility and technical challenges, employers must stay connected with their employees. Organizations that foster connection and collaboration between their employees can encourage more experienced workers to help out their new co-workers. Aside from being a way to seek mentorship, social interaction can help boost employee morale and motivation to help workers tackle problems in the digital workspace. Employees can increase their knowledge and productivity through a positive work environment, leading to outstanding performance.