Week 1

Video Transcripts

Video 1 (05:35) - Customer Expectations in the Digital World

As we start the discussion of how we're going to think about marketing in the modern digital
world, it makes sense and their expectations. As you think about your own behaviour as
customers, it has changed significantly Justin the past five to ten years. So, what are some of
the new expectations that customers have of us? First, they want to be treated as a human
being and not as a number. They want to be understood for their profile, who they are, what
they've done with you in the past, and they expect you to remember the entire history of their
interaction with your firm. They also expect you to respond quickly. They would say to you, "I
tweeted ten minutes ago. Why haven't you responded to me? “The expectations are where you
read monthly bank statement have now been replaced by almost real time expectations of
interaction. They expect you to be consistent across channels in the experience that they have
with you. They need to be able to pick up where they left off when they ‘rein the shopping carton
line or they're in your store or when they're calling your call centre. The experience has to be
seamless and connected across channels.

Customers also want to know not only what you sell but what you stand for, what is your
mission, what is your purpose, particularly millennial customers are very interested in doing
business with companies that connect with what they believe in, what their values are. Related
to this is the idea that customers are saying to you, "Don't just talk to me about your products.
Speak to me about my concerns, my passions, my pain points. Address the problems that I’m
trying to solve for myself, the goals that I want to achieve. Tell me how you fit into my life as
opposed to selling a product to me. "In terms of privacy, what customers are saying to us is,
"Okay, I’ll give you my data; but what do I get in return? Give me value for my privacy. “Privacy
is not a religious debate. It’s an economic debate. I need to get something in return. When I give
Amazon information about me, I get back personalized recommendations and offers. When I
rate movies on Netflix, I get personalized recommendations. When I give Google my location, in
return I get a more precise map. Lastly, customers are saying, “Recognize and reward me for
my loyalty." Whether it’s Starbucks with their loyalty program or whether it's Amazon which is
really making difference with its Prime program, which is leveraging as a loyalty program,
customers are saying, "My relationship is worth something to you.

Reward me for the business that I do with you. “These high customer expectations are born out
in a survey of customer behaviour, where eighty percent of customers are saying that the
experience that they have a marketer, with a brand is more important t or as important as the
product that they’re buying. A similar number are saying that they expect their needs and wants
to be understood. And that they will take their business elsewhere if they don't value the
relationship or the experience that they have with the firm. So, what does this mean for
marketers? What does this mean for brands? It means that you have to interact with customers

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now on a personalized basis. You have to figure out how you're going to personalize your
communications and your interactions and the experience that you create for your customers.
You have to make sure that you create content that is meaningful, that is relevant for what
customers are trying to achieve. You have to lead with content they care about, not products
that you want to sell them. You have to reduce the latency of response, the cycle time between
a customer posing a question to you or a query–whether it’s done online or offline, and your
ability to not only respond, but to close the loop with them, to solve their problem. You need to
breakdown organizational silos. Customers are not marketing customers, sales customers or
support customers. They expect all your functions and all your departments to work together. I
like to say that customers don’t give a damn how you’re organized.

Your customer experiences need to be Omni channel. There is no such thing as a digital
customer experience and a physical customer experience. Customers will choose the channel
that they want to interact with you and you need to make sure you are where they expect you to
be and that your channel share connected. You need to make sure that you’re continuously
innovating in your products, in your service, in your customer experience. So, that staying at the
same level or having the same experience over time is no longer an option for you. And as far
as data and privacy and trust are concerned, these have to be made a priority. Customer
transparency, what are you going to do with their data, How are you going to use that
information? It has to be made transparent and you have to respect the covenant that
customers have made with you.

Video 2 (05:48) - Defining Modern Marketing

Having understood the changed customer expectations, let’s now reflect on what we mean by
modern marketing, or how marketing is going to look different in this new digital world. So, let
me offer a definition of what I consider to be the way we need to think about strategic marketing
in a digital world. I think of modern marketing as a discipline, a process, and a function that
connects brands with customers to drive business results. And it does this by blending insights
and creativity with automation and analytics. So, what's really interesting here are two aspects
of this definition? First, that marketing’s role is really about building connections between
customers and brands and companies and organizations. Notice that I'm not saying products–
I'm saying brands. It’s building that relationship. It’s not about transactions; it’s about
relationships. And marketing is increasingly being held accountable for business results. It’s not
enough to drive perception. It’s not enough to drive awareness. It’s about actually driving the
revenues and brand outcomes.

The other thing that’s really interesting about this definition is how marketing works. And how
marketing works is–there's a left brain aspect to it, which is the use of technology to drive
marketing automation, to use analytics to make smarter marketing decisions. But it still has the
right brain aspect which is grounded in customer insights, grounded in creativity. So, from this
standpoint, I really think of modern marketing as a whole brained discipline. As a 360 degree
view, where on the one hand, marketing has to be powered by data–and by the way, we have
more and more data about customers–different types of data, more volumes of data. So,

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marketing really has to become a data-intensive discipline. Marketing’s also scaled by
automation. What does that mean? The speed at which...the scale at which we can respond can
only be done by automating marketing processes. Automation are not enough though. We also
have to optimize these processes in our marketing initiatives through analytics and increasingly
through the use of artificial intelligence.

And in order to be able to run marketing at this speed on this scale, we need to also change the
way we make marketing decisions. So, we have to move faster in our marketing decision-
making, which means it has to be accelerated by agility. So, on the left brain–on the analytical
side, marketing is data-intensive. It is powered by automation, optimized with analytics, and
accelerated with agility and agile decision-making–but wait, let’s not forget the traditional
strengths of marketing, which is the other aspect of modern marketing. You have to begin all
marketing activity with customer insight. It has to be grounded in powerful customer
understanding and insights. It has to focus on a customer passion or a customer pain point. You
need to lead with a problem that you're solving for a customer, or a goal that you’re helping
them achieve, or a job that you’re helping them do. Marketing is fuelled by content. If we do
automation, the fuel that we feed into that automation engine is content. And content is very
different from what we used to think about as creative.

Creative used to be–maybe we do six ads in a year. Now, we may have thousands of pieces of
content we need to create across many different channels in many different forms. And one
more aspect that’s really important in modern marketing on the creative side is storytelling. We
need to communicate stories–the stories of our brands, our people and our companies. So,
that's the way that I think about strategic marketing or modern marketing in a digital world. It’s
really a combination of data analytics and automation with insights, content, and storytelling.
Now, I want to make a very important observation about the way that I want you to think about
marketing in a digital world. It is way beyond digital marketing. This is not digital marketing we
are talking about. This is much more. I’m thinking about marketing in the digital world as
marketing that is a–powered by content, powered by automation, and powered by analytics. So,
my definition of modern marketing–the view that I have of modern marketing–is it is technology-
powered marketing that allows you to move faster, make smarter decisions, and have richer
customer engagement. So, yes, digital marketing is a part of what we do in marketing in a digital
world but it's more than simply the way we engage. It is also about the technology and the
content that powers the decisions that we make. That scales our processes and that makes
customer engagement richer.

Video 3 (05:14) - Marketing Transformation: Journey Down a Five-Lane

Highway
When we've understood this vision of what modern marketing needs to look like, we realize that
it's not going to be a transformation that we can accomplish overnight. From where we are
today and how we practice and think about marketing to where we need to go is a journey. It’s a
journey of transformation. And the way we are going to organize this journey is to think about it
as a highway with multiple lanes. I find the journey metaphor and the highway metaphor useful

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because really thinking about where we are coming from to where we are going to. So, as we
think about this marketing transformation journey, I want to highlight five lanes or five aspects
along which this transformation needs to proceed. With the important observation that it is a
simultaneous progress that we need to make across these lanes because only one aspect will
not be enough.

So, what are these five lanes in marketing transformation? The first is how we think about
customer engagement and content. And here the shift is from thinking about exposing
customers to our marketing communication to engaging with them on a continuous basis. So,
that shift is a shift from exposure marketing which really is focused on taking your marketing and
broadcasting your communication to customers to actually having them raise their hands and
engage with you. The second shift is how we think about data and analytics. And here we need
to move from a transactional view of customers to a holistic view of customers. What does that
mean? The transactional view of customers emphasizes the business that they have done with
you, the transactions that are in your CRM databases, their history of purchases that either you
collect from the stores or you collect from your websites.

Holistic customer view in contrast combines this transactional data with interaction data, with
behavioural data, with social data, with location data to form a much richer picture and a profile
of your customer. So, that's the shift in terms of customer data and analytics. The third shift is
how we actually do marketing execution, the processes that we use for marketing execution.
And here the shift is from your traditional waterfall approach to marketing where we have large
campaigns that take long periods of time to execute, and this idea comes from traditional
product development product development. So, we call it waterfall marketing. The new way of
thinking about marketing is agile. Agile marketing that requires you to improve the speed, the
predictability, the adaptability of your marketing activity, and to think in two week to four week
intervals as opposed to longer durations. So, that's a shift in terms of process and execution.
The fourth lane or the fourth shift that we will talk about is the people and the organizational
marketing.

And here the changes that we need to move from a classical functionally organized marketing
where you have the different departments and marketing that deal with advertising, with
branding, with market research, and so on to a customer centric organization that is organized
around the customer journey, the customer experience and also adds the new capabilities that
we need in terms of content management, analytics, and customer experience management.
So, that's the fourth shift, people and organization from function-centric to customer-centric.
Finally, underlying all of this change is technology. Marketing is becoming much more of a
technology powered and technology intensive function. So, the fifth shift is the way we think
about platforms and automation of our marketing function. And here the change is that today we
have silos of automation in our marketing activities. We may have digital marketing. Within
digital marketing, we may have community management. We may have content management.
You know, we may have different function-specific systems and here the shift that we need to
move towards is a unified system of engagement. One platform that allows us to engage with
customers across functions, across brands, across products, and across the different channels.

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So, this is the journey that we are going to be on as we think about evolving into a modern
marketing organization. And we'll be talking about these five lanes as we develop our thinking
further in this module.

Video 4 (05:15) - Lane 1: Engagement and Content Part 1 - The Three

Principals of Engagement
So, let's begin with the first shift that we talked about, and that is engagement and content. The
idea's very simple here–that instead of leading with your product in communication to
customers, you need to create content that is timely, that is relevant and that is useful. So,
engagement marketing is the idea that we lead with content that helps customers solve
problems or achieve their goals. Putting the customer first as opposed to your product first. A
very simple mantra that I like to think about in this context is ask not what you can sell, ask how
you can help. So, the three principles that I think about in engagement marketing.

First be useful. Create content that is useful. Today, customers have lots of opportunities to
engage with a variety of marketers and brands. You may be thinking about return on
investment, but they're thinking about return on engagement. What do I get if I consume your
video? If I read your blog post? If I download your white paper? How do I become richer,
smarter, you know, be more entertained, be more famous? What do I get out of it? That’s the
idea of return on engagement. Your content has to be useful. That’s your first principle. Second,
make it human. Instead of talking like a brand, you need to speak like a human being. Your
content needs to have a unique voice and a human voice. You need to find your voice and then
be true to your voice. And by the way, very often it is also human beings having that
communication with customers. I love to say that there is no such thing as B2B or B2C–
business to business or business to consumer, it's human to human. People want to connect
with people inside your company. It’s person to person. Third principle is make it about them.
Interestingly, the more you talk about yourself, the less people will respond to you, will share,
and spread your story. It’s got to be about customers. Let’s take a few examples. Creating
useful content–if you're a Bombay Sapphire and you’re trying to sell alcohol–well people use
alcohol to make cocktails. So instead of saying here's how good, you know, my gin is–Bombay
Sapphire gin and this what it's made of. And this is, you know, the grain that we use. They
actually come up with site, that is, cocktails and mixology. So, it's really helping customers to
solve a problem which is how do I make a great cocktail and the result, they have a million fans
on Facebook. You know? And twenty thousand followers on Instagram. Valspar, a paint
company, instead of saying here's how good my paint is, they're saying, "I’m going to create for
you a virtual painter.

And that virtual painter is going to allow you to pick colours and see what your room looks like
by uploading your pictures and then seeing it in context of the paint. “So, as you think about
your products and your services, ask what are your customers trying to achieve? What are the
job that they’re trying to do? Let’s make it useful. Making it human. You know people want to
know the people behind your company. I love this brand of rum called Sailor Jerry. And Sailor
Jerry was a tattoo artist. He was a fascinating fellow and he had a very colourful history. So,

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Sailor Jerry website about the alcohol company doesn't talk about the product at all. It really
talks about the history and what different tattoos mean. It’s absolutely fascinating and for a small
niche brand that you probably never heard about, it has six hundred thousand fans on
Facebook and a hundred forty thousand followers on Instagram because something interesting
that Sailor Jerry has to tell them about tattoos.

Or whether it's Xbox, where they talk about the person behind the Xbox, who designed it or
developed it. Now, if you're an Xbox fanatic, the person who built the Xbox One is like a God for
you, and you want to know about them. Making it human. Making it about them. Let’s say you
are Sanofi, which is a pharmaceutical company that is in the diabetes business. They don't talk
about their diabetes drugs and medications and therapies. Instead, they've created a whole site
called the diabetes experience. In fact, it's a different brand called the DX or the diabetes
experience. And the mission of this site is to improve the quality of life for people living with this
disease because diabetes is a chronic disease. It's something that you have to live with. They
want to be the trusted source for advice, for information. So, it's not organized in terms of types
of therapies and types of drugs, but instead, it has things like health, nutrition, lifestyle,
technology trends, dating, and relationships–all for people afflicted with this disease. So, this is
making it about them. Making it about the disease not about the therapy.

Video 5 (08:34) - Lane 1: Engagement and Content Part 2 - Return on

Engagement
So, as we think about this idea of return on engagement which is the value that customers get in
engaging from you, let's break it down into the types of ROE or return on engagement that you
can provide customers. I’m going to talk about six types of return on engagement–Informational
value where you provide information that is useful for customers; convenience value–Making
their lives easier by engaging with you; social value–Making them more famous, increasing their
social capital in their social circle; Entertainment value–Simple gamification and entertainment
me, make it funny; Inspirational value–Inspire me. Tell me what the future looks like, what the
future holds. Show me a better place or a better world, and community value–which is, connect
me to people like me who share my passion or share my pain points in life. Let’s look at a few
examples. In informational value, I think a really wonderful example is what Procter & Gamble is
doing with dental care.com. It's the site that they have created for dentists. Now, what they
traditionally used to do with engaging with dentists is to send sales people to offer sample sand
to talk about their products. But instead, Procter reversed this approach by asking dentists
doctor, "Where does it hurt? How can we help you? “And the doctors said three things.

One, "Help me to stay current and to stay certified", because doctors need to take continuing
medical education. Second, "Tell me what's going on with dental research, so that I can know
about the latest procedures, the latest devices, and new ways for me to make money. Third,
"I'm a good doctor, but I’m a lousy business person. Help me run my business more effectively.
I don't like the administration stuff–the finance, the accounting, the HR", and so on. That’s what
they offer, on this site, dental care. Dentists can take all their continuing education courses
online for free. They have access to dental journals and dental research and they have access

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to a whole suite of curated practice management tools. As a result, a hundred and fifty thousand
dentists are using this site every month. So, how can I help you? Community value–Lego ideas
is a wonderful example of how you can create value for your customers by connecting them with
the community of likeminded people. So, in the Lego community, people can check out
proposals. They can vote on their favourite products and they can submit their own ideas. And
what Lego guarantees is that if the idea generates ten thousand views within a year, they’re
going to review it; and they've actually come up with products based on the big bang theory of
the yellow submarine that will actually crowd source from customers.

So, Lego enthusiasts love to connect with each other because this is the community of fans.
Convenience value–If you're in a business where customers value convenience and time, like a
Starbucks or a Walgreen’s or a Shell, you know, or a 7-eleven or a McDonald's–You really need
to think about how can I create convenience value for my customers? Walgreen’s offers
wonderful example of this through their app which is the third most downloaded app for retail in
the app store, fifty million downloads, five million monthly active users. Twenty-one percent of
their retail prescriptions that they fill are refilled, are initiated through digital channels. And what
is very interesting also about the Walgreen's app is that more than a quarter of their app users
are older than fifty-five years.

And this segment only makes up nine percent of smartphone ownerships which means that
they’re actually getting to customers who traditionally don’t engage with apps, why? Because it's
useful. Because the prescription by scan allows you in one click to be able to get your
prescription refilled. Entertainment value–I love the idea of Target and what it did with its
Christmas wish list. They created an app that would allow youngsters–young kids to go in and
send a wish list to Santa. It was a 3D game–an animation game. And what is interesting about
these kids is they are too young to buy but they're not too young to create a wish list. And by
creating a gamified experience for them over a hundred thousand wish lists were created and
ten thousand new Target. Com accounts were created. Now, this does a couple of things. First
of all, it drove incremental sales potential of almost a hundred million dollars but in addition, it
gave Target very valuable insights into what kids had at the top of their wish list for Christmas.
So, it's marketing intelligence all through creating a game that they find entertaining. Social
value–I'm learning from the Chinese smartphone companies. I worked with Xiaomi and I worked
with One Plus. And they have really revolutionized this idea of using fans to do the marketing for
them–by celebrating the fan. In fact, their founder has even written a book called <i>The Xiaomi
Way</i> which really talks about customer engagement strategies that were responsible for
their success. They have fan meet ups. They have user groups and they’re really recognize and
reward the people who contribute to their forums. This is creating social value because they
want to associate themselves as being popular within this network or ecosystem of Xiaomi
customers. Inspirational value–Corning is a company that is probably in your life today but you
don't know about it because it makes the glass that goes into your iPhone and your smart–the
Android smartphones. So, they wanted to inspire people and to make them more aware of
what–how Corning was playing an important role in their lives. So, they created a video in 2011
called A Day Made of Glass.

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This video was watched by over twenty five million people. It really talked about futuristic
applications of glass in medical, in retail, in automotive applications. And in fact, it was so
popular that they made a sequel called The Day Made of Glass 2. And, this has actually driven
and increased their business results as well as their brand awareness. So, in summary, we
talked about a number of return on engagement strategies. Six different ways to engage with
your customers. Let me conclude by offering when you should choose which return on
engagement strategy. You should use information value if you're selling complex product. Let’s
say, you're a business to business technology company. It’s a long sales cycle. Customers
require a lot of education. So, there's a lot of value in providing them with this information that
helps them along their decision journey. Convenience value, if you're in a service business
where customers value time efficiency and convenience. A hotel, a fast food chain, quick
service restaurant, you know a pharmacy, a gas station. Social value is important if you have a
base of fans who are passionate about your product and where people like to promote
themselves to other people in the community. Think of Xbox, think of smartphones, think of
Apple. You know where you have a network of passionate people and people want to be
perceived as important within that social network.

Community value makes sense if you are dealing with a product or a category where customers
really want to engage with other customers with whom they share with their passion or their
problem. Let’s say, you're Nike and in sports equipment or let's say you are in the Alzheimer’s
therapy business. People may share a passion. They may share a problem but the important
thing is they want to connect with each other. Let’s say, you're a first time parent. You want to
connect with other parents. So, those are examples where you want to create community value.
Inspirational value–makes sense if you're trying to create top leadership. If you're talking about
the future. Very valuable technology companies that are trying to connect not only with
customers but with the influencer, with media, and with future employees. So, if you're a Ciscoor
you're a Microsoft or you're a SAP or you're a Corning, you’re a Hewlett-Packard, this is where
inspirational value can help. So, in summary, return on engagement is a way for you to think
about how you can make your engagement valuable to customers. And we've talked about
different principles of engagement strategy as well as six different return on engagement
strategies that you can employ for your business, your product, and your brand.

Video 6 (05:51) - Lane 2: Data and Analytics Part 1 - Types of Data

The second shift that we want to talk about is the way we think about and manage customer
data. And here are the big change that's happening, and it's an exciting change, is that the
traditional transactional data that we've had about customers now can be combined with new
sources of data, which is primarily unstructured data. And this is data like social data, you know,
and data like location data, interaction data, that can create a 360degree view of the customer,
and once you have these new data sources combined with your traditional data sources, you
can create a personalized customer experience that’s richer. So, let's look at the customer data
tree, you know, the type --types of data that we have about customers. Traditionally, we knew
about their demographics, we knew about their psychographics, and we knew their purchase
behaviour.

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But now we know intentions. We know what they’re sharing online. We know advocacy and
referrals. We know the conversations that they’re having about brands and products, and, most
importantly, through mobile devices, we know their location. So, as we -- let's dive deeper into
each of these data sources to see how this forms a richer picture about customers. So data that
we've started with is demographic, right? We knew age, gender, zip code, income, and
education. This is what I would call table stakes. So, this is, of course, traditional data that you
have about your customers, it’s the most common type of data that we use, and it is where we
start, right? So, we always need to start here and then we lay it on other data types.
Psychographic data become popular in marketing. You know, some twenty to thirty years ago,
where the idea of combining demographic data with personality, with attitude, with interest, and
with lifestyle, that is typically self-reported by customers, is a way to forma richer picture,
because it tells you not only about who they are, what they care about, what they’re passionate
about. So that's psychographic data. Now let's look at some newer types of data, intention data.

So, intention data is interesting because it tells us what customers are trying to accomplish, and
this is new data which we can infer from their online behaviour. Because when there is a plan to
take an action, you can start inputting their planned activities, their planned events, and the
products that they desire. So, it's useful for understanding what customers want to accomplish
and, by their online behaviour, gives us rich insights into intentions that we didn't have before.
Behaviour data. Now behaviour data was available in a narrow way in the traditional marketing
days, and that was based on transactions. So behaviours, in terms of transactions, only one
type of behaviour. There are now new types of behaviours, which is things like, how people are
interacting with each other, what touch points are they using to interact with you, you know,
what is the pattern of interaction they have on your website or with your mobile app? Those are
all behaviours, and the nice thing about behaviour is it’s truth as opposed to attitude or opinion.
Behaviour doesn't lie. Location data are an entirely new form of data that we have. It’s the
physical location of the customer and the value of a physical location is it provides you
contextual understanding at a point in time of what's happening with them. This is something
that we call moments in time or micro moments. And knowledge of the customer’s location can
trigger a contextually relevant promotion or reward that may be very, very valuable at that point
in time. For example, if you are on a highway and you're driving with two kids in the car who are
hungry and a McDonald's is located two miles away, and they're able to offer a promotion only
within that two mile radius, that becomes a very valuable contextual promotion that would have
had no value for the same customer if they were ten miles away. Alright. So, location gives us
information because it can improve the offline customer experience that brands have because
you can understand behaviour patterns in a geographical context. Referral data, this is, again,
new.

This is reviews or ratings or rewards that --that customers can be offered or you can analyse
how they’re dealing with. And referrals are now being used by a number of companies online to
create rewards for customers who promote them, who advocate for them, or who bring in new
business for them. The earliest example of this, of course, was what Drop Box did many, many
years ago when they created an award for people who refer other customers, and now, of

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course, this becomes standard practice for a lot of companies. Brand and product conversation
data. This is, again, very rich data that is coming through social channels. It provides a rich
understanding of what people think about, how they perceive brands, how they perceive
products, and, as we discussed future modules, we're going to talk about how you can mine
social data to come up with richer insights, and this is the brand and product conversations.
Sharing data, this is, again, a very unique phenomenon in the digital world where we can look at
what customers are sharing, what content are they sharing with other people, you know, what --
what --it can help you to identify brand advocates, and it can help you to understand how your
branded content is traveling through virility, through sharing, it can help you to understand word
of mouth behaviour, what customers are sharing, why they share it, and who they share it with.

Video 7 (05:46) - Lane 2: Data and Analytics Part 2 - Customer Data

Integration Frameworks
What we need at the end is a customer data integration framework that combines the structured
data and the traditional data sources–whether it is your CRM database or other customer data
sources that you might get from third parties, like Experian or Axiom, with unstructured data that
is streaming in through your social channels. Now, the primary way in which you unify this data
is through a customer ID, which is the primary key that combines the unstructured data with the
structured data, the online data with the offline data. So that you can track that one customer as
they go through all of these interactions with you. Once you have all this in a data lake, you can
form a 360degree customer view with that customer ID, and you can drive analytics and
execution across all the different channels.

So, that's the customer data integration framework–structured data and unstructured data
combined through a customer ID into a common data infrastructure; a 360 degree profile that is
then analysed and used to drive marketing execution. So, in this 360 degree customer profile,
what sorts of information might there be? There might be a customer–let’s call her Sandra. We
might know about her, a lot of things. She’s visited to our website, she clicked to a twitter page,
she visited a community, she watched a video that we call, Several Reasons to Buy Our
Product. She called our call centre and had a conversation. Notice this is offline, she
downloaded some trial software, she is an online advocate, and, by the way, she's a parent and
she's active in parenting forums. So, you can see, these slices of information that we have on
this customer–when you unify them, you get a much richer understanding of this customer
profile. And I'd urge you to think about what are the ways in which you will see patterns across
these different types of data to be able to interact with Sandra in a more meaningful way. That’s
the data discussion.

Now, data is a fuel that we put into the analytics process. So, what is marketing analytics?
Marketing analytics is the analysis of qualitative and quantitative structured and unstructured
data related to customer perceptions, customer preferences, and customer behaviour that we
use to drive brand and revenue outcomes for the business. So, essentially, data is the raw
material and marketing analytics is the factory that produces insights that we can use to drive

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revenues and brand outcomes. So, marketing analytics involves, first of all, collecting and
analysing the customer data and transforming it into reports and predictions. What it involves? It
involves predictive modelling, it involves marketing experimentation, it involves automation, and
real-time presentation of offers to customers. And the data that we get from marketing analytics
is coming now–as you can imagine–from a wide variety of sources, from point-of-sale devices of
retail stores, from physical store visits, from a website, from a browser, from a mobile
application, from set top boxes, from digital advertising interactive billboards, from sensor that
we are placing in stores, from interactive kiosks. So, that's where all this data is coming from,
and this is what it is used for. Let’s take a quick example to understand how this holistic data
can actually help us to innovate, to create new offering that we couldn't do before.

So, take the example of Allstate Insurance. So, they have created an application called
DriveWise. DriveWise is an application that you can turn on as you're driving your car, and the
reason you do that is because you get incentives on your insurance premiums. This allows
Allstate to create an entirely new category of products called UBI–Usage-Based Insurance. So,
Usage-Based Insurance can price insurance not based on who you are, but how you behave
and what context you're in, what route you're taking today, are you speeding? Did you do hard
braking? Did you corner too quickly? What were the road conditions? What were the weather
conditions? What time of the day were you driving? Was it rush hour, or was it off peak? Were
you distracted? Are you looking at, you know, your text messages? So, this allows all state and
other insurance companies’ new ways to price insurance. You can actually create a product
called pay-as-you-drive, which is that your insurance premium will depend on how well you
drive, alright? See how you drive, pay as you go. If a world of the future where you might have
autonomous cars, you might ensure yourself by the mile when you're on an Uber trip or you're
an autonomous car. So, if you think about how insurance has been sold in the past, it has been
based on traditional transactional data, which is how many miles you've driven, what your claim
history is, and your demographic profile.

But now, by combining location, speed of travel, and other environmental conditions, you can
create underwriting models that, in some cases, can allow you to provide between thirty and
seventy percent discounts to the better drivers. So, this, in summary, is the way that we are
changing the perspective to data and analytics. We have talked about the different sources of
data and how the customer data...data tree is growing and new sources of data are emerging,
and we've talked about how this data is used to create a customer data integration framework
and ultimately to create new products and new offerings for our customers in the digital world.

Video 8 (06:52) - Lane 3: Process and Execution

What we want to talk about is how we actually do marketing, how we execute our marketing
decisions. And here, the challenges that customers are moving faster, there’s more data, there’s
more content, there’s just more for us to do. So, we need to move faster, and we do this by
adopting agile marketing. And agile marketing is the application of agile principles to the
marketing process so we can increase the speed, improve the predictability, and improve the
adaptability of the marketing function.

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And we can also create a culture of experimentation and moving quickly. So, let's contrast
conventional marketing with agile marketing. In conventional marketing, everything is big. We
have a big strategy, then we will do a test with customers, then we execute the campaign for
several months, and then we measure the results, and then we decide what we're going to do
for our next big strategy. A typical large campaign like this, in conventional marketing, might last
a quarter, it might last six months, it might last a year. Usually it's done sort of on annual or, at
best, a quarterly basis. What we do in agile marketing is we squish all these steps into one
cycle. The plan, design, launch, and measure is all done within a two to four week sprint, or fast
execution cycle. So, we don't do anything big. In fact, I call Agile the death of bigness, because
what we are doing is, we’re picking up a small chunk of a marketing initiative, which is the little
strategy. We’re running like hell in a cross-functional team, in a two to four week sprint. We’re
testing and executing and then taking feedback from the market and then doing our next sprint.
So, we break our marketing execution down into micro strategies, rapid iterations, with small,
cross-functional teams. The perspective in agile marketing actually reverses the way we think
about customers.

Let’s take a very simple example. Let’s say you're a bank, and you’re being asked by your boss,
“How do I grow the business? “So, maybe you start with saying, "Grow the business." So, have
a revenue bowl, I need to grow the revenues 10%over the next twelve months. In order to do
this, we need to acquire fifty thousand new customers for our wealth management business. In
order to acquire fifty thousand customers, I need to send out five hundred thousand direct mail
messages through email, and then I designed this message, I give it to the agency, I talk to
legal and compliance, then I execute and I see what happens. By the way, this sounds like
something we do day in and day out! This is the most logical way that we would think about
growth. But here's the problem, where did we start here? We started with, "How do I grow the
business? “Did we talk about the customer? Do they want to become a wealth management
customer? What are the problems that they actually have? So, in the Agile marketing approach,
we always start with the customer story, or a customer goal, or a job that they want to get done.
So, I start with asking, as a customer, I want to be able to do this so that I can accomplish this
goal. So, what I would do in agile is i would go talk to a customer and say, what are your pain
points? What are your problems? So, maybe I come up with the idea that they want to retire,
they’re forty two-years-old, but they don't know if they are saving enough. And they've got this
401K plan, they’ve got this tool retirement plan, you know, and the 401K is what we call
retirement plans in the United States, but it might be called different things in other countries.
So, I don't know if I’m saving enough money. My retirement plan is a black box. So, what do I
do? I come up with an insight. The insight is maybe I gave you a tool that will help you to
estimate how much saving you need to make in order to reach your retirement goal. That’s an
interesting idea. But I don't launch this in one step. What I do is, in the first step, a sprint, I will
take inputs from customers for a savings forecasting tool. In the second sprint, I’ll actually build
a quick prototype of the savings forecasting tool. In the third sprint, I’m going to test this tool with
a beta group of customers, quickly adjust with their inputs. In the fourth sprint, I'm going to now
test the communication plan for this forecasting tool that I have built. And in the final sprint, I
might actually get some ideas that can I link this savings forecasting tool with an automated

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savings plan. The result may be that the customer says, "I'm saving and investing more
because I know I'm taking the right steps to retirement. “So, two key ideas I wanted to highlight
in this quick example.

One, we always start with a user story or a customer goal or a job to be done. We don't start, it's
outside it, it's not inside out. Second, we break marketing execution into a series of smaller
initiatives, each of which ends with a presentation of a concept to a customer or a product to a
customer, and getting feedback so that we can adjust, we can adapt, and we can innovate. So,
the Agile marketer mind-set–I learned this from Facebook when I was teaching them, you know,
sometime back. I saw a big poster in the room which said–Move fast and break things. I said,
"What does this mean? “I said this really epitomizes our mind-set of...of experimentation.
That...that if we are going to move fast, we will make mistakes, and its okay to make mistakes,
it’s okay to break things. Because, you know what, you’re going to break smaller things. You’re
going to have smaller mistakes. I love to say, don’t fail at scale. Alright, don't scale failure. What
you want to do is to run iterations very quickly so that you can test, learn, iterate, and once
you've fixed, then you can scale. The Agile marketer mind-set is not only about experimentation
and...And...and taking risks, but it’s also about collaboration, being, you know, making sure that
we work together, we’re transparent, we’re empowered, and that we work in a cross functions to
achieve the outcome. The five key pillars are, we start with what's important to customers, we
create small teams that are empowered and cross-functional, we create a very rigid and very
defined process for experimentation, and the process of time-boxing our initiatives. We create a
culture of data and experimentation and learning from failure, and we also make sure that we
are communicating frequently, efficiently, and openly. So, this, in summary, is the way we need
to think differently about how we execute marketing through an agile process.

Video 9 (09:04) - Lane 4: People and Organization

There's an old saying in design–Form follows function. So, if we are changing the way we need
to operate, we also need to change the structure of how we organize marketing, and the people
and the skill sets that form our marketing organization. So, we need to do two things in people
and organization. In terms of organization, we need to design our organization around value
creation roles for customers. And in terms of people, we need new skill sets in content
management, in analytics, and customer experience management. So, the problem with today's
marketing organizations, as you look across companies, is it's organized in terms of functional
silos. We have marketing, sales, e-commerce, product, market research, customer support,
customer care, and so on. But this is not how customers want to interact with us.

They don't care about our departments. And it's really frustrating for customers when they call
you and they have a question, and the support person says, "Well, that’s not my department, I
need to transfer you to another department. “They want to interact with your company and your
brand as one unified interface. So, in the organization of the future, in a customer-centric
organization, there’s no such thing as marketing, there's no such thing as sales, there's no such
thing as care. All employees are sellers, all employees are marketers, and all employees are
customer support. Now, what this requires you to do is to have a platform for customer

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experience management that unifies the functions, as well as a process and a...and a mind-set
that puts customers first and allows the different functions to collaborate and how they interact
with customers. There are three principles that I like to think about for the modern marketing
organization.

First, you should operate like consultants. What does this mean? Think about all the different
functions that you are collaborating with, and that you need to actually help. Product marketing,
you need to help them with messaging and go to market strategies. With field and partner
marketing, you need to help them manage customer accounts and drive customer and partner
campaigns in the field. With product management, you need to help them on customer
requirements, with customer wireframes related to your products. So, that's the first thing–think
about yourself as a consultant for all the functions that you connect with. But you need to
execute like scientists. So, this is the science of marketing where you're driving execution of
products and services and partner campaigns. When you're executing the PR and the analyst
relation strategy in partnership with your product, services, and partner teams, when you’re
providing access to marketing and business data, customer data across the organization. Third,
you need to think about new assets and capabilities. Assets, content assets, platform assets,
the content editorial calendar, and the capabilities, the digital campaign playbooks. Marketing
needs to create the campaign playbooks for execution across the company. Also, new
capabilities in agile marketing techniques, and making sure these get adopted across the
organization. So, from an organizational principles standpoint, think like consultants, execute
like scientists, and continually build new assets and capabilities.

So, the modern marketing organization actually will consist of five key areas. Corporate
marketing, marketing operations, content management, product marketing, and field marketing
or demand generation. So, if you think about this–there are three dimensions of marketing that
traditionally we’ve talked about, which is corporate marketing, product marketing, and field
marketing, but we’re adding two new ideas to it–marketing operations, which is the
management of marketing campaigns and execution, and content management. So, in terms of
corporate marketing, this is the marketing that sits at the centre of your organization at the–
above the business unit level. They key idea here is that you’re driving consistency of your
brand identity and your corporate voice.

The responsibility of the corporate marketing is to develop the visual language for the brand, the
brand bookend the style guidelines, to make sure that your content voice is consistent across all
of your assets, to make sure that you're building the corporate marketing and brand marketing
collateral and campaigns, and also to build capabilities for market intelligence, customer
intelligence, to support the product and the field and the sales organization. So, that's the
central marketing or corporate marketing role. Marketing ops is a new role. So, this is really the
management of marketing campaign, marketing automation, and analytics. So, here are–this
part of the marketing organization works closely with the sales organization to build and manage
the marketing funnel, to build the marketing automation system for lead management, and for
pipeline management, to drive marketing analytics, including building the marketing automation
platform, integrating it with the customer relationship management CRM data, web analytics,

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and business intelligence. And also to drive the development of web and mobile applications,
content management systems, and the content calendar. So, this is really the operations
function, and the analytics function, which is a new capability. Another new capabilities is
content and communication. You actually need a central group whose responsibility is to create,
curate, and disseminate content across the organization. So, their role is to define the persona
that of the different customer segments that you're going to be dealing with. Understand what
the customer journey looks like, and then to make sure that you’re sourcing content from
different sources for each persona, and for each stage in the buying journey, from internals well
as external sources. They’re also responsible for managing the content calendar for publishing,
developing the overall plan, timing the execution and publication of content. And they also need
to manage the communications related to product launches. So, this is a new function where
you bring oversight of content and dissemination and creation of content across the entire
company to support all the different groups.

The next function in marketing is the product marketing organization. Now this is a traditional
role that has existed, but product marketing–and this is really the idea that product marketing
supports all the marketing initiative related to products, along with the field marketing and the
sales organization. So, this involves building the value proposition and messaging framework for
your products, driving marketing initiatives and collaboration with product management and field
and sales organization, building a bill of materials, establishing, very importantly, the customer
advisory boards and customer advocacy programs, and maintaining a dotted line relationship
into field marketing team to make sure that you're marketing is being localized if you're a global
organization. Demand generation and field marketing is the last function that we need in
marketing, and this is the marketing that drives leads and drives alignment between sales and
marketing. So, in this role, what you–marketing organization works really hand-in-hand with the
sales organization to decide the demand generation goals, and to generate what we would call,
marketing qualified leads, or MQLs, for the sales organization. So, they also work with the sales
organization for events, for local markets in collaboration with the sales organization. So, this is
really the role that connects the marketing organization to the sales organization in the field.
Putting this altogether, I really think that the marketing department should be reinvented and
rethought of as a customer department. In fact, the chief marketing officer, I believe, should be
renamed the chief customer officer. And the chief customer officer is a role that really is
responsible for insights, for analytics, for driving the sales funnel in collaboration with sales, to
manage the customer-facing IT and analytics function, and to drive oversight over the customer
experience. So, this is a visionary view of what the chief marketing officer, or the marketing
organization needs to look like in the future, and the kinds of capabilities in people that you're
going to need as you redefine your marketing organization as a modern marketing organization.

Video 10 (06:46) - Lane 5: Platforms and Automation

The final shift that we want to talk about, the fifth lane in our marketing transformation journey is
platforms and automation. The days of running marketing in a manual, you know, gut-oriented

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way are over. You simply cannot scale your marketing activities unless you embrace
automation. The other thing that you need to do is, besides embracing automation, is to make
sure that your automation systems are unified. That they're connected across all of the functions
and all of the channels. Let me explain what the nature of the problem is and why this approach
to automation needs to change.

What happened in the old days was the brands owned the conversation. You put yourself at the
centre, and then you had all your marketing functions and then you had your channels, and your
marketing conversations were radiating outward from the brand. But what's happened today is
customers own the conversations. By the way, customers will have conversations with or
without the brand being involved. This is customer-to-customer communication. And the other
that's happening is that this is happening in a plethora of channels. The last time I counted,
there were about twenty-six different social networks. The Twitters and the Pinterests and the
Winesand the Facebook and LinkedIn and so on, so forth. So, these conversations are, A, being
driven by customers, and, B, happening across a variety of channels. And they cut across
different departments that you think about. There’s no such thing as a forum that only talks
about complaints. The customers talk about anything that they want to talk about. So, what have
we done? We have created tools for automation. We’ve created tools that manage
communities, tools for digital advertising, tools for customer market intelligence, tools for e-
commerce, tools for customer care, and, in our pursuit of agility in automation, we’ve actually
created a mess. Because we've gone from one form of silos, which is functional silos, to now
automation silos. We have siloed automation tools.

And, in fact, in a large company you can find several hundred tools in marketing and sales that
don't talk to each other, so we've really created a challenge and a problem, particularly the
larger your company, the bigger this problem is, that we’ve got silos of automation. So, the front
office today, by the way, the front office is how you engage with customers, is the brand then
going through different functions, which go all the way from PR to sales to marketing to
customer care, and even recruiting, by the way, because recruiting and connecting to potential
employees, not just customers, and then this is being orchestrated through a number of
channels. This creates a fragmented customer experience that’s fragmented in two ways. It’s
fragmented across functions, from marketing to sales to care, is fragmented across channels,
offline, online, different digital channels. And there is a publication that actually publishes on an
annual basis the marteck landscape, the marketing technology landscape. And there are literally
over six thousand different marketing automation point solutions that are out there. And this is
not going to work, this is not going to scale. So, you need to stop and ask yourself, how can we
create a unified customer experience management platform that allows us to do two things.
Communicate across channels and collaborate across silos.

Collaborate across silos is inside the organization, communicate across channels is outside as
we engage with customers. So, you need to build a stack, a platform, for customer experience
management, that has cloud-based capabilities for marketing, advertising, customer and market
research, e-commerce, and customer care. So, this is what we call the marketing cloud, the
advertising cloud, the research cloud, the commerce cloud, and the care cloud, all based on a

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common set of core components that make sure that your content assets and your customer
related information is all in one unified platform. So, for example, if you look at what Microsoft is
doing in terms of the customer experience automation, this is a company that I worked with
closely over the years. They talk about creating systems of nurture, advertising automation,
marketing automation, sales automation, commerce automation, and service automation. That
really is organized around the customer journey, all the way from an anonymous customer to a
known customer to a marketing lead, to a sales qualified lead, to a customer to a winback. So,
we need to think about these systems of nurture that align themselves with the customer
journey, and notice what's not in here, there’s no function in here, and there's no channel in
here. It's really the customer journey is the organizing construct. So, the tools that they’re using
for each of these nurture systems, they include sprinkler and Adobe for managing their
advertising. Adobe for managing their marketing analytics cloud. And for sales and e-
commerce, of course, they’ve acquired LinkedIn, so they're using that quite effectively, as well
as they have their own e-commerce tools, and for customer service and customer engagement,
they’re using the sprinkler system. So, the point is that you need to build for yourself a stack,
which we are calling a marketing technology stack that is a unified system of engagement. This
is a very important idea.

A system of engagement is a unified platform for the front office to manage the customer
experience, and the system of engagement involves these systems of nurture that focus on
these five areas, advertising, marketing, sales, commerce, and customer service. A good
example of this customer, or marketing stack, is the stack that Cisco has created, and it's
illustrated in this rather complex diagram. Where they have a unified view that is customer
centric, and it organizes all the marketing tools in a unified framework that forms their stack. So,
it's important for every company to think about what they're marketing stack is going to look like
with the emphasis on creating a unified system of engagement that connects across channels
and across silos.

Video 11 (02:05) - Summary: Five Lanes in Marketing Transformation

So, let's summarize the marketing transformation journey in terms of the five key shifts, or what
we call the five lanes on the transformation highway. We talked about engagement and content,
how we engage with customers, and the shift there is moving from exposing customers to our
marketing communication to actually engaging with them using content that they find relevant
and useful, that gives them some value in engagement. We talked about the shift in data
analytics from just merely looking at transactional customer data in our CRM systems to actually
unstructured data, location data, interaction data, adding all of these new capabilities to create a
holistic customer view that can be used to drive innovation in our messaging, as well as creating
new products. In terms of process and execution, we talked about the shift from sort of the big,
heavy approach of waterfall marketing to a much more rapid, time-boxed, and agile approach
that requires creating marketing initiatives that are much more time bound, smaller, and
iterative, and create an experimentation mind-set in your organization. In terms of people in
organization, we talked about two key ideas.

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One is to actually think about your organization from a customer-first perspective and to do
away with the silos that divide our organization. And, secondly, we talked about some new
capabilities you need to build, such as content management and marketing operations and
analytics. And, lastly, we talked about the underlying platforms and technology that's going to
support your marketing in the future, and here the key idea is to be able to connect across
channels and coordinate and collaborate across silos by creating a unified system of
engagement that manages the entire front office and how you engage with customers.

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