As the 2nd wave of the pandemic tapers off slowly, we collect a few stories from multiple Marketing teams of various organizations (B2C as well as B2B) showcasing the initiatives they adopted to connect and engage with their customers on 2 fronts: 1) Use of Digital Mediums, 2) Content Revitalization.
Combine these experiences together and we will probably have a template of a ‘CMO’s New Arsenal’ – right here on Outside In. In this Part-I article, we focus on the use of Digital Mediums, while the Part-II article next week will cover snippets on the importance and emergence of Quality Content
CMO’s Priorities Today
Build a unique and persistent connect with their customers
Identify ways to deliver regular and relevant communications to maintain a customer’s engagement with the brand
1st Idea in a Nutshell – Use of Digital Mediums
The use of Digital Enablers and growth in Customer Experience (CX) initiatives is in sync, because a lot of CX is now delivered digitally
88% of overall Online growth over the last year is coming from Brand-owned websites – primarily because their experience is much superior compared to Marketplaces
Brand websites are moving from Product-led proposition to Purpose-led proposition – Data is not used only for transactions but to become part of customer’s lifestyle
Online Promoters have arrived decisively now – who will guide you through the whole purchase process – Conversions can go upwards of 80% compared to 3% for non-guided purchases – in the Mobile category
Bosch Point of View: Focus is on Digital-only Spends going forward and improving Content & Packaging; Lead Management is a future area of interest, apart from building a long-term Loyalty program and a larger Consumer Forum
Max Bupa Point of View: Consumer fundamentals don’t change over time – Brand Trust continues to remain important. However, there are Organizational changes are a plenty – Distribution, Communications, Etc. where there’s an increased use of Digital Mediums. Also, there are now enough efforts on Data Analysis. For then, the unification of Data for CX Platforms is a big theme going forward
Chatbots are probably the most misunderstood AI/ML tools today – with organizations trying to gauge the right balance between Automation and Personal Connect. For instance, Max Bupa studied 120-odd customer service activities they have in detail. Then, they evaluated the quantum and impact of Mundane tasks vs. Personal-connect tasks, before deciding what to automate and what not to
Sense and Sensibility are needed for which Automation Use Cases are needed. For instance, deciding on the use of video calling solutions vs. a chatbot – These balances are needed by CMO, with a focus on Cost/Impact
The creation of a Single View of a Consumer Journey is an important dimension for deciding on any Marketing Automation Initiative. On Lead Management, the 3 key considerations are: 1) CAC – across Platforms, 2) Quality of Leads, 3) Attribution
Let’s now look at some industry use cases that not only showcase ways of using digital mediums for effective marketing, but even serve as a roadmap for impactful initiatives going forward…
Using Digital Mediums for Effective Marketing
1) Doing B2C Better – The Mercedes India Example:
20% of Mercedes sales now come from their Online Channel – via a holistic Omnichannel proposition. They were selling pre-owned cars online earlier. However, post the Covid pandemic, they added the entire new car portfolio online (in early 2020) and they expect this number to rise steadily in the days to come. Here’s more insight into their complete ‘Contactless Operations’ Ecosystem:
Transparency to the Customers: Availability of On-road price of vehicles and information on online offers for customers, involving all the Mercedes-Benz dealers in India and aggregated by ‘Roadster Inc. on their Brand Website
‘Live Mercedes-Benz Video Consultation Studio’: Launch of an industry-first consultation studio for personalized and interactive e-demonstration of Products – where Exclusive time slots were offered to customers. Post which, all interested prospects were further serviced by a dealership as requested by the prospect
‘Online Sales Concierge’: A digital Service that is operational from 10 am to 12 midnight
‘Merc from Home’ Campaign aimed at empowering the customer at every stage from home: explore, consult, purchase, delivery and customer service. The focus of was on the ease of purchasing a vehicle using Digital Tools. Check out the #MercFromHome video at: https://www.shop.benchmarkinterkrafts.mercedes-benz.co.in/how_it_works
Digital Customer Service Support: Customers stay connected from home during vehicle service, Online appointment booking and estimates and Car care at doorsteps
One Stop Solution: Enablers for smart finance and booking of car and other VAS Services
Click and Customize: Customers and prospects can select any model and variant of their choice, while having the option of configuring their cars as per their taste from a wide range of options for color, accessories etc.
One may debate that such a proposition can be made possible only for luxury categories like Automobiles. However, we have an example of a similar proposition in the Value Retail category as well to illustrate the fact that every business needs to truly contextualize the use of Digital Mediums for their own ecosystem.
Spencer’s Retail has started an Assisted Sales initiative – where customers can call the Store(s) and place their Orders, to get them home delivered via Uber Cabs. In their experience, the Frequency of visits by customers went down, but the Average Bill Values went up. And, Winter Category products like Tea and Coffee went up as compared to Cold Drinks and Ice-creams during the pandemic. Also, their Ready-to-eat Categories went up as the pandemic lockdown dragged on and the fun about cooking at home went down. Their original Demand Forecasting plans went for a toss, but early Indicators and JIT capabilities helped them adapt quickly
2) Digitization a B2B Business – The Schneider Electric Example:
3 main changes were seen by Schneider, which can be an indicator of things to come in the B2B domain:
Move from Product-only businesses to Product and Software/Solutions Business
Reducing Time-to-Market drastically (like IoT Solutions)
Huge push in Digital Services that delivers recurring Revenue Model
Apart from these ‘internal-organizational’ changes, on the customer-facing side, they have seen:
Digital Engagement/Product Launches have increased exponentially
These Digital launches have changed the way they interact with their Customers – with a focus not only improving Costs but also to increase Revenues
This has meant investments in the way they have done Marketing to their Customers:
Personalization/Persona-based Marketing is being used across long customer life-cycle of 6-8 months – from real-time to right-time of a buyer journey – with a blend of Martech as well ‘Ed-tech’ initiatives
There’s a rise in the number of Digital Sellers. This has led to increased Packaging and Analysis of Data and sharing it with the Salesforce – to right sell to the Customers – and thereby Influence sales even while they may be working from home
Orchestration Efforts: 70% of digital initiatives are going to be focused on Digital Customer Experience (DCX). Shift in view from Customer funnels to measuring NPS/CSATs. Digital marketers will grow from being CMOs to CTOs (Rebel Thought)
Here’s more insight into their Digital ‘Platform’ Offering:
The platform hosts a wider range of Schneider Electric’s B2B products, including its entire home products range. This is an effort to help its partners and customers source products digitally, without manual intervention and providing easing access especially in the current scenario
Added 5000+ products in their eShop in 2020 – with access to even MSME customers. Check their website here at: https://shop.schneider-electric.co.in/. They have an existing relationship with over 10,000 MSMEs as customers and are engaged with them all on a day-to-day basis and have options for Export Orders as well
Flexible payment options & affordable pricing – in partnership with many fintechs & credit cards
They have a unique chat box and online support, where customers can directly engage on the chat box. They can also solve all of their commercial queries
They have an Express Delivery Service – whereby they can deliver products in 3-4 hours, within a radius of 100km in the top cities. To make this happen, they have built a robust supply chain. They have a physical presence in over 200 cities, and via distributors
Persona-based Experience: In the e-shop, one can customize his shopping experience, whether he is a home owner or a business customer. There are three personas — Industrial Retailer, Electrical Retailer and the MSME. For example, if one clicks the MSME segment, there are a range of products, such as contactors, MCCBs, power supplies, pilot lights, Easy9, signalling units, etc.
Product Support: Each product line has a unique specification sheet. One can also download all of the test certificates, as required. One can also go to the Schneider support center and reach out to the customer care, if needed. One can also look for an electrical installer. One can explore the Fab Homes bundle, the Unica Pure with patented child-proof guarded sockets, etc. One can go to the shop by category, select and search. And, so on
Multi-channel Approach: They have a two-channel approach. One, there are distributors, who are integrated within the Schneider web platform. They also have a large number of Tier-2 sellers for whom unique customized programs have been developed
Reviews/Ratings: There is also functionality that can be used to rate the Partners
In the days to come, their detailed catalogs with price lists, online quotations of requirements will further be accentuated by Virtual Experience Zones
We may even see concepts like Schneider Electric Malaysia’s Mobile (WeChat) Storefront coming to India – maybe on Whatsapp. They haven’t said this; I am visualizing it myself
On similar lines, Insurance Category became a Pull product from a Push product almost overnight – especially at the Moment of Truth of Hospitalization
Aditya Birla Insurance quickly adapted from being a B2B2C company – with a huge component of Distributor Network & Sales – to adding an element of B2C component themselves. They quickly integrated all their Digital Initiatives and Services, like Chatbots, Whatsapp, Etc. for a seamless omnichannel Sales and Service work flow. They started an ‘Online Customer Council’ where they talked to customers about what is happening in their Daily lives and understood their Priorities. They used these insights to shape an initiative on ‘Health Buddy’ and are working on use cases around Voice Bots& Vernacular Initiatives
In Conclusion
The use of Digital Mediums is a potent tool in a CMO’s arsenal now, as these examples have shown us, across a variety of Organizations and Industry Domains. However, Data more often than not tells you the what, not necessarily the why. To truly contextualize the use cases for adopting digital enablers for your organization:
Take a 3-year view of the digital mediums you plan to adopt,
Carefully evaluate the Build vs. Buy decision,
Build your own database and customer analysis capabilities,
Focus on Ease of Adoption
References and Sources
1) My Notes from ET MarTech Summit and IAMAI Marketing Conclave
3) Mercedes India Contactless Operations: https://www.mercedes-benz.co.in/passengercars/the-brand/press-releases/mercedes-benz-india-redefines-digital-sales-frontier--launches-a/mercedes-benz-india-redefines-digital-sales-frontier--launches-a.html
4) #MercFromHome video: https://www.shop.benchmarkinterkrafts.mercedes-benz.co.in/how_it_works
5) Schneider Electric B2B Digitization: https://www.dqindia.com/schneider-electric-expands-e-commerce-platform-offering-india/