Lecture 9

Question 1

Marketers need to be able to access their data to measure

Answer 1

digital marketing activity

Question 2

Most marketers will have website analytics and their own business analytics tracked in

Answer 2

either homegrown or third-party tools.

Question 3

In more advanced cases, a data warehouse can pull together data from a wide array of systems to

Answer 3

make insights and reporting more accessible.

Question 4

Data Sources

Answer 4

Transaction Database

Web Analytics Tool

In Store Tracking

3rd Party Pixels

External Sources

Question 5

Analysis Tools

Answer 5

Statistics

Modeling

Visualization

Ad Hoc

Reporting

Question 6

Languages

Answer 6

Map Reduce

R

Python

SAS

SQL

Question 7

Platforms

Answer 7

Relational

Hadoop

Hive

Spark

Transactional

Question 8

Insights & Analysis Ecosystem

Answer 8

Data Sources

Analysis Tools

Languages

Platforms

Question 9

90s Competitive Advantage

Answer 9

• Operational skills used to confer long-term
advantage

• Leaner manufacturing, higher-quality
products or superior distribution would outrun
competitors

Question 10

New Competitive Advantage

Answer 10

• New source of competitive advantage is
customer centricity

• The ability to deeply understand your
customers’ needs and fulfilling them better
than anyone else

Question 11

What is Customer Centricity?

Answer 11

Business strategy that sits at the intersection of what the customer truly needs, the purpose that the brand wants to bring to life for its customers, and the way in which the business commercializes its relationship with its customers.

Question 12

Customer-centric companies are growing revenue faster than their competitors and are creating

Answer 12

personalized, experiential value

propositions based on data-driven insights

Question 13

By 2020 there will be more than 50 billion connected devices (~7 per person), making enough data available to

Answer 13

better understand people and transform companies into customer-centric

Question 14

Business Drivers of Customer Centric Growth

There are 10 drivers within 3 dimensions that over-performing companies adopt to deliver customer-centric growth

Answer 14

Customer Obsession Drivers

Insights Engine Drivers

Total Experience Drivers

Question 15

Customer Obsession Drivers

Answer 15

Drive customer obsession throughout the
organization, taking the voice of the
customer into account in every business
decision (internal and external)

Drivers

• Embrace by all
• Leadership priority
• Collaboration
• Experimentation

Question 16

Insights Engine Drivers

Answer 16

Evolution of Insights & Analysis from support role to fully integrated business partner that has a seat at the leadership table, driving strategy and real-time execution

Drivers

• Leading role I&A
• Unlocking power of data
• Critical capabilities

Question 17

Total Experience Drivers

Answer 17

Seamless, consistent and tailored
brand experience that goes beyond
functional benefits and is built on a
clear purpose for why the brand exists

Drivers

• Purpose-led
• Data driven customization
• Touch point consistency

Question 18

Benchmark in-house results against a robust global cross-industry dataset to

Answer 18

quantify the revenue growth potential of addressing each driver.

Question 19

How To Achieve Customer Centricity

Answer 19

• Customer Centricity requires data
• However, having troves of data is of little value, the ability to transform data into insights about consumers’ motivation and to turn those insights into strategy is the real differentiator
• This alchemy requires innovative organizational capabilities called “insight engine”

Question 20

The Importance Of The Insight Engine

Answer 20

Its vital role was revealed in the Insights2020 study led by Kantar VermeerI, which involved interviews and surveys of more than 10,000
business practitioners worldwide.

Of the factors that were found to drive customer-centric growth, none mattered more than a firm’s insights engine, embodied in its insights and analytics function.

Question 21

Unilever Case

Answer 21

• Shows how the insight engine works at the consumer giant and its characteristics
• Unilever owns 400+ brands, including Dove, Knorr, and Axe, which generated $60 billion in revenue in 2015, with underlying sales growth of 4.1% for the year

• Performance at those levels requires full engagement of the company’s 169k employees, who span functions from supply chain and R&D to marketing and finance. But as we’ll review, it’s the
insights engine, manifested in the firm’s Consumer and Market Insights (CMI) group, that underpins Unilever’s customer-centric strategy

Question 22

Unilever New Strategy

Answer 22

• In 2016 Q1, Unilever’s CEO announced a new initiative to shift
resources to local markets around the world, clarifying
accountability and making marketing teams more agile globally
and locally
• The initiative was based on the insights collected by the CMI group,
which were discussed with the board and led to changes in the
organization and mindset

• CMI identified growth in consumers seeking brands that align with
their cultural identity and lifestyle, allowing local firms to grow faster
and strengthen their competitive position

• Unilever’s new initiative showcases the type of a high-level advisory
role that leading insights functions are increasingly taking

Question 23

A decade ago, I&A was sort of strategic
involvement by a customer intelligence
operation was almost unheard of and was typically a

Answer 23

reactive service unit reporting to the marketing function, fielding marketing requests, and producing performance management reports

Question 24

Over time, I&A has been shifting from merely

supplying data to

Answer 24

interpreting it, distilling insights about consumers’ motivations and needs on the basis of their behavior.

Question 25

Driven by the imperative to become customer-centric, leading firms are now completing the transformation of market research groups into

Answer 25

true insights engines with | a fundamentally strategic role.

Question 26

Characteristics of Superior Insights Engines There are 2 broad groups:

Answer 26

1. Operational Characteristics | 2. People Characteristics

Question 27

1. Operational Characteristics

Answer 27

- Data Synthesis - Independence - Integrated Planning - Collaboration - Forward-looking Orientation - Affinity for Action

Question 28

2. People Characteristics

Answer 28

- Whole-brain Mindset - Business Focus - Storytelling

Question 29

Until recently, large firms had an advantage over smaller rivals because of the scale of their market research capability. Today what matters is the ability to

Answer 29

connect the dots and extract value from the information

Question 30

__% of executives at over-performing firms said that their company was skilled at linking disparate data sources

Answer 30

67%

Question 31

To improve proficiency in using data, firms are creating

Answer 31

dedicated data groups, under senior executive leadership, to consolidate, manage, and analyze data and distribute it throughout the organization

Question 32

For any insights group, the first challenge is to

Answer 32

integrate massive and disparate sets of both structured and unstructured data

Question 33

Superior insights groups sit decisively | outside

Answer 33

marketing and other functions and often report to someone in the C-suite (i.e. CEO, Chief Strategy Officer, or Chief Experience Officer) ``` The i2020 research shows that insights leaders in over-performing organizations report to these senior executives more than twice as often as their counterparts in underperforming organizations (29% vs 12%) ```

Question 34

What is the driving force behind strategy | development and execution?

Answer 34

Business and brand planning cycle This is where decisions are made, resource allocation and budgeting formalized and performance monitored against goals

Question 35

For I&A to help drive strategy, their | activities must be aligned during the

Answer 35

planning cycle with those of strategic | planning, marketing and other functions.

Question 36

Over-performing firms usually include insights leaders at __ stages of the planning cycle, especially in retail

Answer 36

all key

Question 37

Over-performing firms work __ with other | functions and customers

Answer 37

closely

Question 38

Emphasis on collaboration is evident particularly among tech start-ups, but also among

Answer 38

giants such as Alibaba and Google

Question 39

In traditional market-research functions, the | emphasis isn’t so much on collaboration as on

Answer 39

being an effective service provider

Question 40

Insights functions have a distinctly different role | that emphasizes

Answer 40

shared goals and partnerships.

Question 41

Over-performing companies are 3x as | likely to embrace

Answer 41

a culture of experimentation than underperformers. The i2020 research shows B2B firms in general are more experimental than B2C companies (40% versus 13%)

Question 42

To get a handle on the future, market | researchers traditionally focused on

Answer 42

the past

Question 43

Most firms today have shifted substantial | attention to studying

Answer 43

the present, monitoring consumers in real time to anticipating what they’ll do next. The most sophisticated are pushing harder, using predictive analytics and other technologies, along with new organizational structures, to both anticipate and influence behavior.

Question 44

The most influential insights functions focus as much on __ as on data

Answer 44

strategy • Indeed, i2020 found that 79% of insights functions at over-performing companies participated in strategic decision making at all levels of the organization • CMI’s action orientation manifests itself in two broad ways: in its specific recommendations to other functions and in the recruitment and training of “action-oriented” employees.

Question 45

Whole-Brain Mindset

Answer 45

• A culture that breaks from the past is needed • Today’s insights teams must think holistically, exercising creative, right-brain skills • High-performing organizations are particularly adept at integrating the creative and analytics approaches • Achieving balance between right and left brain thinking requires a 2 pronged effort: recruiting whole-brain talent and encouraging the mindset across the existing organization

Question 46

Business Focus

Answer 46

• Historically, organizations’ right-brain thinkers (i.e. marketing creative teams) have not naturally focused on the business side • i2020 found that respondents from highperforming firms were much more likely than those from low-performing firms to believe that their insights functions were business-focused

Question 47

Storytelling

Answer 47

• The i2020 research imparts a final lesson about what makes for a strong insights engine: good storytelling • At over-performing firms, 61% of surveyed executives agreed that people in their insights functions were skilled at conveying their messages through engaging narratives

Question 48

Four Building Blocks

Answer 48

Access Sources Develop Strategies Execute in Real-Time Engage Partners

Question 49

Building an Insight Engine Requires Alignment

Answer 49

Structure People Tools Processes

Question 50

People

Answer 50

``` People with critical competencies such as business acumen, storytelling and a whole-brain mindset, that embrace a culture of experimentation and crossfunctional collaboration ```

Question 51

Structure

Answer 51

Insights as an independent function mirroring Marketing, with clear accountability, resulting in less debates

Question 52

Processes

Answer 52

Clear processes that enable teams to play an integral role in the business planning cycle, turning data into action and shifting s from hindsight to foresight

Question 53

Tools

Answer 53

World-class tools enabling teams to effectively synthetize data and act as a guardian of data quality / reliability