Friday Jan 10, 2014

5 Secrets to Marketing and IT Collaboration Success

Today’s post is from Jack Newton, Dir. of Outbound Product Management & Strategy for Oracle Social Cloud. He shares results from the new Oracle, Leader Networks and Social Media Today study on Marketing/IT collaboration inside the enterprise.


Collaboration white paper coverIf you’re hoping that congress comes together in 2014, it’s probably a lost cause.


But it can be a different story with Marketing and IT leaders in modern organizations.


In Oracle’s Socially Driven Collaboration study, 26% of Marketing and 36% of IT leaders report that they collaborate frequently – with Marketing leading the charge. While that’s great, it’s disappointing that 20% of Marketing and a whopping 38% of IT leaders collaborate rarely or never.


For those who don’t collaborate, they’re holding themselves and their organization back.


In fact, 74% Marketing and 71% of IT leaders collaborating more report that they are more effective as professionals. With the business benefits that can come from collaboration, the C-Suite has a vested interest in creating a strong culture of collaboration, too. Some of the benefits include:

  • Stronger/more compelling marketing messages (54% Marketing; 51% IT)
  • Faster speed to market with products and services (47% Marketing; 43% IT)
  • Greater adoption of the products or services offered (40% Marketing; 42% IT)
  • Reduction in project costs (23% Marketing, 36% IT)
  • Fewer defects in products or services offered (26% Marketing, 27% IT)


How can you bridge the collaboration gap?


1. Get C-Suite Buy-in for Shared Goals

When it comes to the quality of collaboration between groups, 57% of Marketing and half of IT respondents classify their level of collaboration as being only “adequate.”


Turn the tide by tapping into the widespread belief among executives about the potential for social to transform business. An MIT Sloan Management Review executive study shows that 70% of senior leaders indicate that social business presents an opportunity to fundamentally change the way their organization works.

2. Understand the Perspective of Your Peers

For those who do see the benefit of collaboration, it can be frustrating to get the cold shoulder from the other team. More Marketers (17%) report that while they see the benefit, their peers in IT are not receptive.


Why is this a problem? A Lightspeed Research study shows that 25% of customers who complain on Twitter or Facebook expect a response within an hour. If the organization isn’t set up for social customer service, bring IT’s experience with organization-wide technology rollouts and Marketing’s experience with social together to fix it.


3. Be the Role Model

Over the past 12 months, 41% of Marketing and 38% of IT leaders say they have engaged in more collaboration. This means there’s a lot of room for improvement, since the majority of Marketing (56%) and IT respondents (60%) report no change.


Don’t be the anchor that’s weighing the company down. Kick things into gear by picking one point of customer pain or a business priority that has both IT and Marketing implications, then reach out. Be persistent.


4. Find Meaningful Metrics

Pick two or three initiatives that are near-term so you can show impact sooner rather than later. Use the list above for some ideas.


5. Carefully Choose Tools and Technology

Your new bargain basement bike may be able to get you to work now, but it’s not going to be very helpful when your job moves across town… in the wintertime… in the middle of a polar vortex.


One-off social tools are similar. The cost incurred when adopting short-term solutions and then switching to integrated tools can potentially be more than the money saved.


According to one IDC analyst, “aggregating into a new user experience (UX) or augmenting an existing one requires social tools to be integrated with other enterprise systems and needs to be embedded inside the work processes to get the most value.”


Want to learn more?


Download the study to see more findings and read interviews with social media leaders from Whole Foods Market, Chubb and Shell. They share tips and lessons learned that could be applied to almost any business on the journey to becoming more collaborative.


Tuesday Dec 03, 2013

6 Reasons Marketing and IT Might Be “Frenemies”

The two areas being most dramatically affected in the modern transformation of the corporation is marketing and IT. What’s more, the changes involve a forced coming together of two of the most unlikely of compatriots. It can be awkward.


A “frenemy” is someone you’re technically friends with, but the friendly part exists mostly on the surface. Neither is exactly cheering on the other. Here are some reasons marketing and IT are set up for such a relationship.


1. There’s someone or something making them play nice.

Frenemies usually don’t come together by choice. They’re pushed into it by circumstances or some authority figure. In this case, business changes imposed by socially empowered consumers have CEO’s fully expecting their marketing and IT teams to unite and meet these new challenges…like it or not.


2. They’re usually very different people.

Think about company holiday parties of the past. Did the marketing people hang out with the IT people? Didn’t think so. There’s often a different vibe, a different language, and business goals are viewed from a different angle. No longer can each refer to the others as “those guys over in marketing or IT.”


3. There’s resentment over who has the most.

Who has the biggest budget and the most control? The Gartner prediction of January 2012 is oft repeated; the average CMO will have a larger IT budget by 2017 than the average CIO. IT is being eyed for cost containment, not investment. IDC says about 2/3 of tech spending for marketing and rising already comes from marketing. Add to dropping IT budgetary needs the fact that tech strategy is increasingly being led by the CMO, and it can be a tough pill to swallow.


4. Fear of being the odd person out.

Larry Weber of the W2 group points out CIO’s are realizing they may soon basically be working for the CMO as the tech arm of marketing. An Economist survey of C-suite execs found 57% expect their IT function to change significantly over the next 3 years, 43% said their company will increasingly use IT as a commodity service, and already 1 in 6 CIO’s have no real role in setting IT strategy. The choices are to fight (hoping the CEO won’t side with the department driving lead gen), or follow Dell CIO Andi Karaboutis’ lead and make your primary concern “how do I enable this enterprise so they have what they need?”


5. Lack of trust.

CIO’s think marketing promises things without consulting them and without good business reasons. 36% of CMO’s say IT doesn’t deliver fast enough. An Accenture survey came right out and showed the CMO and CIO don’t trust each other. CMO’s are thinking of IT as a provider, not a partner. So convinced are they that IT works against their interests, they go around them. 45% of marketing execs prefer letting marketing employees handle data with no involvement from IT. IT thinks marketers don’t “get” data integration, standards, privacy or security.


6. Everybody around the bad relationship stands to get hurt.

There’s a reason collaboration between marketing and IT is imperative. When it’s not happening or when it’s being done poorly, the customer experience (and thus business) suffers. Nobody wins…except maybe the competition if they’re more unified.


How can marketing and IT move beyond “frenemies” and into a healthy, productive relationship? The good news is younger workers in both aren’t as keenly aware of the divide. New marketers are not opposed to embracing tech. New IT types embrace facilitating lead gen and want to be agile, internal innovators in the process.


Rapid7’s CIO Jay Leader points out, “In the old days, you couldn’t get anything out of a computer unless you came through me or my organization. Those weren’t the good ol’ days.” If marketing and IT can agree on primary business goals, on what’s needed to reach them, and the parameters to do so securely, the foundation exists for real collaboration.


Part 2 of Oracle’s study with Social Media Today and Leader Networks focuses on collaboration between marketing and IT departments, and how enterprise organizations are faring in that respect. We invite you to sign up to be alerted to the paper’s release.


@mikestiles
Photo: Martin K, stock.xchng

Friday Nov 15, 2013

Big Data Crucial to Seeing the Social Marketing ROI Light

LighthouseEveryone calls for the definitive ROI of social marketing, and while we can debate if such a beast exists, we should all agree Big Data is the path to it. In fact, if anyone can show me the ROI of marketing in the dark in 2013, please do.


Remember when people with clipboards in malls tried to take you away to a small room and ask you questions for an hour in exchange for a modest gift certificate? That’s the kind of ambush it used to take to find out what customers liked.


Look at us now. Millions all over the globe are on multiple social platforms voluntarily giving us vast amounts of information about their preferences and behaviors every second. With CRM, we also know what they bought, when they bought it, at what price, and whether they contacted customer service with a problem. They’re giving brands tons of info we claimed we wanted. In return, we act like we have no idea who they are.


To be fair, it’s a lot more info than most brands were ready for. 90% of the world’s data was generated in the last 2 years alone. 80% of that data is unstructured, meaning legacy systems were never intended to deal with it. But that unstructured data is what gives us the kind of customer insight that makes the relevant, personalized, one-on-one customer experiences increasingly essential for modern business possible. So we should probably get serious about it.


Being unable to spot trends, not knowing what your target audience is into, not being able to predict future likely behaviors or product needs, not knowing which customers can influence others in your favor, not knowing which conversations you should join, not knowing the history of a customer who reaches out to you for help, all of that leaves you in the dark.


You know what happens in the dark? You can’t see anything and you miss a lot.


If you’re not ready for big data now, the future won’t be getting any easier for you. Computer Services Corp. says the volume of data produced is expected to be 44 times greater in 2020 than it was in 2009, 75% of it being created by individuals. Even if all you care about is SEO, the major search engines are placing a renewed emphasis on the unstructured data represented by social.


So how can there possibly be no ROI in knowing your customers, listening to them, responding to them, making them undyingly loyal, retaining their business, and having them market you to their peers? Big Data is what can get you there. And that’s only going to happen if the CMO and CIO collaborate on data integration connecting social data to enterprise and marketing data.


@mikestiles
Photo: stock.xchng

Tuesday Oct 29, 2013

Are You Afraid of Each Other? Study Shows CMO’s/CIO’s Missing Benefits of Collaboration

Scared guyRemember that person in school you spent months being too scared to talk to?  Then when you finally did, it led to a wonderful friendship…if not something more. New research from Oracle, Social Media Today and Leader Networks shows marketing and IT need to get over whatever’s holding them back and start reaping the benefits of collaboration.

See the details on the Oracle study

Back in the old days of just a few years ago, marketing could stay on their side of the building, IT could stay on their side of the building, and both could refer to the other as “those guys.” Today, the structure of organizations is shifting from islands to “us,” one integrated body where each part knows what the other parts are doing, and all parts work together in accomplishing job one…a
winning customer experience.


Ignore that, and you start losing. Give your reluctance to change priority over the benefits of new collaborations, and you start losing. You’re either working together and accelerating forward or getting in the way of each other’s separate agendas and grinding down…much to your competitors’ delight.


The study reveals a basic current truth: those who are collaborating in marketing and IT report being more effective, however less than 1/3 report collaborating even “frequently.” In other words, this is obviously a good thing, so we’d better not do it. Smart.


The white paper, “Socially Driven Collaboration,” set out to explore how today’s always-changing digital, social and mobile landscape is forcing change across the enterprise, whether it’s welcomed or not. Part of what it found is marketing and IT leaders are not unaware of what’s going on and see their roles evolving. And both know the ability to collaborate more effectively now exists. And of those who are collaborating, over 2/3 say they’re “more effective” professionally because of it.

Collab slide


Yet even if you don’t want to take the Oracle study’s word for it, an August 2013 Accenture study of 400 senior marketing and 250 IT executives revealed only 10% think CMO/CIO collaboration is at the right level. There’s a lot of room for improvement here, and not just around people. Collaboration is also being called for across processes and technologies.


Business benefits of such collaboration cited in the Oracle study include stronger marketing messages, faster speed-to-market, greater product adoption, faster discovery of product and service shortcomings, and reduction in project costs. Those are the benefits you will cheat yourself out of by keeping “those guys” at arm’s length and continuing to try to function in traditional roles while modern business and the consumer is changing around you.

“Intelligence is the ability to adapt to change.” –Stephen Hawking


@mikestiles
Photo: istockphoto

Friday Jun 07, 2013

The Dynamic Duo of the Enterprise

heroNo, I’m not talking about Kirk and Spock.  The Dynamic Duo of the enterprise is the CMO and CIO. No positions are evolving more or faster, brought on by the perfect storm of social, mobile, and data. To triumph, the CMO and CIO must partner as never before.

In the AdAge webcast, “Capitalizing on Marketing & Technology: Social’s Powerful Impact on People, Processes & Technology,” Oracle VP Product Strategy Erika Brookes and Forrester VP & Practice Leader David Cooperstein discussed how changes to these two positions are altering the entire organization’s structure and operations.

Social changed communication. It’s how people now interact, get informed, express themselves, and connect to brands. Facebook has a billion users, Twitter over 200 million, Pinterest over 50 million and Instagram over 100 million. Since 2010, social site visitors went from 58 to 70%. 45% Liked, followed or became a fan of a brand, with the average Facebook user Liking 9 of them.

The 2nd revolution, the shift to mobile, is happening quickly and right now. By the end of the year, there’ll be more mobile devices than people. Mobile is at 55% penetration in the US. More time is spent on smartphones than is spent online. And 55% of social consumption happens on mobile.

So, technology is how marketing is executed. And marketing/CX are technology’s key raisons d’etre. That’s why the enterprise needs heroes, the Dynamic Duo of the CIO and CMO working in tandem, each bringing their unique strengths. Our Dynamic Duo has to go up against:

POW! The Data

80% of data is unstructured and is literally growing by the second. Emails, blogs, Facebook posts, tweets, pictures, videos, online purchases, customer inquiries…all trying to teach us what our customer wants, if we’d just listen. In 2012, 2.5 quintillion bytes of data were created daily. That’s a 1 with 18 zeros after it.

Time to flash the “C-signal” into the night sky, calling on our Dynamic Duo to determine what data is relevant and actionable, institute systems to gather and process that data, and integrate that data holistically across the enterprise to every customer touch point. They should be fighting for a better “customer-centric” tomorrow, where data leads to exceptional products and flawless customer experiences.

BAM! Internal Disruption

Marketing and technology are converging, a trend that will become the new “normal” in just a few years. In October 2012, Oracle & the Economist released the survey “Cultivating Business-led Innovation,” which found companies with cross-collaboration, taking advantage of disruptive technologies, are the most successful.

Who should instigate these organizational changes? In a perfect world, CEO’s recognize the disruption and see the opportunities therein. Some companies have named Chief Digital Officers. It might stick, or it might be a transitional role given how fundamental “digital” is to business (like having a Chief Copy Machine Officer). Others suggest the formation of a Marketing Technology Office (MTO).

Aside from technology, there are cultural changes wherein roles and habits long and comfortably held get upended. The CIO must understand the speed of marketing is different than the speed of tech maintenance. The CMO must understand tech, period. It can no longer be “those guys in the other department.”

BOP! Social ROI

Ever get the feeling social is held to a higher ROI accountability than many other marketing channels? That’s because it often is. Some use it as an excuse not to deal with the very real changes we’re seeing. At Oracle, we socially enable enterprises such that social is not just a marketing channel, it’s integrated throughout the organization both externally (customers) and internally (employee collaboration).

On the marketing side, perhaps it’s more realistic (and fair) to measure social ROI on whether users were moved to the next step, not necessarily straight to the cash register. Remember that bit about data leading to exceptional products and flawless customer experiences? That’s the kind of thing that should kick the ROI question to the curb.

So cheer on our Dynamic Duo, for they are agents of some of the biggest, fastest changes in business the world has ever seen.

@mikestiles
Photo: Julien Tromeur, stock.xchng

Friday Nov 09, 2012

How Big Data and Social Won the Election

Woman VotingThe story of big data’s influence on the outcome of the US Presidential election is worth a good look, because a) it’s a harbinger of things to come, and b) it’s an example of similar successes available to any enterprise seriously resourcing integrated big data, modeling, and data-driven execution on all assets, including social.

Obama campaign manager Jim Messina fielded a data and analytics brain trust 5 times larger than 2008. At that time, there were numerous databases from various sources, few of them talking to each other. This time, the mission was to be metrics-centered and measure everything measurable, and in context with all the other data.

Big data showed them exactly what they needed to know and told them what to do about it.

It showed them women 40-49 on the west coast would donate big money if they got to eat with George Clooney. Women on the east coast would pony up to hang out with Sarah Jessica Parker. Extensive daily modeling showed them what kinds of email appeals, from who, and to whom, would prove most successful in raising cash, recruiting volunteers, and getting out the vote. Swing state voters were profiled and approached with more customized targeting that at any time in history.

Ads were purchased on specific shows watched by the targets, increasing efficiency 14% over traditional media buys. For all the criticism of the candidate’s focus on appearing on comedy and entertainment shows, and local radio morning shows, that’s where the data sent them to reach the voters most likely to turn out for them.

And then there was social. Again, more than in any other election, Facebook was used for virtual, highly efficient door-to-door canvasing. Facebook fans got pictures of friends in swing states and were asked to encourage them to act. Using that approach, 1 in 5 peer-to-peer appeals led to the desired action.

Assumptions, gut, intuition, campaign experience, all took a backseat to strategy shifts solidly backed up by data. Zeroing in on demographics likely to back the President and tracking their mood daily literally changed the voter landscape. The Romney team watched Obama voters appear seemingly out of thin air. One Obama campaign aide said, “We ran the election 66,000 times every night.”

Which brings us to your organization.

If you’re starting to feel like the battle-cry of “but this is the way we’ve always done it” is starting to put you in an extremely vulnerable position, you’re right. Social has become a key communication tool of the 21st century. Failing to use it, or failing to invest in a deep understanding of who your customers and prospects are so the content you post there will achieve desired actions and results, will leave you waking up one morning wondering, “What happened?”

@mikestiles
Photo stock.xchng

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