Digital

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Customer Journey Mapping can provide great insights on how customers see a company from their perspective. Insights that can lead to an improved customer experience, trust and loyalty

In the first blog in this series on customer analytics, the technique of Customer Journey Mapping (CJM) was discussed as a way to follow how customers move from one touch point to the next, and track their emotional well-being during those interactions. In the last blog I described how using a persona to represent a group of customers would allow marketing to get a better understanding of customers. In this blog I will explore how Customer Journey maps can be created for persona to visualize an idealized journey for the group represented. This is now becoming a well-accepted technique for not only improving user experience in software design, but also in the design of products, digital and conventional marketing channels, architecture and many other areas.

There are two basic approaches for creating persona. One is to base the persona on in-depth research of the customers within a market segment, and the other is to base the persona on intuition, sometimes referred to as a provisional persona. In reality, it makes most sense to use a combination of research and intuition, and then verify the persona with those who have front line contact with customers. Generally customers belonging to a company’s biggest market segment would be targeted first and a primary persona is created to represent them. If the team creating the persona do not have direct knowledge of the customers in that segment then they will need to conduct research to understand the values and motivations of the group.

Once a persona has been defined then it’s possible to look at how the company would engage that persona in a sale, and the hope is that the persona would follow each engagement at every touchpoint, even long after they’ve made the purchase and are using the product. The framework for this is known as the Customer Lifecycle. There are many versions of this but they all share some basic stages, as described by Jim Sterne and Matt Cutler in a paper called “E-metrics, business metrics for the new economy

  • Reach: Trying to get the attention of the people we want to reach.
  • Acquisition: Attracting and bringing the reached person into the influence sphere of our organization. 
  • Conversion: When the people we reach or have a more established relationship with, decide to buy something from us.
  • Retention: Trying to keep the customers and trying to sell them more (cross-selling, up-selling).
  • Loyalty: We would like the customer to become more than a customer: a loyal partner and even a ‘brand advocate’ Moments of truth

This can be represented either horizontally or in a circular lifecycle type chart

The Customer Life Cycle – Source: E-Metrics Business Metrics for the New Economy by Jim Sterne and Matt Cutler

The persona journey describes how it’s anticipated that a particular persona would move through the lifecycle. It would describe the channels through which it’s expected they are made aware of a product, how it’s expected they would research the product and what would motivate them to make a decision to buy. Key points in the journey where customers decide whether to continue or abandon the process are known as ‘Moments of Truth’, a term coined by Jan Carlzon, the well-known CEO of SAS Airlines who turned the company around in just a couple of years.

Walking in the customers shoes in this way is not easy, and would normally be done as a workshop with representatives from across an organisation, but it’s an exercise that can provide many useful insights. Service quality gaps, cross channel alignment, ways to better engage customers and align internal teams are just a few of the many benefits that come from journey mapping. When idealised journey maps are compared with the actual journeys that customers take then many preconceived ideas about how customers see and engage with the company may get thrown out and fresh ways to engage, retain and acquire new customers be discovered.

In the next part of this customer analytics based series of blogs I will be looking at the security implications of big data and advanced customer profiling, and how regulators around the world are trying to protect an individual’s right to be treated equally by large corporations.

We live in a world where technology is like a digital liquid that’s flowed around every aspect of our lives. There’s no doubt that technology can help to oil the craggy wheels of daily life, and while some find this enabling and liberating, others consider the intrusion to be more insidious. Working out where people stand on this issue is generally just a simple matter of checking their birth date. Many born before 1980 tends to view social and on line everything with suspicion, whereas those consumers born after that date, referred to as Generation Y, or Millennials, are far more comfortable with social media and sharing everything online. In a recent report from Pew research it was shown that the Millennials are much greater users of social media than their parents.

Milennials

This is probably because Millennials are the first generation that have grown up entirely with the internet and mobile phones.  They are ‘digital natives’. It’s difficult to know exactly what effects this has on general culture, but one surprising change is that Millennials tend to be far more optimistic that their parents were when they were young. While Generation X and before are more inclined to have a cynical and pessimistic attitude towards the future, a recent report by the Pew Research Centre, Millennials in Adulthood, has found that, despite feeling detached from politics or religion and burdened by debt and recession, the Millennials are inexplicably much more optimistic. According to a recent Gallup poll, eighty percent of millennials, aged 18 to 29, feel positive about the future and say their standard of living is improving.  The reasons for this relentless optimism are unclear but researchers at Pew have pondered that it may be down to more nurturing parenting, or perhaps it’s because millennials always feeling at the centre of their own social network.

Another characteristic of the millennial generation is that, contrary to predictions that technology would free us all from work, they are now working harder and are more driven to succeed than ever before. In his book ‘Generational Teaching: Motivating the Minority’ Christopher Alan has also found that Millennials are ‘more polite and considerate’, ‘attentive and respectful’ and prefer to work in teams rather than in a hierarchy. Goldman Sachs also says that they are also more health conscious and savvy than earlier generations.   But, as ever, the picture is never that simple, because it seems that the Millennial generation is itself divided in two, as Pew Research has written

Just 40% of adults ages 18 to 34 consider themselves part of the “Millennial generation,” while another 33% – mostly older Millennials – consider themselves part of the next older cohort, Generation X.

This all has very great implications on marketing, and how companies should reach out to different generations. Connecting with customers is one of the greatest challenges marketers face, and capturing Millennials is now one of the key battlefields for competing companies. As Leah Swartz of Millennial Marketing says

‘When it comes to fashion and shopping, there isn’t a more important demographic for retailers to reach than millennials.’

Goldman Sachs have even put together an infographic dedicated to marketing to Millennials in which they identify several key things to consider when marketing to the ‘largest generation in US history’. In summary they are

  • Living at home longer
  • Marrying later
  • Sharing, not owning
  • Exercise choice in purchasing
  • More health conscious

From a non-millennials perspective it may seem that they are so immersed in instant messaging and playing computer games that they are oblivious to the real world, but, on the contrary, millennials are very much aware of the state of the world. It’s just that this revolution is a lot quieter than the ones before, taking place as it does silently from the screens of our phones and laptops. The silence is an illusion. The volume of noise is now measured in packets of data rather than decibels, and it’s loader than ever. If companies don’t engage with different generations of customers on their own ground then they will not be heard at all.

In my next blog I will look at how Millennials and other demographic groups can be better served by adopting a customer-centric approach to marketing.

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This is the 2nd part of the 3 part blog series and covers how the digital advertisement ecosystem works along with understanding how big is the problem of fraud in that ecosystem.

This 3 part blog series puts a light on relevance of Digital Advertisements in telecom space along with providing a high level understanding of it’s ecosystem and fraud risks it injects. Idea is to give readers a basic knowledge of the digital advertisement space and the inherent risks.

The 1st part of this blog series was published on Jan 21, 2016 and you can read the same here.


Part 2 – Digital Advertisement Ecosystem & the problem of fraud

Advertisement Ecosystem is divided into 9 major components, as shown in the image below:

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1. Advertiser:

Advertisers are ‘Brands’. Brands which are the source of promotions for a specific product, service etc. This is the entry point of money into the ecosystem – A demand feeder.

2. Ad Agency:

Ad Agencies are the entities who plans marketing & ad campaigns on behalf of the advertiser. They are, generally, also the ad creators, or outsource the creative bit to a media agency.

Ad Agency designs the ad strategy and works with publishers, ad networks and other industry participants making the demand meet the rest of the ecosystem.

3. DSP:

Demand side platform. These are the demand side aggregation platform solution providers. They may be part of an Ad Exchange or maybe separate entities. They allow buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through single interface.

4. Ad Exchange:

Like the stock exchanges we all are aware of, Ad Exchanges act as a advertisement digital marketplace that enables advertisers and publishers to buy and sell advertising space, often through real-time auctions/bidding.

These are the points where the demand side generally meets the supply side.

5. SSP:

Similar to DSP, the Supply Side Platform are the aggregation platform solution providers at the supply side who enable publishers to manage their advertising impression inventory and maximize revenue from digital media.

6. Ad Network:

The Googles and InMobis of the world, Ad Networks connects advertisers to web sites that want to host advertisements. The key function of an ad network is aggregation of ad space supply from publishers and matching it with advertiser demand.

The Ad Networks are commonly known to manage most of the data exchange in the ecosystem, while earning most of the revenues.

7. Publisher:

The ad space owner. This is an entity which owns the medium (website, app, content service etc.) to deliver ads to intended end consumers/ad viewers. Commonly known as the consumer touch point.

More touch points, better touch points, better the ranking of the publisher.

8. Consumer:

The ad consumers. Customers. Us. The target entity for the whole Ad Ecosystem.

9. Data Aggregators:

The data crunchers of the ecosystem, Data Aggregators serve as the independent measurement entities for the other players in the ecosystem. Aggregators collect and compile data from individual sites to derive big picture and sell to others.

 

The Payout Models

There are 3 main payout models in the advertisement ecosystem:

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1. Pay Per Click:

Pay per click, also called cost per click (CPC), is a payout model in which advertisers or ad network pays the publisher when the ad is clicked by the consumer. It is defined simply as the amount spent to get an advertisement clicked.

2. Pay Per Impression:

Pay per impression (CPI), or “pay per thousand impressions” (CPM), refers to the payout model where advertisers or ad networks pays a publisher each time an ad is displayed on its inventory. CPI is the cost or expense incurred for each potential consumer who views the advertisement, while CPM refers to the cost or expense incurred for every thousand potential consumers who view the advertisement(s).

3. Pay By Lead:

Cost per Lead (CPL), also known as cost per conversion, is a payout model where the advertiser pays for each specified action which the advertiser can consider as a business ‘lead’ with verified interest – for example, a form submit (e.g., contact request, newsletter sign up, registration etc.), feedback, double opt-in, sale etc.

The influencer of each payout model, which governs the actual payout while governing the quality rating of a publisher, is CTR (Click Through Rate).

Click through rate is defined as the rate of consumer taking the intended action – click, form fill, registration etc. over the advertisements being displayed to him.

In simple terms, higher the CTR of a publisher, higher is its quality rating. This when mixed with volume of ad traffic, directly influences the revenue for a publisher.

CTR also helps gauge the quality of ads itself – in terms of its creativity, contextuality & relevancy.

 

Role of a Telco

While traditionally Telcos have been playing a role of an advertiser, they have been slowing growing as publishers too, utilizing their web portal space for the purpose.

But, as I wrote in the first part of this blog series, Telcos are now riding on a significant ‘ad capable’ inventory being generated by their next generation product & services, specially content related.

This significant inventory at their disposal has a capability of turning Telcos into a small or mid sized Ad Network, while setting up advertisements as one of the key revenue source or service adoption enabler over the coming years.

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Fraud Risk Levels in Advertisement Ecosystem

Before we move to the 3rd part in this blog series, let’s look at the existing fraud levels in the Advertisement Ecosystem.

Let me tell you, if you are all concerned about the 1-3% fraud loss levels against traditional telecom services, the fraud levels in the advertisement domain is going to give you sleepless nights.

To give you an example, one study by MediaPost reveals that, if a company has an online display ad budget of $100,000, then only $8,000 of that ad spend has the “chance” to put advertisements in front of human eyeballs.

That means, if you are paying $0.10 per impression, then the $10,000 that you will pay for 100,000 impressions will result in “chance” of only 8,000 human views—meaning that the effective Cost per Impression will actually be $1.25.

Pushes an organization’s ad investments of the track completely, isn’t it ?

Below are some industry statistics around existing levels of advertisement frauds published by the likes of SunTrust Robinson Humphreys, Ad-fraud prevention firm Pixalate & Forensiq:

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Now, if a Telco’s Fraud Management team were to analyse frauds in the digital advertising domain, it will need to focus on 3 different areas:

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  • Safeguarding your organization’s marketing investments & sales targets: It is more relevant when you see the Telco you are working for, as an advertiser or a brand.
  • Protecting the revenues from AD business & also safeguarding your publisher rating: This is relevant when a Telco acts as a Publisher or an Ad Network
  • Lastly, your own subscriber’s satisfaction & security levels: Now, this one is a bit confusing. But, to understand how advertisement frauds affect Telco’s end subscribers directly, let’s watch a short video courtesy Forensiq:

 

As shown in this interesting video by Forensiq, advertisement frauds not only impacts a Telco’s investments and expected revenues, but also influences customer satisfaction directly.

Recently Three, a leading telecom operator from the UK & Italy, decided to install network level ad-block solution with the below mentioned intent:

“Irrelevant and excessive mobile ads annoy customers and affect their overall network experience. We don’t believe customers should have to pay for data usage driven by mobile ads. The industry has to work together to give customers mobile ads they want and benefit from.”

If Three are successful, I can only imagine similar actions becoming widespread over the coming years or the sane players of the advertisement ecosystem gearing up to counter the problem of fraud like never before.

Clearly, there are two sides of the coin – while advertisements open up new exciting revenue avenues for Telcos, the fraud problem in the ecosystem is so widespread that it has potential to disrupt the whole revenue model built upon it.

In the next part of the blog, we will cover the most interesting bit and understand the presence of digital advertisement fraud risks in the ecosystem along with looking at a few case studies. You will not have to wait far too long, that I promise!

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Look around you and you see posters, hoardings & stand-ins. Look at whatever screen you carry or face and you will see videos, popups & banners. These are “Advertisements” and they are everywhere!

I will not be going overboard when I say advertisements are the fulcrum of relationship between every business and its consumers. Organizations put significant investments into their marketing functions which in turn enables advertisements.

While earlier advertisements were statics in nature – channel run time, physical hoardings etc., they were easy to track to ensure the investments are protected. But, with the advertisements becoming digital, increasingly dynamic & internet driven – There has been an increasing need for measuring & protecting the advertiser’s or brand’s money and even the publisher’s real estate which is used for ad delivery & consumption.

Like it or not – In Telecom space, Digital Advertisements are coming to steal sleep off every fraud manager’s eyes.

From the risk perspective, the domain is complex and different from the traditional Telecom frauds, but the most important point is that advertisements from the internet space bring fraud exposure levels which are much higher than what Telco’s are used to. And containing that, will be a real challenge!

This 3 part blog will put a light on relevance of Digital Advertisements in telecom space along with providing a high level understanding of it’s ecosystem and fraud risks it injects. Idea is to give readers a basic knowledge of the digital advertisement space and the inherent risks.

This is the 1st part of the 3 part blog and covers why telecom industry is looking at Digital Advertisements as their next enabler. 


Part 1 : Digital Advertisement and Telcos: A match made in heaven

When we think about internet or technology, there are 4 names which cross mind – Google, Apple, Facebook & Amazon.

What the 2 of these 4 giants, Google & Facebook, have taught us that AD revenues are a big deal when it comes to the digital world. With Apple & Amazon also planning to jump the advertisement bandwagon, the belief only gets stronger.

No surprise that Google & Facebook earn 90% of their revenues from advertisements. Also, most of the Apps, specially communication apps also have advertisements at the centre of their revenue model.

Considering this, it was just a matter of time our own Telecom industry shifts its focus on exploring the digital advertisements as one of their primary source of revenue.

The likes of Verizons, Axiatas & Singtels have already invested big in the area of advertisements.

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Also, some other leading operators like Vodafone, Telefonica, Etisalat and France Telecom have also openly agreed for a bright future of advertisements in telecom industry.

Digital advertisements: Attracting attention within Telcos

If you look at telecom industry as an advertiser, you will find telcos spending 10-15% of their total yearly revenues as marketing budget, out of which 46% is only on digital advertising like website banner ads, video ads etc.

That is quite higher than any other comparable industry sector.

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And if we believe certain studies conducted by industry experts like Adobe, spend on advertisements is only set to grow:

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It only shows that telco industry agrees that this spending will only increase with mobile advertisements leading the pack.

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What will drive this spending on Advertisements further ?

Now lets look at what are the factors which are going to drive the investments in the area of advertisements further.

If you look at the areas marked in yellow in the chart below, you will find that digital Advertisements are among the fastest growing revenue streams for Telecom Industry.

And, if you look at the elements which are marked with red circles, you will see a list of services on which telcos are currently betting big on.

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These services, which include M2M, Gaming, Music, Video etc., interestingly are set to become the “enabler platforms” to drive advertising revenues further.

And not only that, these services also ensure that Telcos have sufficient advertisement inventory for them to upgrade from just an advertiser to become a big ticket publisher or a small AD Network.

This is the reason why you will find that these services have “Ad Delivery” inbuilt as a core functionality within their framework.

Digital Advertisements are key to make upcoming & exiting product & services more affordable to a Telco’s subscriber base and in turn boost adoption

Apart from this, we all are aware that content services are set to become a big ticket to monetize the large investments Telcos have been making towards infrastructure & quality of data services.

There are researches from the likes of eMarketer which indicate that content is set to make up 66% of the total traffic in Telco data pipes by the year 2017.

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Driving on content services, advertisements are set to attract 100 billion dollars in next 1 year and an increase of 233% increase mobile ad spending in next couple of years.

Now, there is little doubt that advertisements are set to become one of the major source of revenues for Telcos or power that next big idea which will be a star of their upcoming annual report!


In the next part of the blog, we will understand how the digital advertisement ecosystem works along with understanding how big is the problem of fraud in that ecosystem. You will not have to wait far too long, that I promise! 

“As is”
Read the news using your favorite news app on your smart phone or device? Notice how the app renders news items that are important to you or of interest to you and stacks them together with short headlines followed by a short summary thereby making sure that one wouldn’t need to feel short of time finding what really needs to be read.

Is this done in your RA department?

The below diagram illustrates how majority of the RA departments report the necessary information to all concerned departments and how the subsequent action items are publicized and owned by various departments.

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In majority of RA functions the following gaps exist in the reporting of findings and their subsequent action points:

• Reports rarely designed with specific information that is immediately consumable by target audience
• Reports rarely designed with specific requirements to the target audience than can be easily converted to action items
• Majority of the RA operations use one reporting template for all business functions

“Smart Reporting”
The below figure illustrates the ideal modus operandi that requires to be followed in a RA reporting structure.

Reporting1

Key improvements in the model are as follows:
• Reports specifically designed to target audience. For example: Reports to CxO will address revenue & cost savings, key mitigation measures taken, not exceed a time length of 5 minutes and requiring specific actions / escalations
• All reports to address specific actions required from various business functions and will be time bound
• Organizational news feeds will be made part of RA reporting

Here the emphasis is on smart reporting, which can be quickly consumed and acted upon.

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Baroness Martha lane Fox, Internet pioneer and co-founder of lastminute.com,  has recently launched a campaign to try raise public and government awareness as to how the internet can benefit everyone, rather than just being a corporate billboard for advertising.   It is entitled DOT EVERYONE, a play on the .com extension used by commercial websites.

As a business women in the late 90’s Baroness Fox realised the potential of the internet to provide an economical channel through which services could be delivered directly to the public.  Lastminute.com thrived on scooping up the unsold seats for holidays and west end shows and making them immediately available to the public with an easy to use search engine.  It was a business model that was uniquely suited to the internet, since it dealt with a data product that would become obsolete very quickly and targeted a geographically disparate market.  The internet provided the perfect channel through which such a product could be made available to a huge market in the minimum of time.  It is now Europe’s largest travel and leisure website.

Today she is working to enlighten the British government and public as to how those characteristics of the internet that lastminute.com exploited could also serve the public good.  Her DOT EVERYONE campaign has three key strands

  1. To help educate all of us, from all walks of life, about the internet. The internet is the organising principle of our age, touching all our lives, every day. As the late activist Aaron Swartz put it, “It’s not OK not to understand the Internet anymore”.
  2. To put women at the heart of the technology sector. Currently there are fewer women in the digital sector than there are in Parliament.
  3. We (the British government) should aim for a much more ambitious global role in unpicking the complex moral and ethical issues that the internet presents.

While these messages were aimed primarily at UK government, they are really aspirations that should apply equally to governments everywhere. In this blog I am looking at the first of those messages.  In order to “educate all of us”, it is essential that good internet services are made available to all of us.  Baroness Fox goes on to say

“We need to make sure that those in power understand how the internet can help us redefine public services, improve the lives of the most vulnerable, bolster our economy.” 

Key to this redefinition of public services is the usability of government websites.  By improving the usability of websites it is hoped many more interactions with government will happen as self-service transactions, resulting in substantial cost savings.  A good user experience can result in improved quality of service for much lower cost.   In a letter written to the government in 2010 Fox states

It seems to me that the time is now to use the Internet to shift the lead in the design of services from the policy and legal teams to the end users.”

In other words, governments must cut through red tape and design services around user needs.

Along with improving the quality of transactions on government websites it is also recommended that services should be made available through API’s such that external organisations can directly utilise government services, as well as making them more widely available to re-sellers.

“We should put government transactional services and content where people spend their time on the web, rather than always expecting them to go to Directgov.” (government website)

By exposing API’s to third party vendors then not only are external companies able to directly interface to those services, but they also able to offer them on to other consumers, thereby extending the reach of the service providers.  For example, Ebay and Facebook often carry ads for third party organisations that post their content via the Ebay and Facebook API’s.

A third recommendation is that services should be centralised through a single portal.  This will improve ease of access, but will also result in removing duplication.

The recommendations that Baroness Fox has made are already making a substantial difference to how consumers interact with government, and will continue to drive government to improve services and embrace the digital age.  In the words of Baroness Fox

What digital is about, what the internet allows, is a radical redesign of services. Cheaper, better, faster.”

It’s a revolution that affects everyone.

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