How can companies use knowledge to streamline their advertising and marketing efforts? What are the principle challenges and potential advantages they face in doing this? How do retailers take advantage of out of Amazon — dubbed “Frenemy Number 1” — to navigate each the risk, but additionally the alternatives, that it brings?
Senior entrepreneurs from a broad vary of industries gathered collectively on the highest flooring of London’s infamous The Gherkin to discover these points collectively.
Tim Flagg, ClickZ podcast host and advertising and marketing knowledgeable, opened the briefing by working by a few of the fundamental findings from our current analysis report, Data Wars: A deep dive into the transformation of digital retail.
Key findings from the analysis
Our report surveyed 235 senior world brand-side entrepreneurs so as to perceive how they use customer knowledge to drive their advertising and marketing ROI. The market is large — with on-line retail gross sales in 2018 totaling $517 billion within the US and $125 billion within the UK.
However, our findings additionally highlighted the large affect of Amazon, which accounts for an astounding 49% of all on-line retail gross sales. Such is their affect (be it by Amazon Marketplace, Amazon Advertising. or Amazon Marketing Services) that each one retailers must have a strong course of in place when coping with the ecommerce large.
In order to do that, and to grasp their on-line advertising and marketing technique extra typically, companies want to make use of their customer knowledge successfully. But that is outdated information, proper?
Unfortunately, our report discovered that solely 10% of entrepreneurs imagine they’re utilizing their customer knowledge successfully — and 42% imagine that the largest problem for ecommerce companies lies in creating real enterprise affect from this knowledge.
Organizations typically don’t know the place to begin, what to give attention to (among the many wealth of knowledge on the market), or they’ve hassle manually stitching collectively customer journeys. It’s changing into more and more clear that solely by successfully utilizing AI can entrepreneurs begin to standardize all their siloed knowledge and make it work for them.
Tim requested the viewers to participate in a fast ballot by elevating their arms if their firm was at present utilizing, or considering of utilizing, an attribution platform. Roughly 10% of the respondents said that they had been — indicating that many organizations nonetheless lack the technological functionality to really take advantage of out of their knowledge.
Fospha’s CEO on measurement and attribution — difficulties and suggestions
The microphone was then handed to Sam Carter, CEO of promoting attribution know-how supplier Fospha. Sam spoke in regards to the knowledge troubles that companies have had in recent times. For each one step ahead of their digital transformation efforts, enterprise are sometimes struck with one other huge technological disruption or improvement that solely served to additional muddy the waters.
Marketers are properly conscious: measurement and attribution is tough. The customer journey has turn out to be more and more complicated and any related knowledge is commonly siloed or overly complicated. Despite this, and destructive press arising from the Cambridge Analytica knowledge scandal, there’s nonetheless loads of hope and alternative but for data-driven companies.
Sam cited current Boston Consulting Group (BCG) suggestions for entrepreneurs: have related knowledge, automated and built-in know-how, and actionable measurement. These parts remodel extremely complicated and disparate units of datapoints into insightful, comprehensible customer journeys.
You may be considering, “Sure, this sounds easy in principal, what about in reality?” Sam harassed that considered one of Fospha’s principal mantras, taken from a Forrester report, is to “start small and grow.” You don’t must do every thing unexpectedly. Instead, select a process you may full in 90 days and go from there, all the time protecting an general finish purpose behind your thoughts.
Kenshoo’s VP of Ecommerce on Amazon — trade statistics and technique
Meghan Harbold, Kenshoo VP of Ecommerce, was the following to talk. Kenshoo has been significantly targeted on enabling companies to take advantage of out of Amazon and to see the wealth of alternatives that it brings to all on-line retailers.
She began by speaking a few parable of the blind males and an elephant. They all believed the elephant was one thing totally different — a wall, a fan, a snake or a spear — relying on what a part of it they had been touching.
Businesses face a standard conundrum with Amazon. Is it a market, an promoting alternative, or a advertising and marketing service? Well, it may be all three. The trick lies in understanding which of those areas will greatest serve your organization, and determining a technique to take advantage of out of it. Highly-planned and well-executed operations are the keys to constructing a scaled enterprise on Amazon.
Meghan revealed some astonishing statistics about Amazon:
- Amazon’s conversion fee is 25% (in comparison with 2% on Google).
- 92% of customers who search merchandise on Amazon will then go on to purchase from Amazon.
- Nine of out 10 of all internet buyers contact Amazon in a roundabout way, form or kind — be it by an advert, sponsored product, or the web site itself.
This implies that retailers, whether or not they prefer it or not, completely should take part in Amazon’s community — there’s no escaping it.
Questions from the viewers: Access to Amazon knowledge, getting C-suite buy-in
The flooring was then opened as much as the viewers. Sam and Meghan had been requested a variety of nice questions, together with whether or not or not non-Amazon customers may nonetheless acquire insights from their knowledge (a difficult query given their reluctance to even share knowledge with their very own customers!), and how one can get senior stakeholders’ buy-in concerning digital transformation (trace: typically they like listening to about these points from somebody new, like an impartial guide).
Final items of recommendation
Here are two remaining items of standout recommendation from our audio system on starting your journey to digital transformation:
There’s all the time sufficient knowledge to get began.
Meghan reiterated that on this day and age there’s all the time an enormous quantity of knowledge obtainable to companies. Don’t delay, don’t maintain again – simply get began.
You must diminish the unknown.
According to Sam, huge tech platforms like Amazon, Google and Facebook act just like the guardians of your knowledge. This, mixed with difficult customer journeys, means there’s typically loads about your prospects that you simply’re not conscious of. The key to profitable data-driven advertising and marketing lies in decreasing the unknown as a lot as doable.