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The concept of marketing DX | Explain the three points necessary for success!

Due to the corona crisis, the movement to incorporate IT is accelerating. More and more customers are consuming online, creating new and changing demands.

DX is essential for companies to survive and win. Among them, marketing DX needs to be promoted as soon as possible. For customers with new consumption styles, new sales methods and attractiveness are essential.

This article will explain how to proceed with DX in the marketing field.

Table of Contents

  • What is DX?
  • Relationship between DX and marketing
    • Shifting marketing trends
  •  3 benefits of promoting DX in marketing
    • Accumulate data and improve the quality of communication
    • Enable marketing automation
    • O2O marketing becomes possible
  • DX and marketing success stories
    • JTB|Sophisticated Communication
    • Ezaki Glico | Marketing Automation
    • Coca-Cola | Successful O2O marketing
  • 3 steps to DX marketing
    • ① Strategically develop and share the customer experience
    • (2) Clarify technical barriers
    • ③ Prepare a decision-making base and create a DX organization
  • Three important points to promote DX in marketing
    • ① Clarify the purpose, set KPI and manage
    • ② Design segmented communication from multifaceted data
    • ③ Clarify the cost structure
  • 3 recommended books related to DX marketing
    • DX from a marketing perspective
    • 5 essences of digitization in marketing
    • A book to read if you are entrusted with digitalization and DX of BtoB marketing-from knowledge to practice
  • summary

What is DX?

DX is the creation of products, services, and business models using IT and data as means.

In order to recapture “DX” correctly, it is effective to think of it side by side with “IT”. Many people seem to confuse IT and DX.

IT is ” to simply shift what was analog until then to digital “.

For example, transferring customer information, which was previously managed on paper, to a database. The purpose of IT is to improve operational efficiency.

On the other hand, the purpose of DX is to “realize the services demanded by customers and society.”

In order to achieve that purpose, DX utilizes IT and data as means. Some people may think that the purpose of DX is to improve the efficiency of operations, but that is not the purpose, but the result.

Therefore, it can be said that the general flow is “first to introduce IT, then to DX”.

Relationship between DX and marketing

The relationship between marketing and DX is old and extremely important. In the marketing field, digital marketing was originally emerging.

Data has been collected and used. Therefore, it can be said that DX has already been promoted in marketing.

A long time ago, sales were the key to attracting customers. However, these days, customers themselves use the Internet to obtain product information and services. There, Internet advertising has a greater influence than sales force.

Therefore, sophisticated marketing strategies that make full use of IT are currently attracting customers. DX in marketing is extremely important and must be achieved as soon as possible.

Shifting marketing trends

Marketing techniques are becoming more sophisticated. This is because the amount of accumulated data is increasing, and the ways in which data is used are evolving.

In addition, marketing DX aims for 1to1 marketing.

Various data are accumulated and used efficiently in a wide range of processes from sales activities to user loyalty formation. Recommendations tailored to customer preferences are a good example of this.

 3 benefits of promoting DX in marketing

There are three benefits to promoting DX in marketing.

  1. Accumulate data and improve the quality of communication
  2. Enable marketing automation
  3. O2O marketing becomes possible

I will explain each.

Accumulate data and improve the quality of communication

Marketing DX first destroys the conventional business processes built around people.

Then it moves to a data-centric process. In this new data-based marketing, data is constantly collected and data is constantly used.

For example, by having an AI chatbot learn data from past interactions with customers, it will be possible to communicate without time zones or language boundaries while keeping costs down.

Enable marketing automation

Marketing automation (MA) is a marketing method that automatically acquires new customers.

Who is interested in your company’s products and who is indifferent? How can you increase their interest and desire to buy? A system that automatically identifies and executes them.

It can be said that this is what Marketing DX is aiming for.

O2O marketing becomes possible

O2O stands for “Online to Offline”. It refers to attracting customers to offline environments such as physical stores through online advertising, or vice versa.

For example, this is the method of issuing coupons on apps such as SNS to attract customers to the store.

If marketing can be done online through marketing DX, it will be possible to attract customers in a completely different way than before.

DX and marketing success stories

From here, we will introduce three successful cases of DX and marketing.

  1. JTB|Sophisticated Communication
  2. Ezaki Glico | Marketing Automation
  3. Coca-Cola | Successful O2O marketing

I will explain each.

JTB|Sophisticated Communication

JTB jointly developed an AI chatbot for inbound with Microsoft and Navitime.

As a result, foreign tourists can now enjoy sightseeing in Japan while communicating in English.

Furthermore, with this app, it is possible to accumulate behavior data and preference data of foreign tourists.

By using them, you can build a more attractive sightseeing plan. In other words, communication is not only refined, but new possibilities can be discovered from it.

Ezaki Glico | Marketing Automation

At Ezaki Glico, we successfully migrated to marketing automation (MA) in one business, and then applied the know-how cultivated there to another business.

Specifically, we introduced MA in the personalized novelty business, and by effectively operating a website that had not been fully utilized until then, we improved the closing rate.

And it seems that the MA know-how that effectively uses the website is also being used in a completely different business (proposal of stockpiled food for disaster countermeasures).

Your business boasts an almost 100% retention rate for customers who inquire through their website.

Coca-Cola | Successful O2O marketing

Coke On is a system that links smartphones with vending machines.

In addition to attracting customers to vending machines by issuing coupons through the app, we have partnered with other companies to provide users with new ways to enjoy themselves.

In addition to these measures, customer purchase data is also collected and utilized. This novel technique boosted vending machine sales.

3 steps to DX marketing

From here, we will introduce three steps to DX marketing.

  1. Strategically craft and share customer experiences
  2. Explicit technical barriers
  3. Prepare a decision-making base and create a DX organization

I will explain each.

① Strategically develop and share the customer experience

DX is not an extension of the “Information Systems Department”. As already mentioned, DX does not aim for operational efficiency.

The goal of DX is to create services that customers and society demand, create a more sophisticated and wonderful customer experience (UX), and use IT and data to create innovative services.

Therefore, in the flow from attracting customers to becoming customers, first identify the areas that are bottlenecks and areas that you want to improve.

And be aware of what IT can do and what your data can tell you.

Then it’s just a matter of choice. We consider which method should be used to create and provide more attractive services.

It all starts with drawing this blueprint.

(2) Clarify technical barriers

Once you have a blueprint, make arrangements to bring it to life.

First, design the flow in detail and define the requirements. Specifically, we identify the data required by the service and envision a system that effectively collects and utilizes that data.

In the above flow, points that seem to be technically difficult will also emerge. It is important to make these difficulties explicit rather than cover them up.

Such technical barriers are often overcome through consultation with vendors and engineers.

It is necessary to share what we want to achieve not only within our company but also with our vendors.

In addition, technical barriers can be overcome by defining detailed requirements in advance and clarifying difficult points.

System development is irreversible. This phase is very important because if an unexpected problem arises during development, you may have to start over from scratch.

Eliminate risks as much as possible.

③ Prepare a decision-making base and create a DX organization

DX will often involve transformation of organizations and business models. Therefore, promoting DX requires cross-organizational efforts.

However, a work environment where the voices of the people in the field are strong (business conditions that are often seen in the Japanese manufacturing industry) can be a bottleneck. In addition, the vertically divided organizational culture may also work negatively in many situations.

An excellent leader is necessary to carry out cross-organizational DX. Suitable leaders include senior executives who can take the initiative and executives who are familiar with customers.

This is because people who understand the work of each department, understand the market, and can work flexibly within the company need to play a leading role.

Leaders clarify who makes decisions and build highly mobile organizations that put those decisions into action. We also want to secure IT-savvy human resources.

And let’s clarify the point of contact with the vendor. If you leave the work to vendors and engineers, it will lead to failure. The incident in which Nomura HD lost the lawsuit against IBM was shocking.

Three important points to promote DX in marketing

From here, we will introduce three important points to promote DX in marketing.

  1. Clarify objectives, set KPIs and manage
  2. Design segmented communication from multifaceted data
  3. Clarify your cost structure

I will explain each.

① Clarify the purpose, set KPI and manage

However, if KPI settings are solid, it is possible to measure the extent to which each step produced results and achieved results.

Analysis of the current situation by the project leader and members will lead to finding issues such as what to do next.

② Design segmented communication from multifaceted data

Don’t take the data, which is an important element of DX, as it is.

For example, in order to verify the effect, it is necessary to understand “what kind of measures are presented to which target” and “how the behavior of the target changed” as a result. I have.

In order to understand the behavior of such subjects, we consider “what is the optimal data” and “what kind of mechanism should be constructed to acquire it”, and consider how to acquire the necessary data. increase.

③ Clarify the cost structure

The case where this is omitted is very wasteful. Even if you go to great lengths to create a UX and assume specifications, if the cost structure is not clear and the cost estimate is not visualized, it will be difficult to get the go-ahead from your superiors.

Estimate and clarify in advance how much will be spent on system installation and maintenance and partnering with vendors.

3 recommended books related to DX marketing

Here are three marketing-related books I recommend.

  1. DX from a marketing perspective
  2. 5 essences of digitization in marketing
  3. A book to read if you are entrusted with digitalization and DX of BtoB marketing-from knowledge to practice

I will explain each.

DX from a marketing perspective

In order to succeed in marketing DX, it does not mean that engineers should do their best. Rather, market-savvy personnel should be familiar with IT.

“DX from a Marketing Perspective” is a book where you can learn the thinking necessary for DX and marketing with abundant examples.

5 essences of digitization in marketing

Marketing DX is to bring about structural reform in marketing.

In “The 5 Essences of Digitalization in Marketing”, the five stages necessary for this reform are explained in an easy-to-understand manner.

In the first half, you will learn how to think, and in the second half, you will be taught practical tips, so you will be able to master DX without difficulty.

A book to read if you are entrusted with digitalization and DX of BtoB marketing-from knowledge to practice

This book also covers knowledge in the first half and practice in the second half. If you want to use data to transform your business, this is a must-read.

summary

With the emergence of IT tools, marketing trends have changed dramatically.

Also, Corona is making a dramatic change towards more digitalization. We will not be able to adapt to future changes in trends unless we advance digitalization from conventional marketing and focus on the customer’s perspective.

However, it is also true that it is difficult to do this with only in-house human resources. Let’s make marketing DX successful while making good use of external human resources.

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