Archive for the ‘Digital digest’ Category

The millennial generation: a digital necessity

Returning to the topic of the blog post I wrote in February, The Digital Opportunity for the Millennial Generation, I find it important to note another development in the way young people and digital interact. Namely, the necessity for young people breaking into a career to use digital resources in order to find a job. It’s important to think critically about how this can be fostered most effectively.

In this highly competitive time for job success, young people must differentiate themselves more than ever. Additionally, they must be able to access employers in order to apply for work. While universities have databases for employers and internships available to students, these are often quite limited and insular, usually based only within and around the particular university.

Students are beginning to learn the hard way that due to the narrow, limited set of careers and job tracks covered by university databases they will have to create a professional image for themselves using digital and social media, and then reach out to hiring parties through this same technology.

Frankly, university resources have disappointed myself, and many other young people that I am in contact with, time and time again. This phenomenon can be seen in both low tuition public universities and more expensive private institutions alike. Universities are no longer able to easily connect students to work and internship opportunities; it must be done independently.

Perhaps, despite the difficulties, this is a good thing. In attempting to form a digital presence that communicates professionalism and understanding of developing Internet trends, potential applicants are actually self-training in these trends. While this may pose the risk of young people feeling disenfranchised with their training within university and colleges, I believe that within the next few years, universities should begin to train their students to utilize digital.

Students entering university in orientation are already trained to use online databases and library resources in order to participate in academia; the benefits of introducing students to the professional uses of social media they already use, such as Facebook, and how to better understand the digital technology they visit daily, such as Google, could be innumerable.

If universities truly are devoted to the goal of training young professionals with relevant skills for the work force, it would be very unwise to ignore this massive trend of digital necessity for young adults.

By Jessica Fregni at Reform

Near Field Communication – will it take off?

Some say this is the year of the contactless payment, although in truth it’s not really taken off yet. I remain dubious about it being this year but the market is definitely growing.  It’s likely that the UK will follow in the footsteps of Japan (as always) and that near-field communication (NFC) payment will slowly be integrated into our daily purchases. Following my last blog introducing NFC, there have been some interesting updates in the world of contactless payments.

Firstly, this technology has been widely criticised over security. In particular, Channel 4 news recently reported on the dangers of data theft. They found that by just holding a mobile phone over a contactless card they could lift the name, card number and the expiry date. Then they took these details and bought goods from Amazon relatively easily.

This could then lead to much more serious issues such as identity theft; we all know data is getting more and more valuable so any new advancement in this technology clearly need to focus on high security and data encryption.

This said, a study by Pew Research showed around 33% of people asked don’t trust devices with NFC technology. At the moment there are 19.6 million contactless cards in the UK but only 73,000 terminals in retailers nationwide. So I believe if they keep cropping up in more retailers (which is definitely on the cards – no pun intended!) then it will be used much more. However, as it stands take-up will probably be stunted by data and security problems.

Another point to note is that card payments are actually a lot more costly for the retailer. The British Retail Consortium (BRC) recently estimated that cash costs a shop around 1.7p per transaction, for debit cards 9.2p and 37.1p for credit cards.

Cash still accounts for a third of the value of all transactions in the UK and the BRC in its annual report said it was pointless to include contactless card payments as a separate entity as they account for such a small proportion of transactions at the moment.

So is this something worth keeping up to date with? Yes, but the huge buzz at present suggests that by next week we will all be burning our wallets when in fact that’s still a long way off. After all, so many places still don’t even accept cards at all, let alone contactless ones.

By Karen Hawey

Customers first, technology second

Multichannel; omnichannel; mobile; social; e-tail. Retailers have a lot of technology buzzwords flying around at present and most are in a race to upgrade their services. However, what they shouldn’t lose sight of is that the race is to meet what their customers are demanding. After all, the latter are driving this change because of their rate of technology adoption.

Consumers don’t think ‘multichannel’, they just think about shopping. To take just one example, I recently tried to buy something in a John Lewis store only to be told, after a 20 minute wait whilst the assistant checked the stock room, that the last one had sold earlier that day. However, on checking the website later that day, there was the item I was looking for, in stock and available to order online and pick up the next day from that very same store through the brand’s much-lauded Click & Collect service.

Now why didn’t the sales assistant offer this as an option? If even John Lewis, which is noted for its service, cannot link the silos together, what hope do other retailers have?

I might not have wanted to do the Click & Collect thing, but I wanted the choice. Similarly, we’ve been talking with various retailers about the new ‘Shutl’ system that ties their stock control to courier companies to offer rapid home delivery within 90 minutes. Again, not for everyone but customers love having the option.

And if retailers are going to focus their attention on technology, they need to do it right. Measure, monitor and adapt: If you’re going to track my shopping cart abandonment behaviour, make your follow-up emails useful (e.g. ‘the item you selected last week is now low on stock, order now to avoid disappointment’, ‘we see you thought about buying X; have you considered buying the remarkably similar Y?’) and not just pointless spam. And then perhaps you can also think of ways to tie that in with what I do in-store.

Digital is just another way of delivering a great retail experience and it doesn’t exist in a vacuum. It’s not rocket science, we just need to think like shoppers.

By Lucy Mann, Business Development Director at Reform

What every CEO needs to know – and doesn’t need to know – about digital

“Why aren’t we number 1 in Google?”

“What do you mean our company results were leaked on Twitter?”

“Should we have a company app?”

“I met an SEO agency at a networking event – should we buy them?”

“We need more Facebook likes than our main competitor!”

“Why won’t Twitter stop that angry ex-employee from rubbishing our reputation?”

“My wife had an unsatisfactory experience on our website!”

Every business has a CEO; and every one of them has a concern or an unanswered question about digital. We call it the ‘CEO’s digital syndrome’. And it’s completely understandable.

The Internet has come out of nowhere over the last twenty years and, now that businesses are getting their heads around its contribution to their revenue and profit, CEOs are keen to ensure that their organisations are optimally positioned to capitalise.

Yet, there is nothing more annoying to digital directors and business stakeholders than the CEO’s digital syndrome. If their days weren’t already full with having to satisfy Google’s algorithm, drive more online sales than yesterday, answer the increasingly growing number of customer complaints on Facebook, ensure that the brand is communicated in a unified way across all digital platforms AND prevent their ambition-hungry digital talent from going to work for the competition (for a £10k salary increase!), now they have to educate the board of the business as to the whys and the hows of a highly complex and fast moving industry.

Last year McKinsey reported on how much this sector has grown:

  • The global e-commerce market is worth $3 trillion
  • The Internet contributed 23% of the UK’s GDP over the last five years
  • Businesses using the Internet heavily grow and export twice as much as low-usage businesses
  • In France over the last fifteen years the Internet has destroyed 500k jobs but created 1.2m – 2.4 jobs created for every one destroyed
  • In the US today, Internet ventures represent 20% of venture capital.

 

This all means a CEO has every right and responsibility to get his or her head around digital – and quickly.

The sheer pace of transactions online means that every business will lose market share every minute of every day unless it has optimal plans for digital growth in place.

Yet a CEO has to keep focussed – and prioritise. Rather than worry about the bells and whistles on Facebook, aboutTwitter followers, or about the micro detail of Google’s page rank, here are a few questions that every CEO should ask of the management team:

  • Do we have a digital business plan in place and who owns it?
  • What are our revenue and profitability targets for our digital operation and activities over the next year?
  • Do we have online customer acquisition, conversion and retention strategies in place?
  • Who does Google say our competition is? Who is stealing our lunch via search?
  • Do we have the right integrated organisational structure in place to capitalise?
  • Do we have a programme of digital learning in place to empower and equip ‘non-digital’specialists?
  • Do we have the optimal blend of internal ownership and best of breed industry talent via our digital partners and agencies?
  • What do we do to recruit and retain the best digital talent?
  • Are we gathering, filtering, analysing and actioning digital data on a daily and weekly basis?
  • Are we reviewing Internet (web-based) technology contracts no less frequently than every 12months and do we own the data that these systems are collecting on our behalf?

And, as for those CEO digital syndromes and unanswered questions, Reform has setup an anonymous confessional box where business leaders can ask what they don’t know, and we will provide them with an answer: http://www.reformdigital.com/confessional

By Amanda Davie, Founder & Managing Director of Reform

Social curation – has Pinterest got what it takes?

Social network Pinterest is getting a lot of media attention at present. It’s probably here to stay, not because it offers something radically different but because it is very user-friendly. The most complicated thing is downloading the ‘pin’, and once you have that on your links it is dead easy to identify the things you like.

Any business that has a range of products that can be captured in pictures and is targeted at consumers will probably be adopting Pinterest strategy. Tourism companies could organise pin boards based on different localities to highlight properties and attractions, while fashion brands can look at different product categories for different pinboards or ‘look books’.

So what will make Pinterest a success? Fundamentally, it will need to be:

1. Super easy to use
2. Easily searchable
3. Unintrusive

All of this is technologically possible, but not necessarily a commercial goldmine. So how can brands make money off this without upsetting users? Pinterest had a blip by trying to be an Affiliate and had to change plans pretty quickly after quite a hostile reaction. So plan B would normally be to get advertising. It may work on a small and unobtrusive scale, but this rather defeats the purpose of advertising and won’t make much money.

The real value is in its data. If Pinterest or anyone else can amass consumer preference data on a colossal scale then this must be of value to brands. It can open up an API so agencies / technologists can engage with its data directly or it can keep things closed and sell the data. But for the moment Pinterest says it is not interested in making money so it seems the API route is more likely.

A possible danger for the largest online media entities is that they become too big. The reason for this is that most people would rather know where and why they are engaging online. If Google was not so easy to use and so embedded in what everyone does when they search its new privacy rules might have sent more people in a different direction.

The problem for Pinterest and other curators is that unless they emerge into a ‘super.com’ or they define a particular vertical or user group, they will never be more than a conduit. Looking at all the social media groups that came and went in the past, user groups may not be enough. MySpace may have survived longer because of its role in the music industry but it still came to a messy end.

So perhaps the opportunity for a Pinterest is to define some verticals within its offering, like a big Sunday paper now splits into 10 parts.Other super.coms like eBay and Amazon do this by product type,while Google identifies channels such as news or images rather than product/service type. Unfortunately Pinterest, which is essentially image/video-based, can’t do this.

In essence, Pinterest’s success will be driven by how easy it is to use and how easy it is to split up its services. The more successful it is at highlighting some verticals, the more likely it is that consumers will head directly to those channels. In the intervening time, the likelihood is that Pinterest and similar curators will be able to amass great data and sell this very profitably.

By James Kilpatrick, non-executive director

Customer behaviour in the digital age

Digital marketing is set to get more scientific. And it’s about time.

Companies have an abundance of data available but at present much of it is not being utilised. By gathering data on customer behaviour, they can develop more valuable insight can and get into the mindset of each individual customer. Algorithms and complex calculations allow brands to predict specific actions, behaviours and activities.

Data gathering holds countless options for brands, not least ‘bespoke shopping’. Brands already know your favourite items and how you like to be contacted, but what if they knew your behavioural tendencies and odd behaviour as well? For example, if you suddenly started buying healthier food, they could recognise this from the data and offer you healthy recipes, deals on specific products and could even congratulate you.

Or, a fashion brand might know that you always bought certain styles but would always waver towards what is in fashion at the time. That means they’d know exactly what products to sell to you on any given week. It’s recognising this more ad-hoc behaviour which allows businesses to be a little bit cleverer with their marketing strategies.

This issue is that brands seem to have trouble with spontaneity at the moment – digitally at any rate. They usually have a very rigid marketing plan based around their target market and need to realise just how many variables there are which affect customers, all of which should be taken into consideration.

But digital marketing is not just about spontaneity, it’s also about transparency. So you want to know everything about your customers but you are telling them nothing in return? That’s just not going to cut it anymore.

By engaging customers you are increasing people’s interaction with the brand and hopefully, in turn, their loyalty. Rather than just trying to sell, attention has shifted to generating more of a community- and sharing-based attitude between brand and consumer. Brands will have to act more like a real person to get their story and brand personality across. It’s the human characteristics that will encourage customers to love a brand rather than just buy from it.

And, of course, humans make mistakes. There have been a lot of marketing mishaps over the past year, but what has separated the clued up brands from the not so clever has been the aftermath of those incidents. An apology or acceptance of a mistake goes much further than complete dismissal.

There will be a lot more brands trying to hide things under the carpet – but with the internet becoming the ultimate word of mouth reviewer there’s just nowhere to hide any more. What’s clear is that digital marketing is becoming more scientific and more human at the same time, contradictory though that might sound. Businesses need to understand how to do both and to do both well.

By Karen Hawey

Online video

Businesses should be aware, if they’re not already, that the way people watch video media online has changed.

Video content is becoming an increasingly popular form of online media due to the flexibility of the format. While short clips have historically been the meat and drink of online video, an increasing number are watching TV shows and movies over the internet instead of on their televisions. In fact, the amount of short clips watched online has decreased from 84 percent to 74 percent (http://techcrunch.com/2011/06/29/online-video-shift-primetim/), when compared to longer forms of video media online.

Users are also more likely to watch an online video in the context of an article or webpage. This change is not only relevant to the younger generation, but to all groups of people who use the internet regularly – including those who use the internet for research before making purchases. In fact, the majority of both senior and younger executives say their purchasing decisions are based largely upon the online video content of a particular website (http://www.socialnomics.net/2012/01/24/youtube-killed-the-tv-star-why-online-video-marketing-is-essential-for-marketers-in-2012/).

For businesses that engage in e-commerce, having clear video content that describes the product or service offered can be the key to more traffic visiting your website.

There’s also been a change in the way search engines are displaying their results: blended results, meaning a variety of content such as pictures, videos, and local listings, will usually appear on page one. In turn, search engines are giving video content higher rank, compared to other forms, to ensure a display of mixed search results.

Additionally, video content that is engaging and informative to the viewer can lead to longer visits to, or time spent on, a website. This can greatly enhance its quality score on various search engines and thus its ranking.

So, what does this mean for digital marketing? It means that businesses need to start taking advantage of their video content. The mere presence of a video on a page does not necessarily mean that it will be indexed by Google; these videos require proper submission. Currently, in fact, only a small percentage of video content is being properly submitted by users for indexation. However, users whose videos are indexed begin to start seeing results within days. According to Forrester Research, a video is 53 times more likely to appear on the first page of the search engine compared to traditional SEO techniques.

Therefore, making sure video content is properly indexed and implementing SEO techniques will help it appear in the search engine results page. A small amount of preparation before uploading a video can yield great results and assure that your brand’s video content is reaching as wide an audience as possible.

By Priya Chandra

Internationalisation

With the Web being such a dynamic environment for businesses and users globally, one of the factors that has been toughest for many brand names (particular big names) to get their heads around is the targeting beyond their own national borders.

This means making sure their message is distributed accurately across all markets and that users abroad don’t just see the “English Site”. That site may even have content in other languages but it doesn’t fare well in Google – in fact, it often requires users to fish it out themselves when on the site.

At the same time, many companies may want to serve different content to different locations, show different prices to different users (even if the language is the same) and otherwise personalise their digital presence for each international market. But, what’s the right way of doing this?

From an SEO perspective, Google’s recent algorithm would lead one to recommend using a region by region targeting strategy, such as establishing a CCTLD (Country code top-level domain) for each region – e.g. company.de, company.ie, company.jp. This increases the ability to target each market and local link relevance. For example, this approach serves well for brands like Amazon and Trip Advisor.

Many other (usually older) brands, however, still pile everything onto one large .com domain. However, this has been proven to show less favourable results when going outside the US – especially into non-English language markets. As its overall algorithm developed, Google tried many times to look at different ways of serving users in each country an improved level of relevance, and in recent years factors such as hosting location, domain extension and even ‘where the sites linking to your site are from’ have become more important.

But a recent announcement on Google’s webmaster central blog looks at combining the canonical tag element (that diffuses any potential page duplication) with the link alternate tag that attempts to tell users the page is pretty much the same, but in country A you get page A, if in country B, you get B, and so on.

This would work well if your Portuguese site is similar to your Brazilian regional site, for example, but falls down if you want to serve those two countries different content in a way that is search-friendly instead of dynamically serving the content to each user off the same URL.

This also helps push a level of international best practice, as recent Google updates (Panda for instance) devalued a lot of sites that had “auto-translated” – and thus low quality – content.

It’s still inconclusive how this will work for international SEO moving forwards and CCTLDs are still the proven way at present – but businesses looking to create or develop an international presence should take a long, hard look at the best way to make their sites search-friendly in those other markets.

By Niall Madden

Multi-platform search

Back in the early days of search marketing, consumers all used PCs or Macs to find what goods and services they needed and to do their research. This restraint was a huge factor in determining how, and when, people were making use of search engines.

But in the last few years, it’s all changed. The number of devices and platforms that are capable of supporting internet usage and search has vastly increased, which in turn is altering what people search for and how they do it. And, of course, this has implications for every business looking to improve its search rankings.

Search has now found a home on every internet-capable device, including smartphones, tablets and the raft of new televisions that allow users to surf the internet. And as technology has improved across the board, consumers are becoming more and more sophisticated about how they use their devices.

For example, consumers now search for the venue where they are meeting their friends, if they are unsure where it is, as well as for getting directions. If they use an internet capable television, they can search for videos they want to watch. The new wave of HD videos on platforms like YouTube makes this even more attractive.

In addition, the advent of new technology is delivering a constantly improving technical environment. With the last few years we have seen the release of tablet computers like the iPad and Samsung Galaxy that can be used as portable computers. Meanwhile the technological advances in mobile devices have continued to expand at a furious pace, resulting in the boom in smartphones.

As a result of the ultra-portable nature of these advanced phones and tablets, they can often be connected to other, more stationary devices such as PCs and TVs to communicate data between them. It also means that while searchers might sit down to do their initial research at a PC, once the initial research period is over they could use their phone or tablet to do some final research before committing to the purchase.

Many businesses are aware of this trend and are producing applications that can help steer searchers in their direction at the last minute. An example of this is the Amazon app that encourages people in stores, ostensibly with the intent to purchase something there, to scan products to see whether they can get it cheaper on Amazon.

As technology continues to evolve at a furious pace, it becomes harder to predict what the next great innovation will be. However, movement over time shows us clearly that in the future all of our devices, including tablet, phone, TV and PC, will become even more closely tied together.

This could potentially provide consumers with the freedom of their portable devices, while still offering the size and improved capability of the stationary devices. Consumers could do an initial search on their phone, and then move the results to their TV or PC through wireless connection to be able to see a larger version of product images, or to be able to read large amounts of text more easily.

So what does this mean for businesses? Simply, that search isn’t static. If you want to steer customers towards your brand, you have to understand how they search, when they search and what device they’re likely to use – not just what keywords they’re most likely to employ.

By Juliette van Rooyen

Using data effectively

For years businesses have been both generating large amounts of data and hearing from digital experts that they need to use this data to succeed. Frankly, some have been more successful at this than others.

So why is that? Every ‘unhappy family’ is unique, but a business’s failure to embrace the data-driven culture that is almost universally agreed to be a good thing can probably be summed up with one word: fragmentation.

What does that mean, you may ask? Actually, it can apply to several business areas (particularly in retail):

• Fragmentation of the analytical talent within an organisation. For example, analysts capable of understanding in-store product seasonality might never solve the problem because they are assigned to the email team. Businesses need to harness their analytics talent effectively – because in the modern digital world those men and women are worth their weight in gold

• Fragmentation of data into departmental silos. For example, the search team might continue to drive traffic to pages containing out of stock products, whilst last season’s colours sit unused in the warehouse. Data has to be managed holistically – so that every part of the organisation both requires and provides accurate information

• Fragmentation of goals and KPIs. What sometimes happens is that each department/silo optimises for the metrics that are easiest for them to measure rather than the long term profitability of the business. Again, a ‘whole organisation’ approach is needed, which means it has to be driven from the senior management at the top.

Some organisations still work from ‘gut instinct’ rather than data, but thankfully this is growing rarer. We think those that remain will quietly fade into the background as their pipeline of new customers is reduced through more effective competition from companies who understand and use data.

But even they have decisions to make. Businesses that are further along the ‘data road’ but are still currently siloed need a large influx of analytic talent in order to develop, but the talented analysts can have more fulfilling roles elsewhere. The war for analytic talent is set to hot up even further and it underpins a broader move towards organisational change. Businesses live, as the old Chinese proverb goes, in interesting times.

By Richard Fergie