Vol ume7 , I s s ue3 , 2 0 1 7
Edi t or i al :Mar k et i ngOr gani z at i oni nt heDi gi t alAge, t heEngagementGap,Di gi t alI nv es t ment s , AI ,andCL V’ sRol e TheodorVal ent i nPURCĂREA
Bui l di ngaPat ht owar dDi gi t alMar k et i ngMat ur i t y . TheI mpac tofDi gi t alMar k et i ngi nHeal t hcar e Cos t el I l i uț ăNEGRI CEA I oanMat ei PURCĂREA
I nt er nat i onalQual i t yPl at f or m,Sav eFoodI I I , Gl obalG. A. P. ,and FoodSaf et y&HumanHeal t hCongr es s2018 Ber ndHALLI ER( bycour t es yof )
TheCons umerAc t orandt heDi s t r i but i v eTr ade& Cor por at eSoc i alRes pons i bi l i t yf oraBet t erWor l d I s abel l eWEGNEZ( bycour t es yof )
Mar k et i ng’ sRenai s s ancebyCommi t t i ngt oI mpr ov eCX TheodorPURCĂREA
BI RD,t heSpi r i tofBr et t onWoods LéonF .WEGNEZ( bycour t es yof )
Editorial Board of “Holistic Marketing Management” (A refereed journal published four times annually by the School of Management-Marketing of the Romanian-American University) Editor-in-Chief Theodor Valentin PURCĂREA
John L. STANTON
Léon F. WEGNEZ
William PERTTULA Levent ALTINAY
Andrew KILNER Dana ZADRAZILOVA Riccardo BELTRAMO Sinisa ZARIC Gabriela SABĂU Hélène NIKOLOPOULOU Vasa LÁSZLÓ Peter STARCHON John MURRAY Kamil PÍCHA Irena JINDRICHOVSKA Holistic Marketing Management
President of European Retail Academy; President of EuCVoT, Member of the Astana Economic Scientists Club; Former Managing Director EHI Retail Institute, Germany, Chairman of the Advisory Board of EuroShop, Chairman of the Board of the Orgainvent, Trustee of EHI Retail Institute at GLOBALG.A.P. President - Association of Global Management Studies (USA); Editor-in-Chief, Journal of Entrepreneurship and Sustainability Issues & Former Editor-in-Chief, Journal of Management Systems, USA; Australian Graduate School of Entrepreneurship, the Faculty of Business and Enterprise, Swinburne University of Technology; Member of France’s National Academy of Scientific Research (CNRS); Director - ESB International Teaching and Research Exchanges, Reutlingen University, Germany Professor of Food Marketing, Erivan K. Haub School of Business, Saint Joseph’s University Philadelphia, USA; Director, Institute of Food Products Marketing, Editor, Journal of Food Products Marketing; Hall of Fame of the European Retail Academy, Honored Personality 2016 Secretary General, International Association of the Distributive Trade, AIDA Brussels; Member of France’s Academy of Commercial Sciences; Doctor Honoris Causa of NUPSPA (SNSPA) Bucharest; Hall of Fame of the European Retail Academy, Honored Personality 2015 Internet Marketing Professor, College of Business, San Francisco State University, USA Professor of Strategy and Entrepreneurship, Research Area Leader, Oxford School of Hospitality Management, Faculty of Business, Oxford Brookes University, UK First MBA Director at the Rennes Graduate School of Business in France; Director of RAFME Research into Management Excellence; PhD (Cambridge), MBA (City, London) Faculty of International Economic Relations, University of Economics, Prague, Czech Republic University of Turin, Italy University of Belgrade, Yugoslavia Memorial University, Grenfell Campus, Corner Brook, Canada University of Lille 3, France Szent Istvan University, Hungary Comenius University in Bratislava, Slovakia Faculty of Business, Dublin Institute of Technology, Ireland Faculty of Economics, University of South Bohemia in Ceske Budejovice Deputy Head of Department of Business Economics, University of Economics 1
Norbert HAYDAM Constantin ROŞCA Hans ZWAGA Roxana CODITA Dumitru MIRON Valeriu IOAN-FRANC Iacob CĂTOIU Virgil BALAURE Gheorghe ORZAN Luigi DUMITRESCU Marius D. POP Petru FILIP
Ion VOICU SUCALA Virgil POPA Alexandru NEDELEA Olguța Anca ORZAN Ana-Maria PREDA Ovidiu FOLCUȚ Doinița CIOCÎRLAN Marius Dan DALOTĂ Mihai PAPUC Gheorghe ILIESCU Costel NEGRICEA Alexandru IONESCU Tudor EDU Olga POTECEA Oana PREDA Nicoleta DUMITRU Monica Paula RAȚIU Elisabeta Andreea BUDACIA
and Management, Prague, Czech Republic Faculty of Business, Marketing Department, Cape Peninsula University of Technology, South Africa President of Romanian Scientific Society of Management - SSMAR Kemi-Tornio University of Applied Sciences, Finland Technische Universität München, TUM School of Management Academy of Economic Studies in Bucharest National Institute for Economic Research, Romanian Academy; Romanian Marketing Association; Romanian Distribution Committee Academy of Economic Studies in Bucharest Academy of Economic Studies in Bucharest Academy of Economic Studies in Bucharest Lucian Blaga University of Sibiu Babes-Bolyai University, Cluj-Napoca Dimitrie Cantemir University, Bucharest Technical University of Cluj-Napoca, Management and Economic Engineering Department; University of Glasgow, UK, College of Social Sciences, School of Social & Political Sciences; Managing Editor, Review of Management and Economic Engineering Valahia University of Târgovişte Ştefan cel Mare University of Suceava Carol Davila University of Medicine and Pharmacy Bucharest Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University Romanian-American University
Associate Editors Diana SOCA Irina PURCĂREA Dan SMEDESCU Art Designer Director Alexandru BEJAN
Holistic Marketing Management
“Holistic Marketing Management” (A refereed journal published four times annually by the School of Management-Marketing of the Romanian-American University)
Volume 7, Issue 3, Year 2017
Theodor Valentin PURCĂREA - Editorial: Marketing Organization in the Digital Age, the Engagement Gap, Digital Investments, AI, and CLV’s Role......4
Costel Iliuță NEGRICEA - Building a Path toward Digital Marketing Maturity. The Impact of Ioan Matei PURCĂREA
Digital Marketing in Healthcare…………………………………...7
Bernd HALLIER (by courtesy of) - International Quality Platform, Save Food III, GlobalG.A.P., and Food Safety & Human Health Congress 2018…………22 Isabelle WEGNEZ (by courtesy of) - The Consumer Actor and the Distributive Trade & Corporate Social Responsibility for a Better World…..…………………..28 Theodor PURCĂREA - Marketing’s Renaissance by Committing to Improve CX…….……..29 Léon F. WEGNEZ (by courtesy of) - BIRD, the Spirit of Bretton Woods …………………….48
The responsibility for the contents of the scientific and the authenticity of the published materials and opinions expressed rests with the author.
Holistic Marketing Management
Editorial: Marketing Organization in the Digital Age, the Engagement Gap, Digital Investments, AI, and CLV’s Role Some time ago we showed that marketers need to integrate technology, people, and practices to help take advantage of the wealth of data available today, but it is marketers’ duty in relation with their organizational culture to pay attention to not losing the wisdom in knowledge, and to not losing the knowledge in information. A current strategic and organizational challenge is providing a great Omni channel user experience which is based on developing a two-way conversation with customers, which makes necessary for the marketing department to actively harmonize the working relationships across the business. And in order to build the right pathway to it, it is necessary to clarify some significant aspects such as those revealed by McKinsey’s research:1 ensuring thinking about customer journeys rather than just touchpoints; ensuring useful data; understanding why company’s customers are doing what they’re doing; ensuring relevant communications and interactions. In many cases, within the context of the need for a digital transformation,2 companies move first from digital experimentation to a clear digital strategy, by aligning their teams around the highest-impact applications of digital across the business, identifying a portfolio of digital initiatives (across marketing, commerce, operations and products, so as to ensure the proper mix of such initiatives) to support their strategic priorities, and adequately resourcing these priorities (time, talent, money). Then they need both to understand the value of simplicity (realizing the full potential of digital), and to reboot information technology. According to a recent research from Marketo, the digital channels most used by consumers and customers to initiate engagement with brands are email (79% use), websites (60%), and social media (35%), chat (28%), mobile devices or apps (25%), followed by online communities/forums (19%), video (11%), blogs (10%), podcasts/webinars (9%), games (7%), virtual reality (5%), other (5%), and augmented reality (4%).3 There are some differences between the opinions expressed by the surveyed marketers (1,192 marketers who are managerlevel and above, in France, Germany, UK, and USA) and their customers (489 B2B customers and 511 B2C consumers) with regard to: how innovative brands’ engagement activities are: while 83% of marketers say their engagements are extremely or very innovative, only 33% of B2B customers and 23% of B2C consumers agree; the understanding of how customers want to engage: while 82% of marketers say they have a deep understanding, only 65% of B2B customers and 47% of B2C consumers say brands/vendors could do a better job of aligning engagement activities with their needs. 1
Gandhi, P., Gordon, J., Perrey, J. and Serra, S., Five questions brands need to answer to be customer first in the digital age, July 2017, retrieved on 09.07.2017, from: http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/five-questions-brands-need-to-answerto-be-customer-first-in-the-digital-age? 2 Webster, R., Tager, S. and Vishwanath, V., Deconstructing the Digital Agenda in Consumer Products, March 08, 2017 Bain Brief, retrieved from: http://www.bain.com/publications/articles/deconstructing-the-digital-agenda-in-consumer-products.aspx 3 Nanji, A., The Engagement Gap: How B2B and B2C Firms Are Missing the Mark, August 23, 2017, retrieved on 06.09.2017, from: https://www.marketingprofs.com/charts/2017/32661/the-engagement-gap-how-b2b-and-b2c-firms-are-missing-the-mark?
Holistic Marketing Management
McKinsey B2B customer decision journey survey, 2016 (to identify customers’ preferences when dealing with suppliers were surveyed more than 1,000 buyers in four countries in a range of industries), showed that in order to drive growth B2B suppliers need a great sales force and great digital assets and capabilities, the channel of choice being determined by whether or not the buyer is making a first-time purchase.4 In what concerns the digital investments which must reflect customers’ preferences and expectations, the survey findings suggested the need for two different sets: customer-facing investments, and sales-force investments. The 2017 Salesforce State of Marketing report, based on a survey of 3,500 marketers worldwide, revealed that for 57% of the marketing leaders surveyed artificial intelligence (AI) is considered as absolutely or very essential in helping them achieve a new gold standard for customer journeys, while as a result of changing customer expectations 64% of them said their company has become more focused on providing a consistent experience across every channel. On the other hand, in what concerns the likelihood of switching brands if a company doesn’t make an effort to personalize its communications to them, over 50% B2C consumers and 65% of B2B customers confirmed it. As argued by Emarsys, AI is expected to become one of the most valuable tools in a marketer’s arsenal by actually delivering on the promise of 1:1marketing, with AI technology marketers having an unprecedented opportunity to close the gap between data science and personalized customer experiences.5 But Emarsys attracted the attention on the fact that it is necessary to go beyond just incorporating AI into company’s marketing software, by conferring AI the ability to perform clearly specified functions. And as stated by Emarsys, the role of marketers is revolutionized by AI with the Emarsys B2C Marketing Cloud. Known as the first CRM built specifically for B2C marketers, Zaius underlined in July this year two closely related stats: while just 42% of online retailers and other e-commerce businesses are currently able to accurately measure customer lifetime value (CLV or CLTV, as a more profitable path to revenue), they are continuing to invest nearly 80% of their digital marketing budgets on customer acquisition, despite both the differences between the probabilities of selling to a current customer (60-70%, on average) and to a new shopper (520%), and the fact that the returning customers spend more than the first-time customers (67%, on average).6 Zaius recommends four key steps to maximizing CLV: unifying all company’s customer interactions in one system of record (a prerequisite to doing the other following steps well); modelling company’s customer lifecycle; leveraging company’s customer understanding to engage customers when and where it will be most effective; and identifying the key drivers CLV. 4
Angevine, C., Lun Plotkin, C. and Stanley, J., When B2B buyers want to go digital—and when they don’t, McKinsey Quarterly August 2017, retrieved on, from: http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/when-b2b-buyers-want-to-go-digital-andwhen-they-dont? 5 *** Artificial Intelligence: the bridge between data and personalization, Emarsys, retrieved on 12.09.2017, from: WP-AIM.pdf 6 *** Four Steps to Maximizing Customer Lifetime Value, Zaius, retrieved on 11.07.2017, from: https://www.marketingprofs.com/articles/2017/32418/four-steps-to-maximizing-customer-lifetime-value?
Holistic Marketing Management
CLV has to be seen as a better compass to guide company’s marketing automation, it was argued at the beginning of August this year in a Bain Brief, which revealed that beyond acknowledging that CLV matters, marketing leaders actually focus their spending and staff resources accordingly.7 These leaders are more likely: (3.5 times) to embed employees in marketing who specifically focus on understanding the customer's end-to-end experience; 91.9 times) to align their strategy with customer needs rather than channel needs; (1.9 times) to scrutinize CLV in addition to more traditional last-touch metrics (such as ROI, customer acquisition cost and click-through rate). And they are sharpening their skills step by step, by building targeted segmentation based on a customer’s overall value, using technology to develop a deeper understanding of company’s customers’ priorities and experience at each step of their relationship with the company, making data-informed hypotheses about which technologies to use in order to acquire and retain the customer. According to Bain’s representatives approach, the machines, metrics and minds can be brought together only by the most powerful marketing. There is no doubt, as highlighted by the Founder and CEO of Smith & Beta (opinion expressed as a Forbes Contributor), that the continual marketing change is fueled by digital, digital culture becoming more integrated with marketing, and learning becoming part of everyday work for marketers.8 And as the reputed BCG suggested while approaching the topic of “Transforming Marketing Talent”,9 marketing organizations are required – within the framework of the fast-evolving world of digital marketing – to expand the focus of their agile learning and development programs (which empower people to gain the new digital marketing skills and grow this way professionally) and generally their marketing efforts. We must always keep in mind the wisdom words of the Father of Modern Marketing, Philip Kotler – “The future isn’t ahead of us, it has already happened” – and those of his Mentor, Peter Drucker, the Father of Management – “The best way to predict the future is to create it”. And the last but not the least, those of our greatest Romanian sculptor Constantin Brancusi: “To see far is one thing, going there is another”. Theodor Valentin Purcărea Editor-in-Chief
Beaudin, L., Dennehy, B. and Grudnowski, J., Customer Lifetime Value: A Better Compass to Guide Your Marketing Automation, August 02, 2017 Bain Brief, retrieved from: http://www.bain.com/publications/articles/customer-lifetime-value.aspx 8 Kent-Smith, A., Change Management Is The New Marketing Capability, , retrieved on 12.09.2017, from: https://www.forbes.com/sites/onmarketing/2017/05/16/%E2%80%8Bchange-management-is-the-new-marketing-capability/#5ccad6616f15 9 *** Transforming Marketing Talent, retrieved on 09.09.2017, from: https://www.bcgperspectives.com/content/articles/marketingtechnology-organization-talent-revolution-in-digital-marketing/?chapter=7#chapter7
Holistic Marketing Management
Building a Path toward Digital Marketing Maturity. The impact of digital marketing in healthcare Dr. Costel Iliuță NEGRICEA Ioan Matei PURCĂREA
Abstract There is an essential role assigned to digital transformation leaders in the increasingly digital competitive environment in which only a few companies are developing into more mature digital organizations. In order to deliver successful customer experiences organizations need to achieve digital marketing success on the way of the never-ending digital journey, reinventing marketing with this kind of journey. This involves a better understanding the impact of digital transformation on professional skillsets, and the disconnect and the divide in digital marketing which is an integral part of any business, improving digital marketing skills, and investing in ongoing skills training, and the last but not the least finding and keeping talent. Research provides true lessons to learn on the role of digital transformation in improving healthcare ecosystems, on the impact of digital marketing in healthcare. Keywords: Digital transformation; Digital maturity; Digital marketing success; Marketing’s continuous reinvention; Digital marketing skills; Digital marketing in healthcare JEL Classification: L86; M15; M31; O33
Digital transformation, digital maturity, and digital marketing success At the end of May 2017, Stijn Viaene (a Full Professor and Partner at Vlerick Business School in Belgium, being the Director of the school’s Digital Transformation strategic focus area; also a Professor in the Decision Sciences and Information Management Department at KU Leuven), argued that in any business development leadership has been an indispensable factor, playing a crucial role for a successful digital transformation (which: involves rediscovering the nature of value creation, growing new core capabilities, and developing new skills) in the current digitizing economy. (Viaene, 2017) He underlined the role of digital transformation leaders in business’ s leading with the help of Social, Mobile, Analytics, and Cloud and Internet of Things technologies (SMACIT), developing opportunities and capabilities more quickly than their competitors by connecting ideas and people (see the figure below).
Holistic Marketing Management
Figure 1: Leadership personas enabling digital transformation Source: Viaene, S., What Digital Leadership Does, May 25, 2017, retrieved on 06.09.2017, from: http://www.europeanbusinessreview.com/what-digital-leadership-does/
Despite the real need today to adapt to increasingly digital market environments and to take advantage of digital technologies in order to improve operations, few companies are developing into more mature digital organizations (only those applying key practices such as: increasing collaboration, scaling innovation, and revamping their approach to talent - according to the 2017 Digital Business Report, MIT Sloan Management Review and Deloitte, based on a global survey of more than 3,500 managers and executives and 15 interviews with executives and thought leaders). It is interesting to note that the co-authors of the above mentioned report use the term “maturing” instead of “mature” to describe the most advanced studied companies and that because they consider digital maturity a continuous and ongoing process of adaptation to a changing digital landscape. (Kane, Palmer, Nguyen Phillips, Kiron and Buckley, 2017) It is also worth showing here that the first author of the above mentioned report, Gerald C. Kane (a professor of information systems and McKiernan Family Faculty Fellow at the Carroll School of Management at Boston College in Chestnut Hill, Massachusetts), made in April 2017 a clear distinction between “digital transformation” (understood as the adopting of business processes and practices to help the organization compete effectively in an increasingly digital world) - digital transformation being fundamentally about how the company responds to digital trends that are occurring (how it implements technology being only a small part of digital transformation) - and “digital maturity” (seen as a gradual process that unfolds across the organization over time, solved in the walking, being a natural process of learning how to respond appropriately to the emerging digital competitive environment). He recommended that in order to adapt to the increasingly digital competitive environment it is better to shift the focus on digital transformation to a focus on digital maturity. (Kane, 2017) In the latest article published in this journal we showed that business success is depending on the digital transformation on the way of delivering improved experiences, being imperative to respond to the identified changes, interacting accordingly with technology, also looking at the new environments created by the virtual and real worlds coming together. (Negricea & Purcarea, 2017) In fact, we have constantly pledged for digital intelligence and digital marketing effectiveness. (Negricea & Purcarea, 2017) And this within a context marked by what the Senior Director of Strategic Marketing for the Digital Marketing Business Unit at Holistic Marketing Management
Adobe, Matt Langie, highlighted in February 2014: “Today’s marketer must move the enterprise to a point where resources are aligned and optimized to achieve maximum results from digital marketing practices”. (Langie, 2014) And as we agree with the opinion expressed by Professor Kane (and not forgetting that digital maturity, as highlighted in the above mentioned report co-authored by him, is achieved through commitment, investment, and leadership), allow us to remember that Adobe Digital Marketing Maturity Assessment – that helps to identify organizations’ strengths and areas for improvement so as to build new revenue streams –was launched at the 2014 Adobe annual Summit conference, being introduce by Matt Langie. Digital Marketing success, according to Adobe, is dependent upon an organization’s focus and investment (in its People, Processes, and Products necessary to deliver successful customer experiences), being identified seven Digital Marketing dimensions (Channels, Audiences, Context, Content, Assets, Campaigns, and Data). Danielle MacInnis, a customer centric marketer (MacInnis, 2015) and the owner of MacInnis Marketing (a company which creates sales and marketing systems to attract customers and employees to companies that they love), showed – after reading the book co-authored by Lars Birkholm Petersen, Ron Person, and Christopher Nash (Birkholm Petersen, Person, and Nash, 2014) – how necessary it is in today’s marketing landscape controlled by customers to connect all the company’s activity to a maturity model based on the customer experience (see the figure below).
Figure 2: Customer Experience Maturity Model Source: MacInnis, D., How mature is your marketing? 15 May 2015, retrieved on 04.09.2017, from: http://www.macinnismarketing.com.au/blog/how-mature-is-your-marketing-
She also recommended Adobe Digital Marketing Maturity Self-Assessment Tool (see the next figure below).
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Figure 3: Adobe Digital Marketing Maturity Self-Assessment Tool Source: MacInnis, D., How mature is your marketing? 15 May 2015, retrieved on 04.09.2017, from: http://www.macinnismarketing.com.au/blog/how-mature-is-your-marketing-
And as digital maturity (view here as the organization’s capacity to deliver seamless, digital brand experiences) is constantly changing, the companies achieving the highest digital maturities are those having an adequate digital strategy including four essential components: Data-Driven Marketing, Optimal Customer Experience, Mobile Marketing, and Cross-Channel Marketing. (Lindsay, 2016) Marketing’s continuous reinvention In the first day of spring 2008 a challenging book was published, entitled: “The Age of Engage: Reinventing Marketing for Today’s Connected, Collaborative, and Hyperinteractive Culture”. (Shiffman, 2008) The author was Denise Shiffman, today Senior Vice President, Product Management & Strategy, Juniper Networks, and at that time Founder & Principal, Venture Essentials (a business strategy and digital transformation consultancy), her commentary being featured in The New York Times and BusinessWeek, and on CNET. In an editorial review, Eric Schmidt, CEO, Google, said that “…To master the profound changes in marketing forged by the evolution of the Web, every marketer must read this book!” On the other hand, the book was introduced as a “forward-thinking guide to marketing in the Live Web age…,” the author explaining “why and how CEOs must throw out the 'Four P s of Marketing' and replace them with a new paradigm of marketing in which email, viral buzz, search mechanisms, social aspects, widgets, avatars, authenticity, and story play major roles.” (amazon.com) Eight years later, in February 2016, to come closer to our times, another challenging book was published, entitled: “The Never-Ending Digital Journey: Creating new consumer experiences through technology”, (Angelani, Englebienne, and Migoya, 2016) the authors being three Globant’s representatives, Andres Angelani, Guibert Englebienne, and Martin Migoya. Globant (NYSE: GLOB) is well-known as a digitally native technology services company which creates digital journeys for its customers, having more than 5,600 professionals in 12 countries working for companies like Google, Linkedin, JWT, EA, and Coca Cola, among others. Globant Holistic Marketing Management
was named a Worldwide Leader of Digital Strategy Consulting Services by IDC MarketScape Report (2016), its client work being featured as business case studies at Harvard University, Massachusetts Institute of Technology and Stanford University. (globant.com/) The reputed Daniel H. Pink, author of “Drive and To Sell Is Human”, (amazon.com/) said in an editorial review that this book “…contains cutting-edge thinking about how to wed engineering and design to create digital experiences that will thrill a new generation. This is a must-read book.” On the other hand, also in February 2016, a Forbes Contributor, Jason Bloomberg, President of industry analyst firm Intellyx, (Bloomberg, 2016) approached the topic of “Reinventing Marketing with Consumer Journeys”, showing that Globant is, in the opinion of Martin Migoya, an engineering company for the brand, what represents a new paradigm, Globant’s customers not recognizing marketing in what this company is doing. Better understanding the impact of digital transformation on professional skillsets At the end of 2010 – while approaching the challenging topic of “The CMO’s Imperative. Tackling New Digital Realities” (Busby, Field, Forth, Harsaae, Rose and Salha, 2010) – The Boston Consulting Group (BCG) anticipated a significant skills-based battle over the next five years to define the next generation of marketing leadership. Five years later, in September 2015 – while approaching another challenging topic, The Talent Revolution in Digital Marketing” – BCG’s representatives (Field, Visser and De Bellefonds, 2015) showed the findings of the research (commissioned by Google and supported by digital-training experts The Knowledge Engineers and a team of marketing industry organizations) assessing the current state of digital skills in marketing organizations (the survey being focused on companies in the UK and Germany). The 1,100 digital marketers were asked to assess their organizations’ capabilities across a digital-marketing framework including nine categories of skills (planning: marketing and brand strategy, partner management, and critical organization enablers; execution: digital targeting, digital-content development and distribution; expertise in seven digital channels search, websites, display media, mobile advertising, mobile Web - and applications - social media, and video; measurement: metrics and measurement, marketing analytics, and testing). The average digital-skills score for all marketers was 57 (on the well-known BCG’s 100-point Digital Capabilities Index with 100 indicating best practice). The analysis underlined among other aspects: the need of making the development of digital capabilities a top business priority, and significantly boosting longer-term learning and development (L&D) programs to produce these needed skills; the shortage of digital talent (better talent leading to better business performance). In March 2017, BCG’s representatives (Field, De Bellefonds, and Friedel, 2017) approached again a challenging topic – “A Disconnect and a Divide in Digital-Marketing Talent” – analyzing the new BCG research (late 2016, in collaboration with Google Digital Academy), some 2,200 marketers (at 141 advertisers, and 2,900 employees at 126 advertising agencies) being surveyed on their organizations’ digital-marketing capabilities and learning and Holistic Marketing Management
development efforts. The findings revealed among other aspects that: consumers’ purchase pathway for companies in all industries are reshaped by digital and mobile channels and advanced marketing techniques; digital marketing is already moving toward new capabilities (many companies struggling to develop digital content and employing social media), but marketers are still using new and advanced tools in old-fashioned ways; there is more inertia than action at the level of advertisers (being identified a lake of: understanding at senior levels of marketing management about the strength of companies’ digital capabilities; vision; organizational support in attracting and retaining critical digital talent; of assessment); one of the biggest advantages that digital technologies provide marketers is the ability to test and adjust creative content and campaign formats and methods; it is important to build long-term digitalmarketing partnerships that work. According to the point 5 (“Roundtable Discussion: The impact of digital of transformation on professional skillsets”) of the Digital Marketing Institute Industry Advisory Council Minutes, April 2017, (digitalmarketinginstitute.com/) various aspects of digital transformation in relation to its impact on business to the skillsets needed in the future represented the focus of the roundtable. It is well-known (digitalmarketinginstitute.com/) that this Industry Advisory Council (formally called the Syllabus Advisory Council) ensures that the Certified Professionals have learned the most up to date necessary digital skills, core competencies and knowledge (certifications from the Digital Marketing Institute’s Certification Framework being implemented in over 90 countries by Universities, Colleges, Training companies and Employers, being a compatibility with both the European Qualifications Framework/EQF, and the European Higher Education Area/EHEA). Within the context of the above mentioned roundtable, Olivia Kearney, CMO at Microsoft, underlined that it is essential to be an influencer and authentic while using the opportunity of digital transformation to disrupt, engaging accordingly with the customer. On the other hand, Ciaran O’Muirthile, Head of New Customer Onboarding EMEA at Google, highlighted the need of having specialisms in particular fields, taking into account the fragmented approach for customers. Digital Marketing Institute (founded in 2008) considers that: there is a global crisis in digital skills, the organization’s ability to successfully leverage digital being hindered by this lack of skilled professionals; digital marketing is now an integral part of any business in today’s digital economy. (digitalmarketinginstitute.com/) The findings of its Digital Skills Report 2016 revealed (digitalmarketinginstitute.com/) that the actual level of marketers’ skills is equally low across USA, UK and Ireland (38% on average), despite the fact that they perceived themselves as very or fairly competent in digital marketing (USA, 59%; UK, 47%; Ireland, 51%). 908 marketing professionals across a variety of industries were tested, but only 8% of these marketers achieved entry level skills according to the competency-based tests (the majority of these marketers failing to achieve entry level competency in digital marketing ;skills, as shown above - 38%). The research also revealed that: the leading skills gap in organizations is strategy Holistic Marketing Management
and planning (58% in USA, 55% in UK and 42% in Ireland); becoming more digitally focused will be critical to marketers’ organization in the next two years (USA, 63%; UK, 52%; Ireland, 72%); marketers feel that there is a lack of urgency to develop a focus on digital transformation in their organization (in the case of 59% of American marketers this being the primary point of anxiety), and that to remain competent in their current role in the future they need to improve their digital marketing skills (69% in UK and USA, and 86% in Ireland). (O'Brien, 2016) As shown on February 22, 2017 by AMA’s Marketing News Weekly, (Qaqish, 2017) marketing’s ability to generate revenue is negatively impacted by the lack of digital marketing skills, being a real need for companies to invest in ongoing skills training (see the figure below), the importance of this training to the performance of the company needing to be recognized by HR. Finding and keeping talent is the no. 1 issue for any CMO, followed closely by keeping skills current. Within this framework, the education and knowledge (required to be a successful digital marketer) provided by the Modern Marketing University was highlighted, launched by Microsoft in 2015.
Figure 3: Marketing leaders must present a business case for investing in ongoing skills training for their people Source: Qaqish, D., Who Should Close the Digital Skills Gap, Marketing or HR? AMA, Marketing News Weekly, Feb. 22, 2017
Aligning marketing with the patient decision journey. The role of digital transformation in improving healthcare ecosystems There is no doubt in the digital era that person-to-person relationship in healthcare is becoming increasingly essential, healthcare marketers being convinced that patients are more and more eager to access information that empowers them, digital health tools boosting patients’ awareness and control of their own health. That is why building an adequate patient experience framework - including a patient decision journey map, so as to better understand all the touchpoints with patients and to improve the quality and consistency of all these touchpoints represents a real challenge. (Purcarea, 2016) In fact, as shown on the site of our journal at the beginning of June 2016: “…creating superior patient experience is a balance of art (including Holistic Marketing Management
considering the marketing technology landscape to meet the increasing patient expectations) and science (including integrating marketing budgeting, planning and analytics). Patient experience (defined by The Beryl Institute as the sum of all interactions, shaped by an organization’s culture, that influence patient perceptions across the continuum of care) is considered a macro issue, while transforming the patient experience is one of the imperatives of the relevant market, and contextualized patient experience across touch points is one of the priority areas in which patient-obsessed healthcare companies are investing.” (holisticmarketingmanagement.ro/) In May 2016 McKinsey’s representatives argued how important it is for pharma marketers to engage with patients in ways that feel natural and personal, which translates into better understanding how consumers make healthcare decisions, and introduced a so-called CareFlow (see the figure below) whose points of interactions are vital in (re)allocate investment and attention accordingly. (Fox, Hofmann and Paley, 2016) This map can be designed on the basis of electronic medical records, surveys of patients and physicians, analysis of the data available on social media and from web-engine search trends, consumer data etc.
Figure 3: CareFlow maps how people make healthcare decisions Source: Fox, B., Hofmann, C., and Paley, A., How pharma companies can better understand patients, May 2016
It is well-known that marketing programs are guided by researches creating the so-called “sales funnel” (sales process, revenue funnel) – understanding touch points through this metaphor of a “funnel” – in which possible customers can experience as they go from prospect Holistic Marketing Management
to lead to customer to repeat buyer, in generally being identified seven phases: awareness, interest, evaluation, decision, purchase, reevaluation, and repurchase. McKinsey’s representatives introduced in June 2009 the “consumer decision journey” concept, taking into account that the funnel concept failed to capture all the touch points and key buying factors because of both the explosion of product choices and digital channels, and the emergence of an increasingly well-informed, knowledgeable consumer. (Court, Elzinga, Mulder, and Vetvik, 2009) They argued that this approach of the consumer decision journey is applicable to any geographic market (having different kinds of media, Internet access, and wide product choice), and all companies will be force to adopt new ways of measuring consumer attitudes, brand performance, and the effectiveness of marketing expenditures across the whole process, because of the increasing complexity of the consumer decision journey. In February 2017, on the occasion of an interview for McKinsey, Frank Westermann, the CEO and cofounder, and Anton Kittelberger, the COO of mySugr (a start-up that designs apps for diabetes management), on the topic of the reshaping of healthcare with the help of patient apps, starting from the fact that innovation in digital health will be driven by the patient and by patient-centric solutions. (Biesdorf, 2017) According to mySugr’s vision, technology can enable more touchpoints with a physician in order to improve patient’s well-being. For instance mySugr launched in the USA a coaching product linking patient to a certified diabetes educator who has full access to patient’s data and can give him advice at any time. In April 2017, during a conversation with McKinsey’s representatives, Stuart McGuigan, the CIO of Johnson & Johnson (J&J), described how this health-technology innovator is supporting faster development of smart healthcare products and improving customer and patient experiences with the company. (Chilukuri and Van Kuiken, 2017) McGuigan showed among other aspects that J&J can compare treatment plans and outcomes, and measure treatment efficacy (by using data lakes, analytics, machine learning, and other emerging technologies to understand what type of patient in what type of condition responds best to which messages and care protocols). In June 2017, Roberto Pucci, Executive Vice President for Human Resources at Sanofi, argued in an interview for McKinsey that the relationship between technology and medicine will continue to evolve rapidly, healthcare being at an inflection point. (Meaney, 2017) A month later, in July 2017, also on the occasion of an interview for McKinsey, Jared Josleyn, the global head of corporate development at Alphabet-owned Verily Life Sciences (a data healthcare company that extracts high-fidelity data from the healthcare ecosystem and applies it to patients’ lives to improve human health), underlined the importance of the convergence of data from every part of the healthcare system, this kind of convergence being demanded by a holistic approach to patients. (Raviscioni, 2017) In order to enable better management of health and disease, Verily collects and integrates massive and disparate data sets, observes new patterns, extracts insights, and provides those insights to clinicians and patients. For example, in the case of medical-device hardware, Verily uses data and technology to improve healthcare ecosystems Holistic Marketing Management
monitoring for patients who are diabetic, by starting with the problem first (continuous glucose monitor or the diabetic-retinopathy screening), doing the assessment, and if an available wearable or other sensor doesn’t collect the right data (because, for instance, of the applications currently available which are not wholly effective for patients with type 2 diabetes, not being user-friendly, being too narrowly focused, or overlooking other important behavioral aspects of diabetes management; Verily is developing with Nikon a diabetic-retinopathy screening tool) it can provide inputs back to the patient, the providers, and the clinicians. On the other hand, in order to give visibility to operational inefficiencies in hospitals and to reduce negative patient outcomes and healthcare costs, Verily is using together with 3M, for example, machine learning (used to learn and predict) and the so-called “Performance Matrix”. Verily is also well-known for its scientific team involved in building first-in-class systems-biology programs and analytical tools and associates these tools with things like digital pathology, which Google Brain (the mission of the Brain team being “Make machines intelligent. Improve people’s lives”). Also in July 2017, in the work paper cited above and entitled “Adapting Your Company to a Changing World”, some important examples were given such as: Cardinal Health (a global, integrated health care services and products company), which established in 2014 its Fuse innovation lab (a new innovation center) to bring together partners (physicians, patients, pharmacists, and providers) in order to deeply understand issues, craft solutions, and try them out (the ideas proposed regularly by customers and employees being screened and tested using agile one-week sprints), framework in which maintaining a digitally supportive culture is considered to be critical; Cigna, the global health care services company, well-known for formal education initiatives both inside and outside the organization, by making learning a priority for both leaders and employees, one hand, and for health care professionals, sales brokers, and consumers (to help keep them healthy), on the other hand, also going beyond traditional training initiatives (considering the principle of meeting users where they are. At the end of August 2017 we remarked an interesting signal coming from Australia under the title “Big Data Analytics and IoT can solve some of the hardest medical problems”. Within this context it was shown that doctor’s notes and prescriptions, imaging results and laboratory and pharmacy data, data in EPRs or electronic patient records, machine generated or sensor data, social media feed, including blogs, tweets and Facebook status updates etc. (data of the medical information of a patient) are all included in Big Data and the Internet of Things healthcare. For example, wearables and sensors (BP monitors, electronic scales, SpO2 sensors, and proximity sensors) can collect health data on patients in their homes, pushing then all data into the cloud (cloud-based Big Data services have the potential to lower costs by approximately 45%). There a lot of benefits: diseases could be prevented or treated at the early stages, unnecessary hospitalization, visits to emergency rooms and increase in ailment severity could be easier prevented. (Mehta, 2017) According to “The State of Digital Marketing in Healthcare Moving Toward 2017. Industry Perspective: Where We Are, What’s Changed in a Year” - an annual report, released in Holistic Marketing Management
November 2016, sharing the results of the second annual healthcare digital marketing survey administered by Greystone.Net and Klein & Partners - digital marketing has become more prevalent and sophisticated in healthcare. The Healthcare Marketing Leadership Index (respondents grading the effectiveness of their marketing efforts in the areas of CRM, social media, website strategy and development and digital marketing) was a new feature in the 2016 survey (compared to the 2015 survey, the first one). In the figure below it can be seen this reportâ€™s findings with regard to online/digital marketing currently used at Hospital/System:
Figure 4: Online/Digital Marketing Currently Used at Hospital/System Source: The State of Digital Marketing in Healthcare Moving Toward 2017. Industry Perspective: Where We Are, Whatâ€™s Changed in a Year, Greystone.Net and Klein & Partners, November 2016
Other findings were in relation with the main purpose of the consumer mobile app, and of physician mobile app, as it can be seen in the figure below:
Figure 5: Main purpose of the consumer mobile app, and of physician mobile app Source: The State of Digital Marketing in Healthcare Moving Toward 2017. Industry Perspective: Where We Are, Whatâ€™s Changed in a Year, Greystone.Net and Klein & Partners, November 2016
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Other interesting findings were related to: • the mapping (as the first step in understanding and optimizing the customer experience) of the “mobile” and “digital” customers’ journey, being revealed that the proportion of the healthcare organizations which have mapped their mobile and digital customers’ journey has increased significantly in 2016 (mobile, 49%; digital, 62%), compared to 2015 (mobile, 35%; digital, 46%); • (another new question) the embracing of digital transformation by healthcare organizations, being revealed that is still a long way to go in fully embracing throughout organization (completely 29%; mostly 46%; somewhat 23%; not at all 2%); • (another new question) the pressing issues in healthcare marketing, as shown in the figure below:
Figure 6: The pressing issues in healthcare marketing Source: The State of Digital Marketing in Healthcare Moving Toward 2017. Industry Perspective: Where We Are, What’s Changed in a Year, Greystone.Net and Klein & Partners, November 2016
It is worth mentioning within this framework that on 11TH & 12TH October 2017, in London, UK, the Conference “Digital marketing in healthcare” will take place with the theme “Embracing Digital Transformation in the Pharma and Healthcare Sectors”. (wplgroup.com/) The Agenda is highlighting the real need of improving the quality of disease detection and management by the growing adoption of personal medical devices, social media, and electronic medical records, arguing that only if companies can translate “big data” into actionable business intelligence that will revolutionise healthcare delivery will be realized the potential of “big data” to transform the industry.
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Conclusions There is no doubt that one of the main barriers to company success in the digital age are the digital culture deficiencies, such as those identified by the 2016 McKinsey Digital survey of global executives: functional and departmental silos, a fear of taking risks, and difficulty forming and acting on a single view of the customer. (Goran, LaBerge and Srinivasan, 2017) The most significant self-reported barriers to digital effectiveness – after cultural and behavioral challenges (33% of respondents) – according to this research were: lack of understanding of digital trends (25%); lack of talent for digital (24%); lack of IT infrastructure (22%); organizational structure not aligned (21%); lack of dedicated funding (21%); lack of internal alignment - digital vs traditional business (19%); business process too rigid (16%); lack of data (13%); lack of senior support (13%). McKinsey’s representatives expressed the opinion that risk aversion, customer focus, and silos (identified by respondents as the critical cultural intervention points) constitute a valuable road map for reshaping an organization’s culture. Understanding digital transformation correctly is a real business problem. Experts are continuously exchanging opinions on digital experience, fear of digital experience, digital experience survival strategies. (Seebacher, 2017) Customer experience of mobile apps, for example, is continuously evolving: wearables and integrated mobile apps have deeply penetrated the industries; customer experience in Augmented Reality mobile apps is enhanced by contextual response to external information, responding dynamically to user’s environments, and real time interpretation of gestures with minimal to no special commands from users; user experience is connected with Internet of Things (IoT) Apps; voice assistants are operational in smartphones (Apple’s Siri; Google Assistant for Android phones); the chatbot app landscape is in full evolution etc. (Mishra, 2017) Paraphrasing some ideas resulting from the analysis provided by the above mentioned 2017 Digital Business Report, MIT Sloan Management Review and Deloitte, we can say that in order to build a path toward digital marketing maturity organizations should consider some principles such as: commit to and make digital marketing a core part of their culture; to ensure the digital marketing skills and resources needed to scale digital marketing initiatives; recruiting, retaining, and developing staff with digital marketing skills; putting the digital marketing advocates to work on various digital marketing experiments and initiatives, and advance their skills proven by different contributions to the wanted/necessary digital marketing shift. And… … the last but not the least, focusing on new market-maker, the dynamic digital customer, knowing that nobody can afford to lose the today’s dynamic digital customer, starting from its digital journey map, continuously aligning digital capabilities with operations, technology and digital marketing strategy, innovating and confirming this way organization’s ability to react to digital marketing trends and to become more digitally mature as an ongoing process.
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References Angelani, A., Englebienne, G. and Migoya, M., The Never-Ending Digital Journey: Creating new consumer experiences through technology, Roundtree Press, February 16, 2016, retrieved on 04.09.2017, from: https://www.amazon.com/Never-EndingDigital-Journey-experiences-technology/dp/1937359921/? Biesdorf, S., How health apps are promising to reshape healthcare, Interview - February 2017 with mySugr’s CEO and cofounder Frank Westermann, and the COO Anton Kittelberger, retrieved on 09.09.2017, from: http://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/how-health-apps-are-promising-toreshape-healthcare Birkholm Petersen, L., Person, R., and Nash, C., Connect: How to Use Data and Experience Marketing to Create Lifetime Customers, Wiley, 1 edition, September 15, 2014 Bloomberg, J., Digital Influencer Martín Migoya Of Globant: Reinventing Marketing With Consumer Journeys, Feb 5, 2016, retrieved on 04.09.2017, from: https://www.forbes.com/sites/jasonbloomberg/2016/02/05/digital-influencer-martin-migoya-ofglobant-reinventing-marketing-with-consumer-journeys/#48696c8648e2 Busby, E., Field, D., Forth, P., Harsaae, J., Rose, J., and Salha, H., The CMO’s Imperative. Tackling New Digital Realities, November 30, 2010, retrieved on 09.09.2017, from: https://www.bcgperspectives.com/content/articles/marketing_media_entertainment_cmos_imperative/ Chilukuri, S. and Van Kuiken, S., Healthcare giant shares prescription for digital reinvention, April 2017, retrieved on 09.09.2017, from: http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/healthcare-giant-sharesprescription-for-digital-reinvention Court, D., Elzinga, D., Mulder, S. and Vetvik, O.J., The consumer decision journey, McKinsey Quarterly - June 2009, , retrieved on 09.09.2017, from: http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decisionjourney Field, D., Visser, J. and De Bellefonds, N., The Talent Revolution in Digital Marketing, September 25, 2015, retrieved on 09.09.2017, from: https://www.bcgperspectives.com/content/articles/marketing-technology-organization-talent-revolution-indigital-marketing/ Field, D., De Bellefonds, N., and Friedel, F., A Disconnect and a Divide in Digital-Marketing Talent, March 21, 2017, retrieved on 09.09.2017, from: https://www.bcg.com/publications/2017/sales-leadership-disconnect-divide-digital-marketing-talent.aspx Fox, B., Hofmann, C., and Paley, A., How pharma companies can better understand patients, May 2016, retrieved on 09.09.2017, from: http://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/how-pharma-companies-canbetter-understand-patients Goran, J., LaBerge, L. and Srinivasan, R., Culture for a digital age, McKinsey Quarterly, July 2017, retrieved on 06.08.2017, from: http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/culture-for-a-digital-age Kane, C.G., Palmer, D., Nguyen Phillips, A., Kiron, D., and Buckley, N., Adapting Your Company to a Changing World, July 13, 2017, retrieved on 04.09.2017, from: http://sloanreview.mit.edu/projects/achieving-digital-maturity/ Kane, G.C., Digital Maturity, Not Digital Transformation, April 04, 2017, retrieved on 04.09.2017, from: http://sloanreview.mit.edu/article/digital-maturity-not-digital-transformation/ Langie, M., What’s Your Score? Assessing Your Digital Marketing Maturity, February 24, 2014, retrieved on 04.09.2017, from: https://blogs.adobe.com/digitalmarketing/digital-marketing/whats-score-assessing-digital-marketing-maturity/ Lindsay, K., The Four Essential Pieces of Digital-Marketing Maturity, September 23, 2016, retrieved on 04.09.2017, from: https://blogs.adobe.com/digitalmarketing/digital-marketing/the-four-essential-pieces-of-digital-marketing-maturity/ MacInnis, D., How mature is your marketing? 15 May 2015, retrieved on 04.09.2017, from: http://www.macinnismarketing.com.au/blog/how-mature-is-your-marketingMeaney, M., Interview - June 2017 with Roberto Pucci, Executive Vice President for Human Resources at Sanofi, What talent management can do to shape next-generation pharma leaders, , http://www.mckinsey.com/industries/pharmaceuticals-andmedical-products/our-insights/what-talent-management-can-do-to-shape-next-generation-pharma-leaders
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Mehta, R., Big Data Analytics and IoT can solve some of the hardest medical problems, Aug 27, 2017, retrieved on 07.09.2017, from: http://customerthink.com/big-data-analytics-and-iot-can-solve-some-of-the-hardest-medical-problems/? Mishra, V., Redefining Customer Experience with Technological Advancements in Mobile Apps, Aug 13, 2017, retrieved on 22.08.2017, from: http://customerthink.com/redefining-customer-experience-with-technological-advancements-in-mobile-apps/? Negricea, C.I. & Purcarea, I.M., Digital marketing challenged by delivering value in the flux business environment, Holistic Marketing Management, Volume 7, Issue 2, 2017, pp. 07-13 Negricea, C.I. & Purcarea, I.M., Digital intelligence and digital marketing effectiveness, Holistic Marketing Management, Volume 7, Issue 1, 2017, pp. 12-17 O'Brien, C., Missing the Mark: The Digital Marketing Skills Gap in the USA, UK & Ireland, retrieved on 09.09.2017, from: https://digitalmarketinginstitute.com/the-insider/missing-the-mark-the-digital-marketing-skills-gap-in-the-usa-uk-ireland Purcarea, T.V., Creating the Ideal Patient Experience , J Med Life. 2016 Oct-Dec; 9(4): 380–385., retrieved on 09.09.2017, from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5141398/ Qaqish, D., Who Should Close the Digital Skills Gap, Marketing or HR? AMA, Marketing News Weekly, Feb. 22, 2017, retrieved on 09.09.2017, from: https://www.ama.org/publications/eNewsletters/Marketing-News-Weekly/Pages/digital-skillsgap-marketing-or-hr-problem.aspx Raviscioni, M., Using data and technology to improve healthcare ecosystems, Interview with Jared Josleyn, Video - July 2017, retrieved on 09.09.2017, from: http://www.mckinsey.com/industries/pharmaceuticals-and-medical-products/our-insights/usingdata-and-technology-to-improve-healthcare-ecosystems Seebacher, N., How to Make Sense of Digital Experience, Jul 7, 2017, retrieved on 28.08.2017, from: http://customerthink.com/how-to-make-sense-of-digital-experience/? Shiffman, D., The Age of Engage: Reinventing Marketing for Today’s Connected, Collaborative, and Hyperinteractive Culture, Hunt Street Press, 1st edition, March 1, 2008 *** https://www.amazon.com/Age-Engage-Reinventing-Collaborative-Hyperinteractive/dp/0979802806 *** https://www.globant.com/new/globant-recognized-leader-digital-customer-experience-idc-marketscape *** *** https://www.amazon.com/Age-Engage-Reinventing-Collaborative-Hyperinteractive/dp/0979802806 *** https://uploads.digitalmarketinginstitute.com/files/iac_minutes_April2017.pdf? *** Certifications Framework, retrieved on 09.09.2917, from: https://digitalmarketinginstitute.com/institute/framework *** Setting the Standard. Providing the framework for the digital profession, retrieved on 09.09.2917, from: https://digitalmarketinginstitute.com/institute *** Missing the Mark: The Digital Marketing Skills Gap in USA, UK & Ireland, Digital Marketing Institute, retrieved on 09.09.2017, from: https://digitalmarketinginstitute.com/business/digital-skills-report *** http://holisticmarketingmanagement.ro/creating-superior-patient-experience-a-balance-of-art-and-science/ *** The State of Digital Marketing in Healthcare Moving Toward 2017. Industry Perspective: Where We Are, What’s Changed in a Year, Greystone.Net and Klein & Partners, November 2016, retrieved on 09.09.2017, from: the-state-of-digital-marketing-inhealthcare-in-2017 *** http://www.wplgroup.com/aci/wp-content/uploads/sites/2/2017/04/Digital-Marketing-in-Healthcare-Agenda.pdf
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International Quality Platform, Save Food III, GlobalG.A.P., and Food Safety & Human Health Congress 2018 Bernd HALLIER
Prof. Dr. Bernd Hallier during a recent Interview (in his residence) for German Public TV ZDF, Second Program. The topic of the interview was the History of Supermarket in Germany Prof. Dr. Bernd Hallier, President of the European Retail Academy (ERA), a distinguished Member of the Editorial Board of “Holistic Marketing Management” Journal (he is also an Honorary Member of the Romanian Scientific Society of Management – SSMAR, and also of the Romanian Distribution Committee, which has awarded to him, in 2006, the title of “Designer of the Year”, as the “designer” of ERA) attracted our attention on great events happening in the last time at the AgriBusiness Forum level, and allowed us to present them. It is well-known that ERA was founded in February 2005 at the World’s No. 1 Retail Trade Fair EuroShop (Düsseldorf, Germany) by Prof. Dr. Bernd Hallier and some of his academic friends to support the Bologna-process and the interaction between theory and application in the field. Today www.european-retail-academy.org has links to more than 225 research-institutes for trade/marketing/ tourism all over the world. The ERA Hall of Fame selects each year distinguished personalities who stands out in terms of outstanding contributions within the international interaction of research and applied sciences. Philip Alexander Nobel, John L. Stanton, Léon F. Wegnez, Romano Prodi, Klaus Toepfer, and Robert Aumann were the distinguished personalities who have been honored by ERA in the last six years. Continuously subsites have been launched to target special interest groups via: Competence for Vocational Training, AgriBusinessForum, Environmental Retail Management, Forum Art Business, Global Green University, Art/Therapy/Geomancy (KTG) and Urban Revitalization. According to Prof. Dr. Bernd Hallier: “Those information platforms are partly Number 1 at Google in their segments; but even more important are our student-activities: they are our investment into Future and Peace”. It is also worth recalling the agenda of the productive meeting between Professor Bernd Hallier and Professor Ovidiu Folcuţ, Rector of the Romanian-American University (RAU), on the occasion of the last visit in Romania. This Agenda included significant items of discussion, such as: the international transfer of know-how between business and universities, bringing more transparency on retailresearch and retail-education; the actual need of anticipating skill needs in the commerce sector, taking into account the attention to be paid to the evaluation of philosophies offered by the steady upgrade of retailtechnologies; the developing cooperation between Germany and Eastern markets. Within this context, Professor Bernd Hallier introduced the challenging volume “Food Waste Management” (based on an EU-project FORWARD), the reduction of food waste being seen as an important lever for achieving global food security, freeing up finite resources for other uses, diminishing environmental risks and avoiding financial losses (not forgetting to suggest from the very beginning the distinction between “food loss” and “food waste”). It was underlined, for example, that: there are substantial losses along the stages of the food chain (agricultural production, post-harvest handling and storage, processing and packaging, distribution, and consumption); the reduction of food losses is seen as an important starting point for achieving global food security, freeing up finite resources for other uses, diminishing environmental risks and avoiding financial losses.
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International Quality Platform On August 15, 2017 AgriBusiness Forum let us know that a Memorandum of Understanding will be signed on October 8, 2017 at ANUGA (the world’s leading food fair for the retail trade and the food service and catering market), among others, between EQA and European Retail Academy to promote research and penetration of know-how about Quality Assurance and Improvement. The Food Exhibition Anuga was founded in 1919 as an exhibition rotating between German cities. Since 1924 it is permanently based in Cologne and exhibits biannually. It is the world-leader in its sector, covering about 300.000 square meters, being attended in 2017 by about 7200 exhibitors (about 90% foreigners). “An excellent platform for international contacts”, Prof. Dr. Hallier stated in the invitation to his network of Professors.
Save Food III AgriBusiness Forum informed us on July 7, 2017 that the network “Save Food” was founded in 2013 at the Interpack Exhibition of Messe Duesseldorf in Germany - today it has about 900 supporters from all regions of the world and from all sectors along the Total Supply Chain from farm to fork! The photo below shows the CEO of Messe Duesseldorf, Werner Dornscheidt, at the founding conference in 2013 together with the former UNEP Director General Prof. Dr. Klaus Toepfer and ERA President Prof. Dr. Bernd Hallier. At its third World Conference Save Food presented among many other case-studies an example about mangos in Kenya. In the past, in times of over-supply they became food waste. Now in a pilot-project they are sliced, dried, packed and finally exported. Prof. Dr . Bernd Hallier decided to support this project in Kenya together with the Education Qualification Alliance (EQA)/Bonn and Warsaw and by Globalgap to educate about 200 mango-farmers towards Globalgap Certification. The potential annual volume for export might go step by step to about 30.000 tons. Partner for the vocational and academic training will be the University of Nairobi.
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ERA President Prof. Dr. Bernd Hallier, Prof. Dr. Klaus Toepfer, former UNEP Director General, and the CEO of Messe Duesseldorf, Werner Dornscheidt
GlobalG.A.P. On June 15, 2017, AgriBusiness Forum let us know that after starting in 1994/96 tracing/tracking for beef and cows as an anti-crisis tool against the mad cow-disease/BSE the EHI Retail Institute started in 1997 to create Eurepgap/Globalgap as a proactive Food Safety Concept for fruit and vegetables. Now, 20 years later, Prof. Dr. Bernd Hallier and the Globalgap CEO Dr. Kristian Moeller remember proudly the GlobalG.A.P. Milestones 19972017 being edited as a book for distribution to Universities. In 2017, GlobalG.A.P. is the internationally recognized standard for farm production and food safety/sustainability. It is integrating the Total Supply Chain as its membership split shows: 12 percent coming from retail, 42 percent being associate members and 46 percent suppliers.
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Food Safety & Human Health Congress 2018. Qualification/Certificates AgriBusiness Forum informed us on February 20, 2017 that an European Qualification Alliance (www.EQAsce.de) was established in 2015 in Bonn/Germany to coordinate members in the legal form of a COOPERATIVE to develop qualifications and to provide joint certificates in the fields of Food Chains/ Risk and Crisis Management/ Food Safety & Health. Courses are part of a modular system and are covering topics from farm to fork - it is a schedule of lifelong education, also as an intertwine between academic and vocational programs. The Bonn Office was followed by a Warsaw/Poland Office and will be further expanded in 2017 by a Segovia/Spain-Office. EQA is promoted by Prof. Dr. B. Hallier/ European Retail Academy Link
Agricultural Universities in the 21st Century AgriBusiness Forum also let us know about the Symposium â€œAgricultural Universities in the 21st Century: Importance of Technology and Information Transfer for Program Sustainabilityâ€?, April 2-April 8, 2017, organized by Louisiana State University Agricultural Center (LSU AgCenter), Visegrad University Association (VUA) and Slovak University of Agrivulture in Nitra. Program included: Lessons Learned from Land Grant University System in the United States; Strategies for Technology and Information Transfer; Alumni and Donor Relation; University Marketing and Branding; Public-Private Partnerships and Role of Sponsored Research; Entrepreneurism, Food Company Incubator, and Spin-Off Initiatives; Role Holistic Marketing Management
of Genetic Modification of Crops in Global Agriculture; Examples of Strategic Information Transfer at LSU AgCenter.
Standards Needed AgriBusiness Forum also underlined the global imbalances between supply and demand within the Total Supply Chain need a constructive dialogue about the understanding of how modern supply chains work and how commercial practices could be optimized. Tools for this optimization are Consistency and Capacity, Data and Fair Benefit Sharing. The KLU Logistics University/Hamburg/Germany together with the ECR-Community Shrinkage & On-Shelf Availability Group disseminated its proposals in an International Workshop in Hamburg on January 19, 2017. Among Retail participants were Ahold, Carrefour, European Retail Academy, Lidl, Metro, Tesco and Walmart.
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Food Value Chains AgriBusiness Forum also let us know that – within a PPP supported by the German DAAD Academic Exchange Service – Prof. Dr. Bernd Hallier discussed the food security structures and developments of the last 30 years with Dr. L. Emilio Morales from the University of New England/Australia and Christian Deutsch from the University of Bonn/Germany. According to Professor Hallier for all value chains “trust via a connected responsibility chain” has to be created by tracing/tracking like in Germany firstly organized by Orgainvent (Link) in response to the BSE-Mad Cow Crises 1994/1996: see also TILS Cuttinghouse (YouTube Link). In the future there will be an additional focus on the topic of Food Waste Management Systems like described in the following e-learning project (Download eBook). Social responsibility for example via cooperations with Food Banks will be essential for Corporate Social Responsibility. Alina Pukhovskaya (CV) is writing with the support of the European Retail Academy her PhD about this "hot" topic.
Meat Market Observatory AgriBusiness Forum also informed us that to bridge frictions about prices between farmers and retailers the European Commission launched a Meat Market Observatory to create more transparency in the chain for beef/veal/pigmeat. The observatory works on the same model as the milk market observatory. Retail is represented via EuroCommerce/Brussels.
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Isabelle WEGNEZ - The Consumer Actor and the Distributive Trade: An Impossible Union? We offer you, by courtesy of the Director of Editorial, the above mentioned Editorial published in the prestigious “Distribution d’aujourd’hui”, Brussels, December 2016
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Isabelle WEGNEZ - Corporate Social Responsibility for a Better World We offer you, by courtesy of the Director of Editorial, the above mentioned Editorial published in the prestigious “Distribution d’aujourd’hui”, Brussels, February 2017
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Marketing’s Renaissance by Committing to Improve CX Theodor Purcărea Abstract It’s the time of CX initiatives, of the harmony between CMI and CHS, between company’s CMO and CCO. It’s the time of realizing the 360-degree customer view, revenue-focused marketers acting to reduce the risk of experimentation and to support the fast-paced change, to consider advertising and content together, to leverage the power of customer data, and increasingly competing on the basis of improving CX, leveraging the proper data science tools and methods, fueling better business decisions, and faster. Looking to the future, marketing organization’s is challenged to become more agile, engaging, and effective, marketers being forced to engage in seamless conversations with customers across channels and devices, taking full advantage of new digital and advanced analytics tools, and better understanding customer value, customer data, and customer journey, making the difference between what is important, and for who. CMO is facing an increased responsibility, and need to prove the necessary skills, becoming the voice of the customer at the leadership table, and playing a key role in company’s life and performance. Keywords: Stakeholder-centric companies; CX; CCO; CHS; CMI; CMO JEL Classification: L84; L86; M31; O33
The need for Stakeholder-centric companies In the latest issue of our journal (Purcarea, 2017) we have seen that the voice of the customer in the organization is now the modern Chief Marketing Officer (CMO), who is challenged to mix data science, technology and marketing know-how with experience, capitalizing on the numerous opportunities in transforming the Customer Experience (CX). Marketers are under a continuous pressure of proving their impact on company’s revenue, customers driving up revenue risk which is serving to accelerate companies’ CX initiatives. In June this year, the so-called “1-Day Catalyst” recalled that: ▪ research done on the impact of a customer- first strategy showed how it provides a positive ROI: 86% of buyers would pay more for a better experience (according to Walker); improving the experience for customers is the key to increasing retention, satisfaction and sales (Genesys); customer centric companies are 60% more profitable (Deloitte and Touch); increasing customer retention rates by 5% increases profits by between 25% and 95% (Bain & Company); (Drummond-Dunn, 2017) ▪ a more customer-centric approach to business involves the existence of a Chief Customer Officer (CCO) whose responsibilities are as follows: to bring the customer to life, to reach outside the organization, to involve the front lines, and to embrace the data (according to the point of view of McKinsey’s representatives expressed in Forbes, starting from the two central goals of a CCO: to unify all customer initiatives throughout different functions; to inject a new way of thinking and acting throughout organization ). (Davis, Kazaks, and Pulido, 2016) Holistic Marketing Management
Also in June this year, (Patterson, 2017) the President and Founder of VisionEdge Marketing (focused on marketing organizations’ ability to measure marketing’s impact, value, and contribution) showed that: a key aspect of their research for the past 16 years (trying to understand the differences that distinguish best-in-class marketers from the rest of the field) has been the grade the C-suite (Chief executive officer – CEO, Chief Financial Officer – CFO, Chief Operating Officer – COO, Chief Information Officer – CIO, and… why not, allows us to add, Chief Marketing Officer and Chief Customer Officer – CCO) gives marketing; the online study (March 1, 2017 - April 7, 2017) conducted by VisionEdge Marketing in partnership with Hive9 and Valid USA (the 2017 Marketing Performance Management Benchmark study) revealed the ingredients that the so-called Value Creators (the Best in Class Marketers, ranked among the top 23% of marketing organizations) use better or differently, and achieve better results for the business, gain more influence over business decisions, and experience greater credibility. In the same month, Michael Lowenstein, Thought Leadership Principal for Beyond Philosophy, (Lowenstein, 2017) recalled the theme of the ultimate value creators – Humanistic companies or firms of endearment, FoEs – which create emotional value, experiential value, social value, and financial value. (Sisodia, Wolfe, Sheth, 2007) He underlined the real need for companies to put greater emphasis on the employee experience, considering the effect an employee has on customer behavior, in other words to concentrate on employees first, and on customers second, (Rosenbluth, McFerrin Peters, 2002) so as to offer an exceptional service for customers.
The development of the Customer Success function Three years ago, Kate Leggett, Vice President, and Principal Analyst at Forrester, highlighted that Customer Success Management (CSM) is a disciplined approach of: having the right customer engagement strategy; defining and following standardized engagement processes; hiring the right profile and operationally managing the team; empowering customer success managers with customer, financial, feedback and other data so that they can have the right conversations with their customers. She also underlined both CSM’s quantifiable ROI (measured by churn reduction, increased revenue from cross-sells and upsells, and new bookings), and the CSM’s role in actively managing customer relationships to strengthen these relationships. (Leggett, 2014) A year later, in 2015, (Subramanian, 2015) within the context of an ongoing discussion about the evolving role of Customer Success Operations (CS Ops), Ganesh Subramanian, Director of Product Marketing at Gainsight (the leading CSM platform), underlined both the consensus view for responsibilities under CS Ops (customer success enablement; strategy; reporting and metrics), and the biggest challenges faced by CS Ops (change management and benchmarking success).
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At the beginning of 2016, Sam Feil, Customer Success Manager at ClientSuccess, Inc., highlighted three key aspects to understand Customer Health (defined as the current state of customer satisfaction after a given engagement): customer health values need to be defined; an honest health value is better than a false health value; holistic customer health follows a bellshaped curve. (Feil, 2016) And in order to determine customer health, Feil recommended a Customer Success Six-Point Satisfaction Scale, as shown in the figure below:
Figure 1: Customer Success Six-Point Satisfaction Scale Source: Feil, S., CSM from the Trenches – Three Keys to Understand Customer Health, ClientSuccess, January 2016 (cited work)
Focused on maintaining a pulse of customer health and happiness, aiming a customercentric approach, customer success teams measure and track many key metrics, but a Customer Success Meetup hosted in February 2017 by Wootric in San Francisco revealed that there isn’t an industry standard for Customer Health Score (CHS, a metric designed to predict a customer’s likelihood to stay a customer or churn), based on the company and industry the variables and the weighting formula for CHS varying (a CSH formula including objectives and subjective components). (Abbott, 2017) Totango (leader in CSM, and a leading platform helping businesses simplify their CS Ops), for example, recommends: for most applications (while considering that the specifics depend on the nature of company’s application and customer-success programs), the following baseline settings of health score configuration: a health profile for every major customer-segment / plan; health scorecards (using 3 built-in product engagement metrics: engagement score; usage frequency; license utilization or active users); periodically tuning-up company’s health score and optimizing its settings based on team feedback and ongoing learning about the evolving usage patterns on company’s application; adding subjective CSM risk rating for high touch environments. (Raboy, 2016)
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Figure 2: Defining Customer Health Score Source: Adapted from Raboy, O., Totango (cited work)
And as CHS analyzes only (not providing a holistic picture) parameters which impact the value the customer is providing to the vendor (references to, revenue to, engagement with, relations with, usage of its solutions etc.), aiming to predict the future direction (churn, renewal, expansion), (Van Schoor, 2017) the reputed Boaz Maor and Ralf Wittgen suggested (Maor and Wittgen, 2017) a new metric – coined Customer Maturity Index (CMI) – as a new frontier for the Customer Success function, by differentiating CHS from CMI (CMI being likely to change less frequently than CHS) as it follows: ▪ establishing company’s CMI characteristics using four broad categories (vision and charter, organisation and people, process, technology and infrastructure); defining maturity levels for each characteristic (using a scale of 1-5, where 1= low maturity and 5= high maturity); calculating company’s CMI (grouping factors by charter, people, process, technology; ▪ determining maturity level for each factor; calculating the mean value for each CMI characteristic; ▪ adding weights to the maturity levels for each of the four CMI characteristics; calculating the value for CMI) - in this four step CMI and CHS working together (see the figure below).
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Figure 3: CMI and CHS working together Source: Adapted from Boaz Maor and Ralf Wittgen (cited works)
On the other hand, we also have to take into account the following aspects: ▪ the company’s need of realizing the so-called 360-degree customer view, which drives customer intelligence, enables predictive analytics, and prescribes customer alignment, being a holistic customer profile record integrating a mix of customer data (demographic, transaction, environmental, behavioral and social data) from across channels and systems, aggregating it, applying the customer insights so as to both deliver personalized and engaging customer experiences, and achieve company performance objectives; (Schaeffer, 2017) ▪ as marketing has become a fiercely data-driven game (the democratization of data transforming the marketer’s role in data analyst and ops expert), and shifted to a revenue center, revenuefocused marketers are: aligning with sales every quarter, creating plans that make sense, and knowing which metrics matter (such as: lead to opp conversion, campaign opportunity influence and ROI, email performance, funnel velocity, and …happiness); (Izsak, 2017) ▪ the findings of the ERDM VoC (Voice of Customer) research indicating that savvy customers want unprecedented levels of personalization at seven very specific points in their lifecycle with a brand: purchase; onboarding; reach out when you see decreasing engagement; a poor experience; surprise & delight / thank you; value added cross selling; value added repeat sales; (Roman, 2017) ▪ the need of keeping track of how company’s previous marketing campaigns have affected its sales numbers and customers’ propensity to become loyal (by considering: Customer Lifetime Value, Churn Rate, Net Promoter Score etc.; (Hyken, 2017) Holistic Marketing Management
▪ in the digital age (digital broadening customer choice and the actions companies can take in response), the difficulty of forming and acting on a single view of the customer represents a digital-culture deficiency (together with: functional and departmental silos, a fear of taking risks), according to a McKinsey’s recent survey of global executives, which revealed that getting closer to company’s customers can help reduce the risk of experimentation and support fastpaced change; (Goran, LaBerge, and Srinivasan, 2017) ▪ analyzing what e-commerce brands can expect from specific personalization techniques, a report (considering more than two billion user journeys and 120 million purchases) of marketing personalization company Qubit showed that: online consumers spend most of their money on just one to five websites (73% of respondents); they are open to switching loyalty to sites that provide more personalized experiences (81%); e-commerce businesses can add up to 6% revenue per visitor by optimizing and personalizing the shopping experience; the competition for customers’ attention is real, customers wanting personalized marketing, and brands that personalize winning loyalty; the two biggest challenges to achieving personalization at scale are the lake of the right data and the lake of the right technology; (Forer, 2017) ▪ marketers are challenged to integrate online and offline customers data, orchestrating engagement from a unified customer view, using a master data platform (MDM) which should automate all data quality tasks, making these data immediately available to business applications and users; (Renner, 2017) ▪ the real need of considering advertising and content together, young audiences having access to more content than any generation before (knowing what is good and what isn’t, and having the autonomy to only lean into the good stuff); (Chapman, 2017) ▪ the engagement marketing means ongoing listening plus real-time content-performance data (content being R&D for product; which content to put where, and when meaning business objectives plus micro-moments), high-value content removing resistance and triggers progress along company’s customers’ journey (customer journey plus resistance and progress triggers, plus natural language representing company’s evergreen message pillars); (Nelson, 2017) ▪ according to a recent report from Target Marketing, NAPCO Research, and IBM, prospective buyers of marketing technologies rank demos, test drives, and self-driven online research as the most valuable methods for evaluating products/services, (Nanji, 2017) within the context in which brands are buying more marketing technology than ever (with minimal input from other departments than marketing); (targetmarketingmag.com, 2017) ▪ the least but not the last, it is important to budget for Customer Success, knowing that “proactive” or “predictive” Customer Success improves outcomes, as shown by Gainsight (which recommended tips for budgeting, and for getting company’s budget); (slideshare.net, 2017) as shown by Gainsight, businesses need to go one step further from the traditional approach of using data to drive customer acquisition, leveraging the power of customer data both Holistic Marketing Management
to manage at-risk customers and grow the lifetime value of healthy ones, by monitoring and engaging with the variety of their customers, using big data analytics to monitor customer health (according to sales data, usage logs, support tickets etc.), keeping their customers loyal (by helping them understand the value your products and services provide). (gainsight.com, 2017)
How Customer Experience (CX) can be improved Two years ago, the reputed Don Peppers attracted our attention on the fact that customers don’t think in terms of departments or silos, but it’s the customer’s perspective that defines the experience, the beauty of this experience being in the eyes the customer, and a truly frictionless CX involving processes both re-imagined from the perspective of the customer, and combined so as to provide the most reliable experience possible. (Peppers, 2015) On September 1, 2017, Peppers highlighted (paraphrasing a well-known quote regarding happiness) that CX improvement is a journey, not a destination, from his own perspective CX looking: measurable; easy to take, but hard to sustain; disappointing. And for a company starting to improve, he recommended to begin with the data, and developing a clear picture of who are the company’s best and worst customers, underlining the impact of CX improvement effort to: demand-generation programs, prospect nurturing, customer loyalty and cross-selling, user experience within company’s channels, and broader corporate strategies and decisions. (Peppers, 2017) Indeed, marketing is increasingly competing on the basis of CX, leading CX initiatives across the business, and marketing’s efforts impacting individual accounts/customers (according to a Salesforce’s research; report based on data from a survey conducted in April 2017 among 3,500 marketing leaders); (Nanji, 2017) When there are silos in the company, and each silo has different metrics, different incentives, and different definitions of what a “target customer” or “ideal customer” is, then these silos become a problem for CX. (Bliss, 2017) According to a recent Couchbase study of US digital transformation leaders (commented by eMarketer), improving CX was ranked as very important (occupying the first place) by 69% of respondents (as shown in the figure below). This study revealed the importance of digital innovation (businesses that can’t keep up with it will survive less than five years before going out of business or being absorbed by a competitor, while 80% of respondents are already concerned of the risk of being surpassed by a rival): (Kats, 2017)
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Figure 4: Importance of select benefits of digital transformation projects according to US Digital Transformation Leaders, June 2017 Source: Kats, R., Digital Transformation Projects Rank High in Importance to Marketing Leaders, August 4, 2017 (cited work)
We have seen why a company needs to improve CX, within the context of a business market marked by a harsh competition, which involves properly managing data representing company’s customers’ attitudes and behaviors, using the proper application of statistics/math, leveraging the data science tools and methods of: Artificial intelligence (AI, which is focused on developing computer systems to perform tasks that usually require human intelligence, including visual perception, speech recognition, decision-making, and translation between languages), machine learning (which uses statistics/math to allow computer to find hidden insights), deep learning (which is a class of machine learning algorithms modeled after the information processing and communication patterns of the brain). In the opinion of Bob Hayes (recognized as subject matter expert including at the level of this year: ranked #22 Big Data Influencer, May, 2017; Top 20 Big Data Blogs and Influencers, February, 2017; Ranked #1 Customer Experience Author, January, 2017) there are significant ways AI can help improve CX, such as: automating customer interactions while providing a more immediate and personalized response that eliminates the frustrating moments; handling customer complaints using chatbots, reducing service costs; customizing CX; detecting fraud; improving CX surveys; improving customer service. (Hayes, 2017) It is worth mentioning within this framework that Accenture Technology Vision 2017 (the annual prediction of the technology trends that will shape the future of companies in the next three years) – with the theme “Technology for People: The Era of the Intelligent Enterprise”, building on the “People First” (with people in mind, both on an individual and societal basis) – Holistic Marketing Management
invited leaders “to bring the future to life in a human fashion, using technology FOR people” (the path to leadership being in amplifying people, on a global and individual scale). (Accenture, 2017) Accenture identified five trends that underscore the importance of focusing on “Technology for People” to achieve digital success: Artificial intelligence (AI) is the new user interface (UI); Ecosystem power plays (Beyond Platforms); Workforce marketplace (Invent your future); Design for humans (Inspire new behaviors); The uncharted (Invent new industries, set new standards). Let’s take a look at the Technology Vision trend evolution in the last three years (2015-2017):
Figure 5: Technology Vision trend evolution Source: Accenture, Technology Vision 2017, March 21, 2017 (cited work)
As argued recently by Mike Kostow, SVP and GM of Salesforce Pardot (a leading B2B marketing automation solution), there is a complex web of communication touchpoints (which is fueled by brand content, social media, Web search, email, and more) between a company and its customers in today’s ever-changing marketing landscape, being necessary to align marketing and sales to create personalized experiences. And AI, for example, can help fuel better business decisions, and faster, having the power to see the entire scope of a business, department, team, and its customers. (Kostow, 2017) In the opinion of Gabriel Aguilo, Director of Product Management and R&D at Sitecore (a leader in the digital marketing industry), the best marketer of tomorrow will be a combination between the best of human (who excels at creativity and intuition) and AI. (Aguilo, 2017) It is worth mentioning, within this framework, that according to Sitecore’s Customer Experience Masturity Model, in creating a roadmap for marketing there are seven stages comprised of three macro phases – Attract (initiate; radiate; align); Convert (optimize; nurture); Advocate (engage; lifetime customers) – as shown in the figure below:
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Figure 6: Seven stages comprised of three macro phases Source: The Customer Experience Maturity Model®, Sitecore (cited work)
More recently, Lisa Pohlman London, PhD, Director of Strategic CX Consulting at MaritzCX, (Pohlman London, 2017) highlighted that MaritzCX (by using its own experience as the premier CX services and technology provider and research from organizational development - OD), created a CXEvolution maturity model tested and refined with data (as shown in the figure below). She showed that MaritzCX’s dataset both captures the gamut of inputs and outputs that constitute a successful CX program, and gave them the ability to predict what makes a CX program successful.
Figure 7: CXEvolution Maturity Model, MaritzCX Source: Pohlman London, L., Building a Strategic CX Roadmap, Part 2: The Right Stuff, August 29, 2017 (cited work)
Looking to the future: Marketing organization’s challenge of being more agile, engaging, and effective Allow us to stop at an example from the last year, an event encouraging forward-thinking such as “Marketing Unbound”, organized by the reputed “The Economist” on March 24th, 2016, Holistic Marketing Management
in New York, and bringing relevant content, starting from the importance of the topic, within the context of the new marketing challenges faced by companies in every industry, the norm being the constant change, and marketers being forced to engage in seamless conversations with customers across channels and devices, to build long-term relationships adequately guiding and influencing customers, to drive the right balance between data and human depth. They brought then a lot of significant aspects, such as the need for marketers to evolve, ensuring a steady ROI, while retaining the flexibility to spend and take risks on new opportunities as they emerge. (economist.com, 2016) How to fix today’s reality that technologies and customer expectations have changed faster than marketing organizations is a valuable preoccupation of McKinsey’s representatives, whose research findings revealed that marketing organizations need to become able to take full advantage of new digital and advanced analytics tools. In order to improve their organizational models, marketing organizations need to change in three ways: (Buck, Cvetanovski, Harper, and Timelin, 2017) shifting their organizational model away from “boxes and lines” to a fluid ecosystem of internal and external partners; scaling agile ways of working; building out a set of supporting capabilities that can deliver great customer experiences (as shown in the figure below):
Figure 8: Making the marketing organization fit for the future (McKinsey) Source: Buck, R., Cvetanovski, B., Harper, A., and Timelin, B., Building a marketing organization that drives growth today, McKinsey, August 2017 (cited work)
McKinsey’s representatives identified five shifts which redefined the modern marketing landscape: from targeted campaigns to personalized consumer interactions, leveraging advanced analytics; from sales primarily through bricks-and-mortar stores to a mix of online, offline, multichannel, and owned channels; from mass advertising campaigns to always-on content publishing; from a long-term innovation funnel to rapid test-and-learn, with an emphasis on speed to market; from marketing as a cost to marketing as an investment, with measurable ROI. Holistic Marketing Management
They find out that an understanding of customer journeys (often reinventing these journeys, not just improving the existing ones) is the starting point for delivering a great CX, which can be obtained with the help of digital technologies. Which means that marketers should form agile, cross-functional teams having accountability for a single journey. In July this year, Gautam Mahajan (President of Customer Value Foundation, leading global leader in Customer Value Management), while approaching the topic of clearing misconceptions on customer value, and better understanding customer value and customer data, argued that: (Mahajan, 2017) in the customer context, value (which measures CX, customer emotions, brand value) is what you pay versus competitive offers (not just the benefits), and in the organization of the future the CEO becomes the Chief Value Creator, the Operations department becomes the Customer department, and the Chief Operating Officer (COO) becomes the Chief Customer Value Creator (CVCO), as we can see in the chart shown below:
Figure 9: Organization of the Future Source: Mahajan, G., Become a Customer Expert! Start by Clearing 9 Misconceptions About Customer Value, Jul 7, 2017 (cited work)
According to Mahajan CX is one major aspect of Customer Value, but it is not strong on the cost of doing business (price and non-price), missing many points of doing business which includes items you may not experience. He also underlines some differences between what is important (the experience or the memory of the experience), and for who (the user or the decision maker). Instead of conclusions: Which role for the CMO within this context On the occasion of the Executive Jam Session during the 2016 Summer AMA Conference, August 5-7, 2016, Atlanta, GA (the first of the six key problems was: “Role of Marketing in the Firm and the C-Suite”), Kim Whitler, Assistant Professor of Marketing at University of Virginia (she worked as a CMO before starting her research career), introduced her studies of CMOs in the C-suite), identifying five common myths of what it means to be an executive-level CMO ( there is a single CMO role; there is a type of CMO; today’s CMO only needs to have quantitative skills; CMOs always manage marketing; secondary data is all that is Holistic Marketing Management
needed to understand C-level marketers). In reality, as there is a lot of variance in who CMOs are and in the tasks undertaken by them, and as 80% of CEOs are disappointed in their CMO, Whitler raised significant questions such as what affects a CMO’s effectiveness and what type of background does a great CMO have. (Conick, 2017) At the beginning of the next year, in January 2017, Gartner’s Contributor Chris Pemberton showed that the 2016-2017 Gartner CMO Spend Survey reveals that: CMOs now oversee or heavily influence CX, technology spending and profit and loss (P&L) performance as means to deliver growth; CMOs see increased responsibility, more functions now reporting into the CMO (digital commerce, 62% of companies; 44% of sales teams); CMO marketing technology spend (3,24% of overall revenue) rivaling CIO technology spend (3,4% of overall revenue), Gartner recommending to aligning spending efforts and sharing best practices; 75% of CMOs own or share responsibility for P&L, Gartner recommending to revisit their attribution metrics so as to ensure they can give credit to activities which deliver business results; only one in 10 companies which have a Chief Customer Officer (CCO, who typically reports to the CEO or COO) reports to the CMO, in designing and executing CX marketing playing an important and often leading role (Gartner recommending CMO-CCO alignment to a shared set of priorities, goals and view of the customer). (Pemberton, 2017) Three months later, the findings of a survey (of nearly 300 marketing leaders; it took place in late 2016) released on May 2, 2017, by Korn Ferry (preeminent global people and organizational advisory firm), showed that: ▪ Chief Marketing Officers (CMOs) are gaining influence in their organizations (being on their company’s executive committee, according to 90% of respondents; reporting directly to the CEO, according to 70% of respondents; marketing being viewed by the Board and CEO as a revenue generator, according to 60%); ▪ the most important attribute for a CMO is the ability to build a strong team (according to 43%
of respondents), using big data and analytics to formulate strategy being the last on this list of attributes. (Korn Ferry, 2017) At the end of the same month, Blake Morgan, a CX futurist, argued (within AMA’s eNewsletters framework) that there are three dimensions of the CMOs of the future: helping steer company strategy, present a vision to the board, and be a data and design genius. (Morgan, 2017) She showed that important to the future CMO will be sociology and sociographics (becoming a CX futurist predicting what customers want and need), needing eight skills, such as those revealed in the figure below:
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Figure 10: The eight skills of the CMO of the future Source: Morgan, B., The CMO of the Future Has These 8 Skills, May 22, 2017, AMA (cited work)
Two months later, the latest CMO Survey (2628 top U.S. marketers at for-profit companies; survey in field from July 18, 2017 - August 8, 2017; 92.3% of respondents VP-level or above), Highlights and Insights, Report August 2017, revealed among other aspects, what makes a CMO most effective (the most critical to CMO role): being the voice of the customer at the leadership table (16,3%); having an enterprise-wide business mindset and understanding (15,1%); having the ability to demonstrate the quantitative impact of marketing efforts (14,5%); playing a key role in company growth initiative (12,7%); having direct sales/customer-facing experience (11,4%); having a significant input to the budgeting and strategic planning processes (7,2%); proactively leading C-suite collaborations to drive cross-functional initiatives across the organization (7,2%); understanding current and future marketing technologies (6,6%); acting with strong leadership and motivation skills (6,0%); and knowing how to use customer data and analytics (3,0%). (CMO Survey, 2017) According to Marketing Weekâ€™s new study on the â€œAnatomy of a Leader: The key skills modern marketing leaders needâ€? (600 surveyed marketers), reported by senior writer Charlotte Rogers on August 9, 2017, (Fletcher, 2017) the most important traits of the modern CMO are: humanity, empathy, rationality, emotion, bravery and agility. The above mentioned CMO research split into two categories: responsibilities of the job (being identified the following: sales and commercial awareness, 74% of respondents; campaign planning; insight; innovation; financial reporting); attributes of the leader (being identified the following: adaptability, 87% of respondents; strategic thinking, 86%; vision, 81%; problem solving, 77%; technical proficiency, 77%; the ability to listen, 74%; resilience, 74%; people management, 67%; risk-taking, 67% percent; relationship building, 61%).
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Another Marketing Week contributor, Colin Lewis, underlined, within the above mentioned context, both a special CMO’s set of qualities (vision, energy, dynamism, inspiration, courage, charisma etc.), and the CMO’s biggest challenge: “working out what the world is going to look like and how marketing leadership will fit into that world” (while navigating technological change, as another biggest challenge of the future). (Davies, 2017) In March this year, we showed that CMOs are challenged: to clearly identify priorities, focusing marketing activity on creating customer value, tying marketing’s contribution to this customer value, and measuring marketing’s performance within the context of the company’s business value; to include customer inspiration as a metric in managerial decision-making, and to consider influence as a driving force for change in approaching CX, building proper relationships on the way of digital transformation, and enabling the customer-centricity, reimagining marketers’ role as a central driver of organisational change. (Purcarea, 2017) We see now that CMO’s responsibility is considerably increasing, needing to confirm the necessary skills and qualities, and assuming this way the critical role within the continuously evolving marketing landscape. Let us close by citing Dave Fish, Ph.D., (Fish, 2017) Founder of CuriosityCX and SVP for ORC International: “The best way to evoke what people want from their experience is looking at their customer journey today and contrasting that to what that might ideally look like in the future.”
References Abbott, L., Customer Health Score: Advice from Three Customer Success Experts, March 27, 2017, retrieved on 01.09.2017, from: https://www.wootric.com/blog/customer-health-score-advice-from-three-customer-successexperts Aguilo, G., Marketing in the machine era: Where machine learning in marketing is going, May 15, 2017, retrieved from: http://www.sitecore.net/sv-se/company/blog/526/marketing-in-the-machine-era-where-machine-learning-inmarketing-is-going-4444 Bliss, J., Silos don’t have to hurt your CX, but they often do, July 6, 2017, retrieved on 11.07.2017, from: http://www.customerexperienceupdate.com/edition/weekly-nps-sales-2017-07-01? Buck, R., Cvetanovski, B., Harper, A., and Timelin, B., Building a marketing organization that drives growth today, August 2017, retrieved on 15.08.2017, from: http://www.mckinsey.com/business-functions/marketing-andsales/our-insights/building-a-marketing-organization-that-drives-growth-today? Chapman, M., Stop predicting the death of anything: no media is a write-off, it's all opportunity, June 21, 2017, retrieved on 19.07.2017, from: http://www.campaignlive.co.uk/article/stop-predicting-death-anything-no-mediawrite-off-its-opportunity/1437107? Conick, H., 5 Myths of What it Means to be a C-level CMO, May 9, 2017, retrieved on 06.09.2017, from: https://www.ama.org/academics/Pages/5-Myths-of-What-it-Means-to-be-a-C-level-CMO.aspx
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Drummond-Dunn, D., 7 Reasons Most Companies Fail to Adopt a Customer-First Strategy, Jun 13, 2017, retrieved on 28.06.2017, from: http://customerthink.com/7-reasons-most-companies-fail-to-adopt-a-customer-first-strategy/? Davies, M., Do you have what it takes to be a leader? 15 August 2017, retrieved on 06.09.2017, from: http://www.thethinkteam.com/blog/posts/do-you-have-what-it-takes-to-be-a-leader/ Davis, C., Kazaks, A., and Pulido, A., Why Your Company Needs A Chief Customer Officer, Oct 12, 2016, available at: https://www.forbes.com/sites/mckinsey/2016/10/12/why-your-company-needs-a-chief-customerofficer/ Feil, S., CSM from the Trenches â€“ Three Keys to Understand Customer Health, ClientSuccess, January 2016, retrieved from: https://www.clientsuccess.com/blog/three-keys-to-understand-customer-health/ Fish, D., The New Formula for Experiential Design: CX > 5 Ps, Aug 24, 2017, retrieved on 25.08.2017, from: http://customerthink.com/the-new-formula-for-experiential-design-cx-5-ps/ Fletcher, H., The Most Important CMO Trait, August 15, 2017, retrieved on 22.08.2017, from: http://www.targetmarketingmag.com/article/the-most-important-cmotrait/#ne=c4e4aa5148bbd545a29a454a970be8d3utm_source=today-%40-targetmarketingutm_medium=newsletterutm_campaign=2017-08-15&utm_content=the+most+important+cmo+trait-4 Forer, L., What 2 Billion User Journeys Tell Us About Personalization [Infographic], July 13, 2017, retrieved on 17.07.2017, from: https://www.marketingprofs.com/chirp/2017/32385/what-2-billion-user-journeys-tell-us-aboutpersonalization-infographic? Goran, J., LaBerge, L., and Srinivasan, R., Culture for a digital age, McKinsey Quarterly July 2017, retrieved on, from: http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/culture-for-a-digital-age? Hayes, B., Artificial Intelligence: The Customer Experience Imperative, August 21, 2017, retrieved on 22.08.2017, from: http://www.customerexperienceupdate.com/edition/daily-customer-focused-customer-voice-2017-08-21? Hyken, S., Guest blog: Optimizing for lifetime value over transactional customers, Discussion with Lifesizeâ€™s Chief Customer Success and Happiness Officer, Amy Downs, retrieved on 09.07.2017, from: https://hyken.com/customerrelationships/guest-blog-optimizing-lifetime-value-transactional-customers-2/ Izsak, R., Three Things Revenue Marketers Do Differently, July 13, 2017, retrieved on, from: http://spongesoftware.com/three-things-revenue-marketers-do-differently/ Kats, R., Digital Transformation Projects Rank High in Importance to Marketing Leaders, August 4, 2017, retrieved on 06.08.2017, from: https://www.emarketer.com/Article/Digital-Transformation-Projects-Rank-High-ImportanceMarketing-Leaders/1016291? Kostow, M., How to Drive Real Results Through Sales, Marketing, and AI, August 17, 2017, retrieved on 23.08.2017, from: https://www.marketingprofs.com/articles/2017/32633/how-to-drive-real-results-through-salesmarketing-and-ai? Leggett, K., What Is Customer Success Management And Why Is It Important, ForresterBlogs, May 15, 2014, retrieved from: https://go.forrester.com/blogs/14-05-15what_is_customer_success_management_and_why_is_it_important/ Lowenstein, M., How Stakeholder-Centric and Value Delivery-Focused Is Your Company? Jun 19, 2017, Retrieved on 23.06.2017, from: http://customerthink.com/how-stakeholder-centric-and-value-delivery-focused-is-yourcompany/
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Mahajan, G., Become a Customer Expert! Start by Clearing 9 Misconceptions About Customer Value, Jul 7, 2017, retrieved on 28.08.2017, from: http://customerthink.com/become-a-customer-expert-start-by-clearing-9misconceptions-about-customer-value/? Maor, B., Why Your Customer Health Score May Be Quite Useless – Part 3: Your Framework to Calculate CMI, March 14, 2017, retrieved on 01.09.2017, from: https://www.linkedin.com/pulse/why-your-customer-health-scoremay-quite-useless-part-boaz-s-maor-1; Maor, B., Wittgen, R., A Practical Framework to Calculate Customer Maturity Index, June 28, 2017, retrieved on 29.06.2017, from: http://www.customerexperienceupdate.com/edition/daily-customer-confidence-interaction-2017-06-28? Morgan, B., The CMO of the Future Has These 8 Skills, May 22, 2017, retrieved on 06.09.2017, from: https://www.ama.org/publications/eNewsletters/Marketing-News-Weekly/Pages/cmo-of-the-future-has-these-8skills.aspx Nanji, A., The Martech Purchase Process: How Buyers Evaluate Vendors, July 25, 2017, retrieved on 27.07.2017, from: https://www.marketingprofs.com/charts/2017/32471/the-martech-purchase-process-how-buyers-evaluatevendors? Nanji, A., What Differentiates High-Performing Marketing Teams, July 10, 2017, retrieved on, from: https://www.marketingprofs.com/charts/2017/32381/what-differentiates-high-performing-marketing-teams? Nelson, T-N., The Business Case for Behavior-Changing Content: Five Rules of Engagement, July 13, 2017, retrieved on 17.07.2017, from: https://www.marketingprofs.com/articles/2017/32431/the-business-case-forbehavior-changing-content-five-rules-of-engagement? Patterson, L., 2017 Marketing Performance Benchmarks and Trends [Infographic], June 15, 2017, retrieved on 16.06.2017, from: https://www.marketingprofs.com/charts/2017/32271/2017-marketing-performance-benchmarksand-trends-infographic? Pemberton, C., 2016-2017 Gartner CMO Spend Survey Reveals the CMO’s Growing Mandate, January 10, 2017, retrieved on 06.09.2017, from: http://www.gartner.com/smarterwithgartner/2016-2017-gartner-cmo-spend-surveyreveals-the-cmos-growing-mandate/ Peppers, D., Delivering a Reliable Customer Experience, February 24, 2015, retrieved on 03.09.2017, from: https://www.linkedin.com/pulse/delivering-reliable-customer-experience-don-peppers Peppers, D., Everyone’s Talking About the Customer Experience. So Why Aren’t More Companies Acting on It? , retrieved on 03.09.2017, from: https://www.linkedin.com/pulse/everyones-talking-customer-experience-so-whyarent-more-don-peppers Pohlman London, L., Building a Strategic CX Roadmap, Part 2: The Right Stuff, August 29, 2017, http://www.customerexperienceupdate.com/edition/weekly-call-recording-feedback-2017-08-26? Purcarea, T., Marketing’s progress beyond its heritage functions: New Marketing, New CMO, and the Revenue Potential, Holistic Marketing Management, Volume 7, Issue 2, 2017, pp. 18-28 Purcarea, T., CMO priorities in approaching consumer decision journey, and inspiration and influence in marketing, Holistic Marketing Management, Volume 7, Issue 1, 2017, pp. 18-31 Raboy, O.,Defining the customer health score, August 5, 2016, retrieved on 01.09.2017, from: https://totango.zendesk.com/hc/en-us/articles/202301749-Defining-the-customer-health-score Renner, D., Why Brands Need Master Data Management, July 19, 2017, retrieved on, from: https://www.emarketer.com/Article/Why-Brands-Need-Master-Data-Management/1016190?
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Roman, E., How You Should Engage at These 7 Points in the Customer Lifecycle, "Marketing Best Practices Blog", <email@example.com>,Thu, June 15, 2017 Rosenbluth, H., McFerrin Peters, D., The Customer Comes Second: Put Your People First and Watch ‘em Kick Butt, HarperBusiness, Revised and Updated ed. edition August 2002 Schaeffer, C., How to Design Your 360-Degree Customer View, Jun 9, 2017, retrieved on 16.06.2017, from: http://customerthink.com/how-to-design-your-360-degree-customer-view/? Sisodia, R., Wolfe, D., Sheth, J.N., Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, FT Press, 1 edition, February 10, 2007 Subramanian, G., Customer Success Operations: Learnings from the Industry, Gainsight, August 12, 2015, retrieved from: https://www.gainsight.com/customer-success-best-practices/csm-ops-survey-results-what-the-customersuccess-community-says-about-the/ Van Schoor, J., Managing Customer Success: Is Customer Health Score (CHS) Enough? Retrieved on 01.09.2017, from: https://chaosandrocketfuel.com/managing-customer-success-are-customer-health-scores-chs-enough/ *** The Marketing Technology Buying Process, retrieved on 01.08.2017, from: http://www.targetmarketingmag.com/resource/the-marketing-technology-buying-process/? *** How to Budget for Customer Success – SlideShare, retrieved on 31.08.2017, from: https://www.slideshare.net/GainsightHQ/how-to-budget-for-customer-success *** https://www.gainsight.com/company/#aboutSection *** Accenture, Technology Vision 2017. Technology for people. The Era of the Intelligent Enterprise, March 21, 2017, retrieved on 13.08.2017, from: https://www.accenture.com/t20170321T032507__w__/usen/_acnmedia/Accenture/next-gen-4/tech-vision-2017/pdf/Accenture-TV17-Full.pdf? *** The Customer Experience Maturity Model®, Sitecore, http://www.sitecore.net/en/getting-started/maturingdigitally/cx-maturity-model *** Marketing Unbound, The Economist, March 24th 2016, New York, retrieved from: https://events.economist.com/events-conferences/americas/marketing-unbound/ *** Korn Ferry Survey: Top Marketers Gain Influence and Visibility in the C-Suite, May 2, 2017, retrieved on 06.09.2017, from: https://www.kornferry.com/press/korn-ferry-survey-top-marketers-gain-influence-and-visibilityin-the-c-suite/ *** The CMO Survey, Highlights and Insights, Report August 2017, retrieved on: 06.09.2017, from: https://cmosurvey.org/wp-content/uploads/sites/15/2017/08/The_CMO_Survey-Highlights_and_Insights-Aug2017.pdf
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Léon F. WEGNEZ (by courtesy of) - BIRD, the Spirit of Bretton Woods, published in the prestigious “La Vie DIPLOMATIQUE”, the official body of the Diplomatic Club of Belgium, Brussels, March 2017 Prof. Dr. h. c. Léon F. WEGNEZ is a distinguished Member of the Editorial Board of our “Holistic Marketing Management” Journal. He was honored by the European Retail Academy (ERA) as the 2015 “Man of the Year” (the distinguished personalities who have been honored by ERA in the last six years were: Philip Alexander Nobel, John L. Stanton, Léon F. Wegnez, Romano Prodi, Klaus Toepfer, and Robert Aumann). Knowing our distinguished readers’ thirst for knowledge, we offer you, by courtesy of this remarkable personality, the above mentioned article published in the prestigious “La Vie DIPLOMATIQUE”.
Holistic Marketing Management
Holistic Marketing Management
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