"If you don't have a strategy for reorganizing your business, you're aiming at nothing, and I guarantee you'll hit it." - Gene Alvarez, Gartner
At last week's Gartner Customer 360 Summit in Orlando, Gartner's Alvarez and Leigh McMullen conveyed that message during their opening keynote session. They reviewed the importance of bridging the digital chasm in companies and how building organizations powered by purpose and whose employees' goals are linked to the enterprise mission helps in advancing their digital strategies.
For companies to understand what customers want, need, and expect in our digital world means having the right people and cultures in place, in addition to the right technologies. Organizing around cultures to enable digital, means having the ability to respond in real-time with the right message or service strategy.
Gartner Research Director Penny Gillespie and I presented the winners of the 2014 Gartner & 1to1 Media CRM Excellence Awards at the Summit. The initiatives of the three winners in the Integrated Marketing category amplified the Summit's messaging of the importance of organizational transformation in starting out on the journey to crossing the digital divide.
For instance, before Isbank, the Bronze winner, moved to organize its operations around customer-value based segmentation and micro-segmentation, it introduced a Customer-Centric Transformation program to restructure the bank's processes by concentrating on its customer-focused approach by introducing the 360-degree view of the customer. This included all relevant data, such as product and channel usage, customer value, risk, and demographics, and making said customer interaction history accessible for all employees. The profits generated from branch campaigns and the annual profit of products sales jumped to 23.5 percent as compared to 2012 Q3.
The Silver winner, Banco Espirito Santo, integrated five scattered CRM systems, making it impossible for the 643 branches to have a clear single view of customers' interaction histories. But first, the company "ignited" the employees and created an incentive plan to accelerate usage adoption. Revenue increase 14 percent after this system's deployment.
Finally, Syngenta Brazil, the Gold winner, created loyalty programs to reach different customer groups. But before that, the company aligned people, processes, and systems across marketing, sales, products, financial, legal, IT, and other Syngenta business units to develop the program. The bank's results were nonetheless positive, with specific products marketed in a campaign have seen a success rate from under 3 percent in 2010 to more than 13 percent last year.
The three Integrated Marketing winners have proven that reorganization is often necessary to advance a stalled customer strategy and to ultimately experience clear ROI.