overcoming the organizational challenge
TRANSCRIPT
© 2014 Merkle. All Rights Reserved. Confidential2
Introduction
How to deliver
Mass Personalization efficiently?
Operating Model• Brand centricity• Many constituents (patient,
physician, payers, regulatory)
High Expectations• Empowered patients• “Always on” economy
Cost Reduction• Sales force shrinking• Market, sales & service
budgets shifting to digital
© 2014 Merkle. All Rights Reserved. Confidential3
Challenges
Capabilities Operating Model
Data, Insight, Interaction, Measurement
Supporting
marketing, sales and service
Across
channels and media
Sponsorship of vision
and common goals
KPI’s and incentives,
clear criteria to drive decisioning
Employee
empowerment and enablement
© 2014 Merkle. All Rights Reserved. Confidential4
Evolving Capability and Operating Model
Operating Model
Infrastructure focus, basic capabilities
Single campaign, simple data, little offer and
customer customization
Basic multi-channel, model integration, and campaign
automation
Contact Optimization, multi-touch campaigns, integrated measurement platform
Customer Value Optimizationfully integrated programs &
campaigns
Cap
ab
ilit
y M
atu
rity
Ideal investment zone
Bottom-up path builds infrastructure and seeks to leverage incremental gains to expand effort and drive organizational
change (requires permission)
Top-down path compels Organizational change and rapidly enables infrastructure
for efficiency and effectiveness(requires sponsorship)
Level 1
Level 3
Level 4
Level 5
Level 2
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Key Operating Model Issues
» How are companies organizing for success?» What are the new roles need to drive mass customization? » How do we maintain an agile and flexible environment? » What shared services facilitate efficient operations? » How do I get started amidst change?
» Being Adaptive » Harnessing the new Currencies » Embedding talented “connectors” and “integrators
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Different Organizational Models
High
Low
Cu
sto
mer
Cen
tric
ity
Brand Centric
Low Integration
Customer Centric
Low Integration
Customer Centric
High Integration
Brand Centric
High Integration
HighLow
Media/Channel Integration
Balance brand centricity with media/channel
integration
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Platform Marketing as a COE
Centralized (COE) Decentralized
(Part of Brand)• Platform marketing deployed
and managed in one group; collaborate with brand on priorities
• Platform marketing functions deployed and managed by brands
• Accountable to line of business for cost and performance
• Brand fully in control and accountable
• Achieve scale (in house or outsourcing)
• Also deploy service close to brands
• Strong career pathing
• Limited friction
• Loss of scale
• Lower decree of expertise
As a COE, Platform
Marketers can support the
personalized, cross brand experience
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How Processes are Enabling Agility
Old process:• Uniform experience• Long planning cycle, with linear approach to planning
Target Audience Insight
Concept Medical Legal
Review
Concept Development
MLR
Agile process: • Personalized, reactive experience, Small incremental changes• Cross functional teams rather than linear involvement
Insight Tweak Test
MLR MLR
Insight Tweak Test
© 2014 Merkle. All Rights Reserved. Confidential9
Business and Technology
Shared accountability for
experience
Define and drive portfolio objectives via an optimized customer experience
Enable and deliver on the customer experience
CCO CIO
FROM• React quickly to market • Business focus, customer focus• Develop own solutions
TO• Be tied at the hip with CIO• Know data and technology• Plan for long term with CIO
FROM• Mitigate risk• Process oriented • Well-established governance• Aligned with Finance or
Operations
TO• More agile and nimble• Aligned with business• Have a seat at the table with CCO• Aligned with customer priorities
© 2014 Merkle. All Rights Reserved. Confidential1010
Financial• Translate strategy and vision into tangible measures for decision makers
• Link these measures to
• Compensation Monetary means to recognize and motivate performance
• Reward and Recognition Non monetary ways to motivate employees
Customer
Innovation
Efficiency
You are What You Measure
For the rest of our webinar on how you can overcome organizational challenges to be more customer-centric and deliver personalized experiences, view our four-part on-demand webinar series here.