Future of Banking: Invest in what is needed instead of talking about it !  

Instead of talking about what is required to become a digital bank of the future, it is time to make the investment needed to deliver on the expectations of an increasingly demanding consumer.

Source: Future of Banking: Talk is Cheap

In an industry where discussion about the future is never lacking, it is time to stop talking and make the commitment and investment necessary to improve the basics of the customer experience across all channels.

Over the past year, I have had the opportunity to write extensively on the future of banking. Many of these articles and research reports have centered on using advanced analytics to provide an improved customer experience and the importance of changing many of the pillars of the legacy banking organization to better serve the consumer (back office systems, a siloed structure, physical branches, etc.). The majority of these writings were well received, with almost uniform agreement on what is needed for financial institutions to succeed in the future.

As I prepared for a recent presentation, I realized that many of the talking points I was going to use were not too dissimilar to what was discussed within the banking industry in the 1980s. Then I wondered, why is there so much inaction on such important keys to success that so many banking executives agree upon? For that matter, why should the consumer believe we will make banking better for them when we have failed on so many fronts for the last 30 years?

It has been said that when a word is deprived of its dimension of action, the word is changed into idle chatter and into an alienating “blah”. Further, it has been said that words without action will end up costing more in the long run. I believe that this is a lesson that banking needs to learn.

Some of the most important improvements to banking that we have discussed for decades with limited progress include:

Customer Relationship Management (CRM)

While the terminology and acronym may have changed over the past 30 years, the importance of using customer data to improve the personalization and contextuality of marketing communications, product development and offers, and the overall customer experience has been at the forefront of banking’s “to do list” since the advent of the modern computer. Having access to a treasure trove of data, from basic demographics to account ownership and behaviors, banks and credit unions have more insight into their customers than virtually any other industry.

So why, after decades of discussing the importance of customer relationship management,1:1 marketing, and the removal of silos can’t most financial institutions know that I have a small business account if I walk into a branch with a question about my personal banking relationship? For that matter, why do insights around my mortgage loan and credit cards also reside in separate silos and not part of an overarching 360 degree view of my relationship? Without this overarching view, consumers are forced to start from scratch each time they want to expand their relationship at most institutions, providing information that already resides on the organization’s database.

Potentially more important, as the banking industry seeks to replicate the digital experience of such consumer-centric organizations such as Uber, Apple, Facebook, Amazon and others, banking is usually unable to leverage the insights on customers for the benefit of these same customers. Where Uber can provide a ‘contextual commerce‘ experience, including a digital hotel keys to the hotel I am being driven to, and restaurant suggestions around my destination (along with integrating the payment process), many legacy financial organizations can’t provide more than historical transaction data on a mobile device.

Despite the almost universal agreement that the banking industry needs to improve the use of data to deliver an enhanced consumer experience, and the decreasing cost of technology to deliver on this promise, advanced analytics remains a low priority according the Digital Banking Report, State of Financial Marketing. In addition, while banking organizations indicate they want to deliver real-time insights to customers, less than 20% of the industry currently has this capability according to the Digital Banking Report, The Power of Personalization in Banking.

Of more concern is that roughly 40% of all but the very largest financial institutions place themselves in the ‘Static’ self assessment category.

Current_ability_to provide_personalized_guidance_based_on_individual_customer_needs_via_y our_web

Ease of Engagement

Since I was a management trainee at National City Bank in the late 1970s, the banking industry has tried to make it easier for the consumer to conduct banking. From the advent of the drive-up teller, credit and debit card, ATM and direct deposit, to more recent developments like mobile banking and remote deposit capture, the industry has leveraged technology to simplify engagement. The problem is, much of this advancement has been focused on taking costs out of the banking process as opposed to focusing on improving the consumer experience.

In the annual 2016 Retail Banking Trends and Predictions, published by the Digital Banking Report, ‘removing friction from the customer journey’ was the second most mentioned trend/prediction by close to 100 financial services industry leaders surveyed. Despite being a primary focus since the beginning of my banking career, why do we still require the consumer to visit a branch to open a new account at most institutions? Why do most mobile banking applications appear to replicate online banking as opposed to being designed like the most popular non-financial mobile applications, with a mobile-first intuitive design and minimal steps to process completion?

The potential cost of not making it easier to conduct banking is the loss of the customer. How long will a consumer who shops for their new banking account using their computer or mobile phone settle for leaving their device to act on their purchase decision? They don’t need to leave the Amazon app to visit a store or purchase a movie, or leave Apple.com to buy music. Maybe the perceived tolerance of this ‘broken process’ is because only 20% of the major banks currently offer a mobile-first account opening process (see Banking’s Digital Account Opening Process is Broken).

The consumer is making their voice heard, however. According to the 2016 U.S. Retail Banking Customer Satisfaction Study published by J.D. Power, the biggest banks have the best customer satisfaction scores for the first time ever, with the potential to steal business from smaller organizations. The advantage in customer satisfaction was attributed almost entirely to the investment by the larger banks on digital delivery that is focused on an improved customer experience.


Ease of engagement is only the first step as we move forward. According to Accenture, the consumer has indicated they would like their banking experience to be seamless and an almost invisible part of their daily life. This is a tremendous opportunity for those financial institutions who stop talking about the future of banking … and start delivering this level of engagement. Especially as we enter an era of the Internet of Things.

Relationship Expansion

There is probably no objective that has stood the test of time more than the concept of cross-selling. As an industry, banking has always known the importance of garnering ‘share of wallet’ to decrease attrition, increase revenues and improve loyalty. So, why is the new customer onboarding process non-existent at some organizations and underdeveloped at most others? And in a great example of “actions speak louder than words,” despite being near the top of every State of Financial Marketing survey over the past 6 years, less than 10% of financial institutions connect with the new customer using multiple communication channels more than 3 times during the first 180 days of the relationship (5-7 contacts has been found to be the optimal contact level according to JD Power).

Impact of Frequency for Onboarding

Beyond the basics of new account onboarding, very few organizations leverage online or mobile channels to deliver contextual real-time offers based on personalized needs identification.

The difference between the beginning of my banking career and today is that, back in the80s and 90s, we had the opportunity to meet and understand customer needs better (and offer the right solutions) on a weekly basis when the customer visited the branch. With the vast majority of consumers visiting a physical facility much less often (or not at all), the need to deliver relevant offers via digital channels is no longer just an option … it is a necessity.

The required technology already exists to deliver these offers based on timing as well as location (as Uber and other organizations do today). The consumer is expecting this level of engagement.

Financial Advice

The banking industry has always coveted the position as a “trusted financial advisor.” Over the past 40 years, the status of a bank and credit union in this role has changed dramatically, as financial service offerings have become more complex, new competitors have entered the marketplace and the prestige of banking as a career choice for financial advisors has waned. Add the dynamics of the financial crisis and the reduction in visits to a physical branch into the mix, and there is no wonder that 79% of consumers view their banking relationship as transactional or commoditized rather than advice-driven.

This is certainly not good news for an industry that relies on securing a greater share of wallet to make an overall  relationship profitable. Especially when interchange and other forms of transaction fees have come under fire. In addition, the ability to provide personalized financial solutions and advice is becoming one of the more powerful capabilities of digital start-ups. It is clear that simply adding licensed agents at physical branches will not be enough to turn the tables.

The vast majority of legacy financial institutions say they want to partner with consumers as they make their financial choices. While these organizations have vast amounts of insight that could be the foundation for this partnership, most insight provided today amounts to nothing more than a “rear-view mirror” view of what has already occurred. Today’s consumer wants a “financial GPS” view of what they need to look out for (financially) in the future. And they want this delivered digitally … in real time.

Again, there is a vast void between what banking says they want to be in the future and what they are prepared to deliver.

Actions Speak Louder Than Words

It is time to put our money where our collective mouths are.

While the vast majority of banking relationships have proven to be highly resilient to changes in the marketplace, with minimal churn, this could be a matter of lethargy on the part of the consumer. As we enter a period of increased digital engagement, switching of accounts (and relationships) may occur with zero advanced notice. The signs of this potential are all around the industry, as satisfaction and convenience are both being defined more by digital capabilities.

So, while this is definitely not the first time this list of “must-do’s” has appeared, it may be the most important. It also represents the most basic requirements to satisfy an increasingly demanding consumer.

  1. Customer Relationship management (CRM): Develop an advanced analytics strategy that includes customer insights from across the organization (all silos). Use this insight to drive all customer communication and to provide a more robust online banking and mobile banking solution. Deliver this 360 degree perspective to all internal customer-facing entities as well.
  2. Ease of Engagement: Build a digital account opening solution that is optimized for mobile devices and does not require a new customer to enter a branch during the process. This solution must include digital identity verification, mobile funding and information pre-fill for ease of relationship expansion and the digitization of any paperwork that is currently required.
  3. Relationship Expansion: Create a multichannel, multitouch onboarding process that helps a new customer make the most out of their new account with your organization. Make sure the contact strategy has a sequence and cadence that optimizes both sales and customer satisfaction. For more on how to accomplish this, refer to the Guide to Multichannel Onboarding Digital Banking Report. Secondarily, but no less important, leverage advanced analytics to deliver financial solutions to customers digitally and in real-time based on contextual insights.
  4. Financial Advice: Increase the use of digital alerts and notifications beyond simple messaging around financial events that have already occurred (overdrafts, NSFs, etc.) to include ‘advanced warnings’ of potential issues. As with most deliverables for the digital consumer, providing proactive advice will require a much greater advanced analytics commitment.

It is not a matter of educating the banking industry about what is needed to succeed in the future. Virtually all research studies over the past few years indicate bank and credit union executives know what is required in the future. It is now a matter of committing to the investment of time and money requisite of a successfu

Top 10 #Digital #transformation actions from PwC: 1. The #CEO is a champion for digital

In its latest Digital IQ study, PriceWaterhouseCoopers comes up with a top ten list of actions for digital transformation.

Source: Top ten digital transformation actions from PwC – diginomica


Key findings

The 2015 Digital IQ Survey identified 10 critical capabilities that correlate with stronger financial performance. Those organisations that embraced these attributes – our Digital IQ®  leaders – were twice as likely to achieve more rapid revenue and profit growth as the laggards in our study.

The Top Ten

  1. The CEO is a champion for digital.
  2. The executives responsible for digital are involved in setting high-level business strategy.
  3. Business-aligned digital strategy is agreed upon and shared at the C-level.
  4. Business and digital strategy are well communicated enterprise-wide.
  5. Active engagement with external sources to gather new ideas for applying emerging technologies.
  6. Digital enterprise investments are made primarily for competitive advantage.
  7. Effective utilization of all data captured to drive business value.
  8. Proactive evaluation and planning for security and privacy risks in digital enterprise projects.
  9. A single, multi-year digital enterprise roadmap that includes business capabilities and processes as well as digital and IT components.
  10. Consistent measurement of outcomes from digital technology investments.

The CEO is the natural leader as the focus on technology has shifted from operational efficiency to growth, and the stakeholders and conversations have changed. CEOs have ambitious expectations for digital, prioritizing disruption much more highly than the rest of the executive team.

Screen Shot 2015-09-30 at 11.06.11

Digital trends and barriers

In addition to establishing the direct linkage between digital investment and corporate performance, our research revealed important trends about the nature of disruption and the barriers organisations face in its wake.

1. Digital for today’s business – not tomorrow’s.
Despite the market fervor, companies are not investing in technology to disrupt their own or other industries. They are almost entirely focused on applying digital to grow their existing business models and the short-sighted view is cause for concern.

2. Yet plenty of disruption inside of organisations.
Leadership’s desire to capitalise on digital technology is so strong that it’s disrupting the enterprise operating model, as evidenced by shifting spending patterns, new digital roles, and undefined working relationships.

3. And companies are held back by a slow-tech approach.
Staying ahead of both market and internal disruption requires thinking and acting more like a nimble startup. Companies need to accelerate productive working relationships, how they learn and partner, and skills-development.


Full Report: http://www.pwc.com/gx/en/advisory-services/digital-iq-survey-2015/campaign-site/digital-iq-survey-2015.pdf

9 chiffres qui vont vous étonner sur la France et le #numérique | Gouvernement.fr

9 chiffres qui vont vous étonner sur la France et le #numérique | Gouvernement.fr.


C’est ce qu’affirme une récente étude de l’Organisation des Nations unies. La France prend la tête du classement européen et la 4e place du classement mondial fondé sur trois critères : les services en ligne proposés par l’administration, les infrastructures de télécommunications, et le niveau d’éducation des habitants. Et en termes de services en ligne, elle est même championne du monde, notamment grâce au site service-public.fr ! Cocorico !


La France est également le pays du wifi ! Selon les statistiques du cabinet spécialisé Maravedis Rethink, elle dépasse largement, avec plus de 13 millions de bornes publiques, les États-Unis (9,58 millions de bornes). Et ce n’est pas fini : la France devrait accroître de 80% son parc de bornes d’ici à 2018.


C’est ce que révèle une étude réalisée par Teradata auprès de 300 entreprises françaises, allemandes, et britanniques. La France serait au coude à coude avec l’Allemagne, loin devant le Royaume-Uni. Selon cette étude, 3 entreprises françaises sur 5 utilisent des techniques évoluées de traitement analytique pour doper leur efficacité et concrétiser des gains de temps. Une maturité en big data due en grande partie à la qualité de la formation des ingénieurs français en mathématiques et en statistiques. La France est en effet le 2e pays en nombre de médailles Fields !


En un an, 400 000 étudiants, salariés et personnes désireuses d’approfondir leurs connaissances ont suivi ou suivent 53 MOOCS (Massive Open Online Courses) sur le site de France Université Numérique, et dans des domaines très variés. Le catalogue continue de s’enrichir : 23 nouveaux MOOCS ont été proposés depuis la rentrée 2014. De quoi souffler dignement la première bougie de #FUN.


83% des Français utilisent internet, contre 75% en moyenne en Europe, selon l’Insee (2012). L’internet mobile a le vent en poupe : près de 40% des personnes l’utilisaient en 2012 contre seulement 10% en 2007.



Les Français sont également actifs sur les réseaux sociaux ! Selon une étude de l’agence We Are Social il y a 28 millions d’utilisateurs Facebook actifs en France, soit 42% des Français. On like ?



Le numérique représente actuellement 5,5% du PIB français. Selon une récente étude du cabinet McKinsey, la France pourrait accroître la part du numérique dans son PIB de 100 milliards d’euros à l’horizon 2020, à la condition que les entreprises accélèrent nettement leur transformation numérique.



Selon la même étude, les emplois directs liés à ce secteur comptent pour 3,3% des effectifs salariés nationaux. Mais des efforts restent à faire pour profiter pleinement du potentiel de cette révolution d’usages et de services. “Le Gouvernement agit en ce sens avec volontarisme et détermination”, a rappelé Axelle Lemaire. En savoir plus


152 millions d’euros ont été collectés en 2014 grâce aux plateformes de financement participatif, appelé crowdfunding, qui permettent aux internautes de financer directement des projets. C’est deux fois plus qu’en 2013, selon le baromètre réalisé par Compinnov pour l’association Financement participatif France auprès de 46 plateformes françaises. Il s’agit pour l’essentiel de prêts (88,4 millions d’euros), en grande partie rémunérés, mais les plateformes de dons arrivent en deuxième position avec 38,2 millions d’euros collectés. Viennent ensuite, avec 25,4 millions d’euros collectés, les plateformes de crowd equity qui proposent d’entrer au capital d’une petite entreprise. Afin de renforcer la place de la France au niveau international, le Gouvernement a fait évoluer la réglementation : une ordonnance, entrée en vigueur le 1er octobre dernier, supprime ainsi, notamment, le monopole bancaire sur les prêts rémunérés, ce qui permet aux particuliers de financer des projets en prêtant de l’argent contre un intérêt (dans la limite de 1 000 euros par investisseur et 1 000 000 euros par projet).

Branding is not enough: 8 points for digital marketing engagement – diginomica

Branding is not enough – 8 points for digital marketing engagement – diginomica.

December 5, 2014 By 

Source: http://diginomica.com/2014/12/05/branding-not-enough-8-points-digital-marketing-engagement/

SUMMARY: Digital marketers are under increasing pressure to deliver ROI. But at Argyle’s digital marketing leadership event in Boston, there were encouraging signs. Here are eight takeaways .


1, Go where your customers are, even if that means paying for visibility.  It’s one thing to hear a startup complain about the lack of organic reach on Facebook. But when a digital executive from the Boston Celtics says that Facebook is now a pay-for-play platform for brands, we’d best pay attention:

This Celtics executive (Peter Stringer) did not abandon Facebook, however. Instead, the Celtics doubled down on paid Facebook placements, once they determined that their videos received vastly more exposure on Facebook than their own site (the contrast was 2-3,000 video views on their site versus 60-100,000 per video on Facebook). As Stringer put it, and I paraphrase, “I don’t care if my own web site traffic goes down, as long as I keep my audience.”

2. Branding is falling short as a marketing goal, supplanted by a view of improving the “customer journey” with measurable data to prove it.  For the marketers assembled, branding as a goal was low on the priority list. The conference survey of marketing goals for 2015 had branding in dead last with only 3 percent citing it as a priority when I took my screen shot. In first place? “Better leveraging data to understand your customer” at a whopping 64 percent.

But the end goal isn’t just understanding the customer – it’s about using that data to provide a higher caliber of experience. During my podcast with SDL’s Howard Beader, he put it this way:

Customer experience is really about how customers are creating relationships with their customers. How they’re able to help their customers move from anonymous to known, known to customer and ultimately customer to advocate throughout that customer journey.

3. Mobile is non-negotiable, and now includes the complete transaction. Now that mobile is becoming a dominant platform, not just for Facebooking but for completing transactions, the stakes of the mobile experience are much higher.  During a presentation titled “Why mobile matters more than your web site,” IBM Canada’s Warren Tomlin shared the latest Black Friday mobile stats, including:

  • Users on Apple iOS accounted for 21.9 percent of all Black Friday sales
  • Mobile web traffic exceeded PC web traffic on Thanksgiving Day
  • The average smart phone user checks their phone 150 times a day

Tomlin’s most persuasive comment, however, was: “Two of the banks we work with the closest care more about whether their mobile platform goes down than their own web site.” The Celtics’ Peter Stringer shared plans to emphasize mobile streaming and video, given that smart phones are now getting larger and more tablet-like with every release.

4. Even companies in regulated industries can re-invent marketing with the right content and social guidelines. One of the more memorable sessions of the day was the first, a “Fireside chat” with two executives from State Street Corporation. Despite operating in a heavily-regulated financial services industry, State Street found a way to help turn its employees into public advocates and succeed with ventures on LinkedIn (75,000 followers), YouTube, and Facebook. They also launched their own Ted talk partnership, Ted@StateStreet, with significant views driven by employee presentations.

By sourcing their own employees for stories and videos, State Street proved the excuse that “content is hard” is weak. It’s more about building a culture that supports employee content creation with sensible guidelines – thus eliminating the fear of repercussions. And as State Street joked, “With an advertising budget of 375 dollars, we have to be scrappy.”

5. It’s all about “programmatic” marketing, delivering personalization at scale. While the presenters did a nice job of avoiding buzzwords-du-jour, the “programmatic” phrase popped up a few times. At some marketing shows, programmatic borders on an obsession. Simply defined, programmatic is the attempt by digital marketers to bake their customer data into algorithms that automatically trigger actions based on pre-definined business rules.

The ultimate goal? Move beyond segmenting groups to segmenting individuals, where each person receives just the promotions and content they need in just the right moment (including real-time geo-locational triggers). The technology to accomplish this type of personalization has improved, but there’s a big catch:

6. Personalization across channels won’t be possible without an improved marketing-IT relationship. Most of the programmatic success stories I’m hearing about are tied to one software initiative or one channel (such as improving sell-throughs by implementing “abandoned shopping cart” triggers). But the so-called “customer experience” is rarely tied to one channel. Maintaining that level of data visibility across channels remains a very sticky wicket. That means you can’t just buy a marketing cloud and start automating web behavior triggers. There needs to be a relationship with IT to pull the channel interactions together.

7. Digital marketing ROI needs big improvement – attribution tracking can help.  Digital analytics are great at measuring clicks, but this does not always translate into a precise trail of the factors that resulted in a purchase. As a result, marketers continue to struggle to demonstrate the ROI of digital ventures. Improving the corporate awareness of the informed buyer and the role of search in purchasing decisions can help, but search is not the only factor.

One possible way forward was presented by Kathy Bachmann of MarketShare. MarketShare is addressing the problem at attribution. Typically, marketers attempt to set up triggers that are influenced by the various “attribution” factors that result in a sale (e.g. email newsletter link, social recommendation, on-site FAQs and product demos).

What MarketShare found, however, is that the amount of digital attribution factors go beyond what marketers typically measure. If they can prove this, they can make a powerful case for an increased digital marketing budget as resources are re-allocated to emphasize the touch points driving sales. Typically, digital marketing is under-attributed by 20-30 percent according to MarketShift’s data.  Bachmann shared this slide which shows the range of attribution factors that are factored into their algorithm:

MarketShare attribution

The point of crunching the attribution data is to determine which touch points genuinely result in consumer responses and business outcomes. Taking an algorithmic approach to attribution beats the heck out of the rudimentary means of tracing and weighing attribution many firms use. Bachmann cited Citrix as a customer example that has achieved a five percent lift in sales by utilizing this approach.

8. The battle for attention is not just against your competition, but against any form of consumable entertainment your buyers have access to. To win attention, content doesn’t need to have cinematic production qualities, but it does have to be deeply relevant to the target audience – enough to override their endless pings and distractions. As Victor Lee from Hasbro put it in his closing keynote, “I’ll be interested – if you’ll be interesting.”

Manchester City digital companion: Live video channels, stats, second scree, vine and more

On en a maintenant l’habitude, Manchester City est un des clubs les plus actifs en terme de dispositifs digitaux. Et leur nouvelle application en témoigne encore une fois.

Le club Mancunien est le premier à lancer une application second screen pour suivre les matchs en direct. L’application propose des stats en temps réel, des vidéos ainsi que du contenu sur les coulisses des matches.

Comme l’indique le club, l’application Match day commence des le réveil, le match dure 90 minutes mais un jour de match, c’est bien plus que ces 90 minutes.

Ainsi avec cette appli, le club propose a ses fans de passer la journée entière à préparer le match du soir. Les spectateurs qui utiliseront l’app dans l’enceinte du stade se verront également privilégiés car ils pourront accéder a du contenu vidéo additionnel non accessible de chez soi.

Enfin, l’appli permettra de favoriser les échanges entre fans puisqu’elle donnera la possibilité à tous de partager photos, tweets ou autres vines…

The latest edition of the annual Internet Trends of KPCB (Kleiner Perkins Caufield & Byer) is out ! 164 inspiring slides.

The latest edition of the annual Internet Trends report includes: 
1. Key Internet trends showing slowing Internet user growth but strong smartphone, tablet and mobile data traffic growth as well as rapid growth in mobile advertising. 
2. Emerging positive efficiency trends in education and healthcare. 
3. High-level trends in messaging, communications, apps and services. 
4. Data behind the rapid growth in sensors, uploadable / findable / shareable data, data mining tools, and pattern recognition. 
5. Context on the evolution of online video. 
6. Observations about online innovation in China. 

On Digital Transformation – 10 Observations by Mike Arauz

The ideas about technology that have become lenses and points of view I return to as I try to makes sense of how things are changing, and what can be done. This is a digital world, so none of this is etched in stone. But from what I’ve seen so far, these things seem to be true.

CMO Spend 2014: Running on Digital (Gartner Infographic)

CMO Spend 2014: Running on Digital (Gartner Infographic)

Selon une enquête de Gartner, menée entre juillet et septembre 2013 auprès de marketeurs américains de grandes entreprises, les budgets de marketing digital devraient augmenter de +10% en 2014.
En 2013, le marketing numérique représentait 28,5% du budget marketing total, contre 25,5% en 2012. La plus grosse part du budget était consacrée à la publicité digitale (12,2%), contre 10,3% pour le site internet corporate, 9,6% pour le commerce numérique et 9,5% pour le marketing mobile et social. En moyenne, les entreprises ont dépensé 10,7% de leur chiffre d’affaires 2013 sur l’ensemble de leurs activités marketing, et 3,1% en marketing digital, contre 2,5% du CA en 2012, soit +20%. En 2014, les dépenses en marketing digital devraient représenter 3,3% du CA.

Marketing Executives: Digital Media Spend Will Overtake Traditional by 2016 – BWWGeeksWorld

Marketing Executives: Digital Media Spend Will Overtake Traditional by 2016 – BWWGeeksWorld.

CINCINNATI, April 22, 2014 /PRNewswire/  More than half of marketing executives expect to spend more on digital media than traditional channels within the next two years, according to a survey from marketing mix optimization solution providerThinkVine.

A quarter of senior-level marketers say that their spending in online display, social, mobile and other digital channels currently exceeds spending on TV, radio, print and other traditional media. Another 31 percent believe their digital budgets will overtake their traditional spend within the next two years.

The ThinkVine survey polled 200 CMOs, marketing vice presidents and directors at companies with less than $100 million[≈ Large city office building] to more than $10 billion [≈ Chernobyl costs, USD at the time] in revenue about their marketing budgets and spending projections.  Most marketers said they are confident that digital spending will eventually exceed traditional spending, with only 3 percent of respondents saying the shift will never happen.

While the trend to digital media is accelerating, ThinkVine CEO Mark Battaglia said brands shouldn’t go “all in” on digital marketing now until they have the information they need to understand the sales impact of that spend.

“Marketers shouldn’t blindly follow the crowd,” he said. “Consumers in general spend more time with digital media, but it’s important for each brand to know how their specific customers consume media and how different media types work together to achieve sales and brand objectives. Companies can’t take a one-size-fits-all approach to their marketing mix.”

The survey found that an additional 15 percent of marketers anticipate investing more in digital than traditional channels this year and 16 percent of this group expects the shift to happen next year. Another 24 percent think digital will exceed traditional in two to five years, and 8 percent say it will happen in five years or more. Just 11 percent don’t expect digital to surpass traditional in the foreseeable future.

Other findings from the survey include:

  • The insurance, entertainment, finance and technology industries are leading the way in digital adoption. At least35 percent of marketers from these industries report that they already dedicate half or more of their budget to digital (40 percent for insurance, 38 percent for entertainment, 36 percent for finance and 35 percent for technology).
  • Thirty-six percent of companies with $1 billion [≈ box office sales of The Exorcist, 1973] or more in revenue have already seen digital spending outpace traditional or expect to see the shift within the next year. By contrast, 9 percent of companies with less than $100 million [≈ Large city office building] in revenue don’t expect this shift to occur.
  • Depending on the channel, one-fifth to one-quarter of marketers said that their ability to determine historic ROI by channel for digital display, search, social media and mobile was “excellent.” By contrast, one-third rated their ability as either “fair” or “poor.”


“The survey results show that most marketers are moving budgets to digital channels before they have all the information they’d like to have,” said Battaglia. “They told us that they rely more on factors like experience, perceived current performance, and historical spending and trends than tracking and model-driven analytics. As a result, there is still an opportunity for marketers to improve results and gain a competitive advantage by using data and analytics in new ways across the marketing mix.”

A full report on the survey results will be published in May. For more information, visit http://www.thinkvine.com.

About ThinkVine

ThinkVine Marketing Mix Optimization software provides marketers with data-driven, forward-looking insights to hone their marketing mix and improve return on investment. Designed for B2C marketers, ThinkVine’s solution delivers a 28 percent average increase in marketing-driven sales by enabling better strategic decisions about tactics, timing and spending levels across all segments. Combining historical, category, demographic and media consumption data, ThinkVine creates a custom, virtual marketplace that simulates how targeted consumers will respond to combinations of marketing activities over time. The ThinkVine software delivers rich historical insights and better short- and long-term forecasts of ROI and sales, as well as support for an agile, objective ongoing planning process – all with 98 percent accuracy. More information on the software is available atwww.thinkvine.com.

SOURCE ThinkVine