How Salesforce Can Align Digital and Technology Strategy In a Shopping-driven World?
Very soon, we will no longer be able to shop at these 3 JC Penney stores located at Dunkirk-Fredonia Plaza, Westfield Sunrise, and Palisades Center in the New York region.
JC Penney decided to close 138 stores all over USA as part of its strategic decision to align with their omnichanel strategy. Wal-Mart’s 2016 strategy was similar when they closed 269 stores and acquired fast growing e-commerce store ‘jet.com’ and acquired a leading women’s online fashion retailer company “Modcloth” in the beginning of 2017.
This phenomenon of closing brick and mortar stores and acquiring fast growing online retailers is to attract the customers who are shopping-driven. Yes loyalty-driven customer base is decreasing and shopping-driven customer base is increasing.
A recent research done by Mckinsey in 30 categories, revealed surprising results in relation to consumer behavior. Out of 30 categories only 3 categories are 13% loyalty driven consumers and the rest 27 are driven by a strong 87 % shopping driven tendencies of customers. All these 27 categories mostly fall into the daily consumable and non-consumable products. You can find the full research and analysis in the following The new battle ground for Marketing led growth.
Organizations should craft their Digital marketing strategy according to consumer behavior towards their products and brands and invest their marketing efforts accordingly. Shopping driven consumers by definition are those set of consumers who do not stick to one brand and keep changing their choices or experimenting with price and quality. This kind of behavior in consumers is increasing because of numerous channels of shopping and the superior quality of customer experience and new service offerings through the supply chain strategy.
Meanwhile, the state of marketing is being driven by the Digital marketing hub with the convergence of marketing technology and ad technology. Technology research firms define Digital marketing hub as the platform where there is convergence of Marketing technology and Advertising technology with power of analytics, automation and real time data access.
Gartner has released its Magic quadrant for Digital marketing Hub for 2017 and Salesforce Marketing cloud has been named as one of the leaders. However, marketing leaders and Technology leaders consider Salesforce Marketing cloud as the ideal platform for the fact that the Salesforce Marketing cloud is hosted on the leading PaaS (platform as service) which is force.com and also part of Customer Success Platform. Salesforce (PaaS) has been awarded the leader in 2016 magic quadrant for Platform as service.
AppExchange gives that additional edge to the current users when compared to other marketing cloud vendors in the declared magic quadrant where Salesforce Marketing cloud users can download custom built free and paid applications from AppExchange to integrate applications and adopt custom business process according to their Organizational needs.
‘It is imperative that the conventional 4 p’s of Marketing Product, Price, Promotion and Place needs to be replaced by four C’s Culture, Content, Community and Connect’ says David Dubious, Social Scientist and Marketing professor in INSEAD Business school. He also stresses on the fact that organizations need to adopt the Potterian marketing model where digital and social channel fits exactly to this model in his interview with Strategy +Business(S+B) The Digital Value loop. The idea behind this model is to build brand along with generational consumers and their changing behaviors by having a lifetime conversation. This will help the brands to evolve with the customers.
I would like to particularly reiterate one of the key and unique strengths emphasized upon by Gartner in relation to SFDC, is that the marketing cloud envisions the full-life cycle of customer engagement. This is a crucial feature which Technology and Marketing leaders need to focus on while selecting the Digital Marketing hub. Among other leaders in the 2017 Gartner Magic quadrant for Digital Marketing Hub, SFDC marketing cloud was specially recognized for having the ability to build long term conversations with consumers through the vision of full-life cycle customer engagement.
I hope with my blog I have given valuable insights to the Marketing leaders in crafting their strategy around Digital channels and Consumer behavior and for Technology leaders reducing complexity in decision making for choosing the digital marketing hub platform. I am confident that by embracing SFDC marketing cloud your digital and technology strategy will be aligned in achieving the business goals. We are proud to be associated with Salesforce as a Silver Consulting Partner and help clients get on board with our Implementation, Integration, Administration, Support and Development Services. Email us at email@example.com to know more!