(Continued from Part 1)
Digital marketing is coming into full-fledged use alongside the popularization of smart devices and social media. "Customer-centric" approaches, which seek to understand individual customers' thoughts and behaviors to provide the products and services that customers want, are now attracting attention. In the second half of the presentation, key points for leading customers' digital marketing to success were discussed in the sessions entitled "Reframing Marketing with CX-First" and "The Front Lines of Fujitsu's B2B Digital Marketing Initiatives."
[Fujitsu Insight 2018 "Digital Marketing" Special Presentation Report]
Emphasizing Marketing Restructuring with a Focus on CX
Following Mr. Kanda's presentation, Masashi Hirayama, Head of the Digital Marketing Business Department, Digital Solution Division, Fujitsu Limited, took the podium. In response to the problems Mr. Kanda raised, he stated that the key to facilitation lies in CX (customer experience), speaking of the importance of CX-centric marketing restructuring.
Supporting Marketing Innovation in a Comprehensive, Not Limited, Manner
Head of the Digital Marketing Business Department,
Digital Solution Division
In his presentation, Mr. Kanda pointed out that facilitation with a perspective on customers is the key to digital transformation. Aiming at digital transformation, companies are implementing radical changes. Diversification of consumers' likes and tastes as well as the arrival of mobile devices have led to drastic changes in consumer behavior. In addition, products and services are becoming indistinguishable. I recognize CX to be the key to promoting digital transformation in this complicated market.
Fujitsu is thoroughly pursuing CX-First marketing. In 2016, we launched Fujitsu Digital Marketing Platform CX360 ("CX360"), a new offering model for digital marketing. The name is intended to be a brand message that conveys that we understand customers from a 360° perspective—in other words, from every angle—in order to improve the customer experience and to help advance marketing.
This facilitates a closer to real time, deeper understanding of customers through customer-centric data integration, marketing AI, and marketing design. In addition, marketing measures as a personal approach, including the design of customer-centric business processes and measures, help us take thoroughly customer-centric actions in real time. The PDCA cycle supports marketing innovation in a comprehensive, not limited, manner.
CX360 utilizes the technologies, know-how, and approaches that Fujitsu has cultivated to provide three sources of value: Solution CX360, a customer-centric real-time marketing solution; Team CX360, a group of specialists that supports one-stop digital marketing; and Community CX360, a system that facilitates service provision and co-creation in collaboration with external partners.
CX360's Three Sources of Value
Thus far, Fujitsu has mainly offered IT solutions, but CX360 provides comprehensive support ranging from upstream consulting to actual implementation of measures.
Solution CX360 systematizes solutions that help achieve CX360 in five areas. It includes solutions that help optimize all channels, including MA, CMS, CRM, and contact centers. It also provides a marketing AI solution that utilizes DMP and CDP.
Solutions that help achieve CX360 are systematized in five areas.
Team CX360 is a team of professionals with a wealth of experience in using IT to support marketing. To assist customers, the team is comprised of three units: business producers engaged in marketing design, data engineers engaged in agile development and data integration, and curators, who are a group of data scientists engaged in modeling and analysis using AI. Fujitsu believes their experience helps facilitate coordination across corporate departments. So far, we have assisted more than 250 companies with marketing.
Delta Air Lines' Thorough Customer-Centric Approach
Please allow me to speak about a case study regarding US-based Delta Air Lines. The company employs a thoroughly customer-centric approach to create high-quality customer experiences in all services. One example is how they respond to flight delays and cancellations in advance. Delta Air Lines regards these worst moments to customers as opportunities to make a good impression and has worked to make it possible to inform them of flight delays and enable them to select and reserve alternative flights in a one-stop manner via smartphones. This is just one example, but all other scenarios are also designed in a customer-centric manner, and their business processes and systems work together in harmony. These efforts have led to an 80% increase in operating profit and a 600% boost in stock price.
Marketing Restructuring with CX-First
One interesting survey result is that 74% of businesspeople answered affirmatively to the question of whether they have succeeded in providing excellent customer experiences. However, only 8% of all consumers answered that they have actually had excellent customer experiences. What causes this difference?
One possible factor is that information sharing between organizations is so insufficient that their systems operate separately as isolated silos.
By working on marketing independently in a partially optimized manner, different departments deliver different marketing messages to customers, which causes customers to appreciate the entire company less. Another possible factor is that consulting companies and agencies that support marketing and IT vendors perform partial optimization.
Thus, Fujitsu recommends that customers reframe (restructure) marketing in a customer-centric manner. The diagram to the right shows a complete view of CX-First Marketing, a concept devised by Fujitsu. What is important is to thoroughly design the red area at the top of the diagram, which indicates the sequence of customer experience (recognition → interest → comparison & consideration → purchasing & planning → participation & sharing → spreading) into a full funnel. This design serves as a basis to create measures and business processes and to deploy necessary solutions. As a result, data is integrated without dispersal and value is added using AI. The key point is to drive the cycle to feed this back to improve customer experience. Fujitsu's actual in-house practices led to a 150% increase in conversions compared to before. Thoroughly designing a complete marketing plan is of the utmost importance.
CXC3, a Framework for CX-Centric Marketing, Advances Customers' Digital Marketing
In the planning phase, Fujitsu proposes CXC3 (CXC cube), a consulting framework that helps achieve CX-centric marketing. This framework helps achieve marketing that advances customer experiences in a CX-centric manner for the three C's: customer comprehension, common strategy, and cross action.
Framework that Helps Achieve CX-Centric Marketing
Case Study on K-Opticom Corporation's Use of the CXC3 Framework
Now, please let me describe a case study on K-Opticom Corporation, a customer implementing customer-centric marketing using this CXC3 framework. The company wanted to increase customer loyalty. In the customer comprehension phase, we helped them understand not only traditional attributes, such as customer comprehension, customer attributes, and other contract information, but also each customer's more specific attributes, such as likes, tastes, and life stage.
The next step involved sharing those pieces of information across departments, implementing a CX improvement project, and designing a series of customer experiences as well as measures, tasks, and IT to achieve the same.
Objectives and tactics common across departments were established, and online and offline measures, including traditional channels (e.g., call centers, email, and DM) and new channels (e.g., Web chat and LINE), were coordinated on the customer axis across departments. This initiative led to K-Opticom's continued improvement in customer satisfaction, as proven by the company topping the 2018 Oricon Customer Satisfaction Ranking for the fourth consecutive year in the category of Kinki region providers.
It is important to always evaluate CX from customers' perspectives and to lead internal organizations in one direction, thereby creating a common view and culture within the company.
Customer Experience Evaluation from Customers' Perspectives
Fujitsu aims at CX-First, an approach to continue to pursue what is right for customers. To pursue the ideal customer experience from customers' perspectives, we strive to understand customers more deeply from different angles through customer voices, customer journeys created using marketing knowledge, behavior analysis, and external data and AI utilization by data scientists.
To further reinforce CX360, Fujitsu has started to collaborate with beBit, an experience design firm. Collaboration with beBit will facilitate thorough pursuit of customer-centric approaches so that we can establish a system aimed at producing positive results in a one-stop manner from upstream to downstream. We are working on this as part of Community CX360, our system for building an ecosystem with solution and data vendors.
Fujitsu aims to advance marketing by continuing to improve the customer experience for each customer while analyzing customer behaviors from all angles using CX360. Going forward, we will continue to help customers transition "from value provision to value creation."
Fujitsu's B2B Digital Marketing
Following Hirayama's presentation, Yasuhiro Kano, Head of the Marketing Communications Unit, Fujitsu Limited, took the podium to explain Fujitsu's latest initiatives.
LoB Leads Future Digital Transformation
Head of the Marketing Communications Unit
Lately, B2B digital marketing activities have moved from the practice verification phase to the phase in which achievements are required. It is important to analyze digital data to catch signs of customers making purchases and to connect these to sales and to visualize results.
Digital transformation has begun in various industries and areas, including manufacturing, healthcare, and financial services. Just a year ago, many of these were still in the verification phase, whereas now many companies are in the implementation phase and have actually started to produce positive results.
Application fields have also broadened to Line of Business (LoB). Fujitsu's challenge was how to approach LoB. Conventional methods alone are insufficient to facilitate acquisition of LoB customers. In addition, we faced the problem of customer touchpoints information being managed separately by individual sales representatives and organizations (e.g., departments).
To carry out marketing in accordance with insights into customers, we worked to shift to data-driven marketing. This initiative's three key points are to practice digital marketing, enhance content, and grow globally.
In digital marketing, we accumulated data scattered throughout the company onto a data management platform (private DMP). In addition, we used a marketing automation (MA) mechanism to build a system that facilitates lead acquisition and nurturing leads into prospects as well as handing them off to the sales department to win deals. We also developed a pipeline at the demand center and adopted an account-based marketing (ABM) approach for specific customers.
Key to Practicing Digital Marketing
Content enhancement is performed while simultaneously publishing digital content and holding in-person events. In addition, Fujitsu reinforced efforts to seek out customer insights by, for example, holding design-oriented workshops. At this event, LoB customers accounted for 80% of attendees. What matters is to firmly assist the customers that have visited the venue.
In terms of the global growth of digital marketing and content, Fujitsu is gathering requirements through discussions with overseas marketing teams. In addition, we have established two workshop studios in Japan and three abroad.
Reflecting on Our 2018 Initiatives
In 2018, Fujitsu focused on three points: industrial approach reinforcement, shifting from "quantity" to "quality" content, and customer point-of-contact information for sales collaboration and CRM.
Regarding industrial approach reinforcement, we actively participated in industrial events and acquired 10,000 or more new leads at 15 events in the first half of 2018, and we aim to acquire a total of 25,000 leads in 2018.
We also understood industrial trends, strove to satisfy customers' interests, and enhanced content quality on a per-target basis with a focus on practical examples. In addition, we started global provision of an eBook that compiles cases from various industries.
Regarding reinforcement of sales collaboration, we accumulated a variety of touchpoint data as customer point-of-contact information. Leads that were discovered through digital marketing are increasingly integrated into sales activities.
Findings from Practicing Digital Marketing
In practice, we had some problems; individuals' purchasing behaviors alone do not help determine signs, and there are many points of contact with customers that sales representatives do not know about. We are attempting to resolve these by analyzing individuals and organizations as well as by practicing ABM. Another problem is that capabilities vary from region to region and from country to country. To address this, we are working on finding points in common and making things into services on a global basis.
Going forward, Fujitsu will make various efforts with a focus on insights for customers. In particular, we will continue to reinforce the listening function for better Life Time Value and achieve operational unification via a global combined team.
Head of the Digital Marketing Business Department,
Digital Solution Division
Head of the Marketing Communications Unit
(The presenters' departments and positions are as of the December 2018 lectures.)