MARKETING 4.0: Chapter 1 to 4 COSLA

Marketing 4.0: Moving from Traditional to Digital

Concept Synthesis and Local Application:

I am currently affiliated with a British Financial Services company with over a 170 year history.  We are  Insurance company that offers a variety of financial services with significant operations in Europe, the United States and 14 Asian Countries.  I am currently the Sales Director for Visayas responsible for the strategic growth of our operations in Visayas.  I plan and execute tactical initiatives in support of the company’s growth strategies in the Philippines.  I lead, coach and mentor 1,200 agents and agency leaders across my territory.  I am looking forward to bringing back to my work place actionable strategies from digital marketing that will have an immediate impact on our growth efforts.

Chapter 1: Fundamental Trends Shaping Marketing

1 Power Shifts to the Connected Customer

1.      From Exclusive to Inclusive

Exclusive: Traditionally we were focusing our efforts on the Class A market segment.

Inclusive: We have started to come up with strategies towards the growing middle class coming from 2 specific demographics:  1) OFW  / Seaman, and 2) Business Process Outsourcing / Millennial markets.

2.      From Vertical to Horizontal

Vertical: Company marketing materials were based on what the company wants the client to know about our products and services

Horizontal: Based on feedback on social media and backed by company research, company now creates marketing materials based on what the client wants to know.

3.      From Individual to Social

Individual:  Company dealt with unsatisfied customers traditionally on a case-to-case, one-on-one basis.

Social: With the onset of social media, the company now takes immediate action to resolve issues with clients

a.       What are the trends in your industry that demonstrate the shifts toward a more horizontal, inclusive and social business landscape?

Clients are more educated on the value and even the process of proper financial planning through the internet.  If you have a question, just google it or youtube it (Horizontal).  In the early years the company was more focused on offering our products and services to the Class A Market as evidence by our various marketing events such as Wealth Management Seminars, Estate Planning Seminars and Economic and Market update events. Now do smaller but more frequent “events” that cater to the rising Middles Class segment stemming from the growth in income from the OFW/Seaman and BPO/Millennial markets. For this segment now we do Financial Planning which are more catered to the needs of this growing market segment (Inclusive). Company now responds to complaints posted on social media (Social)

b.      What are your plans to embrace these shifts in the marketplace?

The Internet is the new market place and as such traditional marketing strategies using face to face contact as the basis of actionable plans needs to align with this growing trend.  For one, I plan to come up with strategies and tactical activities using social media to generate awareness and therefore be a source of lead generation activities for our team in Visayas. As discussed earlier we are also shifting tactical initiatives to cater to these new segments. Traditionally, we would invite the Upper Market Segments to a sitdown dinner for a presentation.  Given the inclusion of a growing middle class specifically to the OFW/Seaman and BPO/Millennial market, instead of inviting them to a venue, we go to where they assemble.  We have started doing pocket seminars where OFWs and Seamen hold meetings such as review centers.  The same tactic is done for the BPO and Millennial segment where we go to their companies (in coordination with their HR departments) to conduct pocket seminars as well.

As far as digital marketing is concerned, I for one is just discovering how to fully utilize this amazing and dynamic tool for marketing our products and services.




Chapter 2: The Paradoxes of Marketing to Connected Customers

1.      Breaking the Myths of Connectivity

Connectivity, in my industry, has had an impact in the last few years and is becoming more relevant.  In the past, companies would develop products and then position and market them to customers. Innovation comes from within as mentioned in the previous chapter.  Through the internet, customers are more informed of financial services; and, therefore the packaging of financial products is no longer about what product the company wants to be pushed but rather what the market actually wants.  Companies are now ”on their toes” so to speak with regards to pricing their products as the internet has proven to be reliable tool for clients to compare products and services between one company and another. A by-product of this trend is that almost all companies sell similar products.  So what’s the differentiating factor, it is now experiential connectivity.  As I discussed in one of my Customer Service Training programs in the past, Customer service is no longer just about being able to address the client’s concern; but now, it’s about the Customer Experience.  There are times when a company was not able to satisfy the client’s concern but if handled properly the client still comes out with a good customer experience.  I’ve even seen a few instances where in we were able to address the client’s concern but still ended up unhappy or dissatisfied with the way it was handles.

2.      Summary: Marketing Amid Paradoxes

2.1 Paradox No.1:  Online Interaction Versus Offline Interaction

In my industry, high-touch is indeed the new differentiation.  As discussed earlier, company’s are now offering practically the same products and services and are similarly priced as well. The Differentiation will be the high-touch.  In my industry, it’s still boils down to trust.  In the banking sector for example, observe when people make a withdrawal they usually do this using the ATM.  Now compare this to when people make a deposit, usually it’s done over the counter. There will always be transaction you’d prefer done with human involvement.  Same in our industry, a lot of companies, including ours, is now starting to have internet based applications for insurance; however, as I see it during a claim, client’s will always rely on that human interaction for purposes of assurance that the processing will get done.

2.2 Paradox No.2: Informed Customer Versus Distracted Customer

Similar to what was discussed under Paradox No.1, because of the internet clients now have other sources of information regarding financial planning other than the internet.  Recently clients have been comparing products and services on line.  In response to this behavior we’ve been teaching the agents the value of convincing the client based on service and not just products and features.  We have to win the clients attention based on high touch and not just high tech.  Related to this, our company needs to improve it’s brand awareness campaign.  In my situation, I promote the company brand through the training, mentoring and coaching of our agencies.

2.3 Paradox No.3: Negative Advocacy Versus Positive Advocacy

Long have I been telling our agency is the best billboard or media commercial will be the agents.  They are the walking talking billboard of our clients; and because of this, the agents should always be mindful that satisfied clients become our raving fans and inversely can become our worst anti-advocate.  Clients, in that sense, should be treated as partners in branding.  For as long as a client gives a referral then the agent should know that they’ve done a good job in servicing the client and therefore have become referable and consequently makes our company a brand worthy of a referral.

a.       What are some cases in your industry that capture the paradoxical nature of connected customers?

All three paradoxes refers to the value of clients as brand ambassadors.  As mentioned in our Marketing Management course under Prof. Joy Polloso, the end in mind is to make your clients raving fans of your brand.  A company should make a deliberate effort from moving from share of wallet, to share of mind and eventually to have share of heart. With share of heart the client becomes your raving fans and constantly, with our prodding, advocates for your company’s products and services.  The internet allows clients to compare products and services.  As a consequence, company’s are now developing similarly priced products and services with almost the same features.  Where will a company get it’s advantage? Again, it will be based on the trust and relationship we build with our existing clients.

b.      How do you plan to embrace the paradoxes?

As discussed earlier, high tech will indeed help in generating the initial interest and curiosity of our clients; but in the end, investing on high touch will still prove them a good marketing strategy specially for customer retention and referrals.  As mentioned earlier, on my own as a Sales Director, when I do training or sales clinics I often emphasize the value of customer service.  As we often say, “The client doesn’t care how much you know; until they know how much you care”.  I always tell agents that if you find your clients buying from you again and / or giving you referrals, pat yourselves on the back as you just created a raving fan of our brand.  As I mentioned before, it’s TaoNotTech.

Chapter 3: The Influential Digital Subcultures

1.      Youth: Acquiring the Mindshare

As discussed in the chapter, Youth (ages 10 to 24) represent 1.8 Billion people.  Company’s should again have deliberate efforts to have the share of mind of this demographic.  Yes, they may not have the purchasing power right now but by the time they reach productive age, they will be the biggest consumer market segment.  Investing in their share of mind today will have an impact on tomorrow’s sales.

2.      Women: Growing the Market Share

I often ask during training, “Who is more powerful, the CEO or the CFO?” and my answer would always be the CFO as even the CEO needs his salary to be paid and the CFO signs the check.  Such is true with Women clients in our business.  Although we sell to the CEO or husband, we all know from experience that, more often than not, the final decision to purchase will be with the CFO or wife.  I’ve often said to my agents, “If you think that the wife is your ally is financial planning then you are wrong.  She can either be your worst enemy or greatest ally.  It will depend on how involved the wife is in the whole sales process”.  I’ve often seen sales fail or succeed based on the opinion of the wife.  Essentially you are not just selling to the husband but you are actually selling to the wife as well and she would normally have a say, an opinion and more questions on the matter.

3.      Netizens: Expanding  the Heart Share

I have seen first hands the influence of Netizens in influencing others when it comes to Financial Services.  As mentioned earlier, if they become raving fans they are our brand ambassadors, endorsing our company, products, services and specially endorsing their agents.  In the same manner they can be our worst critics, quick to posting bad experiences with our company, products, services and most specially the bad experience with their agetns.  We recognize their value as social connectors and their ability to share information.  We recognize their role as expressive evangelists and content contributors, story tellers who share their experience, good or bad, on-line. 

4.      Summary: Youth, Women and Netizens.

Our company has long identified the value of Women as an influential market segment.  It is only in recent years that the company has embarked on deliberate campaigns to involve the youth (commonly known as the Millennial Market segment) as well as the impact of the internet through sharing of information done by Netizens.  Our company has embarked on a campaign to influence these aforementioned segments as we recognize their ability to have an affect not just on our sales but on our branding strategies as well.

a.       How can your business acquire greater mind share by leveraging youth’s roles of early adopters and trendsetters.

Instead of just selling to this segment, we conduct well management, wealth creation and savings and investment programs, events for this segment.  Our goal is to educate; and when they make that decision to buy, supposedly it is our brand they will remember.  We’ve realised that normal sales method do not apply to this group.  Normal being one-on-one selling.  We’ve realized through experience that they are more open if they see that their peers are also interested.  Thus the change in strategy from one-on-one presentations to small group presentation.

Aside from this, we also recognize that they are digitally savy so I, together with some of my managers, develop content which will be distributed through facebook shares with the intent of arousing the curiosity of this segment to learn more of the value of proper financial planning.

b.      How can your business grow market share by leveraging the household influence of women?

Our company highlights benefits would appeal to the needs, concerns, and aspirations of women.  We have products that cover them for critical illnesses such as cancer.  We have products that addresses their aspiration to provide a good education to their children through our savings and investment products.  We have products that addresses the need to have peace of mind; knowing no matter what happens to the bread winner, the family’s lifestyle will be protected and will continue.  Selling to women is a more emotional proposition.  Although it’s the same product being sold to me, the approach with women should be different.  Where men would appreciate cost to benefit comparisons; with women, it would be more of the personal benefit of having our product and how it can provide security, safety, stability for the family.  We use strong emotional words that women normally respond to.  Lastly, as mentioned earlier, as much as possible we involve the wife even if we are presenting our financial solutions to the husband as we recognize their influence in the decision making process.

c.       How can your business identify and utilize netizens to win greater heart share?

Gone are the days where we have brochures for purposes of information campaign.  Now, using the internet, as a company we have started developing materials that are “internet friendly”.  This means that we create content that catches the attention of the netizen and with enough information for them to learn but leave room for more questions than answer so that they are more receptive to a more detailed discussion.  This media is being used for both sales and recruitment.

Chapter 4: Markeitng 4.0 in the Digital Economy (When Online Meets Offline, Style Meets Substance and Machine-to-Machine Meets Human-to-Human).

4 Marketing 4.0 in the Digital Economy

1.      Moving from Traditional to Digital

Although I have mentioned in previous COSLA discussions that our company is trying to move from vertical to horizontal relationships, we have attempted to move away from our traditional market which is the upper segment to include those in the middle segment specifically those belong to the growing middle class coming from the OFW/Seaman and BPO/Millennial markets.  As both these segments are mainly composed of young, digital and internet savvy and in to social media, our marketing strategies have been shifting to using social media for purposes of brand recognition and getting the attention of these growing segments.  In terms of branding, we do our best to deliver our promise of “Always Listening, Always Understanding”  We deliver our promise by developing products and services and marketing them to fit the lifestyle, concerns, and goals of these segments.  We are even shifting our paper processes and plan to go fully digital by years end.

In a way we have also shifted some of marketing concepts to the 4 C’s.  In terms of co-creation we run regularly our customer feedback campaign which is done both manually (through survey letters) as well as on-line (through email and our website linked to our company’s FB account) to gather information how else we could improve our processes and products. As for currency, we have used actuarial tables to determine our pricing schemes.  Not as dynamic compared to today’s standards; however, we do change our pricing every so often depending on market experience.

Again, in our own way, we have also been shifting to communal activation.  Sales is all about distribution.  The bigger and wider the distribution network the closer you get to the customer. This is why we’ve set up our system to allow agents to work without the need to go to the office.  We are moving towards an almost paperless transaction environment which allows an agent to work anywhere in the Philippines without the need for a physical office.  Peer to Peer is also seen in our recruitment efforts where we follow a more “Professional” networking model that allows the recruitment of your 3 F’s and if they become productive, the recruiter also earns from those sales.

2.      Integrating Traditional and Digital

As mentioned above, our company is still more of the Traditional mode and it is only recently that we have embraced Digital Marketing.  As I’ve seen, we can not really remove the traditional model.  As discussed in the chapter, Traditional marketing is more on the initial interaction between company and client.  Digital marketing in our business, for now, is more used as a tool to either enhance the relationship or create awareness or advocacy which lays down the foundations of future sales or subscription to our financial services.

      Summary: Redefining Marketing in the Digital Economy

In my assessment, with the shift from Vertical to Horizontal, our company is on the right direction towards digitization including digital marketing.  All of these are tools to maximize customer engagement with intended end results of maximizing the customer experience which in turn results to more sales and profit.  In our industry, digital marketing in still in its infancy but as early as now we are laying down the ground work for the future as we tap this new market place to the hilt.

a.       How can your brand develop a powerful differential based on human-to-human touch in the digital world.

We’ve always put a heavy importance on building trust and relationship with our clients.  As previously explained, as an example, we don’t just believe in customer service which is all about doing your job; but now, we are more on the customer experience where in our clients have positive feedback about our company.  One example is our use of facebook to address client concerns.  Traditionally, as a company, we usually wait for a formal written complaint before we address client concerns.  With the advent of social media, we are now responding more quickly as delay alone has proven to give a negative impression of our company.  We are also now developing portals and mobile apps which allows both agent and client to review the client’s  accounts with us for a faster mechanism for feedback and update. Complementing our credo “Always Listening, Always Understanding”, we intend to use digital technology to complement our ability to listen to our client while providing for fast and accurate response through machine to machine but more on human to human interaction as our adherence to always understanding.

b.      How can your business transition from the traditional 4Ps to the digital 4Cs by adopting co-creation, taking advantage of currency-like pricing, engaging in communal activation and driving conversation.

As articulated earlier, we have slowly been moving to 4Cs.  For co creation, we are heavy on feedback from our clients in not only improving our processes but in developing products and campaigns that are appealing to our new markets.  As for currency, traditionally we have been adjusting prices based on market experience; however, I will be the first to admit not as fast as other industries.  The closest to communal activation that we’ve done is our peer to peer recruitment of new agents.  By engaging the peers of our existing agents, we are able to widen our distribution network faster and therefore reach more clients faster compared to other industries.  This is the major reason why our company has the largest agency force in the industry with over 17,000 agents nationwide and still growing.  As for Driving conversation, we have started to develop materials purposes for social media with the intent to attract and raise the curiosity level of netizen for elicit a conversation to no more but this time through our agents.  In fact we have an on-going campaign where through social media, we have posted videos and infograph with the intention of eliciting a response to get more information and thereby get referred to our agents.  It’s been on-for a few month already and we have started to elicit the intended response.

c.       What are the fundamental changes required in your customer-service strategy to embrace collaborative customer care?

I believe I’ve discussed this already in the previous paragraphs but allow me to site one ongoing campaign.  The Make it Easy Campaign streamlines our processes.  Aside form our processes, we have already uploaded in our Website the different steps and (for now) the different forms and documents for clients to transact  such as full or partial withdrawals from their funds as well as filing the claims.  We encourage our agents to use this facility as it save time compared to going to our offices and getting the same documents and requirements.  Part of our digitization strategy, as previously discussed, is to minimize if not eliminate the need for paper transactions making all of these transactions available on-line.