Healthcare Leaders: How Are You Managing Your Data?

In the healthcare industry, digital transformation is important. It helps support innovation, which in turn, helps benefit customers in the payer and provider space when it comes to data management.

Healthcare leaders need to secure and manage data now more than ever before. Without the proper solutions to make this happen, healthcare professionals fall short.

“Delphix unlocks healthcare data to build next-generation products, deliver higher quality and more personalized services, and drive operational efficiencies.” – Delphix reports

The first step to learning how to manage your data?

Start With Delphix’s eBook

Download the eBook to find out how eight Delphix healthcare customers benefited from transformational changes that enable secure data management – whether on-premise, in the cloud, or both – while protecting PII and PHI information.

To download the eBook: Click here.

Interested in what you see? You can meet Delphix at our next Digital Enterprise Transformation Assembly West…

ABOUT DIGITAL ENTERPRISE TRANSFORMATION ASSEMBLY WEST

The Millennium Alliance is thrilled that you’re interested in Digital Enterprise Transformation West Coast in August 2019.

As more and more businesses look to digital technology and strategies to transform their business, CIOs know that data and information technology have never been more important. Understanding the convergence of mobile, social, and cloud is the first critical step for organizations looking to create opportunities and stay ahead of the competition.

Join us in Las Vegas for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions will offer industry-specific topics and trends to ensure your company maintains its competitive advantage.

Are you interested in becoming a sponsor for this event? Click here today to learn more >>

Are you interested in attending this event? Inquire here today to find out if you qualify for Millennium Membership >>

How the Digital Transformation Has Redefined Freelance Work

The term freelance has been around as early as the 19th century. In fact, the term was first used to describe a mercenary for hire, hence free “lance”. Since then, freelance work has evolved so much. The emergence of the digital age over the past decade has redefined freelance to what we know it to be today. Here on “MobileFirst, Mobile First!” we have looked at how the digital age has been transformed by the growing number of mobile devices. Mobile has ceased to be just a means of communication and is now a vital part of how people live and work. Consequently, freelance work has also evolved with it. An employee can now work for multiple companies and on numerous projects from one device.

Technology Created The Gig Economy
The gig economy was born through the advancement of the digital age. Due to how it is now much easier to work from home or a remote location, companies are finding it much more convenient to hire independent workers who can apply their skills for a short period of time. This has opened up the job market as companies are much more likely to hire on short-term contracts than invest in full-time employees. Forbes indicates that 57 million Americans are part of the gig economy, which amounts to one-third of the U.S. population. Moreover, a little more than 50% of full-time freelancers use third-party websites or applications to find work. This shows how the mobile digital landscape has led to a rapid rise in freelance work.

The Future Of Tech Is Freelance
Today’s tech industry relies heavily on freelancers. This particular set up works well for smaller tech companies looking to save on costs. It also helps businesses explore a wider range of skilled experts and find someone whose background fits a particular project. At Google, for example, contract workers outnumber regular employees, and this is a trend that has led to the prediction that 45% of tech jobs will be freelance by 2028. One reason for this is the adaptability of freelance workers. Yoss states that hired freelancers can often fill a role much faster due to their availability. This has become hugely beneficial for tech companies who don’t have the resources to train their own staff and allows freelancers to develop a diverse portfolio across multiple work placements.

Redefining Traditional Job Profiles
Freelance has become an impetus for what ZD Net calls “reskilling”. The site notes how freelancers now have to deal with other skilled tasks they didn’t need to before, such as contract negotiation, accounting, and client management. Tech journalist Michael Rander in his post on the digital economy, “the digital economy creates an opportunity for providing continuous learning that is more active and self-directed.”

Traditional job profiles have become blurred in this new digital landscape where freelancers are their own managers. The rate of “learning by doing” increases when you work for different clients on a daily basis. Freelancers are constantly acquiring new skills that help them become better and more marketable. The emphasis on learning new skills is high especially in the tech industry where experts are required to keep up with the latest software and technology.

Where Detour Was Really Going

Guest piece written by Fernando Machado, Global Chief Marketing Officer at Burger King. The Millennium Alliance is honored to work with Fernando as our Keynote Speaker at the Digital Retail Transformation Assembly from August 26-27 at the Fairmont Dallas in Texas. 

Enjoy!

EXECUTIVE SUMMARY

In the past few years Burger King built a reputation for itself. The brand mastered the art of using creativity to get people’s attention and build brand love. McWhopper, Google Home of the Whopper, Burning Stores, among many others got talked about everywhere, achieved billions of impressions, helped revamp the brand and got celebrated by our industry. Surely many of our blockbuster campaigns drove traffic (bringing people to restaurants) and sales. But the main focus of most of them was to “make the brand cool again”. That’s why we see Whopper Detour as a defining moment for our brand. There is a clear before and an after Whopper Detour. This campaign marks a turning point in our marketing and shows what we believe the future of great creativity might be (at least for us). A future where creativity is only used to (and celebrated for) responding to real, tangible business and brand goals.

This is an idea which plays with technology which is not necessarily new. Geofencing and mobile order and payment have been around for a while. It’s also not easy to convince people to download mobile apps from fast-food brands (especially burger chains). Many brands (including ourselves) couldn’t get people to download their apps even when giving products away. Yet, Whopper Detour increased the BK mobile app sales by 3x during the 9-day promotion and by 2x ever since the promotion ended. This campaign catapulted BK’s app from a modest #686 in the app store to #1 (across all categories; on both iOS and Android). It also drove the highest foot traffic (people coming to the restaurant) in 4.5 years.

So, the question is: How the hell did that happen?

This is the story of a crazy idea that delivered real business results. Scratch that — insane business results. An idea that bent the rules of direct marketing, experiential and e-commerce/technology. An idea with scale and long-term impact.

This case not only shows the power of a big idea and what it takes to make something different happen, but also the reason why our creative partners (aka advertising agencies) are so relevant. Big creative ideas eat programmatic, AI, trends, and even a beautifully put together McKinsey presentation for lunch. And these days people seem to forget that a bit. Big ideas is where our industry should focus. We used the art of creativity to get people’s attention, build brand love and build our business today and tomorrow. In scale. This was not a one location, one day stunt that gets people to talk about it (especially industry people) but is not linked to results. When we celebrate ideas like this one, we show that our industry (advertising and creativity) can indeed have a bright future and will be able to continue to have fun and make great business. And that’s the main reason we wrote this case study and are sharing it.

If you don’t have time to read (which would be a shame!), watch this:

Whopper Detour is one of my favorite Burger King ideas ever. It took us about a year to make. The idea came to us from FCB New York, and evolved a lot over time (a characteristic we see in all of our best campaigns). It involved a large team to pull it off, including our technology team and key tech partners. We basically had to recode our newly updated mobile app with mobile order and payment to now also work well and consistently with geofencing. In fact, to make this idea work we had to geofence all of our restaurants in the United States (more than 7,000) and all of the McDonald’s restaurants (more than 14,000). Plus, make it reliable! Can you imagine the amount of time and pressure to make this happen? But it paid off. Big-time.

We are investing a lot to improve our guest services at Burger King and technology has a key role in this. After all, mobile has grown to be a vital player in the QSR space, poised to be a $38 billion industry by next year (Source: QSR Magazine, Sep 2017). But, mobile order and payment isn’t new to people, nor is geofencing. So, to get people to actually care about our BK app is a testament to the beauty of this campaign, which started with a very simple PR headline: “You will be able to order a Whopper for 1 penny at McDonald’s.” Wait, what? That’s kind of a mindf**k. A Whopper at McDonald’s? That’s the exact opposite of what most direct marketing campaigns aim to achieve (you are asking people to go to your competitor before coming to you!). That’s turning brand experience upside down. And that’s showing how technology plus creativity can open new doors for brands and businesses. And while it is admittedly a bit crazy, that tends to be an ingredient in all our best ideas.

The objective of this article is to share a bit of our journey making Whopper Detour happen. By doing so, we aim to showcase the power of teamwork and creativity to drive brand and business results.

THE EXTRA MILE

It was beginning of September, back in 2017. FCB NY and Waze (their partner) reached out to us to share an idea. The starting point/insight revolved around the fact that Burger King has significantly fewer restaurant locations than McDonald’s. And since, in the U.S., most of the revenue comes from drive-thru, it’s fair to say that, quite often, BK fans have to drive longer distances to get their flame-grilled Whopper sandwiches. So, the idea was to reward these folks who are going “the extra mile” to enjoy Burger King, literally earning a discount for passing McDonald’s on their way.

No alt text provided for this image
Image 1. A simple demonstration of how the idea could work.

The presentation was pretty complete, with an overview on how to expand on the idea at different touch points, ranging from social media to out-of-home. The idea was presented as an idea that would trigger headlines and conversations, both highly desirable outcomes in all of our successful Burger King campaigns.

No alt text provided for this image
Image 2. Examples of social media amplification, out-of-home and potential headlines.

At the time, we thought there was something really interesting around the idea. We never played with geo-location before and a partnership with Waze sounded like a cool thing to do. Also, despite the fact that drive-thru is indeed our most important channel, we haven’t really done any drive-thru ideas in the recent past.

With that said, when comparing the “voltage” of the idea with other ideas in our pipeline, we felt that there were other things that had the potential to drive stronger talkability and PR. So, we decided to provide feedback, which was pretty much like: “There is something here that we like. Let’s keep working on it.”

“LET’S KEEP WORKING ON IT”

I think that if I were a creative working at an agency, “let’s keep working on it” would be one of the phrases that would scare me the most. What does that mean? Does the client really like it? Or are they just killing us softly? I think that “let’s keep working on it” probably means the end. Well, not in this case.

One thing we’ve learned in the work we do at Burger King is that many times we hit the right territory, but the idea is not quite right yet. In fact, I can think of many territories that took us more than a year to connect to the right idea. And in some cases, even more than that (or never at all). We don’t have an issue shooting an idea dead if we don’t think it has legs. So, when we say “let’s keep working on it,” we mean it. But neither FCB NY nor Waze had worked with us before. And I am sure that there was uncertainty about a potential positive outcome coming out of this.

Believe it or not, FCB NY continued to work on it. The talented team lead by Ari Halper and Gabriel Schimitt kept thinking, playing and polishing the idea. I guess they believed in it so much that they glanced over the uncertainty and kept pushing. So, around mid-November (2-3 months after the first presentation), we got an email from Gabriel saying that “they changed something on the idea and now it was waaaaaaaay better” (that’s how Gabriel speaks when he believes in something). I had a meeting in NY during that week, so I decided to stop by at FCB NY and take a look at that “waaaaaaaay better” version of the idea.

So, the new version of the idea was called “The Secret Whopper.” The insight of the idea was pretty much the same. The first page of the presentation said:

“Burger King has significantly fewer stores than McDonald’s, so we’re not always the closest option. How do we turn fewer stores into an opportunity and reward drivers willing to go the extra mile for a better burger? By turning our competitor’s stores into ours.”

That was the genesis of “The Secret Whopper: A special Whopper available only at McDonald’s.” Wait. What? Yes, that’s what they proposed. And we loved it.

FCB NY also suggested a simple flow for the idea using our BK Mobile App.

No alt text provided for this image
Image 3. BK mobile app flow for “The Secret Whopper” idea.

The agency also presented a series of additional assets to help bring the idea to life.

No alt text provided for this image
Image 4. Example of a potential billboard execution for “The Secret Whopper” idea.

The idea clearly evolved a lot. And the agency managed to tap into something that was very important for the brand: The mobile app. Remember that originally this was an idea that would happen mostly on the Waze platform.

At Burger King, we are investing a lot behind technology to improve guest services. And the mobile app is a key pillar in our strategy. If you think about fast-food restaurants, most of them have tended to leverage the same technology, and layout, for decades. The drive-thru, for instance, is kind of the same as it has always been (always a bit of a struggle to get that order taken the right way). For years the category failed to evolve much with technology (especially the burger chains). But recently, we have seen an acceleration behind initiatives around self-ordering kiosks, mobile apps, etc. The importance of technology among all fast-food players increased in the recent past and that’s no different at BK.

Back in November 2017, our Burger King app was basically a coupon app. Oh, we also had a store locator (d’oh!). But we had ambitious plans. We were working to develop mobile order and payment. That was a big deal for Burger King. It is really hard to code everything and make sure the app is integrated with our different point-of-sales systems (believe me, that’s a nightmare!). We wanted the app to work with geo-location, which would allow for small variations in price and menu for different restaurants, among others. A really big deal for Burger King. Yes. For Burger King. ’Cause mobile order and payment is obviously not new. Even the guy who sells coffee next to my building in Miami has it. Kind of everyone had it. So, this was a big deal for us. Not such a big deal for the industry. That’s why the challenge was to come up with a big, creative idea to make people care/share and get earned media at the relaunch.

So, here was FCB NY, bringing an amazing idea to relaunch our mobile order and payment capabilities. We had only one piece of feedback: We didn’t think it should be a “Secret Whopper.” Instead, we recommended it be the regular Whopper. Why? Because our regular Whopper is our most iconic product and to sell that at McDonald’s would be the biggest WTF moment. No need for a special build.

We also thought that the headline “You will be able to order a Whopper for 1 penny at McDonald’s” would be a bigger mindf*ck and, thus, potentially get more earned media and talkability than if we were saying “Secret Whopper.” And that’s when the name of the idea changed to become “Whopper Detour.”

MAKING IT HAPPEN

I still remember when FCB NY sent us a “happy birthday, Whopper Detour” via email in September 2018. Yes, it took us a year to develop the idea. As I mentioned earlier, we had to recode our mobile app with order/payment, plus geofencing on a massive scale, and then ensure it all worked flawlessly in just one year. Most people would have given up. We didn’t. We kept saying to ourselves: “If it were easy, someone else would have done it already. It’s a good thing this is freaking hard.”

Close to launch, the team developed a really cool film where our actors went to real McDonald’s restaurants in NY and tried explain to McDonald’s crew members at the drive-thru that they were there to get a Whopper for 1 cent.

No alt text provided for this image
Image 5. Image presented as part of Jonathan Klein’s visual treatment.

The film was shot by the very talented Jonathan Klein. We fell in love with his treatment. He simply got the tone of the brand and understood all the nuances.

“It’s important to stress that we are not making fun of the McDonald’s employees at all. Our actors asking about their Whopper orders from the BK App are delusional. Delusional people are funny. Delusional people ordering a Whopper at McDonald’s, compounded by the confusion of the McDonald’s employees, are hysterical.”

Our legal team was an intrinsic part of the development of this idea. In fact, that’s always the case. And we found a way to film this without necessarily asking for permission from our main competitor. The film had to be developed in NY for legal reasons; we would need to blur the faces of McDonald’s crew members and alter their voices a bit so they were not recognizable. On top of using the hidden cameras in the cars, we also filmed wide shots with lenses that allowed us to capture footage from a distance. As in any production that tries to capture reality, it started out messy and then got better and better. That’s normal. And we were patient. In the end, we ended up with an amazing (and very funny) film.

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Image 6. Our brave crew shooting in NY.

On top of the film we created for PR and social media purposes, we ran a series of mobile out-of-home units with the objective of providing photo opportunities for bystanders. The UGC pictures quickly spread online.

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Image 7. Our mobile out-of-home units driving around the U.S.

Another one of our favorite pieces was the print execution “Billions Swerved.” We all found it too funny not to deploy it. So… we had to make it happen. This is the type of execution that, despite leveraging traditional media, ends up getting a boatload of traction in social.

No alt text provided for this image
Image 8. The print ad we ran to help trigger earned media and talkability.

On top of FCB NY (who helped us with the campaign and UX), we had a pretty complete tech stack to launch Whopper Detour:

Tillster: Worked with our tech team coding the BK app (incl. mobile order and payment).

mParticle: CDP used to orchestrate data between the BK app and other CRM partners.

Radar: Geofencing used for unlocking, allowing us to tag all McD’s in the USA.

Braze: CRM vendor used to send push, e-mail and in-app messages.

Branch: Linking platform used to make it easier to get to BK App.

Amplitude: Analytics tool used to calculate redemptions, measure behavior and target mgs.

THE RESULTS

The world ended up talking about this campaign. We reached 3.5 billion impressions (billion with a “B”) with an equivalent USD $40 million in earned media (Source: Cision and ABMC). All without a significant media investment. We only did some guerrilla marketing (out-of-home), a handful of print ads and invested a tiny bit in digital (to push the film). We didn’t have TV, radio, social media influencers or others. The investment was really minimal because we knew the idea would take off by itself.

Case in point: To kick things off, FCB wrote a single tweet, “brb going to McDonald’s” — which came out about an hour before the campaign went live. That tweet alone racked up 65k likes in a matter of hours and led to an 818% increase in Twitter mentions.

We got more than 1.5 million people to download the BK App in the U.S. during the promotion (a 37.5% increase in only nine days), and more than a half-million redemptions of our promo (more than 40x redemptions versus our previous historical record for a digital coupon promo). And it continues to be the gift that keeps on giving, because in the months that followed the promotion, we are now up by 4.5 million downloads. All figures are sourced from Internal BK Data.

This direct, e-commerce, PR, integrated campaign propelled our BK App to become the #1 app in the Apple Store and Google Play Store (starting from #686 in the Apple Store and #464 on Google Play – Source: App Annie; beating out the likes of Facebook, Twitter, Instagram and YouTube). The BK App remained #1 in Food & Drink (our category) for more than 10 days on both platforms.

This idea was indeed a game changer for Burger King. Despite the fact that the Whopper sandwiches were going for only 1 penny, the total sales value sold through the mobile app increased by 3x during the promotion. And even after the promotion, we continued to sell through our mobile app 2x what we used to sell before the promotion. Whopper Detour users alone will spend around $15 million more per year on the BK mobile app. Yes, Whopper Detour put our mobile app on the map, made people engage with it, and now they continue to use it. Source: BK Internal Data.

Some skeptical people tend to challenge some of these sales results, arguing that we were selling Whopper sandwiches for a penny. But I am not talking about units sold. I am talking about total sales value. Even though we sold some Whopper sandwiches for 1 cent, the engagement was so high that people ended up buying a lot more. That’s why the business results were so strong.

The reality is that we tried giving away products to people who used our mobile app before. So have Wendy’s, McDonald’s, Chick-fil-A and others. That’s the obvious thing to do when you want people to download your app. But have you ever heard about any of those promotions? No, right? You know why? ’Cause no one cares. To make people care you need a BIG IDEA. An idea that plays with people’s imagination, an idea that is fun and connects people to the brand. Nothing was as powerful as Whopper Detour. And that is the true value of a creative idea.

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Image 9. Download the app and get free food (Wendy’s, McD, Chick-fil-A).

Think about that. We asked people to download the BK app, add their credit card info, enable geo-location, drive to a McDonald’s, order from there and drive back to a Burger King to pick up the order. And they did it. It’s the opposite of what any direct marketing campaign has ever done. It’s experiential upside down. It’s a promo that, in theory, has all the ingredients not to work. But it did.

Perhaps most important, this activation drove people to our restaurants. By inviting people to drive to our main competitor to get a crazy discount, we triggered the highest weekly traffic increase (traffic = number of people coming to our restaurants) since mid-2015 (Source: Internal BK Data). Can you believe that? We asked people to go to McDonald’s and we triggered the highest increase in visits to BK in the past 4.5 years (!!!). And there was no cannibalization of the Whopper in the restaurant, which shows that the people who came were actually new or lapsed customers. And they ended up buying more than just the Whopper for 1 penny.

The ROI for the campaign was 37:1. And we had people seeing Burger King as a modern, savvy, interesting and fun brand.

5 LEARNINGS FROM OUR JOURNEY

Let the idea grow: Whopper Detour was not born as Whopper Detour. Not even the name. The idea was different. But the DNA of Whopper Detour was there. Somewhere. The ability to spot that and nurture the idea was critical for this case. Actually, in most successful cases we’ve developed, that seems to happen. “When a lion is born, it’s very easy to kill it” — Kash Sree used to always say that to me. You need to trust uncertainty and invest in the idea to make it better and better. It takes time. It takes effort. And it takes guts.

Big ideas matter: AI, AR, programmatic, machine learning, etc are all empty buzzwords if you don’t have a big idea. A big idea will eat big budgets, celebrity endorsements and, sometimes, even logic for breakfast. Without big ideas, our industry is boring. Actually, without big ideas, life is kind of boring. So, learn how to spot them and invest to make them happen. Don’t compromise.

The power of fun: This is an idea that had all the ingredients not to work. We asked a lot from the user. Credit card, location, space in their phones, a drive. And we gave a Whopper in return (not even, since they paid 1 cent). But people loved it. And 1.5 million people went for it. Why? Why the hell did that happen? Well, ’cause it was fun. It was fun to do it. It was fun to share it. It was fun to talk about it. Never underestimate the power of fun. It can bend logic.

If it were easy, someone else would have done it: Yes, we had to geofence more than 20,000 restaurants (all BKs plus McD’s in the U.S.). Yes, the app had to work flawlessly (or as close to that as possible). It was a technical nightmare to make everything happen. But we never thought about giving up. It took a year to make this happen. No shortcuts. If it were easy, someone else would have done it already. So BIG THANK-YOU to FCB NY, who believed in us as a client. Big thank-you to our tech team, who worked incredibly hard to make this happen. And big thank-you to all of our other agency partners (especially the tech ones) who helped us make this huge.

Remember the long-term benefits of an idea: We now have the location and credit card info of most of our app users. We can do a much better job in terms of CRM. We can do things such as send push notifications when a BK app user is getting close to a McD’s (’cause we did all the heavy lifting as part of Whopper Detour). In fact, our assumption is that the 1.5M downloads of Whopper Detour alone will trigger around USD $15M in revenue during the first 12 months of the project. So, despite the fact that the promo lasted for just nine days, the long-term impact of the project is truly significant.

Whopper Detour is one of my favorite Burger King ideas ever. It took us about a year to make. The idea came to us from FCB New York, and evolved a lot over time (a characteristic we see in all of our best campaigns). It involved a large team to pull it off, including our technology team and key tech partners. We basically had to recode our newly updated mobile app with mobile order and payment to now also work well and consistently with geofencing. In fact, to make this idea work we had to geofence all of our restaurants in the United States (more than 7,000) and all of the McDonald’s restaurants (more than 14,000). Plus, make it reliable! Can you imagine the amount of time and pressure to make this happen? But it paid off. Big-time.

We are investing a lot to improve our guest services at Burger King and technology has a key role in this. After all, mobile has grown to be a vital player in the QSR space, poised to be a $38 billion industry by next year (Source: QSR Magazine, Sep 2017). But, mobile order and payment isn’t new to people, nor is geofencing. So, to get people to actually care about our BK app is a testament to the beauty of this campaign, which started with a very simple PR headline: “You will be able to order a Whopper for 1 penny at McDonald’s.” Wait, what? That’s kind of a mindf**k. A Whopper at McDonald’s? That’s the exact opposite of what most direct marketing campaigns aim to achieve (you are asking people to go to your competitor before coming to you!). That’s turning brand experience upside down. And that’s showing how technology plus creativity can open new doors for brands and businesses. And while it is admittedly a bit crazy, that tends to be an ingredient in all our best ideas.

The objective of this article is to share a bit of our journey making Whopper Detour happen. By doing so, we aim to showcase the power of teamwork and creativity to drive brand and business results.

THE EXTRA MILE

It was beginning of September, back in 2017. FCB NY and Waze (their partner) reached out to us to share an idea. The starting point/insight revolved around the fact that Burger King has significantly fewer restaurant locations than McDonald’s. And since, in the U.S., most of the revenue comes from drive-thru, it’s fair to say that, quite often, BK fans have to drive longer distances to get their flame-grilled Whopper sandwiches. So, the idea was to reward these folks who are going “the extra mile” to enjoy Burger King, literally earning a discount for passing McDonald’s on their way.

No alt text provided for this image

Image 1. A simple demonstration of how the idea could work.

The presentation was pretty complete, with an overview on how to expand on the idea at different touch points, ranging from social media to out-of-home. The idea was presented as an idea that would trigger headlines and conversations, both highly desirable outcomes in all of our successful Burger King campaigns.

No alt text provided for this image

Image 2. Examples of social media amplification, out-of-home and potential headlines.

At the time, we thought there was something really interesting around the idea. We never played with geo-location before and a partnership with Waze sounded like a cool thing to do. Also, despite the fact that drive-thru is indeed our most important channel, we haven’t really done any drive-thru ideas in the recent past.

With that said, when comparing the “voltage” of the idea with other ideas in our pipeline, we felt that there were other things that had the potential to drive stronger talkability and PR. So, we decided to provide feedback, which was pretty much like: “There is something here that we like. Let’s keep working on it.”

“LET’S KEEP WORKING ON IT”

I think that if I were a creative working at an agency, “let’s keep working on it” would be one of the phrases that would scare me the most. What does that mean? Does the client really like it? Or are they just killing us softly? I think that “let’s keep working on it” probably means the end. Well, not in this case.

One thing we’ve learned in the work we do at Burger King is that many times we hit the right territory, but the idea is not quite right yet. In fact, I can think of many territories that took us more than a year to connect to the right idea. And in some cases, even more than that (or never at all). We don’t have an issue shooting an idea dead if we don’t think it has legs. So, when we say “let’s keep working on it,” we mean it. But neither FCB NY nor Waze had worked with us before. And I am sure that there was uncertainty about a potential positive outcome coming out of this.

Believe it or not, FCB NY continued to work on it. The talented team lead by Ari Halper and Gabriel Schimitt kept thinking, playing and polishing the idea. I guess they believed in it so much that they glanced over the uncertainty and kept pushing. So, around mid-November (2-3 months after the first presentation), we got an email from Gabriel saying that “they changed something on the idea and now it was waaaaaaaay better” (that’s how Gabriel speaks when he believes in something). I had a meeting in NY during that week, so I decided to stop by at FCB NY and take a look at that “waaaaaaaay better” version of the idea.

So, the new version of the idea was called “The Secret Whopper.” The insight of the idea was pretty much the same. The first page of the presentation said:

“Burger King has significantly fewer stores than McDonald’s, so we’re not always the closest option. How do we turn fewer stores into an opportunity and reward drivers willing to go the extra mile for a better burger? By turning our competitor’s stores into ours.”

That was the genesis of “The Secret Whopper: A special Whopper available only at McDonald’s.” Wait. What? Yes, that’s what they proposed. And we loved it.

FCB NY also suggested a simple flow for the idea using our BK Mobile App.

No alt text provided for this image

Image 3. BK mobile app flow for “The Secret Whopper” idea.

The agency also presented a series of additional assets to help bring the idea to life.

No alt text provided for this image

Image 4. Example of a potential billboard execution for “The Secret Whopper” idea.

The idea clearly evolved a lot. And the agency managed to tap into something that was very important for the brand: The mobile app. Remember that originally this was an idea that would happen mostly on the Waze platform.

At Burger King, we are investing a lot behind technology to improve guest services. And the mobile app is a key pillar in our strategy. If you think about fast-food restaurants, most of them have tended to leverage the same technology, and layout, for decades. The drive-thru, for instance, is kind of the same as it has always been (always a bit of a struggle to get that order taken the right way). For years the category failed to evolve much with technology (especially the burger chains). But recently, we have seen an acceleration behind initiatives around self-ordering kiosks, mobile apps, etc. The importance of technology among all fast-food players increased in the recent past and that’s no different at BK.

Back in November 2017, our Burger King app was basically a coupon app. Oh, we also had a store locator (d’oh!). But we had ambitious plans. We were working to develop mobile order and payment. That was a big deal for Burger King. It is really hard to code everything and make sure the app is integrated with our different point-of-sales systems (believe me, that’s a nightmare!). We wanted the app to work with geo-location, which would allow for small variations in price and menu for different restaurants, among others. A really big deal for Burger King. Yes. For Burger King. ’Cause mobile order and payment is obviously not new. Even the guy who sells coffee next to my building in Miami has it. Kind of everyone had it. So, this was a big deal for us. Not such a big deal for the industry. That’s why the challenge was to come up with a big, creative idea to make people care/share and get earned media at the relaunch.

So, here was FCB NY, bringing an amazing idea to relaunch our mobile order and payment capabilities. We had only one piece of feedback: We didn’t think it should be a “Secret Whopper.” Instead, we recommended it be the regular Whopper. Why? Because our regular Whopper is our most iconic product and to sell that at McDonald’s would be the biggest WTF moment. No need for a special build.

We also thought that the headline “You will be able to order a Whopper for 1 penny at McDonald’s” would be a bigger mindf*ck and, thus, potentially get more earned media and talkability than if we were saying “Secret Whopper.” And that’s when the name of the idea changed to become “Whopper Detour.”

MAKING IT HAPPEN

I still remember when FCB NY sent us a “happy birthday, Whopper Detour” via email in September 2018. Yes, it took us a year to develop the idea. As I mentioned earlier, we had to recode our mobile app with order/payment, plus geofencing on a massive scale, and then ensure it all worked flawlessly in just one year. Most people would have given up. We didn’t. We kept saying to ourselves: “If it were easy, someone else would have done it already. It’s a good thing this is freaking hard.”

Close to launch, the team developed a really cool film where our actors went to real McDonald’s restaurants in NY and tried explain to McDonald’s crew members at the drive-thru that they were there to get a Whopper for 1 cent.

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Image 5. Image presented as part of Jonathan Klein’s visual treatment.

The film was shot by the very talented Jonathan Klein. We fell in love with his treatment. He simply got the tone of the brand and understood all the nuances.

“It’s important to stress that we are not making fun of the McDonald’s employees at all. Our actors asking about their Whopper orders from the BK App are delusional. Delusional people are funny. Delusional people ordering a Whopper at McDonald’s, compounded by the confusion of the McDonald’s employees, are hysterical.”

Our legal team was an intrinsic part of the development of this idea. In fact, that’s always the case. And we found a way to film this without necessarily asking for permission from our main competitor. The film had to be developed in NY for legal reasons; we would need to blur the faces of McDonald’s crew members and alter their voices a bit so they were not recognizable. On top of using the hidden cameras in the cars, we also filmed wide shots with lenses that allowed us to capture footage from a distance. As in any production that tries to capture reality, it started out messy and then got better and better. That’s normal. And we were patient. In the end, we ended up with an amazing (and very funny) film.

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Image 6. Our brave crew shooting in NY.

On top of the film we created for PR and social media purposes, we ran a series of mobile out-of-home units with the objective of providing photo opportunities for bystanders. The UGC pictures quickly spread online.

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Image 7. Our mobile out-of-home units driving around the U.S.

Another one of our favorite pieces was the print execution “Billions Swerved.” We all found it too funny not to deploy it. So… we had to make it happen. This is the type of execution that, despite leveraging traditional media, ends up getting a boatload of traction in social.

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Image 8. The print ad we ran to help trigger earned media and talkability.

On top of FCB NY (who helped us with the campaign and UX), we had a pretty complete tech stack to launch Whopper Detour:

Tillster: Worked with our tech team coding the BK app (incl. mobile order and payment).

mParticle: CDP used to orchestrate data between the BK app and other CRM partners.

Radar: Geofencing used for unlocking, allowing us to tag all McD’s in the USA.

Braze: CRM vendor used to send push, e-mail and in-app messages.

Branch: Linking platform used to make it easier to get to BK App.

Amplitude: Analytics tool used to calculate redemptions, measure behavior and target mgs.

THE RESULTS

The world ended up talking about this campaign. We reached 3.5 billion impressions (billion with a “B”) with an equivalent USD $40 million in earned media (Source: Cision and ABMC). All without a significant media investment. We only did some guerrilla marketing (out-of-home), a handful of print ads and invested a tiny bit in digital (to push the film). We didn’t have TV, radio, social media influencers or others. The investment was really minimal because we knew the idea would take off by itself.

Case in point: To kick things off, FCB wrote a single tweet, “brb going to McDonald’s” — which came out about an hour before the campaign went live. That tweet alone racked up 65k likes in a matter of hours and led to an 818% increase in Twitter mentions.

We got more than 1.5 million people to download the BK App in the U.S. during the promotion (a 37.5% increase in only nine days), and more than a half-million redemptions of our promo (more than 40x redemptions versus our previous historical record for a digital coupon promo). And it continues to be the gift that keeps on giving, because in the months that followed the promotion, we are now up by 4.5 million downloads. All figures are sourced from Internal BK Data.

This direct, e-commerce, PR, integrated campaign propelled our BK App to become the #1 app in the Apple Store and Google Play Store (starting from #686 in the Apple Store and #464 on Google Play – Source: App Annie; beating out the likes of Facebook, Twitter, Instagram and YouTube). The BK App remained #1 in Food & Drink (our category) for more than 10 days on both platforms.

This idea was indeed a game changer for Burger King. Despite the fact that the Whopper sandwiches were going for only 1 penny, the total sales value sold through the mobile app increased by 3x during the promotion. And even after the promotion, we continued to sell through our mobile app 2x what we used to sell before the promotion. Whopper Detour users alone will spend around $15 million more per year on the BK mobile app. Yes, Whopper Detour put our mobile app on the map, made people engage with it, and now they continue to use it. Source: BK Internal Data.

Some skeptical people tend to challenge some of these sales results, arguing that we were selling Whopper sandwiches for a penny. But I am not talking about units sold. I am talking about total sales value. Even though we sold some Whopper sandwiches for 1 cent, the engagement was so high that people ended up buying a lot more. That’s why the business results were so strong.

The reality is that we tried giving away products to people who used our mobile app before. So have Wendy’s, McDonald’s, Chick-fil-A and others. That’s the obvious thing to do when you want people to download your app. But have you ever heard about any of those promotions? No, right? You know why? ’Cause no one cares. To make people care you need a BIG IDEA. An idea that plays with people’s imagination, an idea that is fun and connects people to the brand. Nothing was as powerful as Whopper Detour. And that is the true value of a creative idea.

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Image 9. Download the app and get free food (Wendy’s, McD, Chick-fil-A).

Think about that. We asked people to download the BK app, add their credit card info, enable geo-location, drive to a McDonald’s, order from there and drive back to a Burger King to pick up the order. And they did it. It’s the opposite of what any direct marketing campaign has ever done. It’s experiential upside down. It’s a promo that, in theory, has all the ingredients not to work. But it did.

Perhaps most important, this activation drove people to our restaurants. By inviting people to drive to our main competitor to get a crazy discount, we triggered the highest weekly traffic increase (traffic = number of people coming to our restaurants) since mid-2015 (Source: Internal BK Data). Can you believe that? We asked people to go to McDonald’s and we triggered the highest increase in visits to BK in the past 4.5 years (!!!). And there was no cannibalization of the Whopper in the restaurant, which shows that the people who came were actually new or lapsed customers. And they ended up buying more than just the Whopper for 1 penny.

The ROI for the campaign was 37:1. And we had people seeing Burger King as a modern, savvy, interesting and fun brand.

5 LEARNINGS FROM OUR JOURNEY

Let the idea grow: Whopper Detour was not born as Whopper Detour. Not even the name. The idea was different. But the DNA of Whopper Detour was there. Somewhere. The ability to spot that and nurture the idea was critical for this case. Actually, in most successful cases we’ve developed, that seems to happen. “When a lion is born, it’s very easy to kill it” — Kash Sree used to always say that to me. You need to trust uncertainty and invest in the idea to make it better and better. It takes time. It takes effort. And it takes guts.

Big ideas matter: AI, AR, programmatic, machine learning, etc are all empty buzzwords if you don’t have a big idea. A big idea will eat big budgets, celebrity endorsements and, sometimes, even logic for breakfast. Without big ideas, our industry is boring. Actually, without big ideas, life is kind of boring. So, learn how to spot them and invest to make them happen. Don’t compromise.

The power of fun: This is an idea that had all the ingredients not to work. We asked a lot from the user. Credit card, location, space in their phones, a drive. And we gave a Whopper in return (not even, since they paid 1 cent). But people loved it. And 1.5 million people went for it. Why? Why the hell did that happen? Well, ’cause it was fun. It was fun to do it. It was fun to share it. It was fun to talk about it. Never underestimate the power of fun. It can bend logic.

If it were easy, someone else would have done it: Yes, we had to geofence more than 20,000 restaurants (all BKs plus McD’s in the U.S.). Yes, the app had to work flawlessly (or as close to that as possible). It was a technical nightmare to make everything happen. But we never thought about giving up. It took a year to make this happen. No shortcuts. If it were easy, someone else would have done it already. So BIG THANK-YOU to FCB NY, who believed in us as a client. Big thank-you to our tech team, who worked incredibly hard to make this happen. And big thank-you to all of our other agency partners (especially the tech ones) who helped us make this huge.

Remember the long-term benefits of an idea: We now have the location and credit card info of most of our app users. We can do a much better job in terms of CRM. We can do things such as send push notifications when a BK app user is getting close to a McD’s (’cause we did all the heavy lifting as part of Whopper Detour). In fact, our assumption is that the 1.5M downloads of Whopper Detour alone will trigger around USD $15M in revenue during the first 12 months of the project. So, despite the fact that the promo lasted for just nine days, the long-term impact of the project is truly significant.

 

Original Sourcehttps://www.linkedin.com/pulse/where-detour-really-going-fernando-machado/

 

Jaime Monteymayor, CEO, DosDos Technologies & Former Global CIO at Pepsico

The Millennium Alliance is thrilled to announce Jaime Monteymayor, CEO at DosDos Technologies & Former Global CIO at Pepsico as the Keynote Speaker at the Digital Enterprise Transformation West assembly taking place from August 22-23 at the Green Valley Ranch in Las Vegas.

About Jaime Montemayor: 

Jaime Montemayor is the Founder and CEO of DosDos Technologies, an emerging consulting and services company focused on accelerating Digital Transformation (DX) for companies with high legacy debt.

Prior to this appointment, Montemayor had a 21 year progressive Global CIO career at PepsiCo from a small International Business Unit to SVP and CIO of PepsiCo Americas Foods, their largest ($22.7 Billion) and most profitable Sector. During his time at PepsiCo, Montemayor lead major Information Technology and Digital enabled transformation efforts globally while championing diversity and inclusion serving as executive sponsor of PepsiCo’s Adelante and Women of Color Alliance employee resource groups. Within PepsiCo, Montemayor served also as SVP and CIO for PepsiCo’s Digital Innovation, Data and Analytics leading a major effort to drive emerging digital capabilities globally. He also led PepsiCo’s North America Transformation, responsible for the delivery of common SAP and Data solutions for Quaker, Tropicana and Pepsi-Cola North America. Before those appointments, Montemayor served as CIO for PepsiCo International and Frito-Lay International. Montemayor joined PepsiCo in 1995 as CIO for PepsiCo’s Gamesa business, Mexico’s largest cookie and biscuit company.

Before joining PepsiCo, Montemayor was a principal with Booz Allen & Hamilton and a technical director
with Oracle Corp. in Europe and Latin America. Montemayor received a B.S. in Computer Systems degree from Tecnologico y de Estudios Superiores de Monterrey in Mexico and his Master’s degree in Computer Science from Stanford University. Montemayor also serves on the Board of Trustees at Northwestern Mutual.

Jaime Montemayor is married to Maria and has three wonderful children Jaime, Angela and Alejandro.

About Digital Transformation West

The Millennium Alliance is thrilled that you’re interested in Digital Enterprise Transformation West Coast in August 2019.

As more and more businesses look to digital technology and strategies to transform their business, CIOs know that data and information technology have never been more important. Understanding the convergence of mobile, social, and cloud is the first critical step for organizations looking to create opportunities and stay ahead of the competition.

Join us in Las Vegas for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions will offer industry-specific topics and trends to ensure your company maintains its competitive advantage.

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The Health Care System’s Dramatic Modernization Moment

This blog post was Written by Julie Barnes of Maverick Health Policy

Not so long ago, people had to go into a physical bank to have access to their money or go to a bookstore to buy books, but now these and so many other daily transactions happen through apps on a “smart” phone. The health care system is about to have its own dramatic modernization moment.

As part of its overall value-based care initiatives, HHS is seeking to improve health care quality and lower costs by empowering individuals with easy access to and portability of their electronic health information.

In February, CMS and the Office of the National Coordinator for Health Information Technology issued two proposed rules that will require health plans to give their enrollees free and relatively immediate electronic access to their personal health information.

CMS is proposing to require Medicare Advantage plans, Medicaid and CHIP managed care plans, and QHP issuers in federal exchanges to implement openly published FHIR-based APIs to make claims data and other personal health information available to patients through third-party applications. ONC’s proposed rule applies to providers, its E.H.R. vendors, and health information networks and exchanges, addressing many 21st Century Cures mandates on Health IT certification, interoperability, and information blocking activities.

Both proposed rules create substantial new requirements for health plans, providers and health IT developers and will necessitate organization-wide review and feedback to not only articulate concerns but to begin to develop a compliance plan.

A quick snapshot of the CMS Proposed Rule:

WHAT IS CMS PROPOSING?
For health plans to make a variety of health data accessible to enrollees, including claims, provider directories, lab results, and drug benefit data, and to participate in a Trusted Exchange Network (see definition below).

WHEN ARE COMMENTS DUE?
CMS will accept comments until June 3, 2019.

WHEN WILL THE RULE BE FINALIZED?
There is no set date for final rule publication, but it seems likely that some or all of this proposed rule will be finalized soon after comments are reviewed (~September 2019).

WHAT DO PLANS HAVE TO DO?
(Remember, this only applies to plans that contract with the federal government, like Medicare Advantage, Medicaid managed care and FFE plans, but CMS is encouraging voluntary adoption by the entire health insurance industry)

  1. USE APIs.

Plans need to use an open API (application programming interface) to make specific data accessible to enrollees. An API permits third-party applications to retrieve data with the approval and at the direction of an individual MA enrollee. Under HIPAA, individuals can exercise their right of access to their protected health information and plans are not responsible for determining the worthiness of the third party as a recipient of PHI.

  1. SEND ELECTRONIC DATA TO ENROLLEES.

Health plans must make the following specific data accessible to enrollees:

  • Claims and Encounters: adjudicated claims (approved or denied), encounters with capitated providers, provider remittances, enrollee cost-sharing, and all clinical data including laboratory results managed by the payer. Plans will have one business day upon claim processing or data receipt to make this data accessible to enrollees.
  • Provider Directories: plan networks of contracted providers, including providers’ names, addresses, phone numbers, and specialties. Plans would be required to update the information available no later than 30 calendar days after changes are made or the entity receives the updated information.
  • Pharmacy Directories and Formularies: MA organizations offering Part D plans must also offer the number, mix, and addresses of pharmacies in their network and information about covered outpatient drugs and preferred drug lists.
  1. JOIN A TRUSTED EXCHANGE NETWORK.

Plans must participate in a trusted exchange network, effective beginning January 1, 2020. The point of a trusted exchange network is to allow for broader interoperability beyond one health system or point to point connections among payers, patients, and providers. These networks establish rules of the road for interoperability and allow for scaling interoperability across multiple participants, including several federal agencies, EHR vendors, retail pharmacy chains, large provider associations, and others.

WHEN MUST PLANS COMPLY WITH THESE RULES?

The proposed compliance date is January 1, 2020, but is expected to be extended.

WHO SHOULD REVIEW THESE RULES?

  • Your legal/regulatory/ policy team, particularly privacy and security compliance experts.
  • Your technology and information teams, and anyone else who is familiar with the requirements for FHIR, OAuth, OpenID Connect Core standards, ONC’s certification criteria for APIs, and USCDI standards.
  • Your provider network team, because the quick turnaround on making this data available will require cooperative agreements with providers and other partners.
  • Your business operational teams who oversee claims and encounter data, EOBs, provider directories, and other enrollee data.
  • If you are a MA Part D plan, your pharmacy team or whoever oversees your drug benefit data, pharmacy directories information, and formularies.

A fact sheet on the proposed rule can be found on the CMS website here.

Please contact Julie Barnes at julie.barnes@maverickhealthpolicy.com with comments or questions.

Improving Customer Acquisition, Engagement, and Retention with Personalized Offers

This article was written by Dan Slavin, CEO, CodeBroker. 

dan.slavin@codebroker.com

Marketing automation and sophisticated analytics are making personalization a reality for retail marketers.  Successful marketing personalization requires, what the Harvard Business Review calls, “integrating the three D’s: data discovery, automated decision making, and content distribution.” For personalization to work effectively, each of these need to be tightly synchronized.

The missing link, however, is in the content distribution phase – specifically in the area of “Offer Personalization.”

The reason? A security component is missing from two key areas associated with offers 1. Offer Distribution and 2. Offer Redemption. Marketers can conduct good analysis to match the right offer to the right segment. But without the security to ensure that the offer is used solely by the intended recipient – and only used once – then entire personalization effort can break down because:

Marketers can conduct good analysis to match the right offer to the right segment. But without the security to ensure that the offer is used solely by the intended recipient – and only used once – then entire personalization effort can break down because:

  • Customers can redeem an offer more than once.
  • Individuals can access an offer that was not meant for them – or the offer may even go viral.
  • Marketers can’t track and attribute individual behavior accurately to measure the offer’s true effectiveness.

Distribution and Redemption Security

CodeBroker clients are employing single-use coupons to address the offer distribution and redemption security dilemma, to ensure that:

  • Individual behavior can be tracked end-to-end to enable further personalization.
  • A consumer can only obtain an offer that is meant for her, and receives an offer only once, even if she tries to obtain it multiple times.
  • The consumer can redeem the coupon or offer only one time.
  • The POS system can validate/accept/redeem single-use offers at high speed, in real-time.

CMOs who once could not deploy single-use coupons are now leveraging them, and seeing a 30% to 50% increase in offer redemption across the marketing lifecycle (customer acquisition, engagement, and retention.)

By adding a security component to offer distribution and redemption, marketers can take personalization to a higher level by offering personalized promotions in a secure, risk-free manner, and measuring results more accurately, for a complete personalization workflow.

For more on the topic, here’s a new CMO report that digs deeper into how retailers are using single-use coupons and promo codes to deliver personalized offers securely and at scale.

Interested in learning more? You can meet CodeBroker at our Transformational CMO & Digital Retail Transformation Assembly next week in Atlanta.  

ABOUT DIGITAL RETAIL TRANSFORMATION ASSEMBLY

In the 21st century, retail is an ever-shifting landscape. Staying competitive in the fast-paced world of retail requires executives to keep one eye on the future and closely watch the trends that are shaping the dramatic disruption of the industry. So, what can you look forward to next year? Our regional Digital Retail Transformation West assembly is here to answer just that.

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In The C-Suite, Learning Should Never Stop

When we are young, most of us are taught the basic fundamentals of learning. Tools like the A-B-C’s, how to properly write a sentence, and 2+2=4 are ingrained in our mind’s until these tools become second nature to us.

As professionals, these lessons are a bit (okay, ALOT) more complex, and if you are really dedicated to your craft, no matter what level you are at professionally, the learning does not stop.

Learning Is Listening

We hold the ability to learn new things on an every-day basis in the professional world. Learning does not always involve opening up a book, or even using Google to answer your questions, (even though let’s be honest, that does make things easier). Learning starts with listening to those around you in your environment.

As a c-suite executive, Director or just an overall team leader, learning can involve implementing a new process into a business, and while doing so, discovering what works, what doesn’t and why. Learning involves listening to your employees, hearing what they have to say and letting it absorb in your mental processes, impacting the next time you make a decision that affects your team.

As philosopher Francis Bacon said, “Knowledge is power”, and that statement holds true today for those in the c-suite and beyond.

Evolving Is Key To Staying Ahead

I recently read a report on CIO Dive which originally inspired me to write this article. In the report, it stated that c-level executives are increasingly returning back to higher education in order to learn new tools, stay ahead and most importantly, remain current when it comes to technology that is increasingly developing as years go on.

According to the report, “When a C-suite position opens, it’s common for companies to consider the same circulation of seasoned professionals.” 

Because of the technological disruption happening in most industries, a need for a technical-savvy generation is crucial for the success of an enterprise looking to move forward. As a result, professionals interested in moving up the ladder to the c-suite must be prepared to meet the new standard of business, by continuing their education and learning new tools needed to be successful, especially on the technology front.

“Technology ultimately impacts revenue, the customer market and consumer behaviors. All of this contributes to a change in the overall business model.” CIO Dive reports.

Disruption can happen in a blink of an eye, especially in fields like retail and marketing, and security. As soon as one tech trend is proven to make strides in the industry, most businesses jump on board to evolve their company’s business structure by adopting that tool.

The same goes for major enterprises who make decisions that ultimately change the entire dynamic of the industry.

“Take Amazon’s acquisition of Whole Foods…. All of a sudden grocers were met with a disruption tied to 100 million Amazon Prime members. Whole Foods was no longer disruptive to the grocers in a five mile radius, it was now in consumers’ mobile devices and homes.”CIO Dive reports. 

Technology can be intricate, with many different components involved. It involves different aspects like security, privacy, analytics, and data. Learning from peers, increasing your education and keeping an open mind are all keys to success while staying ahead of the competition, and most importantly, evolving.

We also hold really awesome events that bring esteemed executives together to learn and bounce new ideas off each other, and so much more… Just sayin’. Learn more below!

ABOUT TRANSFORMATIONAL CISO ASSEMBLY

We’re thrilled that you’re interested in Transformational CISO West Coast in August 2019.

With the instances of cyber attacks increasing, businesses of all sizes are working tirelessly to secure their networks, devices, and data. Fortune 500 organizations are especially vulnerable as they have big data pools and thousands of people who need access. CISOs need to plan for worst-case scenarios, stay ahead of the latest IT Security transformation technology, and maintain their company’s information assets, all without losing sight of the corporate culture.

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How To Scale Culture

This post was originally published on LinkedIn by Denise Yohn, Brand expert, Author and Millennium Alliance Advisory Board member. 

According to the Small Business Administration, about one-fifth of business startups fail in their first year and about half succumb to failure within five years.  Only about one third survive ten years or more. Many factors explain the dearth of successful scale-ups: lack of market need, insurmountable challenges in business model and/or economics, inability to secure funding. The list goes on, but one of the most common reason that companies fail to scale is organizational culture.

Even at businesses that manage to hang on, most experience culture challenges as they grow. As companies expand from a tight-knit core group of founders and first employees to 100+ people, the intuitive, implicit culture that fueled early growth often becomes diluted, distorted, and/or dysfunctional. New employees don’t learn cultural norms or challenge them and older ones wax nostalgic and wish things could get back to the way they were. Meanwhile, company leaders take their organizational culture for granted or get too consumed with all the other demands of scaling. And then, in what seems like an instant, company leaders wake up one day to find their small start-up is now comprised of hundreds of employees who are disengaged and unproductive.

It doesn’t have to be this way. Leaders can scale culture successfully – if they make it a priority for themselves and the entire organization. Having worked with a range of organizations and their leaders through their scaling experiences and researched many more for my latest book, FUSION: How Integrating Brand and Culture Powers the World’s Greatest Companies, I’ve discovered that three elements distinguish the culture of successful scale-ups: clarity, design, and practices.

Culture Clarity. When first starting up, an organization’s culture might be understood implicitly – but with growth comes the potential for confusion and misalignment. Leaders should offset these possibilities by ensuring the desired culture is defined explicitly and communicated consistently.

Leaders should clearly articulate the organization’s overarching purpose – why it does what it does, why it exists – so there is a single motivation to drive and unite everyone. When all employees, as well as key stakeholders such as investors, strategic partners, etc., have a common goal, their efforts are more likely to remain focused and aligned.

The organization’s core values — the essential and enduring principles and priorities that prescribe the desired mindset and behavior of everyone who works at the company — should also be articulated clearly. Moreover, core values should be defined explicitly. Explain the desired behaviors or behavioral norms associated with your values so people know what your values look like in action. For example, at Argentinian bank Banco Supervielle, the leaders explained the core value of “simple” in behaviors such as “make decisions as close as possible to the customer.” They also defined those behaviors they would not accept. For “agile,” they spelled out that “ignoring mistakes and not learning from them” is unacceptable.

Culture clarity is also achieved through consistent communication. Leaders must regularly and relentlessly communicate the company’s overarching purpose and core values and why they’re important.  It’s not enough to talk about these foundational elements when they’re first being set or on an annual basis.  They must be regularly woven into presentations, memos, and conversations.  Studies have shown repetition and consistency are critical to comprehension and traction – and convey priority. Talking about culture repeatedly makes its importance clear.

Culture Design.  Of course, it’s not enough only to talk about the desired culture – leaders must also role model it and create an environment that supports and nurtures it. Culture doesn’t simply happen, nor does it only grow organically. Leaders can and should set the conditions to cultivate an organizational culture that influences the way they want their employees to think and act.

The design of an organization shapes its culture. Consider how setting a standard number of minimum or maximum of direct reports into managers sets up employees to work more autonomously or more efficiently. Or how creating a new role that combines two previously disjointed functions encourages collaboration while eliminating a role might reduce bureaucracy.

Process design has a similar impact on culture.  Mandating extensive budget and project approval processes, for example, will prevent a company from cultivating a less risk-averse, more progressive culture. But to encourage a culture of experimentation, leaders could develop a process for rapid prototyping.

Employee experience is another dimension through which culture should be designed. Just as companies now identify customer journeys and try to design a consistent, unique, and valuable experience for customers across all touchpoints and transactions, organizations must do the same for employees. Leaders should deliberately design experiences for employees – starting with recruiting and onboarding through to the end of employment — that interpret and reinforce the desired culture.

Airbnb was able to scale so quickly and successfully in part because its leaders imbued their mission — to create a world where anyone can belong anywhere — into every step of its employee experience including extending hospitality to potential recruits (making them feel like they could belong at the company), designing meeting rooms to match host properties around the world (encouraging employees to feel they belong to a global community), and using “landing stations” where employees store their stuff so they can work wherever in the building they want (helping them feel comfortable and they belong anywhere in the office.)

When starting up, leaders usually don’t have to put a lot of thought into culture design – people just figure out how to work together and do what needs to be done.  As companies grow, some leaders will design their organizations and develop their processes with headcounts, budgets, and productivity targets in mind. But they should also consider how every aspect of the company impacts culture and use their desired culture as the filter through which they make strategic, organizational, and employee experience decisions.

Culture Practices. As the adage about good intentions suggests, merely intending to make culture a priority doesn’t ensure it will happen. Leaders must engage specific practices to build culture into the way their business is run.  Effective culture practices include:

–       Values-centered recruiting – In addition to skills, experience, and job fit, potential employees should be screened for values fit – meaning, their personal values should align with the company’s core values.

Companies should develop a standard list of questions to assess values fit, such as “Tell me about a time that you demonstrated [value] at work;” and “In your own words, what does [value] mean and why is it important;” and create exercises that allow potential employees to demonstrate their personal values, e.g., role-playing a difficult situation, decision scenarios, etc. Interviewers should consistently administer the questions and exercises and apply consistent criteria for evaluating the outcomes.

An additional approach to ensure values fit is to develop two lists, “must haves” and “can’t haves,” identifying the attitudes and behaviors that indicate alignment – or lack thereof — with the company’s core values and using them to evaluate every candidate.

–       Founder vows – Scott Tilton and RJ Kraus, co-founders of Hookit, a sponsorship analytics and valuation platform, created a list of “vows” right before closing an investment round.

The list documented the promises they believed were important to keep so the two of them would stay aligned and keep the company, its culture, and themselves on track as they secured additional funding to fuel expansion. It included what they would do (“admit mistakes and unknowns immediately”) and what they would not do (“hinder company growth for any reason [personally or professionally]”). Each founder made promises to the other that reflected their individual challenges — one founder vowed to “stay out of the weeds, not try to do everything himself;” the other vowed to “slow down, be more thoughtful, collaborative and patient.” The list ended with a commitment to an action plan if any of the vows are broken.

This provides an excellent example of a disciplined and deliberate practice at the leadership level that is required to achieve culture.

–       Culture audit and assessment – Robust measurement is critical for understanding business performance on key dimensions and culture is no exception. As such, on an annual basis, or more frequently during high-growth periods, companies should undertake an audit and assessment to understand the existing state of the organizational culture.

The audit should be conducted like an anthropological study, walking around the offices and taking note of what is seen and heard and observing how people interact with each other and their environment. The audit should review materials from all areas of the business – onboarding documents for new employees, signs posted around the office, announcements made, emails or digital communications between employees, etc. Rituals, artifacts, policies, and procedures should be noted.

A culture audit is best conducted by a cross-functional team working together with outsiders who can offer fresh, objective perspectives. Auditors should discuss their findings with employees to get their take on the culture.

Using insights and conclusions from the audit, company leaders should assess if the health and nature of the culture is as desired, and if not, identify changes that should be made to close the gaps.

Many forces that challenge scaling, such as competitive developments and market conditions, are out of a company’s control. Culture, however, is almost completely under the purview of company leaders. By implementing culture clarity, design, and practices, leaders can scale culture — and successfully go from start-up to scale-up…and beyond.

Mobile First, Mobile Matters!

Back in the day, mobile was solely just a means of communication. Now, they are a part of everyday life. The need for smartphones and smart applications has become a central part of every person’s life, as mobile phones are now used for networking, gaming, getting directions, tracking health, shopping, and more.

The cumulative progress of mobile technology, the availability and access to high-speed internet and the remarkable communicative interface in these devices results into a whole level of new and innovative experience mobile computing.

“The reliance and heavy usage of mobile phones creates a huge opportunity for brands to create and curate mobile-first customer experiences,” said Bridgette Darling, product marketing manager at Adobe. “If your business sells a product, a mobile presence that the customer can engage with is key. So is the need to do it right, stand out, and make them remember the experience.”

Now these mobile apps have become an integral part of our lives and we rely on them in more than one way.

Mobile Apps

Most, if not all, mobile devices are being used for personal activities via mobile apps, email, web browsers, texts, and calls, and much more. Mobile can no longer simply be defined solely as a channel, but an extension of the consumer as more consumers depend on their phones to get things done.

With the use of mobile apps, brands can figure out how to enhance their customer’s experiences all while creating an app that is compelling, useful, and looks to beat out their competitors. That being said, now that people have made it clear that mobile is the preferred method for shopping, business, daily-related activities, it is vital for brands to become hyper-aware of the importance mobile has in on their future success.

The Opportunity for Mobile Devices and Mobile Moments

Are micro-moments the new frontier in mobile? All signs point to YES. Customers, especially when using their mobile devices, do not want drawn-out processes that require a long series of actions – Frankly, they do not want to spend the time waiting for results, whether that be accessing the app, receiving a product they ordered, downloading a coupon, and everything in between. Every moment that elapses is one in which you risk losing the opportunity to get a new or recurring customer.

With mobile moments looking to increasingly dominate the worlds of communication and marketing, brands will have to engage with their audience and have to recognize that they have less and less time to convince them to choose your brand – and this all starts with realizing the immense potential of mobile technology.

About the Transformational CMO West Assembly

The world is changing a mile a minute and it is hard to scale. Differentiating yourself and maintaining trust in the ever-changing marketing world seems to be getting easier, but only to those who are willing to adapt to the rapid-fire marketing. The more you can plan ahead, the better equipped you as an executive will feel in managing those changes when they happen.

In June of 2019, the Transformational CMO West Assembly in Nevada is a unique event that challenges our attendees to learn how to anticipate what’s next for the highly complex marketing environment that has emerged throughout the year through a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions with our industry experts and advisory board over the course of 2 days.

Are you interested in becoming a sponsor for this event? Click here today to learn more >>

Are you a CMO interested in attending this event? Inquire here today to find out if you qualify for Millennium Membership >>

Co-Working is the Next Hottest Retail Concept, All Thanks to WeWork

A transformative change has taken place in recent years. The concept of co-working evolving from an alternative to a traditional office lease for start-ups and freelancers is becoming an integral component of corporate real estate portfolios. Since flexibility tops the list of popular benefits of coworking amongst freelancers, small businesses, and large enterprises, the retail industry is rapidly changing to incorporate this business idea into business practice in 2018.

Co-working companies provide short-term leases at various square footages, allowing tenants to determine the most appropriate workplace strategy for their business without a long-term obligation, driving cost efficiency with newcomers and experienced retailers in today’s market.

It’s No Longer a Thing of the Past

Back in October of 2017, the still relatively new co-working company WeWork made a deal to buy Hudson’s Bay Fifth Avenue property Lord & Taylor flagship store for $850 million. This not only raised red flags as to what the future of both retail and office facilities held, but also it gave rise to if such as WeWork, Co-Optim, and NeueHouse pop up are changing nature of work is giving rise to a new kind of retail experience.

“Co-working spaces generate heightened connectivity amongst different businesses, presenting an opportunity for innovation to occur at the intersection of different disciplines and mirroring the balance between intellectual harmony and tension made famous at AT&T’s Bell Labs in the late 19th century.” – Cushman & Wakefield reports.

However, buying up store space has not been the only retail push. Partnerships are another angle that WeWork has been exploring, with WeWork and LinkedIn announcing a partnership with J. Crew that would include panel events, a new work-focus collection and campaign from J. Crew featuring WeWork members, and J. Crew pop-ups exclusively for WeWork members in February 2018, opening new possibilities for both office spaces and retailers in collaboration efforts.

With New Opportunities, There are Always Challenges

With any new idea or innovation, as great as it may be, there are always pitfalls and challenges businesses have to consider. Adding retail to co-working spaces brings certain problems, which Christopher Walton, Former VP of Target Store of the Future describes in the quote below.

“There are a couple big challenges I see. One, it is hard to coordinate retail partnerships at scale in such a way that the retail experiences will stay fresh and well executed across the country. Two, it will also be difficult for retailers to generate the return on the investment required from the partnerships or the product placement. It is similar, in my mind, to the phenomenon of retail at airports. Some money can be made at airport stores, but those stores don’t really blow the doors off for any retailer” – Christopher Walton reports.

Furthermore, most analysts are unsure whether the retail element is a practical measure economically, not just for WeWork, who owes $18 billion dollars in rent despite its success, but for the co-working industry as a whole, which could be in a big bubble that is about to burst for most businesses.

Moving Forward

Moving forward, there may be opportunities for digital retail brands to beat co-working spaces at their own game by opening up co-working spaces of their own. With room for companies such as Apple and Amazon to try co-working in the future, co-working for those companies and other well-known could prove to be a huge advantage for them, igniting an entirely different perspective of the retail space as we progress into the future of retail experience. How exciting!

ABOUT DIGITAL RETAIL TRANSFORMATION

C-Level experts from across North America’s retail industry are coming together in Dallas in August to anticipate the highly complex digital retail environment that will develop over the next few years.

Through a cutting-edge program designed by the industry, for the industry, we will provide a fresh and up-to-date insight to help move your organization to the next level of digital leadership. A series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions will offer industry-specific topics and trends to ensure your company sustains its competitive advantage.

Are you interested in becoming a sponsor for this event? Click here today to learn more >>

Are you interested in attending this event? Inquire here today to find out if you qualify for Millennium Membership >>