Do You Know The News Rules of Influencer Marketing?

Winning friends and influencing millions seems like a daunting task. However, influencer marketing is growing. So, the looming question remains, how can marketers work with influencers while avoiding the mistakes, failures, and controversies that have plagued other brands?

Influencer marketing is a chance to engage with consumers who skip, ignore or avoid ads that are in front of them. The power of the influencer is often underestimated since influencers can offer genuine endorsements and quality exposure that ads sometimes cannot. With this specific type of marketing growing each year, knowing the new rules of influencer can open new doors for brands looking to connect with the latest generation of consumers.

Keeping Up With The Vigor

According to a survey by Klear, influencer posts grew by 198% in 2017. Another survey, the Association of National Advertisers’ April 2018 report predicts that marketers will spend $101 billion on influencer campaigns in 2020, up from $81 billion in 2016. Despite marketers spending more on influencer marketing, experts say that many marketers are not being smart. Although marketers understand how important authenticity and relationships are in influencer marketing, experts say that most marketers seem to forget the main purpose of influencer marketing: engaging, honest and authentic communication with potential customers.

“Good marketing comes with knowing how to create a good relationship. The best marketers understand that the human experience is all about connection. If you’re not thinking about how you’re connecting with people, your brand is probably not going to have a very big fingerprint in the world.” Nathan Michael, Chicago-based influencer and founder of Low Res Agency.

So, the necessity of transparency to a customer is a new rule that marketers must follow in order to conquer influencer marketing.

Giving Your Customers Real Information

In order to build trust with your customers, influencers need to be using your products. This trust is essential; the best influencer marketing trades on it. If a company or an influencer betrays that trust, the campaign may harm the reputation of both. Brands need to work with genuine influencers who actually use their products in order to create content that resonates with followers.

“Transparency is ranked the highest in a list of factors that motivate consumers to be loyal to a brand. And once a consumer has switched to a brand in favor of increased transparency, he or she is more likely to remain loyal long term. Transparency is so important to consumers that it actually increases a product’s worth in their minds.” Forbes reports.

Furthermore, another tactic that brands use to appeal to an influencer’s audience is to give the influencer creative control. When companies create insincere or dishonest campaigns, people feel doubtful. With an influencer that has creative control at the helm, they can create campaigns that transcend consumer expectations. Advertising does not have to be a bad thing, but when it becomes “gimmicky”, people can read that. Instead of being “gimmicky”, experts suggest that brands use influencer marketing to tell authentic stories and collaborate with people who want to create content for a brand. With a true strategic partner, you avoid sloppiness and embrace realness, something which is obviously highly sought after in the eyes of the customer.

Even though you cannot please everyone on social media, but you can radiate a pleasing image by building relationships with reliable influencers. However, with brands finding ways to work with people whom they want to create great work with, the goal should always be creating better work or better opportunities, and that can be done with keeping up with the newest and latest strategies surrounding influencer marketing.

ABOUT DIGITAL MARKETING TRANSFORMATION 2019

With 53% of Marketers planning on adopting Artificial Intelligence in the next 2 years, Event Banner - CDO7the digital marketing revolution is just getting started. CMOs and CDOs alike are seeking new ways to maximize their digital reach to attract new business to, as well as deliver enrich, personalized experiences to existing customers.

The Digital Marketing Transformation Assembly will bring together North America’s most prominent digital marketing technology and business leaders from all major consumer-driven industries to discuss the latest technology, innovations, and strategies driving digital marketing in 2019 and beyond.

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

How Has The “Sharing Economy” Changed Financial Services?

In the digitally-driven world that we live in today, we are connected to each other more than ever before. Whether we are sharing rides via Uber, hospitality services via Airbnb, or products via eBay, we are easily connected with one another and support a new kind of economy that is changing the way we interact with goods and services.

“The sharing economy is proving to be the biggest business trend of all time; and as we say goodbye to 2017, we could look back on the year that saw potential valuations of this new economy soar to $2 trillion and to the battles in cities across the world to adapt to new models of accessing shared resources.” Sustainable Brands reports. 

This economy is referred to as the sharing economy, and just as the name suggests, it refers to all the services that are designed to be shared among consumers.

Where It All Began

As mentioned before, the sharing economy began when companies like eBay, Uber, and Airbnb arrived. These companies were developed with a common goal in mind: to allow consumers to be able to turn to a marketplace in order to exchange goods and services. Uber relies on a vast amount of drivers to carry out services, Airbnb provides rentals through an online marketplace where consumers have the option of sharing their home with potential renters.

These marketplaces opened up a new opportunity for the financial service industry. Once consumers started to rely on peer to peer relationships for their needs, the banking industry caught onto the fact that customers will go to other means of banking, besides a bank.

“By 2020, consumers will need banking services, but they may not turn to a bank to get them. Or, at least, maybe not what we think of as a bank today. The so-called sharing economy may have started with cars, taxis, and hotel rooms, but financial services will follow soon enough.” Investopedia reports.

Airbnb brought many changes to the hotel sector, just as Uber brought many changes to the transportation industry when it comes to supply and cost-effectiveness.

On the supply side, technologies like those that facilitate the sharing economy have given rise to cost-effective alternatives to traditional lodging and will put downward pressure on pricing power in the lodging sector.” Amp Capital reports.

The Sharing Economy Disrupts Financial Services

The digitally-driven sharing economy holds a real potential in the financial services industry. According to PwC, the sharing economy will be one of the most disruptive forces this sector has seen, 2020 and beyond.

“The sharing economy will be embedded in every part of the financial system,” PwC reports.

We have seen the fintech industry expand, as technology continues to grow. The fintech industry has emerged into the finance industry, offering a variety of new tools and services to customers. This relationship will continue to expand in a sharing economy, because peer-to-peer lending financial services firms will create new partnerships with these FinTech companies, expanding into traditional banks.

This relationship roots from the fact that customers are getting smarter when it comes to the options they have when it comes to a  digital front. In other words, some customers are trusting technology companies for peer-to-peer payments as opposed to traditional banks. A great example of a technology company emerging in the financial services industry is Apple. Apple has created a platform for iPhone users that allows consumers to transfer money in a seamless way. Ordinary individuals are able to raise funds and communicate with retail investors.

“Instead of using relatively high-cost bankers to broker the connection between those who have and those who want, the disruptors are using technology to make the match: faster, cheaper, and maybe even better,” PwC reports. 

Opportunities For A Sharing Economy

A sharing economy brings forward many opportunities and challenges. For starters, the sharing economy will help the future of work immensely. This means that the sharing economy will emerge and create better support systems for those working in a sharing economy because of the flexibility that this economy brings. The new platforms that emerge in this economy will benefit workers and create new work as well.

“How our work and business bring value to ourselves and to others, the benefits of being part of connected communities and the ability to pursue our passions so we can live the life we want will become ever more important as the sharing economy takes hold in 2018 and continues to transform our lives and our future.” Suistanable Brands reports. 

As we move into 2018, we will keep an eye on where sharing economy is going, and how businesses can benefit from such a unique structure.

ABOUT FSI TRANSFORMATION ASSEMBLY

C-level IT leaders in the financial services and insurance sectors are dealing with many Event Banner - FSI7 (1)challenges as digital transformation becomes an imperative. Understanding not only the convergence of Mobile, Social, and Cloud but also the possible implications of Artificial Intelligence, Machine Learning and Blockchain is vital to stay ahead of the competition.

Join us at FSI Transformation Assembly for updates on the latest digital technologies and strategies.

Download your copy of the sponsorship prospectus here for more information>>

Announcing the October Edition of the Digital Diary Magazine

We are thrilled to announce the release of the 2nd edition of the Digital Diary Magazine, a direct result of the efforts of our Research and Content team that shares in-depth stories, tips, interviews and case studies of today’s most creative and innovative digital business transformation strategies and technologies.

DOWNLOAD DIGITAL DIARY EDITION 2 >>

In today’s crowded digital landscape, the Digital Diary Magazine hopes to provide you with a quarterly digest of the latest digital business transformation strategies and technologies that are affecting every industry from Marketing to Cybersecurity. Based on content collected from our Membership, Advisory Board, Thought Leaders, Speakers, and Sponsors, this Magazine has all you need to know in one, cohesive place.

The October edition of the Digital Diary magazine looks into the future of healthcare to how the decisions made by CMOs are impacting marketing going into 2019. With your download of this edition, you will receive two free E-Books written by our Content experts!

Discover all of the most pressing issues in the industry in our leading digital magazine and on the #1 online resource for C-Suite Digital Transformers. Subscribe today to Digital Diary to receive the most current and up-to-date blogs right into your inbox!

Top articles and interviews from the 2nd edition include:

  • Keeping your Patient at the Center with i2i Population Health
  • “The only that counts is the content that works” with Percolate
  • How CMOs Can Improve Company Culture
  • Rethinking Business, Branding, and Life with Jim Stengel
  • Saying Hello to GDPR
  • How is TeleHealth Improving the Hospital Revenue Cycle?
  • Planning Effective Video Campaigns Across Screens with Facebook

Download the October edition of the Digital Diary here >>

Happy reading!

About The Digital Diary Team:

– Freya Smale is Vice President of Marketing, Product and Client Services at The Millennium Alliance, Editor-In-Chief at Digital Diary, contributor for Forbes, Business2Community, and Marketer in New York. Freya writes mostly about digital marketing transformation, and the industries looking to the latest digital technology to transform in 2017. You can find her online @FSmale tweeting about #marketing #leadership #digitaltransformation and the occasional shoutout to the Welsh rugby team. Or connect with her on LinkedIn.

– Catherine Hand is the Marketing Coordinator at The Millennium Alliance and Editor of Digital Diary. A recent graduate of Siena College in Albany and New York newbie, Cat assists and leads the creation of Millennium content such as the implementation of social media, brochures, the event agendas, brochures, E-Books, and frequently writes blogs on Digital Diary. You can connect with her on LinkedIn

– Jenny Schecher is a Client Services Director & Social Media Manager at The Millennium Alliance. Jenny is an avid contributor to our blog, Digital Diary, as well as all social media platforms. When she is not writing about digital transformation and technology, she is working with her team to make visions come to life at our events. (and eating all of NYC’s best food.) Follow her on Instagram: @jennyschecs or find her on LinkedIn!

– Cara Bernstein is Manager, Executive Education Partnerships at The Millennium Alliance. She works with Thought Leaders at the Millennium Alliance assemblies and is also a contributor to Digital Diary. Cara writes about different industries preparing for the digital revolution. You can catch Cara on LinkedIn and on twitter @CaraBernstein

The New Dynamics of Brand Creation: Digital Content Has Changed Everything

Originally posted by Anna Badger on Variety.

The media and advertising world just got a lot more interesting.

You see, a funny thing happened while you were streaming video on your phone, listening to podcasts and interacting with your smart, IP-connected TV: Great advertising morphed into great content that consumers don’t just passively consume. They actively demand it if you want their attention, their loyalty — and most of all, their personal data.

That’s right, modern brand advertisers are not selling a product, they are using next-generation media to connect with their audiences in surprisingly intimate ways. And they are maniacally focused on creating rich, memorable and digitally native customer experiences.

Brands that are part of these content experiences get better message pickup because consumers don’t skip these “ads” — they share these experiences, add to them, amplify them and even talk about them while they watch. According to IAB research, more than half of all audiences watching over-the-top (OTT) TV devices like smart TVs discuss the brands they see on screen with the people they are watching with, and ad-supported programming is significantly more popular than subscription-only formats. And brands get something more valuable than a one-time sale: personal data that fuels everything they do in trying to capture the ongoing hearts and minds of customers.

These interactions also represent an enduring shift in the way the consumer economy now operates: Digital content is now the leading way to capture attention, drive engagement, and build brands — especially in the new direct-to-consumer brand landscape.

But you don’t have to just take my word for it. All these new dynamics of brand creation will be on full display at the first-ever Digital Content NewFronts West on Oct. 9 and 10 in Hollywood. The event will introduce brands and media buyers to the latest in original digital programming and feature brand content opportunities across emerging media, including podcasts, augmented reality, and virtual reality.

Themed “Hello, LA: Where Ideas Meet Content,” the NewFronts West marketplace is a showcase for content creators — whether they are big-name media companies or digital natives — to present new technologies and never-seen-before storytelling experiences that drive unprecedented engagement at scale. Even more significant, brands can expect to see the type of inventive digital programming that can help them forge meaningful, direct connections and conversations with consumers.

Hollywood has a successful history in captivating audiences all over the world, and who better to deliver truly rich media experiences than media companies, publishers and entertainment creators based in Los Angeles. Publishers as varied as Snap, Vice Media, the Los Angeles Times, LiveXLive, Meredith and Viacom will be presenting digital content experiences that push the boundaries of what it means to create (and co-create) digital programming.

NewFronts West will also illuminate what’s happening in the fast-changing new influencer landscape, the surprising universe of direct-to-consumer internet celebrities. With incredibly devoted fan bases, these internet stars command engagement that is often orders of magnitude higher than traditional talent — and the intimacy they have with their followers gives them license to market to them in novel (and astonishingly effective) ways.

Make no mistake, the importance of digital content will continue to grow as a driver of revenue and return on investment for both buyers and sellers — especially in a multiscreen world in which this content is consumed on-demand, all-the-time and everywhere. Digital content really is disrupting everything and these new types of programming offer unparalleled opportunities to tell stories and have intimate customer conversations that are make-or-break in today’s direct brand economy.

Anna Badger is EVP of Industry Initiatives for the Interactive Advertising Bureau (IAB) and thought leader to The Millennium Alliance.

ABOUT DIGITAL MARKETING TRANSFORMATION 2019

With 53% of Marketers planning on adopting Artificial Intelligence in the next 2 years, Event Banner - CDO7the digital marketing revolution is just getting started. CMOs and CDOs alike are seeking new ways to maximize their digital reach to attract new business to, as well as deliver enrich, personalized experiences to existing customers.

The Digital Marketing Transformation Assembly will bring together North America’s most prominent digital marketing technology and business leaders from all major consumer-driven industries to discuss the latest technology, innovations, and strategies driving digital marketing in 2019 and beyond.

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

Can Innovation Be Just Too Darn Fast?

Article previously posted on Psychology Today. 

Today’s world is defined by change. Advances in technology, consumer empowerment, and instant gratification are just some of the moving parts of life that are pushing us to a new reality. But a 2017 survey in Fortune suggests that part of the roller coaster ride of innovation—the speed of technological change—is the highest rated concern. The other top concerns included cybersecurity, regulations and sourcing talent. Change, at the speed of life, is the rallying cry of business. But there might be a bit more to the story.

Think about that for a moment—a rapid moment. Of all the concerns that deluge top CEOs, the speed of technology change is on the top of the list. Now, take a breath and think about that for a moment. One of the most common commands barked by senior management—”I WANT IT NOW”—may actually reflect one of their biggest fears!

These days, we all hear terms like “pivot” and “fail fast” as part of the business lexicon. However, this survey seems to indicate that “fast might” just might yield a greater level of concern in the context of growth and innovation. That old linear rate of growth provides an expected and comfortable path to success. But today, exponential change shifts the line to an uncomfortable “slope of concern” that strikes both amazement and fear in the boardroom.

The fear of change even has a name: metathesiophobia. The origin of the word “meta”  is change and phobos means fear. But I think that we need to expand the term and create some new. I suggest hypermetathesiophobia: the fear of rapid change.

Today, innovation requires a shift from the status quo—a push or disruption from the comfort of predictability. That’s tolerable to most. But the roller coaster of innovation offers up a velocity that might result in a “knee-jerk” stomp on the breaks. And that’s not innovation, it’s just fear.

The rate of innovation over can be expressed as dINNOVATION/dt, (dI/dt) or the first derivative of innovation. The instantaneous change (or slope) at any given point on the innovation curve can help define “white knuckle” changes that might disrupt the process itself.

Rapid change (a high dI/dt) is what many in businesses seek. But the reality is that the rate of change must be a function of both person and process. Driving innovation, but pushing people out of their comfort zone (from entry level to CEO) can result in the disruption of a goal intended to be a disruption itself. And pushing methodological systems faster than established functionality and validation can result in a similar catastrophe.

The simple reality is that change is complex. Some are uncontrolled and driven by unseen and unplanned market forces. Yet others are well within our control. The instillation of innovation must be modulated to address existing “fear” factors and let all the stakeholders enjoy the inevitable ride.

ABOUT DIGITAL HEALTHCARE TRANSFORMATION

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The Millennium Alliance is pleased to announce that application for our Digital Healthcare Transformation Assembly is now open! Seats are reserved for the C-Level executives leading the digital healthcare revolution.

Healthcare is changing. The need for customer-centric transformation is more vital than ever, to be open and transparent to patients as they navigate new policies. Healthcare systems and insurance carriers are being forced to respond to new demand rapidly.

Download the sponsorship prospectus for more information>> 

Why Transparency Matters More Than Ever

Transparency is much more than a buzzword. The topic of transparency carries significant weight in today’s competitive business environment because everyone from executives to employees, to customers, is talking about transparency.

The topic of transparency has been a running theme in the marketing world for years now, but now new reports emphasize how many marketers are still coming up short in terms of how they present honestly in their businesses and brands to consumers online. But why? Simply put, transparency builds trust and it is becoming more important than ever.

Where It All Begins

Transparency is a key factor to the success of a company, and it begins in the workplace. Employees want to work for a business where information like company goals, business trajectory, product roadmaps and more, is proactively shared. This not only enables employees to improve performance and productivity but also establishes a culture of trust and accountability throughout the organization. When trust is established in an organization, it is easier for an organization to be clearer with not only themselves but to their customers.

“A certain level of transparency created through communities leads to a more customer-centric atmosphere; the more transparent the company, the deeper the customer relationship. The combination of transparency and trust humanizes brands and makes customers feel like they have a personal connection with your company.” Social Media Today reports.

More than half of costumers said they would be more likely to consider brands that are transparent on social media for their next purchase, while a lack of transparency might lead to customers purchasing from a competitor. However, people tend to give brands another chance when they do not deliver the first time around, demonstrating the importance of being honest and open with a customer to rebuild their trust.

Your Brand Is Worth It, So Prove It!

It goes without being said, you picture your brand leaps ahead of your competitors and as a game-changer in your space. So, if your brand is worth it, go prove it! Usually this attitude begins with establishing a customer fan-base. With an overall satisfaction rating in social media falling in 2018 due to privacy concerns and negative content, marketers wanting to win over Gen-Z and similar, digital- and mobile-first demographics like millennials might think about taking a people-based approach to their social strategies.

This is where transparency steps in. Transparency provides a powerful insight into customer satisfaction: Once mutual trust is established, customers will be more open to providing feedback. By encouraging them to post frequently in your online community and to share their experiences with fellow customers, it will make your brand more credible, approachable, and valuable. Since transparency is a critical component to customer success, creating a feeling of an open community will benefit your brand in the long run.

ABOUT TRANSFORMATIONAL CMO

The 8th Transformational CMO Assembly in Denver 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.

Download your copy of the sponsorship prospectus here for more information>>

Spaces are reserved for the best in the business. If you’re a CMO looking to stay one step ahead of the digital world, reserve your seat today >

The Millennium Alliance Celebrates The New Roles of Benjamin Kirshner & Amanda Formicola

In the past few months, we have seen some great employees recieve promotions to higher positions. We are so happy to dedicate the following blog to two individuals who have truly stood out in our culture. Thanks, Ben, and Amanda for answering some questions for Digital Diary!

Amanda Formicola – Delegate Account Manager

Congrats on your recent promotion as Delegate Account Manager! Can you tell us a little bit about your new role?

I am responsible for reaching out to executives for our upcoming campaigns and developing those relationships, as well as handling any problems that arise with an executive’s possible participation.

On a personal level, what does The Millennium Alliance mean to you?

The Millennium Alliance was the beginning of a new chapter for me, both personally and professionally. I’ve grown a lot, and this company has given me skills and tools which have been instrumental to that growth.

What factor do you think contributes to success for employees at The Millennium Alliance, and how does one achieve it?

We have a saying, “Effort is the currency here at The Millennium Alliance,” if you work hard, you will see results. Also, our teams work amazingly well together, and everyone is so supportive of each other.

What is your favorite aspect of working at Millennium?

Working with such a talented group is a great motivator, as I really feed off of the positive energy around me.

What are you looking forward to the most in your new role?

I always want to contribute as much as I can to the success of our campaigns, and I think my new role will allow me to support my team, and add value to our events, in a different capacity.

In your opinion, what sets The Millennium Alliance apart from other organizations?

Every single person at The Millennium Alliance cares about the quality of their work, as well as the success of our company as a whole, and so, you have a team that will go above and beyond to make our events the best in the industry…and that is apparent in every part of our process.

Ben Kirshner – Senior Director

On a personal level, what does The Millennium Alliance mean to you?

It’s been a great place for me to advance my sales career as well as form lifelong friendships along the ride and sharpen my sales acumen.

What factor do you think contributes to success for employees at The Millennium Alliance, and how does one achieve it?

One simple word, effort! Also, perseverance and the inner drive to grow must be present in order for one to reach their potential.

What is your favorite aspect of working at Millennium?

The excitement of working for a young growing company with great people around me.

What are you looking forward to the most in your new role?

I’m looking forward to having the opportunity to get the best performance out of those working under me while teaching them you can be successful and have fun in the process.

In your opinion, what sets The Millennium Alliance apart from other organizations?

One thing that really sets our company apart from others is the amount of comradery we have here. It always feels like family and you can’t put a price on that!

ABOUT THE MILLENNIUM ALLIANCE

Headquartered in Midtown Manhattan, The Millennium Alliance is a leading technology, business, and educational advisory firm. Focusing primarily in areas such as business transformation, executive education, growth, policy, and need analysis. Millennium is quickly becoming one of the most dynamic locations for collaboration across the world.

Millennium Membership offers Fortune 1000 C-Level executives, leading public sector/government officials, and thought leaders across a variety of disciplines unique and exclusive opportunities to meet their peers, understand industry developments and receive introductions to new technology and service advancements to help grow their career and overall company value.

6 Ways To Build A Customer-Centric Culture

Article previously posted Harvard Business Review.

Companies have been trying to adopt customer centricity for nearly 20 years now. But the CMO Council reports that “only 14 percent of marketers say that customer centricity is a hallmark of their companies, and only 11 percent believe their customers would agree with that characterization.”

Why do so many companies struggle to get customer centricity right? The volume, velocity, and variety of customer data that now exists overwhelm many organizations. Some companies don’t have the systems and technology to segment and profile customers. Others lack the processes and operational capabilities to target them with personalized communications and experiences.

But the most common, and perhaps the greatest, barrier to customer centricity is the lack of a customer-centric organizational culture. At most companies, the culture remains product-focused or sales-driven, or customer centricity is considered a priority only for certain functions such as marketing. To successfully implement a customer-centric strategy and operating model, a company must have a culture that aligns with them — and leaders who deliberately cultivate the necessary mindset and values in their employees.

To build a customer-centric culture, business leaders should take six actions:

Operationalize customer empathy. Empathy is one of those buzzwords that sound really good, but very few companies actually understand what it means, much less practices it. Essentially, customer empathy is the ability to identify a customer’s emotional need, understand the reasons behind that need, and respond to it effectively and appropriately. And it’s pretty rare. According to PwC, only 38% of U.S. consumers say the employees they interact with understand their needs.

To instill empathy as a universal value, one that informs everything their organization does, leaders must do more than giving it lip service. Slack, the business communication software company operationalizes empathy. Employees spend a lot of time reading customer messages and observing customers to try to intuit what they want and need. Customer support specialists are encouraged to research the people they’re helping and create mini personas for them to better understand how the customers are using Slack. The company screens to support people who know how to express empathy through the written word, and the company doesn’t allow them to cut and paste canned responses. And for partners who build apps on the Slack platform, the company promotes nine best practices to help them practice empathy, including “outline your use cases” and “storyboard each interaction.”

Hire for customer orientation. From the very first interaction with prospective employees, organizations should make thinking about customers and their needs a clear priority. At Hootsuite, the social media management platform, marketing and human resources executives collaborate to do this.

During the interview process, hiring managers are required to ask every candidate, regardless of role, a question to gauge their customer orientation. Kirsty Traill, the company’s VP Customer, explains that this practice not only assesses candidates and ensures that every new employee is aligned to customer-centric thinking, but also sends a clear message to everyone — recruits and hiring managers alike — about the importance of customer experience at the company.

Democratize customer insights. For every employee to adopt a customer-centric mindset, every employee must understand the organization’s customers. Adobe Systems has opened up access to customer insights for all employees. It doesn’t store up customer understanding in the sales and marketing groups and then expects other departments to focus solely on their functions.

The company created a new department, a combined customer and employee experience team, to facilitate customer understanding. It set up listening stations where employees can go, either online or in an Adobe office, to listen to customer calls. And at every all-employee meeting, leaders give an update on the company’s customer experience delivery.

Facilitate direct interaction with customers. Companies need to develop ways for employees to interact with customers directly, even in “back office” functions. After all, every employee impacts the customer experience in some way, even if indirectly, so every employee can benefit from interacting with customers to better understand them and learn about their successes and challenges.

Airbnb considers hosts, the people who rent out their homes, to be customers, so it facilitates employee-host interactions by requiring employees to stay in Airbnb rentals whenever they travel for business. The company also asks employees to let hosts stay with them when they attend meetings at the Airbnb offices. What’s more, employees participate in an annual event alongside hosts so that together they discuss learnings from the past year and plans for the next.

Most organizations’ business models probably don’t allow for direct employee-customer contact as organically as Airbnb’s does, but leaders can still facilitate interactions by letting employees observe focus group, sales, and support calls, customer visits and ride-alongs, and co-creation labs, and participate in customer events like advisory board meetings and industry conferences.

Link employee culture to customer outcomes. The adage “You can’t manage what you don’t measure” applies to customer centricity, too. Managers will be motivated and equipped to cultivate a customer-centric culture if they know if and how it impacts results, so organizations should ensure they establish and track the link between culture and customer impact. According to Diane Gherson, head of HR at IBM, employee engagement drives two-thirds of her company’s client experience scores. That proves what Gherson and her team knew intuitively: If employees feel good about IBM, clients do, too.

Temkin Group, a customer experience consulting firm, has developed a model that estimates the impact of customer experience improvements on revenue in different industries. On average, Temkin calculates, a typical $1 billion company can gain $775 million over three years through modest improvements such as reducing customer wait times or making a transaction easier for the customer.

Tie compensation to the customer. Organizations should reinforce a customer-centric culture through their compensation program. Donna Morris at Adobe calls this “giving every employee skin in the game.” She says that for employees to know that customer-oriented attitudes and behaviors are expected from them, there has to be “an element of risk” to it.

So Adobe implemented a compensation program tying every employee to the customer. The short-term cash incentive plan reflects the company’s revenue performance as well as customer success measures such as retention. The program not only makes tangible the contributions to the customer that every employee makes but also produces organization-wide alignment because everyone is working toward the same goals.

Company leaders are starting to recognize that culture and strategy go hand in hand. Only when customer-centric strategies are supported and advanced by culture will a company realize its customer-centric vision.

ABOUT THE AUTHOR

Denise Lee

Denise Lee Yohn is a leading authority on positioning great brands and building exceptional organizations and has 25 years of experience working with world-class brands including Sony and Frito-Lay. Denise is a consultant, speaker, and author of What Great Brands Do: The Seven Brand-Building Principles that Separate the Best from the Rest and the new book FUSION: How Integrating Brand and Culture Powers the World’s Greatest Companies

ABOUT TRANSFORMATIONAL CMO

This October, the 8th Transformational CMO Assembly in Denver is a unique event that Event Banner CMO8 - 300x300 (1)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.

Download your copy of the sponsorship prospectus here for more information>>

Spaces are reserved for the best in the business. If you’re a CMO looking to stay one step ahead of the digital world, reserve your seat today >

What makes our assembly so exclusive is our exclusive content. And what better way than getting exclusive content than by downloading our brochure created with you in mind?

Download your copy here to get a sneak peek into our assembly today >>

“It is crucial for the company to understand their role and ownership of security.” Interview with Michael Coates, Former CISO at Twitter

With Transformational CISO only a month away, Digital Diary had the opportunity to sit down with Michael Coates, CEO and Co-Founder of Altitude Networks (and former CISO at Twitter!) leading up to our highly anticipated event in Miami.

Thanks, Michael, for sharing your expertise with us and our readers!

In your recently published article on LinkedIn, you note that the security community should bring the security conversation to a more practical level for average users and companies. That being said, in your opinion, how should executives in cybersecurity shift their mindset to meet the needs of their users?

There are two areas that need to be given much more attention – threat modeling and usability of security, both consumer and enterprise facing. The natural approach of many security professionals is to design the most secure solution against all potential threats leaving elements such as usability as an afterthought. As a result, we end up with solutions such as PGP and complex password requirements. Both of these may “provide academically correct security” but from a practical perspective, they are failures. They are just not usable. Instead, it is critical that we define the threat model we are designing for and provide controls that are intuitive, enabled by default, and ideally seamless from the user’s perspective. Security is not a one size fits all field and consequently, it is crucial that we consider the threat model of our users. The amount of friction and impact to usability in the name of security is quite different for a journalist with anonymous sources, versus a bank employee, versus an everyday users looking to share photos. We also must realize that the “user” is not just the individual consumer purchasing a product. It is also the enterprise employee beholden to security policies and systems or the security professional attempting to understand and use security tools. We must realize that security is not what users want to think about, it’s what they expect, and ideally, they want it to be seamless. Until we adopt the priorities and mindset of our users we’ll keep creating security that works in theory, but not in practice.

You led Twitter’s security program across all elements of information security for 3 years. Reflecting back on your time there, how were you as a CISO able to change the way the company defended itself against modern application attacks?

The field of security is clouded by newspaper headlines, misinformation, and far too many ‘the sky is falling’ security individuals. One of the best activities we can drive as CISOs is a return to an ordered and logical evaluation of security as a function of risk management. The details, controls, and technologies will for sure be technical and require deep security expertise, but what elements are prioritized is very much a risk management decision. Along these lines, one of my main focus areas was bringing visibility to the highest risks facing the company and ensuring that senior leadership understood that action, or inaction, was a business risk decision owned by leadership. This distinction of ‘ownership by leadership’ may seem subtle, but it is an important evolution for security programs to establish that a security team alone can’t be responsible for all risks. The security team spans all activities of a company, but we do not write every line of code or maintain every system. Therefore it is crucial for the company to understand their role and ownership of security.

This way of thinking enabled the security team to tackle security while working closely with the expert engineers that did build and own the technology. In the end, the creation of security controls and processes that were appropriate for the massive user base and real-time nature of Twitter was an exciting challenge. It certainly instilled a respect for solving security problems with scale and speed.

During my time at Twitter, I also strove to break down the outdated thinking that strongly delineated internal and external attackers. This false sense of security implies that internal systems face less attacks by nature of only being accessible to those inside the company. This thinking fails for two reasons. One, the enterprises of today are filled with BYOD, cloud service connections, contractors, wireless networks, acquisitions and more. There is no notion of a general protected internal network. Second, an external attacker becomes an internal attacker the moment they breach a single public facing machine. Therefore, if the internal network is not treated as a hostile environment it won’t be long before external attackers gain access to crucial systems and data within the company.

You left Twitter this year to start your own security company, Altitude Networks. What expertise did you find most helpful in your transition from an established global platform to the startup culture?

Scrappiness and grit. At the end of the day, you just have to get it done. Tackling large and complex challenges on a global platform drives home the reality that you will be in new and uncomfortable realities on a regular basis. The key is the principles you believe in, the team you have around you, and the shared vision to drive through the challenges.

What are the biggest mistakes a company can make when preparing for the inevitable security attack?

The biggest mistake would be to assume that you aren’t a target or it won’t happen. Every company has information that is valuable, can be monetized, or is a target for someone looking to make a statement. In addition, opportunistic automated attacks are rampant. It is irresponsible to not realize that every company is a target.

Second, is to not prepare for what will happen when an attack or breach occurs. “War games” or “tabletop security exercises” are fantastic activities that quickly highlight breakdowns in expectations or capabilities. I highly recommend companies hold these activities on a regular basis, even quarterly. In a “war game” the company creates a mock breach scenario and brings together stakeholders to role-play what would happen. An attacker just pasted usernames and passwords on Pastebin claiming they are from your web app. The New York Times is asking your press team for comment. The story will run in 2 hours. What happens next? Who does press notify? What teams are involved? What tools and runbooks exist to investigate the issue? Is there a plan?

I lead an exercise such as this early in my time at Twitter. We even created a fake scenario and didn’t inform many people ahead of time to see how the situation would play out. This was a fantastic learning opportunity that enabled us to identify procedures and technologies we could bolster – all before a real attack occurred.

What are some helpful resources for companies that want to improve web security?

Basic application security knowledge for all developers is crucial. Fundamentally, most web security issues are a breakdown in the expectations held by the developer about trust boundaries. Many of these issues are simply due to a lack of education on the underlying technology and the practical knowledge of what information can be accessed and edited by an attacker. Fundamental application security knowledge, such as what is covered in OWASP Top 10 trainings, can dramatically help level the playing field for developers.

Next, it’s crucial for security teams to abstract away as much application security from engineers as possible. The secure path should be the easiest path. Time spent strengthening the web framework and developer design patterns to adopt security by default is great. Don’t require developers to remember security, do it for them.

After developer education and securing the development process, look towards security validation tools such as static/dynamic analysis or automated security testing. After the security program has stabilized and matured then consider an external security bug bounty program. When done correctly and at the right time, a bug bounty program is a great part of an overall web security program.

What advice would you offer to CISOs as more and more people, especially attackers, become more connected and digitally fluent?

Remember that all elements are on the table for an attacker and the technology footprint of a company is dramatically increased in today’s distributed environment. For example, what is the risk to the company with non-managed personal technology? How could the compromise of an executive’s personal email account impact corporate data security? Should an employee be able to travel to any part of the world with their company laptop and have full access to corporate systems? Single sign-on may simplify access to the growing wealth of third-party web applications, but how do you off-board the collaborators of shared documents? These types of scenarios all present risks to the organization and must be considered within the security program.

As a well-known leader in the cyberspace, you are aware of all the ins-and-outs of trends impacting cybersecurity. What trends are you keeping your eye on?

The future of enterprise security is autonomous defense systems. Humans are simply too slow and inefficient to be relied upon to be in the critical path for defending technology. Humans must use our expertise, creativity, and skills to build, connect, and tune enterprise security defenses. But the age of security tools generating thousands of alerts for humans to parse through amongst a massive log dump are coming to a close. We see these trends beginning in areas such as security orchestration, behavioral analytics (UEBA) and, of course, machine learning. However, I believe many of these areas are in their infancy and will serve as a stepping stone to more effective autonomous defense systems in the future.

We are very excited you are attending and keynoting our Transformational CISO Assembly this November in Miami. Can you give us a sneak preview as to what you will be speaking on?

I thoroughly enjoy the opportunity to chat with other CISOs. We have a very unique role and as technology becomes even more ingrained in our lives the importance of security will only increase. Throughout my security career, I’ve had the opportunity to work at several large technology companies with hundreds of millions of users. These experiences have forced me to think differently about tackling security challenges. From these experiences, there are three things I’d like to talk about at the Transformational CISO Assembly. First, usability is the new priority for security and a shift in our thinking is required. Second, the future of security defense is operating at massive scale and speed. How does this change our tools and techniques? And third, with competing priorities and budgets how does security influence change within an organization?

What do you think are the benefits are for a C-Level executive in attending a small, intimate assembly such as ours?

The main reason to attend an event is to be presented with new ideas to challenge and inspire your thinking and to make connections to other brilliant individuals in your field that can foster new relationships. The small gathering of the top minds at the Transformational CISO Assembly is the perfect space to accomplish this goal.

ABOUT THE TRANSFORMATIONAL CISO ASSEMBLY

In a new digital world, driven by data, businesses of all sizes are working tirelessly toEvent Banner - CISO Miami (1).png secure their networks, devices, and of course, their data. CISOs need to plan for worst-case scenarios, stay ahead of latest IT Security transformation technology, and maintain their company’s information assets without losing sight of the corporate culture.

This November, the 6th edition of our Transformational CISO Assembly will bring together industry leaders to discuss the latest strategies and innovations in cybersecurity in Miami. Join us today, the assembly is now open for application!

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Reimagining Your Tech Workforce In The AI Age

Have you heard? Artificial intelligence is significantly changing organizations. This has been repeated many times before, as you may be aware. However, IT leaders must act now to ensure their teams can handle this digital transformation since AI can be an intimidating shake-up.

There is no denying the disruption that technologies like cloud and mobile have made in the recent past. But, AI is a completely different ball game. AI is bringing changes to organizations and society that are on a whole new level since it has the ability to free up your time and provide accurate completion of routine skills, to name a few. Reimagining your tech workforce with AI may seem like a daunting task, but it is the one technology that is expected to heat up and hit desks faster.

Human + Machine = Teamwork

One of the biggest challenges facing IT executives in the AI transformation is the need to recognize and fill skills gaps quickly and effectively to keep pace with the scale, speed, and scope of technology change. The first step in filling skills gaps is identifying them. However, in the era of human and machine collaboration, pinpointing skills gaps is becoming increasingly complex as we move forward. But, there is much to be learned in this new form of collaboration.

“We have really seen that there is this early-stage shift from a automation focused with artificial intelligence to an imagination and re-imagination focus. And we’re seeing that companies that focus on imagination and re-imagination are able to do a lot more and to do things differently than the companies that are just focusing on automating the old ways of doing things.” James Wilson, Senior Technology Leader at Accenture writes.

Human-centered skills such as problem-solving, judgment, and communication will be critical for businesses to succeed at the human-machine collaboration.

Lowering The Barrier To Use AI

The most major step in reimaging the tech workforce is that executives need to start to think about really lowering the barrier to using AI. IT leaders should develop relationships that help broaden their network so that they have a bigger talent pool from which to source scarce talent. Academic partnerships, apprenticeship programs — and even gaming conventions, which draw individuals with unique technology skills — can be rich sources for lowering the barrier.

AI has set a new standard for technology change that will only accelerate as the year’s progress. The key for IT leaders is to have a strategy that optimizes the right kind of work to the right kind of talent sources at the right scale in order to tackle transformation. This will not only maximize the business value that companies receive from AI and other technologies, but it will empower IT functions to continue to lead the charge on disruption.

ABOUT DIGITAL ENTERPRISE TRANSFORMATION ASSEMBLY

The Millennium Alliance is thrilled to present the 8th edition of Digital Enterprise Transformation Assembly that is put together by the industry, for the industry. Join us for a series of executive education roundtables, keynote presentations, collaborative think tanks, educational workshops, and networking sessions offering industry-specific topics and trends to ensure your company sustains its competitive advantage.