Putting Digital to Work
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This document outlines 4 key actions for driving digital transformation: 1) Know your customer by understanding their behaviors, preferences, and needs across different digital platforms and devices. 2) Lead with data by using customer data and analytics to test strategies, measure outcomes, and continuously improve. 3) Test and learn through staged market tests, A/B testing, and continuous learning from results. 4) Master accountability by establishing clear roles and responsibilities, and decision-making processes to enable rapid testing and learning. Taking these actions can help organizations capture market share and revenue growth through customer-centric digital transformation.
Putting Digital to Work
- 1. Putting Digital to Work 4 Key Actions to Drive Digital Transformation
- 3. 2+ million search queries Source: Intel
- 4. 204,000,000 e-mails sent Source: Intel
- 5. 120+ reviews
- 6. 30 hours of video uploaded Source: Intel
- 8. 208,000 photo uploads Source: Intel
- 9. 9 • 44% of all cell users • 40% of those 35-44 • 50% of smartphone owners • 60% of those 18-34 Source: Pew Internet & American Life Project
- 13. Fragmented “Customer” Set Industry Disruption/Disintermedia tion Risk-Sensitive Culture Highly Emotional Purchase
- 14. 4 key actions 1. Know your customer 2. Lead with data 3. Test and learn 4. Master accountability
- 15. 1: KNOW YOUR CUSTOMER
- 16. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71
- 17. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71 May, 1997 •700k/1.5MM online accounts 4.94
- 18. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71 May, 1997 •700k/1.5MM online accounts 4.94 Year-end 1997 7.66
- 19. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71 May, 1997 •700k/1.5MM online accounts 4.94 Year-end 1997 7.66 January, 1998 •Cut commissions to $29.95 in all channels 6.67
- 20. Date Event Split-adjusted share price December, 1996 •Launch online trading 3.71 May, 1997 •700k/1.5MM online accounts 4.94 Year-end 1997 7.66 January, 1998 •Cut commissions to $29.95 in all channels 6.67 Year-end, 1998 •59% commission revenue growth •Pre-tax margin 18% vs. 10.7% industry average •ROIC 5x industry average •50% market share 15.47
- 21. 0 5 10 15 20 25 30 35 40 45 12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95 Split-adjusted share price
- 22. 0 5 10 15 20 25 30 35 40 45 12/1/92 6/1/93 12/1/93 6/1/94 12/1/94 6/1/95 12/1/95 Split-adjusted share price •30%-35% of all revenue- based trades occurred online (up from ~0%) •Schwab captured half •All by focusing on customer
- 24. 2: LEAD WITH DATA
- 26. • “You’re not losing placement on one site; you’re gaining placement on a dozen more” • Defined potential lost revenue to each hotel • Rolled out with only four brands • Reported incremental hotel results monthly • Additional brands asked us to enlist in program
- 27. 3: TEST AND LEARN
- 28. “Swing for Fences” or “Slow and Steady”? • Staged sequence of market tests for client • Holdback and A/B tests on marketing messages • Averaged 1.6% increase monthly • 83% revenue increase over three years • 22% CAGR Image source: http://www.usmc.mil/marinelink/image1.nsf/ae82f18a8e1b160b852568ba007e7e5e/afd408b3a327a3d4852570850054af5b/$FILE/02padres01.jpg
- 29. Not “Big Data.” Your data. • Know your customer • Competitive differentiator • Scale when ready
- 30. Visual Information Specialist Jason Johnston/U.S. Army
- 33. Image © 2011 Manu Cornet http://www.bonkersworld.net/2011/06/27/organizational-charts/
- 34. RAPID • Input • Recommend • Decide • Agree • Perform
- 35. 4 key actions 1. Know your customer 2. Lead with data 3. Test and learn 4. Master accountability
- 36. Thank you Web: timpeter.com Phone: 201-305-0055 E-mail: tim@timpeter.com Twitter: twitter.com/tcpeter
Editor's Notes
- #12: Showed this slide to my daughter. She said, “I recognize that sound. I’ve seen old movies.”
- #21: Source of Schwab financial returns: The Charles Schwab Corporation http://mail1.actionenvelope.com/about/overview/history.html History of The Charles Schwab Corporation – FundingUniverse http://www.fundinguniverse.com/company-histories/the-charles-schwab-corporation-history/ How We’re Different http://www.schwab.com/public/schwab/investing/why_choose_schwab/how_were_different History Timeline | About Schwab http://aboutschwab.com/about/history 05/25/19 REMAKING SCHWAB http://www.businessweek.com/1998/21/b3579181.htm The bull has an identity crisis - Forbes http://www.forbes.com/forbes/1999/0405/6307108a.html Crossing the Digital Divide: A Transition Baedeker http://www.strategy-business.com/article/10516?gko=1341b Get Into E-Commerce Without Betting The Store http://www.journalofaccountancy.com/Issues/1999/May/piturro.htm Merrill Lynch to offer online trading | ZDNet http://www.zdnet.com/article/merrill-lynch-to-offer-online-trading/