April 20, 2020No Comments

What will the world look like after the Corona crisis?

The Corona-pandemic has shaken the entire world and altered the way we live our lives, at least temporarily. The question is: how temporary is the current state we are in? Or rather how will our lives, society and world be altered and in what ways?

The immediate consequences we see so far are lockdowns, social distancing, an overwhelmed health care system, companies shifting to remote working models, gatherings being banned and borders closing.

The events caused by the pandemic are still unfolding and the many variables make it inherently complex to predict the outcomes. Will things go back to normal or will they forever change? Predicting the future is impossible but it is possible to see some early indications of trends that are emerging. In this blogpost, we will focus on three areas that we see will be impacted and present a couple of trends regarding each area:  

  • Globalization 
  • Healthcare  
  • Employment 

1. A changed perspective on globalization 

Since mid 20th century we´ve seen an increased interconnectedness thanks to the rapid advances in transportation and technology which have had a positive impact on global trade and cultural exchange. We live in a society where it’s easy to ship goods across the world and where it’s possible, and even considered natural, to work, move and travel abroad.

While globalization indeed has helped raise incomes, rapidly develop economies and increase production of goods and services – it has also helped increase the risks of contagion, both medical and financial. The spread of Covid-19 has been accelerated by the global interconnectedness, and our reliance on globalized value chains makes us vulnerable to the effects of the crisis. Will these downsides start to change our previously positive view of the free global movement?

1.1 Monitoring and controlling the free movement 

In order to prevent future pandemics, traveling will likely come with further safety measures using methods that could have implications on traveller's privacy. We have already seen examples of nations using technology to monitor and track contagion within the population. One example is China that has used monitoring systems to identify suspected coronavirus carriers but also to reinforce quarantine behaviours, using e.g. smartphone location, face-recognition, reporting of body-temperature and medical conditions. Other countries that have used similar solutions are Taiwan, Israel and Hungary.

We may see an upcoming increase in implementation of such solutions after the crisis, in efforts to try to avoid further pandemics. For instance, Apple and Google recently announced a collaboration with purpose of providing tools that will help track the spread of coronavirus. In the future we might start seeing tech solutions for checking medical health at airport security checkpoints, or we may need to verify our “health status” using biometric bracelets or medical apps on our smartphone, before we enter a country or a public space.

1.2 From lean and globalized value-chains to buffers and backups

Companies have become more and more efficient in their production processes and many have perfected decentralized global value-chains. A lot of companies rely on collaborations and partnerships with a network of global suppliers and these setups have in many ways been greatly beneficial for companies. Notable examples are Apple that has over 200 suppliers around the world and several car manufacturers, like Volvo, Hyundai and Fiat that are dependent on components that are made in China – all companies that now have suffered from halted production. China represents 16% of the global GDP and US represents 23%, making the whole world dependent on what happens in the Chinese and American economy.

We will probably see different production setups arising with an increase in safety buffers and a greater diversification of the supply chain.

We have recently experienced the downsides and risks of global supply chains and it has become quite evident that many organisations lack backup solutions and don’t have storage or buffers to rely upon to help them overcome temporary issues in the value chain. It is likely that we will see altered strategies after the Corona crisis, where organisations will begin to plan for handling another crisis or pandemic. It is not likely that we will see companies completely abandoning global value chains, since the benefits are still there, but we will probably see different production setups arising with an increase in safety buffers and a greater diversification of the supply chain.

1.3 Increased international collaboration and cooperation

The effects of the Covid-19 outbreak demonstrate how unprepared we are to handle such a pandemic on the international level. To successfully contain the spread of the virus, international collaboration and cooperation is necessary. Previous outbreaks such as Ebola in West Africa, or SARS and MERS have served as warnings, but did not result in enough international action. This time, things are different.

Although we have seen increased protectionism during the last years, it’s possible that this pandemic will acknowledge our interconnectedness and spur efforts to work together more closely.

We can learn from our collective experiences and use that knowledge to increase our preparedness for future crises. Isolation is a key component in containing the spread of a virus, but it’s not the best way forward when preparing for future, global events.

 

2. Shifting societal priorities and strengthening the healthcare system

This pandemic has revealed how vulnerable our societies are and the importance of robust healthcare systems with sufficient resources. The fast spread of the Corona virus has forced nations to put everyday life on pause and is putting increased stress on our societal abilities to cope with the spread of the virus.

2.1 A strengthened healthcare system

The pandemic has put our fundamental societal structures to a test, and in the aftermath, we may see a re-prioritization of resources. How can we make sure that we are better prepared for a global crisis such as Covid-19? And how can governments guarantee an effective health care?

Preparedness for crisis

It’s now obvious that most countries have not prepared for a pandemic such as Covid-19. The prime minister of Sweden – Stefan Löfven - recently acknowledged that our preparations have not been adequate. During the last thirty years, Sweden has deliberately disposed of medical supplies and equipment which would have been valuable today. We believe that this pandemic offers a rapid awakening regarding the consequences of the unexpected. Hopefully, we will learn from this experience and make sure that we prepare for future crises, not least within the healthcare system.

Resources and management

Our healthcare systems have been put under great stress for many years. We believe that after the crisis there will be a healthy and necessary discussion in Sweden regarding the resources allocated to the healthcare system. There is much to be done, not least ensuring that there are sufficient medical personnel available also in times of crisis. Hopefully, we will also see a shift in how the healthcare system is managed with less politicization.

2.2 The rise of self-help health care tech

We have already begun to see an accelerated adoption of “digital doctor” services since the pandemic started. The Swedish telehealth solution Doktor.se reports that the number of cases has doubled as a result of covid-19, a trend that other telehealth solution providers note as well. The increased adoption is seen largely in the older age groups as they, due to safety reasons, should avoid visiting hospitals.

The limitations in the traditional physical health care forces an increased adoption of new digital solutions and it empowers people to take personal control of their own health care. This drives up the demand for effective home diagnostics tools, telehealth solutions and other solutions that extend the reach of the healthcare professionals. We will likely see an increase in innovation and adoption of such solutions that will enable the individual to take a greater role in their own health care, even after the pandemic.

2.3 Healthcare efficiency enabled through AI and faster innovation

AI is already having a big impact within the healthcare sector, and it will likely play an even greater role in transforming medical procedures after the Corona crisis.

AI could support in making more accurate diagnoses, mass diagnosing conditions and be used to speed up the development of pharmaceuticals. AI can also help improve the patient experience and automate hospital processes.

We therefore see an increased demand of AI solutions as they enable efficient healthcare and improves nations capability to battle future virus outbreaks. The health care sector has, compared to other industries, been slow atembracing tech innovation and entrepreneurship. A possible result of this crisis could be that technological development, innovation and entrepreneurship within the health-care sector could be boosted and receive more resources going forward.

3. The future of employment

With the spread of covid-19, came also an economic crisis resulting in bankruptcies and mass unemployment. According to Forbes, the number of layoffs in USA could reach 47 million in June 2020, which would lead to an unemployment rate of 32.1%, higher than the great depression´s worst rate of 24.9%. In Sweden, 36,800 people have been laid-off during March 2020 which is 10 times the numbers from March 2019. The Swedish minister of finance Magdalena Andersson recently presented a report estimating that unemployment would reach 9-13.5%. We can also see how lockdowns and recommended social distancing, to battle the spread of the virus, has impacted schools and workplaces where many are nowadays working from home if possible. We see these events as important change indicators for the future of employment.

3.1 Gig-Economy providing the job opportunities

The gig-economy has during the past years emerged and grown more common thanks to the larger number of freelance- and gig-platforms available in a wider area of industries. The overall shift to a more gig-oriented job market has not yet been fully carried out, where one of the main challenges for the gig-movement is the perceived lack of employment security that the work form entails.

Due to the coronavirus we are unfortunately seeing unemployment rates reaching record numbers and finding a permanent position during these times can be difficult. It is quite possible that many, whom prior to the mass-unemployment rate have been unwilling to take gig-jobs, will need or even prefer to make the move into gig-economy. The shift to gig-work may either be of necessity, opportunity or due to a shifted perception of job security and the trend will likely be more common with younger professionals, within tech and consulting professions.

Short term we will see an increase in the number of job seekers, but eventually employers will slowly be able to engage in lighter investments again, resulting in more job-opportunities. The immediate resource needs in society due to lock-down are within delivery, health sector and e-commerce, however the future might create new job opportunities, as we will need to increase our crisis-mode capabilities both within organisations but also on a governmental level.

3.2 Will the entrepreneurship trend die out?

We have during some years been able to observe a growing trend of entrepreneurship, where an increased number of people have sought out to start their own ventures. The small businesses owners are badly hit by lockdowns and shops and restaurants are as a result going out of business. What will happen with them after the crisis, and will this result in the end of entrepreneurship?

We believe that entrepreneurship is a state of mind and this pandemic will bring creativity out of people. Entrepreneurship will not die, it will evolve.

A crisis tends to fuel entrepreneurship and innovation, and a disruption of current magnitude in the market will create new opportunities. Many digital tech entrepreneurs are currently flourishing, and we will most likely see many more enter the growing market sectors. In fact, opportunities even lie in the market of providing support to struggling small businesses during the crisis, where entrepreneurs can provide smart solutions within paytech, enabling home delivery and much more.

3.3 Digital workers and shifting work-life priorities

Due to lockdowns many companies shift to working remotely and digitally assisted. The “work from home” setup has presented organisations with some immediate challenges needed to be quickly addressed in order to increase efficiency and employee satisfaction. Even if many might initially be struggling with the new setup, there are also quite some benefits of remote work if you learn to manage it (and yourself) correctly. The increased flexibility and undisturbed working hours could enhance productivity and improve private life priorities.

We therefore strongly believe that the remote working model is here to stay, and organisations will need to manage the daily work-life differently and more consciously design the employee experience. The big move has already happened unwillingly due to the coronavirus, and now that many more have experienced the value of remote work it will become a necessity when moving forward.

Cartina recently posted an article about the topic of remote working – becoming the new normal, where a deep dive of our point of view is presented along with some recommendations for success. You find it here: When working from home becomes the new normal

What do you think the world will look like after the corona crisis? We would be interested in hearing your thoughts and ideas!

Please comment or contact us for further discussions.

March 31, 2020No Comments

The value of fact-based decisions in times of crisis

"I've been in this business for 20 years and I've never seen anything like this before. Our revenue has decreased with over 90% and it's uncertain when and if it will go back to normal again. What should we do?"

 

We received a call last week from one of our clients, in which they expressed their concerns about the current market situation. As we are all being affected by the spread of covid-19 in many ways, it is easy to relate to the unfortunate and distressing situation that many businesses are facing today.

Six months ago, climate change and extreme poverty were two of the major global threats on the world agenda, however the world is currently facing another enemy, which is the global pandemic caused by the fast spreading coronavirus called Covid-19. Not only does this pandemic pose a threat to many people’s health and lives – it has also turned out to have big ramifications on the global economy, on politics, societal functions and the livelihood of countless people, resulting in mass unemployment.

Companies and business leaders are currently faced with a great level of uncertainty and are forced into quick decision making in order to survive, why access to relevant and accurate information is necessary. The stakes are high, and decisions made today may impact many employees, customers, owners, suppliers and business partners for months or even years to come. How we deal with information is therefore crucial for making well guided decisions.

 

How can we ensure that information is being processed correctly in order to maintain a balanced perspective, when we are overwhelmed with information from different sources, often influenced by a high level of fear and urgency?  

 

When analysing information it's important to be aware of potential biases and data gaps. The book Factfulness: Ten Reasons We're Wrong About the World - and Why Things Are Better Than You Think, written by Hans Rosling together with Ola Rosling and Anna Rosling Rönnlund in 2018, describes the pitfalls of interpreting information and the principles presented in the book are relevant for supporting fact-based decision-making.

For instance, there are three key things that are emphasized in the book to help us maintain an accurate view of the world:

  1. Realize that we don’t see the world as it is.
  2. Recognise what types of stories trigger our dramatic instincts.
  3. Use simple rules of thumb to resist over-dramatic stories.

One of the core messages in Factfulness is that it's easy to misinterpret information about the world, leading to an overdramatic worldview. The reason for this is not necessarily because the information we receive is wrong, but rather because it's taken out of context or only one side of the story is being presented. It is true that the situation we are currently facing is serious, but it is in uncertain and frightening times that it is even easier to make hasty and drastic decisions based on misinterpreted information.

Given our experiences from working with data-driven organisations and decision-making, it's very clear that our instinctive behaviours as humans and the way our minds function sometimes get in the way of drawing accurate conclusions based on data. Even organisations that have processes and tools in place for utilizing data effectively, experience challenges in interpreting data and turning it into fruitful actions.

If we revisit our client, who experienced a dramatical stagnation of revenue due to the current Covid-19 crisis: how could they implement a fact-based approach when deciding what actions to take? Here are some thoughts and suggestions:

1. Look at your options

No matter how grim the situation, there are always options. What are your options, and what are the implications? Developing and analysing different scenarios, not forgetting to take several perspectives and consequences into account is a good starting point. It is easy to make the mistake of only considering a problematic situation from a certain perspective and therefore disregarding potential consequences in other areas.

2. Check your information

What information do you have right now and what information do you need in order to make an informed decision? How can you bridge the gap? How reliable is the data you have and where does it come from? Does your organisation have access to data and analytics tools that can provide a new perspective? If you do not have it in-house, can you get the support or analysis externally?

3. Insights

Are you generating valuable insights to lay the foundation for better decisions? How do you connect the dots? What context are you putting the information in? It's important to keep in mind that the situations we're facing today are extreme and not necessarily the new normal. That doesn’t mean inaction is the way to go, but it is also crucial to maintain the long-term perspective of what to do when the circumstances stabilize again. Advanced analytics can support in providing actionable insights.

4. Action

Information should lead to action, otherwise you’re doing something wrong. If your insights are not actionable, the analysis may not be right. Sometimes more information can leave you feeling confused, but that is when data analytics and methods to interpret and present information can be useful.

5. Rear-view mirror

What do you see when looking in the rear-view mirror? Was the decision you took right? Have your received new information which should lead you to change the decision you made? If so, do that. When working in a data-driven way, the key is to continue to evaluate and measure success. What effects did the actions you took have on your business and performance? Feeding these insights into the loop are crucial for future decision-making and to improve the process.

At Cartina we help clients improve their decision-making processes. We do this by means of advanced analytics and digital transformation (e.g. with BI, AI, agile ways of working), information management, as well as understanding changes in customer drivers and behaviours to plan for future scenarios.

Do you want to discuss your plan to counter this crisis?

We’re here for you!

__________________________________________________________________________________________________

You can find more information about Factfulness and the 10 Rules of Thumb to keep your dramatic instincts in check here: Gapminder.org

January 14, 2020No Comments

Impact investment and responsible investment – what is it all about and when does it make sense?

Digitalisation has largely changed the conditions for doing business.

Some talk of a fourth industrial revolution that will redefine not only business but also how we live, work and relate to one another. It can easily be argued that a parallel, yet highly related trend, is the aspirations to build a more sustainable society, through more responsible business. And perhaps even more than that, business that not only settles with avoiding being part of the problem - but attempts to be part of the solution. It is within that context we should look at impact investments.

 

Is there a business in making a difference?

When we decided to half the size of our bags of maize seeds, we reached a new category of customers – smallholder farmers. You may call it impact investment, I call it business.

- CEO of seed company, Southern Africa

Those were the words of a CEO of a seed company in Southern Africa, that I spoke to a few years ago. You’ll find plenty of similar examples from emerging markets around the globe. It may be about doing good but the main driver is rather that poor people are also customers and if you sell enough you make a good profit.

This is crucial for the telecom industry in for example Africa and increasingly so also for the energy market where small solar panels are sold or leased out at an impressive pace. So, does investing in a mini-grid in Zambia or a wind-farm in Sweden make you an impact investor? Not necessarily.

There are plenty of definitions trying to grasp the meaning of impact investment.

Generally they refer to financial investments that generate a return in both financial and other dimensions. Those other dimensions can often be characterised as either Environmental, Social or Governance (ESG) related. Often impact investment is characterised by:

  1. An expectation of a financial return on investment (though it doesn’t always have to be at pair with market rate) as well as
  2. An expectation of the investment having a positive impact on society and/or the environment. Sometimes an ambition to measure the impact is added as a third characteristic.

Investing in a wind-farm becomes an impact assessment only – it can be argued - if the investor is prepared to accept a trade-off between ESG-impact and financial return. If an investment is done only on financial grounds and regardless of its impact on environment or society, it’s consequently not an impact investment. Which does not exclude, as the quote from the CEO of the seed company above illustrates, that it can have a hugely positive impact on planet and society.

Responsible investments can be said to differ from impact investment...

...in that the former focuses on reducing the negative impact of an investment, while the latter goes a step further by explicitly wanting to have a positive impact. Responsible investments are often about excluding e.g. weapon production, fossil fuels etc. (often called “value-based exclusion”). It may be assumed that most impact investments are also responsible investments, though in theory it doesn’t have to be that way.

When a responsible investment becomes enshrined in the business strategy of a company regardless of financial implications it may no longer make that much sense to distinguish it from impact investments. Some companies argue that

Is there a business in making a difference?

Whether we are obliged to by law or not, we see it as a necessity, or a hygiene factor if you wish, to behave responsible; to pay our labour a reasonable salary, to avoid virgin materials and so forth.

- CEO of medium sized Swedish company, interviewed during a market research study

Even though use of non-renewable resources would have increased profit, the company choose another route. A route they consider as a long-term sustainable route.

Is there a price premium associated with sustainability?

There are also plenty of companies and investors choosing an ESG route because they believe there is a price premium in sustainability. The issue of price premium is a little complicated though:

Academic and industry research strongly suggest, notwithstanding a selection of non-negative and contradictory results, that incorporating ESG metrics may increase risk-adjusted returns. Our results, however, would indicate that any benefit from incorporating ESG credentials into a portfolio is already captured by other well defined and known equity factors. An ESG-tilted process does not deliver higher risk-adjusted returns, since, once we remove the market cap and volatility bias, ESG as an equity factor has returns compatible with noise (t-statistics of less than 1)

- Breedt et al, The Journal of Investing

As the quote above illustrates ESG is, despite all the talk and a fair amount of research, still not considered a traditional factor in investments. This may be because there still isn’t any solid evidence that high ESG scoring in investment portfolios results in higher stock value. It doesn’t behave like other traditional factors such as value, size, volatility and quality.

There may be several reasons for the lack of strong correlation between sustainability and value but it should not automatically be assumed that ESG – or sustainable business – does not, under certain circumstances, yield higher returns and a higher stock value.  Looking at some of the research generated using the Sustainability Accountant Standard Board´s, (SASB) materiality index reveals some fairly solid evidence that ESG actually can generate material value. But: you need to know what to look for.

Some questions you should ask if you are interested in impact investment

So, if you are an investor wanting to apply an ESG approach, wanting to have a decent financial return on investment as well as an impact beyond profit the following set of questions may be a good start:

  1. What factors or parameters to look for in order to ensure a return and what kind of return are you expecting? This question is dependent on what time perspective you have, which - needless to say - also impacts risk and volatility.
  2. What kind of impact are you interested in? And how do you ensure you get “good value for money”, i.e. that your investment is efficient enough regarding the impact that you are expecting?
  3. How do you expect to measure your impact beyond financial profit?

Many investors are prepared to lower their expectations on their return slightly, if they also know that their investments have an impact on for example the sustainable development goals. This may partly be out of solidarity, but it sometimes also stems from a belief that impact investments also contributes to the betterment of the world, including the stock market. An expectation that their investment may actually be rational in the long run. This is only true, however, as long as the investment also gives a financial return.

Very few people are prepared to lose money on their investments; then it is charity, not sustainability.


This article is written by David Wiking

If you want to know more about impact investment and surrounding areas, please feel free to contact David at:

david.wiking@cartina.se or +46 73 442 74 72

Profile photo for david.wiking


 If you want to know more about Cartina and get in touch with our sustainability experts, do not hesitate to contact us. Reach out through the button below and we can initiate a conversation.

Contact us


Shouldn't more people read this post? Don't forget to share!

[Sassy_Social_Share]

June 5, 2019Comments are off for this post.

Den digitala tillväxtmodellen – Cartina online growth model

 

I detta blogginlägg går vi igenom denna nya modell/ramverk för digitalt driven tillväxt som jag nu hoppas kunna förfina ytterligare med hjälp av dig och andra experter!

 

Att det står just DIGITAL tillväxt är för att metoderna främst fokuserar på vad man kan göra digitalt för att möjliggöra tillväxt. Många idéer kommer från hur man optimalt kan jobba med detta för SaaS bolag och mycket inspiration kommer från startups. Mycket går att applicera för många andra branscher och affärsmodeller men den kommer inte passa för precis alla bolag. T.ex. för bolag som säljer stora komplexa affärer så kommer säljare ha en större andel av det som för andra bolag går att automatisera/digitalisera.

 

Låt oss gå igenom de olika delarna i modellen och vad som menas med respektive:

 

ANALYSERA:

  • För att kunna arbeta effektivt med sin tillväxt så behöver man först få bra koll på sina viktigaste målgrupper genom att skapa empathy maps, personas och göra kundresekartläggning (customer journey maps).
  • Ytterligare jobb i detta steg är att göra sökordsanalys samt konkurrensanalys för att veta vilket innehåll som organisationen har störst chans att nå ut till målgrupperna med.
  • Syftet är inte endast för att stötta innehåll och kommunikation utan även för att veta vad som ska förädlas i produkten/tjänsten
  • Observera att detta inte endast är ett initialt jobb, alla insatser som görs ska mätas, analyseras och sen agera på det. Använd helst en process för "rapid experimentation"
  • För mer storskalig tillväxt blir det alltmer viktigt att följa upp på mätetalen i de olika stegen för att se vart man behöver lägga nästkommande growth experiment på.

 

ATTRAHERA:

  • För att växa behöver man först få nya potentiella kunder att uppmärksamma din organisation och komma till din hemsida eller någon annan stans där du har en möjlighet att börja bearbeta dem så de går framåt i sin köpresa.
  • Detta steg handlar om att skapa innehåll som passar för att fånga intresse i ett första läge
  • Det handlar även om att hitta sätt att nå ut med innehållet till sina målgrupper utanför sin egen hemsida, ed. och få dem till att vilja veta mer.
  • Det kan också innebära att "hacka" andras befintliga nätverk (som t.ex. AirBnB med Craigslist)

 

BEARBETA:

  • Starten på denna fas är att försöka få tillräcklig information om din potentiella kund så att du kan fortsätta bearbeta den personen.
  • Anpassa det innehåll eller den landningssida personen först besöker för att få personen att fortsätta läsa eller lämna ifrån sig information så att vi kan fortsätta bearbeta även efter att personen lämnat sidan.
  • Målet med denna fas är att med anpassat innehåll göra personen mottaglig för den slutliga bearbetningen som leder till ett köpbeslut.

 

KONVERTERA:

  • Konvertering kan ske i alla möjliga steg i en kundresa (s.k. mikrokonvertering), men här menas att konvertera till en betalande kund.
  • I den digitala tillväxtmodellen går detta steg att automatisera utan faktisk inblandning av säljare genom t.ex. begränsade erbjudanden, visa på produktens/tjänstens fördelar,  erbjuda olika betalningsalternativ, instegserbjudande, mm
  • Men för vissa produkter och tjänster så kan det här krävas stöttning av en säljare för att få kunden att fatta det där sista beslutet.

 

GLÄDJA:

  • När kunden väl gjort sitt första köp är fokus på att göra kunden nöjd med sitt köp.
  • Här innefattas onboarding för att se till att kunden faktiskt börjar använda det hen köpt genom att så snabbt som möjligt få personen till det magiska Aha moment.
  • Se till att kundens upplevelse blir så pass bra att hen vill bli återkommande kund samt förhoppningsvis även villig att tipsa sitt nätverk om att också bli kunder

 

FÖRÄDLA:

  • Oavsett vilka marknadsföringsaktiviteter man gör så hjälper inte det om organisationen inte har produkter/tjänster som resonerar med målgruppen.
  • Detta steg handlar om att utveckla/ändra sina produkter/tjänster på ett agilt sätt baserat på lärdomar från kundens hela resa. I många fall kan en produkt/tjänst anpassas för att stötta tillväxten. Det kan även leda till framtagande av helt nya produkter/tjänster.
  • I vissa fall kan även affärsmodellen behöva ändras för att optimera tillväxten

Digital tillväxtmodell - Cartina online growth model

 

 

Nyckelfrågor som driver tillväxt

Denna modell hjälper oss att hitta de nyckelfrågor som driver tillväxt:

  1. Hur kan vi lära oss mer om våra framtida kunder? (ANALYSERA)
  2. Hur kan vi attrahera flera av dem? (ATTRAHERA)
  3. Hur kan vi få fler att bli mer intresserade? (BEARBETA)
  4. Hur kan vi få fler att köpa? (KONVERTERA)
  5. Hur kan vi få fler att bli återkommande kunder? (GLÄDJA)
  6. Hur kan vi få fler att köpa mer? (GLÄDJA)
  7. Hur kan vi få fler att rekommendera vidare? (GLÄDJA)
  8. Hur kan vi förbättra våra produkter/tjänster efter vad som faktiskt leder till mer tillväxt? (FÖRÄDLA)

Bakgrund och resonemang kring varför inte befintliga modeller/trattar funkade:

Det började med att jag skulle försöka skapa mig en bild av hur allt inom digital marknadsföring hänger ihop och försöka väva in growth hacking i detta. Ganska snart stod det klart att jag behöver en grundläggande modell som jag kan knyta an alla begrepp och taktiker till.

 

En första tanke var att använda en klassisk tratt ungefär som AIDA fast med den modifieringen som Kntnt också använder (AIDCAS). Dock upplevde jag att det blev lite ojämnt med vad man kan göra på respektive steg, speciellt Interest, Desire och Confidence upplevde jag kunde sammanfattas i nån bearbetningsfas för att få den potentiella kunden redo för köpsteget.

 

En annan idé som jag började använda var den som är mest använd inom Growth hacking och för startups; Product Marketing for Pirates: AARRR (Aquisition, Activation, Retention, Referral, Revenue).

AARRR

Även om den inte ursprungligen ritades upp som en tratt så finns det nu massor av bilder där begreppen har lagts in i en tratt. Den kändes bra för att det var olika saker man behöver göra för respektive steg och det var hyfsat jämnt fördelat. Dock så upplever jag att den inte riktigt hänger ihop i ett tydligt flöde annat än för klassiska startups som har en SaaS (Software as a Service) modell.

 

Många lyfter gärna upp kundens köpresa som en cirkulär process, t.ex. McKinsey Consumer decision journey, eller Altimeter's Dynamic Customer Journey

Altimeter's dynamic customer journey

Men vad jag tycker alla missar är det förberedande jobb som behöver göras i att förstå ens målgrupper genom att göra Personas och därefter göra så kallade Customer journey maps. Sökordsanalys (keyword research) och konkurrentanalys är andra förberedande steg som behöver tas innan man aktivt kan börja jobba med att få in en kund i kundresan.

 

Den modell som tilltalat mig mest är den Inbound methodology som Hubspot använder. Den kan även illustreras som en sales funnel.

HubSpot - Inbound Methodology

I den modell jag tagit fram har jag i stort sett tagit vad som ingår i Hubspots modell men justerat vad som ingår i deras CONVERT steg till att inkludera mer än att bara fånga kontaktuppgifter. Jag har alltså tagit med delar av det som Hubspot har i sitt CLOSE steg som handlar om Lead nurturing och lagt det i steget i BEARBETA. I det steg som jag kallar KONVERTERA så har jag lagt fokus på det som behöver göras för att ta ett qualified lead till att bli betalande kund.

 

Egentligen är jag inte helt nöjd med att kalla steget KONVERTERA eftersom en konvertering kan ju ske i alla möjliga sammanhang (s.k. mikrokonvertering) och Conversionista som är experter på området beskriver det så här:

Konvertering handlar om att få dina besökare att göra det du vill att de ska göra på din sajt, landningssida eller app.

Jag tycker begreppet kan användas något bredare och även inkludera den konvertering som sker utanför din sida, t.ex. att få en okänd person att klicka på en extern länk som leder till din sida. Här är några andra exempel:

  • att få besökaren att ta valfri action efter att ha besökt din sida (kan vara att dela på sociala nätverk, skriva upp sin email, klicka vidare till nästa sida, mm)
  • att få besökaren att signa upp för en "trial"
  • att få kunden att tipsa om din produkt/tjänst

Nåväl, har ni något lämpligt svenskt ord som beskriver vad man gör för att få en person att bli betalande kund så säg till!

 

Men även om jag har med hela tratten som Hubspot beskrivit och lägger till de förberedande stegen som att ta fram personas, göra Customer journey mapping, sökordsanalys och konkurrentanalys, så var det fortfarande något som saknades för att få en mer heltäckande modell som företag kan använda för att växa kundbasen. Det spelar ju egentligen ingen roll hur väl du gör förberedelser och optimerar alla steg i tratten om du inte har produkter/tjänster som resonerar med dina målgrupper.

 

Visst man kan uppnå bra resultat med bra marknadsföring, sälj och kundservice trots en halvbra produkt/tjänst. Men för att verkligen få fart på tillväxten måste man se till att förädla sina produkter/tjänster för att bättre kunna optimera respektive steg i tratten. I vissa fall kan det även vara motiverat att ändra på affärsmodellen om det skulle leda till bättre tillväxt. Eller bygga helt nya produkter/tjänster som har större potential.

 

De aspekter som ett agilt growth team är intresserade av på en daglig operationell basis täcks på ett mycket bra sätt av The Lean Growth Canvas. Så här beskriver Erik det:

It is meant to be used as you would use a scrum board or a Business Model Canvas: up on the wall where everyone in the team can see it and with post-it notes or whiteboard pens for making quick edits and changes.

Men modellen jag ville få fram behövde vara tydligare på en övergripande nivå och tillåta att man kan detaljera varje steg med en mängd best practise.

 

Disclaimers

  • Det ska nämnas att även om detta är en modell som kan tydas som att en person rör sig linjärt genom tratten, så är det inte menat så. En person kan gå in, ur och sen tillbaka i flera av stegen. Personen kan även göra detta i flera olika kanaler.
  • Man kan även gå igenom en miniversion av tratten, t.ex. i kundresan för att ladda ner en pdf så kan man ju anse att man bearbetar besökaren att vilja konvertera och lämna sin emailadress som pris för att få ladda ner en infospäckad pdf. Därefter vill man med innehållet i PDF'en glädja kunden så mycket att hen väljer att dela länken till flera. Ännu tydligare exempel är kanske om företaget erbjuder den potentiella kunden att prova tjänsten gratis i en period, då kommer ju hela tratten gå att applicera på det fallet även om en person som använder en gratis provversion borde räknas in i BEARBETA eller KONVERTERA-steget och inte i GLÄDJA.
  • Även om det finns ett steg som heter ANALYSERA och ett som heter FÖRÄDLA som ligger innan tratten så är tanken att man kontinuerligt och i alla steg av tratten ska ha ett agilt arbetssätt där man kontinuerligt brainstormar, prioriterar, testar, analyserar, implementerar.
  • Denna modell tar upp de flesta saker som kan påverkas för att öka ett företags tillväxt av kunder för befintliga produkter/tjänster. Modellen kan även användas för att utvärdera och testa om nya produkter/tjänster har tillväxtpotential.
  • Det finns några ytterligare saker ett företag kan göra för att förbättra sin tillväxt men som inte tas upp i denna modell. Detta är t.ex. uppköp och samarbeten eller att nå ut till helt nya kundgrupper genom att ta fram nya/anpassade produkter/tjänster.
  • Se även fler källor för tillväxt i kapitlet nedan som listar de 19 traction channels från boken Traction av Gabriel Weinberg och Justin Mares

Traction channels

  1. Genom bloggar/influencers
  2. Publicitet/PR
  3. Okonventionell PR (ingår ej)
  4. Sökmotormarknadsföring
  5. Onlineannonsering
  6. Offlineannonsering (ingår ej)
  7. Sökmotoroptimering
  8. Innehållsmarknadsföring (läs mer i denna guide kring content marketing)
  9. Emailmarknadsföring
  10. Viral marknadsföring
  11. Utveckla gratisverktyg
  12. Affärssamarbeten (ingår delvis)
  13. Sälj (ingår delvis)
  14. Affiliatemarknadsföring
  15. Existerande plattformar
  16. Mässor (ingår ej)
  17. Offline events (ingår ej)
  18. Talaruppdrag (ingår ej)
  19. Bygga communities

 

Detta är det första inlägget i en serie som kommer gå igenom alla olika aspekter av denna modell; termer och begrepp, digitala verktyg, KPI'er för respektive steg, hur modellen passar in på olika typer av företag, mer detaljerade inlägg för respektive steg i tratten. Det kommer separata blogginlägg med detaljerad genomgång av begrepp såsom SEO, Content marketing, Conversion Rate Optimization, Email marketing, Keyword research, Personas, Customer journey mapping, mm.

 

Är du intresserad av att veta mer om vad man kan göra i respektive del samt hur man gör det och hur man mäter och följer upp eller vilka smarta digitala verktyg som kan underlätta så hör av dig så berättar vi mer! Vi har tagit fram en Growth assessment som du kan få göra tillsammans med oss och som ger dig bra insikter i vad du gör rätt och var det finns brister samt ger dig en lista med konkreta rekommendationer. Intresserad?
Skicka epost

 

May 23, 2019No Comments

Reframing Formats – Trend #6 of 6 from SXSW 2019


In 2018...

We were seeing a lot of immersive technologies such as VR & AR and how it can be used to enhance reality.

In 2019...

We talked about different formats and new augmented experiences – signalling that our digital behavior has matured.


Curation & limitation

Having reached a certain level of digital maturity, living in, and being used to, an era of connectivity and infinite choice, consumers and recipients are changing expectations and becoming more receptive to information in new formats.

In order to cut through the noise and earn trust in distrustful times, selection becomes imperative. Too many choices can feel overwhelming, and the value of what we consume tend to decrease – meaning instead that the value of curation skyrockets. By communicating scarcity, you can give the perception of a more well-selected content and, consequently, quality.

Gwyneth Paltrow spoke about how the customer is the core of her company goop, whose whole business basically is based on curation over many domains. Building fewer things, but better, is a key to success.

Founders of the new entertainment platform Quibi argue that we are often handed music, movies and TV-shows in a selected, curated way – but for information, we still have to search and are presented an incomprehensible mass of options. Something that they are determined to change.

Historically we look for finite. Our brains are programmed to look for things that end.

- Neil Pasricha, author, entrepreneur, public speaker

Timing is everything

While traditional novels come in chapters of 20-40 pages (a 30-minute read), the “Da Vinci Code” was unique in its style of five-page chapters (a 5-minute read). The author’s rationale was that people have time constraints, and so presented them with the book in a way they preferred to consume it.

By targeting the consumer within new time frames, in more convenient ways, and meeting them where you previously have not can be beneficial. Quibi targets users between “7 and 7” (note: 7 am and 7 pm) with an enhanced video experience on mobile, speaking to consumers in a new domain, in a new way.

This can also be powerful through audio, as that only requires the attention of one of our senses as opposed to video. Podcast producer Gimlet created a toothbrushing experience for children, taking advantage of the universal 2-minute activity by providing an ongoing series of episodes through Alexa. Thereby finding a unique way into their consumers’ every day.


Curated content in a non-traditional time slot

Meg Whitman and Jeffrey Katzenberg introducted Quibi, which is targeting their customers between 7 and 7 with a highly curated content video content, meeting their users at a new timeslot with a new product


The power of storytelling

Storytelling is a powerful tool to make us believe. Rohit Bhargava shared some examples of how greatly executed storytelling has been used as powerful marketing tools, for which audio and voice are relevant formats. With the rise in voice-activated devices and digital assistant, we are in the second golden age of audio. Just as most brands have elaborate visual style guides for how they act and communicate, there is now a need for brands to develop audio style guides.

This also becomes increasingly important with the evolution of podcasts, where more were created in 2018 than any year before, signaling a potential for the market of voice-based marketing. For a successful voice and storytelling experience companies should keep in mind why people like to listen; they like being told a story, learn something new and the idea of companionship (people simply want someone to hang out with).

As a storyteller you have a powerful way to reach consumers, marketing and advertising needs to utilize this. As a listener, you are cocreating the experience by hearing the sender’s voice allowing you to imagine them in your head.

Ads should not feel like ads but should instead add to the experience which is why brands need to speak in a voice that relates to consumers and puts them in a desirable state.

Blurred lines

Dawn Ostroff, Chief Content Officer of Spotify, say that over time, 20% of what is available on Spotify will be non-music content, and that today those who listen to podcasts spend twice as much time on the platform. Spotify recently acquired Anchor, a podcast-creating tool, and Gimlet, a podcast producer, which allows for creation and curation, meaning that more people than ever before can create, monetize on and discover relevant podcasts – creating a transformational entertainment experience.

Quibi aims to work together with all the major production companies to develop content and thus not compete with other kind of streaming services, combining formats, genres and segments.

The DJ Marshmello hosted the first ever live virtual concert inside the video game Fortnite, which resulted in more than 10 million spectators and a huge demand for his merchandise and music.

The above examples illustrate how breaking traditional formats can allow a brand to reach existing customers more effectively and also to find new, untapped, customer segments. The success of such campaigns signals a new level of digital maturity – where users are more receptible to new and converging formats, and companies can move between online and offline in new ways. This creates a new playing field for consumer-interactions.


Creating a new scene

Marshmello/YouTube.com

DJ Marsmello held a live concert in the video game Fortnite, drawing more than 10 million attendees


[thrive_lead_lock id='2345']Hidden Content[/thrive_lead_lock]


SXSW is one of the biggest digital conferences in the world, and a global meeting place for the world’s most innovative technology companies and people interested in how disruption can transform their business and everyday lives. The event takes place during during 10 days each year and this year Cartina had the chance to be part of it.

This series consists of 6 global mega trends that business leaders, experts, innovators and disruptors talked about during the days in Austin.

Visst borde fler läsa detta? Glöm inte att dela!
[Sassy_Social_Share]

CartinaLogo_small

Cartina has since 2013 helped both multinationals and startups translate digital opportunities into lasting and profitable business. We have since the start mainly worked with management services but are now expanding our offering with tech & design.

With a desire to develop oneself, clients and colleagues, our team of several senior digital experts take pride in delivering sustainable solutions that matters for our clients and society. 
Cartina is founded and owned by the investment firm Acacia Asset Management AB together with partners in the firm.


Contact

Cartina
Hamngatan 15, SE-111 47
Stockholm, Sweden
Tel: +46 (0)8 703 25 10
info@cartina.se