Daily Archives: September 6, 2021

A picture of the difficulties faced by many CMOs was painted by Gartners team in the opening keynote to the analyst firms Marketing Symposium in September.

The first remarks were bleak: Marketing was losing its seat at the most important table at a time when companies are telling Gartner they are eager to accelerate digital plans.

Marketing budgets are facing steep cuts, steeper than any in the past decade. Were going to have to do more with less, said Gartner VP research, Mike McGuire. Gartners graph showed marketing budgets as percentage of total revenue dropping from 12.1 per cent in 2016 to 6.4 per cent today and trending down.

That task is even more challenging thanks to harder-to-engage consumers, according to Gartner senior director, research and advisory, Carlos Guerrero.

People are confused and fatigued. Social disruptions are making it harder than ever to protect brands, not just from the outside but from the inside, too, he said.

Yet the way out of these troubles relies on existing marketing expertise, not a bigger budget. Gartner advised CMOs to step back and rethink the marketing and social landscape and to use their superpower - the ability to establish vital connections - to assert their role as chief stewards of vital connections that will foster resilience and speed growth.

Marketers need to re-establish and fortify relationships with employees, business partners and of course customers. Because these connections will make or break success, said Gartner VP analyst, research and advisory, Dorian Cundick.

The first connection to work on is between an organisation and its employees. Marketers, Cundick said, have been neglecting their colleagues, spending all their time and energy on customers when an organisations vitality is grounded in its own people.

Employees have always been a potent source of brand advocacy and neglecting them is a missed opportunity. On the other hand, disaffected employees can be an explosive threat to an organisation. Cundick pointed to Gartner research showing 36 per cent of employees have spoken out against their employers in the past year as pandemic, uncertainty, recession, political polarisation and natural disasters have rained down.

We know leaders are on the alert because theyve given it a line item: 30 per cent of crisis communications budgets are earmarked for employee activism, Cundick continued. The degree to which we cultivate those employee connections can determine whether we should be investing our resources in nurturing a thriving brand or are staving off threats from within.

Weve been holding the line on simmering brushfires of extreme fatigue and surging social activism. But one gust of ill-wind can turn them into a fully-fledged wildfire that ravages a brand.

Read more: How HR and marketing collaboration is creating a customer-centric culture at Hoyts

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Organisational changes averaging almost 40 each year add to a sense of employees being overwhelmed by things beyond their control. This compounds the ripple-effects of world events, Gartner said.

To alleviate problems caused by change fatigue and increase the likelihood that employee activism will manifest as support instead of sabotage, businesses and marketers need to build employee capability. The Gartner team said organisations usually do a good job getting employee commitment to change by sharing rationale and encouraging team players.

Thats good for T-shirts but under-delivers on what we care about most helping our people do a great job, said Cundick.

Yet its building teams capabilities that triples the lift on performance. To ameliorate the disorientation caused by multiple changes, Cundick advised organisations to get very specific about how change affects an employees role and responsibilities and ensure they have access to tools and information needed to do their jobs.

Confidence is even more important, according to Cundick. Thats another opportunity for HR, communications and marketing to help teams acquire and master new skills to learn from colleagues, as well as access psychological and emotional support to be their best.

When we do this well, it makes for engaged employees who are less likely to suffer the kind of fatigue-fuelled stress that can hinder productivity or inspire backlash against their organisation, Cundick said.

Gartner research shows employees are watching organisations and are ready to act, even if action bites the hand that feeds them.

Before applying for a job, more than two in five people check if a company supports causes they care about. More than half are willing to boycott a firm that doesnt do social good. More than one third are willing to advocate against a company that exploits public sentiment as well as to personally boycott it.

On the other hand, if meaningful connections can be made between employees and their organisation, a strong connection raises the likelihood of employee advocacy from 9 per cent to 46 per cent.

Employees are feeling overwhelmed by big things that are hard to fix it's making them volatile in a way weve not seen before. Instead, we should harness that energy for mutual benefit, said Cundick. If we can offer something of value to employees here, we can forge the kind of connections that directly feed and sustain the business. Seizing this moment of social impact can make connection stronger.

Marketers control over corporate image and content enables their influence here. Gartner suggested one way to create strong connections is by using an organisations resources to meaningfully tackle big things individual employees cant.

CMOs, or what Gartner likes to call chief connection officers, can help organisations offer employees valuable empowerment. This entails marketers shifting their emphasis from trumpeting their brands authentic commitment to the world to organising personal fulfilment, enabling audiences including employees to be part of the good being done together and tell their own stories of making the world a little better.

McGuire illustrated the point with Operation Possible at Trane Technologies, a firm which brands itself as a climate and sustainability leader. Through Operation Possible, Trane invites employees to share big economic social or environmental challenges it calls absurdities that really should be solved or stopped. Employees are asked to submit absurdities and/or solutions that draw on Tranes operational expertise.

One absurdity was food waste. Following employee suggestions, Trane is considering using its technologies to dry fruit and veg to extend viability and slash waste.

But not all connections can be forged by CMOs alone. According to one Gartner survey, 90 per cent of board directors agreed Covid increased the need for cross-functional collaborations.

Gartners view is marketers are ideally positioned to organise such collaborations because they are the voice of the customer, have the digital expertise to gather and interpret data and can see how work done across the organisation contributes to customer experience or detracts from it.

However, cross-functional collaboration is hard work for marketers: More than one third have said its their most challenging activity. Gartner reminded the audience collaborations dont cost money and advised building valuable connections over service-level and transactional relationships marketers have often had in the past.

Investing in marketing expertise and efficiencies makes us better marketers but hasnt built better connections. Were focused on showcasing our value and contributions to the bottom line but thats an inherently one-sided relationship. We need to shift our focus from us as marketers to us and our partners, said McGuire.

He gave the example of a healthcare company whose marketing team consults and gathers information from colleagues across the business, then identifies opportunities. They applied marketing knowledge such as the optimal balance between volume and margin, and which tactics would best change customer behaviours.

This consultative process created a new insight into the incremental value of customer actions to overall business, McGuire said.

Marketing leaders know how customer behaviour should be leveraged to improve sales. This approach elevated marketing from being a fulfilment engine for business partner requests to being an organisational maestro. The VP marketing of this company has seen a significant difference in the types of conversations throughout the business, particularly with product and finance.

Collaboration that goes beyond simple co-branding to include marketing, product designers and influencers can also create a unique product. McGuire illustrated his point on external partnerships with Sony Playstations many collaborations, including one with Nike and NBA star, Paul George. This resulted in multiple co-branded shoes inspired by Playstations aesthetics.

More unusual is Sonys partnership with Mercedes Benz to release Dreams and Mercedes, a platform that inspires gamers to imagine a vision of the future.

This isnt an approach thats only available to big brands, McGuire said. Despite shrinking budgets, marketers can move to a two-way flow of information with internal partners and find like-minded external partners to create an ecosystem of brands that can grow and become stronger together.

We know building these vital connections requires a fundamental shift in mindset from What can I achieve? to What can we achieve together?. The shift to we is also relevant to your customers.

As for customers, Gartners data shows brand loyalty and affinity in a long decline. Guerrero asked whether gathering data has seen marketers focus too much on who and what, losing sight of why a customer chooses to connect or disconnect with a brand.

Customers expect that you know their names, shopping habits and to get them right but it doesnt create a real, organic connection. To do that you need to use the data to find meaningful motivators that help you build strong connections with customers, he said.

A big part of doing this right is listening. Although youve heard that before, marketers continue to focus on delivering a message rather than engaging in a dialogue. Delivering a message is one-way, whereas dialogue involves both parties listening to each other. That can build meaningful interaction, but it also has potential to build more robust brands.

In a recent Gartner survey of CMO priorities, 95 per cent said their brands should take a position on issues their customer cares about. Doing so means more than building messages about pride month or social media posts about equality, said Guerrero.

It means using your understanding of the whole customer and your influence in the enterprise to ensure that meaningful action is taken, he said.

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Gartner: CMOs need to step up their company connection efforts - CMO

Eight major banks of India have joined the account aggregator framework that has been put together under supervision of the Reserve Bank of India (RBI) to enable the easy and safe sharing of information between customers and banks so as to facilitate more efficient delivery of banking and financial services. Heres all you need to know about account aggregators, which are said to be ready to to hit the fintech industry like a tornado" and potentially transform how people engage with the world of finance.

While seeking a loan, or applying for an insurance policy, a customer usually has to submit reams of documents, a lot of them pertaining to their financial affairs. To gather such documents either involves multiple trips to the bank or financial advisers or, in the age of internet banking, logging in to ones online banking portal. Even so, it remains a cumbersome process. But no more. An account aggregator can now give you the power to share data easily between different financial service providers, by consolidating all your data in one place and providing a single digital framework to share it in real-time".

According to the DigiSahamati Foundation, a not-for-profit collective of the account aggregator ecosystem", the account aggregator system is a safe, consent-based framework giving you control over your data and quicker access to financial services". That means, it said, no more running around collecting documents to open accounts, file for taxes, get loans or access other financial products".

An account aggregator represents a new category of non-banking financial company (NBFC) that has been cleared by the RBI to manage consent for financial data sharing".

An account aggregator consolidates financial information of a customer held with different financial entities, spread across financial sector regulators adopting different IT systems and interfaces," RBI says, adding that its role is retrieving or collecting information of its customer pertaining to such financial assets, as may be specified by the bank from time to time".

To simplify, an account aggregator is a portal or app through which a customer can regulate her consent for the sharing of her financial information. The account aggregator network has three main pillars financial information provider (FIP), financial information user (FIU) and tech service provider, which is to say, the account aggregator itself.

FIPs are organisations like banks, mutual funds, pension funds, etc. that are a source of personal or business data that FIUs can access. FIUs, then, are organisations like lending agencies, NBFCs, etc., who may require access to financial data. Thus, the same organisations can become FIPs and FIUs as well. The data they require is to be accessed via account aggregators, which collaborate with FIUs and FIPs to deliver AA products and services" like SME Scorecards, Early Warning monitors, Digital Lending & Onboarding, Product Design of apps and more".

DigiSahmati said that the account aggregator framework was created through an inter-regulatory decision by RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA) through Financial Stability and Development Council (FSDC)".

RBI will be issuing licences for account aggregators and there can be several such players, or apps, to cater to different users". Individuals and enterprises can both use account aggregators with the network being seen to have

special utility in terms of enabling small businesses to access loans.

The category to which an account aggregator belongs is known as Data Access Fiduciary (DAF), the creation of which has been facilitated by the Data Empowerment and Protection Architecture, or DEPA. DEPA seeks to empower every Indian with control over their data" by creating frameworks and standards for the sharing of data.

With a view to unleashing the full potential of digital mechanisms in financial services, DEPA has been devised to serve as the final layer of India Stack, a series of digital public goods designed to enable private market innovators to introduce improved digital services for India across a range of sectors". The other layers of India Stack include Aadhaar, the Unified Payments Interface, DigiLocker, and eSign.

DigiSahmati says that these DAFs are data blind and will not see user data themselves; rather they will serve as a conduit for encrypted data flows".

In the initial stages, account aggregators will provide only asset-based data like bank accounts, deposits, mutual funds, insurance policies, pension funds, etc. The account aggregator app or desktop portal will have access to your account details, but such information will be shared in a decrypted form and RBI says that there shall be adequate safeguards built in its IT systems to ensure that it is protected against unauthorised access, alteration, destruction, disclosure or dissemination of records and data". Further, the data will not reside with the account aggregator.

One would have to downlowad a mobile phone or desktop app to be able to use an account aggregator service. After downloading such an app an user would need to on-board their bank details via the bank FIP which she can thereafter share with an FIU. This AA app shows the user all the consents given, revoked consents and a log of all data requests made by the FIU."

Four account aggregator apps that have received operational licences from RBI: Finvu, OneMoney, CAMS Finserv, and NESL, while in-principle nods have been given to PhonePe, Perfios, and Yodlee.

Now, eight banks SBI, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, and Federal Bank have joined the network as FIPs and FIUs.

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EXPLAINED: How Account Aggregators Will Transform Process Of Getting Loans, Sharing Bank Data - News18

Mr Abhilash Gupta and Mrs Indu Gupta. Pic: Nick Linnett

Leicester residents have celebrated 30 years working with a local housing association.

Around 710 residents live in co-operative housing managed by the Bede Island Road-based PA Housing. They work together to meet the community's affordable and sustainable housing needs.

The homes in the co-ops, 119 at Ross Walk and 117 at Maynard, are jointly owned by residents, meaning that each individual has a vote on decisions that affect their homes and neighbourhoods.

Kishor Jadavji, Chair of Ross Walk co-op, said: "Ross Walk Housing Cooperative has shared a fantastic relationship with PA Housing over 30 years.

"The staff are very professional and hardworking. PA Housing provides a great service and continuously seek ways of maintaining high standards for our tenant members."

The co-ops were set up over 40 years ago to prevent housing demolition and responded to the needs of Asian communities leaving East Africa to settle in the East Midlands.

Thirty years ago, PA Housing took over the management of buildings and services at the co-ops in Maynard Road and Ross Walk.

Mr Abhilash Gupta is a resident of the Ross Walk co-op, who has lived in his home for 39 years.

He said: "They say, 'necessity is the mother of invention', and that is what you see in the formation of these co-ops and the management.

When PA took over as managing agent, Maynard Co-operative Housing Association struggled financially, its housing stock was in poor condition, and committee meetings were not well attended.

Alam Navsa became Chair of the co-op in 1995, and, working with PA, the provider has improved.

Imtiaz Vohra, Co-ops Service Manager at PA Housing, said: "The co-ops are important to PA Housing because they are an alternative way of living that is personal and tailored to the communities.

"The history of these particular co-ops sees BME communities seeking safe spaces and finding empowerment to lead their own living arrangements, which chimes with the values of our organisation and colleagues."

"You can tell in the way people take care of the neighbourhood, and everybody wants to move in here now!"

Mrs Fatima Dakri said: "PA Housing makes the co-op's annual general meeting an event everyone wants to attend - there is real transparency in where the money that goes into the co-op is spent.

"It is something you do not get when you live in a council flat as we did before then it is just a house."

Over the last three decades, PA Housing has worked with the co-ops on financial management, home repairs and community safety.

The housing association said it continues to adapt its work with the co-ops and hopes to return to face-to-face events soon, starting with a celebration for its 30th anniversary.

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Leicester residents celebrate 30-year anniversary with local housing association - In Your Area