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1 Elevating the human experience using cloud

2 Introduction For marketers focused on elevating the human experience, cloud-enabled capabilities can be a powerful tool in the war for relevancy. Humans are 7x more likely to purchase from a brand that evokes a positive emotional experience, 8x more likely to trust it, and 15x more likely to recommend it. 1 Companies that focus on human experiences including customers, workforce, and partners are 2x as likely to outperform their peers in revenue growth. 2

3 As the pace of digital innovation continues to accelerate, positive human connections and experiences are becoming more important than ever to a brand s success. For marketers, the game has changed, and to build a sustainable competitive advantage, the traditional focus on building awareness and capturing attention must now shift to creating relevancy and delivering genuine emotional connections. Great experiences build connections. Strong connections create loyalty. Loyalty drives business results. Many successful CMOs realize that existing tools and tactics are inadequate for connecting with consumers whose behaviors and preferences are increasingly defined by immediacy and convenience. Cloud technology and cloud-based capabilities can dramatically enhance marketing efforts by: Shortening response times Speeding up product development Generating deeper insights Powering dynamic decision-making Allowing marketers to engage more effectively and efficiently Cloud technology is catalyst that can make organizations faster and better equipped to keep up with the pace of change. Eighty-seven percent of enterprises experience business acceleration after embracing cloud technology, and 41 percent of companies were able to directly attribute business growth to their use of cloud services. 2 3

4 Marketers imperatives Today, humans experience the world in physical and digital realities simultaneously without any concept of channels, which creates three imperatives that marketing executives must address: First, marketers must create differentiated human experiences while keeping up with the increasingly mobile habits of customers, partners, and other key stakeholders in your ecosystem. To create seamless experiences, businesses need to understand preferences and patterns of behavior with greater speed and depth than at any time before. Technologies like predictive analytics, machine learning, natural language processing, and other forms of artificial intelligence can enable that depth and speed. Second, you must engage stakeholders efficiently and cost-effectively in the channel and manner they prefer. Touchpoints continue to proliferate, and new technologies like natural language voice technology are creating exciting new opportunities to engage with customers and capture wallet share. However, as touchpoints grow, there is not a 1:1 linear growth in revenue, which means that marketers have to be smart about how they enable these channels and make sure that they are doing so in an efficient manner. Third, you must align your marketing activities and investments in this new digital world with other parts of your organization. The technologies that can enable marketers to fulfill their mandate to deliver great experiences have broad implications across the brand and can touch all stakeholders, including partners, suppliers, and employees. Ensuring that the technology investments that marketers need to delight customers are leveraged broadly across the organization can ensure maximum return and a more cohesive, consistent brand experience. The key to all three of these imperatives is a robust foundation of cloud-based capabilities. The tools and advantages of cloud can result in a better, more human experience. Using the cloud can enable you to innovate and scale faster and create personalized, frictionless experiences elevating the human experience across the company s ecosystem. 4

5 Understanding the cloud At the heart of elevating the human experience is humans. The cloud connects data, services, and technology to create seamless experiences for partners, employees. Cloudenabled means using a distributed network of computing resources which store, manage, and process data remotely, as well as provide application services, rather than doing so on local, or on-premise, servers. Google, Microsoft, Amazon, and other cloud providers have millions of cloud servers with the latest software ready on demand. 3 New features and capabilities are released daily including advanced technologies like machine learning, predictive analytics, and natural language processing that companies can turn on and test in a cost-effective manner before deploying live. Using best practices and sophisticated security features and tools, marketers can have the peace of mind that the data stored in the cloud is safe and secure. The cloud s distributed nature typically provides storage at a much lower total cost of ownership than legacy on-premises alternatives. Despite the lower cost, cloud can deliver a high degree of business and technological flexibility, consistency, and access to cutting-edge capabilities and tools that can drive innovation. 4 Thanks to cloud technology, robust computing power and capabilities are available to organizations of all sizes, not just large enterprises with big budgets. Moreover, the cloud scales on demand. A seasonal business can flex its use of cloud to align with the peaks and troughs of its business. Creating seamless experiences for stakeholders requires seamless integration of a variety of different systems. Cloud facilitates common services and data and makes it easier for CIOs to connect disparate systems and data sources such as customer feedback channels, call center logs, social media sentiment analyses, CRM, and sales. 5

6 Delivering differentiated human experiences Taking a cloud-enabled evolutionary leap to a real-time relationship with customers, employees, and partners helps companies to create long-term competitive advantages. Respond faster Cloud technology helps organizations accomplish in minutes what used to take days. Companies can collect information cheaper and faster, and then use cloudenabled advanced analytics capabilities to get insights into human behavior. Cloud-based integration of third-party data can provide hotels with visibility into guest travel itineraries and allow them to take the appropriate action to deliver a great experience, such as holding the room, giving a complimentary drink upon arrival, or proactively offering to rebook the customer. I m checking out now. Those four simple words from a hotel guest can enable a cloud-based workflow automation: The front desk immediately sends the guest folio, housekeeping is notified the room needs servicing, and the guest s ground transportation of choice is notified and pickup scheduled. Cloud-based visual analytics can deliver automated real-time analysis of automobiles and aircraft. Cameras scan the exterior body and compare what it sees to reference images, automatically identifying damage like dents and scratches, as well as hazards like ice build-up on plane engines. Compress product development time Cloud technology helps organizations to compress time to innovation and, ultimately, time to value by facilitating rapid development, testing, and deployment to live production environments. A brand can feed client data into a cloud-based solution and quickly test a new product, service, or tool to see how it performs. What used to take up to a year can now be completed in a matter of weeks by leveraging the cloud, consuming less time and budget. This agility allows marketers to anticipate and respond to constantly changing consumer behaviors and preferences. The benefits of cloud in shortening the product development cycle is most pronounced in software development. The cloud can make the software development process more efficient so developers can focus on delivering enterprise value and not worry about infrastructure demands. In addition, cloud enables real-time collaboration, which can improve product quality. Collaborating cross-functionally real-time in a distributed environment where customizing and upgrading existing or installing new tools no longer interferes with developers ability to focus on the core product. Eliminate friction points more quickly. A brand continuously monitors customer use of its mobile ordering application. Automated alerts highlight areas in the application where users tend to abandon the ordering process or otherwise get stuck. UI/UX developers can hone in on those areas and create alternative designs that can be quickly tested. Data from A/B testing allows the designers to create a more frictionless experience that can then be easily rolled out to production. What used to take up to a year can now be completed in a matter of weeks by leveraging the cloud, consuming less time and budget. 6

7 Companies can use the vast capacity and dataprocessing power of cloud technology to understand their customer s needs, wants, and preferences and tailor experiences that are relevant. Generate better insights The cloud enables large, disparate data sets sourced from strategic partners or stored in different technology platforms, for example to be processed and analyzed quickly and efficiently. The cloud s flexibility helps make data sharing and by extension, analysis easier and faster than ever. Remove unavailable menu items. Sensors in a restaurant kitchen detect a pending failure in one of the restaurant s appliances (such as an ice cream machine). The cloud enables a seamless communication system wherein the manager is notified, a technician is automatically notified and scheduled, and the menu boards, website, and mobile app are updated to remove ice cream so customers don t try to order it and restaurant associates can adapt to deliver a better customer experience in real time. Minimize customer defection. Vehicle owners start considering their next purchase at various stages in the owner life cycle based on a myriad of factors, such as personal wealth, life stage, vehicle age and financing contract, vehicle condition, and net alternatives. Automakers and their captive finance subsidiaries can use cloud sensing techniques to monitor in-market and propensity behavior so they can react proactively to anticipated consumer behavior, rather than reacting after the owner has decided to purchase or lease new vehicle. Redefine customer relationships Companies can use the vast capacity and data-processing power of cloud technology to understand their customer s needs, wants, and preferences and tailor experiences that are relevant. Create ship-to-shore personal experiences. When a cruise line passenger uses a mobile app to check in, the crew has access to that profile, data, and preferences, allowing employees to push local experiences tailored to the passenger, such as ziplining, scuba diving, or a class in regional cuisine to create a truly personalized experience. Recognize your purpose. Mom or executive? Cloud-based CRM can capture why hotel guests are traveling and adjust the customer experience accordingly for example, offering experiences for a family traveling with small children instead of a business executive in town for a conference. Power dynamic decision-making With cloud-enabled access to the data and analytics tools and the need for deeper insights, management throughout the organization can make better decisions, faster. For example, cloud-enabled social media analysis allows marketers to anticipate and capitalize on trending topics and areas of interest within specific demographics. Restaurants can recover margin on discounted items by crossselling full priced items that are frequently purchased together. Deliver in time for the holidays. A delivery provider is connected to multiple sources of third-party data. During the holidays, the system recognizes that a severe weather event is going to seriously impair various delivery routes. The system pulls traffic, weather, and geolocation information to dynamically reroute drivers. Customers are given automatic updates in real time that their delivery route has been changed, where the truck is located, and what its new route is and ensures that gifts and packages are delivered on time. Redefine the service experience. A customer can schedule routine vehicle maintenance online or via their mobile device at the location closest to them. When their vehicle enters the service area, geolocation beacons detect the customer has arrived and send a notification to the service manager. The service manager is automatically presented with the customer and vehicle s service history, as well as the reasons for that day s visit, to make the check-in process smoother. The customer can track progress on a mobile device and receive a notification when service is complete. 7

8 Elevating the human experience with cloud How to get started From growing top-line sales to improving margins to creating stronger brand advocacy, the case for creating better human experiences is compelling. However, migrating to a distributed cloud environment has wide-ranging implications for the entire organization and is ultimately the responsibility of the CIO, who is accountable for the actual journey and technology transition. Marketing leadership must provide input and strategic vision to guide that journey and drive to outcomes that deliver on the brand s ambitions. Marketers can get started by focusing on two key initial steps: STEP 1: Define capabilities As you craft a vision for the types of experiences you want to deliver to your customers, you will also need to identify the core capabilities that are necessary to deliver those experiences. What is the unique expertise or domain knowledge that you need to realize your experiential vision, and do they exist in the organization today? What tools and systems enable those capabilities? STEP 2: Quantify value Once you understand the capabilities you need and the tools and systems that enable those capabilities, you can quickly assess the potential business value of investing in cloud migration. A rapid cost-benefit analysis can quickly uncover potential savings, efficiencies, and business impact that ultimately inform your decision-making process and cloud strategy. These foundational steps represent significant progress down the path of transforming into an agile, cloud-enabled marketing organization. Now the fun begins, and you can start to experiment with cloud-based capabilities, build proofs of concept, and elevate the experience for your stakeholders. 8

9 The human experience Humans retain more from experiences than from products or technology. How we feel is what sticks with us. Our experience imbues the world with meaning, embeds memories, and transforms our perceptions and behaviors. Being able to create a positive, personalized feeling in someone can build trust, loyalty, and revenue. Technology specifically cloud-enabled technology gives CMOs the opportunity to develop, test, and refine the experiences faster and more efficiently than ever, wherever that consumer may be. 9

10 Elevating the human experience with cloud Endnotes 1. ExperienceMIX A Digital MIX solution, McAfee, Cloud Adoption and Risk Report, June Johnson, P., With The Public Clouds Of Amazon, Microsoft And Google, Big Data Is The Proverbial Big Deal, Forbes, June 15, 2017, accessed February 18, Why Cloud is On the Board's Agenda, Wall Street Journal, November 13,

11 Authors Jeff Hood Principal Deloitte Consulting LLP Ashley Reichheld Principal Deloitte Digital Jody Stidham Managing Director Deloitte Consulting LLP Ken Duffy Senior Manager Deloitte Digital

12 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the Deloitte name in the United States, and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2020 Deloitte Development LLC. All rights reserved.

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