Australian Business Challenges 2019 KPMG

Following is an excerpt from KPMG blog on top 5 concerns for Australian business leaders which include digital transformation, innovation and disruption, regulation, political paralysis and customer centricity.

Australian business leaders describe the coming challenges.

Challenges According to Business Leaders (Image copyright Pexels).

What’s really top of mind and keeping our business leaders up at night (when there’s no axe to grind)

What are Australian business leaders really concerned about when they look forward to 2019?

So our research practice, KPMG Acuity, engaged a broad spectrum of C-level leaders from a diversity of industries to think about the main issues exercising them when they consider 2019.

220 leaders – some with fewer than 50 employees, some running companies with revenues of over $1 billion a year – took time out to respond. Most were from the private sector, but the public sector is represented as well.

In order of importance the top 5 issues are.

  1. Digital Transformation

Just about every CEO has ‘digital transformation’ at top of mind. In 2018, the term ‘digital transformation’ means so many things there is a very real risk that this lack of clarity is causing confusion, leading to diverse agendas and ultimately missed opportunities.

Digital transformation includes investments in digital technologies, but also spans the modification of an organisation’s functions, its ways of working, its back office technologies, and occasionally forging a completely new business model. True transformation should also include culture – often the poor cousin behind the more visible technology investment.”

  1. Innovation and disruption

The fear of disruption, on its most elemental level, is straightforward: the constant worry that your competition will use new tech and methods to do what you are not. But as we look toward 2019, we see the dilemma is actually more immediate, more tangible, and more complex.”

One reason for this is the current global marketplace has made it abundantly clear that the network effects of the innovation race tend toward winner-takes-all. There are spectacularly outsized growth opportunities for the lucky few – and the potential to get left in the dust for everyone else. This raises the stakes enormously.

  1. Regulation

This included both the sector-specific regulations facing the financial services industry and the broader challenges of harmonising business regulation; cutting red tape; and concerns over the capacity/capability of Australia’s regulators.

While we don’t wish to see needlessly bureaucratic demands on business, there is a danger of seeing new regulation as purely negative. Reporting can be a strong discipline to get things done, so we would urge businesses not to take their eyes off the ball and get into a defensive mindset if additional regulations are introduced in their sectors, or generally in 2019.

  1. Political paralysis

Fourth on the list of issues worrying business leaders was the ongoing political log jam at Canberra. There was uncertainty over the prospect of significant reforms or necessary changes, and a lack of belief that Australia’s major parties can work cohesively on national agenda items.

Many CEOs referred to energy policy as an indicia of political paralysis. The problem was a trilemma – price, stability, environment – but political discourse could not deal with the three issues and it drifted to one of the three depending on the political perspective. As a country we have to overcome this problem and start relying on evidence-based policy.

  1. Customer centricity

Customer not only came fifth in our list – but was the issue that permeated almost every other answer. It came up in responses ranging from regulation – where it needs to be seen through a lens of driving a closer connection of trust with your customers – to big data, where the real issue, said respondents, was ensuring every sector in the business has a plan to collect and deploy its data to create real value for customers.

The companies that truly get it are those who understand there is no silver bullet. These companies understand they need to have engaged, helpful people delivering outstanding service. That these people need to be working in alignment with a great digital experience. And that it is this combination that drives loyalty, advocacy, and commercial performance.

Read our full analysis of the top 10

For more articles and blogs related to consumer behaviourdigital technology, management & leadership, and business strategy click through.

 

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Importance of International Student Satisfaction in Marketing Communications

IEAA International Education Association of Australia has released a report by Ravichandran Ammigan PhD and Debra Langton looking at four dimensions of the student experience arrival, learning, living and support services; an extract of the report follows below.

In summary, the very useful report finds important to focus upon satisfied students who then spread positive word of mouth to prospective students; this is supported by previous research.

However, the use of the traditional expression ‘marketing materials’ does not seem to match the language of international students who are ‘digital natives’ and would most likely use social media under the umbrella of digital marketing.  Further, related to marketing, and contrary to the report, Australia does have issues in developing diversity outside of PRC and India, for which effective digital marketing system (not a one off strategy) should be a solution.

Nonetheless, it does focus upon the need to have students as central in marketing and one could suggest that in addition to maintaining quality for satisfied students, also involving students in creating customer generated media that can be used in digital marketing.

International student experience in Australia

In today’s increasingly competitive market to recruit and retain international students, it is critical that higher education institutions stay current on student perceptions, preferences and experiences with various aspects of the university environment. Ensuring students have the right level of support and resources can contribute to their academic, social and cultural success. It can also directly influence their overall institutional satisfaction and whether they would recommend their institution to prospective applicants.

This paper investigates the experience of international university students in Australia with respect to arrival, learning, living and support services. It is based on previous research by Ammigan and Jones (2018) and uses data from the International Student Barometer (ISB), to examine the relationship between student satisfaction and institutional recommendation for over 21,000 international students at 34 Australian institutions.

This paper provides guidance for university administrators and support staff on how to adjust and improve resources and services for international students, which can be an important component for enhancing institutional recruitment and retention strategies.

International students in Australia

As with other leading destination countries around the world, the higher education student population in Australia is culturally diverse, which presents opportunities for both international and domestic students to interact with peers from different cultural, social and linguistic backgrounds (Arkoudis et al., 2013).

According to the Australian Government’s Department of Education and Training (2017), more than 600,000 international students chose Australia in 2017. This is a record high and represents a 13 per cent increase since 2016. International students now make up more than a quarter of all students at certain universities.

In 2017, the international student sector generated over AUD30 billion, making it the country’s third-largest export (ICEF Monitor, 2017). It is predicted that Australia will overtake the UK to become the world’s second highest destination for international students in 2019 (Marginson, 2018).

International student satisfaction Improving student satisfaction is a major goal for universities – a satisfied student population can be a source of competitive advantage with outcomes such as student retention, recruitment and alumni relations (Arambewela & Hall, 2009). Student satisfaction, which generally results from an evaluation of a student’s educational experience, occurs when actual performance meets or exceeds expectations (Elliott & Healy, 2001). In recent years, there has been a growing interest from international educators to gather and utilise international student satisfaction data as a way to influence campus change and strengthen support services for this community (Yu, Isensee, & Kappler, 2016).
This is not surprising as the international student experience can be a critical recruitment and retention strategy for providing a high-quality education and remaining competitive in the global student market and world rankings (Shah & Richardson, 2016).

The Australian Government’s National Strategy for International Education 2025 recognises the importance of student experience. Goal 2 outlines a number of actions that expressly address the delivery of supports that:

  • meet or exceed student needs
  • build capacity for employment; and
  • encourage a strong international student voice to inform continuous improvement.

A study on the attitudes, goals and decision-making processes of over 67,000 prospective
international students from 193 different countries found that course offerings was the main driver of student decisions on institution and location, with the expectation that the course of study would lead to career prospects (QS Enrolment Solutions, 2018).  Reviews and marketing materials showcasing the quality of teaching and experience of academic staff was the second most influential factor in choosing their institution.

The same study found that prospective students were most concerned about the cost of living and being able to afford their tuition fees. Having a relative or friend in a destination country and receiving information about local culture and customs can help reduce concerns and worries about going to study abroad and impact students’ choice of a particular location. Campus safety and a welcoming environment were also important factors in international students’ institutional and destination choice…..

Satisfied students are strong advocates

For international students, choosing an institution is based on a number of ‘push’ and ‘pull’ factors, which may influence them to leave their home countries to study abroad (Banjong & Olson, 2016). Such factors include knowledge and awareness of the host country, quality of education, institutional reputation, tuition and living costs, scholarship opportunities, safety and security, university environment, quality of life, visa requirements and post-graduation employment options
(Mazzarol & Soutar, 2002).
Mavondo et al. (2004) suggest that institutional recommendation is closely related to satisfaction, where satisfied students are more likely to recommend their institution to potential or future students.  It is therefore important, especially from a marketing and recruitment perspective, for institutions to understand the factors that impact upon international student satisfaction which in turn drive propensity to recommend.

Reference:

Ammigan, R. & Langton, D (2018). The International student experience in Australia: Implications for administrators and student support staff. International Education Association of Australia (IEAA). Retrieved from www.ieaa.org.au

See original report via https://www.ieaa.org.au/research/student-experience IEAA Student Experience for full list of references.

For further articles and blogs on international education marketing, international students, information seeking journey, WOM word of mouth, student satisfaction and digital marketing click through.

 

Negative Issues of Digital Marketing

Digital marketing is featured in Mumbrella regarding results of survey on digital marketing, presumably using external agencies, firstly focused round metrics or analytics, brand reputation and fraud.

Digital marketing delivered with dodgy analytics

Importance of Analytics in Digital Marketing (Image copyright Pexels)

Most marketers have had negative experiences in their digital marketing, AMAA survey suggests

September 11, 2018 8:13 by ZOE SAMIOS

Most marketing and agency professionals say they experienced a negative event with their digital marketing, a new survey by the Audited Media Association of Australia (AMAA) indicates.

According to the AMAA, around 60% of the 407 surveyed said they had experienced some sort of bad outcome with their digital marketing. A total of 36% said they were impacted by misreporting of measurement metrics, while 32% were affected by “brand safety compromises”, and 13% said they were affected by ad fraud.

The new data comes from AMAA’s annual Trust Matters Research which aims to provide insights into ad trading decisions. The research was completed by agency The Insights Grill through an online survey between April and May this year.

Of those who said they had had a negative impact, 70% said it had led to wasted advertising dollars.

Concerns about non-human traffic have increased, with 53% of professionals arguing it was an issue to tackle in the next 12 months, compared to 39% last year. More than 50% of marketers also saw ad fraud as an issue, compared to 44% the year prior.

However, one of the biggest issues to tackle in the next 12 months, according to marketing and agencies, is proof of performance measurement.’

 

What are the solutions for any business or organisation to avoid such issues?

 

  • View any digital or marketing strategy as an ongoing system, not a campaign.
  • Do your digital marketing in-house for greater validity and control.
  • Consult and leverage with your customers and stakeholders, both internal and external.
  • If compelled to use external agencies, use CPD or training to learn about digital marketing, become involved, and take an interest in what is being done, not just as a budgetary item for ROI analysis, later.
  • Have your own metrics i.e. ensure valid data points are linked to analytics for feedback, that can be accessed while demanding any agency is transparent in the metrics they use, observe or report.
  • Use mystery shoppers to gauge the UX user or CX customer experience (still stalked by banner ads after purchase?).

 

For more articles and blogs about digital marketing services click through.

 

 

 

 

Trends in Digital Marketing and Business Strategy

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Technology, data and design are key to successful organisations, supported by the right culture, what are the latest trends?

Curiously, while speaking of customer experience CX and their ‘journey’, there is little focus upon customer driven strategies or CGM customer generated media content that is informed, logical, authentic and economic?

‘From Prateek Vatash of Econsultancy via AMI Australian Marketing Institute – Digital Intelligence Briefing – Executive Summary

Econsultancy’s 2018 Digital Trends report, published in association with Adobe, is based on a global survey of 12,795 marketing, creative and technology professionals in the digital industry across EMEA, North America and Asia Pacific.

Now in its eighth year, the research looks at the most significant trends that will impact companies in the short to medium term. As part of this year’s study, we have also identified a number of top-performing companies in order to identify how they are focusing their activities and investments differently compared to their peers.

High-performing companies are those organisations that exceeded their top 2017 business goal by a significant margin, and who have also significantly outperformed their competitors.  Key insights from the research include:

 

Companies continue to focus on the customer experience (CX), as well as the content required to facilitate this. Organisations committed to CX are shown to outperform their peers.
– Asked about the single most exciting opportunity for the year ahead, optimising customer experience (19%) again comes out on top, ahead of data-driven marketing that
focuses on the individual (16%) and creating compelling content for digital experiences (14%).
– Organisations with a ‘cross-team approach with the customer at the heart of all initiatives’ are nearly twice as likely to have exceeded their top 2017 business goal by a significant margin (20% vs. 11%).
– Just under two-thirds (62%) of companies agree they have ‘a cohesive plan, long-term view and executive support for the future of [their] customer’.
– The top strategic priority for organisations in 2018 is content and experience management. Almost half (45%) of companies surveyed rank this as one of their three most important priority areas for the year ahead, with a fifth (20%) stating that this is their primary focus.

 

We are entering a ‘design and creativity renaissance’, with top-performing companies recognising the importance of these capabilities to complement data and technology excellence.
– The survey has found that just under three-quarters (73%) of respondents say their companies are investing in design to differentiate their brands.
– Organisations describing themselves as ‘design-driven’ are 69% more likely than their peers to have exceeded their 2017 business goals by a significant margin (22% vs. 13%). – – Similarly, organisations where creativity is highly valued are 46% more likely to have exceeded their 2017 business goals by a significant margin (19% vs. 13%).
– Organisations that ‘have well-designed user journeys that facilitate clear communication and a seamless transaction’ are 57% more likely to have significantly surpassed their 2017 business goals (22% vs. 14%).

 

Investment in technology and related skills is paying dividends, with integrated platforms fast-becoming a prerequisite for success.
– A lack of integrated marketing technology reduces the chances of providing a seamless customer experience and can also be frustrating for marketers and other employees who want to go about their jobs without unnecessary restrictions in their ability to acquire, retain and delight customers.
– In terms of their tech setup, 43% of organisations report a fragmented approach with inconsistent integration between technologies. Top-performing companies are almost three times as likely as their mainstream peers to have invested in a highly-integrated, cloud-based technology stack (25% vs. 9%).
– Digital skills are vital for a range of marketing tools and platforms. Almost three-quarters (73%) of respondents agree that their companies are ‘combining digital marketing skills with technology’. Companies doing this are nearly twice as likely to have surpassed their 2017 business goals by a significant margin (20% vs. 11%), according to our analysis.

 

AI set to play a growing role in helping marketers to deliver more compelling real-time experiences.
– When asked about the themes and technologies they are most excited about over a three-year time frame, ‘delivering personalised experiences in real time’ is by far the most popular choice across all regions, with more than a third (36%) of company respondents, and 40% of their
agency counterparts, selecting this option.
– Top-performing companies are more than twice as likely as their peers to be using AI for marketing (28% vs. 12%). Only 15% of companies are already using AI, but a further 31% are planning to do so in the next 12 months. Looking only at respondents with annual revenues of more than £150m, the proportion of organisations using AI increases to 24%.
– Analysis of data is a key AI focus for businesses, with companies keen to create insight out of the vast quantities of often unstructured data being generated by customers’ activity. On-site personalisation is the second most-commonly cited use case for AI.’

For more article about digital marketing and consumer behaviour click through

Website Design for Digital Marketing and SEO

Websites are often viewed in simple functional terms and only for the IT or web team to tinker with, however this view is misguided and wrong.  Interesting article about how web design has progressed from online brochures into something more sophisticated:

 

A nostalgic journey through the evolution of web design. September 4, 2018 4.35pm AEST

The World Wide Web was invented almost 30 years ago by Tim Berners Lee to help people easily share information around the world. Over the following decades, it has changed significantly – both in terms of design and functionality, as well its deeper role in modern society.

Just as the architectural style of a building reflects the society from which it emerges, so the evolution of web design reflects the changing fashions, beliefs and technologies of the time.

Web design styles have changed with remarkable speed compared with their bricks and mortar cousins. The first website contained only text with hyperlinks explaining what the web was, how to use it, and basic set-up instructions. From those early days to the present, web design has taken a long and winding journey.’

 

Further, it is not just about design by an IT person nor appearance by a graphic designer but also digital or ICT, architecture and purpose, with the latter making the web and related central to organisational product or purpose, and visible presence.

This is exemplified by websites becoming both shopfronts and resource repositories which can be visible globally, often precluding a physical presence.  Functions of websites impacting design, include: digital marketing or SEO, social media junction, intranet, HR systems, training resources, e-commerce, finance or accounting including inventory, billing etc., media and communications.

Nowadays websites and digital need to be viewed as dynamic and living systems informed by internal and external stakeholders according to the SDLC systems or software development life cycle, for ongoing management and review of all organisational aspects.

For a related article on how to develop a website for digital marketing and SEO click through.