Yoko Kodaira
General Manager
DX Business Strategy Department
Business Transformation Division
It is difficult to encapsulate DX in a few words, as it has many elements. Dentsu defines the area related to consumer perspectives, aimed at corporate BX and growth, as marketing DX. In addition, Dentsu supports the creation of infrastructure that allows marketing innovation.
Particularly important for marketing DX are developing:
- New services, which are the backbone of BX
- Marketing infrastructure to support business growth
The following is an overview of the perspectives Dentsu values in terms of the development of new services.
With digital technologies and the online world having become integral to our daily lives and informing the customer experiences and services we should provide, I am sure everyone has a sense that digital technologies and the online world have become more entrenched in our lives due to COVID-19.
Personally, I am living a life that would have been unimaginable just a few years ago. I am able to reduce the amount of cash I carry around, use several different types of e-commerce, order coffee from my smartphone while on the move, pick up my order at the store and head home or to work. Online banking and supermarket shopping online have also taken root.
Yet, not all aspects of our lives are take place online. At any given time, we use the most appropriate methods according to our purpose and mood. As online experiences such as being personally connected to service providers and receiving individualized and specialized attention are not part of the offline experience, there are scenarios in which we feel a sense of discomfort.
As society and the lives of consumers change, how should companies connect with society and consumers, and what kind of services should they provide? As shown below (chart 1), Dentsu is working with corporations to consider how the future should look, while supporting the development of services from the perspective of customer experiences.
At first glance, it may appear that there is only a distant connection between Dentsu and the development of services. However, as the Company is engaged in advertising, we are well placed to consider how to ascertain the needs of consumers and society, and how to influence behavior. This is the basis on which the design of customer experiences and the development of services are based.
Using Data to Provide New Experiences
The penetration of digital technologies has enabled businesses to access more points of contact with consumers. Rather than interaction ending after products have been bought, companies are now able to maintain a connection with consumers over the long term, even after products have been purchased. In addition, the use of customer data and information enable companies to provide personalized services that better meet consumer needs.
0-to-1 Challenge
Intestinal Flora Analysis: Biometric Data for D2C Business
In one example of personalized service, Dentsu teamed with Cykinso, a venture company engaged in intestinal flora analysis, and a developer of a proprietary business, Body Call.
The service analyzes the intestinal flora of pet dogs and provides nutritionally appropriate dog food based on analysis results. (Note: Since the verification of commercial feasibility, the service has been suspended, pending further developments.)
This business launched services approximately six months after plans had been approved internally. In that time, indicators such as intestinal flora typing models and rules for compounding bacteria and intestinal age were developed, and an entire value chain was established. When the service was launched, some companies asked how Dentsu had been able to accomplish this new initiative in such a short time.
The answer is simple. Although Dentsu never before had engaged in the pet business, this is an example of us conceiving a service without being bound by pet business conventions and concepts. We simply thought about what had to be done to realize the service, and did so.
0-to-1 Can Be Realized by Consumers
Although it is hard for companies to introduce new 0-to-1 services and businesses, enterprises need consumers if they are to succeed. It is critical that companies be connected to consumers; understand—in the form of data—their opinions, behaviors, and desires; set up systems and infrastructure that can be leveraged quickly to proffer service; and design services that encourage clients to provide their personal data and build trust.
This is the second important point mentioned above with regard to marketing DX: the development of marketing infrastructure supporting business growth. The objective of Dentsu’s marketing DX efforts is to enable the simultaneous provision of support for both BX and business growth.
As a corporate marketing solutions partner, Dentsu has attained consumer insights in an effort to resolve issues faced by corporations. By leveraging this knowledge, we want to provide solutions connecting companies with consumers in the DX domain and support the promotion of marketing DX in even more companies, while continuing to be a partner that contributes to client company BX and sustainable growth.
Reference
We also provide a Dentsu Digital Transformation Diagnostics (DX Diagnostics) service, which evaluates DX-related issues facing companies, ascertains their position in markets and industries, and provides solutions that address the issues. (Click here for media release.)
Author
Yoko Kodaira
General Manager
DX Business Strategy Department
Business Transformation Division
After working in the Marketing Planning and Business Development departments, Yoko Kodaira now consults and manages in the areas of corporate BX and new service development through the promotion of DX.
She produces one-stop services for the issues facing corporations, from the formulation of business vision and strategies, to client experience designs from a consumer perspective, proof of concept implementation, service development, management design, and the provision of analytical data.
