Expedia and IAC Chairman Barry Diller said that the economic and business landscape caused by the coronavirus and the political actions to fight it have been cataclysmic. Diller does not see a return to normal anytime soon. He believes that people will first have get over being scared and that won’t be easy.
Barry Diller, Chairman of Expedia and IAC discusses our current “cataclysmic landscape in an interview on CNBC:
I See the Landscape As Cataclysmic
I see the landscape as cataclysmic,” says Diller. “We’re in something that it’s very hard to be objective about because we’re in the eye of it and we’re inside of it. We can’t really see it for what it is. Everybody says the same thing there’s been nothing like it before and while we know some things we really know nothing. We know nothing about what happened and when we’re going to get out of it. “
What will we be doing and will our habits change? Will this result in some really profound difference in people’s lives in the future? So I see it as everybody is scared. The fact that we have so much media and so much information with all it telling us that we’ve got to be quite scared about cohabitating with anyone. That ain’t good.
A Quick Return To Normalcy Will Not Happen
No, (I don’t believe that we will go back to normal on the other side of this as we did after 9/11). What I said then was that if there’s life there’s travel. I still do believe that but this is not going to be what happened then which was a very very quick return to normalcy. That is not going to happen. At best, we’ll have kind of a rolling way out.
As far as travel is concerned, while I’m absolutely optimistic that it will happen at some point, I don’t think it will be soon. It will probably be September, October, November, or December to really get life back. And in order to travel, you have got to have that. So they’re totally different conditions. This is not analogous. I don’t think this is analogous to anything and is certainly not analogous to 9/11 and to the financial crisis in 2008.
“Digital changes the game entirely,” says Delta Air Lines CEO Ed Bastian. “The big thing you’re going to see us do is to bring the technologies, not just into the hands of the customers going mobile in terms of controlling your experience with Delta, but into the hands of our employees. This is so that our flight attendants, our pilots, our gate agents, our people in reservations and in maintenance, can actually start to interact more efficiently with each other and with customers to continue to run an even better operation.”
The data is already there. Yes, the new variants are throwing off more data. The problem we have with a lot of the aircraft and the engine data that’s being produced is trying to figure out what you do with it, what’s relevant, what’s the real meaning behind it? We’ve got amazing predictive maintenance technologies that we’ve already at Delta deployed. We run the best maintenance operation in the world.
Ten years ago we bought Northwest Airlines and we had a really difficult year in our first year of integration. We had 6,000 cancellations due to maintenance alone in that year. In one year, in 2010. This past year we had 60 the entire year, a 99 percent reduction in maintenance cancels. No airline the world can talk to those types of numbers. It tells you that it’s predictive technology and engine technology. We’re using the data. I don’t know what more data we’re going to get to. You’re not going to get better than 60 in a year. We’re already pretty skilled in that knowledge set.
Digital Changes the Game Entirely
There’s a lot we can improve (with the consumer experience). I’ll tell you that we are within our peer set doing a great job as we’re innovating. The thing we had to do as a 95-year-old company is that we had to build the foundation. We’d spent several years building the infrastructure, the architecture, and being able to get at the data. It was truly an incredible maze of spaghetti thrown all around the company with all the legacy systems. We’re bringing the digital technologies almost on a weekly basis now into the market.
Our Fly Delta app is one of the best-rated airline apps out there and will get better. There’s more we can do. The big thing you’re going to see us do is to bring the technologies, not just into the hands of the customers going mobile in terms of controlling your experience with Delta, but into the hands of our employees. This is so that our flight attendants, our pilots, our gate agents, our people in reservations and in maintenance, can actually start to interact more efficiently with each other and with customers to continue to run an even better operation. Digital changes the game entirely.
We Are Not a Technology Company At Its Core
As we continue to expand our technology with digital and being able to let our consumers know more about us so we can know more about them and be able to engage in a deeper relationship, we have to maintain that same level of trust and care that we have with putting you in the sky as compared to protecting your private identity and your data.
We have a lot of people looking at all the technologies that we’re thinking about rolling out making certain that they comply with all privacy laws. We’re not a technology company at its core. We’re not ever marketing the data or selling the data but we still want to make certain that we’re adhering to those same privacy standards.
The Flight Experience Continues To Get Better
The flight experience continues to get better. Our operational performance has been incredible. We just ended this past weekend a run where we had over 40 days in a row without a cancellation around the world. These are running levels of excellence and performance that we’ve never seen. The flying experience is getting to a point where value for money is also significant because consumers today are paying 40 percent in real dollars less than they did 20 years ago for the price of tickets.
The deregulation of our industry back in the 1980s has worked and democratized travel and it has brought people out. I never stepped foot on a plane before I was 25 years old. How I ever got this job I’m still not quite sure. Flying wasn’t affordable. It wasn’t something I did when we grew up now. Our kids think you are a dinosaur if you don’t fly.
The Big Change Is Going To Be In The Airports
I think the big change is going to be in the airports going forward. The airport’s going to look significantly different. We’re going to try to take the stress out of the airports. One of the things about airports, we’ve got to remember, these were built 50, 60, or 70 years ago, for an era that has long past us. So volumes, security apparatus, even the physical layouts. Back then people would come to the airports to look at the marvel of the front head house we call it, the front door, or the artwork.
When did you ever spend time in the front of an airport? You never go there. Now you just go directly to security. You don’t even stop at the counter, you’ve got your mobile. But all of our physical layout is up front. We’ve got to flip it around and put our physical layout back by the gates where people want to get to. We need to make that front almost the security, getting into the property, to begin with.
You’re Going To See a Very Different Boarding Process
You’re going to see a very different boarding process. That’s the other tremendous stress. This is where you see people looking to line up and everyone wants to get on at the same time and most of their earthly belongings. Why does anyone want to sit in an airline seat longer than they have to? People don’t, but they want to get on board and they want to make sure their property gets on board with them. If you have confidence (with RFID technology, which we’ve now rolled out) that your bag will be there waiting for you when you get to the baggage area at the end of the flight, would you really try to carry that bag on?
We’re looking at even taking the boarding cues out, taking the podiums out. With podiums it just gives people reason to line. What if there are no podiums? We will have chairs so people can sit down and agents with technology in their hands. With the digital technology that I’m talking about, they can serve as a host or hostess rather than a ticket taker. That’s how you build relationships. That’s what we’re designing.
5G Is Going To Be a Big Deal For Us In The Airports
We’re experimenting with it but it’s knowing that the agents are out there with the technology in their hand and that’s who you need to talk to. These people will be trained to try to scoop up bags if there are bags that can be checked, but again it’s going to take some time. There has to be confidence that the technology works and it’s being delivered on. We put the technology in and there are still teething pains. A lot of it is going to be around network bandwidth. 5G is going to be a big deal for us in the airports. We actually will have the Wi-Fi capabilities to actually implement this at the level of fidelity that we’re looking to create.
With the RFID technology that we have today, we have scanners out there, we have sensors. They’ll pick up the bags that will be going on to the belt loader. The belt loader is trained that if a bag is going to the wrong destination it will stop the belt loader. It will cause the gate agent or the ramp agent to go look at it and figure out where that tag is and get it onto the right plane. It will also be able to track it. You can track your bag on the Fly Delta app, you’ll know where it is. You’ll see it get to the baggage claim before you do. It will tell you what baggage area you need to go to. That what we’re creating for the future and technology is going to be critical in getting there.
Digital Changes the Game Entirely, Says Delta Air Lines CEO Ed Bastian
While some industries may be reeling from the coronavirus pandemic, ecommerce ad spending is experiencing a boon.
According to Search Engine Land, a recent report details the growth ecommerce ad spending is currently undergoing, jumping “from $4.8 million the week of February 17 to $9.6 million the week of March 9. The data, released by media sales intelligence firm MediaRadar on Friday, encompasses advertising spend across national TV, print and digital media, including websites, Snapchat, YouTube and podcasts.”
The data is another indication that the U.S. and world economies are experiencing fundamental shifts as a result of the pandemic. People are practicing social distancing, working from home, turning to social gaming for human interaction, relying on cloud environments, communicating via Slack or Microsoft Teams and turning to videoconferencing in never before seen numbers. Similarly, the increase in ad spending corresponds to people sheltering in place and relying on ecommerce for their day-to-day needs.
The longer the pandemic goes on, the more likely such trends will become permanent, forever changing how people go about their personal and work lives.
“We’re making email marketing even smarter with a set of new AI capabilities getting released into Salesforce Marketing Cloud,” says Salesforce VP Armita Peymandoust. “One of them is Einstein Engagement Frequency. The other one is Einstein Send Time Optimization. We also have Einstein Content Tagging out and available today to our customers. Email is definitely not dead. Even the Millennials say that.”
AI-Powered Email Capabilities Released Into Salesforce Marketing Cloud
As we know email is still a really important channel. Over 64 percent of customers are still saying that they prefer email channels to all the others. What we’re doing is we’re making email marketing even smarter with a set of new AI capabilities getting released into Salesforce Marketing Cloud. One of them is Einstein Engagement Frequency. The other one is Einstein Send Time Optimization. We also have Einstein Content Tagging out and available today to our customers. Email is definitely not dead. Even the Millennials say that.
Einstein Engagement Frequency
With Einstein Engagement Frequency we’re trying to tell the marketer what’s the sweet range that they should keep on engaging with their customers. As marketers, we want to keep on engaging with our customers but we just don’t want to get to a point that we’re potentially annoying them. So we are telling them that this is the range that you should stay in.
Einstein Send Time Optimization
Now that the marketer knows what the frequency of engagement should be, with Einstein Send Time Optimization we’re also telling them what is the right time to send those messages. It’s really easy with a drag and drop of an activity into Journey Builder we make every message go out at the right time for the customers.
Einstein Content Tagging
Then with Einstein Content Tagging, we’re basically bringing image recognition the same set of AI capabilities that you’re familiar with for your customer based or consumer based products. This is where you upload photos and then they automatically get tagged. We are bringing that same technology to the hand of the marketer. Every image that’s getting uploaded into Content Builder gets automatically tagged so they can find it later and use it when they’re building their messages.
Transactional Messaging
We’re also releasing Transactional API’s for Emails and SMS. There are different types of emails out there. There’s the commercial one and there’s the transactional one. It allows the marketer to bring both of those two in an inter-marketing cloud and take advantage of Marketing Cloud to send those emails to have the same voice, the same brand voice, and also be able to see how those are performing all in one place.
Indiana Pacers Improved Customer Engagements By 20 Percent
These features are all relatively new. So we have pilot customers that have been taking advantage of them. We have one retailer that talked about Einstein Engagement Frequency. They had a hunch that they were over messaging customers but they couldn’t really put their finger on it. With Einstein Engagement Frequency we could show them visually exactly where they’re over engaging with their customers and let them take action on it. The platform automatically created lists so that they would not send messages to the ones that are getting too many email messages.
We’ve had a set of AI features in Marketing Cloud, specifically Einstein Engagement Scores, was one that the NBA’s Indiana Pacers is taking advantage of, to increase the engagement rate that they’re having with their fans. They got a 20 percent increase in engagements with their fans using that.
Customer Engagement Getting Even More Granular
We have a jam-packed roadmap for the next of the rest of the year as well. One of the things that I’m really excited about is Content Selection that’s coming out. Content Selection lets each of those messages that we’re creating be dynamically optimized for every customer that’s receiving them. Think of your email as a template that has different aspects or different selections in it that gets automatically replaced with what your customer cares about most and also what they have engaged with most and historically. It’s very engaging for every one of your customers.
The other one that I’m interested in (that is coming later) is bringing natural language processing to understanding your subject lines. What types of subject lines are resonating? Why is it that they’re resonating with your customers? It will give you an insight on them first and then also give you recommendations on how to improve your subject lines.
https://youtu.be/oaH_OrquEcE
New AI-Powered Email Capabilities Released Into Salesforce Marketing Cloud
“We’re seeing right now continued strength across our business because people are prioritizing digital transformation as a way to gain competitive advantage,” says Equinix CEO Charles Meyers. “The reality is people who are responding well to that are thriving and people that are not are being left behind. What companies (like Walmart) are doing essentially is using a hybrid and multi-cloud strategy. They have private infrastructure that they may house in a significant caged environment at Equinix but they interface it then with the public clouds.”
Charles Meyers, CEO of Equinix, discusses their huge under the radar role in facilitating the massive digital transformation in progress with companies worldwide. Meyers was interviewed by Jim Cramer on CNBC:
There’s A Very Deep Demand Pool For Data Centers
We continue to see a really strong set of underlying secular demand drivers for the business. We’re seeing real strength in the business globally right now. Broadly, we’ve seen the sector respond very well. We think there’s a very deep demand pool for data centers. I do think that Equinix plays a very unique role in the market and our differentiated position is allowing us to even outperform relative to our peers. Public cloud adoption is a major catalyst for our business. As enterprises are adopting public cloud and looking at hybrid and multi-cloud as their architecture of choice we’re seeing really strong demand.
We may not be a household name but I think it’s pretty safe to say we’re probably impacting the lives of millions of consumers on a day to day basis working with (many big-name companies such as Salesforce and Netflix). We play a very important role in terms of interconnecting our customers sometimes to public cloud providers, sometimes to SAAS providers like Salesforce, sometimes to other members of their supply chain, and sometimes to networks. A really big part of our legacy and history has been interconnecting people to networks. The interconnection story is a really central piece of the Equinix story.
Equinix Is The Best Representation Of The Digital Edge
Equinix is in fact the best representation of the digital edge today. That is the point at which people are interconnecting their private infrastructure with public cloud infrastructure, with networks, and with other members of their supply chain. When you hear about edge, oftentimes that edge is in fact within an Equinix facility and being interconnected over private interconnection facilities that are facilitated by Equinix.
Typically, when inside one of our facilities, we’re unlike some wholesalers which might have one or a very small number of customers, we tend to have a larger number of customers in any individual facility. They are distributed across the site typically in private cages or sometimes in shared caged environments or shared rack environments and they have their equipment. They’re all obviously very secured and something that’s available just for them to access. But they’re all across the facility. You typically wouldn’t be able to see who the customer is because they are very sensitive about that from a security standpoint.
Firms Prioritizing Digital Transformation For Competitive Advantage
We’re seeing right now continued strength across our business because people are prioritizing digital transformation as a way to gain competitive advantage. The reality is people who are responding well to that are thriving and people that are not are being left behind. So we’re seeing strong demand. I think the trade tensions, etc. probably affects some level of sentiment but we have not seen that impact the demand profile for our business.
What companies (like Walmart) are doing essentially is using a hybrid and multi-cloud strategy. They have private infrastructure that they may house in a significant caged environment at Equinix but they interface it then with the public clouds. They’re using a variety of public clouds to house some of their workloads. So that hybrid multi-cloud environment is really the architecture of choice for enterprise customers of all sorts. Retail is actually an incredibly strong segment for us. That architecture of choice, hybrid and multi-cloud, is a major driver for Equinix’s business.
Business Prioritizing Digital Transformation For Competitive Advantage – Equinix CEO Charles Meyers
“We really took a strategic imperative about two and a half to three years ago to step up our enterprise game,” says SurveyMonkey CEO Zander Lurie. “This has been a company that has thrived in going direct to end-users. We’ve built up a user base, a paid customer base, today of almost 700,000 people. But over the last three years, we’ve elevated our game. Today, enterprise represents 20 percent of our business. It helped us deliver our best quarter in history. We’re now growing 20 percent year-over-year.”
Zander Lurie, CEO of SurveyMonkey, discusses how the company is driving its massive growth by focusing on enterprise solutions that are sold by the seat, in an interview on CNBC:
The Category For Experience Management Is Massive
The category for experience management is massive. Companies today are differentiating their products and services by their ability to be customer-centric. Everybody has access to off-the-shelf software and you can buy keywords on Google and you can target folks on Facebook but the ability to really be sensitive to what your customers care about and want is critical. Usabilla is the solution that we acquired earlier this year. They have a customer in KLM Dutch Airlines who was able to improve their app experience by a 2.8 to a 4.2 rating using our product. It really is about, can your managers and can your marketers listen to that feedback, understand the bugs, and then deliver and take action. That’s what survey software can do.
We don’t compete with Adobe and Salesforce at all. Frankly, there are hundreds of thousands of Salesforce customers who need to be buying enterprise survey software. We exist in the Salesforce ecosystem and really try and help Salesforce customers get better data and get sentiment data from what their customers really care about. Salesforce, Microsoft, Adobe, those are big systems of record. They provide you a lot of operational data. Where SurveyMonkey competes and thrives is delivering for customers that sentiment data. How am I really doing? What can we improve upon? That’s where we’re selling a solution into the Salesforce ecosystem and we partner with Salesforce in a really productive way. It’s part of the reason they bought into our IPO last year.
Selling To the Enterprise Has Been Wildly Successful
We really took a strategic imperative about two and a half to three years ago to step up our enterprise game. This has been a company that has thrived in going direct to end-users. We’ve built up a user base, a paid customer base, today of almost 700,000 people. But over the last three years, we’ve elevated our game. Today, enterprise represents 20 percent of our business. It helped us deliver our best quarter in history. We’re now growing 20 percent year-over-year.
We set about on our IPO last year and told investors our plan to make this business a lot more valuable. The two key driving factors first is to elevate our sales motion to sell directly to the enterprise. That has been wildly successful. We doubled year-over-year a hundred percent growth in revenue in the sales channel. We now have almost 5,000 customers, up 60 percent year over year. We now compete in that ecosystem and we have a really disruptive product. Consumers love our product. We’re now selling into the organization with a really talented sales team.
There’s Been So Much Account Sharing On SurveyMonkey
Our team’s product is the collaborative self-serve product. We have a unique opportunity here. There’s been so much account sharing on SurveyMonkey over the years and in the current security environment, we’re asking people to pay for their own seat. That has driven a really healthy paid user growth. We see continued growth in those two areas. As I said, growth for us we’ve accelerated growth now twenty percent year-over-year, but we do it a disciplined way. We’re still able to deliver over $13 million dollars of unleveraged free cash flow in the quarter. We’re just not a company that’s going to grow at all cost. We want to have both healthy growth and disciplined cash flow.
We use politics in a fun way to help get a beat on what’s going on out in the world. Just like we ask questions about if you are potentially interested in buying an electric car or what do you think of Impossible Burger or Beyond Meat, we also ask questions of the two and a half to three million people on our platform every day of who might you vote for and what issues are important to you. That really does give us a particular read on what American consumers are thinking.
Selling To the Enterprise Has Been Wildly Successful, Says SurveyMonkey CEO Zander Lurie
“Mobile is coming to the enterprise, finally,” says ServiceNow CEO John Donahoe. “It’s been a long time coming. Our release in Q3 will have native out of the box consumer-grade mobile capability. So now any ServiceNow customer can have a brilliant mobile onboarding app so that their new employees can get up to speed quickly and seamlessly. We are very excited about the mobile capabilities coming in Q3, native out of the box so every one of our customers can build them in a low-code or no-code way.”
Our customers are very excited about mobile coming to the enterprise. It’s been a long time coming. Our release in Q3 will have native out of the box consumer-grade mobile capability. So now any ServiceNow customer can have a brilliant mobile onboarding app so that their new employees can get up to speed quickly and seamlessly. You can show a young new employee, a millennial, that you are in fact a modern company that helps get them onboard and productive quickly.
Also, the Now Mobile app which will allow employees to get their questions answered, problems reported and then dealt with, and get information. All my approvals are now in one place where I can check them. We are very excited about the mobile capabilities coming in Q3, native out of the box so every one of our customers can build them in a low-code or no-code way. Mobile is coming to the enterprise, finally.
We feel very good about our growth. We feel very good about our customer and very good about our prospects. We are just focusing and executing so our customers get those great experiences.
We Feel Very Good About the Relations We Are Building
We now have 766 customers that are a million dollars and greater. We signed 14 customers that are a million dollars and greater in the quarter. That’s just symptomatic of the fact that we now work with 75 percent of the global 500. We are increasingly a strategic partner with those customers. Of our top 20 deals, 17 had three or more products. We feel very good about the relationships that we are building with our largest customers, which are the world’s largest companies and governments.
Our relationship with Microsoft is a very good one. We are initially focusing on US federal business where Microsoft has a strong presence as do we. We have a huge federal business and our datacenters have a certain security clearance. Microsoft Azure has the highest security clearance. Rather than us trying to replicate that, we are going to partner with them to take advantage of that Azure capability and jointly call on US federal customers.
We are doing the same with federal customers in Australia and increasingly we will look at other government markets. We have 20 different product integrations with Microsoft and a long history with them. We think there is a lot of shared opportunity together.
RPO Is the Best Forward-Looking Indication of Our Business
We do think RPO is a very good indication and probably the best forward-looking indication of our business because it demonstrates what kind of revenue you can expect going forward. Our current RPO grew 35 percent in the quarter. We feel very good about the outlook and future of our business. We raised guidance for the full year, both on revenue and billings. We see a lot of opportunity and we have a lot of strong momentum. We are focused on building those customer relationships that drive that growth.
Mobile Is Finally Coming To the Enterprise, Says ServiceNow CEO John Donahoe
“Every company is going through a massive digital customer transformation,” says SalesforceCEO Marc Benioff. “When you see this transformation happening it’s just incredible to watch. I mean this is as big as Y2K was for the tech industry. Every company is going through it. Every one of these major transformations is exactly that, it begins and ends with the customer.”
Marc Benioff, CEO of Salesforce, discusses their blowout earnings quarter and how the massive digital customer transformation is driving their growth in an interview with Jim Cramer on CNBC:
Massive Digital Customer Transformation
Every customer is going through a massive digital customer transformation. When you see this transformation happening it’s just incredible to watch. I mean this is as big as Y2K was for the tech industry. Every company is going through it. Every one of these major transformations is exactly that, it begins and ends with the customer.
The federal government was one of the most exciting things that happened in the quarter. It wasn’t just the USDA. It was also the Department of Education and the Department of Interior. It was many departments actually. They’re going through a huge digital transformation in the U.S. federal government and Salesforce has been able to offer many of those agencies is the rapid successful digital transformation that they need. We even had a 10,000 person event in Washington, D.C. during the quarter. That continues to be a fantastic growth area for us.
We’re number one in CRM which is the fastest growing part of enterprise software. Every company in every industry and every government is recreating themselves with their customer. This is what’s driving our growth. It’s pure and simple.
Mark Benioff added these comments during the earnings call:
Every Digital Transformation Begins and Ends With the Customer
Just last month, IDC Worldwide Software Tracker ranked Salesforce the number one CRM for the sixth year in a row. And I’ll tell you that is more important than ever, especially so many of our customers are going through these tremendous digital transformations. We all know every digital transformation begins and ends with the customer. And when I’m with these CEOs all over the world, this is really front and center in their mind. It’s probably as exciting to them and it’s important to them as it was to CIOs, who are buying for Y2K, which is almost 20 years ago. I think the digital transformation remains just a huge growth opportunity for our entire industry.
Still In the Early Days of the Digital Transformation
Well, there are many, many companies in the very early days. In fact, if you talk to one of our largest consulting partners, they’ll tell you less than 20% of their strategic customers have been engaged in the digital transformation, but there’s a lot of room for them in the marketplace.
So, we have an opportunity here again around this digital transformation and one of the beauties of a product like Trailhead and My Trailhead is helping these companies through their transformation and scale them up with modern technology because the modern worker has to have modern skills. And that’s what Trailhead and My Trailhead really provide the customers. So we really are coming out with an amazing innovation at the right time to satisfy the needs of these customers
Every Digital Transformation Begins and Ends With the Customer, Says Salesforce CEO Marc Benioff
“We’ve got 4,700 stores within ten miles of 90 percent of the US population,” says Walmart Ecommerce CEO Marc Lore. “In those locations, we’ve got about 100,000 products including fresh and frozen. We’ve started doing pickup a couple of years back and now same-day delivery to the door. We decided to take it a step further and actually deliver it directly into customers fridges and so far so good.”
Marc Lore, CEO of Walmart Ecommerce U.S., discusses In-Home Delivery and Next Day Delivery in an interview on Bloomberg Technology:
Walmart Now Delivering Groceries Directly Into The Fridge
This (delivery to a customer’s fridge) is a great opportunity for Walmart to leverage this unique asset to do things that only Walmart can do. We’ve got 4,700 stores within ten miles of 90 percent of the US population. In those locations, we’ve got about 100,000 products including fresh and frozen. We’ve started doing pickup a couple of years back and now same-day delivery to the door. We decided to take it a step further and actually deliver it directly into customers fridges and so far so good.
I do think this is a great step change in the value proposition. Imagine going to work and coming home and having all the groceries stocked in your fridge. We just saw (in a previous trial using a third party) a really big opportunity to use our own Walmart associates to do the delivery. Their W-2 employees. They’ve been with Walmart for at least a year. We feel like that’s a big advantage.
Can Deliver All Purchases Into Your Home Without Packaging
We don’t actually need to have cameras in the home. The actual associate will have a camera on their vest. You could actually as a customer track on your app the associate going into your home, putting groceries into the fridge, and then leaving. You can look at it in real time or you can go back and look at it anytime you want. It’s very safe for customers as well.
There are lots of possibilities (that will stem from in-home deliver). For example, being able to do a return. Imagine just leaving something on your kitchen table. That’s it, going to work and coming home and we’ll just take it away from you. Also, being able to deliver general merchandise into your home without any packaging. I think there’re lots of opportunities for services and health and wellness and all sorts of opportunities. We’re thinking them through now. We have some ideas.
One Day Delivery Actually Costs Us Less Than Two Day
Next Day Delivery has been great so far. It’s down in the LA region right now. By the end of the year, we’ll have about 75 percent of the population will have access to Next Day Delivery. Typically, the cutoff time is around 3 p.m. If you order by 3 p.m. you will get it the next day in a single box. That’s the other great thing too. A lot of times now you might receive it in multiple packages. It’ll be overnight in one box. We are really excited about that.
It actually costs us less than Two Day Delivery. The big reason is that we’re able to get it in a single box. All this inventory is now mirrored or replicated close to the customer. If it’s close to the customer and it costs us less to ship it. If it’s one box it costs us less to ship as well. So yes It’s actually cheaper. We’re just being very measured in how we roll it out. By the end of the year, three-quarters of the country will have it. It’s gonna be moving pretty fast. About 40 of the top 50 metro areas will have access to it. So it’s about four or five areas a month that we’re adding.
Dramatically Improved Contributed Profit Margins
Right now, we’re in a really good position (regarding online profitability). Over the last year, we’ve dramatically improved our contributed profit margins. We’re starting to drive more mix into the higher margin categories like fashion and home. So feeling really good about the momentum we have. We have some dates in mind that we’re not obviously sharing. But we feel good about where we are right now. We feel really good about where we are and where we’re going.
Walmart Now Delivering Groceries Directly Into The Fridge – Walmart Ecommerce CEO Marc Lore
“When people look at what’s happening with Amazon trying to get into their businesses, the need to transform is also front and center for every c-level executive,” says Adobe CEO Shantanu Narayen. “Given that Adobe’s been through our own transformation and has software they want to hear from us and they want to experience that same benefit that we have been able to see.”
When we talk about helping businesses transform we do every aspect of it. We help them create that experience and help them understand how to attract customers. That last mile of transacting with customers is so critical. Adobe was a company that actually innovated tremendously but we had a two-tier distribution channel. We have two businesses. We have the creative business and we have the enterprise business. If you look at what we’ve been able to accomplish in the long run and the two tailwinds that we have, we continue to be really optimistic about Adobe’s prospects.
When we completely moved to the cloud we recognized that every other company would go through what we did. Namely, how do you engage with your customers digitally? Do you understand how to acquire them and how do they use your software? I think sharing our learnings with other people gives us incredible credibility in the enterprise and we learn from these customers.
Creating a Real-Time Customer Profile is So Critical
In enterprise software, this third generation, which is all about customer experience management, I think it’s the companies who recognize that you have to partner with an entire ecosystem to create this real-time customer profile that’s absolutely so critical. That’s why our partnerships, whether they be with ServiceNow or Microsoft or the other cloud kings is so critical in enabling our customers to completely transform themselves.
What we have been able to do is create this real-time customer profile. People are really within an enterprise saying how do I create native applications? ServiceNow is clearly the leader in IT Service Management. What John (Donahoe) has done is truly special. I think partnering with them to enable IT professionals within an enterprise to use Adobe’s Customer Experience Management with ServiceNow’s IT Service Management, that was a natural.
The Need to Transform is Front and Center for Every C-Level Executive
Design and creativity have never been more important. Everything has a screen. So people are creating content, whether that’s a car, whether that’s a retail experience, whether it’s a basketball stadium. Adobe is the content provider that enables all of these screens to be delivered with incredible content. Given design is more important and given mobile devices are in every single place, that’s a tremendous tailwind.
Secondly, when people look at what’s happening with Amazon trying to get into their businesses, the need to transform is also front and center for every c-level executive. Given that Adobe’s been through our own transformation and has software they want to hear from us and they want to experience that same benefit that we have been able to see.
I’ve talked about how video is explosive. II think what Disney is doing both with their own service as well as with more control of Hulu is really saying people are consuming more and more content digitally. So providing the analytics for that, providing the digital rights management for that, the right ability to audience segment in terms of who you are attracting, a lot of that is what Adobe powers. This is not just for Disney but for frankly all the major media companies in the world.
Adobe Powering Big CPG Companies Through a Digital Transformation
The big CPG companies are going through the following question. They have sometimes hundreds of millions or billions of people using their products and they just don’t necessarily know who they are. Giving them that insight into how they create this incredible customer database, how they understand usage patterns, and how they understand what these people want. If we can provide that insight to companies then all the CPG companies can recognize that this direct relationship will enable them to innovate at a faster pace.
For example, what Unilever is trying to do is really say we have this tremendous distribution network but what they’ve tried to do even with Dollar Shave Club is really say, “How do we create an incredible customer database?” But the same thing is happening across Colgate or Procter & Gamble. We are partnering very heavily with Unilever as they embark on this digital transformation and understanding customer patterns and customer sentiments across the world.
The Need to Transform is Front and Center for Every C-Level Executive, Says Adobe CEO
“Innovation is the key,” says Honeywell CEO Darius Adamczyk. “Anything we do in Honeywell, innovation is always the key. Whether it’s expanding into Europe, driving more robotics, a connected warehouse offering which we are bringing to customers and having a broader play, are the key technology levers for that business.”
Darius Adamczyk, CEO and Chairman at Honeywell, discusses how the company is using innovation and technology to drive growth in an interview on Bloomberg:
Honeywell Digital Makes Us a More Contemporary Digital Company
As we always said my number one priority as CEO was to drive organic growth, but we never say we’re going to give up on our margin expansion. We do it through a combination, both commercial levers, which is managing our mix, and always introducing new products, which bring more value to customers. But also not forgetting our roots, which is driving productivity. With the number of ERPs we have and the kind of complexity we have in our supply chain, Honeywell Digital, which is going to make us a much more contemporary digital company, we have plenty of levers for productivity as well.
Honeywell Digital really has three primary elements. First is data governance, which is standard across all our various businesses. We’ve done over 80 acquisitions in the last 15 years so we have a lot of disparity. Then there are common processes, which is we want to run our businesses the same way in a very consistent manner. We have some pockets of excellence, but those have some inconsistency. Finally, all integrated into a common IT platform. Just to give an example, we had well over 1,500 different software applications before we started. We had over 150 ERP systems. It’s just very difficult to run a company efficiently and enable us to really make good data-based decisions. Honeywell digital is really all about enabling that.
Anything We Do In Honeywell, Innovation is Always the Key
Warehouse automation, which we started in 2016 with our Intelligrated acquisition. It’s been just a terrific business growing strong double-digit. We also made another acquisition called Transnorm which added to that technology in Europe in Q4 last year. We were planning on growing it organically, but also we’re looking to enhance our offerings, so we’re looking for inorganic opportunities as well. Innovation is the key. Anything we do in Honeywell, innovation is always the key. Whether it’s expanding into Europe, driving more robotics, a connected warehouse offering which we are bringing to customers and having a broader play, are the key technology levers for that business.
Amazon is a big customer but we have a lot of big customers. I wouldn’t say it’s a predominant customer in that business. Just about everybody is looking into ecommerce because with a lot today’s retail you really have basically two options. One option is to enhance the in-store experience which a lot of retailers are doing. The other one is to drive ecommerce. We think that this trend is going to continue. Although I would say it’s in the middle innings in the US, it’s just beginning in Europe. We think we have a huge opportunity in Europe, India, and some of the other overseas markets.
We have a very active venture capital fund and we’ve made about six investments in the last six months which is augmenting our technology plays. So although we haven’t made any big acquisitions, other than Transnorm in Q4, we are continuing to invest through our venture fund and we’re deploying capital that way. It’s been a terrific story for us in 3D printing for instance, particularly for our aerospace business. For a lot of the slow-moving parts we’re trying to basically get a new part certified and three printing per day. That’s our objective. Our aerospace businesses have made tremendous progress in achieving that and it’s really helping both for our inventory and on-time delivery for a lot of our aftermarket customers.
It’s Important For Teachers To Be More Effective in STEM Education
Regarding the workforce, education is the key and particularly STEM education. Honeywell is a big believer in that. Not only do we develop a lot of our young people that we bring into the company but we also spend a lot of money and time on developing teachers. It’s important for teachers to be more effective in STEM education. It’s something that we’re going to be supporting going forward even on a broader scale because that’s the way to differentiate our company.
We’re always going to be differentiated by technology and we want to bring the brightest and the best. We want to make sure that it’s a competitive issue, not just here in the US, but everywhere we hire people, and we hire people just about everywhere. We have engineers in the US, China, India, everywhere around the globe. I would say lately we’ve actually been very much on the hiring string. When you grow 8% that creates a lot of opportunities to hire a lot of people particularly in the area of technology and engineering and software.
At Honeywell Innovation is Always the Key, Says CEO
Salesforce CEO Marc Benioff says that Salesforce is now entering the fourth stage of computing, the pursuit of Single Source of Truth. The official name is Customer 360 Truth and it is a new set of capabilities that allow companies to connect, authenticate and govern customer data and identity across Salesforce. The goal is to provide a complete view and deeper understanding of every customer so that companies can deliver extremely personalized customer experiences.
Marc Benioff, co-CEO of Salesforce, discusses Customer 360 Truth at their annual Dreamforce conference with Jim Cramer of CNBC:
Single Source of Truth – A Computer Science Holy Grail
360 Truth is another amazing thing that we’re introducing here (at Dreamforce 2019) that has been the holy grail of computing. It’s what we call SSOT, the single source of truth. We’ve had three amazing waves of computing. They are stems of record, systems of engagement, and systems of intelligence including AI. We’re now entering the fourth stage of computing. It’s the pursuit of Single Source of Truth, and we’ve built that into our platform.
This is a computer science holy grail that we’ve been trying to put together for a long time. Now because we acquired MuleSoft and because we acquired Tableau we are closer to providing for our customers the Single Source of Truth for their customer information.
Enables Companies To Build a Single Source of Truth
The company describes Customer 360 Truth as a new set of data and identity services that enable companies to build a single source of truth across all of their customer relationships. They say it connects data from across sales, service, marketing, commerce and more to create a single, universal Salesforce ID for each customer.
All of a customer’s previous interactions and shared preferences are brought together to create a complete view so companies can better serve and even predict their needs, whether addressing a customer service problem, creating a personalized marketing journey, predicting the best sales opportunities or surfacing product recommendations.
Salesforce Launches Single Souce of Truth | Benioff: A Computer Science Holy Grail
From the Salesforce Press Release:
The Holy Grail of CRM: A Single Source of Truth
Nearly 70 percent of customers say they expect connected experiences in which their preferences are known across touchpoints. However, organizational and technical complexity often gets in the way of meeting these expectations. Companies have legacy infrastructure and data silos, leading to fragmented data and fragile integrations between systems. Inconsistent methods for accessing, reconciling and activating customer data make it challenging for companies to deliver connected experiences across these systems. As a result, companies often have multiple usernames, email addresses, or purchase histories for the very same customer across different systems, and managing a customer’s consent and contact preferences across the business becomes harder as new data regulations come into play.
Having a source of truth—a single, trusted place that brings together all the customer data needed to deliver amazing experiences—has been the holy grail of CRM. Today Salesforce is delivering it.
Deliver a Trusted, Personalized Customer Relationship With Customer 360 Truth
Customer 360 Truth enhances data management across Salesforce apps and other systems, and provides instant access to consistent, reconciled customer data. Services include:
Customer 360 Data Manager: Delivers the ability to access, connect and resolve a customer’s data across Salesforce and other systems, using a canonical data model and a universal Salesforce ID that represents each customer. With a click-based user interface for app and data management, admins can easily establish trusted connections between data sources to prepare, match, reconcile and update the customer profile. The reconciled profile across apps enables employees to pull up relevant data at the time of need from any connected system, such as when a service agent may need to pull a list of past purchases from an order system to better assist in solving a problem.
Salesforce Identity for Customers: Removes friction from the login experience and enables a single, authenticated and secure relationship between a customer and all of a company’s websites, e-commerce stores, mobile apps and connected products. Instead of having separate logins and profiles that lead to disconnected experiences, customers now have one login across all of a company’s digital properties. Identity for Customers also elevates trust and compliance with a simple to use two-factor authentication. And it allows companies to obtain valuable customer insights with the ability to analyze engagement and usage with identity reporting and analytics.
Customer 360 Audiences: Builds unified customer profiles across known data such as email addresses and first party IDs and unknown data such as website visits and device IDs. It then creates customer segments and marketing engagement journeys from those profiles and delivers AI-powered insights, like lifetime value and likelihood to churn. Customer 360 Audiences goes beyond traditional customer data platform (CDP) capabilities and extends the power of CRM to connect customer interactions across various touchpoints — for example, a customer who was redirected from an email campaign onto the website through a service interaction — and make the profile data available in real-time to optimize the experience.
Privacy and Data Governance: Enables companies to collect and respect customer data use and privacy preferences, as well as apply data classification labels to all data in Salesforce. Companies can easily understand what types of data they have, what uses of data customers have approved and how best to interact with them. These capabilities can help customers address obligations from regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), with respect to data governance and customer consent.
Introducing the Cloud Information Model
Salesforce Customer 360 Truth is powered by the Cloud Information Model (CIM), an open source data model that standardizes data interoperability across cloud applications. The publication of CIM is enabled by MuleSoft’s open source modeling technology, providing multiple file formats to make it easy to adopt CIM with varying applications. By easily integrating data in the cloud, developers can build new products that deliver connected and personalized customer experiences. CIM reduces the complexities of integrating data across cloud applications by providing standardized data interoperability guidelines to connect point-of-sale systems, digital marketing platforms, contact centers, CRM systems and more. Developers no longer need to spend months creating custom code. Instead, they can adopt and extend the CIM within days to create data lakes, generate analytics, train machine learning models, build a single view of the customer and more.
Unleash the Power of Customer 360 Truth with MuleSoft Anypoint Platform
Customer 360 Truth allows companies to connect siloed customer data sources to a single source of truth, across Salesforce apps or third-party data using MuleSoft. With MuleSoft Anypoint Platform™, organizations can easily build APIs that connect any application, data, or device to Customer 360 in an application network, creating a truly complete customer view.
At Dreamforce, MuleSoft also announced new innovations and learning modules, empowering anyone to become an Integration Trailblazer and create connected customer experiences.
Comments on the News
“Having a complete view of the customer is not a new idea, but it has been difficult to achieve. Companies have siloed data; disconnected apps; a complex, patchwork of sometimes incompatible services; and no way to connect it all,” said Patrick Stokes, EVP, Platform Shared Services, Salesforce. “Customer 360 Truth overcomes those challenges, creating a single source of truth that is the foundation for delivering smart, personalized customer experiences across every touchpoint.”
“In order to truly succeed with delivering a great customer experience, you have to adopt an agile platform that fosters growth and supports constant innovation,” said Rick Fuson, President and Chief Operating Officer, Pacers Sports & Entertainment. “With the Salesforce Customer 360 platform, Pacers Sports & Entertainment has real-time visibility into all aspects of our business and can operate more efficiently across channels, increase per customer loyalty and drive innovation across the organization.”
“Connecting customer data and managing consent is more important than ever in light of changing customer expectations and increasing regulations,” said Alan Webber, Program Vice President for Digital Strategy and Customer Experience, IDC. “As a result, companies are prioritizing data unification in ways that will lead to more loyal and valuable customer relationships. Salesforce Customer 360 Truth will help companies break down data silos and deliver the experiences customers expect.”
Salesforce Customer 360
Customer 360 Truth is part of the Salesforce Customer 360, which includes industry-leading apps spanning sales, service, marketing and commerce, and across every customer touchpoint. The Customer 360 Platform is an underlying set of services and APIs including AI, blockchain, mobile, security, voice and other capabilities that allow companies to connect every customer, empower every employee, and deliver continuous innovation. Salesforce will power more than two trillion B2B and B2C transactions this year for more than 150,000 companies and millions of Trailblazers—those individuals and their organizations who are using Salesforce to drive innovation, grow their careers and transform their businesses.
SAP SE announced a collaboration program with Amazon Web Services (AWS), Google Cloud and Microsoft Azure at SAPPHIRE NOW 2019. The project, named “Embrace” will also include global strategic service partners (GSSP).
At the same time, Infosys—“a global leader in next-generation digital services and consulting”—has announced Innov8, a new program designed to help “clients transform their business model to one based on predictable OPEX-based costs.”
According to a press release Infosys issued Tuesday, the two companies are planning a collaborative alliance, to bring the benefits of Embrace and Innov8 to customers “and offer flexible points of entry to the SAP environment for both existing and new cloud users, all within one comprehensive end-to-end business solution.”
With more than 70 ready-to-deploy artificial intelligence, machine learning, blockchain, analytics and Internet of Things use cases, Innov8 provides a way for companies to invest, innovate and build intelligent enterprises.
From the Infosys Press Release:
Dinesh Rao, Executive Vice President, Infosys, said, “Navigating the cloud ecosystem requires a structured strategy that provides a consolidated view into a company’s overall transformation journey. Through Innov8, we are focused on leveraging our industry knowledge and experience to accelerate the delivery of business solutions. Through this collaboration, we are focusing on ensuring that our clients are able to rapidly adopt tomorrow’s business models today.”
David Robinson, Senior Vice President, SAP Cloud Business Group and Global Lead, Embrace program at SAP said, “SAP is excited about its plans to partner with Infosys to help clients invest in purposeful innovation to build their intelligent enterprise. Innov8 for Embrace leverages Infosys’ industry knowledge and expertise on SAP and cloud technologies. This is a platform that is delivered on a cloud hyperscale environment with SAP digital solutions delivering end-to-end business outcomes at accelerated pace. We couldn’t be more excited.”
David McIntire, IT Services Research Director at NelsonHall, said “The value of SAP S/4HANA adoption extends beyond IT and into transforming how businesses operate. Innov8 for Embrace has the potential to combine industry-tailored intelligence, applications and processes with simplified OPEX pricing and cloud hosting into an integrated offering aimed at helping companies maximize the business value of adopting SAP S/4HANA.”
“Each time we take a look at technology we look at all of the options,” says Domino’s CEO Ritch Allison. “Do we build it? Do we partner? Do we go out and buy something. For the things that are really core to our business like our point-of-sale system and our digital ordering capabilities, we believe we have to own those. But there are other places like new autonomous delivery where we’ll go out and partner with someone, like Nuro for example, because we’re not going to build the car itself. We’re going to build the interface around it for the customer.”
Ritch Allison, CEO of Domino’s, discusses how the company is using technology, innovation, and reimagined stores to drive growth.
We Look At All Technology Options
We’ve had a very strong and profitable delivery business for many years now. So unlike a lot of the other restaurant brands, we don’t have to decide to get in or not or try to figure out which of these third-party aggregators is ultimately going to be the winner at the end of this shakeout. We’re really focused on continuing to build that delivery business with our franchisees and doing it in a profitable way for them. We believe that means doing it on our own.
Each time we take a look at technology we look at all of the options. Do we build it? Do we partner? Do we go out and buy something. For the things that are really core to our business like our point-of-sale system and our digital ordering capabilities, we believe we have to own those. But there are other places like new autonomous delivery where we’ll go out and partner with someone, like Nuro for example, because we’re not going to build the car itself. We’re going to build the interface around it for the customer.
We’ve Got a Terrific 4-Wall Economic Model
Most certainly construction costs have gone up with the combination of tariffs on steel and aluminum. But also we’re in a really robust labor market right now and so wages have risen in construction as well. The good news for us is we’ve got such a terrific 4-wall economic model that even with some of those rising costs we’re still able to deliver to our franchisees a great investment. We are averaging two and a half year average paybacks for Domino’s Pizza today in the US.
We’re not really seeing (much impact) in our business with respect to trade tensions. The great thing about our business model outside the US is we have international master franchisees. They’re locally owned, they employ the local citizens, and we buy almost all of our ingredients locally as well. We’re really building businesses that are benefiting the economies of these international markets that we operate in. So in places where we’re growing rapidly like China, India, and Brazil, we’re an emerging part of the economy in those countries.
85 Percent of Our Global Footprint Reimaged
We have grown our carryout business significantly over the course of the last ten years. A big part of that is having a great value offer for our customers. It’s about having the reimaged stores. We’ve now got 85 plus percent of our global footprint reimaged. Also, it’s about getting more stores on the map closer to our customers. The number one criteria when consumers choose is convenience with carryout. So we’re going to continue to build more units and get closer and closer to them.
How Domino’s Is Using Technology and Innovation To Drive Growth – CEO Ritch Allison
“Retailers and brands took advantage of the buzz, the demand, the awareness, that Amazon has created and really rode that wave for great growth,” says Rob Garf, VP of Industry Strategy and Insights for Salesforce. “Retailers didn’t just ignore Prime Day, but they leaned into it. They really recognized this manufactured holiday, recognized the demand that was being created, and really took advantage of the consumers and their willingness to look for a good deal.”
Rob Garf, VP Industry Strategy and Insights for Salesforce, discusses how retailers “leaned into” Amazon Prime Day, taking advantage of the buzz and overall consumer interest, to initiate their own Prime marketing. Rob was interviewed by Owen Milbury, Senior Manager, Analyst Relations for Salesforce:
Retailers Didn’t Just Ignore Prime Day, They Leaned Into It
What we saw is that this manufactured holiday, Hallmark has to be proud, really rose all ships if you well. The tide has risen where we saw 37 percent year over year growth for global retailers other than Amazon. What’s really interesting is that it just didn’t take place over those two days, but rather the entire month of July. We saw July having a ten percent higher growth rate than any typical month. Retailers and brands took advantage of the buzz, the demand, the awareness, that Amazon has created and really rode that wave for great growth.
Retailers didn’t just ignore Prime Day, but they leaned into it. What we found was that emails were at a heavy double-digit increase week over week. The other really interesting thing is our team stepped back and we actually looked at the Internet Retailer 500. We subscribed to all of their email lists and we went to their homepages over the last week. What we found was 51 percent of the IR 500, more than half, did some sort of promotion either on their home page or through email.
They just didn’t ignore it, they leaned into it. We found that 17 percent of the IR 500 mentioned either Prime Day or Black Friday in July as part of those promotions. They really recognized this manufactured holiday, recognized the demand that was being created, and really took advantage of the consumers and their willingness to look for a good deal.
We Saw Two Breakouts, Apparel, and Footwear
Consumer electronics was certainly big. But we also saw two breakouts, apparel, and footwear. That’s really important because Amazon is leaning into their own private label. So these brands need to think how to differentiate. They didn’t just go to market and give deals. They also promoted limited edition products, special assortments, customizable merchandise, and even looking for subscriptions to be able not only to attract but to retain them over time.
The other one was consumer product goods. What was interesting about that was typically what you find in a grocery store they use the retailer as the intermediary, they’re looking generally to leapfrog these retailers. According to Salesforce research, 99 percent have some sort of active direct to consumer (D2C) type of initiative underway. That was no different this Amazon Prime Day. They were taking advantage of the buzz and really looking for ways to engage the consumer directly.
49 Percent of Orders For Non-Amazon Retailers Were On Mobile
When you think about the time of the year, most of Europe was on holiday, most of the US was taking time off as well, they’re not tethered to their computer. They don’t have the luxury of sitting down and searching that way. That showed in our data. In fact, 49 percent of orders for all non-Amazon retailers were done on a mobile device. This just speaks to the fact we’re on the go, the phone is the remote control of our daily lives.
We’re using it to break through the friction that usually exists between inspiration—I like something and I want to buy it—and then actually purchasing. Just for a point of context, that was a 20 percent increase year over year. It’s become a bellwether for shopping not only during the rest of the year but in particular on Prime Day.
Retailers Saw Prime Day As a Test Run For Holidays
Retailers are seeing this as really the test run for the holidays. They’re looking at their mobile strategy. How are they going to breakdown their friction? They want to make sure that they have mobile wallets so that they can really get through the checkout process. They are incorporating artificial intelligence so not forcing the consumer to swipe five times down the phone to find if you like this you might like this. Instead, putting it right above the fold.
They are also looking for fulfillment as well. As you are thinking through towards Cyber Week and the overall holiday season, and with it being five or six days shorter between Thanksgiving and Christmas, how are we going to use the store as a fulfillment center? You really bump up against that shipping deadline and need to also be able to fulfill that for several days after. Retailers are really cutting their teeth. They’re really bearing down. They’re looking at Prime Day as a way to get ready and gear up and go full force to back to school, Halloween, and through the holiday season.
https://youtu.be/JHm8PZ2z1xU
How Non-Amazon Retailers “Leaned Into” Prime Day To Increase Sales – Salesforce Execs Explain
“The Instagram effort is one that we predicted for a long time,” says Button CEO Michael Jaconi. “I wasn’t the most popular guy in the venture capital pitch room saying hey, the world is moving to commerce. They said advertising makes so much money. In reality, what I think Facebook is doing is very smart. They’re trying to habituate consumers around driving transactions from their platform. For the future of advertising, especially in mobile, the way that you’re going to be able to make money and build durability into your business model is to give consumers what they want.”
Michael Jaconi, CEO of Button, discusses how mobile commerce is rapidly replacing ads as the primary revenue source for publishers and social platforms such as Facebook and Instagram in an interview on Bloomberg Technology.
We’re Trying To Build an Internet Built on Actions, Not Ads
The Button platform really sits above the stack. Where we sit is really in this place where publishers integrate with Button to connect their consumers to their next step. What we’re trying to build is an internet that we think is going to be better, and an internet built on actions, not ads. What the publisher technology that we built does is it sits inside of an application, renders an actual button, and then connects them to the place of intent that their users ultimately may want to go. Whether that’s a mapping app going to Uber or an app like rewardStyle that is powering an influencer network to drive sales at ASOS.
There’s a lot of change happening and Button is trying to invest in that ourselves. You’re seeing the platform’s, Apple and Google, do a lot to make this easier with Facebook’s recent launch of Instagram Checkout. You’re obviously seeing that they’re investing a ton in making the checkout process more seamless. What we fundamentally believe when we started the company was that if we could build a method that would make consumers have a delightful experience, giving from that moment of intent to the moment of fulfillment, saying hey, I want a ride or I want to book a reservation, and having that be as few taps as possible, we would win and the companies that we’re building on top of our platform would win.
You’re seeing innovation happen with sign-on and the actual account credentials being passed more easily between experiences. Apple Pay, of course, the Google Checkout experiences and PayPal is making this easier. You’re seeing strides being made but there’s still a long way to go. It’s still a lot easier to purchase on your PC unfortunately.
Facebook Trying To Habituate Consumers Around Driving Transactions
In our judgment, we think that the Instagram effort is one that we predicted for a long time. I wasn’t the most popular guy in the venture capital pitch room saying hey, the world is moving to commerce. They said advertising makes so much money. In reality, what I think Facebook is doing is very smart. They’re trying to habituate consumers around driving transactions from their platform. Everyone is looking at Amazon with a little bit of fear and a little bit of jealousy. What you’re seeing is that they’re looking at Amazon’s power as being the habituated source of transactions. They are saying look at how Amazon is growing its ad business.
If you look at Amazon’s business, the fastest growing channel it’s had in terms of revenue growth has been its advertising business for the past eight quarters in a row. What’s fascinating about that is that every company wants to grow and be a part of that puzzle or that story. That’s the thing that we’re seeing grow most quickly. For the future of advertising, especially in mobile, when display and all types of advertising are under fire, the way that you’re going to be able to make money and build durability into your business model is to give consumers what they want. For us, we’re trying to give that power to every publisher that exists and to every company that has intent.
Facebook Trying To Habituate Consumers Around Driving Transactions, Says Button CEO Michael Jaconi
“We’ve learned this past year that the tracking system we have with the NFL is actually considered to be the best by the broadcasters, coaches, and the fans,” says Zebra Technologies CEO Anders Gustafsson. “Our type of technology works particularly well with football but it would also work for basketball, ice hockey, and soccer. With ice hockey, the challenge is the puck. How do you track the puck and put the tag inside the puck? We can do it but it’s more costly. With basketball, they have been more focused on the ball than the players.”
Anders Gustafsson, CEO of Zebra Technologies, discusses how their tracking technology is being integrated deeply within sports and business in an interview with Jim Cramer on CNBC:
Our Tracking Technology Works Particularly Well With Football
We’ve learned now this past year that the tracking system we have with the NFL is actually considered to be the best by the broadcasters, coaches, and the fans. The NFL owns the data so we can’t give (fantasy players) access to the data. I think they give access to some of the data but not all the data. Then you would have all the information you could possibly want to have about every player on all of the teams.
Our type of technology works particularly well with football but it would also work for basketball, ice hockey, and soccer. With ice hockey, the challenge is the puck. How do you track the puck and put the tag inside the puck? We can do it but it’s more costly. With basketball, they have been more focused on the ball than the players.
Zebra Tracking Technology Works Particularly Well With Football
We Are Becoming An Essential Part of Retailers’ Strategies
Savannah is our data platform. We can connect all sorts of devices or sensors on the south side and on the north side we can have APIs to all sorts of other applications. We can provide a lot of analytics around what’s happening there. We integrate with a lot of independent software vendors. If you look at large companies like Oracle, SAP, Manhattan, and JDA, they’re all partners of ours. We exchange data with them and we provide data that they use for their operations. We also have our own software capabilities. We bought a company called Profitect. It does any predictive analytics. This is a good example of this but we have other software capabilities also.
We are now becoming an essential part of retailers’ strategies for building omnichannel and ecommerce capabilities. Historically, we were probably viewed a bit more as a tactical device supplier. Today we’re much more of an integral part of enabling them to execute on their strategy. We moved ourselves up the solution stack to be able to deliver more value to them.
Companies are now tracking employees, patients, assets
Today, more and more things are being tracked and there are more and more efficiencies out of this. Companies are now tracking employees, patients, assets, all of these things. We said we provide the performance edge to the front line of business by having every employee, device, and technical thing being connected and optimally utilized and visible to the network.
Tableau (a company recently bought by Salesforce) would more than likely integrate our data. We could be a source for data insight analytics for them. We aspire to get those kinds of valuations (and the higher multiples that Tableau got when they sold to Salesforce). We also overlap (with Honeywell) in a number of areas but we do quite a few different things also. We have our own strengths and we compete with them but not everywhere.
Zebra Tech Tracking Technology Integrating Deep Into Sports and Business – CEO Anders Gustafsson
“We’re a platform that helps some of the biggest brands in the world really understand their customers in live time and communicate with them while they’re in an experience,” says Medallia CEO Leslie Stretch. “Instead of a survey after they’ve left a hotel, they communicate them while they’re there, check in on the experience and improve it. This helps them retain their customer and perhaps sell them another experience. It’s this machine learning platform that does that.”
Leslie Stretch, President and CEO of Medallia, discusses the company’s IPO and how the company uses machine learning to react to customer signals in real-time rather than after they leave an experience in an interview on CNBC:
Our Machine Learning Platform Helps Brands Retain Their Customers
We’re a Silicon Valley tech company. We’re a platform that helps some of the biggest brands in the world really understand their customers in live time and communicate with them while they’re in an experience. So instead of a survey after they’ve left a hotel, they communicate them while they’re there, check in on the experience and improve it. This helps them retain their customer and perhaps sell them another experience. It’s this machine learning platform that does that.
Anything is a signal to us, a survey, an IOT signal, a transaction, somebody buys something, they have a bad experience at the pool, or they’re on an airline and they don’t quite like the service that they’re getting, they can feed that back immediately instead of waiting until the experience is finished. We’re all about platform and signal. We’re very different from the survey companies, the feedback companies, which are the old experience economy companies. It’s the application of deep Silicon Valley technology to the problem.
The Customer Is At the Center of Every Digital Transformation
Customer experience has become really a major theme for every big brand in the world today. I also think that our technology is innovative and very different. The application of machine learning and the platform and just the operationalization of a private Silicon Valley company are really what I’ve done in the past. Just bringing basic blocking and tackling to go to market and marketing and building up the salesforce. So very simple and taking the story out to a bigger market.
We actually just signed a revenue share partnership with Salesforce. We have a partnership for Marketing Cloud with Adobe. They’re great alliances for us. We can present our machine learning, our unstructured data, into their Marketing Cloud, Sales Cloud, and Service Cloud. That’s brand new for us this year. It’s great to go to market with leaders like that. Both Adobe and Salesforce completely understand the customer is at the center of every digital transformation and we are at the center of that.
It’s Not For the Faint-Hearted, But We Invested a Ton In It
We spent more than a half a billion dollars building this plot platform. That sets us apart from the traditional simple survey vendor. We’ve spent a ton of money on the privacy layer and on the security layer. We’ve worked already for a decade with some of the biggest brands in the world whose customer information is precious. We’re HIPAA certified for healthcare as well. So we take that very seriously. It’s not for the faint-hearted, but we invested a ton in it and it’s worth it.
Our Machine Learning Platform Helps Brands Retain Their Customers, Says Medallia CEO Leslie Stretch
“The pace of digitalization in China is much faster than anywhere in the world and in a sense, it’s much deeper than anywhere else,” says AXA China CEO Xavier Veyry. “In China we really see an acceleration in the way companies leverage digital tools. I think in China digitalization is accelerating and I believe that in a lot of ways China is really leading the innovation in terms of worldwide interaction with the customers on the digital front.”
Xavier Veyry, CEO of AXA China, discusses how China is leading the world in digitalization and how digitalization is impacting the insurance industry and customers in an interview on CNBC:
The Pace of Digitalization in China is Much Faster Than Anywhere in the World
AXA has been one of the pioneers in terms of digital insurance in many places in the world. This is an industry, this is a trend, this is a fundamental shift in our industry that we have been pioneering in many geographies, most specifically in Europe and sometimes in Asia. Here in China, I would say that the landscape is very different. The pace of digitalization in China is much faster than anywhere in the world and in a sense, it’s much deeper than anywhere else.
In China we really see an acceleration in the way companies leverage digital tools. The fact is that China has a very unique ecommerce platform and a very unique e-payment platform. In our analysis e-payment is the key driver toward facilitating the purchase of insurance products. It’s true that some insurance products can be designed for ecommerce for digital interactions. Others require a more personal touch and personal interaction with customers. It really depends on the product that we are manufacturing and the product that we are presenting to the customers.
I think in China this is accelerating and I believe that in a lot of ways China is really leading the innovation in terms of worldwide interaction with the customers on the digital front.
“What’s happening is that the subscription economy is just taking over the world,” says Gainsight CEO Nick Mehta. It shows up for our consumer lives with Netflix, Amazon, etc. It shows up at work as well. Because of that, all of those companies just can’t afford to just sell to their customers and move on. They’ve got to make them successful.”
Nick Mehta, CEO of Gainsight, discusses how both B2b and B2C subscription businesses are booming because they are better for the customer in an interview on Bloomberg Technology:
The Subscription Economy Is Taking Over The World
I just heard about the deal (SalesforcebuyingTableau Software for $15 billion) this morning. It just felt perfect for both sides. Tableau is one of the most respected companies in general and Salesforce has proven that they can buy companies and put them through their distribution channel. I think both customers are very committed to customer success.
I think it just keeps accelerating. If you look at it overall there is a Subscription Economy Index that Zuora puts out and it shows that companies that are in subscription businesses are growing five times faster than the average S&P traded peer company. What’s happening is that the subscription economy is just taking over the world. It shows up for our consumer lives with Netflix, Amazon, etc. It shows up at work as well. Because of that, all of those companies just can’t afford to just sell to their customers and move on. They’ve got to make them successful.
Subscriptions Are Great For Consumers
Subscriptions are great for consumers. We get to choose what we want, we get to turn it on, and in most cases, we can turn it off. Sometimes we have to make a phone call to make that happen. The phone call is annoying but we have choice. In the business world that’s happening now. They have choice. Before they used to buy things, install them, and have no ability to switch. You were just stuck with what you got.
In this new world customers have choice and therefore all the vendors, whether it’s a Salesforce or a Tableau or a Slack, have to proactively make sure that you are using all the stuff you buy and getting more value. Also, not just getting more value, that you are getting more value than any other alternative out there.
There Is A Huge Megatrend That Is Happening
Slack is a very special company. It’s sort of this triple threat. Customers love it, we run our whole business on Slack. The numbers are amazing in terms of growth rate, in terms of efficiency and net retention. Their existing customers keep spending more money with more than 140 percent net retention. They are also a great culture. I think Slack is one of those businesses that is built for the long term. They can go public in any market.
There is a huge megatrend that is happening. We have almost this dissonance where technology in some ways is coming more into our lives and taking away more and more of humanity and the people in business. But on the flip side, all of us are longing for a more personal and human connection to the businesses that we work with. We are not ready to turn the whole world over to AI and machine learning. We need that human connection. What’s happening is companies are saying I need to treat my customers more like human beings. I need to be more proactively focused on customer success and make sure that they are getting value.
They’re also saying I need to treat my employees more like human beings. I need to give them great technology like Slack, like Zoom, and like other great technologies that are going public this year that are helping employees be more successful. There’s this big approach, we call it human first business, which is really changing the way people think about work.
The Subscription Economy Is Taking Over The World, Says Gainsight CEO Nick Mehta
“We sit on reams of data with 750 million visits to Expedia Group properties every single month,” says Expedia CEO Mark Okerstrom. “That just gives us an incredible amount of understanding around what travelers are looking for, how we can tailor our search results, how we can tailor the recommendations we give, the advertising that we show, and that’s just the beginning. We’re also using AI to help inform some of our lodging partners with pricing tactics, to help them price more effectively both in the alternative accommodation space and in the traditional lodging space.”
Mark Okerstrom, CEO of Expedia, discusses how the online travel giant is using data and AI to power its pricing tactics in an interview on Bloomberg Technology:
We’ve Always Been At the Forefront of Travel
We’ve always been at the forefront of travel. We’ve been at this for 20 years. The one thing that has been consistent for 20 years yeah is this is an incredibly competitive industry. Despite all of the competitive forces that have acted on us, Expedia last year did a $100 billion dollars of bookings, multiples of the size of Airbnb and many of these players out there. We’ve got thousands and thousands of the top engineers and data scientists and product minds in the world focused on travel. That’s how we stay ahead.
VRBO has been around for a very long time. If you go back in time, people used to talk about getting a VRBO for the weekend. It was the noun. s we went through and did a ton of research here in the US and also internationally about all of the different names we could call the new VRBO, VRBO was the one that actually resonated the most. So we decided to put all of our effort behind that brand. We’re pretty excited about rolling out globally in the coming years.
M&A is always part of our playbook, so I would never say never (regarding more acquisitions). But we’re pretty happy with what we’ve got in alternative accommodations and we’re pretty excited about putting all our efforts behind VRBO.
Global Travel Industry Generally Looks Pretty Healthy
So far so good (regarding tariff impacts). It looks like a healthy travel environment to us. Recent research done by Expedia here in the US is 85 percent of people are planning on taking a trip this summer and 15 percent were for budget constraints. This is broadly consistent with what we’ve seen. Americans are traveling. The global travel industry generally looks pretty healthy. We’re fortunate that we are a global business.
In good times and bad times we definitely see shifts in travel patterns but people often just take their trips. It’s like the last thing they cut. Maybe they’ll take a trip a little bit closer to home, they won’t take that trip overseas, but they travel. If you look at our results over the 2008-2009 period, for example, those were some of our strongest years.
Expedia Pricing Tactics Powered By AI and Reams of Data
We sit on reams of data with 750 million visits to Expedia Group properties every single month. That just gives us an incredible amount of understanding around what travelers are looking for, how we can tailor our search results, how we can tailor the recommendations we give, the advertising that we show, and that’s just the beginning. We’re also using AI to help inform some of our lodging partners with pricing tactics, to help them price more effectively both in the alternative accommodation space and in the traditional lodging space. Honestly, we’re just getting started.
We’ve been doing the one-stop shop before it was cool. We’ve been doing it for 20 years. Not only are we about search but we’re also about booking and taking care of people during the trip. No one else can do it.
Expedia Pricing Tactics Powered By AI and Reams of Data, Says CEO Mark Okerstrom
