Regardless of the regional political context and the back-and-forth in NAFTA negotiations, 2018 presents interesting challenges for those of us in marketing—according to research from Forrester, which recently announced its vision of what lies ahead for digital transformation in 2018.
Here are the most relevant insights, to which I intend to add a local perspective:
- 30% of companies will see a decline in Customer Experience (CX) performance: Customer expectations will outpace companies' ability to evolve or invent experiences, and companies won't adapt quickly enough or well enough. Local Context: The Customer Experience approach in Mexico is still very immature, so this trend and percentage are far from our current reality and context.
- 20% of CEOs will fail to act on digital transformation: Digital transformation is expensive, and not all companies will be able to afford the costs that impact business margins. In 2018, CEOs alongside CIOs and Chief Marketing Officers (CMOs) will need to orchestrate digital transformation across the entire enterprise. Local Context: Many business owners in Mexico are still coming to understand what digital transformation entails. I believe that locally this percentage will, for now, be much lower.
- Escalation of the digital talent crisis: The real story is the shortage of specialized roles like data scientists, information security analysts, high-end software developers, etc., which are foundational for CX and digital transformation. Local Context: This is a "harsh and worrying" reality. Mexican universities are not graduating talent with adequate digital knowledge or business vision. I have had the opportunity to review several marketing curricula, and they still focus on traditional topics and media. Extremely concerning!
- Intelligent agents will influence 10% of purchases: Platforms and intelligent agents will gather preferences, behaviors, transactions, and emotions, creating a rich profile of the individual. Intelligent agents will use this information to increasingly influence consumer choices and decisions. Local Context: There are initiatives in Mexico starting to pave the way, and solutions exist, but there is still a long way to go.
- Advertising spending will decrease in 2018: Don't panic, this doesn't mean we are entering a budget crisis, but rather a shift in priorities. Instead of investing in traditional media, marketing leaders will need to increase spending in other areas, such as: revitalizing CX to drive affinity, synchronizing loyalty programs with customer expectations, and decoding digital platform algorithms. Local Context: It is highly likely that by 2019 or 2020, digital ad spend in Mexico will surpass traditional advertising investment. It is a reality, and various industries must continue to expand their understanding of digital advertising's reach.
67% of retailers will not be prepared to leverage intelligent agents: Lack of skills, poorly differentiated brands, along with legacy operations will be major hurdles for traditional retailers. But the role of intelligent agents will be the "thorny" issue in 2018. Local Context: It is only a matter of time before intelligent agents or assistants proliferate in our country, thanks to language processing capabilities. That is how online shopping—e-commerce—will see a new boom, but I doubt that in Mexico even 10% of retailers are currently prepared.