Marketing DX is the use of data and digital technology to update the marketing process. By promoting marketing DX, you will be able to respond to changes in the business environment and contribute to strengthening your competitiveness. This time, in addition to the benefits and specific methods of promoting marketing DX, we will also introduce success stories of companies.
What is Marketing DX?
Marketing DX refers to the fundamental transformation of conventional marketing processes by utilizing data and digital technology. We aim to innovate by incorporating data and digital technology in all marketing operations, including market research, product development, and customer development.
DX (Digital Transformation) is a concept that uses digital technology to transform business and people’s lives and realize a better society. This concept refers to changing not only products and services, but also business models and operations themselves.
Furthermore, data and digital technology in DX are a means of transformation, but simply introducing them cannot be considered true DX. The essence of marketing DX is to rebuild the entire business using data and technology and create innovative value.
What is the difference between marketing DX and digital marketing?
Marketing DX refers to the fundamental transformation of the entire marketing process by utilizing data and digital technology. On the other hand, digital marketing refers to marketing measures that utilize digital technology.
For example, promoting products using web pages and SNS, or identifying targets from accumulated sales data and sending direct mail are examples of digital marketing. In other words, digital marketing can be said to be one of the means to promote marketing DX.
Background to why marketing DX has become important
According to a report by the Ministry of Economy, Trade and Industry, Japan is lagging behind in digitalization in various fields, and if this situation continues, economic losses are expected to increase year by year. The losses in the business field are particularly large, and it is estimated that if marketing DX is not addressed, economic losses of up to 12 trillion yen will occur annually from 2025 onwards.
The Ministry of Economy, Trade and Industry has described the possibility of huge economic losses as the “2025 cliff,” and has presented it as an important issue that corporate managers should address with a sense of crisis. The government has emphasized that in order to avoid the 2025 cliff, it is essential to organize the complicated existing systems, introduce the necessary digital technology, and realize DX.
In other words, in order to overcome the cliff of 2025, it is necessary to work on early marketing DX.
Benefits of promoting marketing DX
By promoting marketing DX, companies can enjoy the following benefits:
These are important benefits for efficient and effective marketing. Let’s take a closer look at the benefits of each.
Able to make decisions based on quantitative data
Marketing DX utilizes a huge amount of data, both offline and online. Increasing amounts of data allow you to make decisions that best meet your customer’s needs.
In the conventional situation, when the amount of data increases, it takes a lot of time to analyze it, making it difficult to respond quickly. However, by utilizing digital technology, it becomes possible to make quick decisions even when the amount of data increases.
In business, not only accuracy but also speed is important. Digitalization is essential for making quick decisions based on quantitative data.
It is possible to improve work efficiency and productivity.
Digitizing your business can lead to efficient business execution and improved productivity. By digitizing processes that were traditionally handled by humans, we can not only shorten work time, but also reduce costs such as personnel expenses, leading to improved productivity.
Furthermore, one of the benefits of marketing DX is that you can avoid having marketing tasks become individualized. When work becomes dependent on a specific person, there is a risk that the work will be delayed if that person is absent. Decentralization of work to individual employees not only threatens business continuity, but can also lead to a decline in work quality.
Digitalization allows anyone to be in charge of tasks, making it possible to carry out tasks consistently regardless of the presence or absence of the person in charge. This will help stabilize work quality and promote growth as a highly reliable company.
Enables creation of innovative business models
By analyzing large amounts of data accumulated both offline and online, you can accurately understand customer needs and sometimes create opportunities to develop innovative marketing measures.
As we adapt to customer demands, new business models may emerge. By embarking on a business model that has not yet been tried in the industry, you may be able to differentiate yourself from other companies and establish a unique position within the industry.
Efficiently automate marketing activities
From data collection and analysis to target identification and approach, all of these steps can be automated using digital technology. Marketing automation (MA) tools are specialized tools for automating marketing activities. MA tools are indispensable to achieve efficient marketing.
“Switch Plus” is a CMS + MA tool that provides the functions necessary for web marketing operations. You can easily start MA by simply linking with your existing customer list. Dedicated personnel provide support, so even those who are new to MA tools can implement it smoothly. First, you can use a free trial account, so please try it out.
O2O (Online to Offline) marketing can be realized
O2O (Online to Offline) marketing is a marketing method that guides users from online platforms such as owned media and web advertising to offline events such as exhibitions and seminars. Building personal relationships through actual face-to-face communication allows for more accurate marketing.
Event marketing that utilizes offline events is a classic method compared to web marketing, but its benefits are wide-ranging, so it will continue to attract attention in the future.
Challenges in marketing DX
When promoting marketing DX, there are issues such as the following.
Let’s take a closer look.
Lack of skills and human resources
To realize marketing DX, human resources with the skills to connect digital technology and marketing knowledge are essential. However, human resources with these skills are limited and can be difficult to secure due to intense competition.
In addition, high demand causes frequent movement of human resources, so even if you once secure skilled human resources, there is a good chance that they will flow to companies with better conditions. Therefore, companies will need to work on creating an environment in which they can continue to retain human resources.
Increased burden due to new system introduction
Introducing a new system may complicate business operations and increase operating costs. In order to avoid complicating operations, it is also necessary to choose a system that is highly compatible with existing systems and provide appropriate training and support.
Another point to consider is the cost of implementing the system. You need to budget for long-term effects.
Fixed industry structure that has continued for a long time
Traditional industry structures and existing business processes may resist transformation through DX. In particular, the implementation of new digital strategies may require adjustments in various areas, such as the relationship between advertisers and agencies, and the relationship between manufacturers and retailers. Collaboration and coordination across the industry may be required.
Appropriately overcoming these challenges and proceeding with marketing DX with a strategic approach is the key to success.
3 steps to proceed with marketing DX
Marketing DX will proceed in the following steps.
1. Use PEST analysis to set goals
2. Check the process from now to the goal
3. Implement measures in line with the process
I will explain step by step.
1.Use PEST analysis to set goals
PEST analysis is a framework that divides the external environment into four elements: politics, economy, society, and technology, and identifies factors that affect a company. Utilizing PEST analysis, we organize changes and threats in the external environment not only now, but also in 5 or 10 years, and set goals that we want to achieve through marketing DX.
For more information on how to perform PEST analysis, please see below. You can also download templates in PowerPoint format, so you can write directly on them and print them.
2. Check the process from now to the goal
After clarifying your goals, set specific sales forecasts and targets for each department. Then, take a closer look at the process from your current situation to your goal.
3. Implement measures according to the process
This is the stage where measures are implemented according to the process. We implement measures as planned and measure their effectiveness regularly. By analyzing areas for improvement based on the measurement results and reflecting them in the next measures, continuous improvement and effective implementation of measures can be achieved.
By following these steps, you will be able to effectively promote marketing DX and maximize your organization’s results.
The steps for web marketing are explained in detail in the following materials. Recommended for those who want to understand the basics of BtoB marketing using the web.
Key points for successful marketing DX
There are three key points to overcome the challenges and succeed in marketing DX:
Let’s look at each point.
Managers themselves deepen their understanding of marketing DX
Management’s decision-making and leadership are essential for the introduction and transformation of digital technology.
Even if the field wants to implement digital technology and tools, implementation can be difficult if management does not understand the need. Management needs to proactively increase their understanding of marketing DX in order to make quick decisions regarding capital and human resources investments.
Clarify the purpose and share it within the company
Marketing DX is not something that is promoted by IT personnel and management alone. This is because the introduction will not only change the marketing structure and operations, but may also have an impact on other departments such as sales.
When proceeding with marketing DX, it is important to clarify the goals you want to achieve through DX and share those goals throughout the company. Furthermore, it is important to inform employees about the reason for the introduction and the changes in the work content due to the introduction, so that each person has an awareness of working on marketing DX.
Clear shared objectives and communication will be necessary to gain company-wide cooperation and understanding.
Choose easy-to-use IT tools
One of the purposes of introducing IT tools into marketing is to prevent work from becoming individualized. By choosing tools that anyone can use smoothly, you can improve work efficiency and standardize work content.
The first thing you should consider introducing is a tool that visually displays your company’s data in an easy-to-understand manner and supports business decision-making. This is called a BI (Business Intelligence) tool.
Furthermore, if advanced data analysis or system coordination is required, consider cooperation with external partner companies. By outsourcing operations, you may be able to reduce implementation costs and increase cost-effectiveness.
Choosing the right tools and partner companies will greatly contribute to the success of marketing DX.
6 success stories of marketing DX
Marketing DX fundamentally changes traditional marketing. However, the scope is vast, and it may be difficult to understand what specific results will be obtained.
Therefore, we recommend checking out specific marketing DX success stories. By learning how to proceed with marketing DX and its effects through case studies, you will be able to get a more concrete image.
Coca-Cola Japan: Introduced “Coke ON” and achieved 45 million downloads (as of July 2023)
Coca-Cola Japan Co., Ltd. has introduced the mobile app “Coke ON.” If you hold this app up to a vending machine and purchase a drink, you will get 1 free drink for every 15 you buy. Through this initiative, we can not only expect to gain repeat customers, but also increase sales.
“Coke ON” is an app developed as a means to collect user usage data. We understand individual preferences through users’ usage of Coke ON, and use this information to distribute content and coupons that are considered to be highly effective.
As of September 2021, the number of downloads of “Coke ON” was 30 million, and in the following year, 10 million new downloads were recorded. As of July 2023, the number of downloads has increased to a total of 45 million. This can be said to be a successful example of marketing DX that combines the benefits of both users and companies.
Reference:
Coca-Cola Japan Co., Ltd. “Enjoy connecting vending machines and smartphones! New digital marketing service has started”
Panasonic Corporation: Achieved 20% increase in cost efficiency by using data for customer analysis
Appliances Company, a company within Panasonic Corporation, has introduced the highly scalable Treasure Data CDP to manage customer behavior logs obtained from customer membership organizations and product information sites. Additionally, data collected from call centers and field engineers is aggregated into Treasure Data CDP for customer data analysis.
The analyzed data is primarily used to optimize digital advertising operations and understand customer journeys. In particular, it seems that they were able to improve cost effectiveness by more than 20% when optimizing digital advertising operations.
Reference:
Panasonic Corporation “What we should pursue is not the customer journey, but “customer understanding.”
Yamaha Motor Co., Ltd.: Promoting DX with a long-term vision
In order to realize our philosophy of being a “Kando-Creating Company,” Yamaha Motor Co., Ltd. has set a long-term vision of “ART for Human Possibilities – People can be happier” by 2030.
To realize this long-term vision, it is essential to face people’s potential. Aiming to build close relationships with customers and win lifelong fans, Yamaha Motor has established a system that specializes in digital technology and is developing digital marketing.
Reference:
Yamaha Motor Co., Ltd. “Integrated Report 2022”
Askul Co., Ltd.: Promoting programs to strengthen DX human resource development
Askul Co., Ltd. operates the EC platform “LOHACO”. LOHACO has achieved a marketing transformation by emphasizing customer value in all processes, from product development to sales and inquiries, and by instilling this idea throughout the company.
Additionally, as part of our in-house DX human resources development, we have introduced our own training program, “ASKUL DX ACADEMY.” By developing in-house human resources through this program, we aim to speed up product development and technological support.
Reference:
ASKUL Co., Ltd. “Opening a unique training program “ASKUL DX ACADEMY” to develop in-house DX human resources”
USMH: Introducing smartphone payment service
USMH (United Super Market Holdings), which operates supermarkets such as Maruetsu, has been promoting DX of the customer experience. For example, we are among the first to introduce services that allow customers to purchase items in-store by scanning them with their smartphones, as well as cashless payments using apps.
In the future, it seems that they are considering collaboration between apps and EC, and are planning to provide services that match customer demand and market trends.
Reference:
United Supermarket Holdings Co., Ltd. “Notice of expansion of use of USMH smartphone payment “Scan%Go Ignica” to more than 500 stores”
Ezaki Glico Co., Ltd.: Deepen customer understanding and improve brand value
Ezaki Glico Co., Ltd., a well-known confectionery manufacturer, also provides novelty products with names engraved on them for corporations. The company has introduced MA tools to digitize processes from marketing to sales, and is also moving sales activities themselves online. By utilizing the analyzed data in marketing, we have significantly increased the number of leads and sales.
Furthermore, they applied the system used to provide novelty products to disaster stockpiling sales, and achieved a high order rate.
Reference:
Ezaki Glico Co., Ltd. “Glico’s Digital Strategy Toward Realizing Purpose”
Let’s deepen our understanding of marketing DX throughout the company and promote it.
Marketing DX is an approach that utilizes data and digital technology to bring about a revolution that completely overturns traditional marketing that relies on individuals. In order to realize transformation through marketing DX, it is important to deepen the understanding of DX within a company. All employees are required to recognize the benefits and work comprehensively.
In order to overcome the “2025 cliff” and respond to changes in the business environment, it is necessary to proactively engage in marketing DX. We hope that promoting marketing DX will lead to more effective business strategies in your organization.