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Cross-Industrial Convergence for Innovations in Marketing [ Dentsu, Inc. ]

Human Centric Innovation

Dentsu and Fujitsu commenced collaboration to help customers use the power of Big Data in marketing. The partnership aims to enable enterprises to better understand individual consumers in order to transform their marketing processes in the increasingly complex and diversified market. Dentsu and Fujitsu began providing a consulting framework to help maximize customer experience(*1) and establish an effective marketing approach. The collaboration has already assisted many companies, including Shizuoka Gas, in realizing marketing innovations.

Collaborate to maximize the potential of Big Data

Dentsu, Inc. is the world's largest advertising agency and the longstanding leader of the Japanese advertising market. The Dentsu Group is the fifth largest communication group worldwide. In recent years, the company has expanded the scope of its business beyond just advertising. It now supports end-to-end marketing activities for its customers in various industries. For this, Dentsu provides marketing solutions, helping them transform their businesses through establishing communication channels and sustainable engagement processes with consumers.

Today, behaviors of consumers are increasingly becoming more granular. It means businesses have to deal with more diverse data and channels. To maximize value in the changing environments, enterprises must better understand consumers and take effective marketing approaches. The analysis of data from a wide variety of channels is an indispensable tool.

In May 2013, Dentsu and Fujitsu began collaborating on helping their customers use Big Data and transform marketing activities. In many enterprises, information systems departments look after their core and front-end IT systems, while marketing departments are responsible for marketing strategies and promotions. It is crucial that these two functions work cohesively. Leveraging respective strengths in marketing and IT, Dentsu and Fujitsu aim to enable businesses to realize marketing transformation based on deeper understanding of individual consumers. Mr. Gosuke Kato, Director of the Dentsu Business Creation Center, Business Production II Dept., says, "By combining our marketing solutions with Fujitsu's Big Data analysis technologies, we can improve the experiences of our customers' customers and create innovations in marketing."

Jointly developed a framework to quickly understand buying intentions

The cross-industrial partnership, leveraging Dentsu's marketing design knowledge and Fujitsu's IT expertise, has been accepted by many enterprises in a variety of industries including utilities, automobiles, retail and finance. In November 2014, Dentsu and Fujitsu began to provide a consulting framework, bringing together the knowledge and experience developed from various collaborative projects.

This consulting framework begins with analyzing the business data from various departments whithin the enterprise as well as other open data by Fujitsu's Big Data analytics technologies. The results of the analysis are interpreted by Dentsu’s panel data(*2), producing effective engagement approaches to maximize customer experience.

A salient feature of this framework is to provide support for the end-to-end marketing process. It starts from understanding individual consumer's lifestyles, preferences and buying cycle, planning the most effective initiative, through to executing the plan and getting feedbacks for further improvement. The framework also allows enterprises to identify a right approach to potential customers who might be overlooked.

Shizuoka Gas wins praise for its marketing innovations

Shizuoka Gas Company, Ltd. used this framework to deliver innovation in marketing. The Japanese government plans to deregulate retail sales of household electricity in April 2016, followed by household gas in 2017. It is expected that incumbent players such as Shizuoka Gas will face tough competition against new entrants from other industries.

To cope with this challenge, Shizuoka Gas embarked on marketing activities that leverage Big Data. The goal is to understand needs of their customers so that the company can enable them to enjoy 'richer and more comfortable lives'. Shizuoka Gas selected Dentsu and Fujitsu as partners that can provide end-to-end marketing solutions using Big Data.

Through the project, Shizuoka Gas was able to grasp the profiles representing its around 138,000 existing customers, as well as their needs and purchasing cycles for the renovation of their houses. With this understanding of its individual customers, the company has taken a new approach according to the marketing process. Mr. Takaaki Sato, the Manager of ICT Promotion, Business Development Department at Shizuoka Gas, commented, "The framework allowed us to change our direction from a mass marketing approach to a customer-centric marketing based on the profile of individual customers we produced from the data."

Shizuoka Gas has developed a new marketing platform through a series of projects, ranging from Big Data analysis to the formulation of marketing plans. The company was awarded the CRM Association of Japan Best Practice Award for its successful CRM initiatives. This marketing platform is expected to help Shizuoka Gas continue strengthening competitiveness and growing its business after 2016, when the retail business of household electricity and gas is deregulated and the competition is intensified.

Note

(*1) Customer experience:
Experiences gained through the interaction with corporate activities. These include not only the quality, function and price of products, but also the values of experiences gained from the pre-purchase process to their satisfaction after use

(*2) Panel data:
Dentsu original data obtained from multiple rounds of surveys about their consumption behavior and media contact to the same target customers

The Customer : Dentsu, Inc.
Address Minato-ku, Tokyo, Japan
Founded 1901
Employees 7,425
URL http://www.dentsu.comOpen a new window

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