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I BELIEVE IN THE INTEGRATION OF MARKETING AND IT. Interview with Vincent De Dobbeleer I BELIEVE IN THE INTEGRATION OF MARKETING AND IT. Interview with Vincent De Dobbeleer How does Marketer of the Year 2014 Vincent De Dobbeleer (strategy & marketing manager at energy supplier Eneco) see the evolution of marketing and the inherent role of (big) data? Vincent De Dobbeleer has worked at Eneco since 2010. He joined the energy supplier when it was largely still a b-to-b-supplier focused mainly on production (project development and construction of wind and solar parks). However, the company aimed for further growth in the b-to-b market, and launch itself in the retail market within two years. Eneco is an originally Dutch company that supplies renewable energy. Eneco started in 2005 in the business-to-business-market and in 2011 also entered the retail market. At the start of 2015 Eneco had 78 wind farms and 120 solar power stations in Belgium. The company has 5000 b-to-b-customers and 280,000 private customers. Vincent De Dobbeleer: “At the time the CEO said: ‘Marketing is in the driver’s seat. Marketing determines the rest of the organisation’. We were marketing-driven from the get-go. I started here on my own, everything - the vision, values, commercial strategy... - still had to be set up. Now, the marketing department employs fifteen people. It was a lot of work, but it was also an advantage because it was relatively easy to get everyone on board with the vision, the DNA and the perceived value. It is about touching points with customers and that starts by knowing what Eneco stands for, what the brand values are. It is very important that every employee is fully aware of this, which also means that marketing needs to make sure that the whole company perceives these values and acts accordingly.” Eneco entered the retail market a year ahead of schedule. De Dobbeleer: “I started in August 2010. In April 2011 the Board of Directors gave its final approval for the launch, which we completed in August of that year. We set everything up in the space of four or five months. A b-to-b-organisation is very different to one that focuses on b-to-c. In b-to-c you have mass communication(s), mass-service and large-scale customer service. This knowledge was readily available when we started. Within five months we went from nothing, to ‘ready-to-startselling’. It was a rollercoaster but it gave everyone a lot of energy. At the start of the first Eneco-tour (a Benelux cycling race in different stages) we also started with the commercialisation.” OUTSIDER Vincent De Dobbeleer is an outsider in the marketing world: he is a civil engineer specialised and trained in computer sciences, a far cry from the marketer branch. He switched to marketing quite early on in his career. But his background has probably made him into a prime example of ‘the new marketer’, the marketer of tomorrow who more than ever will have to deal with data Eneco also has a lot of data thanks to the direct customer contact. This requires a lot of effort and knowledge about IT. Vincent De Dobbeleer: “I believe in the integration of marketing and IT. We have IT people in our team who are integration of marketing and IT in one person is an advantage. For instance, I know how to get things done from a technical point of view.” BORDER So can your civil engineer background be seen as a strength? Vincent De Dobbeleer: “That is right. I have that mindset; I have that engineer way of thinking. I understand how IT works and that it is not always as easy as it seems. Over the years I have also gained experience on the business side. In fact, IT plays an important and even a strategic role.” able to think in business and marketing terms. I know that in a lot of companies this is usually the other way round: that IT is more of a delaying factor and doesn’t always contribute ideas. Marketing and sales used to be separate, but it was in our advantage to put them together. Maybe we should now consider putting marketing, sales and IT together. The creative use of new technologies allows marketers to achieve a big and cost-efficient impact. Also, technology is crucial to predict customers’ behaviour. That is why you need to bring IT and marketing closer together. This puts you one step ahead of other companies. Marketing has to be more IT (and vice versa), needs to learn and copy from ‘the others’ without losing its individuality. The link with the customer experience, or how close you are to the customer, is crucial from a technological perspective. After all, you have ‘big data’, from which you gain your marketing information. Actually, I have mixed feelings on ‘big data’. It is important given the information you get from the data, but it is difficult to distinguish what is important. The advantage of ‘big data’ is that you can learn a great deal from it. The disadvantage is that - if you know how to work it - you can prove the opposite with the same level of credibility. This is a serious risk. That is why you need people who are able to make good analyses and know the business well. In the past I have known business intelligence to be part of IT. These were very good technical people who were able to build a good database but did not put much thought in the interpretation of charts. You were given a chart and within two seconds you could tell from a business point of view that something was not right. That is why here at Eneco, ‘market intelligence’ fell directly under marketing to reconcile it primarily with business skills and secondly with technical skills. In this case the Are you more of a commercial engineer than someone who studied Applied Economics? Vincent De Dobbeleer: “The border between technology and marketing will change even more. You have the evolution of digital TV and ‘second screens’ for instance. It will be even more technological. We need data, big and small. It’s what it’s about nowadays. The internet of things is there. But the question is also whether the customer, the consumer will want to accept it all so readily. Recently I installed a smart thermostat with Google Nest. Then I also have the feeling: Google knows when I am home and when I’m not. Do I really want that?” But does Eneco have plans to combine this consumer data with its own data? Vincent De Dobbeleer: “Certainly, but in the sense that the goal has to be to get know the customer better. There are plans to carry out analyses for a more specific service and a specific offer. I feel we still have a lot of data at our disposal that we don’t use enough. Some customers call us. This contact is stored in the CRM system, but we don’t make any structural use of this for marketing. It is relevant to get to know the customer better. Most marketers feel the same way but still have a long way to go. “You can compare it with climbing Mount Everest. You need to know where you want to go. However, you shouldn’t focus on the summit, but on the next step. Otherwise you would give up because the summit still seems so far away. You need to do it step by step. And yes, I want to get to know the customer, I want to be able to predict which customer will leave us within three months. The first step for this is to keep data and then install predictive analysis tools, for which we bought SAS. The first analysis was on our own customers. We now have a model with more than 75% accuracy. It tells us which customers will leave us - without them knowing it themselves yet. We can then launch a promotion and find out who has stayed with us. This allows us to adapt our system iteratively and in the end reach more than 95% accuracy. We loaded this prediction in our customer service system. There are three indicators of probability that a customer will leave. The customer service people see that and know how to react.” SEGMENTATION Do you also use this data for other things apart from your own customers? Vincent De Dobbeleer: “We make a segmentation analysis on our own customers and apply it to the total market: who are our customers and how many of these profiles are still out there? We also use this data on our own customers to get them to purchase more of our products. The objective is not so much to increase our market share, but to grow breadthways, in terms of the number of purchased products and services as part of a more sustainable society.” The challenge for the CMO is that marketing has to become ‘knowledge’, a science. Vincent De Dobbeleer: “Yes. I think marketing concerns different aspects. The pure creative side and the communication aren’t very scientific. You need to let the communication agency take care of the creative process. But there are a lot of aspects in marketing that must and can be approached more scientifically than in the past. A TV campaign will easily set you back about half a million euros. You need to be able to study whether that half a million also brings in half a million or more. That becomes easier when it is online, although relatively speaking the budgets are often much smaller. But it is still strange: if so much money is spent, there has to be a way to substantiate it. Again, integration of IT and marketing is interesting in this case.” How do you deal with social networks? Vincent De Dobbeleer: “They are just part of the marketing mix. We experimented with it. We tried building our own community but stopped doing it. We focus on customer approach and let the Facebook page and website refer to each other. The objective is to get people to visit the website. It contains far more content about the smart use of energy. If you keep clicking you end up in a sales funnel sooner or later. The aim of the dialogue is that it results in value, in sales. Facebook gives fun information about Eneco. We have more than 20,000 fans. That is a good number for our sector. We use Twitter for lead generation. This concerns opinion leadership. The use of Twitter in Belgium is overrated. It does not have a massive reach, but you will find all opinion leaders there.” You have 280,000 customers and 20,000 fans. How do the other 260,000 hear about Eneco? Vincent De Dobbeleer: “Customers receive a newsletter every two months. We send it online to around 90% of our customers (whose e-mail addresses we have). What’s in it? Always something about sustainable achievements (e.g. a new wind farm) and we always include a competition too. The newsletter is not segmented yet but it will be in the future. We check to see how many recipients open it, which articles they are reading (competitions work best of all). More than half open the mail. This is a lot and it has always been like this from the start. The only explanation is the participation of our customer base. We have always been very consistent: in terms of content primarily aimed at sustainability and secondly in terms of pricing. In addition to the newsletter we also regularly get in touch pro-actively with customers to find out whether they are still happy with our services. During special events, such as a birth, wedding... we also send handwritten cards or sometimes even a flower bouquet. Every customer who gets in touch with us is asked to fill out a short questionnaire to give feedback about our services. Based on this we constantly adjust. Again, IT is always important as input for marketing.” How do you approach prospective customers? Vincent De Dobbeleer: “There is a mix of SEA and SEO supplemented by traditional media, particularly radio and TV. Radio is action-driven, television is used for brand awareness.” WIIFM What is the potential and how can you interest people in your proposition? Vincent De Dobbeleer: “Our customer base is relatively stable, 5% of the market in Flanders. In fact, the total market is stable. Consumers are divided among the suppliers, and Electrabel lost a lot of customer over the past years. Consumers still switch between suppliers. That is how the market works. Although I do believe we haven’t sufficiently promoted our sustainable energy story. We have wind and solar parks, but it goes further than that: we help people become energy-independent through insulation and showing them how to produce their own energy. We need to promote this broader vision and I am convinced this story still has great potential. It is about working with customers, offering what they need in the right way.” What’s in it for me? Vincent De Dobbeleer: “It is a combination of environment and financial return. It is too restricting if you are only focused on the environment; price is as important. We are not the cheapest. If you organise a focus group, 100% of the participants will go to the cheapest, but in practice this is not the case. Other aspects matter.” If you consider the customer experience, which brands do you admire? Vincent De Dobbeleer: “Not many. Lampiris is one of our competitors. I also know people there. It keeps you on your toes. But brands that give me a good customer experience..., I can’t think of one straight away. I can name a restaurant or a shop, but large companies with a good customer contact....? Yes, Apple. A couple of years ago my laptop was stolen and I lost all my music on iTunes. I didn’t backup my files. I got in touch with them and got everything back. I also received a follow-up mail. That was a very positive experience. And yes, I know they are sent automatically, but still... I think looking ahead and thinking about customer experience we are going back into the past: people used to go to the corner store and they knew you, they knew what you would usually buy, what your preferences were, etc. Large companies were unable to do that. You can’t possibly know everyone of your 250,000 customers, but with current technology this will be possible again and you will be able to offer an extreme customer experience. This is partly automated though.” In this case customers have to be willing to give information about themselves. Vincent De Dobbeleer: “What moves the customer to share their details, to give up part of his privacy? You need to provide an added value for this. And this added value is different for everyone.” In 2014, Vincent De Dobbeleer (35) won the ‘Marketer of the Year’, an initiative of STIMA in co-operation with weekly magazine Trends. De Dobbeleer is strategy & marketing manager at energy supplier Eneco. He is a civil engineer, specialised and trained in computer sciences. De Dobbeleer started at Altran in 2004 as an IT consultant. His job was to develop software for energy company Nuon’s interaction with the market. He then joined Nuon to optimise the customer service and was later appointed as market development manager. In 2010 he made the switch to Eneco, which was looking for a strategy & marketing manager. De Dobbeleer’s job was to make the b-to-b-branch profitable and to prepare the entrance the retail market (in 2011). Soon he will take a new path: De Dobbeleer established Marketing Pirates, his own company to guide start-ups and accelerate their market entry. His aim is to stimulate and accelerate entrepreneurship and innovation in Belgium MARKETING LEADERSHIP COUNCIL