Tag: product development

From stressed to streamlined: Cognitive Load Theory in UX design

Post author By Laura Isaacs
Post date August 12, 2024

As someone who thrives with a little extra external structure in my life (a common aspect of ADHD), I know the importance of clear instructions and streamlined processes. That’s why I’m obsessed with Cognitive Load Theory in UX design and its power to create frictionless user experiences in everything from mobile apps to complex enterprise software.

Let’s face it: our brains are busy places. Juggling life, family and friends, work, hobbies, and even that never-ending social media feed leaves little room for mental gymnastics (probably even for Simone Biles). Cognitive load refers to the total amount of mental effort required to process information and complete a task. You might think of it as your brain’s bandwidth.

When a website, app, or even a customer portal dumps too much information on you at once, your cognitive load skyrockets. This can lead to frustration, errors, and, ultimately, users abandoning ship. By leveraging cognitive load principles in UX design, we can help users achieve their goals with minimal mental strain.

Understanding Cognitive Load Theory: The brain’s bandwidth

Cognitive Load Theory has been near and dear to educators’ hearts for decades. Pioneered by psychologist John Sweller in the 1980s, it posits that our working memory has limited capacity, and overloading it can hinder learning and performance. And since then, Cognitive Load Theory has evolved from classroom applications to become a cornerstone in UX design. By understanding how cognitive load impacts users and consumers, we can design experiences that are optimized for their mental resources.

Cognitive load is a complex beast with three primary facets:

Intrinsic load
Extraneous load
Germane load

Intrinsic load is inherent to the task itself. For instance, learning calculus is inherently more complex than ordering pizza. While we can’t alter the task’s complexity, we can significantly influence the other two facets.

Next comes extraneous load, the design’s enemy. This is the mental overhead caused by distractions like flashy animations, overwhelming layouts, or confusing navigation.

Finally, we have germane load, the good stuff. This is the mental effort directly invested in understanding and completing the task. It’s like building muscle; the more you engage with the task, the better you become at it.

Effective UX strategically reduces extraneous load to free up cognitive resources. By simplifying interfaces and eliminating irrelevant information, designers can help users focus their mental efforts on germane activities — those that genuinely enhance understanding and task mastery. Carefully managing these cognitive loads means designers can create experiences that feel effortless and enjoyable. The goal is to not overwhelm the user while facilitating a deeper engagement with the content or functionality. This will ultimately make even complex tasks feel more intuitive and manageable.

Removing friction: UX design strategies for reduced cognitive load

Now that we’ve dissected the different types of cognitive load, let’s explore a few practical strategies to create designs that are as smooth as butter.

Content chunking: Bite-sized brilliance

Breaking down complex information into smaller, digestible chunks is like serving a delicious multi-course meal. Instead of overwhelming users with a massive wall of text, offer them a series of smaller bites. Use bullet points, numbered lists, and clear headings to guide their attention. Extra fun bonus: This is good for SEO and winning featured snippets on the SERPs, too.

Example: A complex product description can be broken down into a bulleted list of key features and benefits, each in its own section.

Visual hierarchy: A clear path forward

Our eyes are drawn to certain elements more than others. By strategically using size, color, and contrast, we can create a visual hierarchy that directs users’ focus. Think of it as a roadmap that guides them through the page.

Example: A prominent call-to-action button with contrasting colors stands out amidst less important elements.

Progressive disclosure: Less is more

Don’t bombard users with information upfront. Instead, reveal details as needed. This technique is particularly useful in forms and registration processes, and can be an essential step in optimizing conversion rates. Focusing on the most vital steps reduces cognitive overload and improves completion rates.

Example: Instead of overwhelming travel consultants with a barrage of disclosures, servicing standards, and compliance checks upfront, deliver this information dynamically as needed throughout the booking process.

Error prevention and recovery: User-friendly failsafes

Mistakes happen, but they shouldn’t derail the customer’s journey. Anticipate potential errors and provide clear, helpful guidance. Avoid cryptic error messages and offer constructive suggestions for resolution.

Example: A form field that validates input in real-time, preventing invalid entries and providing helpful suggestions.

Scanning patterns: Designing for how people see

Research from Nielsen Norman Group shows that users often follow an F-shaped pattern when scanning web pages. They start at the top left, scan across, and then move down the left side. Understanding these patterns allows you to place important information for maximum visibility strategically.

Example: Place the most important information in the top left corner of a page and use bold headings to draw attention.

Accessibility: Designing for everyone

We’ve said it before, but let’s say it louder for those in the back: Inclusivity is key. Accessibility isn’t just a feature; it’s a fundamental aspect of user-centric design. By ensuring our solutions are accessible, we not only comply with legal standards but also open our digital doors to a wider audience, enhancing user engagement, customer experience, and satisfaction.

Example: Provide clear instructions for screen reader users and transcripts for video and audio content.

Testing and iteration: The heartbeat of UX design

Testing is the lifeblood of any successful design project. By observing how real users interact with your product, you can gain invaluable insights into their experiences. Tools like user testing, A/B testing, and heatmaps can help you identify areas where cognitive load is high.

What does that look like in practice? Consider the A/B testing of different layout options to determine which one results in lower task completion times and higher user satisfaction.

It’s also important to remember that great design is a journey, not a destination. Continuously gather feedback, analyze user behavior, and refine your designs based on the insights you gain. This iterative process ensures your product evolves to meet your users’ changing needs.

Beyond the screen: Expanding cognitive load in UX horizons

As you can see, the principles of cognitive load extend far beyond the classroom as Sweller originally theorized. You’ll even find these notions in play beyond websites and apps. Cognitive load principles apply equally to physical products, IoT devices, telephony, and even service design.

Consider the mental effort required to assemble furniture, operate a smart home system, or navigate a complex customer service process. Cognitive Load Theory in UX is essential when:

Designing intuitive physical product user interfaces, such as clear labeling and easy-to-understand instructions.
Creating voice assistants that understand natural language and provide concise, relevant information.
Simplifying customer service interactions through self-service options and clear communication channels.

Conclusion: Happy brains, happy users, increased conversions

By prioritizing cognitive load in the design process, we’re not just creating visually appealing interfaces but building experiences and products that respect users’ mental capacity. Users who can effortlessly navigate your product are more likely to not just engage, but also convert and become loyal advocates. So, let’s collaborate to design experiences that are not only beautiful but also brain-friendly. We can transform your digital landscapes into intuitive, inclusive environments. Take a few minutes to learn more about Tallwave’s digital experience design services, and when you’re ready, let’s talk.

Tags brand strategy, business strategy, customer experience, customer experience design, product development

Customer Engagement Product Design Reaching New Customers Strategy UX Design

UX for all: Accessible app design for diverse users

Post author By Laura Isaacs
Post date June 17, 2024

Mobile apps are an indispensable part of our daily lives. They connect us, inform us, and entertain us. But for those of us with disabilities, some apps can be frustrating or even unusable due to accessibility barriers. We must recognize that accessibility in app design isn’t just about functionality and UX digital experience design—it’s about creating a welcoming, productive space for everyone and meeting legal standards such as ADA (Americans with Disabilities Act) and other international regulations.

Developing accessible apps not only reflects a commitment to ethical design but also offers significant benefits:

Reaching a wider audience: Accessible apps open doors to a vast and diverse user base, increasing your potential reach and market share.
Enhanced user experience: When everyone can navigate and interact with your app seamlessly, it increases user satisfaction and engagement.
Positive brand reputation: Demonstrating inclusivity through accessible design fosters brand loyalty and positions your company as a leader in responsible innovation.

The proof is in the pudding. See how Tallwave’s digital product design services team helped disrupt the status quo with an app made for those on the move.

Why inclusive app design matters now more than ever

While inclusive and accessible design is often discussed in the context of providing greater access for people with disabilities, it’s a high tide that raises all ships. Consider the curb cut, one of the most iconic physical examples of accessible design. When the first official curb cut was installed at an intersection on Telegraph Avenue in Berkeley, California, in 1972, a move that sparked the installation of hundreds of thousands more curb cuts all across the country, sidewalks became more accessible for people in wheelchairs. But they also became more accessible to parents with strollers, runners, kids on skateboards, and people wheeling loads, from workers with dollies and hand carts to business travelers with luggage. This application of accessible design didn’t just improve the experience of people with disabilities—it improved the experience for everyone. This phenomenon became known as the “curb cut effect,” and it applies as much to digital design as it does physical design.

With so many benefits to ethical and inclusive design for everyone, app accessibility standards are no longer a nicety but a core expectation for users with and without disabilities. As such, standards and guidelines are in place to drive designers toward accessibility.

The World Wide Web Consortium’s (W3C) Web Content Accessibility Guidelines (WCAG) are the foundation for all accessibility standards. These guidelines apply to web pages and mobile applications, encompassing both native and hybrid app formats. WCAG provides principles, guidelines, and success criteria to ensure web and app platforms are accessible to users with diverse disabilities. This promotes inclusion and prevents discrimination in daily online experiences.

The WCAG is part of the W3C’s Web Accessibility Initiative (WAI). This initiative reflects a commitment to removing barriers for users with disabilities, ensuring they can navigate websites and interact with mobile apps as seamlessly as everyone else. With the introduction of WCAG 3.0 in May 2024, the guidelines are continuously evolving to address emerging technologies and more nuanced accessibility needs.

UX for accessibility: Creating user-friendly app experiences

The foundation of accessible app design lies in understanding the needs of diverse users. According to the CDC, up to 1 in 4 adults in the United States (more than 61 million people) has a disability. This includes people with visual impairments (4.8% of U.S. adults), hearing impairments (6.1% of U.S. adults), cognitive disabilities (12.8% of U.S. adults), motor limitations (12.1% of U.S. adults), and more.

By conducting user research that involves people with disabilities and analyzing user data, you can identify potential challenges they face when interacting with apps. You’ll want to consider the kinds of assistive technologies your user base relies on to make the mobile app experience possible. These include refreshable braille displays for silent access to content, eye-tracking systems for navigation and typing, and sip-and-puff devices for controlling functions. Adaptive devices like specialized keyboards and styluses are often used by individuals with motor limitations to navigate mobile apps.

Leveraging user personas representing individuals with disabilities and conducting usability testing with diverse groups can provide valuable insights into making your app more accessible. Here are some basic considerations when incorporating UX for accessibility and accommodating assistive technologies in your app design:

Visual impairments

Employ high color contrast between text and background to ensure readability.
Ensure compatibility with screen reader software for users who rely on audio cues.
Provide clear and concise text alternatives for all images (alt text).

Hearing impairments

Offer captions and transcripts for all video and audio content.
Allow users to adjust audio volume levels within the app.
Consider visual alerts alongside sound notifications.

Cognitive disabilities

Use simple and straightforward language that’s easy to understand.
Implement clear and predictable layouts with consistent navigation patterns.
Offer multiple ways to complete tasks, catering to different user preferences and needs.

Motor limitations

Design touch-friendly interfaces with large, well-spaced buttons and icons.
Integrate voice control options for users who have difficulty interacting with the screen.
Ensure smooth keyboard navigation for users who rely on assistive technologies.

Beyond UX design: Content strategy for accessibility and inclusivity

The words and content within your app play a vital role in accessibility. Following guidelines like those provided by the A11Y Project and WCAG ensures that your content is accessible to everyone. Specifically, clarity and word choices matter. Accessible content is written clearly and concisely, avoiding jargon and complex sentence structures. Aim for a reading level that caters to a broad audience, usually between a 6th- and 8th-grade reading level.

Other important considerations for creating accessible content in apps include:

Plain language is powerful: Use everyday language that’s easy to understand. Avoid technical terms or industry jargon that may be unfamiliar to some users.
Alt text paints a picture: Don’t leave screen reader users out! Always include concise descriptions of images using alt text. Include details about the function the image serves on the page as well. Is it decorative? Is it an image of a product?
Captions and transcripts for everyone: Make multimedia content accessible by providing captions for videos and transcripts for audio content.

Building brand loyalty: The positive impact of inclusive app design

Investing in accessibility and inclusive app design isn’t just the right thing to do; it’s a smart business decision. When users can interact with your app easily, they’re more likely to spend time within the platform, leading to higher engagement and increased retention. Businesses prioritizing accessibility see higher customer satisfaction and loyalty, giving them a competitive edge. Additionally, accessible apps remove barriers for a significant portion of the population, allowing you to tap into a previously untapped market segment.

Building inclusive and accessible apps: A journey, not a destination

By prioritizing accessibility, you’re creating an app experience that welcomes everyone. This opens doors to new users, strengthens your brand reputation, and sets you apart from the competition.

Ready to build an inclusive and accessible app or improve accessibility within an existing app? At Tallwave, we understand the power of design that works for everyone. Our team of experts specializes in user experience (UX), accessibility audits, and inclusive content strategy. Contact us today to discuss how we can help you create a user-friendly and accessible app that meets all industry standards.

Tags brand strategy, customer experience, customer experience design, product design, product development

CRO Customer Engagement Paid Media Product Design Reaching New Customers SEO

Small wins, big results: How Marginal Gains Theory supports significant growth

Post author By Laura Isaacs
Post date June 3, 2024

The pressure to deliver outstanding results can feel immense in today’s digital business landscape. Marketers strive for significant campaign performance boosts and consistent growth. But what if the key to achieving these goals lies not in sweeping changes, but in a series of small, strategic improvements?

This is the philosophy behind Marginal Gains Theory. Popularized by British cycling’s dramatic performance improvement under coach Sir Dave Brailsford, it suggests that by focusing on a multitude of minor optimizations, you can unlock a surprising level of overall success. Imagine shaving off a few seconds here or optimizing a specific keyword phrase there—these seemingly insignificant tweaks, when combined, can lead to a substantial competitive edge and transformative improvement.

What can a strategy focused on marginal gains mean for marketers?

The pursuit of continuous, incremental improvement is a cornerstone of business success. While major breakthroughs are exciting, it’s often the seemingly insignificant adjustments that unlock significant progress. Marginal Gains Theory embodies this philosophy.

At Tallwave, we embrace this philosophy. We meticulously analyze and refine every step of the business journey, from initial brand awareness to user experience optimization, SEO strategies, and post-purchase communication. We believe in the power of “sweating the small stuff” to achieve significant results.

Here’s how marketers and other business leaders can apply Marginal Gains Theory to achieve incremental gains that add up to major impact:

Focus on measurable improvements

By tracking key metrics and focusing on areas with the most significant impact, you can ensure your incremental optimization efforts are targeted and effective.

Prioritize efficiency

Small tweaks don’t require massive investments of time or resources. Putting focus on those allows you to experiment more frequently, identify winning strategies faster, and optimize your marketing efforts with greater efficiency.

Build sustainable growth

The beauty of implementing tactics that encourage marginal gains lies in their cumulative effect. By consistently making small improvements across various marketing channels, you can create a sustainable growth trajectory for your brand and marketing efforts.

Foster a culture of experimentation

A strategy focused on marginal gains and small wins encourages a culture of experimentation and continuous learning within your marketing team. This fosters creativity, data-driven decision-making, and a willingness to test and iterate for optimal results.

Reduce risk

Large-scale marketing changes can be risky and expensive. By focusing on smaller, more manageable optimizations, you minimize potential downsides while maximizing the potential for positive outcomes.

Establish a long-term competitive advantage

In today’s dynamic marketing landscape, the ability to adapt and improve is crucial. By embracing a strategy focused on marginal gains, you develop a strategic advantage by constantly refining your approach and staying ahead of the curve.

Prioritizing incremental and iterative improvements empowers marketers to achieve significant results through a series of small, data-driven enhancements. It’s a marathon, not a sprint, but the consistent pursuit of continuous optimization can create marketing strategies that deliver exceptional results over the long term.

How can we apply Marginal Gains Theory in digital experience optimization?

Through our digital experience optimization (DXO) work with a diverse client base, we’ve found many opportunities to implement small changes that have a significant impact on improving conversion rates, lead generation, and full-funnel strategy growth.

Here are a few areas where we can turn the concept of marginal gains into tangible tactics:

Technical touch points and website health

When it comes to your website, every millisecond counts. Here are some tactics that can continually improve how users (and search engines) might interact with your site:

Implement caching mechanisms: This allows your server to store frequently accessed data, reducing the load time for returning visitors.
Optimize image sizes: Large, uncompressed images can significantly slow down your website. Use tools to compress images without sacrificing quality.
Minify code: This involves removing unnecessary characters and spaces from your website’s code, resulting in a smaller file size that loads faster.
Leverage a content delivery network (CDN): A CDN stores copies of your website’s content across geographically distributed servers. This ensures faster loading times for users around the world.

A/B testing and understanding what words work

Don’t underestimate the power of tweaking your website’s headlines and calls to action (CTAs). Here are some tactics that can produce marginal gains through A/B tests:

Test small variations in wording: Focus on specific elements within your headline or CTA, like changing a verb or adding a power word.
Track user engagement: Use heatmaps and analytics tools to see where users are focusing their attention and how they respond to different headlines and CTAs.
Embrace data-driven decisions: A/B testing allows you to experiment and identify the most effective messaging for your audience. Even a minor improvement in click-through rate can translate to a significant increase in leads over time.

Friction-fighting forms

Analyze your website forms and eliminate unnecessary fields. Here are some tactics to achieve small wins:

Identify essential information: Only ask for the information absolutely necessary to qualify a lead. Every additional field creates friction and discourages users from completing the form.
Pre-populate fields when possible: Use cookies or autofill features to pre-populate fields with information users have already provided. This reduces the amount of typing required and streamlines the process.
Offer clear value propositions: Explain why users should provide their information. Highlight the benefits they’ll receive in exchange for completing the form.
Simplify form design: Use clear labels, intuitive layouts, and avoid CAPTCHAs whenever possible. A user-friendly form experience encourages completion.

Data-driven SEO and content optimization

Leverage website analytics and data strategy to identify high-performing content and low-performing pages. Earn marginal gains through:

Topic cluster optimization: Identify high-performing content and create supporting content that dives deeper into specific aspects of the topic.
Content refresh: Update existing content with fresh information, keywords, statistics, and visuals to maintain user engagement.
Internal linking: Link relevant content pieces together to improve website navigation and user experience. This also helps distribute link juice and improve search engine ranking.
Optimize for user intent: Analyze user search queries and optimize your content to address their specific needs and pain points.

Laser-focused landing pages

Make sure your landing pages are laser-focused on a single conversion goal.

Clear CTAs: Each landing page should have a clear and prominent CTA that tells users exactly what action you want them to take.
Targeted messaging: Craft compelling and targeted messaging that aligns with the offer or lead magnet on your landing page.
Clutter-free design: Avoid distractions and maintain a clean, user-friendly layout that guides visitors toward the desired conversion action.
Mobile responsiveness: Ensure your landing pages are optimized for mobile devices as a significant portion of website traffic now comes from smartphones and tablets.

Unleash the power of experimentation and iteration with marginal gains

The beauty of Marginal Gains Theory lies in its continuous improvement mindset. By consistently monitoring data, identifying areas for optimization, and implementing small changes, you create a culture of iterative improvement that can significantly impact your marketing results over time.

Want to know more about how small wins add up to big improvements? See our case study about how we helped an e-commerce company double revenue in just three months.

Ready to play a long game of small wins?

Marketing success rarely happens overnight. It’s the result of a consistent effort, a commitment to data-driven decision making, and a relentless pursuit of improvement. By embracing the philosophy of marginal gains, you can transform your marketing strategy from a series of random acts to a well-oiled machine of continuous optimization.

At Tallwave, we believe in thoughtful rigor and sweating the small stuff, just like Sir Dave Brailsford did when he coined Marginal Gains Theory. Let’s talk about the big growth we can drive with small improvements.

Tags brand strategy, business strategy, customer experience, Data & Analytics, product development

Customer Engagement Uncategorized

Tallwave year in review: Creating value, contributing knowledge, and pursuing growth in 2023

Post author By Tallwave Team
Post date December 26, 2023

As we draw near the close of 2023, our sights are set on the year ahead and in true Tallwave fashion, we’re turning our focus to the challenges and possibilities of a new year. But before we run headlong into 2024, we’re taking a moment to reflect on all we accomplished this year.

Our incredibly talented teams executed high-value work that made a real impact on our clients’ businesses. The brilliant thought leaders among our ranks contributed knowledge to the benefit of prospective clients, partners, and business leaders of all stripes. And Tallwavers at every level of the organization seized opportunities to learn, develop, and grow, demonstrating that our value of relentless pursuit isn’t just a series of words, but words we live by. In the spirit of honoring auld lang syne (times long past), here are the highlights the Tallwave team will be toasting as we ring in the new year.

Creating value for our clients

Looking back over our work in 2023, data enablement and modernizing the technology and strategies for delivering on customer needs stand out as themes in some of the most ambitious challenges we helped our clients tackle.

Powering up a customer portal strategy

In 2022, we were engaged by a private, independent energy company with over 35 years of experience in the industry. They’d always been technology-forward thinkers, and their customer connect portal was already a differentiator that set them apart from competitors and contributed to their number one ranking in the industry for customer service. As a tech-forward company, they were planning for ongoing evolution of their portal into a best-in-class solution that continued to meet the needs of their customers.

After evaluating their portal and making strategic recommendations in late 2022, the stage was set to translate strategy into action in 2023. Over the course of the year, we’ve worked with our client to design, test, and validate a new customer connect portal 3.0 solution, implement a measurement strategy to evaluate the performance of the new portal solution, and provide ongoing analytics maintenance, reporting, and strategic insights for a portal that’s always evolving, improving, and creating value for our client’s customers.

Enabling growth through an upleveled internal asset management strategy

One of our largest, most complex clients, a multinational financial services corporation, enlisted our help to establish the proper team and organizational structure, improve data quality to unlock insights that empower decision making, standardize global policies and procedures, and strengthen relationships that align into the broader enterprise with the right engagement models. These desired outcomes coincided with an increase in demand for internal technology assets, intensifying hardware budget management demands, and the increasingly complex logistics for supporting a global workforce’s technology needs.

They initially engaged us to help them create a playbook of standard operating procedures to drive predictability, agility, and efficiency in servicing employee tech needs. But as we helped them imagine the art of the possible, we set our sights higher, ultimately building a strategy for service automation and digital experiences that work in concert with SOPs and designing an MVP solution and a framework to continually build upon their internal product ecosystem to drive efficiency, scale, accuracy, and predictability. This, in turn, will help our client optimize their internal technology asset investments, reduce risk, and improve the quality of service to colleagues.

Enabling data-driven business processes by translating between business needs and infrastructure parameters

CP Skin Health Group, Inc., a division of Colgate-Palmolive focused on product and service innovation for dermatologists, estheticians, and other skin health professionals, found themselves in a position common among our clients. Rapid growth, including the merging and acquisition of well-established and high-performing brands, led to a fractured data ecosystem. They were leveraging multiple disparate data sources and systems across their business units and many of the processes required for their business relied on manual data entry, which negatively impacted their sales and marketing teams’ ability to operate effectively at scale and created a poor customer experience. They needed a partner to work alongside their Global IT team to create a more unified technology and data infrastructure to serve the needs of the business.

We brought business stakeholders together with their Global IT team to map their data environment, identify and document technical limitations and risks in their data inventory, and define problem statements. As a result of our work, the skin health division and the Global IT team were able to align on a shared data strategy and vision that would pave the way for better support for the skin health division’s business needs and lay the foundation for future data analytics capabilities. This allowed the skin health division’s marketing team to operate more effectively and efficiently and optimized sales processes to deliver better customer experiences and business outcomes.

Bringing a new mobile app to life at the speed of light

Working with one of our development partners, we embarked on a journey to redesign and develop a new mobile application for a national broadband communications provider. The new application required some complex features—like account registration and management, bill pay, service appointment scheduling, and more—that also played high-stakes roles for the customers who would ultimately use them. And the timeline for getting it done was tight. But that’s just the kind of ambitious challenge the Tallwave team thrives on.

We mobilized our wildly talented product design team to quickly develop a digital brand UI kit, UX/UI designs for 3 new complex user flows, front-end code acceleration training, and consultation on UX/UI execution, usability, and accessibility in the span of just a few weeks. The team’s work was a shining example of our ability to deliver great mobile app design at the speed of light without sacrificing our commitment to deliver a great CX for consumers.

A power-packed, end-of-year kickoff for a 2024 product strategy

We partnered with a new client, an energy management services, procurement, and energy infrastructure development firm, in December to help them define and package their intellectual capital and expertise into an ongoing and scalable data-as-a-service (DaaS) product. Starting our engagement this late in the year, it would have been easy to assume we’d kick off in January. But with a client who shares our bias toward rapid action, we decided there’s no time like the present to get the ball rolling.

This month, we mobilized our team to head out to the client’s offices in Texas to lead them through a full-day workshop with their senior leadership team to understand the energy ecosystem and value chain and begin to formulate ways to package their unique value to customers. Seizing the moment to begin our work now puts us in a strong position to advance our plans to design, develop, and test the product concept with prospective customers and develop a go-to-market plan that drives immediate adoption upon launch in the new year.

Contributing thought leadership to the industry

The work we did for our clients wasn’t the only way we created value in 2023. Tallwavers showed up as thought leaders, contributing their knowledge and perspectives on hot industry topics like data unification and enablement, conversion rate optimization, and more at industry events and a few of our own. Some standout moments include:

On the physical stage at Brand Innovators

At the Brand Innovators Sports Marketing Upfronts in Scottsdale, Arizona in February, Tallwave Partner, Robert Wallace, had the privilege of moderating a panel session with members of the marketing team from Riddell Sports Group, a leader in high-performance football gear.

On the virtual stage at the GDS CX Innovation Summit

Our SVP of Marketing, Jessica Pumo, hit the big screen at the GDS CX Innovation Summit in May, presenting a Masterclass Keynote on bridging the data divide. The topic of overcoming fractured data ecosystems to harness the business power of data resonated so much, she gave a special live encore presentation at our invite-only dinner for current and prospective clients focused on data unification and enablement in August.

Spreading the word on the value of CRO

Conversion rate optimization can be an extremely effective strategy for improving conversion rates and maximizing return on investment in traffic-driving marketing. But it requires a highly integrated approach to execute, making it difficult for clients and many other digital agencies to capitalize on. Our Integrated Marketing team brought their knowledge, experience, and expertise to conversion-conscious brands of all kinds in a CRO webinar in May.

Pursuing personal and professional growth

Our ability to do great work for clients and contribute thought leadership to our industry is fueled by our relentless pursuit of growth. In 2023, Tallwavers fed their brains, expanded their knowledge, and refined their perspectives on a wide range of topics through conferences, events, and other personal and professional development opportunities. Here are two that really blew us away:

Making quality connections at KPMG /Michigan Ross QuantumShift

Tallwave CEO, Jeff Pruitt, had the rare opportunity to attend QuantumShift, an exclusive four-day peer-to-peer learning experience for the top decision-makers of fast-growing private companies. This experience took Jeff out of his day-to-day business environment to share with, learn from, and collaborate with leading CEOs from around the country as well as top professors from the University of Michigan’s world-renowned Stephen M. Ross School of Business. It was a highly impactful experience that allowed him to live our value of thoughtful rigor in a whole new way while embracing the power of human connection.

Having flurries of fun at the Snowflake Data Cloud World Tour

Senior Data Strategist, Brooke Weidenbaker, and Engagement Manager, Rikki Ebenal attended the Snowflake Data Cloud World Tour event in Austin, Texas where they plowed through presentations, demos, and customer breakout sessions celebrating data centricity and came away with new ideas and examples to share with clients as we help them navigate the data maturity curve.

Raising a glass to the past and focusing on the future

Reflecting on all we’ve done, everywhere we’ve been, and everything we’ve accomplished, we’re proud of the year we’ve had. And we’ll be raising a glass in gratitude for the opportunities it’s brought us to learn, grow, and evolve and to help others do the same. It’s been a year worthy of celebration. But when the clock strikes midnight on December 31, our gaze will be squarely focused on the future and all the opportunities that lie ahead to help our clients dream bigger about the growth possible for their brands, discover a path to achieve it, and not just do what it takes to get there, but to constantly strive to do better together.

Tags brand strategy, business strategy, customer experience, customer experience design, Data & Analytics, product development

Customer Engagement News Product Design Uncategorized UX Design

It’s never the end: Continuously evolving product improvement

Post author By Anna McKee
Post date December 18, 2023

About this series: Great products are built using good problem-solving, and the best way to solve problems is to define needs and then meet them in every user interaction. Alignment across teams and channels ensures that expectations are set correctly and delivered on effectively at every stage of the user journey. Great design starts way back at defining the problem and extends through the entire product lifecycle, continuing long after launch and into the ongoing iterations of product development. Great design is a cornerstone for great products, driving great business, and creating opportunity. Read on to learn how ongoing iteration and innovation in the product design process makes great product design and the business value it creates sustainable. If you missed the first two installments, be sure to check out the other blogs in our series:

The design journey continues post-launch

Embarking on a successful product launch is a journey that requires planning, strategic collaboration, and continuous improvement. Crafting an effective launch strategy is the foundation, involving comprehensive market research, targeted messaging, and utilizing diverse marketing channels to build awareness and demand. Integrating a motivated and informed team becomes paramount as the launch unfolds, fostering a collaborative environment where each member contributes to the product’s success. Post-launch, the journey doesn’t end; it transforms into a dynamic cycle of continuous improvement. User feedback emerges as a guiding force, steering the development team toward iterative enhancements that align with evolving user needs. The importance of great design in this phase cannot be overstated, as design systems, seamless handoffs, and branding alignment contribute to a visually cohesive and engaging user experience.

Crafting effective launch strategies for product success

Launching a new product is challenging and the foundation for success is laid in the earliest stages of product development with a well-thought-out strategy centered around a clear and strong problem statement. That problem statement should provide connective tissue through the product development process and into planning for the product launch, including product positioning and go-to-marketing messaging. Ensuring that your product strategy as a whole is driven by a clear problem statement will help ensure consistency and alignment at every stage of the product journey. Additionally, you must leverage the right mix of marketing channels based on your target audience’s preferences and behaviors, such as social media, email, and influencers. This ensures a broad reach and sustained interest leading up to the launch. This comprehensive approach creates excitement and establishes a strong foundation for the product’s success in the market.

An effective internal launch paves the way for a successful external launch. Creating buzz and anticipation across your cross-functional team is a crucial aspect of a successful product launch. A cohesive team that is well-informed and motivated can significantly impact the outcome. Communication is key; share the vision, goals, and milestones with your team to foster a sense of unity and purpose. This will ensure that a single vision will be promoted across the team and translate seamlessly into the customer experience. When every person on the team knows how the pitch will go, they can all use their collective resources to lean into launch.

Allowing team members to contribute their unique perspectives by encouraging open dialogue and idea-sharing is also important as you consider external launch. By involving everyone in the process, from marketing and sales to product development, you harness the collective energy and expertise of your team. This collaborative approach not only generates creative ideas, but also ensures that everyone is aligned and committed to the launch’s success. Crafting an effective internal and external launch strategy is a dynamic process that requires adaptability and ongoing assessment to ensure the success of your product in the ever-evolving market.

Learn more about Tallwave’s Digital Experience Design Services.

Driving iteration with user feedback in the continuous improvement process

As a new product is launched to the market, it’s easy to assume that’s where the product team’s job ends and the marketing team’s job begins. But in truth, product launch is a phase that should bring these teams even closer together to bring the product to market while closing the feedback loop to drive continuous product improvement. Following launch, monitoring the performance of the product and features is paramount. This holistic approach to performance evaluation provides valuable insights into customer preferences and behavior. Utilize analytics tools to track key metrics, such as user engagement, conversion rates, and customer feedback. By analyzing the broader landscape, you can adapt your strategies and address any issues that may arise swiftly.

Continuous improvement is a cornerstone of long-term success, and by keeping a close eye on performance metrics, you can make data-driven decisions to refine your product and marketing strategies for sustained growth. Regular updates and releases based on user insights not only demonstrate responsiveness to customer needs but also foster a sense of trust and loyalty. This iterative approach transforms the product development process into a dynamic, user-centric journey, where each iteration builds upon the last, leading to a more refined and valuable end product.

The role of design in continuous improvement strategies

Great design plays a critical role in driving iteration and responding to user feedback effectively. Design systems provide a framework for consistency, enabling seamless integration of new features while maintaining a cohesive user experience. Additionally, well-managed handoffs between design and development teams streamline the implementation of design changes, reducing friction and accelerating the iteration process. Aligning branding elements across marketing channels and into the product will ensure user expectations are met at every turn. During iterations, a holistic approach to design, design systems, handoffs, and branding alignment ensures that the process is not only efficient but also results in a cohesive and engaging user experience.

Product success factors and the pursuit of excellence

In the ongoing journey of product development, launch is never the end; it’s the beginning and it launches the team into a cycle of perpetual refinement. Our products can exceed audiences’ expectations by embracing user feedback and integrating it into the continuous improvement process. The collaborative spirit within teams and the strategic planning behind launches form the basis of success. Throughout this dynamic journey, it’s important to celebrate the milestones achieved, learn from the challenges faced, and remain committed to the pursuit of innovation. The combination of effective launch strategies, user needs-driven iteration, and thoughtful design ensures that products stay relevant and evolve into solutions that resonate deeply with users. Here’s to the continuous pursuit of excellence in product development and the exciting possibilities that lie ahead on this ever-evolving path of innovation.

Are you ready to pursue product design excellence with a team that understands cross-functional teams and embraces continuous innovation? We are. Let’s talk.

Tags business strategy, customer experience, customer experience design, product design, product development

UX Design

Unlocking success: The impact of collaborative product development

Post author By Anna McKee
Post date December 11, 2023

About this series: Great products are not just about great functionality, pretty graphics, or even revenue. Great products are about solving problems for the people who use them so well that they return again and again. It’s easy to miss the needs those humans have when focusing on the individual components from a specific (and inherently limited) perspective. Each department in your business sees a different part of the story and a different way that customers engage with products. As we continue to explore the business value of great design, remember that only the BEST problem statements deliver the best designs. And when it comes to delivering the best problem statements, cross-functional teams have the advantage. Let’s unlock the potential of great design as the ultimate path to great business and how cross functionality advances it.

See the first installment of our three-part series here: Define the problem, not the solution.

What happens when teams align?

Design excellence requires more than individual brilliance; it demands diverse talents and perspectives. Digital products today are so easy to build that great digital products must shine brighter than most, which means solutions must be sourced from across the business landscape and not just from one person or team. Collaboration is pivotal for exceptional design and each player has a vital role toward innovation in product development and customer experience.

There is power that arises when different disciplines converge, contributing their unique insights to sculpt a solution and then align on building that experience together. Let’s look at the magic that happens when teams align for collaborative product development.

Introduction to cross-functional teamwork

The concept of cross-functional teamwork is easy to grasp; when more perspectives are available, there should be fewer gaps during design and build. Executing well on a cross-functional team, however, can be incredibly challenging and depends on many factors, including leadership, organizational structure, time and talent available, and individual personalities. Much of the challenge of effective teamwork in general is alignment. It can be difficult for a company to work toward a single strategic goal if one team is doing something radically different. Cross-functional teams have a distinct advantage in this situation as they can draw on team members’ experiences from various disciplines to move toward a singular goal. Collaborative product development enhances efficiency and becomes a cornerstone for cultivating a culture of creativity and adaptability within an organization.

When companies organize by customer experience or mission rather than by feature or technology stack, there is a lot of opportunity to build cross-functional teams with shared goals. This strategic approach allows a customer outcome to be analyzed and improved from various perspectives, unlocking gaps or opportunities that might have otherwise been missed. Think about a customer that is signing up for a new software product. In that single customer experience, they will likely encounter the general marketing of the company and the product itself, as well as welcome emails, onboarding tutorials, and probably a community of users, not to mention new targeted social media ads. In a cross-functional team, there are a lot fewer gaps than if different team members handle each of those customer touch points.

Building cross-functional teams

At the heart of building effective cross-functional teams lies the intentional structure of diverse skill sets to propel creative problem-solving. That doesn’t mean that all skill sets are required all the time. Building a cross-functional team is as much about communication and timing around when and how skill sets are brought together. Understanding how and when to bring team members in and out of the conversation (with the right amount of context and background) is a skill that each organization must build and refine.

As we shared in the first part of this series, great design starts with a strong problem statement. But problem statement development can also be the starting point for effective cross-functional collaboration. Sharing qualitative and quantitative UX research results across a diverse team to build a great problem statement will ensure that the right team members are being consulted for the cross-functional team to create the best customer experience to solve that problem. It’s useful to bring various stakeholders together during a solutioning conversation, essentially beginning with the ‘entire’ team to get perspectives on the customer experience and potential solutions. It might seem like a design or marketing team is all that’s needed in this ideation stage, but it’s incredibly valuable to bring varying perspectives in at this point. After that, it’s more useful to think of all of those participants as stakeholders who need to be ‘informed,’ but the responsibility will shift from department to department as the development progresses.

As in the example above, there are various customer touchpoints that different teams might own, but all of the stakeholders involved need to be informed each step of the way in order to ensure a cohesive customer experience. For example, when the marketing website for a new product is being launched, the product design team needs to ensure that the expectations set on the marketing website reflect the realities of the final product. Similarly, the customer success team needs to ensure they aren’t asking customers for information they’ve already provided via the marketing website or other pre-sales activity. By keeping these cross-functional team members informed, they can hold each other accountable for gaps, missed opportunities or missed expectations throughout the customer experience.

We know a thing or two about communication across teams. Learn more about how Tallwave builds bridges between business and technology.

Critical information for critical stakeholders

Cross-functional teamwork is vital to the success of a good product but that doesn’t mean that each stakeholder must be present for each conversation. Being efficient when sharing critical information can really elevate the communication across team members. Documentation and communication needs to go beyond live, collaborative communication to consider how to effectively institutionalize critical information in a way that contextualizes it for different stakeholders while driving alignment to an overarching vision and topline business goals. These versatile communications become more than just documents or “updates;” they evolve into powerful tools that communicate a unified vision, fostering cohesion and alignment among teams and organizations. A well-built roadmap is an excellent example of a flexible communication strategy that can share the most critical information to a variety of stakeholders. When presenting to leadership, the roadmap can be collapsed to only show the highest level strategy and initiatives. As conversation is required and/or different stakeholders are included, the roadmap can be expanded to show various tasks and strategies that will come together to deliver the initiatives. Leveraging communication tools that can adapt to the intended audience is a valuable way to keep communication up to date across team members.

Summing it up: Embrace a collaborative process

Creating and fostering a strong cross-functional and collaborative culture may not be the most obvious enabler to exceptional product design. But the impact of driving diverse perspectives into the product design process is key to unlocking its full business value. It can be difficult to create a highly collaborative environment, particularly when time is tight, the strategic importance of collaboration isn’t clear, and organizational silos get in the way. Enlisting the help of a neutral third party can be an effective way to broker buy-in on the value of strong cross-functional collaboration, align priorities across different teams and departments, and challenge historical organizational silos. Beyond the product design strategy and execution support we provide to our clients, we often find that the role we play in uniting cross-functional teams behind a common goal and achieving a shared point of view is equally valuable.

Are you ready to embrace a cross-functional and collaborative design process led by a strategic partner? Tallwave is ready to get to work and help your organization excel. Let’s talk.

Tags brand strategy, customer experience, product design, product development

Customer Engagement Product Design Reaching New Customers UX Design

UX design: Define the problem, not the solution

Post author By Anna McKee
Post date December 4, 2023

About this series: In the fast-paced business world, it’s all too common to hear about companies striving to become “product-led” and chasing after metrics like velocity and conversion rates. While these numbers undoubtedly hold significance, they often overshadow the underlying force that drives the success of great products: design. Design is not just about aesthetics; it’s about understanding your customers, empathizing with their needs, and crafting solutions that meet and exceed their expectations. In this exciting three-part blog series, we will dive deep into the realm of design and design strategy and its pivotal role in achieving business goals. Let’s unlock the potential of great design as the ultimate path to great business.

Understanding the cornerstones of great product design

In the ever-evolving landscape of product design, success hinges on the ability to navigate a maze of user needs and expectations. Understanding the need at hand and then defining the actual problem is a crucial first step that can make or break the entire journey. You might have a fantastic idea for a product but if you aren’t drilling down to the true problem that this product is solving, then you aren’t going to be able to truly satisfy customers. This design stage uncovers true pain points for customers to ensure your product is solving the right problem and a real problem. Understanding user needs and defining the problem are cornerstones of successful products, ultimately paving the way for continually high business value.

Empathy: The heart of a user’s needs

User needs are the foundation of good design, placing the customer at the very heart of the product development process. It’s imperative to empathize with users’ unique experiences, desires, and pain points when creating designs that resonate. User needs specific to a problem serve as a constant reminder that humans (specifically users) are at the core of the design process. By placing the human at the center of design, user needs act as constant reminders that the end goal is not just a product but a solution that addresses real-life challenges.

Moving from good to great design requires more than just a surface-level understanding of desired functionality. It requires a combination of both qualitative and quantitative UX research techniques that delve deep into user needs. First, quantitative UX research methods provide a structured and data-driven approach to learning about user behavior and preferences. Understanding the numerical data and statistical analysis can help you quantify user interactions, preferences, and performance. Surveys, questionnaires, A/B testing, and analytics tools are common examples of quantitative research techniques. Teams don’t need to use all of them every time, but carefully selecting a combination of methods will bring some helpful data to the surface as you assess user needs. These methods allow for the identification of patterns and trends, enabling UX researchers to create informed hypotheses about user needs. Quantitative research complements qualitative research by offering a more objective and measurable perspective, providing the necessary data to think through problems and have support for business decisions.

Qualitative user experience research methods provide valuable insights into the intricacies of user behavior, emotions, and perceptions. These methods delve deep into the more nuanced and harder to quantify psychological aspects of user interactions, aiming to understand what users do and why they do it. Qualitative research techniques, such as in-depth interviews, usability testing, and ethnographic studies, offer a way to channel the individual perspectives and experiences of users. Open-ended questions and real-time observations can help researchers uncover users’ needs, pain points, and desires, shedding light on the nuances that quantitative data often cannot capture. Qualitative research is an indispensable tool for human-centered design, enabling designers and businesses to truly understand user needs on a deeper level.

User needs are the baseline of effective design and encapsulate the essence of what the user truly desires and values. Before jumping to solutions or pixels, design teams must first empathize with their target audience, truly understanding their hopes, aspirations, and pain points. Taking the time to crystallize the human-focused needs and desires of the users ensures that every design decision is rooted in empathy and a genuine desire to enhance the user experience. Businesses that research, prioritize, and build products for these needs are not only better equipped to stay competitive in an ever-changing market but also to forge lasting, meaningful connections with their customers.

We know a thing or two about consumer values. Check out our post on the new persona playbook.

Crafting the perfect product design problem statement

With a solid understanding of user needs in hand, next up is crafting a clear problem statement to fuel product creation. A well-defined problem statement encapsulates the precise challenge that needs to be addressed, serving as instructions for design teams. Outlining the problem’s scope and context ensures that the design effort remains aligned with the customers’ real pain points and needs, allowing for a solution that truly resonates with them. This clarity and alignment fosters creativity and innovation in finding the optimal solution. It ensures that the entire team is headed in one direction, toward solving one problem. A well-crafted problem statement that is based on solid UX research guides the design process toward an excellent customer experience.

When thinking about the parts of a perfect problem statement, you must consider the person as well as the problem. This might be a problem that only a certain type of person has or a problem that lots of people have but only at specific moments in their lives. The person in the middle of the problem is just as important as the problem itself and cannot be separated from the problem statement. In addition to the who, problem statements must also consider the why but without the how. When the right amount of research has been done, there should be no trouble succinctly explaining for whom the problem exists and why. As the team sets out to create a solution for this problem, user needs and problem statements come into play. The goal is to reach an actionable problem statement that defines for whom you’re building the product or feature and why.

The positive impact of a clear problem statement reverberates through the entire business ecosystem. First and foremost, it reduces the risk of costly missteps in product creation. By defining the problem clearly, teams can avoid the pitfall of investing time and resources into solutions that do not address the root issues. It ensures that design efforts are aligned with the actual needs and pain points of the target audience and that the team is setting out to solve for the user and their why. As a result, products are more likely to resonate with and create value for users, leading to enhanced customer satisfaction, loyalty, and advocacy. A great problem statement empowers businesses to differentiate themselves in the market, gain a competitive edge, and drive sustainable growth. In sum, a clear problem statement acts as the catalyst for great design, and when design excels, so does business.

Learn more about Tallwave’s Digital Experience Design Services.

Wrapping Up: Great design, greater user experience

In the realm of product design and business success, two critical elements stand out as paramount: crafting well-defined user needs statements and clear problem statements. These statements act as the guiding light that illuminates the path to exceptional design and, in turn, outstanding business performance. User needs statements distill the essence of what customers truly value, enabling design teams to create products that resonate, cultivate customer loyalty, and fuel lasting trust. Clear problem statements also serve as a map for design, defining the challenge, scope, and objectives. They streamline decision-making, stimulate innovation, and ensure that design efforts align with real customer needs, ultimately reducing the risk of costly errors. The result is a positive ripple effect that enhances customer satisfaction, differentiation in the market, and sustainable business growth. In sum, these foundational statements are the key to unlocking the synergy between great design and great business.

Are you ready to embrace great design and improve customer experiences? We’re all ears. Let’s talk about your next project. And there’s more on the way; stay tuned for the second installment of this series! We’ll delve into how collaboration leads to the best design outcomes.

Tags brand strategy, customer experience design, empathetic marketing, product design, product development, UX

Customer Engagement Strategy Uncategorized

Data-centricity: Takeaways from the Snowflake Data Cloud World Tour

Post author By Brooke Weidenbaker
Post date November 20, 2023

We recently had the privilege of attending the Snowflake Data Cloud World Tour event in Austin, Texas. It was a full day of presentations, demos, and customer breakout sessions dedicated to discussing the technical and cultural challenges that organizations face as they strive to become more data-driven. Industry leaders who have harnessed the power of Snowflake’s data processing technologies and platform experts convened to shed light on the evolving landscape of data utilization and the critical need for businesses to adapt.

In today’s business environment, where access to data has reached unprecedented levels, success hinges not on the sheer volume of data you have access to but on how effectively you can leverage it to make informed decisions on an ongoing basis. In fact, research by Mckinsey & Company found that insight-driven companies report above-market growth and EBITDA (earnings before interest, taxes, depreciation, and amortization) increases of up to 25%.

Our most significant takeaway from the event was the pervasive sense of urgency, coupled with encouragement, that resonated throughout the sessions we attended. In the fast-paced world of business, staying ahead of the curve is imperative. The lifeblood of modern organizations is data, and if your company hasn’t already placed your first-party data at the forefront of your decision-making process, you risk falling behind. While it’s one thing for decision-makers to prioritize data, it’s another to instill a data-centric culture throughout your entire organization.

During the event, we heard from business leaders who recounted their early efforts to get their data houses in order. Some of these efforts date back to 2017 and 2018 when these visionaries recognized the transformative power of data and embarked on a strategic journey. Fast forward, as 2024 approaches, data isn’t merely a choice—it’s a necessity. If your organization hasn’t embraced a data-centric approach yet, the time to dive in is now.

Right after returning from the event, we received a timely report from Experian Research, focusing on the “Data Quality Revolution.” The message was crystal clear: if your business isn’t placing a strong emphasis on access to high-quality data, you should be, and the time to act is now. Continue reading as we explore the key takeaways from both the Snowflake event and the complementary Experian report.

The shift towards data-centricity: Where we stand

In the realm of data-driven decision-making, businesses are no longer tentatively testing the waters; they’re taking a deep dive. As highlighted in the Experian research report, “Over a third of business leaders say that better and faster decisions using data is a top priority to respond to market pressures. A continuous influx of accurate data enables team members—technical or not—to act with confidence. This is a claim that we see year after year and is vital in a market that is moving faster than ever.”

This sentiment echoes the progressive strides made by forward-thinking companies showcased at the Snowflake event. For instance, the Senior Director of Data Architecture, Engineering, and Platforms at a Fortune 500 athletic retailer shared insights into their innovative use of real-time data. By monitoring inventory levels and analyzing optimal pricing strategies in real-time, they’ve effectively maximized space utilization and ensured optimal profitability without compromising margins. This sophisticated approach underscores how organizations at advanced stages of data maturity leverage their data reservoirs to tackle genuine business challenges. Experian defines data maturity as “the extent to which your business can collect valuable data, derive meaning from it, and leverage this information in the decision-making process.”

Successful companies are often able to point to a mature data strategy that is disseminated throughout the organization that lends them a competitive edge. Consider Netflix or Amazon, for example. Both companies utilize their data to personalize content and provide product recommendations that increase customer satisfaction and ultimately drive greater customer engagement, retention, and overall revenue.

However, this level of sophistication isn’t universal. For numerous organizations, the journey along the data maturity curve is just beginning. Bridging the gap between recognizing the potential of data-centricity and effectively implementing it remains a common challenge encountered across various industries.

The challenges: Technical and cultural hurdles

One of the key challenges emphasized at the event was the demand for tools that can expedite the transition to data-centricity without subjecting organizations to extended development timelines. In today’s fast-paced business landscape, waiting months for development to design and implement complex systems is simply not feasible and leads to frustration throughout the organization.

What businesses need are solutions that are agile, efficient, and user-friendly. Experian “[s]urveyed businesses are looking at their technology to plan for scaling, expanding, and innovating data quality initiatives including easy-to-use tools for business users (50%).” The emphasis on user-friendly tools highlights a critical aspect of overcoming technical hurdles—providing accessible platforms that empower business users, regardless of their technical backgrounds, to harness the full potential of data, ensuring that the journey towards data-centricity is smooth and collaborative.

Learn more about building bridges between business and technology.

Embracing the potential, feeling the pain

Many organizations now find themselves at a crossroads—they’re acutely aware of the immense potential that a data-centric approach offers, but they are equally familiar with the growing pains that accompany this transformative journey. The heightened awareness of the benefits is juxtaposed with the acknowledgment of the challenges. This duality can be both motivating and overwhelming. The Experian research report echoes this sentiment, revealing a profound truth: “Year after year, we find that data investment equates to business growth. Our study shows that 95% of super performers—these high-achieving and data-mature leaders—believe that data quality is fundamental to business operations going forward.”

This statistic underscores the critical importance of data quality in the contemporary business landscape. It’s not merely a matter of investing in data; it’s about investing in high-quality, accurate data that can fuel informed decision-making and drive business growth. The realization that data quality is intrinsically linked to future success is a powerful motivator for organizations navigating the complexities of the data-centric journey. It signifies a shift in mindset from viewing data as a mere asset to recognizing it as a cornerstone upon which robust business operations are built.

While the challenges are palpable, so are the rewards. Embracing the potential of a data-driven approach means not only understanding the significance of data quality, but also taking proactive steps to address it. As organizations grapple with the intricacies of data utilization, this awareness becomes a guiding light, illuminating the path toward transformative change. By investing in data quality, businesses not only mitigate risks but also position themselves for sustained growth and innovation.

In this landscape of shifting paradigms, Tallwave stands as a strategic partner, ready to navigate the complexities of the data revolution alongside your organization. We offer tailored solutions designed to guide you and your teams to think through what data matters to your organization and build a culture that ensures your business is not just prepared for the future but actively shaping it. Let’s embark on this transformative journey together—where challenges become opportunities and data becomes the cornerstone of your success.

Tallwave: Your partner in the data journey

If your organization is ready to embark on the journey of embracing data-centricity but you’re uncertain about where to start, Tallwave is here to provide expert guidance. We know the intricacies of this transformation, offering expertise in both technical solutions and cultural adaptations across various teams in your organization. Our approach is tailored to your specific needs, ensuring a seamless integration of data-centric practices into your existing framework.

Ready to make the shift?

Don’t wait until you’re left further behind—take action now. Discover the business benefits, navigate the challenges, and transform your data potential into tangible results. Your journey toward a data-centric future starts today. We’re ready to lead the way.

Tags brand strategy, business strategy, customer experience, Data & Analytics, product development

Customer Engagement Innovators Series Mindfulness Reaching New Customers Value Realization

The smart money is on treating marketing as an operating expense

Post author By Jeff Pruitt
Post date November 6, 2023

As a digital agency CEO with a strong financial bent and a finance leader with deep experience in the agency space, we’ve seen the financial dance between marketing and finance teams more times than we can count. And we’ve heard some pretty creative approaches for classifying marketing expenses in different ways. While there’s no hard and fast rule that’s 100% right 100% of the time, more often than not the most compelling case is for treating marketing as an operating expense. This decision isn’t just a matter of semantics; it can have a significant impact on your business’s financial health and agility.

Operating vs. Capital expenses

Before we dive into why you should treat marketing as an operating expense, let’s clarify the difference between operating and capital expenses.

What Is an operating expense?

Operating expenses, often referred to as OpEx, are day-to-day costs incurred to keep your business running. Think salaries, rent, utilities, and yes, marketing expenses. OpEx is immediately deductible against your revenue, reducing your taxable income.

What is a capital expense?

Capital expenses, often referred to as CapEx, are investments in long-term assets, like buying a new factory or upgrading your IT infrastructure. CapEx is typically depreciated over time, which means it’s deducted gradually over several years.

Now that we’ve defined these two expense types, let’s talk about why we recommend putting marketing investment on the OpEx side of the ledger.

The temptation of a capital expense classification

While we believe the strongest argument is for classifying marketing as an operating expense, we understand why some companies may be tempted to categorize it as a capital expense. It can inflate the company’s assets on the balance sheet, potentially presenting a more favorable financial picture to investors and stakeholders. Additionally, tax implications can sometimes favor capitalizing marketing expenses, especially when a company is looking to spread out deductions over several years to minimize immediate tax liability. However, it’s essential to weigh these potential benefits against the flexibility and transparency that come with treating marketing as an operating expense to make an informed decision that aligns with the company’s overall strategy.

In cases where marketing initiatives have long-lasting effects, such as brand-building campaigns, there might be an argument for considering them as capital investments. One area where this argument tends to be the strongest is in investment in digital properties like websites.

Websites can serve as long-term assets, contributing to a company’s brand image, customer acquisition, and revenue generation over an extended period. This aligns with the capital expense criteria of enduring benefits and a useful life spanning several years, so classifying website investment as a capital expense has its merits. By capitalizing website development costs, companies can gradually expense them over time, smoothing out the financial impact.

However, there’s a counterargument to consider. Capitalizing certain marketing costs so they don’t hit your expense line and EBITDA can be enticing, but in the future, these become dead expenses because they’re being depreciated. Doing this over multiple years will lead to carrying depreciated expenses that you’re not realizing tangible return on, which hinders your marketing team from driving a full return on each year’s expenses.

Additionally, the digital landscape evolves rapidly, and website technology becomes outdated quicker than many other capital assets. Treating website development as an operating expense recognizes the need for continuous updates, improvements, and adaptations to keep pace with changing user expectations and technological advancements. Moreover, categorizing website investment as OpEx offers immediate tax benefits, as these expenses are fully deductible in the year they occur, potentially reducing tax liability in the short term.

Ultimately, the classification of website investment as a capital or operating expense depends on the specific circumstances and strategic goals of the company. CFOs and finance teams must carefully assess whether the long-term benefits and gradual expense recognition of capitalizing website costs outweigh the agility and tax advantages offered by treating them as an operating expense. It’s a balancing act that requires a nuanced understanding of the company’s digital strategy and financial priorities.

The argument for marketing as an operating expense

Potential exceptions like website investment aside, marketing investments represent ongoing, essential costs incurred to sustain day-to-day business operations, promote revenue generation, and adapt to dynamic market conditions. Treating marketing as an operating expense aligns with the constantly evolving nature of the marketing landscape and offers a host of advantages:

It gives you the flexibility needed to adapt to rapid change

One of the primary reasons to treat marketing as an operating expense is that it reflects the reality of the marketing landscape today. Marketing isn’t a one-time investment; it’s an ongoing effort to connect with your audience, build brand awareness, and drive sales. In today’s fast-paced digital world, consumer preferences can change on a whim and marketing campaigns must be able to adapt rapidly. When it comes to marketing, you can’t simply “set it and forget it” like you would with a capital asset.

When it comes to marketing, you can’t simply “set it and forget it” like you would with a capital asset.

Treating marketing as OpEx provides greater financial flexibility, allowing you to adjust your marketing budget more easily in response to changing market conditions or business needs. When marketing is a capital expense, you’re stuck with the initial investment, whether it’s performing as expected or not, which can limit your ability to evolve and adapt. As companies take greater control over their data and leverage technologies like AI and ML to execute data-driven decision making at scale, the capacity for ongoing, real-time optimization of marketing activity to drive performance improvement will only increase. With OpEx, you can scale your marketing spend up or down as needed, allocate resources to new marketing channels, and pivot your strategy without making the same level of long-term commitment from a finance and accounting standpoint and without the burden of depreciating assets.

It enables better ROI tracking and more accurate financial reporting

Accurate financial reporting is essential for making informed business decisions. When it comes to marketing investment, treating marketing as an operating expense ensures your income statement accurately reflects the real cost of doing business. This transparency helps you understand the true profitability of your operations and facilitates more accurate forecasting.

For its part, marketing efforts have high expectations for delivering quantifiable returns, whether it’s in the context of return on ad spend, reduced cost of acquisition, improved lifetime value, or any number of other metrics used to evaluate return on marketing investment. When marketing is categorized as OpEx, it’s easier to track and measure its ROI in real-time. You can see how your marketing efforts impact revenue and adjust your strategy accordingly. With CapEx, ROI calculations become more complex and less immediate.

It makes your CFO’s job easier

Given our roles and backgrounds in financial stewardship, we know the importance of prudent financial management. And we know that’s the love language of most CFOs. Treating marketing as OpEx actually makes your CFO’s job easier. Here’s how:

Clearer financial statements: Treating marketing as OpEx leads to cleaner, more straightforward financial statements, simplifying your job in preparing financial reports and ensuring transparency for all stakeholders.
Easier budget management: With marketing as OpEx, you have greater control over the budget. You can allocate resources more dynamically, responding to changes in the market or business priorities. It’s easier to manage and forecast expenses when they align with the business’s actual needs.
Reduced risk: Capital expenses carry inherent risks. What if the asset becomes obsolete or doesn’t perform as expected? Treating marketing as OpEx eliminates the risk associated with depreciating assets, offering a more predictable financial landscape.

Take it from us, it’s a great way to endear yourself to your head of finance, which can grease the wheels when you’re looking for approval on decisions that need to be made quickly.

It can send the right signal to strategic marketing hires

This last advantage of classifying marketing as OpEx is an easy one to overlook, but it can be really impactful. Top marketing talent often prefers companies that treat marketing as an operating expense. You might be surprised if this question comes up in an interview for a strategic marketing hire. But when a candidate poses this question, it can be a great indicator of strategic thinking about the level of ongoing business value your company ascribes to marketing. Because they know it demonstrates a commitment to staying current and competitive, being able to tell candidates that you classify marketing as OpEx shows that your company views marketing as a dynamic and mission-critical function and is willing to invest in it continually for long-term success.

Betting on marketing as a dynamic driver of growth

Things are rarely cut and dry when it comes to strategic budgeting, and marketing is no exception. There will always be a need to balance near-term and long-term financial constraints, business goals, and the marketing strategies and assets that support them. And there may be sound business reasons to capitalize on certain marketing investments under particular circumstances. But in general, treating marketing costs as operational versus capital expenses provides the greatest benefit when it comes to optimizing marketing performance, maximizing ROI, simplifying marketing budget management, and positioning marketing as the dynamic level for driving business growth that it is.

Regardless of how you classify marketing expenses on your budget sheet, fostering collaboration between marketing and financial leadership is key. Driving ongoing conversations between marketing and finance will help ensure that your finance team has a clear understanding of the business context for marketing investment, including the roles that various marketing investments play in achieving business goals, how return on those investments is defined, and what short- and long-term management and stewardship of those investments looks like and requires. It will also help your marketing team understand the broader financial parameter and requirements within which the business operates and the considerations that go into expense classification.

Sometimes the best way to foster understanding between your marketing and finance teams is with a partner who understands both sides of the coin and can translate between their unique points of view. If you’re looking for guidance or support bringing these critical business functions closer together, let’s talk.

Tags brand strategy, business strategy, customer experience, empathetic marketing, product development

Reaching New Customers Strategy

Swift Moves: What marketers can learn from Taylor Swift and Travis Kelce

Post author By Jessica Pumo
Post date October 6, 2023

The suspected budding relationship between Taylor Swift and Travis Kelce has become a major media moment. Whether you’re team “ Tayvis” or “Swelce” (or you remain unaffiliated), it’s almost impossible to escape the very real effects this speculated pairing is having on pop culture, whether romance is real or not. But what does this celebrity romance have to do with marketing? Well, hang on to your Eras tour T-shirts, because there’s more to this story than meets the eye.

Let’s explore how the “shipping” of Taylor Swift and Travis Kelce by both music and football fans alike has sparked newfound engagement within the NFL community and the lessons marketers and growth leaders can draw from this phenomenon. …Are you ready for it?

Electric Touch: The high-voltage power of unexpected partnerships

When marketing strategies get a little stale and your standard playbook starts gathering dust, a creative and unexpected partnership can be an effective way to shake it off. This is an approach Swift has deployed herself in collaborations with unlikely artists like Kendrick Lamar in “Bad Blood.” The media attention on Taylor Swift and Travis Kelce’s apparent joining of forces is a great reminder that successful marketing often involves unexpected partnerships and the value of being open to collaboration opportunities outside of our comfort zones.

The media attention on Taylor Swift and Travis Kelce’s apparent joining of forces is a great reminder that successful marketing often involves unexpected partnerships and the value of being open to collaboration opportunities outside of our comfort zones.

While the generated media attention is great for driving cross-audience awareness for Swift’s and Kelce’s respective personal brands, is there a more substantial quantitative impact behind the hype? Absolutely. Consider this: the NFL, a sports giant with massive brand awareness and a highly engaged core audience, is experiencing increased engagement from Taylor Swift fans because of her connection to Travis Kelce. In fact, the Chiefs vs. Bears game where a cheering Swift first caught the attention of viewers and sportscasters was the most watched game of the week with nearly 25 million viewers, including a 63% increase in female viewers aged 18 to 49, according to Roku. This unexpected alliance demonstrates that sometimes, the most fruitful partnerships come when you’re willing to break the ice and think outside the box.

Emotional Connection: How soulful and authentic storytelling hits different

When it comes to authentic storytelling and connecting with people on an emotional level, Taylor Swift could teach a master class. She’s poured her heart and soul into her music, sharing her life’s ups and downs through songs like “Love Story” and “All Too Well.” Her lyrics and melodies tap into the human experience, making listeners feel like she’s singing about their lives and her uncanny ability to connect with her fans on an emotional level has turned them into a community of loyal followers.

In marketing, it’s crucial to tell your brand’s story authentically. Customers connect with brands that share their values and experiences. Marketers can create emotional connections with their audience through storytelling, relatable content, or simply empathizing with their customers’ needs. Finding that end game of emotional engagement can make all the difference, so don’t be afraid to share your journey and be as fearless as Taylor when it comes to opening up to your audience.

Staying Relevant: ‘Tis the damn season for a reinvention

In marketing, adaptability is key. Both Taylor Swift and the NFL have showcased remarkable adaptability in reaching and engaging their expanding fan bases in the face of an ever-evolving digital landscape. From her country beginnings in Tim McGraw to her pop reinvention in 1989 and her indie-folk venture in folklore, one thing Taylor Swift is known for is her ability to adapt and evolve with the times. She’s consistently changed her style, not just to stay relevant to an evolving audience base but to reflect the evolution of her own identity as an artist and brand. She seamlessly transitioned from country to pop, experimenting with indie-folk, and all the while, leveraging digital platforms to release surprise albums and engage directly with her fans on social media. The result has been a resounding and quantifiable success.

For its part, the NFL has recognized and responded to the shifting media consumption habits of younger generations and embraced digital platforms to livestream games, share highlight reels, and interact with fans in real-time on social media. Travis Kelce specifically has showcased a remarkable ability to engage effectively with a digital-native audience, elevating his status as both a sports personality and a brand. Kelce’s active presence on platforms like Instagram, Twitter, and TikTok allows him to share behind-the-scenes glimpses of his life, showcase his unique personality, and connect with fans beyond the football field. And New Heights podcast with brother and Philadelphia Eagles center, Jason Kelce, has become a dynamic platform where the Kelce brothers engage with their fans on various topics, including sports, lifestyle, and personal experiences. By leveraging the podcasting medium, they’ve created a space for candid conversations, special guest appearances, and authentic storytelling, further solidifying their status as relatable sports figures in the eyes of their fans. The podcast serves as a prime example of how athletes can use modern digital channels to connect with their audience on a deeper level and bridged the gap between traditional sports and the digital age, appealing not only to sports enthusiasts but also to a younger, tech-savvy audience.

By adapting to the digital era and staying attuned to their fan bases’ preferences, Taylor Swift, Travis Kelce, and the NFL as a whole have proven that flexibility, digital prowess, and a willingness to reinvent are essential for sustained success in an ever-evolving digital marketing and entertainment landscape. And you must be ready to pivot and reinvent your strategies to keep up and you can’t be afraid to begin again when necessary.

Crossing Boundaries: Challenging the borders of audience and pop culture

Travis Kelce’s fanbase in the NFL is predominantly sports-oriented. Taylor Swift’s is music-focused. It might be easy to assume that those audiences are mutually exclusive, but they’re not. In fact, Tallwave Product Manager, Anna McKee, sits squarely in both camps. “I’ve been a Chiefs fan my entire life, and I’ve been a Taylor Swift fan since her career first launched. I’ve seen 5 Taylor Swift concerts—two at Arrowhead—and have owned Chiefs season tickets for the last 5 years. I’m right at the center of the Taylor and Travis Venn diagram.” Anna was at the fabled Chiefs vs. Bears game and experienced the phenomenon of this pairing firsthand and then had the experience of watching it from afar catching the Chiefs vs. Jets game a week later. “It was wild how clear the effect was between the two games but in totally different ways. Without the benefit of a TV broadcast to provide a birds’ eye view while I was physically at the Chiefs/Bears game, the conversation was about Taylor the entire time. Whether it was a question out loud or a text or a tweet, everyone wanted to know why she was there, who she was with, and whether it was a PR stunt. Regardless of the speculation, the general consensus with the women I was with was that we didn’t care, we were just excited she was there! Watching the Chiefs/Jets game a week later on TV, the broadcast kept cutting to her, which made it even more real and, in some ways, more exciting.”

“I’ve been a Chiefs fan my entire life, and I’ve been a Taylor Swift fan since her career first launched. I’ve seen 5 Taylor Swift concerts—two at Arrowhead—and have owned Chiefs season tickets for the last 5 years. I’m right at the center of the Taylor and Travis Venn diagram.”
Anna McKee, Tallwave product manager

The steep spike in NFL engagement among women suggests that the apparent relationship has bridged these two seemingly disparate communities, creating a fusion of interests. And Anna’s experience and those like her who are long-time fans of both found another reason to engage more deeply. If there’s one lesson here for marketers, it’s the power of tapping into multiple affinities where possible.

Staying Social: Be a trendsetter, a star

The sudden surge of engagement within the NFL community due to Taylor Swift’s involvement demonstrates the importance of monitoring and staying on top of trends, particularly when it comes to social media. And on that front, Taylor Swift is a force of nature. For example, when it comes to social following on Instagram, Swift’s following outpaces the NFL’s by an order of magnitude. She’s got 273 million, over 9 times the NFL’s 28 million. And Swift’s social power is translating to real gains for both the NFL and Travis Kelce.

While the NFL is still trying to find its footing on how to maximize its return on the Swift halo effect (posting references to Swift’s presence at the game and then subsequently removing them after receiving some backlash), there’s no question they’ve benefitted. As just one example, with the boon of content focused on Swift and Kelce as a pair, the NFL has seen record views on TikTok content. That halo effect has extended to Travis Kelce, too, helping him pick up 380k new Instagram followers and boosting his podcast into the top spot on Apple’s charts.

The surface lesson for marketers here is straightforward: an active and engaging social media presence on platforms like Twitter, Instagram, and TikTok can help you connect with your audience, share your story, and foster a sense of community. This is particularly beneficial for driving engagement with your audience outside of high-intent moments, which can add up to real value over time as it helps cement your brand in the minds of your audience. But there’s a deeper takeaway about the art of timing. As the saying goes, “timing is everything,” and the Taylor Swift-Travis Kelce relationship proves this point. Their romance coincided with the NFL season and Swift’s record-breaking Eras tour, leading to a perfect storm of increased engagement. This isn’t the kind of thing that’s easy to anticipate, but marketers recognize the brand-building value of this kind of rare serendipitous moment. The NFL did, too. While every move they’ve made to capitalize on that moment hasn’t necessarily been pitch perfect, they didn’t let perfect execution be the enemy of perfect timing, which is a valuable lesson in itself.

End Game: Summing up

In the ever-evolving marketing world, we can learn valuable lessons from unexpected sources, just like the budding relationship between Taylor Swift and Travis Kelce. Embrace unexpected partnerships, tell your brand’s story authentically, and leverage emotional connections to engage your audience, including in more casual interactions with your brand. Adaptability, engaging diverse audiences, and capitalizing on pop culture can open new doors for growth. And to complete your mastermind marketing strategy, don’t forget the role of social media, monitoring trends, and be ready to seize those rare and powerful serendipitous moments to propel your marketing efforts forward.

Whether you’re ready to see sparks fly between Taylor and Travis or you’ve got bad blood with this attention-grabbing romance, there’s something to be learned from this pop culture phenomenon. Let’s take these lessons to heart, just as we would with our favorite Taylor Swift songs, and create marketing strategies that create a lasting love affair with our audience.

Are you ready for it? We are. Let’s talk.

Tags business strategy, customer experience, Data & Analytics, empathetic marketing, product design, product development