Bacardi is the world’s largest privately held spirits company, with 160 years of history. It’s now also proving to be a pioneer in digital transformation. The Bacardi team embarked on a radical journey in 2019, to streamline business processes and enhance customer experiences.
The company focused on three key areas: data analytics, e-commerce, and digital marketing. They leveraged data analytics to gain insights into consumer preferences and behaviour and invested in e-commerce platforms. They also developed a digital marketing strategy that included social media and influencer marketing campaigns, to engage with customers and build brand loyalty.
As a result, Bacardi’s digital transformation journey has been a resounding success, resulting in increased revenue and improved customer satisfaction. Many are eager to follow their footsteps, but how did they do it? Jesus Checa, Strategy and Disruptive Innovation Director at Bacardi shared the answers at the recent GDS Digital Innovation EU Summit.
Here’s his top tips for achieving the most successful digital transformation journey…
It’s All in the Mindset
At the start of the journey, it was clear to Bacardi that customers and consumers were expecting to interact in a much more digital way, Jesus explains. “We wanted to be much better in the digital and innovation space. So, everything was anchored there.”
“Companies are not valued on what they are generating today, but the potential for tomorrow.” So, questions the Bacardi team asked themselves were:
- Are we doing the right thing?
- Are we tackling the right problem?
- Is it a problem felt by consumers?
This is why Jesus told the Digital Innovation EU Summit audience, “The mindsets are very important”. He adds, “You cannot judge an early-stage idea with the same lens as an already existing process or project…. That’s super important.”
He says that Bacardi has traditionally ‘looked within’ for ideas, but realised they needed to start looking at competitors. “A lot of ideas are out there, and they are maybe better than the ideas that we have.”
The ‘Do’ Versus ‘Say’ Data
Jesus believes it’s better to have evidence, on whatever you try, that confirms certain behaviours and innovation. “And it’s not just based on what people are telling us. So, we know there is a difference in ‘doing’ versus ‘saying’.”
“We decided to create a digital hub in Barcelona because our technology team was lacking the digital capabilities to create experiences and products.”
This became a key focus for the Bacardi team, one that had to remain at the forefront of future plans. Jesus says, “You need to keep committed to the program. It needs to be a long-term commitment, that’s very important to remember.”
Rewards and Incentives
Jesus believes rewards and incentives are also crucial in your journey. “We must make sure we have the structure in place to incentivise people to take risks. Because you can’t just keep people under the same schemes, rewards, or incentives. They need to be rewarded in a different way”.
Communication, Communication, Communication
A key learning during the Bacardi journey was communication, repeated. Jesus says it was only after the team repeated the same message hundreds of times, that people started to get what they were trying to say.
“It needs to be repeated again, and again, and again, in all forums. The moment you are tired of repeating the same message is typically when people are starting to get it.”
Try Different Things
According to Jesus, “There is no silver bullet, so you need to try very different things. At least that’s how we’re learning. The first important factor to keep in mind is that things need to be ongoing in the corporate strategy.”
“So, if there is no clear mind in the corporate strategy to go on this journey, then it’s going to be a big issue. It’s a long-term game, right? So, it’s not going to pay off in a year. It takes a lot of patience.”
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