9 imperatives of the #better #cmo

shanghai | march 2014 | luca destefanis | twitter: @lucadeste!

9 imperatives of the #better #CMO

LUCA DESTEFANIS IBM

SHANGHAI March 2014


seeing the possibilities


LEADERSHIP!INNOVATION!RELATIONSHIP!

Know your customers as individuals

Delight your customers

Nurture the community

Build new skills for a new world

Enable open, sustainable innovation

Lead by design

Deliver the bottom line

Simplify the company

Create an authentic brand and culture

The Better CMO


The Better CMO knows customers as individuals

§  Instrument all the key touchpoints to gather the right data about each customer

§  Connect social media data, transaction data and other information to paint a more vivid picture of each customer

§  Run real time customer analytics (descriptive, predictive, prescriptive) to generate new ideas on whom to serve, and how to best serve that individual

§  Use social mining techniques to identify and target micro-segments, and to refine product / services offering

§  Build the capability to do this at a massive scale

the Better CMO…

Every minute, there are 100k new tweets, 6M Facebook views, 2M+ Google search3

91% of CMO say they should use more customer data to

drive decision making, but 34% claims customer data are collected infrequently1

35% of CMO has a thorough understanding of how

customers interact with the company1

Leading Marketers are 2.6x more likely than peers to adjust real time offer based on context, delivering personalized messages across channels2

1 CMO Study, January 2014!2 State of Marketing 2013!3 Internet in a Minute, 2013!


The US mobile operator masters the art of customer analytics through calls data and

social sentiment mining to reduce churn rate

The leading sporting goods retailer in China captures through its web, mobile and social

media sites all personal and shopping data to launch precision-guided marketing initiatives

The Netherlands’ largest online retailer is grabbing the attention of browsers and

abandoners with a comprehensive behavioral retargeting program

A Hong Kong television broadcaster is using sophisticated analytics to analyze its station’s viewers, programs rating and greatly increase the effectiveness of its advertising promotions

Dutch bank ING Bank personalized marketing activities based on client data and online

interactions, and moved from campaign to continuous dialogue with customers

Luxottica, world’s leader of eyewear captures interactions across every channel on 100

million customers, to define highly segmented customer behavior for targeted marketing

initiatives

The US retailer uses advanced mathematical models to describe a customer’s behavior to

cluster customers based on motivation, engagement and buying behavior

At Petco browsing behavior provides visibility into the dynamics of online conversion,

helping the company to personalize consumer interactions

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The Japanese retailer adopted a multi-channel marketing platform to strengthen relationship

with its customers based on behavioral analysis

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The Better CMO delights customers

§  Create personas and experience journey map that deeply understand and consider customer needs, drivers and emotions

§  Design tailored experiences that connect the company and like-minded customers

§  Create and automate in real time a system of engagement to deliver these personal interactions

§  Break down company silos, integrate channels

§  Build a system of shared valued and behaviors that focuses employee activity on improving the customer experience

the Better CMO…

36% of CMO have an integrated digital and physical strategy1

16% of CMO integrate all the touchpoints across all channels1

Leading Marketers are 5.6x more likely than peers to

use cross channels optimization technologies2 71% of positive customer experience translate into

loyalty, 65% lead to a product or service recommendation3

1 CMO Study, January 2014!2 State of Marketing 2013!3 Forrester North America Customer Experience Survey, 2011!


Finnish retailer Hong Kong Department Stores builds an online e-commerce community

harnessing social networks to provide a richer consumer experience

The airline uses social media and apps to constantly dialogue with customers. Recently

KLM released a mobile app that allows passengers to give real-time feedback on how they perceived their experience at the airport

Ralph Lauren decided to implement a multi-channel commerce platform for the Asia

Pacific business, spanning online, mobile, contact center and brick-and-mortar

commerce

Wimbledon created an engaging and interactive experience across multiple digital

platform: latest news, scores, photos and tweets are always available and the fan can feel part of the actions wherever they are

David Jones is the first major Australian retailer to provide a true cross-channel

shopping experience. Customers can browse, buy, pick-up and return items via a

combination of channels including their phones, the online site and the physical store

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By gaining deeper insights into online customer behavior, the airline company redesigned the online web experience,

resulting in a 7% increase in online booking

The Italian brand re-invented the concept of store, designing an immersive experience

offering all the best from apparel to arts, from bookstore to cuisine

The outdoor apparel and equipment company is testing how cognitive computing can craft new approach to online store, designing a

system that conforms to people needs

By delivering excellence from product design to post-sale service, Technogym is bringing

wellness in our lives

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The Better CMO nurtures the community

§  Tie community engagement to Company mission and values

§  View philanthropic investments as incubators for promising ideas and a mechanism for understanding both community and corporate needs

§  Define specific policies to institutionalize community engagement

§  Promote projects that are development

opportunities for both employees and the community

the Better CMO…

92% of “Millennials” believe that success should be measured by more than profit1

7/10 of US CEOs are developing strategies that support the company bottom line1

59% of Fortune 500 increased philanthropy between

2007 and 20122, and 91% of contributions are non cash2

1 The Wavemaker, Deloitte 2013!2 CECP 2013!!


At Whole Foods, each store donates food to local food banks and shelters, and holds

community giving days where five percent of that day’s net sales are donated to a local

nonprofit or educational organization

In 2003, Vodafone teamed up with United Kingdom’s Department for International Development to bring mobile banking

services to rural Africa

Starbucks mobilizes customers and employees to be a catalyst for change in local neighborhoods. In 2012, during April’s Global

Month of Service, volunteers made a significant impact in with more than 2,100 community service projects in 33 Countries

With the “ Corporate Citizen Program”, IBM sends team of employees all over the world

to address community issues

American Express supports organizations that cultivate meaningful opportunities for civic

engagement for its employees and card members, whether as volunteers, donors,

voters or patrons

The Chinese restaurant chain is deeply involved in Community projects – in

celebrating great events and positive lifestyle, and in helping to make Shanghai and

Beijing better places, as part of the company mission to bring wellbeing to its customers

Through its “Framing Hope” program, Home Depots diverts excess inventory from landfills

into thousands homes and lives every year

The US retailer hosts “Kids Workshop” where children learn to make objects than can be

used in their homes or the communities

The Italian entrepreneur built its vision of humanistic company on the core values of

sharing beauty and work ethic with the community

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The Better CMO builds new skills for a new world

§  Build an organization that operates like consultants, execute like scientists, enables the corporation

§  Consider to build the following capabilities:

-  Marketing scientists mastering descriptive, predictive and prescriptive analytics

-  Behavioral scientists, cognitive psychologists, social scientists, anthropologists, neuro-marketers

-  Trans-media storytellers

-  User Experience Architects, Design Thinkers

-  Social media experts: advisers, architects, analysts, recipients, distributors, producers

the Better CMO…

82% of CMO feels underprepared for data explosion1

8% of CMO feel confident about the skills across all

the digital marketing areas2 40% of CMO are not able to find talent to handle

digital workload1

1 CMO Study, January 2014!2 State of Digital Marketing Talent, 2013!


The Digital Media Department leads the creation, production, presentation, and dissemination of multimedia content to

support the viewing and understanding of the Met's collections

Coca Cola is much more a story factory than a beverage factory. From Santa Klaus on,

people want to see themselves in the stories Coke tells

Campbell's taps 'Neuromarketing' techniques to find why shelf displays left

some customers cold, ending up with altering labels

The US retailer is extensively using User Experience Architect to revolutionize retail

and champion design

Rugby Football Union uses predictive analytics to drive fan engagement and

deliver engaging, real-time insights into the ebb and flow of rugby games – helping to

introduce new fans to the sport

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Significant Objects, a literary and anthropological experiment, demonstrated

that the effect of narrative on any given object’s subjective value can be measured

objectively

A retailer in France uses analytics-driven behavioral segmentation to deliver highly

personalized messages that maximizes value at every touch

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The retailer is leveraging sales analytics collected at store level impacting the entire supply chain from product design to store

stocks

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The US fashion retailer adopted storytelling to communicate real examples of great

customer service from its employees


The Better CMO enables open, sustainable innovation

§  Break down organizational filters, internalize consumer influence

§  Leave room for others to co-create with you, providing a platform for open innovation

§  Explore and exploit new capabilities to help customers achieve their desired results where and when they want more quickly and efficiently

§  Pursue continuous innovation and experimentation §  Design for sustainability, make sustainable product

count, actively promote a sustainable consumer behavior

the Better CMO…

1 C-suite Study 2013 2 DBMG poll 2009!3Sustainability’s Next Frontier, MIT Sloan Management Review, December 2013!4InnovationWorx, 2013!!

Outperforming organization are 1.6x more likely than peers to collaborate with their customers1

67% of US consumers agree it’s important to buy

products with social and environmental concern2

58% of companies rate social & environmental

issues very relevant sustainability concerns, yet only 39% of them reports their organizations are largely addressing them3

22% of companies declare innovation is hosed in

marketing4


The Australian brand of 100% plant based, chemical free, is committed to bringing its

customers the most ecologically sustainable home and personal care products

Nike ignites and drives sustainable consumption supported by a completely

redesigned supply chain and product development cycle

The automotive industry’s top-selling premium car company has a leading role in advancing

individual sustainable mobility

At Henkel sustainability drives innovation and product leadership. Each of the 750 company brands strikes for a balance of People, Profit,

Planet

Revolution Foods mission is to build lifelong healthy eaters by making kid-inspired, chef-

crafted food accessible to all

L'Oréal recently announced “Sharing Beauty with All” the cosmetics giant’s ambitious new

sustainability commitment to transform its footprint while achieving its business goals

The maker of outdoor gear and apparel is continuing its campaign to persuade

customers to buy less stuff.

Rewoolution makes outdoor apparel in pure Merino wool, 100% free of synthetic fibers.

Innovation, "green" sensibility and respect for local craftsmanship heritage work together

Nest reinvented a simple product, that is now driving innovation across multiple

dimensions, redesigning industries, value chains, and customer choice


The Better CMO leads by Design

§  Think systemically §  Design products and services tapping

unexpressed customer needs and aspirations §  Use design methods (such as visualization and

prototyping) to solve business problems

§  Disseminate core design practices in all departments to improve innovation across the entire business

the Better CMO…

1 Danish Design Center 2003!2 DMI design Value Scorecard Winter 2013!

40% higher increase in company revenue by incorporating design activity in the core company strategy1

Design-centric organization outperform the S&P Index

by 228%2


Design excellence is part of IBM’s DNA. Today, the IBM Design Studios are devoted to

infuse in everyday life technologies like mobile computing, analytics, and cognitive

systems

The Foundation developed a solution to help microfinance institutions to align product

portfolio to client needs, roll out new branches faster, reduce loan processing time

Rewriting the book on self-service, the Australian airline designed an experience

that combines the sensing of passenger data by well-placed kiosks and card readers within the terminal with an energized and versatile

corps of roving service agents

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Mayo Clinic pioneered the innovation of Doctor-Patient interactions by lunching a dedicated research and design-oriented

institute that studies the end to end processes of health care provision

P&G operates offsite design thinking workshops that bring together employees

from across the company to use design methods to solve real problems

Danish company LEGO has transformed the process of its design functions, streamlining

product development and disseminating core design practices in all departments to improve

innovation across the entire business

Apple embodies the concept of a business driven by design. Starting with the idea of an interconnected system managing any aspect of our communication, from sound to image.

When the best and brightest managers from GE they're stretched further over the two-week training as they're asked to describe their toughest problem in a haiku and draw

workflow and patient experience maps.

The focus on design-led innovation helped Philips Lighting to transform itself over the past decade from a company that pushed

products into the market into one that designs them with customer desires in mind

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The Better CMO delivers substantial business results

§  Project and track financial return of marketing investments

§  Focus on accelerating progress by identifying projects that will help get started and deliver short-term results and a transformative impact in the next 6 to 18 months

§  Link operational metrics to strategic objectives to financial performance, and drive ongoing interlock with Sales

§  Track Customer Lifetime Value

the Better CMO…

12012 BRITE-NYAMA Marketing in Transition Study!2 State of Marketing 2013!

37% of CMO do not mention any financial metric when discussing their results1

57% of CMO are not basing marketing budget based

on expected ROI1

22% of CMO are using brand awareness as the sole

measure to evaluate marketing spending1

Leading Marketers are 2x more likely than peers to

measure marketing based on Customer Lifetime Value2


The largest Canada’s e-commerce marketplace, launched in 2012, is the fastest growing retails site in Canada, and amongst

top 10 most visited e-commerce sites

Cincinnati Zoo transforms customer experience and boosts profits

IBM Business Analytics creates more than $2.2 million in total benefits, delivering full ROI

within three months

By adopting customer analytics solutions, the Italian car maker Fiat increased response rate

to marketing campaigns of 20% and improved customer retention by 7%

The US media company adopted innovative web analytics solutions to improve click trough rates by 45% and increase page views by 92%

The US educational publisher adopted predictive analytics to shape personalized

marketing campaigned that generated 250% more sales than traditional mailing

By offering dynamically generated, highly personalized product recommendations, the US retailer increased cross-selling to 16% of

total sales

The US marketing firm boosted its revenue by 1.000% in less than 4 years by applying

sophisticated predictive analytics models to uncover trends across thousands of data

The outdoor retailer increased its revenue from product recommendations by 70% by engaging customers with timely, behavior

based during the selection process

One of the world’s largest hotel group, IHG by personalizing messages, down to the

individual hotel / customer, increased revenue per impression by 400% and revenue per

booking by 200%

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The Better CMO simplifies the company

§  Lead by “subtracting the obvious and adding the meaningful” (John Maeda)

§  “Out of the clutter find simplicity” (A. Einstein)

§  Limit the information, engage the imagination

§  Design remarkably clear and unexpectedly fresh experiences

§  Re-engineer the company to deliver the promise (breaking down silos and integrating channels and content)

the Better CMO…

1 Global Brand Simplicity Index, Siegel+Gale, December 2013!2 2012 BRITE-NYAMA Marketing in Transition Study!

The “simplicity” stock portfolio outperform by 100% the average global stock index1

75% of consumers are more likely to recommend a

brand because it provides simpler experiences and communications1

51% of CMO lack of sharing customer data across

the organization2

For simpler experience, people would pay 4.4% to 5.4% more1


The iconic fast-food restaurant gets high marks for speed and

convenience, but also for its accessible menu, transparent pricing and clear, concise

messaging

The Japanese retail company which sells a wide variety of household and consumer

goods, is distinguished by its design minimalism, emphasis on recycling, avoidance of waste in production and packaging, and no-

logo or "no-brand" policy

European-based discount supermarket retailer ALDI continues to enjoy extraordinary success. With more than 9,000 stores

worldwide and a brand that “focuses on the essentials” policy, that translates in 2 products

only for each category

By cutting out the clutter and paring it down into a streamlined app people could

understand and have fun with inside 30 seconds, Instagram reached two million users

in only four months, a rate of growth faster than Facebook and Twitter.

Toyota’s youth brand Scion xB model was made intentionally spare by leaving out

hundreds of standard features in order to appeal to the Millennial Generation, who are

prone to making personal statements by customizing their belongings

The introduction of the new “Simply Everything” plans was a key defining moment in the turnaround of the US telecom operator

Recognizing that consumers are struggling with complex financial products, the Chinese

financial institution Ping An brand promises to make managing finances easier

Baidu is the biggest search engine in China, and with the acquisition of 91 Wireless is now

entering the mobile search market

WeChat with its over 600 million registered users and the launch of open API policies is

the new marketing favorite of many enterprises


The Better CMO creates an authentic brand and culture

§  Develop an acute understanding of the company reputation by actively listening and engaging in social media

§  Systematically close the gaps between the company’s unique character and its reality—in all critical interactions

§  Champion tools that align the organization and social business platforms

§  Ensure that systems are in place to manage the risks of being a social business

§  Shelve the commercial pitch in favor of authentic

storytelling

the Better CMO…

1 Meaningful Brand Index, Havas Media, 2013!

20% of all brands are seen to meaningfully positively impact people’s live1

The Meaningful Brand Index outperforms the stock markets by 120% - as much as top hedge funds1

In Asia, people’s relationship with brands is stronger: people perceive that 39% of brands contribute notably to improve people’s quality of life and would care if 51% of brands disappeared 1


The Spanish financial institution ensures that its brand and its culture are authentically aligned by continually monitoring and

assessing reputational risk.

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Haier shifted its mindset from selling products to selling services and encouraged employees

to face the market directly. In doing so, it fulfilled its consumers’ needs for

customization and personal attention

Nongfu Spring Water is acting as enabler to well-being, enhancing daily lifestyles and contributing to community development

The Japanese electronic is still the brand that is engaging at best in creating emotional link with his customers in terms of “curiosity” and

“pride”

Nestlé ranked #1 for the social and environmental impacts amongst the world’s ten largest food and beverage companies

By living everyday on its own principles, Walt Disney was rated #1 in 2013 for Global Reputation and Most Loved Companies

The Chinese e-commerce company is building a strong reputation for trust – where “fakes”

and mistrust is part of the daily practice

The core values of Trust and Responsibility, Innovation That Matters for Clients and the

World, Dedication to Client Success are fully embodied in IBM culture and all the business

management practices

IKEA embodies the culture and the values of its founder, and the brand it’s recognized to be meaningful, accessible, and transparent

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1.  Know Your Customers As Individuals 2.  Delight Your Customers 3.  Nurture The Community

4.  Build New Skills For A New World 5.  Infuse Open, Sustainable Innovation 6.  Lead By Design

7.  Deliver The Bottom Line 8.  Simplify The Company 9.  Create An Authentic Brand And Culture

9 Imperatives for the Better CMO


Luca Destefanis @lucadeste

9 imperatives of the #better #cmo

Marketing

Transcript of 9 imperatives of the #better #cmo