Indy AMA Luncheon: IBM CMO Study
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Transcript of Indy AMA Luncheon: IBM CMO Study
From Stretched to Strengthened
Insights from the
IBM Chief Marketing Officer Study
AMA Indianapolis, IN
September 11, 2012
© 2012 IBM Corporation
IBM CMO Study
2
We spoke with more than 1,700 CMOs, 300 in NA, the largest global sample of face-to-face CMO interviews.
16%Communications
36%Distribution24%
Financial Services
21%Industrial
3%Public
44%Growth markets
17%North America
35%Europe
4%Japan
Sectors Regions
The study represents organizations in 64 countries and 19 industries
Growth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan); n=1734North America sample size n = 300, Rest of World n = 1333
© 2012 IBM Corporation
IBM CMO Study
3
Sentiment Analysis was performed on 10,000 quotes
“None of the changes in Marketing today are evolutionary, they are all revolutionary and transformational.”
Insurance SVP of Marketing, USA
“Traditionally, corporate culture and character have been managed by HR, but it can't remain there in a digital environment. The world of separate internal and
external messages is gone, and internal actions, memos and decisions can impact your brand just as much as an advertising campaign.”
Financial Markets EVP, Head of Global Marketing, USA
“I think the biggest marketing challenge will be the analysis and diffusion of data. I firmly believe CMOs and marketers
need to become ‘analytic athletes’ to do their jobs.”
Maureen Schumacher, Southeast Regional Director, Google
© 2012 IBM Corporation
IBM CMO Study
4
Globalization has brought the world to everyone’s backyard
Everyone is a broadcaster, publisher and a critic: there is nowhere to hide
Transparency is the new price of entry
Do more than ever, inside and outside the organization
Be more accountable for return on investment (ROI)
Use tools and technologies that their children understand better than they do
CMOs: swimming, treading water or drowning?
In this digital era... CMOs have to...
And...CMOs have just three to four years
to make their mark
And...more data, more sources, more devices, less clarity
“The role went from marketing, to marketing and client experience, to marketing and client experience and channel. And now I am also doing technology prioritization and all of our service model structure. It really has turned into a revenue officer role, versus a marketing officer role.”
Banking EVP & CMO USA
© 2012 IBM Corporation
IBM CMO Study
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9
13
12
2
4
3
1
7
Key areas of under preparedness are also ones CMOs identify as most critical to enabling the marketing agenda
50
60
70
40
20 40 600
8
6
Financial constraints
Decreasing brand loyalty
Growth market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Global outsourcing
Regulatory considerations
Corporate transparency
5
6
7
8
9
10
11
12
13
Data explosion1
Social media2
Growth of channel and device choices3
Shifting consumer demographics4
Mean
Marketing Priority Matrix
Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
Factors impacting marketingPercent of CMOs selecting as “Top five factors”
Under preparednessPercent of CMOs reporting under preparedness
5
1011
© 2012 IBM Corporation
IBM CMO Study
NA CMOs are underprepared for the growth in channel and device choices and emerging market opportunities
50%
North America CMO Under preparednessPercent of CMOs reporting under preparedness
Data explosion
Social media
Growth of channel and device choices
Shifting consumer demographics
Financial constraints
Decreasing brand loyalty
Emerging market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Regulatory considerations
Global outsourcing
Corporate transparency
77%
69%
78%
71%
59%
67%
75%
67%
62%
57%
57%
51%
67%
Delta withGlobal
+13
+10
+21
+11
+20
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
© 2012 IBM Corporation
IBM CMO Study
7
Academic & Press Reactions
“It’s only the largest and most current of an increasing number of reports and studies that show that marketing management, in too many major
organizations, is sadly ill-prepared to deal with the increasingly complex world in which they operate.”
Don E SchultzProfessor of integrated marketing communicationsNorthwestern University 12.30.11 marketing power
“Marketing must become more adept at managing the magnitude of change now taking place. Otherwise, it will be like going into battle
with a Swiss Army knife.”
Financial Services Vice President, Marketing, USA
Your Opportunity
© 2012 IBM Corporation
IBM CMO Study
8
Social media: a key engagement channel for CMOs
North AmericaPriorities for managing the shift toward digital technologies
Source: Q12 What are your priorities for managing the shift toward emerging digital technologies? (Select top five)
Use social media as a key engagement channel
Design experiences for tablet/mobile apps
Enhance customer loyalty/advocacy
Monitor the brand via social media
Measure ROI of digital technologies
Use integrated software suites to manage customers
Develop social interaction governance/policies
Monetize social media
Analyze online/offline transaction analysis
Gain comprehensive visibility of supply chain
“Our customers value what others say about us more than what we say about ourselves. We can quantify this shift. It is real and happening today. This is why social media matters.”
CMO, Travel & Transportation
© 2012 IBM Corporation
IBM CMO Study
9
Many CMOs are still using data for transactions rather than for deepening relationships with the customer
Awareness/education
Interest/desire
Action/buy
Use/enjoy
Bond/advocate
Segmentation/targeting
North AmericaExtensive use of customer data
Percent of CMOs using data captured within customer lifecycle phases
Source: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases?
Transaction focused
Relationship focused
Missedopportunity
“You want to make sure you are keeping the clients and growing them. That is where the higher net income impact is.”
CMO, Banking industry
© 2012 IBM Corporation
IBM CMO Study
10
Analyst Reaction
“CMOs, Make The Chief Business Technology Officer (née CIO) Your New
Best Friend”
Forrester's CMO practice partnered with the chief business technology officer, formerly known as the chief information
officer (CIO), to publish a report called "CMOs Must Merge Marketing With IT To Win In The Digital Decade
“…...
The conclusion? Only companies with well-aligned marketing and IT departments will see success in what Forrester calls
the age of the customer.
© 2012 IBM Corporation
IBM CMO Study
11
CMOs need to have significant influence across all four Ps, not just promotion, to deliver marketing ROI
North AmericaPercent of CMOs citing significant influence
Integrated advertising and promotion
Aligned internal and external communications
Innovative social and other emerging media
Source: Q14 How much influence do you and your organization have over the “Four Ps” and their related sub-factors?
Promotion
Deeply researching customer needs
Product service portfolio
Comprehensive research and development cycle
Customer experience involving multiple touch points
Channel selection and management
End-to-end supply chain process
Full competitive pricing assessment
Understanding of total ownership costs/benefits
Integrated, cross-company pricing process
Products
Place
Price
© 2012 IBM Corporation
IBM CMO Study
12
Leadership abilities
Cross-CxO collaboration
Competitive trends insights
Management capabilities
Understanding products/services value chain
Social media expertise
Finance skills
Demand creation capabilities
Analytics aptitude
Creative thinking
Voice of the customer insights
Technology Savviness
North AmericaCapabilities for personal success over next 3-5 years
Percent of CMOs selecting capabilities
Source: Q17 What capabilities do you need to be personally successful over the next 3 to 5 years?
CMOs can expand their influence by shifting to new capabilities that focus on technology, social media and ROI
© 2012 IBM Corporation
IBM CMO Study
13
Supporting Press
“Marketing is going through an identity crisis. Brand love and consumer intimacy are both still crucial. Yet today, quantitative
analysis, econometric modeling, real-time message monitoring and adaptation are all elements of the marketer’s tool set.”
From Mark de Swaan Arons Co-founder Effective Brands Marketing Power Fall 2011
Your Opportunity
Expand your horizons by enhancing your personal financial, technical and digital savviness. Personally invest to broaden
your capabilities.
© 2012 IBM Corporation
IBM CMO Study
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NA CMOs face a challenge in getting external and internal audiences to grasp their corporate character
Is your corporate character understood in the marketplace?
Source: Q10 Is your corporate character understood in the marketplace? Q11 How much work is needed to have employees embrace and live the corporate character?
Is more work needed to get employees on board?
say understood and (strong) contributor to brand success
say no or limited understanding of corporate character
Strong contributor to the brand’s successNot understood
32% 41%
say no or very limited work needed
say significant or much work needed
No work neededSignificant work needed
41%29%
North America
© 2012 IBM Corporation
IBM CMO Study
15
Supporting Press
Your Opportunity - Champion your organization’s corporate character
“Transparency is here. Wikileaks is a window to the future of business. Everyone will know about everything you do. Whether it’s your carbon footprint or your
fee structure, there will be no secrets. It’s best to out yourself and engage your community on how to improve your business…..”
From Customers Have the Power by John Winsor
Help the enterprise define and activate the traits that make it unique. Work across the different functions to meld the internal and external faces of the enterprise - for all touch points and experiences.
© 2012 IBM Corporation
IBM CMO Study
16
NA CMOs will define success by combining financial measures with the ability to manage customer experience
North America Seven most important measures to gauge marketing success
Percent of CMOs selecting success measurements
Source: Q19 What are the 5 most important measurements you (will) use to gauge marketing success by 2015?
Customer experience
Overall sales
Marketing ROI
Marketing-influenced sales
Operating Profit
Conversion rate/new customers
Revenue per customer
Global
63%
58%
45%
48%
42%
Not in top 7
42%
“Ultimately, this is what we need to understand – customer and brand analytics: How will a $1 spend in marketing bring the most results?”
Neal Campbell, SVP & CMO CDW, USA
© 2012 IBM Corporation
IBM CMO Study
The changing profession
© 2012 IBM Corporation
IBM CMO Study
© 2012 IBM Corporation
IBM CMO Study
The timeless responsibilities of our marketing profession
Marketers have always been responsible for knowing the customer.
Marketers have always been responsible for defining what to market, and how to market.
Marketers have always protected the brand promise.
© 2012 IBM Corporation
IBM CMO Study
The three imperatives of a new profession
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
© 2012 IBM Corporation
IBM CMO Study
http://www.youtube.com/watch?v=b82Quinl7ac
© 2012 IBM Corporation
IBM CMO Study
Demographicdata
Transactiondata
Interactiondata
Behavioraldata
Transactions
Orders
Paymenthistory
Usage history
Email / Chat
Call center notes
Web click-
streamsIn-person dialogs
Opinions
Prefer-ences
Desires
Needs
Character-istics
Demo-graphics
Attributes
Purchasestage
Armed with new analytics, we are able to enter the world of predicting the next best offer, action or need.
Understanding each customer as an individual
The great leap is into all the data that lies outside our enterprise and into the new insights that data offers.
© 2012 IBM Corporation
IBM CMO Study
The three imperatives of a new profession
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
© 2012 IBM Corporation
IBM CMO Study
http://www.youtube.com/watch?v=uTOcdjf7X74
© 2012 IBM Corporation
IBM CMO Study
Creating a system of engagement that maximizes value creation at every touch
Future portfolio of products, services, knowledge and experiences
Digital analytics Customer segmentation
Attribution modeling
Business intelligence
Customer predictive analytics
Companies that think systemically are able to provide the right offering at the right touchpoint and to motivate greater engagement with a brand.
© 2012 IBM Corporation
IBM CMO Study
The three imperatives of a new profession
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
© 2012 IBM Corporation
IBM CMO Study
In the past, when someone had a bad experience with a company, only the individual would experience it.
Now, the world can know instantly.
© 2012 IBM Corporation
IBM CMO Study
http://www.youtube.com/watch?v=bz3wb45FZLM
© 2012 IBM Corporation
IBM CMO Study
An internal memo is leaked to the
media
An influential blogger has a bad customer
experience
Advocacy groups reveal an unethical practice in the
supply chain
Every day, millions of actions driven by our culture influence what others think of our brand.
Designing your culture and brand so they are authentically one.
Through engagement and social listening, the new profession of marketing closes the gaps between the brand promise and how it’s experienced in reality.
© 2012 IBM Corporation
IBM CMO Study
The three imperatives of a new profession
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
© 2012 IBM Corporation
IBM CMO Study
31
Visit ibm.com/smartermarketing for more insights
© 2012 IBM Corporation
IBM CMO Study
IBM provides a proven and comprehensive set of marketing software and services
IBM Smarter Marketing Solutions
Marketing Strategy and Transformation
Customer Analytics
Social Marketing and Collaboration
Marketing Performance Optimization
Customer Experience and Engagement
© 2012 IBM Corporation
IBM CMO Study
33
Closing Thoughts…
Be ready for a career of perpetual learning and change – no matter your role in the marketing ecosystem
Pick one of the imperatives to explore for your business:
– Understand each customer as an individual– Create a system of engagement that creates value– Align your brand and corporate character as one
© 2012 IBM Corporation
IBM CMO Study
Thank You!