Turbulence for the CMO: Charting a path for the seamless customer experience
Turbulence for the CMO: Charting a path for the seamless customer experience
Turbulence for the CMO: Charting a path for the seamless customer experience
The Pressures on
As CMOs steer a course through the rough waters of todays global marketplace, one thing is certain: not enough feel prepared for the ride. Nearly four in 10 CMOs say they do not have the right people, tools and resources to meet their marketing objectives. Compared to responses from Accentures 2011 study, this is a ve-percentage point drop in preparedness (Figure 1).
Without a doubt, the pressures on. CMOs face wave after wave of competing business priorities, changing consumer behaviors and higher customer expectations. All these factors contribute to an environment made more and more complex by: 1. Relentless demands. In the three years since Accenture began surveying CMOs in global companies around the world,1 none of the top business priorities have declined in importance. Protable growth (87%) and operational efciency (85%) remain in the top positions, followed closely by the need for organic and inorganic growth and the agility to capture opportunities quickly. So strong is the pressure for growth and efciency today that marketers are being asked to support these objectives considerably more than they are being asked to cut marketing budgets (58%). 2. Higher stakes. Customer issues maintain their dominance. For the third year in a row, requirements to acquire and retain customers and increase sales are the most important. As in previous years, these customer challenges continue to increase in difcultyby ve to six percentage points every year. Across 15 enablers often used to support customer centricity and sales, both importance and difculty increased in 2012. Among the new strategies on which marketers were surveyed in 2012, seven out of 10 CMOs found these to be important:
Synchronize the end-to-end customer
CMOs also found it much more difcult in 2012 to improve the efciency of marketing operations (up eight percentage points over 2011) and improve their workforces responsiveness to digital shifts and changing consumers (up 10 percentage points over 2011). 3. Smaller share of wallet. Although large majorities of CMOs saw higher revenues (69%) and budgets (83%), four out of 10 senior marketers also saw at or declining market share in 2012. This is consistent with CMOs belief that it will be harder to obtain and keep new customers and sell more to existing ones. 4. Higher customer expectations. Relevance is here to stay. According to survey respondents, consumers expectations for relevant experiences are having the longest-term impact on marketing strategy (65%). However, as in 2011, consumers still expect value, trust, quality and better customer service, along with relevance (Figure 2). Despite the apparent threat of showrooming, a minority of CMOs (40%) expect it to have a long-term impact.
experience, from marketing to sales to service. Enable agile, timely and relevant marketing. Use data and technology for real-time marketing impact. Importance levels also increased for efciency-related factors, such as the need to cut costs for the marketing workforce and reduce non-payroll items. Six in 10 CMOs found these areas important.
Figure 1: More CMOs feel underprepared (%) ve-point decrease in preparedness 61% 2012 5 34 48 66% 2011 5 29 49 17 13
(Marketing) has to change to keep current customers and acquire more customers.
Marketing director, US bank
2009
10 3
33 4
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Turbulence for the CMO: Charting a path for the seamless customer experience
Long Term Impact Expect offers and interactions that are relevant* Better customer service More innovative products or unique product features Value for their money Expectations for product quality Trustable company Convenience to do business Becoming price-sensitive Purchase via mobile device* Visit our stores but purchase online*
Accuracy of the following statements in terms of customer expectations 69 72 75 70 70 74 76 72 74 74 74 69 67 69 76 41 32 Long term Impact on marketing strategy 61 56 62 66 61 67
Accuracy Trustable company Value for their money Expectations for product quality Better customer service More innovative products or unique product features Becoming price-sensitive Convenience to do business Expect offers and interactions that are relevant* Purchase via mobile device* Visit our stores but purchase online*
72 75
70 70 69 76 69 67 69 41 32 2011 Very important (4) & extremely important (5) 40 47
62 67
61 67 56 66 60 59 65
Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 3: Digital orientation is weakest capability Leading edge / Essential 3.99 3.83 3.76 3.63 0.47 Weakest in Industry / Unimportant 3.53 0.43 0.15 3.48 3.36 0.25 0.34 3.59 3.50 3.54 3.46 3.44 3.75 3.84 0.25 0.40 3.84 3.88 3.77 0.34 3.67 0.15 0.31 3.61 3.52 3.46 0.38 0.22 3.61 3.52 0.37 3.69 3.83 4.02
3.80
3.80
3.89 0.33
0.27
3.33
Offering Innovation
Turbulence for the CMO: Charting a path for the seamless customer experience
22 18 15 12 9 5 6 9 19 20 17 16 13 8 4 8 14 13 10 7 4 6 5 18 18 15 19 17 15 10 7 16 19 17 13
Digital Orientation
Customer Analytics
Offering Innovation
Customer Engagement
Marketing Operations
Access to customer data Lack the required skills Lack of critical technology/tools
Turbulence for the CMO: Charting a path for the seamless customer experience
(The most fundamental change over the next ve years will be) channel proliferation and the move away from traditional direct marketing to more effective ways of leveraging customer stories and referrals via interactive media.
CMO, Financial Services, USA
Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 5a: A proliferation of partners (%) Paid search Search engine optimization Media mix optimization Creative concept development Social media monitoring Media audits Media/advertising optimization Direct mail/marketing eMail marketing Web analytics Brand strategy development Multichannel campaign management Marketing analytics Conversion and optimization Customer insights/analytics Attribution management/modeling User experience Marketing automation Content management Website management Managing customer data Managing ROI Dont currently resource/fund Manage internally
Turbulence for the CMO: Charting a path for the seamless customer experience
Digital Agency (e.g. Digitas, R/GA) Specialized Agency (e.g. Exact Target, iCrossing) arketing Service Providers M (e.g. SapientNitro, Accenture Interactive) Between 45% and 75% of marketing activities are managed by digital agencies, specialized agencies and marketing service providers
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Turbulence for the CMO: Charting a path for the seamless customer experience
With no clear strategic leader among the outside resources, many CMOs default to ineffective internal processes to create the cross-agency view.
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Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 6: Partners weakest at execution and delivery (%) Collaborate with our agencies/partners Understand my brand Understand my business Can talk both technology and creative Support my marketing programs globally Support multi-channel marketing programs Are innovative and push great ideas Can help transform my marketing organization Bring the right talent Provide an integrated view of marketing effectiveness Efciently manage my budget, maximizing ROI Lack of business processes, briefs, decision-making, etc. Not able to deliver what they promise/sell Executes awlessly 11 11 12 13 12 12 15 14 12 13 17 18 35 39 38 39 42 43 41 42 45 43 43 45 42 40 37 37 36 37 33 36 35 32 32 29 13 11 13 12 10 8 11 8 8 11 8 8
20 14
44 50
28 28
8 9
Partners are seen as weakest by 64% of senior marketers (1&2) Not at all satised 3 4 5 Extremely satised
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Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 7: Big jump in digital budgets (%) Marketing budget 2012 Expected change 2011 2009 Negative growth Flat / Little growth 18 19 26 Signicant growth 55 57 52 28 23 23
Marketing budget towards digital marketing More than 50% 23 11 43 36 34 53 66% of CMOs allocating over one quarter of their marketing budget to digital
25-49%
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Turbulence for the CMO: Charting a path for the seamless customer experience
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Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 8: Fundamental changes in next 5 years (%) Overall 2012 2011 2009 Region APAC 2012 2011 2012 2011 2012 2011 29 24 24 15 20 42 71 76 76 85 80 58 30 25 38 70 75 62 More than 70% of marketers in B2B2C and signicant growth companies feel that the marketing function will fundamentally change over the next 5 years. Marketers in APAC are more aggressive about this change (85%) with marketers in EALA (58%) and B2B marketers (62%) not feeling as strongly about such transformation.
EALA
North America
B to C
29 25 30 28 34 23
71 75 70 72 66 77
Flat/little
Negative No Yes
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Turbulence for the CMO: Charting a path for the seamless customer experience
organizational transformation to meet their marketing objectives. The new marketing organization, powered by analytics and technology and focused on business outcomes, will play a critical integration role across channels and business units. Build new skills internally. Marketers will need to hire, reskill and redeploy people to improve efciency, agility and responsiveness. Marketers need talent that can create consistent, multichannel experiences that meet customers needs, expectations and demands for relevance. Innovative employees are high on the CMO agenda. An emerging priority for marketing executives is to hire and grow talent that is digitally experienced and can integrate well with the IT department. CMOs plan to have more employees focused on analytics and digital marketing in the year ahead (Figure 10). About onequarter of senior marketers are dedicating 41-60% of their employees to these areas. They recognize the importance of analytics in understanding how consumers desires for relevance drive marketing decisions. With the shift in budgets to digital, the number of employees focused on that area is expected to increase. In fact, employee headcount in digital marketing shows the biggest jump (eight points) across customer analytics, digital marketing, and marketing and media analytics. More traditional areas of marketing will see a smaller increaseor even a decrease in employees in some cases.
Get aligned with the right set of partners. Agencies and alliance partners must help CMOs make sense of complexity in the marketplace by improving their levels of execution and delivery and by providing a broader set of capabilities and deeper integration across the agency ecosystem. As CMOs consider whether to invest internally or externally, they may prioritize their decisions based on capabilities and satisfaction. For example, external providers receive satisfaction scores nine to 12 points higher than internal resources in the areas of customer insights and analytics, multichannel campaign management, content management, media mix optimization and media audits. D rive digital orientation throughout the enterprise. To improve marketing performance, prepare for the future and reduce complexity, digital orientation can no longer remain only a province of marketing. The entire organization needs to understand how digital is transforming the customer experience. While CMOs recognize the need to increase digital capabilities and budgets to meet consumer expectations and support protable business growth, inefcient business practices hinder the development of a digital DNA across the organization. Some 16% of CMOs encounter performance barriers when trying to work horizontally. The C-suite needs to give digital orientation greater importance by embracing horizontal collaboration.
(The marketing organization) has to change to stay up with current technology. Too much is the old way and not getting results.
VP Marketing, Fortune 100 bank, USA
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Turbulence for the CMO: Charting a path for the seamless customer experience
Figure 9: The impact of operating model transformation on sales Signicant Sales Growth Will not rely at all (1&2) 3 4 5 - Will rely to a large extent Flat / Little Sales Growth Will not rely at all (1&2) 3 4 5 - Will rely to a large extent Negative Sales Growth Will not rely at all (1&2) 3 4 5 - Will rely to a large extent Will not rely at all (1&2) 3 11 4 27 28 34 13 11 39 36 16 8 39 37
53%
49%
45%
Figure 10: Employee growth in analytics, digital marketing (%) % of marketing Employees dedicated to: 41-60% Customer Analytics 21-40% 41-60% Digital Marketing 21-40% 41-60% 21-40% 26 21 33 32 24 21 33 28 23 18 35 33 Direct Marketing / Campaign Management 41-60% 21-40% 41-60% Marketing Operations 21-40% 41-60% 21-40% 21 20 29 28 26 22 30 31 27 24 35 36
Next year
This year
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Turbulence for the CMO: Charting a path for the seamless customer experience
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Turbulence for the CMO: Charting a path for the seamless customer experience
Authors
Brian Whipple Brian Whipple is Managing Director of Accenture Interactive, a business of Accenture that helps companies develop industryleading digital marketing capabilities, including the development and management of websites and interactive marketing, as well as the optimization of online and ofine marketing and merchandising investments. Brian leads all of Accenture Interactives global consulting domains including Digital, Marketing Analytics, Media Management, Marketing Data Management and Marketing Transformation. Prior to Accenture, Brian was Chief Operating Ofcer of Hill Holliday, an advertising and marketing services rm headquartered in Boston. brian.whipple@accenture.com Baiju Shah Baiju Shah is Managing Director for Strategy & Innovation in Accenture Interactive. In this role, he oversees Accenture Interactives business strategy and manages a portfolio of emerging business services. He is responsible for identifying and catalyzing new waves of growth by creating new business services that address unmet needs in the everevolving marketing landscape. He has worked closely with clients across industries including Verizon, Chrysler and P&G on strategies that take advantage of emerging technology and analytics as a competitive advantage in Digital. Baijus expertise lies in digital marketing, advanced analytics, and technology market adoption. baiju.shah@accenture.com
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About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with approximately 261,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the scal year ended Aug. 31, 2012. Its home page is www.accenture.com.
Copyright 2013 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
The views and opinions in this article should not be viewed as professional advice with respect to your business. Disclaimer: Accentures CMO Insights survey uses the generic term partner to refer to entities such as digital agencies, specialized agencies, marketing service providers, advertising agencies, management consultants, systems integrators and public relations rms. The use of the term partner in the survey, the survey results, and in this edition of CMO Insights is not intended to, and does not, imply the existence of a legal partnership.