CMO

8月 112018
 

With analytics, brands can see the world as their customers do ‒ and shape customer experience in real time. And according to latest Harvard Business Review Analytics Services Report, Real-Time Analytics: The Key to Unlocking Customer Insights & Driving the Customer Experience, real-time analytics is a critical enabler. There are [...]

Who owns real-time customer interactions in the C-suite? was published on Customer Intelligence Blog.

3月 272014
 

It’s never been more important for marketing to speak the language of technology (IT) and for IT to speak the language of marketing. Why? Because technology is radically changing the world and marketing and IT have the opportunity to radically change the enterprise together. Yes, the stakes are high and so is the potential payoff.

The opportunity is to create great value by realizing the innovative power of technology, and doing it requires agility, resourcefulness and a willingness to collaborate like never before.  The interesting part is that each of those three factors rely heavily on people skills.

SAS Global Forum Executive Conference Keynote Panel Discussion

Keynote Panel Discussion, SAS Global Forum Executive Conference

These themes emerged among the topics covered by the keynote panel at SAS Global Forum Executive Conference and it struck me how much they also resonate in marketing.  The panel was moderated by SAS Vice President of Best Practices Jill Dyché and included these executives:

Jill set up the discussion with the idea that “we’re still victims of the cultural paradigms at our companies” – and she cited examples to underscore her point. There are legacy mind-sets and processes that need to be changed before the possibilities can take place, and that’s why the catalysts are the people skills. It’s natural to have a viewpoint informed by past experience, and getting beyond those predispositions takes work. It’s not too different than going to a family reunion or when visiting your home town – it may take some adjusting for your old neighbors to see beyond your teenage years’ antics and engage with you as the adult you’ve become. Showing up with your wife and kids helps that process, but it still takes time.

Overcoming Legacy Mindets
Peter noted the legacy mindset that evolved because IT has traditionally had control over what happened and why – largely in siloes. Now, we have consumer-driven collaboration and related applications that are impacting the way things are happening.  His point was that the only way to drive technology-driven innovation is to seamlessly connect customers and employees back to your systems of record (CRM, ERP, etc), and it’s actually more accurate to consider them “systems of engagement.” Not making those connections, of course, means potentially forgoing the opportunity to drive the engagement.

The corollary in marketing is the heritage of push-marketing and campaigns that make it seem like you’re always broadcasting and not listening. Customers want something different nowadays and they want to engage with your organization on their terms – and listening is not optional. Opt-outs and do-not-call-lists are proof positive that marketers not only have to be sure their message is relevant, but so are timing, channel and even medium. Think of how frustrating it is to get an offer via email on your smartphone and then be taken to a non-mobile friendly page.

Attitude and Approach Matter
Attitude and approach also have a big impact. Mary, whose current role as CEO of Canadian Tire includes both IT and marketing, has visibility to both sides. Her view is that if IT comes to the table thinking that they’re just accountable for getting things done and if they don’t see that they can bring the future to fruition, that’s a problem.  Another big issue is language – not having a common language is an impediment.  Coming together to identify common challenges is very important, especially when it’s clear how each party brings a critical piece of the puzzle to the solution.

Find a Common Language
A recurring theme throughout the discussion involved language and perspective. Jill noted that she still has occasions when talking with IT executives that they are referring to their business counterparts as “they,” invoking the classic “us versus them” point of view.  Language also comes to bear in standardization initiatives, which often happen on an enterprisewide basis. Those can be especially threatening because standardizing can often be seen as involving some degree of giving up control. So when peoples’ accountability doesn’t change accordingly, the threat can seem quite real. James noted that it’s often best to start by simply agreeing on definitions to frame the discussion with everyone having the same understanding. Process changes and standardization in marketing are happening increasingly with IT at the same table, so this idea of needing a common language has never been more critical.

Get a New Perspective
A change in perspective can be transformative. James shared that one of the most impactful things for him as a CIO was an invitation from one of business counterparts.  A major business unit head took him on a sales call, during which he got insights into the customer he would never have gotten in a conference room. And those revelations gave him valuable common ground with his business counterparts that evolved into a very productive partnership.

And sometimes a major technology initiative can spring forth quite far from headquarters, which is a whole different take on perspective.  That was the case when FedEx gave its drivers hand-held scanners a decade or so ago. Back then, it was a competitive advantage that was initiated in their field operations in response to service issues.  Today it’s table stakes for any package handling operation. The changes driven by shifting customer behaviors and needs are happening quickly, and collaboration is increasingly needed to realize the potential of technology to address those needs.

Reinvention – the Ultimate in Adaptability
Jill cited a recent ComputerWorld article that spoke to the thought that the best IT leaders reinvent themselves, which led to James sharing his experiences in reinventing himself. In most companies where he supported the business from an IT standpoint, he wound up running the business. And that had to do with how he reinvented himself – which he’s done in 3 ways at different times:

  1. He went from being a speaker to a communicator.  As a speaker, he spoke the language of IT, but as a communicator he spoke the language of business. Most business leaders do not have a quantitative background, so making the change from a speaker to a communicator is to get out there and get to know the business.
  2. He went from being a project manager to a change manager. As a project manager, he was focused on the technology and the tasks, and as a change manager he was more focused on the people and the processes and how the technology is going to impact them.
  3. He went from being a student of risk management to a student of critical thinking, where he evolved from focusing on controlling risks identified in assessments to more thoughtfully assessing the hidden biases that were feeding into the very assessments. It became apparent over time that the issue often was not that the risk were unidentified, it’s that they simply weren’t assessed properly.

And related to critical thinking is getting the right perspective when faced with big data. The more data you have, the more noise you’ll have so you need to know how to tune out the noise. And it also helps to remember that data is objective and interpretation is subjective. Someone will be interpreting that data, and it’s critical to understand the thinking that went into the models that are built to deliver the insights needed to make informed decisions. By knowing the underlying thought processes, you know the key levers that the company needs to be successful and how to pull those levers.

And knowing the right levers and how to marshal resources across organizational lines to respond to technology changes are what it takes for executives to drive innovation. Finding a common language is a stepping-stone to finding common ground for collaboration. And changes in attitudes and perspectives will go a long way toward leaving legacy mindsets behind to enable customer-centered strategies that add lasting value. We’re all facing technology changes – and we should all consider how they are affecting how we operate, and what the changes we need to be a part of making.

Or as James observed in a closing thought:

Most leaders don’t fail at the “what to do” question – it’s usually “how we do it” that trips people up.

tags: big data, CIO, CMO, leadership, sas global forum executive conference, strategy
3月 262014
 
Jill Dyche moderated a panel at SAS Global Forum Executive Conference.

James Dallas speaking on a panel with Peter Moore and Mary Turner, moderated by Jill Dyche.

Adversarial relationships make for wonderful stories. Why? Because we can relate to them so well. It’s human nature to clash with rivals - cat fights, turf wars, even sibling rivalries reliably sell magazines and fill cinemas and theaters. But are they good for business?

Of course not, especially not if the adversaries have the same logo on their paychecks. The traditional relationship between IT and marketing has been more adversarial than not – especially considering the differences in mind-set, focus and even language spoken by the two enterprise functions. Thankfully that’s changing.

Many of the same dynamics changing IT are also changing marketing and it’s driving the need for those two functions to work together. The role of big data in driving that developing partnership was pretty well described in CMO Council research sponsored by SAS, Big Data’s Biggest Role – Aligning the CMO and CIO.

That evolving partnership was also validated on a panel discussion moderated by Jill Dyché at this year’s SAS Global Forum Executive Conference. Jill posed the question to panelist James Dallas, former CIO at Medtronic Corporation, “How is IT Changing.” Much of the answer he gave could very well apply to the question, “How is Marketing Changing." Here is what he said:

There are three major trends that are transforming IT as we know it:

  1. Taking IT outside of the traditional walls of IT. Smartphones, mobile apps, analytics and the cloud are driving this trend.  All of a sudden more IT is happening outside of the traditional domain of IT.
  2. Data privacy, data security and data accuracy are requiring that IT control what’s happening outside of IT as if it were inside of IT.
  3. The requests that are coming from the users now have to deal with “give me more data” because more data is going into decision-making now. So, decision-support information and customer-facing information. When it comes to those two kinds of information, you rarely get the requirements right the first time, making it more an iterative process (therefore time-consuming and labor-intensive).

So if you’re a CIO and you’re dealing with these three trends, you’re having more “reflective moments,” which he clarified rather humorously as “that’s when you look at the computer screen or you’re in a meeting and you have that blank look on your face. And that’s when every other word is ‘damn.’ So as a CIO, how do you go from the controlling side, to now not being fully in control?”

In those same veins, the marketer is dealing with “empowered customers” that engage with the organization across multiple channels and have an expectation that any one of the company touchpoints have a full view of their profile and history. At the same time, positioning and brand conversations are increasingly being influenced by customers.

In the end, marketing has become more technology-driven and IT priorities are increasingly being driven by marketing’s need to orchestrate customer interactions across departments and often in real-time. There’s never been a better time for IT to speak the language of marketing and vice-versa. More on that in another post.

Thank you for following!

tags: analytics, big data, CIO, cloud, CMO, internal alignment, mobile, sas global forum executive conference
3月 142014
 

We’ve talked in the first two posts about how the digitization of everything is disrupting marketing and changing the face of commerce. Organizations are having to change the way they operate, and that’s causing roles in the C-suite to evolve.

The digitization of everything is doing three primary things:

  1. Increasing the speed and access for everyone to find and interact with relevant people, information, and products/services.
  2. Creating a fast-paced, never-ending game of “survival of the fittest” among corporations.
  3. Moving more of the customer journey into digital channels.

These three factors are forcing organizations to focus on being found among an ever growing sea of competitors – and also on responding in context to their audience with something that resonates.

This requires an increasing depth of customer understanding. Companies need to understand what customers want to accomplish, the motivations behind their actions – and be able to provide meaningful responses, at scale, across a growing spectrum of channels.

Each time a vendor does this well, it raises the collective bar of customer expectations, until someone does it better. This constantly repeating, ever shortening cycle puts an enormous amount of pressure on every company to relentlessly innovate. Those that don’t, struggle or die.

The increasing reliance of the CMO on technology to help them know and respond to customer needs, coupled with the availability of cloud infrastructure and applications, is forcing both the CMO and CIO to re-evaluate their roles.

The power shift
Marketers used to present the CIO with budget requests full of vague system requirements that were often relegated to the bottom of the priority list. Now, CMOs are both required and empowered to drive innovation to reach and convert more customers.  They need technology to perform their job –and much of it is accessible without the blessing of the CIO. This power shift is just part of the evolving CMO and CIO roles.

The requirements for CMOs have been shifting from “chief creative megaphone holder” to customer experience champion, building meaningful engagement, and driving increased loyalty and advocacy. These new priorities require intimate understanding of the customer, and the operational excellence to respond with relevant communications, content, and co-created products and services.  To do this at scale requires information technology infrastructures that can capture and align traditional structured data with exponentially increasing sets of unstructured data. Extracting insights from the data sets and converting them into operational strategies and execution plans still need to be done.

Several recent surveys have placed concern over disruptive technology at the top of the list for CEOs. The CIOs are best positioned to understand the technology, but, more importantly, their organizations need them to be able to articulate how these new technologies can impact their marketplace. While CIOs of yesteryear often concerned themselves with knowing all the details of the underlying infrastructure that nobody in the business really cared about, they often now need to be “business first” so that they can truly partner with the rest of the C-suite to meet constantly evolving customer demands.

Recent research from Accenture highlights that the gap between CMO and CIO is still significant, but both sides acknowledge the need to work more closely together.

From the report:

“On the surface, CMOs and CIOs seem to agree (on the need to collaborate). Dig deeper, though, and CIOs feel a greater need for alignment. Nearly eight out of 10 agree that alignment is needed, compared to just over half of CMOs. Worse, only one in 10 marketing and IT executives say collaboration is at the right level. Despite their growing understanding that they must be more closely aligned, CMOs and CIOs have a trust issue”

The trust issue stems largely from the fact that they have misaligned priorities, different C-Suite relational priorities, and the legacy of bad experiences in the past. Some of the misalignment is highlighted below.

“Marketing strategy is increasingly focused on how to leverage Big Data. Turning this data into relevant customer experiences at scale is a far cry from past capabilities focused on creative and brand strategies. These new services require a new kind of rigor and a deep technology backbone to enable them.”

Not surprisingly, then, marketing’s #1 driver (out of 15) for aligning and interacting with IT is access to customer insight and intelligence, but that driver ranks #10 for CIOs. A typical IT concern—for privacy and security around customer data and brand protection—ranks #4 for CIOs but #11 for CMOs.

Essentially, CMOs view the CIO organization as an execution and delivery arm, not as a driver of marketing strategy and excellence, and a partner to be considered on equal footing. CMOs expect much quicker turnaround and higher quality from IT, with a greater degree of flexibility in responding to market requirements. Nearly five in 10 CIOs say that marketing makes promises without agreement from IT, while only four in 10 marketers agree with that assertion. Some 36% of CMOs say that IT deliverables fall short of their expectations, while 46% of CIOs respond that marketing does not provide an adequate level of business requirements.”

Increased customer demands and the digitization of everything is forcing CMOs to be more quantitative, accountable, and tech savvy, while CIOs are being forced to really understand business and market drivers — and the impact that data and technology can have in enabling marketers to perform better.  Mandates for increased collaboration and shared accountability and incentives from the office of the CEO can help with this necessary transition.

-------------

This is the last in a series of three posts on The Digitization of Everything by guest contributor Brian Vellmure. Brian is an accomplished business leader, management consultant, keynote speaker, and an award winning syndicated blogger. For more updates and insights from Brian, please visit his blog http://www.brianvellmure.com/ and follow him on Twitter: @BrianVellmure.

tags: big data, CMO, Digitization of everything, internal alignment, strategy
10月 192013
 

As technology has changed the way people communicate, do business and generally lead their lives, CMOs have shifted their strategies to lead data-driven marketing in ways that maximize new opportunities and mitigate new risks.One panel discussion at this executive event focused on the changing role of the CMO. As the second in a two-part blog post, I’m sharing the recurring themes I’ve taken away from the most recent Argyle Executive Forums CMO Leadership Forum in Philadelphia.

Just as leading marketing executives have:

  • Started with a desired vision of the company in the mind of the customer,
  • Focused on being informative, and not annoying or creepy, and
  • Re-thought metrics, the questions being asked and adopted techniques like data visualization.

They’ve also led data-driven marketing in ways that meet internal pressures to show ROI and external pressures to be relevant. Some of the other recurring themes in the panel discussions and in the conversations during breaks included these:

Recast the dynamics in the C-suite
SAS’s own Hillary Ashton has seen the dynamic change across industries where marketing now has a “seat at the table” in the C-suite. As marketing has changed from being a cost center to a profit center, more CMOs are coming from a data-driven background, enabling the accountability and ROI focus that drives conversations and decisions in the C-suite.

  • Heather Neary, CMO at AuntieAnne’s shared that before any initiative gets off the ground, she gains alignment with the CFO, CIO and the franchise partners by laying out a plan to test, measure and improve – all based on data.
  • Donna MacFarland , CMO, Retirement Plan Services at Lincoln Financial added her experience that creating transparency about marketing processes helps the CMO establish credibility among peers.
  • Mark Conces, SVP and Head of Marketing Analytics at RBSCitizens Financial pointed out that it isn’t just data-driven marketing, it’s about understanding the numbers that drive the business, so finance skills are now critical to marketing.

Be more efficient and agile
For marketers just about everywhere, the 2008-2009 recession constrained marketing dollars, so it accelerated the need for efficiency. Since then, best practices have emerged in applying analytics to marketing with documented results.

  • RBSCitizens’ Conces shared that for them, marketing is now less about volume and more about getting the right customers, and data-driven marketing helps allocate scarce resources better.
  • At Lincoln Financial, increased agility has come with a change to quarterly planning from annual planning. In addition, MacFarland added that marketing often can seem like running in parallel – meeting current demands while also building a foundation for the future. As a result, hiring and skills acquisition is critical to preserve the agility.
  • SAS’s Ashton added that customers are expecting us to become more agile and responsive, so the next era of marketing is about executing flawlessly - a nod to the increasingly important role of marketing operations management.

Create a framework for receptivity to new and changing technologies
Since the technology adoption by our customers is what’s driving so many changes, it behooves marketing leaders to prepare their teams to embrace the same technologies and adapt to them.

  • At Lincoln, as a service provider to companies that provide retirement plans, those customers are the ones asking for data so they can plan and strategize. Since the needs are customer-driven, showing the impact on sales is very effective in the dialogue with IT about technology, MacFarland added.
  • SAS’s Ashton shared that the most effective approach to technology is to focus on the business problem you’re trying to solve. For a grocery company – it might be how to solve a couponing challenge, i.e. no Coke and Pepsi in the same offer. And it goes from there. You can’t boil the ocean, but you can start by looking at it problem by problem.
  • At Auntie Anne’s, Neary emphasized  the need to show how the technology builds the business and that it’s not technology for technology’s sake.

Make content individually meaningful
There’s a growing recognition that storytelling and engaging the audience on an emotional level as individuals is both powerful for marketing and meaningful for customers. That theme emerged on a panel discussion convened to explore content marketing.

  • As Courtney Pierce, Senior Director of Demand Generation at Brightcove put it so succinctly and eloquently:
    Facts tell but emotions sell.
  • Neary at AuntieAnne’s shared that their marketing focus has shifted away from selling the brand or specific products and more toward making emotional connections with consumers.
  • Jean Wiskowski , Prudential Group Insurance’s CMO, shared two great examples on ways they engage their customers in a dialogue that's customer-centered and emotional at the same time - their Bring Your Challenges campaign (focused on five major challenges that sound financial planning can address) and their Day One Stories campaign (focused on the first day of retirement and what it takes to get there).

Update how you develop and use content.
Closely related to the quality of your content, is the way you develop and deploy it. As in all areas of marketing, the key is to make sure you're matching the needs of your audience.

  • For Brightcove’s Pierce, the right approach to content accounts for the value placed on time of their prospects, so meeting their needs and the cadence of how they operate is important. As a result, making content accessible, consumable and meaningful are all key to its success.
  • Sagar Dalal, Citigroup’s VP of Internet & Mobile Marketing shared Citi's focus on balancing the need to be seen as serious, while also being approachable. And as we “put themselves out there” (in social channels), we need to be prepared to deal with potentially negative feedback. The proliferation of channels and channel preferences has meant that format and delivery are both considerations with regards to content.
  • At Prudential, Wiskowski said that thought leadership papers are still important in their mix, but they also look for ways to repurpose content in different formats. The advantage of digital channels, she added, is that they can test and improve in shorter timeframes.
  • Finally, I thought the approach to YouTube at Citigroup that Dalal shared makes a lot of sense – they see it a great way to test advertisements before they’re deployed on more expensive paid channels, such as television.

I found these insights timely as we’re well into 2014 planning, so hopefully they’re helpful for you as well. I’d love to hear about any other trends you see, or best practices you’ve come across. As always, thank you for following!

tags: Argyle Executive Forums, big data, CMO, content marketing, leadership, marketing operations management, strategy
10月 172013
 

American Red Cross's Banafsheh Ghassemi with Teradata's Lisa Arthur at the Argyle CMO Forum in Philadelphia.Technology has dramatically changed the way people communicate, do business and generally lead their lives. It’s increasingly online, and it’s increasingly mobile. In turn, those technologies have created tons of data-driven marketing opportunities, and it turns out that there are some recurring themes in how CMOs are leading the charge.

Big data, the explosion of channels, the advent of social media and customers' changing habits and expectations can be challenges – if you see them that way.

A more productive approach, of course, is to consider them as opportunities. At least that’s one conclusion I drew from the topics discussed at the most recent Argyle Executive Forums CMO Leadership Forum in Philadelphia. More specifically, I was able to gain some good insights into how CMOs are leading data-driven marketing:

Define the vision and build from there

For marketing leaders at the American Red Cross, the opportunities lie in targeting potential donors with the right messages about the right ways for them to make an impact. At the same time, other opportunities result from shifting the competencies of their marketers to be comfortable with data, while maintaining their creative edge. In the face of all this change, Ms. Banafsheh Ghassemi, their VP of Customer Experience & CRM also believes the best starting point is to create a vision of what you want your customers to remember you by, and then build the rest of your marketing around that vision. This strikes me as good, solid advice and I’d add that you need to make sure that vision aligns with the corporate mission – if not, then one of the two needs to be re-thought.

Be informative – not annoying or creepy

As the executives considered customer engagement in our hyper-connected world, Andrew Shipe, VP of Marketing at Aramark Sports & Entertainment speculated that we may be breeding impatience through how we’re marketing to our audiences with these new channels and technologies. But more importantly, what’s happening is that the definition of what’s relevant now has as much to do with time and place as it does with the quality of the content. So, while we now have the ability to make offers to consumers that pass by your store, should you do it? Oppenheimer Funds’ VP of Marketing Technology, Mr. Fu’ad Butt offered that there’s a fine line between informing and annoying. And annoying can very easily become creepy.

And for some period of time as marketers continue to use online behavior, contextual data and unstructured data to inform the ways we engage our customers, there’s a certain amount of creepiness that will inevitably happen before it starts to become normal, according to Matt Spiegel, SVP and GM of Americas at MediaMath. I can see his point, but I still think markerts would do well to tread carefully about how they gather and use data. With all the controversy relating to government spying on constituents and others as revealed by Edward Snowden, there’s always the possibility of inciting possible legislation to put limitations on gathering and using online data.

Measure, check questions and visualize more

It’s clear to all that marketing now has a mandate to demonstrate ROI. So, what are some of the thoughts on metrics and conecting marketing initiatives to financial results?

We should talk less about big data, and more about how we act on that data, per MediaMath’s Spiegel. And while we’re at it, let’s stop and consider what we’ve been measuring in our traditional channels and use that as a starting point.  We also need to make sure we’re capturing the right data, and also that we’re asking the right questions, added Oppenheimer’s Butt. As he put it, BI is passé and now it’s really about data visualization because that can allow you to see patterns in the data you did not previously imagine.  He further added that profitability and customer lifetime value are still relevant measures, both of which you can connect to your marketing initiatives and get to ROI.

These are just three of the data-driven marketing strategy shifts that have emerged for leading CMOs to capitalize on the dramatic changes in marketing. In my next post, I'll share the remaining strategies that I captured at this Argyle CMO Forum. In the meantime, let me know what you think of these strategies, or leave a comment with your own stories of adopting data-driven marketing strategies. As always, thanks for following!

tags: Argyle Executive Forums, big data, CMO, data visualization, leadership, Multichannel Marketing, social media, strategy
8月 092013
 

According to the recent 2013 Marketing Performance Management Survey by Forrester, ITSMA and VisionEdge, marketers still have a long way to go. To be relevant to the business, marketers need to measure and communicate the right metrics. Surprisingly, just 40 percent of marketers today think that measuring marketing’s contribution to the business is very important or critical. And even more startling: only a small percentage of CEOs (9 percent) and CFOs (8 percent) use marketing’s metrics in decision-making. The main reasons cited: marketers fail to report on business outcomes; and they tend to focus on past performance rather than predictive insights.

Another recent global study by the Economist Intelligence Unit and SAS uncovered a similar disconnect between CMOs and the rest of the C-suite over the value marketing provides to the company. According to the survey, nonmarketing executives – CEOs, CFOs, CIOs, etc. – prioritize driving revenue over acquiring new customers (30 percent to 19 percent). For CMOs, however, marketing priorities are new products/services creation and customer acquisition; driving revenue ranks third.

The C-suite expects marketing to paint a picture of how marketing contributes to the business (share of wallet, market share, category growth and ownership, lifetime value, etc.), especially with rising investments in digital marketing. With marketing optimization, marketers are better equipped to create clearer linkage between marketing investments and activities with business performance—to select the right metrics, set numerical targets, evaluate customer and business constraints, and show how marketing activity contributes directly to business outcomes.

With the advent of big data and the widespread adoption of automated tools, marketers have access to huge volumes of data with which to plan, execute and track digital marketing initiatives. Hidden in that data are the answers to two critical questions that connect digital marketing activities to business outcomes:

  • Given all the current objectives and constraints on marketing activities, how can we maximize not just the success of this campaign, but overall contribution to organizational growth and profitability?
  • If we increase marketing operations budget, what would the payback be? If we can quantify the financial impact of constraints, could we make a business case for adding resources?

The requirement to juggle multiple constraints and considerations is an inescapable part of the marketing equation. This is exactly where marketing optimization comes in – it gives marketers the power to plan and prioritize all customer interactions in a way that maximizes economic outcomes while balancing the capacity to deliver and the likelihood to respond.

A solid marketing optimization solution provides four key ways to improve marketing effectiveness:

  1. Flexibly define objectives and constraints, whether the goal is to maximize a positive attribute (loyalty, positive word-of-mouth) or minimize a negative one (attrition, churn)
  2. Incorporate real-world contact policies, such as cross-business considerations (who gets the lead? what assets can be re-used? ), recency and frequency rules, and blocking policies.
  3. Understand the business implications of changing any of the resources, objectives or constraints.
  4. Define and compare different scenarios predictively to see which ones deliver the most desired customer and business outcomes.

Marketing optimization essentially allows the CMO to link activities in the marketing war room to business value in the board room. For a deeper perspective on how marketing optimization can create positive customer impact, build efficiencies into your digital marketing, and  improve business outcomes, check out this paper: Improve ROI with Marketing Optimization.

Thanks for following and let me know what you think.

tags: analytics, CMO, digital marketing, marketing optimization, ROI
4月 132013
 

New research by the CMO Council and SAS, entitled "Big Data's Biggest Role: Aligning the CMO & CIO," shows more overlaps than differences between marketing and IT. Big data is uniting the CMO and CIO in their common quest for a customer-centric organization.  61 percent of marketers and 60 percent of IT executives agree that Big Data brings both obstacles and opportunities to the table.

Obstacles for marketing include winnowing through big data to arrive at the "right data" and applying analytics for data-driven decision-making. Challenges for the IT department includes the big data realities of customer information, the acceleration of technology change and the explosion of options and platforms. In fact,  52 percent of marketers and 45 percent of IT executives believe functional silos prevent the enterprisewide aggregation of big data--thus hindering customer centricity.

Despite these perceived barriers to IT and marketing partnership, CIOs and CMOs have common goals and face many of the same challenges. Big data can expedite successful and viable partnerships when CIOs and CMOs gravitate around three shared goals:

  1. Drive sustained business growth.
    Both the CIO and the CMO are accountable for driving profitable revenue growth. While the CMO is often accountable in direct terms, measuring success in terms of market share, customer growth, or loyalty, the CIO needs to show how technology investment contributes to business growth. By harnessing big data (customer, operational, financial) to focus on this common objective, CIOs can move the IT agenda toward contributing directly to customer value rather than solely driving indirect contribution through cost reduction.
    .
  2. Deliver an outstanding customer experience.
    Marketing focuses on customer needs, customer value, and customer experience. Even with an internal orientation, IT is also increasingly customer-focused. CIOs are recognizing the importance of the external customer as the primary driver of technology strategy. With big data, IT's internal-customer orientation — a focus on delivering value to the internal IT customer — can be shifted and recalibrated for customer-centricity, with the customer at the locus of IT planning, deployment, and support.
    .
  3. Enable a single customer viewpoint.
    IT has had considerable experience in delivering the enterprise perspective on data, information, and technology architecture. Almost all functional areas—customer service, sales, human resources, and many others — have benefited from IT’s approach to enterprise-wide applications availability. Marketing is now joining the ranks to recognize that customer insights culled from just individual campaigns or channels is ineffectual. The vast amount of data at the individual customer level combined with other data sources can create a truly singular view of the customer--regardless of touchpoints. By developing a data management hub focused on customer data and big data flows, IT can impart enormous value to marketing and the organization at large.

Of all the C-suite executives, the CMO and CIO are most primed to drive customer-centricity throughout the organization. With big data as the unifying force,  the CMO and CIO can and must become comrades in gathering and analyzing data across the enterprise, and adopting technologies that anticipate, automate and accelerate customer engagements.

For more interesting details on this global research with over 400 marketing and IT executives, please download the report.

 

tags: analytics, big data, CIO, CMO
1月 052013
 

The Economist Intelligence Unit recently published a report that highlights some C-suite dynamics that remind me of that childrens' game "monkey in the middle." The report details multiple ways in which surveyed CMOs believe one thing about the role of marketing in the company, and then their other functional peers (CIO, CFO, etc) believe something else about what marketing does / should be doing.

A great summary of that report can be found in a post on the SAS Knowledge Exchange, titled "CMOs are swimming upstream." After reading that summary and the report itself, it struck me how that lack of clarity might be costly for some companies facing big data challenges, which are usually driven mostly by customer data. At the recent NCDM conference, Altimeter's Brian Solis described how marketing is now a fundamental driver of IT spending in the enterprise, which spells trouble for companies that do not fully appreciate the role of marketing as steward of customer data and how they influence the activities that generate that data.

Curiously, the non-marketing executives had different views on what marketing's top priority should be versus how to best track return on marketing investment (ROMI). 60% surveyed said marketing's priority is driving revenue growth, entering new markets and finding new customers, but 50% favored measuring customer satisfaction when it came to tracking ROMI. Other results that leave me wondering about the non-marketing execs surveyed include their views on functions they think the CMO has no role in: formulating pricing strategy (11%), selecting new markets to enter (12%), shaping customer service (10%), and deciding on new IT investments (31%).

The biggest disconnects, however, and the main reason for the title of the report, are those between the CMO and the non-marketing executives. A great summary of that aspect of this report is outlined in this other SAS Knowledge Exchange post, titled "There's a disconnect between CMOs and the rest of the C-suite."

One conclusion of the report is that success [for the CMO] will be determined by the CMO's ability to align the marketing function around delivering a superior customer experience across all channels. Additional details around that conclusion are provided on page 7 with extra details from Steve Cannon, CEO of Mercedes-Benz USA, who believes that every single customer experience is a brand moment of truth. Based on that statement, I was not surprised to find that Steve's background is in marketing and he describes himself of his Twitter profile as a "Former Army guy and history geek with a passion for marketing."

You can read it for yourself in the EIU report, provocatively titled, "Outside Looking In - The CMO Struggles to Get in Sync with the C-suite." Take a look and let me know what you think.

tags: CMO, internal alignment, marketing strategy, relevance
1月 052013
 

The Economist Intelligence Unit recently published a report that highlights some C-suite dynamics that remind me of that childrens' game "monkey in the middle." The report details multiple ways in which surveyed CMOs believe one thing about the role of marketing in the company, and then their other functional peers (CIO, CFO, etc) believe something else about what marketing does / should be doing.

A great summary of that report can be found in a post on the SAS Knowledge Exchange, titled "CMOs are swimming upstream." After reading that summary and the report itself, it struck me how that lack of clarity might be costly for some companies facing big data challenges, which are usually driven mostly by customer data. At the recent NCDM conference, Altimeter's Brian Solis described how marketing is now a fundamental driver of IT spending in the enterprise, which spells trouble for companies that do not fully appreciate the role of marketing as steward of customer data and how marketing influences the activities that generate that data.

Curiously, the non-marketing executives had different views on what marketing's top priority should be versus how to best track return on marketing investment (ROMI). 60% surveyed said marketing's priority is driving revenue growth, entering new markets and finding new customers, but 50% favored measuring customer satisfaction when it came to tracking ROMI. Other results that leave me wondering about the non-marketing execs surveyed include their views on functions they think the CMO has no role in: formulating pricing strategy (11%), selecting new markets to enter (12%), shaping customer service (10%), and deciding on new IT investments (31%).

The biggest disconnects, however, and the main reason for the title of the report, are those between the CMO and the non-marketing executives. A great summary of that aspect of this report is outlined in this other SAS Knowledge Exchange post, titled "There's a disconnect between CMOs and the rest of the C-suite."

One conclusion of the report is that success [for the CMO] will be determined by the CMO's ability to align the marketing function around delivering a superior customer experience across all channels. Additional details around that conclusion are provided on page 7 with extra details from Steve Cannon, CEO of Mercedes-Benz USA, who believes that every single customer experience is a brand moment of truth. Based on that statement, I was not surprised to find that Steve's background is in marketing and he describes himself on his Twitter profile as a "Former Army guy and history geek with a passion for marketing."

You can read it for yourself in the EIU report, provocatively titled, "Outside Looking In - The CMO Struggles to Get in Sync with the C-suite" and draw your own conclusions. Take a look and let me know what you think.

tags: CMO, internal alignment, marketing strategy, relevance