Indy AMA Luncheon: IBM CMO Study

Insights from the
IBM Chief Marketing Officer

From Study

Stretched to
AMA Indianapolis, IN
September 11, 2012
Strengthened

IBM CMO Study

We spoke with more than 1,700 CMOs, 300 in NA, the
largest global sample of face-to-face CMO interviews.

The study represents organizations in
64 countries and 19 industries

Sectors 3% Regions
Public
16% 17%
Communications North America
21%
Industrial
44%
Growth markets

36%
24% Distribution 35%
Financial Services Europe
4%
Japan

Growth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan); n=1734
North America sample size n = 300, Rest of World n = 1333
2 © 2012 IBM Corporation

IBM CMO Study

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

“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

“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


IBM CMO Study

CMOs: swimming, treading water or drowning?

In this digital era... CMOs have to...

 Globalization has brought the world to  Do more than ever, inside and outside
everyone’s backyard the organization
 Everyone is a broadcaster, publisher  Be more accountable for return on
and a critic: there is nowhere to hide investment (ROI)
 Transparency is the new price of entry  Use tools and technologies that their
children understand better than they
do

And... And...
more data, more sources, CMOs have just three to four years
more devices, less clarity to make their mark

“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

IBM CMO Study

Key areas of under preparedness are also ones CMOs
identify as most critical to enabling the marketing agenda
Marketing Priority Matrix 1 Data explosion
Under preparedness
Percent of CMOs reporting 2 Social media
under preparedness
1 3
Growth of channel and device choices
70
2 4
Shifting consumer demographics
3
5 Financial constraints
4 6 Decreasing brand loyalty
60
5 Growth market opportunities
7
6
10 7 9
8 ROI accountability
8
11
Customer collaboration and influence
9
50 12 10 Privacy considerations
13
11 Global outsourcing
Factors impacting
marketing Regulatory considerations
12
40 Percent of CMOs selecting
as “Top five factors” 13 Corporate transparency

0 20 40 60 Mean

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?

IBM CMO Study

NA CMOs are underprepared for the growth in channel
and device choices and emerging market opportunities
North America CMO Under preparedness
Percent of CMOs reporting under preparedness Delta with
Global
50%
77%
Data explosion
69%
Social media
Growth of channel and device choices 78% +13
Shifting consumer demographics 71%

Financial constraints 59%

Decreasing brand loyalty 67% +10
Emerging market opportunities 75% +21
ROI accountability 67% +11
Customer collaboration and influence 62%
Privacy considerations 57%
Global outsourcing 57%
Regulatory considerations 51%
Corporate transparency 67% +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

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 Schultz
Professor of integrated marketing communications
Northwestern University 12.30.11 marketing power

Your Opportunity
“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


IBM CMO Study

Social media: a key engagement channel for CMOs
North America
Priorities for managing the shift toward digital technologies

Enhance customer loyalty/advocacy

Design experiences for tablet/mobile apps

Use social media as a key engagement channel

Use integrated software suites to manage customers

Monitor the brand via social media

Measure ROI of digital technologies

Analyze online/offline transaction analysis

Develop social interaction governance/policies

Monetize social media

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

8 Source: Q12 What are your priorities for managing the shift toward emerging digital technologies? (Select top five) © 2012 IBM Corporation

IBM CMO Study

Many CMOs are still using data for transactions rather
than for deepening relationships with the customer
North America
Extensive use of customer data
Percent of CMOs using data captured within customer lifecycle phases

Segmentation/targeting

Awareness/education

Interest/desire
Missed
Action/buy opportunity
Transaction focused
Relationship focused Use/enjoy

Bond/advocate

“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
Source: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases?

IBM CMO Study

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.


IBM CMO Study

CMOs need to have significant influence across all
four Ps, not just promotion, to deliver marketing ROI
North America
Percent of CMOs citing significant influence
Integrated advertising and promotion

Promotion Aligned internal and external communications
Innovative social and other emerging media

Deeply researching customer needs
Products Product service portfolio
Comprehensive research and development cycle

Customer experience involving multiple touch points

Place Channel selection and management
End-to-end supply chain process

Full competitive pricing assessment
Price Understanding of total ownership costs/benefits
Integrated, cross-company pricing process

Source: Q14 How much influence do you and your organization have over the “Four Ps” and their related sub-factors?


IBM CMO Study

CMOs can expand their influence by shifting to new
capabilities that focus on technology, social media and ROI
North America
Capabilities for personal success over next 3-5 years
Percent of CMOs selecting capabilities

Leadership abilities
Voice of the customer insights

Creative thinking

Cross-CxO collaboration

Competitive trends insights

Analytics aptitude

Management capabilities

Demand creation capabilities
Understanding products/services value chain
Technology Savviness
Social media expertise
Finance skills

12 Source: Q17 What capabilities do you need to be personally successful over the next 3 to 5 years? © 2012 IBM Corporation

IBM CMO Study

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.


IBM CMO Study

NA CMOs face a challenge in getting external and
internal audiences to grasp their corporate character
North America
Is your corporate character understood in the marketplace?

32% 41%
say no or limited say understood and
understanding of (strong) contributor to
corporate character brand success

Not understood Strong contributor to the brand’s success

Is more work needed to get employees on board?

29%
41% say no or very
say significant or limited work
much work needed needed

Significant work needed No work needed

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?


IBM CMO Study

Supporting Press

“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

Your Opportunity -
Champion your organization’s corporate character

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.


IBM CMO Study

NA CMOs will define success by combining financial
measures with the ability to manage customer experience
North America Global
Seven most important measures to gauge marketing success
Percent of CMOs selecting success measurements

Marketing ROI 63%

Customer experience 58%

Overall sales 45%

Conversion rate/new customers 48%

Marketing-influenced sales 42%

Operating Profit Not in top 7

Revenue per customer 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

Source: Q19 What are the 5 most important measurements you (will) use to gauge marketing success by 2015?


IBM CMO Study

The changing profession


IBM CMO Study


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.


IBM CMO Study

The three imperatives of a new profession

Understanding each customer as
an individual.

Creating a system of engagement that
maximizes value creation at every touch.

Designing your culture and brand so
they are authentically one.


IBM CMO Study

http://www.youtube.com/watch?v=b82Quinl7ac


IBM CMO Study

Understanding each customer
as an individual Transacti
Attribute ons
s Orders Transaction
data
Demographic Demo- Payment
data graphics history

Characte Usage
r-istics history

The great leap is into all
the data that lies
outside our enterprise Needs Purchase
stage

and into the new
insights that data offers. Email /
Desires Chat

Behavioral Prefer- Call
center
data ences
notes

Web
Opinions click-
In-person streams
dialogs Interaction
data

Armed with new analytics, we are able to enter the world of
predicting the next best offer, action or need.

IBM CMO Study

http://www.youtube.com/watch?v=uTOcdjf7X74


IBM CMO Study

Creating a system of engagement that maximizes value
creation at every touch

Companies that think
systemically are able to
provide the right offering
at the right touchpoint and
to motivate greater
engagement with a brand. Attribution
modeling Customer Digital analytics
segmentation
Business Customer predictive
intelligence analytics

Future portfolio of products, services,
knowledge and experiences

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.


IBM CMO Study

http://www.youtube.com/watch?v=bz3wb45FZLM


IBM CMO Study

Designing your culture and brand
so they are authentically one.
An influential blogger
has a bad customer
experience

An internal memo
is leaked to the
media
Every day, millions of actions
driven by our culture influence
what others think of our brand.

Through engagement and social
listening, the new profession of
marketing closes the gaps
between the brand promise and
how it’s experienced in reality. Advocacy groups reveal
an unethical practice in
the supply chain


IBM CMO Study

Visit ibm.com/smartermarketing for more insights


IBM CMO Study

IBM provides a proven and comprehensive set of
marketing software and services

Marketing Strategy and
Transformation

Customer Analytics

IBM Smarter
Marketing Customer Experience
Solutions and Engagement

Social Marketing and
Collaboration
Marketing
Performance
Optimization


IBM CMO Study

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


IBM CMO Study

Thank You!


Indy AMA Luncheon: IBM CMO Study

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (7)

Similar a Indy AMA Luncheon: IBM CMO Study

Similar a Indy AMA Luncheon: IBM CMO Study (20)

Último

Último (20)

Indy AMA Luncheon: IBM CMO Study