The Challenge of todays CMO
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Presentation as given at the 3rd annual B2B Marketing Forum of SpotOn Vision and NIMA on the main outcomes of the CMO study and some implications at IBM
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The Challenge of todays CMO
- 1. Smarter Marketing in a Smarter World RONALD VELTEN Director Marketing, Communications & Citizenship IBM Benelux
- 2. 30 MINUTES PRESENTATION THE MAJOR CMO CHALLENGES & MARKETING AT IBM 2
- 3. 30 MINUTES DIALOGUE THE MAJOR CMO CHALLENGES & MARKETING AT IBM 3
- 11. From Stretched to Strengthened Getting Fit for the Future
- 12. The interviewed CMOs discovered three key domains of improvement Deliver value to Capture value, empowered measure results customers Foster lasting connections 12
- 14. Benelux CMOs are more focused on understanding markets and campaigns rather than individuals to shape their strategies Market Research 84% Competitive Benchmarking 86% Campaign Analysis 79% Consumer Reviews 44% Blogs 35% 3rd Party Reviews 53% © 2011 IBM Corporation
- 15. Benelux CMOs miss out on a huge opportunity by underutilizing internal and external customer data Segmentation/targeting 81% Awareness/education 55% Interest/desire 44% Action/buy 64% Missed opportunity Use/enjoy 48% Bond/advocate 38% Transaction focused Relationship focused © 2011 IBM Corporation 15
- 16. In Benelux the corporate character is less understood and significant work on internal branding needs to be done Is your corporate character understood in the marketplace? 56% 44% say no or limited say understood and (strong) understanding of contributor to brand success corporate character 0% 29% 27% 31% 13% Not understood Strong contributor to the brand’s success © 2011 IBM Corporation
- 17. In Benelux the corporate character is less understood and significant work on internal branding needs to be done Is your corporate character understood in the marketplace? 56% 44% say no or limited say understood and (strong) understanding of contributor to brand success corporate character 0% 29% 27% 31% 13% Not understood Strong contributor to the brand’s success Is much more work needed to get employees on board? 75% 25% say significant or much say no or very work needed limited work needed 25% 30% 21% 18% 7% Significant work needed No work needed © 2011 IBM Corporation
- 18. By 2015, ROI will be the leading measure of success Marketing ROI 63% Customer experience 58% Conversion rate/new customers 48% Overall sales 45% Marketing-influenced sales 42% Revenue per customer 42% Social media metrics 38% © 2011 IBM Corporation
- 19. But in Benelux we believe Net Promoter Score will be the number one method for determining success by 2015 Marketing ROI 53% Customer experience 61% Conversion rate/new customers 51% Overall sales 40% Marketing-influenced sales 33% Revenue per customer 42% Social media metrics 30% Net Promoter Score 63% © 2011 IBM Corporation
- 20. Bottom line; to truly deliver marketing ROI, CMOs need to have significant influence across all four Ps, not just promotion Promotion 80% Products 56% Place 44% Price 44% © 2011 IBM Corporation
- 21. CMOs must expand their personal influence by shifting to new capabilities that focus on technology, social media and ROI Capabilities for personal success over next 3-5 years Percent of CMOs selecting capabilities Leadership abilities 65% Voice of the customer insights 63% Creative thinking 60% Cross-CxO collaboration 49% Competitive trends insights 45% Analytics aptitude 45% Management capabilities 31% Understanding products/services value chain 30% Demand creation capabilities 30% Technology savviness 28% Social media expertise 25% Finance skills 16% © 2011 IBM Corporation
- 22. 5 of the steps moving IBM Marketing from stretched to strengthened 1. Redefinition of marketings functional value 2. Simplified Segmentation Model 3. Full Marketing Automation 4. Digital Transformation 5. Field Enablement
- 23. Redefinition of marketings functional value Corporate Making Capturing Marketing Character Markets Markets Eminence The intentional management Planning and strategy The art and science Active development of brand and culture for future growth of demand management of a best of breed function Planning the strategy for Implement an end2end Establish a best of breed Focus on building the future growth by focus demand system and Marketing team that is IBM Brand and internal on growth plays result-driven recognized internally and cultural transformation And our roadmap 2015 attitude externally 23
- 28. Field Enablement