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Hør, hvad mere end 1.700 marketingdirektører mener

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Registrer dig her og modtag vores IBM CMO Global Study 2011 med posten: ...

Registrer dig her og modtag vores IBM CMO Global Study 2011 med posten:
http://www-05.ibm.com/dk/cmostudy/

Eller kontakt:
Birgitte Barslund, +45-4120 2981, bba@dk.ibm.com

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

Kunder kan i dag handle over hele verden og få flere oplysninger om de virksomheder, de handler med, end nogensinde før. Samtidig kan kunderne dele deres synspunkter med hundredtusinder, hvis ikke millioner, af andre kunder. Forventningerne fra forbrugere, borgere og forretningskunder er skyhøje, og disse grupper har i dag magt til at fremme eller ødelægge et brand på meget kort tid.

Efter at vi har interviewet 1.734 marketingdirektører, fordelt på 19 brancher og fra 64 lande, står det klart, at de føler sig spændt hårdt for, men vi har også hørt dem fortælle om, hvor spændende fremtiden ser ud inden for marketingområdet. Samtalerne og vores grundige analyse af undersøgelsesresultaterne bekræfter nødvendigheden af, at den enkelte virksomhed reagerer på tre nye realiteter, hvis den vil opnå succes:

-- Den stærke kunde bestemmer nu, hvordan forretningsrelationen skal være.
-- Det er helt afgørende for en virksomhed, at den leverer værdi til den enkelte kunde – og den måde, som virksomheden agerer på, er lige så vigtig som dens produkter og serviceydelser.
--Kravet om ansvarlighed over for forretningen er ikke kun et symptom på de svære tider, det er et permanent skifte, som kræver nye tiltag, nye værktøjer og nye kompetencer.

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  • This study includes some of the most exciting results we have uncovered throughout the CxO series. CMOs today are on the threshold of major changes and this study takes a closer look at those forces impacting the marketing function and CMOs’ responsibilities. We found that CMOs are keenly aware of the shifting marketplace they are in. But how well are they prepared to manage the flood of change coming their way?
  • This report is IBM’s first study of CMOs – and the fifteenth in the ongoing series of C-suite studies developed by the IBM Institute for Business Value . The CMO Study follows the same tradition as the studies preceding it, with fact-based insights derived from in-depth conversations with executives around the globe.
  • Between February and June 2011, we met face to face with 1,734 CMOs in 19 industries and 64 countries to better understand their goals and the challenges they confront. This sample size and approach makes our study statistically very strong. It also enables us to dive deeply into many of the segments, whether by industry, geographic region or even country. In the Nordic countries we interviewed 46 CMOs There are a number of other CMO studies in the marketplace, but they are either focused on a particular geography or industry, or rely on online surveys, which cannot capture the depth, nuance and candor that comes from an in-person dialog. This is what sets this study apart from the rest – it is large enough, and comprehensive enough to provide a true reflection of what CMOs around the world are thinking and feeling.
  • Scope: We focused mainly on private sector organizations with revenue of more than US$500 million in mature markets, and $250 million in growth markets. We sought to interview a wide range of organizations, from high profile companies to lower profile, local organizations. In total – our questionnaire included 35 questions, which resulted in 236 factors, and we captured more than 10,000 interview quotes which we analyzed using sentiment analysis tools to determine common themes. We also sought to identify, and understand, any disparities between CMOs in outperforming organizations and those in underperforming organizations. To this end, we asked respondents to assess their organization’s position within the industry in which it operates, on a scale ranging from one to five. Organizations ranked as fours were classified as average performers, while those ranked one to three were classified as underperformers and fives were classified as top performers. (We took four as our midpoint to compensate for any cognitive bias respondents might have in favor of their own organizations.) We cross-validated responses by comparing them with two objective financial measures – compound annual growth in operating margins and profit before taxes between 2006 and 2010 – where the information was publicly available. Our analysis confirmed there was a very high correlation between self-assessed and actual performance, thereby eliminating the potential for distortion from a systemic “halo effect.” All references to outperforming and underperforming organizations in our study are based on how CMOs assessed their own enterprises. In the course of our conversations with CMOs worldwide, an overwhelming consensus emerged. The vast majority of CMOs believe there are three key areas for improvement, three key imperatives: Deliver value to empowered customers Foster lasting connections Capture value, measure results The findings and recommendations in this report have been organized to explore these imperatives – the things CMOs need to consider if they are to lead the marketing function in the digital era.
  • In this next section we introduce some background and context on the marketing profession – swimming, treading water or drowning.
  • Interestingly we found ……. Nordic CMOs are traditional marketeers with a strong customer focus. However, they are less prepared to leverage new digital tools than their Global peers Nordic countries are recognised as being forerunners and early adopters of technology, helping them to become some of the most connected countries in the world * (* Economist Intelligence Unit “ Digital economy rankings 2010”, Sweden tops as the world’s most e-ready country followed by Denmark (2), Finland (4) and Norway (6)) Nordic CMOs believe that Customer Experience is the #1 criteria for marketing success by 2015; followed by ROI on marketing spend Despite this, many Nordic CMOs lack the ability, and admit feeling even less prepared than their Global peers, in leveraging new digital tools to manage the impact of increasing volume of data and social media This underpreparedness is caused by uncertainty of the potential business value, and an inability to measure the ROI of new digital tools In an increasingly volatile, uncertain and complex world, Global as well as Nordic CMOs agree on four major challenges ahead: Data explosion, social media, the dramatic increase of channels and devices, and the shift of consumer demographics The areas they believe need addressing are: Understanding and delivering value to empowered customers, creating lasting relationships and measuring the contribution of marketing more effectively
  • Like CEOs, CMOs clearly recognize the impact of technology on their organizations – though it offers opportunities, it also offers added complexity Greater connectivity both gives rise to huge new opportunities, but has also created strong — and often unpredictable — interdependencies And navigating through the rising volume and variety of customers data is very difficult indeed
  • The digital revolution is transforming the marketplace. Empowered customers can see – and say – more about the organizations that serve them than ever before. But this revolution has also left CMOs struggling to respond. Just as X-rays transformed medicine by letting doctors see through human tissue, so the new information and communication technologies are revolutionizing business by letting customers and citizens peer through corporate walls. As a result, the relationship between people and the institutions that serve them is changing dramatically. Consumers’ expectations are rising. They want better products and services, more choice and more value. And they expect organizations to act in a socially and environmentally responsible manner. Business customers are also buying more carefully, haggling harder over prices, demanding greater customization and looking for opportunities to pass risk back to their suppliers. Meanwhile, globalization has given customers everywhere many more options. Witness the fact that world export flows have soared from $7.9 trillion to $18.9 trillion in current U.S. dollars over the past 10 years. And, with social media, anyone can become a publisher, broadcaster and critic. Facebook now has more than 750 million active users, for example, and the average user posts 90 pieces of content a month. Twitter’s registered users send about 140 million tweets a day. And YouTube’s 490 million users upload more video content in a 60-day period than the three major U.S. television networks created in 60 years. In short, customers can see – and say – more about the organizations they deal with than at any time in history. If an organization stumbles, there’s nowhere left to hide. At the same time, the digital revolution is providing unprecedented opportunities to engage with customers. But any business that wants to realize the potential of new information and communication technologies faces a daunting task. It must, first, intercept and interpret vast quantities of data to find the meaningful parts. The volume and variety of data are increasing with ferocious velocity. We now create as much information every two days as we did from the dawn of civilization to 2003. CMOs, therefore, have to do more than ever before. They have to manage more data, understand and engage with more demanding customers, and ensure their employees consistently exemplify the organization’s values. They have to use tools and technologies their children often understand better than they do. And they have an average tenure of just three to four years in which to make their mark.
  • CMOs are well aware of the challenges that confront them. They recognize, like CEOs, that the world in which they operate is much more volatile, uncertain and complex. Increasingly interconnected economies, enterprises, societies and governments have given rise to huge new opportunities. But greater connectivity has also created strong – and often unpredictable – interdependencies. And like CEOs, CMOs don’t feel completely ready to handle the situation. A full 79 percent of the CMOs we talked with believe the level of complexity will be high or very high over the next five years. But only 48 percent feel prepared to cope with it. These percentages mirror those from the 2010 CEO study, when we asked CEOs the same questions about future complexity.
  • So, what are the main sources of concern? We probed more deeply to find out whether CMOs feel equipped to manage the impact of 13 key market factors. Alarmingly, more than 50 percent of respondents think they are underprepared to manage all but two: regulatory considerations and corporate transparency. The Nordic CMOs even felt more underprepared than their Global peers – in particularly in the areas of Data Explosion and Social Media …… or perhaps they are just more forthcoming with the truth than their Global peers!
  • The other items – 5 through 13 are also important, but either CMOs feel they are better prepared to manage them, or don’t anticipate their impact to be as powerful as the top 4.
  • The pressure is universal. To sum up, CMOs are stretched. Even those who work for the most successful organizations are struggling. In the course of our research, we asked respondents to assess their organization’s position within the industry in which it competes. Our analysis shows CMOs in outperforming organizations are slightly better prepared to manage some of the most critical pain points. Yet less than half of them feel completely ready. Those in underperforming organizations are even more uncertain of their ability to cope.
  • To deal with this degree of change and complexity – CMOs’ responses indicated there were three key domains – three imperatives – where they feel the need to improve: Deliver value to empowered customers The digital revolution has forever changed the balance of power between the individual and the institution. If CMOs are to understand and provide value to empowered customers and citizens, they will have to concentrate on getting to know individuals as well as markets. They will also have to invest in new technologies and advanced analytics to get a better grasp of how individual customers behave. Foster lasting connections To effectively cultivate meaningful relationships with their customers, CMOs will have to connect with them in ways their customers perceive as valuable. This entails engaging with customers throughout the entire customer lifecycle, building online and offline communities of interest and collaborating with the rest of the C-suite to fuse the internal and external faces of the enterprise. Capture value, measure results Lastly, CMOs will have to quantify and analyze the financial results of their marketing initiatives and communicate them to the wider organization to enhance the marketing function’s credibility and effectiveness. They also will have to inject new skills into the marketing function by expanding the digital, analytical and financial capabilities of existing employees and by hiring staff or by partnering with specialists to fill the gaps. And since it’s important to lead by example, CMOs will need to invest in enhancing their own expertise in these areas as well.
  • This next section is focused on delivering value to the empowered customers. The most effective CMOs focus on getting to know individuals, not just markets. They mine new digital information sources, and they use customer analytics to turn data into insights on which their organizations can act.
  • One reason most organizations struggle to get the customer insights they need is that they still focus on understanding markets rather than individuals. At least 80 percent of CMOs rely on traditional sources of information such as market research and competitive benchmarking to make strategic decisions. Similarly, more than 60 percent rely on sales, campaign analysis and the like. Traditional sources of information are important, of course. However, most of them have one big drawback. They can only show customers in aggregate, offering little insight into what individual customers need or desire. Relatively few CMOs, by contrast, are exploiting the full power of the digital grapevine. Although nearly three-quarters use customer analytics to mine data, only 26 percent are tracking blogs, only 42 percent are tracking third-party reviews and only 48 percent are tracking consumer reviews. This is largely because the tools, processes and metrics they use are not designed to capture and evaluate the unstructured data produced by social platforms. Yet blogs, consumer reviews and third-party reviews disclose what discrete customers want. They provide a rich source of information about customer sentiment, with context, that can help companies more accurately predict demand patterns. Real-time conversations between informed individuals are also a valuable source of new ideas. And when an organization monitors these social sources for brand mentions, it can rapidly respond to threats of negative exposure before they spiral out of control. As one energy CMO in India pointed out, “What we think will take 24 hours to affect our brand may only take 2 hours. So our speed of reaction needs to increase tremendously.” In short, new digital data sources can provide crucial insights into how customers and influencers think and behave. But to scale this effectively, organizations need to consider building fundamentally different relationships. They need to enable employees to engage with customers and provide customers and other constituents the ability to help one another. Only a small number of CMOs are currently capitalizing on such opportunities to enhance their understanding of these dynamics. Most CMOs, are still focusing on understanding markets versus understanding individuals to shape their strategy – though Nordic CMOs are more likely to use Customer Analytics they ignore other digital sources such as Online communications and blogs
  • CMOs are also overwhelmingly underprepared to take charge of the growing volume, velocity and variety of data. The majority of respondents recognize this. More than two-thirds believe they will need to invest in new tools and technologies, and develop new strategies for managing big data. Two-thirds likewise believe they will need to change the mix of skills within the marketing function and enhance its analytics capabilities. More surprisingly, though, relatively few CMOs are thinking about the profound policy implications of big data – especially those relating to privacy and security. Only 28 percent consider it necessary to change their privacy policies, for example, despite the numerous ways in which customers’ privacy can now be compromised.
  • Nordic CMOs are even less prepared for the data explosion and recognize need to invest in and integrate technology and insights
  • Managing big data is certainly high on their list of “must-dos.” Not surprisingly, CMOs are most interested in increasing their use of those technologies that address some of their key concerns: customer analytics, CRM, social media and mobile apps. For these top 4 concerns – an astounding number – more than 80% - say they expect to increase their use of these technologies in the next 3 to 5 years, and with the exception of the last one, “email marketing” – all of the technologies listed rated quite high - over 50%. Majority of Nordic CMOs are eager to deploy tools and technologies to better manage Social Media, Mobile Applications and CRM.
  • Despite the urgency to change, why haven’t more CMOs already adopted new tools and technologies? The two biggest barriers are cost and lack of certainty about ROI – both issues that are becoming increasingly important in the marketing domain. Most CMOs have not traditionally been expected to provide hard financial evidence of their ROI. But given the current economic volatility and pressure to be profitable, organizations can no longer afford to write a blank check for their marketing initiatives. CMOs recognize they now need to quantify the value they bring to the business, be it from investing in advertising, new technologies or any other activity. This increasing emphasis on ROI also reflects the scrutiny the marketing function is currently attracting, itself a reflection of the function’s growing prominence. Today’s CMOs are in much the same position as chief financial officers (CFOs) were a decade ago, when their role was evolving from guardian of the purse strings to strategic business adviser. Building the business case, cost and lack of ROI certainty are key barriers for Nordic CMOs
  • For this first imperative, we offer these three recommendations and questions that address how CMOs can bring about the changes needed to deliver value to empowered customers.
  • This next section is focused on fostering relationships through continuous interactions. Proactive CMOs forge customer relationships that continue after the sale. And they fortify these bonds by creating a corporate character that manifests itself in everything their employees do and say.
  • When asked what their priorities are as they try to manage the shift toward digital technologies, 67% of CMOs say it is about enhancing customer loyalty. It’s not enough just to understand customers or citizens, of course. An organization also has to act on what it learns – and do so faster than its competitors. Nowadays, it’s easy for disaffected customers to go elsewhere, as CMOs are intensely aware. Hence, their top priority is to enhance customer loyalty and encourage satisfied customers to advocate their brands. Confronted with the shift toward emerging digital technologies, CMOs see enhancing customer loyalty as the top priority. Similarly for Nordic CMOs, though less focus on Social Media (#5 vs #3)
  • Yet, despite this stated priority, most CMOs are, in fact, still focusing on the transaction, and less so on the data required to build lasting relationships with the customer. When we look at the customer lifecycle, starting first with segmentation, then to awareness, interest, action, use, and bond – we see CMOs are using data primarily to segment and sell, not to generate awareness, stimulate interest and “create customer tribes,” as an industrial products CMO in Finland put it. This is partly because, historically, it usually has been easy to get segmentation and sales data. Market analysis firms have provided the former, and companies have collected the latter themselves. Obtaining data on the rest of the customer lifecycle has, by contrast, been much more difficult. Organizations that only look at segmentation and sales data are missing the opportunity to learn from the other phases of the customer lifecycle. And those phases are becoming increasingly important as customers connect with brands in totally new ways. However, most Global and Nordic CMOs are using data to manage transactions, not relationships. Thus not leveraging its full potential yet
  • Today, with increased corporate transparency, companies are recognizing that brand perception is influenced not just by the products and services the company sells, but also by what the company does, its corporate values, who it partners with, how it conducts business, and how openly it communicates. We refer to the sum of these considerations as “corporate character.” More than half of the CMOs we talked with think their organization’s corporate character is well understood in the marketplace and contributes strongly to the success of their brands. However, further questioning revealed that many respondents are much less confident than their preliminary responses might suggest. Fifty-seven percent of CMOs admit there’s still a lot of work to be done to get employees fully on board. Only 20 percent believe they have already succeeded. Moreover, many CMOs recognize they have a major role to play in helping to ensure the workforce embraces and exemplifies their organization’s corporate character.
  • The importance of corporate character seems less understood in the Nordics compared with the Global average
  • In fact, the majority of CMOs believe the transparency the digital revolution has engendered requires the marketing function to make at least five key changes. These changes reflect the way in which the CMO’s role is evolving. For many decades, the CMO’s job was to market an organization’s products and services. Today, it begins with the marketing of the organization itself. CMOs view the marketing function as a key player in the shaping and execution of corporate character, and they recognize the need to champion changes within the organization to improve it, which means not only playing the traditional role as owner of external engagement with customers (or citizens) but also being responsible for managing brand reputation within the company. This means they need to have stronger collaboration across the C-Suite. Also – CMOs understand that the fuel for this engine needs to be better data capabilities and the ability to share insights. To activate the corporate character in a transparent world, marketing needs to drive broad changes in the organization. Whilst the Nordic CMOs prioritize customer engagement, they see less value in brand reputation
  • For this second imperative, we offer these three recommendations and questions that address how CMOs can bring about the changes needed to foster lasting connnections.
  • The pressure is rising. CMOs have to show a real return on their marketing expenditure. They also have to hire people with technical, digital and financial skills, and become savvier in such areas themselves. This last section is focused on capturing value and measuring results.
  • The CMO’s last challenge is to measure the success of the marketing function’s efforts. At one stage, it was enough to point to advertising recall, brand perception or website traffic. But CMOs are under increasing pressure to provide quantifiable evidence of how their marketing expenditure is helping the organization achieve its goals. If they are to use their budgets as wisely as possible, CMOs also need to know which initiatives deliver the best returns. In other words, they need to know what to stop investing in, as well as what to ramp up. CMOs are well aware they will have to be much more financially accountable in the future. In fact, 63 percent of respondents believe marketing ROI will become the most important measure of success over the next three to five years. Nordic CMOs believe that Customer Experience is the #1 criteria for marketing success by 2015; followed by ROI on marketing spend – hailed as #1 by their Global peers
  • One reason CMOs are concerned is their apparent lack of influence over those areas that effect marketing ROI. If CMOs are to be held responsible for the marketing returns they deliver, they must also have significant influence over all four Ps: promotion, products, place and price. Surprisingly, this is often not the case. CMOs told us they exert a strong influence over promotional activities such as advertising, external communications and social media initiatives. But, in general, they play a smaller role in shaping the other three Ps. Less than half of all respondents have much sway over key parts of the pricing process, for example. Similarly, less than half have much impact on new product development or cross-company pricing. As all CMOs know, price, product and place significantly influence customer preference. At the same time, actions taken by marketing impact the organization. A special promotion, for example, may drive up demand, with implications for the supply chain. The CMO is uniquely positioned to capture and disseminate such customer insights throughout the organization. However, Nordic CMOs only have limited influence on Product, Place and Price. They appear to have a more narrow mandate and come across as more traditional marketeer than their Global peers
  • CMOs can grow the capabilities they need by hiring internally, which many plan to do, but they are also looking at external partnerships to help them improve more rapidly. At present, most CMOs use partnerships primarily to augment their promotional activities, such as advertising and event management. But when we asked respondents where they intend to tap external resources more heavily over the next three to five years, there was a marked shift in emphasis. The increase in the percentage of CMOs planning to use outside agencies for lead management, customer and data analytics, and direct or relationship marketing was especially pronounced. The percentage of CMOs planning to get help with IT, call or service center management, and tracking and measurement also rose by more than half. “We have to get scientific about the customer experience,” a travel and tourism CMO in China explained. To achieve this, a company must be able to track what its customers say and do, extrapolate from the data and manage touch points systematically. This change of focus suggests that CMOs are eager to move beyond traditional marketing. Since that’s uncharted territory for many organizations and the talent they require isn’t readily available, they are looking for new partners to help them.
  • Though the Nordic CMOs seem less willing or able to increase the use of external partnerships in the next 3-5 than their Global peers
  • But it’s also important that CMOs lead the way by boosting their own digital, technological and financial proficiency – and many CMOs seem surprisingly reticent in this respect. When we asked respondents which attributes they thought they would need to be personally successful in the future, technological competence, social media expertise and financial acumen came last on the list. They placed much more emphasis on traditional leadership traits. The Nordic CMOs believe improving leadership capabilities and understanding the customer are key for personal success. However, may underestimate the value of Social Media, Analytics & Technology
  • For this third imperative, we offer these three recommendations and questions that address how CMOs can bring about the changes needed to capture value and measure results.
  • The practice of marketing is going through a period of unparalleled change, putting CMOs everywhere to the test. So how should the CMO respond? We learned from more than 1,700 CMOs how they are addressing new opportunities and challenges and strengthening themselves to succeed.
  • CMOs can carry on as before – and continue to feel stretched. Or they can seize the opportunity to transform their marketing function by responding to these new realities: • The empowered customer is now in control of the business relationship • Delivering customer value is paramount – and an organization’s behavior is as much a part of the value equation as the products and services it provides • The pressure to be accountable to the business is not just a symptom of hard times; it is a permanent shift that requires new approaches, tools and skills.
  • Where should CMOs begin? 1. Create a small action team comprised of eager marketing futurists – individuals within the organization who have the potential to be CMOs themselves someday. Give these people a short timeframe to review the issues and develop recommendations for resolving them. Breaking the challenges into smaller chunks will enable CMOs to address the big picture as well as the details and dependencies. It can also help them identify opportunities for small wins and boost support for more radical initiatives. 2. Schedule time to talk with C-suite peers. Consult the CIO about how to improve marketing tools and technologies. Confer with the CHRO about how to empower employees to better represent the organization’s corporate character. Enlist the CFO as a partner in developing the appropriate marketing metrics. 3. Lastly, look at the organization through the customers’ eyes, as they progress through the full relationship lifecycle. While CMOs may believe they already capture this information, all the data in the world cannot replace the personal experience of walking in the customers’ shoes. What are customers learning about an organization and its offerings from blogs, reviews and other customers? Where do the products and services rank in price comparison lists? How easily can customers interact with an organization – before, during and after the sale? What is the CMO doing to create communities of interest and build longterm bonds? Think, too, about how the employees interact with customers. Do they exhibit the qualities that exemplify the unique corporate character that customers value? Do the sum of the on- and offline touch points provide an accurate impression of the organization’s corporate character? Armed with this personal understanding of the customers’ experience, the insights of C-suite colleagues and the findings from the action teams, CMOs will be able to start building a marketing function with the sinews to succeed in the digital era.

Transcript

  • 1. Insights from the Global Chief Marketing Officer Study Nordics Point of View Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 2. The 2011 Global CMO Study is part of our C-suite Study series encompassing interviews with more than 15,000 C-suite executives ’ 04- ’ 05 ’ 08- ’ 09 ’ 06- ’ 07 ’ 10- ’ 11 CSCO CEO CFO CHRO CMO CIO IBM Institute for Business Value
  • 3. In this largest sample of face-to-face CMO interviews, we spoke with more than 1,700 CMOs, hereof 46 Nordic senior Marketing executives 16% Communications 36% Distribution 24% Financial Services 21% Industrial 3% Public 44% Growth markets 17% North America 35% Europe 4% Japan SECTORS – 19 industries REGIONS – 64 Countries IBM Institute for Business Value 9% Norway 30% Finland 43% Denmark NORDIC 17% Sweden 13% Communications 33% Distribution 20% Financial Services 35% Industrial GLOBAL 46 Nordic CMOs Growth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan);Global sample n=1734, Nordic sample n=46
  • 4. Through these in-depth discussions, we are better able to understand the evolving role and function of the CMO in the C-suite
    • Marketing in the Digital Era
      • Deliver value to empowered customers
      • Foster lasting connections
      • Capture value, measure results
    • The Global sample consists of private sector CMOs (97%) and public sector leaders (3%)
    • Representative sample across 64 nations and 19 industries
    • Private sector organizations with revenue more than US$500 million in mature markets and more than US$250 million in growth markets; public sector organizations with more than 1,000 employees
    Scope
    • Face-to-face one hour interviews with 1,734 CMOs – hereof 46 Nordic CMOs
    • Facilitated using structured questionnaire
    • Wide coverage: from highly profiled organizations (48 of the 100 top Interbrand organizations) to lower profile local organizations
    Approach
    • Statistical analysis of 35 questions and the related 236 discrete factors
    • In-depth analysis based on self-reported performance characteristics for differences between “outperformers” and “underperformers”
    • Comprehensive review and analysis of more than 10,000 interview quotes
    Analysis IBM Institute for Business Value Note: Outperformers and underperformers were identified by answers to questions about their organization’s competitive position. Those who selected “significantly outperform industry peers” were identified as outperformers; those who selected “somewhat or significantly underperform industry peers” were grouped as underperformers.
  • 5.
    • Introduction – Swimming, treading water or drowning?
    • Deliver value to empowered customers
      • Move from market analysis to understanding individuals
      • Take charge of growing volume, velocity and variety of data
    • Foster lasting connections
      • Focus on the relationship, not just the transaction
      • Invest in building your corporate character
    • Capture value, measure results
      • Demonstrate accountability through ROI
      • Recognize shift towards new skills and capabilities
    • The CMO Agenda – Get fit for the future
    Agenda IBM Institute for Business Value “ The perfect solution is to serve each consumer individually. The problem? There are 7 billion of them.” Consumer products CMO, Singapore Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 6. Nordic CMOs are traditional marketeers with strong customer focus, but they are less prepared to leverage new digital tools than their Global peers
    • Nordic countries are recognized as being forerunners and early adopters of technology, helping them to become some of the most connected countries in the world *
    • Nordic CMOs believe that Customer Experience is the #1 criteria for marketing success by 2015; followed by ROI on marketing spend
    • Despite this, many Nordic CMOs lack the ability, and admit feeling even less prepared than their Global peers, in leveraging new digital tools to manage the impact of increasing volume of data and social media
    • This underpreparedness is caused by uncertainty of the potential business value, and an inability to measure the ROI of new digital tools
    • In an increasingly volatile, uncertain and complex world, Global as well as Nordic CMOs agree on four major challenges ahead:
      • Data explosion, social media, the dramatic increase of channels and devices, and the shift of consumer demographics
    • The areas they believe need addressing are:
      • Understanding and delivering value to empowered customers, creating lasting relationships and measuring the contribution of marketing more effectively
    * Economist Intelligence Unit “ Digital economy rankings 2010”, Sweden tops as the world’s most e-ready country followed by Denmark (2), Finland (4) and Norway (6)
  • 7. Like CEOs, CMOs clearly recognize the impact of technology on their organizations – though it offers opportunities, it also offers added complexity Market factors Technology factors Macroeconomic factors People skills Regulatory concerns Globalization 2010 CEO 2011 CMO Socioeconomic factors Environmental issues 1 2 3 4 5 6 2 1 3 4 5 7 6 8 8 7 Source: 2010 CEO Study and 2011 CMO Study Q1: What are the three most important external forces that will impact your organization over the next 3 to 5 years? n=1733 “ Technology will fundamentally change the dynamics of the industry and how to interact with stakeholders” CMO Transport industry Denmark
  • 8.
    • 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
    CMOs: swimming, treading water or drowning?
    • 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
    In this digital era... CMOs have to... And... CMOs have just three to four years to make their mark And... more data, more sources, less clarity IBM Institute for Business Value “ Being able to collect the right information, making sure the right people have access to it, can analyze it, and make recommendations based on insights – this is where marketing needs to lead, invest, engage.” Engineering and machinery senior VP sales and marketing, France
  • 9. CMOs feel unprepared for the amount of complexity they face Expected level of complexity and preparedness to handle Percent of CMOs responding IBM Institute for Business Value Source: Q4 How much complexity will your organization have to master over the next 3 to 5 years compared to today? n=1709; Q6 How prepared do you feel for the expected complexity ahead? n=1712 31% complexity gap “ In this coming age of complexity and uncertainty, there is a serious risk of ‘losing our north,’ of being intoxicated by data overload and suffering from corporate indigestion.” Industrial products Senior Managing Director/marketing, Spain Feel prepared for expected complexity 48% Expect high/very high level of complexity over 5 years 79%
  • 10. The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena – even more so in the Nordics 50% 71% 68% 65% 63% 59% 57% 56% 56% 56% 55% 54% 50% Global vs. Nordic Underpreparedness Percent of CMOs reporting underpreparedness IBM Institute for Business Value 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 47% 88% 88% 79% 75% 60% 60% 71% 75% 70% 67% 44% Nordic Global * * * 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? Global sample n=149 to 1141, Nordic sample n=3 to 32 (n = number of respondents who selected the factor as important) *n < 5 respondents
  • 11. We wanted to understand which underprepared areas are the most critical for CMOs IBM Institute for Business Value 50 60 70 40 20 40 60 0 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 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? n1=1733; 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? n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7) Factors impacting marketing Percent of CMOs selecting as “Top five factors” Underpreparedness Percent of CMOs reporting underpreparedness 5 10 11 9 13 12 2 4 3 1 7 Data explosion 1 Social media 2 Growth of channel and device choices 3 Shifting consumer demographics 4
  • 12. Outperformers are battling almost as much as underperformers to deal with the four most critical pain points Data explosion Growth of channel and device choices Shifting consumer demographics Social media Global Level of underpreparedness to manage market factors Percent of CMOs reporting underpreparedness 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? n outperforming = 45 to 338; n underperforming = 29 to 250 IBM Institute for Business Value “ Marketing metrics needs to be redone due to social media and realtime interactions. What you measure is what you get. Marketing measurement should be linked to strategy for growth and efficiency ” CMO Banking, Finland 65% 77% 56% 73% 57% 72% 66% 70% Outperforming organizations Underperforming organizations
  • 13. To deal with the broad level of underpreparedness, CMOs signaled three key domains of improvement IBM Institute for Business Value Deliver value to empowered customers Foster lasting connections Capture value, measure results “ The most important thing is to understand that marketing is not a separate function but very close to the sales. And the most important challenge is to secure that the customer experience is similar in each phase of the client engagement ” CMO Consulting & Systems Integration, Finland
  • 14. Agenda IBM Institute for Business Value
    • Introduction – Swimming, treading water or drowning?
    • Deliver value to empowered customers
      • Move from market analysis to understanding individuals
      • Take charge of growing volume, velocity and variety of data
    • Foster lasting connections
      • Focus on the relationship, not just the transaction
      • Invest in building your corporate character
    • Capture value, measure results
      • Demonstrate accountability through ROI
      • Recognize shift towards new skills and capabilities
    • The CMO Agenda – Get fit for the future
    “ The biggest challenge isn’t the amount of data that’s available, but interpreting the data and making business decisions based on the insights it provides.” Telecommunications CMO, Poland Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 15. Most CMOs, still focus on markets instead of individuals to shape their strategy – though Nordic CMOs are more likely to use customer analytics IBM Institute for Business Value Global vs. Nordic Sources used to influence strategy decisions Percent of CMOs selecting all sources that apply 50% Market research Corporate strategy Competitive benchmarking Customer analytics Marketing team analysis Customer service feedback Financial metrics Campaign analysis Brand performance analysis Sales/sell-through numbers Test panels/focus groups R&D insights Consumer-generated reviews Third-party reviews & rankings Retail and shopper analysis Online communications Professional journals Blogs Supply-chain performance 82% 81% 80% 69% 68% 65% 61% 54% 52% 41% 74% 48% 40% 42% 68% 68% 37% 25% 26% Key sources to understand individuals 83% 80% 74% 83% 54% 70% 59% 74% 78% 57% 59% 65% 48% 26% 33% 26% 35% 24% Nordic Global * Source: Q15 What sources of information influence your marketing strategy decisions? Global sample n=1733, Nordic sample n=46 *n < 5 respondents
  • 16. CMOs are overwhelmingly underprepared for the data explosion and recognize need to invest in and integrate technology and analytics IBM Institute for Business Value 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? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673 Global Underpreparedness Percent of CMOs selecting as “Top 5 Factors” Data explosion 71% Social media 68% Channel & device choices 65% Shifting demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Emerging markets 56% ROI accountability 56% Customer collaboration 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47% Need for change to deal with data explosion Percent of CMOs indicating high/significant need Invest in technology Understand analytics Collaborate with peers Validate ROI Address privacy Integrate insights Rethink skill mix 73% 69% 65% 64% 52% 49% 28%
  • 17. Nordic CMOs are even less prepared for the data explosion and recognize need to invest in and integrate technology and insights IBM Institute for Business Value Nordic Underpreparedness Percent of CMOs selecting as “Top 5 Factors” Data explosion Social media Channel & device choices Shifting demographics Financial constraints Decreasing brand loyalty Emerging markets ROI accountability Customer collaboration Privacy considerations Global outsourcing Regulatory considerations Corporate transparency Need for change to deal with data explosion Percent of CMOs indicating high/significant need Invest in technology Understand analytics Collaborate with peers Validate ROI Address privacy Integrate insights Rethink skill mix 87% * * 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? n=3 to 32; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? Nordic sample n=44 to 46 * n < 5 respondents
  • 18. Majority of Nordic CMOs are eager to deploy tools and technologies to better manage Social Media, Mobile Applications and CRM 50% Social media Mobile applications Content management Tablet applications Single view of customer Collaboration tools Predictive analytics Search engine optimization Reputation management Campaign management Score cards/dashboards E-mail marketing Customer analytics CRM IBM Institute for Business Value Global vs. Nordic Plans to increase the use of technology Percent of CMOs selecting technologies 82% 81% 81% 80% 73% 72% 70% 68% 66% 63% 62% 61% 56% 46% 89% 74% 83% 87% 74% 78% 69% 57% 48% 58% 65% 52% 48% 46% Nordic Global Source: Q22 Do you plan to decrease or increase the use of the following technologies over the next 3 to 5 years? Global sample n=1616 to 1671, Nordic sample n=45 to 46
  • 19. Building the business case, cost and lack of ROI certainty are key barriers for Nordic CMOs IBM Institute for Business Value Lack of ROI certainty Cost Tool implementation issues Lack of IT integration with organization Lack of marketing and IT alignment Lack of IT skills Lack of skills of (potential) users Lack of technological ownership in marketing Ease of use Reliability Global vs. Nordic Barriers to using technology in marketing Top 5 selected by CMOs 61% 72% 47% 43% 45% 25% 46% 34% 37% 18% Business case IT related Marketing related IT and marketing related Usability 59% 52% 48% 37% 43% 46% 37% 28% 20% 26% Nordic Global Source: Q23 What are the top 5 barriers to using technology? Global sample n=1733, Nordic sample n=46
  • 20.
    • Begin with the big business question.
      • Focus on the opportunity to create value for customers as individuals.
    Recommendations and tough questions – Deliver value to empowered customers How are you gearing your marketing people, programs and processes to understand individuals not just markets?
    • Open the aperture.
      • Reprioritize your investments to mine digital channels, such as blogs, tweets, social networks, peer reviews and consumer-generated content, to access customers’ honest, unmediated views, values and expectations. Use advanced analytics to recognize preferences, trends and patterns across every touch point.
    • Safeguard data.
      • Work with IT to assess potential data and infrastructure exposures, employ tools to secure customer data and update privacy policies to address customers’ concerns.
    IBM Institute for Business Value How do you safeguard your customers' data and privacy in a multi-channel, multi-device world? Which tools and processes are you investing in to better understand and respond to what individual customers are saying and doing?
  • 21. Mahou-San Miguel : Customer engagement is key to success IBM Institute for Business Value The Challenge When Grupo Mahou-San Miguel, S.A. developed a new brand of beer, “Mixta,” to appeal to younger drinking-age consumers, the Spanish brewer needed capture a loyal following in an already crowded market . Source info, if there is any, sits within these two lines, at 8 pt. The Solution Capitalizing on the passion young people have for all things digital, Mahou-San Miguel bypassed traditional media and launched the product via social media exclusively, exploiting the power of viral networking and developing more than 30 “Mixta” commercials for YouTube and internet outlets. The Results The Mixta campaign, with more than 10 million hits, is battling for second place among all YouTube brands in Spain, by number of views. And the engagement of consumers with the Mixta brand is further evidenced by the emergence of user-generated imitations of Mixta ads and a social media “club” of Mixta fans.
  • 22. Agenda IBM Institute for Business Value “ Marketing performance tracking is driven by customer loyalty. End-to-end lifecycle management is key.” Telecommunications CMO, Belgium
    • Introduction – Swimming, treading water or drowning?
    • Deliver value to empowered customers
      • Move from market analysis to understanding individuals
      • Take charge of growing volume, velocity and variety of data
    • Foster lasting connections
      • Focus on the relationship, not just the transaction
      • Invest in building your corporate character
    • Capture value, measure results
      • Demonstrate accountability through ROI
      • Recognize shift towards new skills and capabilities
    • The CMO Agenda – Get fit for the future
    Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 23. Confronted with the shift toward emerging digital technologies, Global and Nordic CMOs see enhancing customer loyalty as the top priority 57% 56% 67% 51% 56% 37% 29% 45% 24% 47% IBM Institute for Business Value 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 Global vs Nordic Priorities for managing the shift toward digital technologies Nordic 70% 43% 54% 50% 72% Global 57% 37% 35% 24% 22% Source: Q12 What are your priorities for managing the shift toward emerging digital technologies? (Select top five.) Global sample n=1733, Nordic sample n=46
  • 24. However, most Global and Nordic CMOs are using data to manage transactions, not relationships. Thus not leveraging its potential yet 46% 45% 54% 41% 40% 61% IBM Institute for Business Value Awareness/education Interest/desire Action/buy Use/enjoy Bond/advocate Segmentation/targeting Global vs. Nordic Extensive use of customer data Percent of CMOs using data captured within customer lifecycle phases Transaction focused Relationship focused Global Nordic 33% 43% 43% 39% 39% 54% Source: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases? Global sample n=1626 to 1653, Nordic sample n=46
  • 25. Customers have clear expectations based on the corporate character, yet employees are not fully on board IBM Institute for Business Value Is your corporate character understood in the marketplace? Source: Q10 Is your corporate character understood in the marketplace? n=1702; Q11 How much work is needed to have employees embrace and live the corporate character? n=1703 Is much more work needed to get employees on board? say understood and (strong) contributor to brand success say no or limited understanding of corporate character 25% 32% 21% 17% 5% Strong contributor to the brand ’ s success Not understood 22% 53% say no or very limited work needed say significant or much work needed No work needed Significant work needed 23% 15% 5% 32% 25% 57% 20% GLOBAL
  • 26. The importance of corporate character is less understood in the Nordics compared with the Global average IBM Institute for Business Value Is your corporate character understood in the marketplace? Source: Q10 Is your corporate character understood in the marketplace? n=42; Q11 How much work is needed to have employees embrace and live the corporate character? Nordic sample n=46 Is much 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 success Not understood 21% 44% say no or very limited work needed say significant or much work needed No work needed Significant work needed 50% 19% NORDIC
  • 27. Driven by transparency, CMOs lead broad change in the organization. Nordic CMOs focus on engaging customers more than brand reputation IBM Institute for Business Value Global vs. Nordic Top 5 initiatives driven by transparency Percent of CMOs selecting initiatives “ Marketing is shifting towards the individual customer with focus on customer experience, customer insight, customer loyalty, etc” VP CSR Retail, Finland Manage brand reputation within and beyond the company 75% Enhance engagement with customers and citizens 74% Expand data collection, analysis and insights capabilities 67% Strengthen collaboration across the enterprise 64% Orchestrate a single view of the brand 61% 50% Global Nordic 59% 72% 63% 53% 50% Define and activate corporate character Source: Q9 To what extent does transparency create a need for you to: Global sample n=1645 to 1675, Nordic sample n=45 to 46
  • 28. Recommendations and tough questions – Foster lasting connections How are you collaborating with your C-level peers to activate your “corporate character” across all touch points and experiences? What steps are you taking to connect customer insights with product and service development, and stimulate your customers to become brand or company advocates? How do your marketing tactics and investments work in sync to create and grow a pervasive and innovative total customer relationship?
    • Jumpstart relationships.
      • Capitalize on new digital channels to stimulate conversations with existing and potential customers, and create new types of relationships to reveal untapped opportunities. Use tangible incentives to attract followers.
    • Connect continuously.
      • Engage with your customers and citizens at every stage in the customer lifecycle, and build online and offline communities to strengthen your brand.
    • Champion your organization’s corporate character.
      • Help the enterprise define and activate the traits that make it unique. Work with the entire C-suite to meld the internal and external faces of the enterprise.
    IBM Institute for Business Value
  • 29. Kraft Foods : Customer engagement delivers “slam dunk” for Oreos IBM Institute for Business Value The Challenge Kraft Foods’ Oreo cookie was first introduced in China in the 1990s, but it was too sweet for local palates and the package too big for small Chinese families. Source info, if there is any, sits within these two lines, at 8 pt. The Solution Kraft reintroducing a reformulated Oreo in 2006 with NBA basketball star Yao Ming as a brand ambassador. Online games encouraged younger consumers to “compete” with the celebrity in Oreo “Twist, Lick and Dunk” contests, while mothers were encouraged to share their “Oreo Moments” in an online diary on China’s popular QZone social network. The Results Sales have increased 80 percent, making the Oreo the best-selling cookie in China; the gaming site has generated more than 1.2 billion clicks, with nearly 5 million page views and 1.5 million unique visitors; the QZone network attracted 38 million uniques and more than 40 million user-generated “Oreo Moments” in the first six months.
  • 30. Agenda IBM Institute for Business Value “ The success of my role is far more about analytics and technology than it is about hanging out with my ad agency, coming up with great creative campaigns. We must increase campaign ROI.” Airlines executive manager/marketing, Australia
    • Introduction – Swimming, treading water or drowning?
    • Deliver value to empowered customers
      • Move from market analysis to understanding individuals
      • Take charge of growing volume, velocity and variety of data
    • Foster lasting connections
      • Focus on the relationship, not just the transaction
      • Invest in building your corporate character
    • Capture value, measure results
      • Demonstrate accountability through ROI
      • Recognize shift towards new skills and capabilities
    • The CMO Agenda – Get fit for the future
    Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 31. Nordic CMOs believe that Customer Experience is the #1 criteria for marketing success by 2015; followed by ROI on marketing spend IBM Institute for Business Value Global vs. Nordic Seven most important measures to gauge marketing success in 2015 Percent of CMOs selecting success measurements Customer experience Conversion rate/new customers Marketing ROI Marketing-influenced sales Revenue per customer Overall sales Social media metrics 63% 58% 48% 45% 42% 42% 38% Global Nordic 74% 30% 70% 28% 37% 33% 33% “ The goal is ONE reality for consumers across physical and digital products - providing a seamless customer experience” CMO Consumer Products, Denmark Source: Q19 What are the 5 most important measurements you (will) use to gauge marketing success by 2015? Global sample n=1733, Nordic sample n=46
  • 32. However, Nordic CMOs are more traditional marketeers with less mandate on Product, Place and Price than their Global peers IBM Institute for Business Value Global vs. Nordic Percent of CMOs citing significant influence Integrated advertising and promotion Aligned internal and external communications Innovative social and other emerging media 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 84% 82% 53% 48% 37% 46% 31% 47% 54% 47% 67% 73% Promotion Products Place Price Global Nordic 83% 89% 83% 50% 33% 26% 39% 38% 18% 28% 33% 22% Source: Q14 How much influence do you and your organization have over the “Four Ps” and their related sub-factors? Global sample n=1580 to 1703, Nordic sample n=44 to 46
  • 33. To gain influence, CMOs need to introduce new skills into marketing's mix; many plan to tap external expertise IBM Institute for Business Value Source: Q16 What do you do within marketing and what resources will you tap into, to manage marketing today and going forward? (in 3 to 5 years) n (Today) = 1440 to 1668 n (in 3-5 years) = 1481 to 1636 Global CMOs’ use of external partnerships 100% STATUS: Percent of CMOs using partners extensively today GROWTH: Percent increase of partnerships in 3-5 years Sales contact/lead management 7% Customer and data analytics 12% 92% Direct/relationship marketing 13% 77% IT skills 23% 61% Call and service center 22% 59% Online community development 22% 50% New media strategy and design 24% 42% Tracking/measurement 13% 54% Event management 28% 50% Traditional advertising and promotion 31% Creative brand strategy 17% 18% 19% Online advertising and promotion 35% 26%
  • 34. Though the Nordic CMOs seem less willing or able to increase the use of external partnerships in the next 3-5 than their Global peers IBM Institute for Business Value Source: Q16 What do you do within marketing and what resources will you tap into, to manage marketing today and going forward? (in 3 to 5 years) Nordic sample: n (Today) = 42 to 46, n (in 3-5 years) = 43 to 45 Nordic CMOs’ use of external partnerships 13% 24% 7% 23% 20% 5% 14% 26% 16% 34% 9% 16% 54% 0% 57% 74% 30% 180% 64% Negative 8% 131% 22% 3% 125% Sales contact/lead management Customer and data analytics Direct/relationship marketing IT skills Call and service center Online community development New media strategy and design Tracking/measurement Event management Traditional advertising and promotion Creative brand strategy Online advertising and promotion 0% STATUS: Percent of CMOs using partners extensively today GROWTH: Percent increase of partnerships in 3-5 years
  • 35. Nordic CMOs will focus more on leadership and customer insights for personal success, but less on technology, social media & finance skills IBM Institute for Business Value Global vs Nordic Capabilities for personal success over next 3-5 years Percent of CMOs selecting capabilities Leadership abilities 65% Cross-CxO collaboration 49% Competitive trends insights 45% Management capabilities 31% Understanding products/services value chain 30% Social media expertise 25% Finance skills 16% Demand creation capabilities 30% Analytics aptitude 45% Creative thinking 60% Voice of the customer insights 63% Nordic 74% 72% 57% 50% 50% 28% 37% 46% 33% 20% 13% 7% Source: Q17 What capabilities do you need to be personally successful over the next 3 to 5 years? Global sample n=1733, Nordic sample n=46 Technology savviness 28%
  • 36. Recommendations and tough questions – Capture value, measure results
    • Capitalize on new tools to measure what matters.
      • Use advanced analytics and compelling metrics to improve decision making and to demonstrate your accountability.
    • Lead by example.
      • Expand your horizons by enhancing your personal financial, technical and digital savviness.
    • Enhance business acumen.
      • Adjust your talent mix to increase technical and financial skills, and grow your digital expertise by finding new partners to supplement your in-house resources.
    IBM Institute for Business Value In what ways are you personally investing to broaden your capabilities? What are you doing to enrich the skills mix in the marketing function and build technical, financial and digital acumen? How are you measuring and analyzing the results of your initiatives and communicating them to advance your marketing function’s credibility and accountability?
  • 37. FootSmart: Analytics help deliver cross-sell success IBM Institute for Business Value The Challenge A direct-to-consumer retailer of foot and lower-body health care products with more than 1.9 million customers, FootSmart knew there was untapped potential in online sales. But to capitalize on this, the company needed algorithms that parse both individuals' previous behavior and overall patterns in the firm's customer data. Source info, if there is any, sits within these two lines, at 8 pt. The Solution FootSmart uses analytics to capture the lifetime behavior of customers on its site and comprehensive browsing, shopping and purchasing information. Using it to more efficiently identify the most profitable cross sells, while weeding out the underperformers. FootSmart now automatically generates carefully targeted offers to online customers for relevant products much more likely to delight them. The Results Satisfied online customers now generate 65 percent of FootSmart’s sales; cross sells as a percentage of total online sales are up 147 percent; sales of cross-sell items have increased 97 percent; its cross-sell conversion rate climbed 31 percent; and average order value when cross-sell products are purchased is up 9 percent.
  • 38.
    • Introduction – Swimming, treading water or drowning?
    • Deliver value to empowered customers
      • Move from market analysis to understanding individuals
      • Take charge of growing volume, velocity and variety of data
    • Foster lasting connections
      • Focus on the relationship, not just the transaction
      • Invest in building your corporate character
    • Capture value, measure results
      • Demonstrate accountability through ROI
      • Recognize shift towards new skills and capabilities
    • The CMO Agenda – Get fit for the future
    Agenda IBM Institute for Business Value “ Marketing is a balanced combination of art and science. A good approach blends human creativity and logical thinking based on the data insights technology offers.” Consumer products marketing director, Vietnam “ We need technology to be able to establish the two way dialogue with the consumers. Also to be able to create relevant offerings for our consumers” VP Sales & Marketing Utilities, Finland Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/
  • 39. Moving from Stretched to Strengthened
    • Focus on creating value for customers as individuals
    • Reprioritize investments to mine digital channels to access customers’ views and use advanced analytics to recognize preferences and trends across every touch point
    • Work with IT to assess potential data and infrastructure exposures, employ tools to secure customer data and update privacy policies to address customers’ concerns
    Deliver value to empowered customers Foster lasting connections Capture value, measure results IBM Institute for Business Value
    • Capitalize on new digital channels to stimulate customer conversations and new relationships; use tangible incentives to attract followers
    • Engage with customers throughout the customer lifecycle; build online/offline communities to strengthen your brand
    • Help the enterprise define and activate traits that make it unique and engage the C-suite to meld the internal and external faces of the enterprise
    • Use advanced analytics and compelling metrics to improve decision making and to demonstrate accountability
    • Adjust your talent mix to increase technical and financial skills, and grow digital expertise by finding new partners to supplement in-house resources
    • Expand your horizons by enhancing your personal financial, technical and digital savviness
  • 40. In addition to strategic actions, there are three initiatives CMOs can start today to become better prepared for the digital era
    • Schedule time with your C-suite peers
      • Be proactive with collaboration
      • CIO: Discuss improvements for marketing technologies and tools
      • CFO: Explore financial implications and accountability
      • CHRO: Consider how to empower employees to better represent your corporate character
    • Create small action teams
      • Establish a short-term task force for each imperative to develop recommendations for improvements
      • Invite eager marketing futurists from your organization to participate
      • Break challenges in chunks to address the big picture, details and dependencies
      • Identify opportunities for small wins and boost support for more radical initiatives
    • Engage like a customer
      • Live your customers’ experience with your brand. What does it feel like to be a segment of “one”?
      • Drop in on stores and sites
      • Visit your call center, sit in with representatives, or remotely access randomly recorded calls
      • Join the customer conversation via social media
    IBM Institute for Business Value 1 2 3 Contact Birgitte Barslund, Phone: +454120 2981, bba@dk.ibm.com Or download full report here http://www-05.ibm.com/dk/cmostudy/