CMO study prez dma detroit - may 2012

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May 3, 2012-
dmaDetroit hosted Christine Lemyze, Vice President of Marketing Global Technology Services as the luncheon speaker.
Christine’s discussed the findings of 1,700 CMO study conducted by IBM. Please visit www.dmad.org for more direct marketing related events.

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CMO study prez dma detroit - may 2012

  1. 1. © 2011 IBM Corporation
  2. 2. IBM Institute for Business ValueThe 2011 Global CMO Study is part of our C-suite Study seriesencompassing interviews with more than 15,000 C-suite executives 04- 05 06- 07 08- 09 10- 11 CEO CIO CFO CHRO CSCO CMO2 © 2011 IBM Corporation
  3. 3. IBM Institute for Business ValueIn this largest sample of face-to-face CMO interviews, we spoke withmore than 1,700 CMOs, 300 in North America 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 10% North America Rest of the World BU CMOs 8% BU CMOs 14% 33% Country CMOs Global CMOs 46% 11% Country CMOs Regional CMOs 65% Global CMOs 14% Regional CMOsGrowth Markets include Latin America, Central and Eastern Europe, Middle East and Africa and Asia Pacific (excluding Japan); n=1734North America sample size n = 300, Rest of World n = 13333 © 2011 IBM Corporation
  4. 4. Sentiment analysis was performed on the 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 cant 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, USA4 © 2011 IBM Corporation
  5. 5. IBM Institute for Business ValueCMOs: swimming, treading water or drowning? In this Digital Era... § 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 And... more data, more sources, less clarity 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, France5 © 2011 IBM Corporation
  6. 6. IBM Institute for Business ValueCMOs: 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 and § Be more accountable for return on 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 less clarity to make their mark 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, France6 © 2011 IBM Corporation
  7. 7. IBM Institute for Business ValueThe vast majority of CMOs are underprepared to manage the impactof key changes in the marketing arena North America Underpreparedness Percent of CMOs reporting underpreparedness Delta with Global 50% Data explosion 77% Social media 69% 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? n=12 to 167 (n = number of respondents who selected the factor as important) © 2011 IBM Corporation
  8. 8. IBM Institute for Business ValueWe wanted to understand which underprepared areas are the mostcritical for CMOs * Marketing Priority Matrix 1 Data explosion Underpreparedness Percent of CMOs reporting 2 Social media underpreparedness 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 7 Growth market opportunities 6 10 7 8 ROI accountability 8 9 11 9 Customer collaboration and influence 50 12 10 Privacy considerations 13 11 Global outsourcing Factors impacting marketing 12 Regulatory considerations 40 Percent of CMOs selecting as Top five factors 13 Corporate transparency 0 20 40 60 MeanSource: 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?8 n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7) © 2011 IBM Corporation
  9. 9. 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, USA9 © 2011 IBM Corporation
  10. 10. IBM Institute for Business ValueGlobally, to deal with the broad level of underpreparedness, CMOssignaled three key domains of improvement Deliver value to empowered Capture value, customers measure results Foster lasting connections10 © 2011 IBM Corporation
  11. 11. IBM Institute for Business ValueDeliver value to empowered customers Deliver value to empowered Capture value, customers measure results Foster lasting connections11 © 2011 IBM Corporation
  12. 12. IBM Institute for Business ValueNorth America CMOs are simultaneously investing in emerging andfoundational capabilities; well beyond the global averages * Plans to increase the use of technology North America Percent of CMOs selecting technologies Global Emerging Capabilities Foundational Capabilities 9% 3% 11% 2% 87% 87% 87% 80% 82% 82% 81% 75% 75% 77% 73% 72% 73% 68% 67% 70% 66% 63% 61% 56% SinglePredictive Mobile Social Collaboration Tablet Scorecards Content Customer Campaign view ofAnalytics Apps Media Tools Apps Dashboards Mgmt. Analytics Mgmt. customerSource: Q22 Do you plan to decrease or increase the use of the following technologies over the next 3 to 5 years? n=259 to 26412 © 2011 IBM Corporation
  13. 13. IBM Institute for Business Value but face significant obstacles After cost, the top barriers preventing technology adoption North America Lack of marketing and IT Lack of IT integration with alignment rest of company 10% BU CMOs 1.6x 2.1x 14% 57% 53%Country CMOs 41% 11% 35% 34%Regional 25% CMOs 65% Global CMOs Global Regional BU CMOs Global CMOs Regional BU CMOs CMOs CMOs CMOs The biggest issue is prioritization and funding. IT funds most technology projects but if the technology is only marketing specific then it may need to be funded by Marketing. Source: Q23 What are the top 5 barriers to using technology? n=268 Insurance Marketing VP, Canada13 © 2011 IBM Corporation
  14. 14. Analyst Reaction CMOs, Make The Chief Business Technology Officer (née CIO) Your New Best Friend This fall, Forresters CMO practice partnered with the chief business technology officer, formerly known as the chief information officer (CIO), team 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.14 © 2011 IBM Corporation
  15. 15. IBM Institute for Business ValueRecommendations and tough questions Deliver value toempowered customers Begin with the big business question. How are you gearing your marketing § Focus on the opportunity to create value people, programs and processes to for customers as individuals. understand individuals not just markets? Open the aperture. § Reprioritize your investments to mine digital channels, such as blogs, tweets, social networks, peer reviews and Which tools and processes are you consumer-generated content, to access investing in to better understand and customers honest, unmediated views, respond to what individual customers values and expectations. Use advanced are saying and doing? analytics to recognize preferences, trends and patterns across every touch point. Safeguard data. § Work with IT to assess potential data and How do you safeguard your customers infrastructure exposures, employ tools to data and privacy in a multi-channel, secure customer data and update privacy multi-device world? policies to address customers concerns.15 © 2011 IBM Corporation
  16. 16. IBM Institute for Business ValueFoster lasting connections Deliver value to empowered Capture value, customers measure results Foster lasting connections16 © 2011 IBM Corporation
  17. 17. IBM Institute for Business ValueNorth America CMOs want to increase the use of social media as akey engagement channel North America * Global Priorities for managing the shift toward digital technologies Enhance customer loyalty/advocacy 67% Design experiences for tablet/mobile apps 57% Use social media as a key engagement channel 56% Use integrated software suites to manage customers 56% Monitor the brand via social media 51% Measure ROI of digital technologies 47% Analyze online/offline transaction analysis 45% Develop social interaction governance/policies 37% Monetize social media 29% Gain comprehensive visibility of supply chain 24% 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. Travel & Transportation CMO, USA17 Source: Q12 What are your priorities for managing the shift toward emerging digital technologies? (Select top five.) n=300 © 2011 IBM Corporation
  18. 18. IBM Institute for Business Value .yet, many North America CMOs are still using data fortransactions rather than for deepening relationships with theircustomers North America Global Extensive use of customer data Percent of CMOs using data captured within customer lifecycle phases Segmentation/targeting 61% Awareness/education 46% Interest/desire 45% Action/buy 54% Use/enjoy 41% Transaction focused Bond/advocate Relationship focused 40%Source: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases? n=257 to 25918 © 2011 IBM Corporation
  19. 19. IBM Institute for Business ValueOutperforming companies are more focused on capturing, analyzingand using data to understand and foster relationships Extensive use of customer data Percent of CMOs using data captured within customer lifecycle phases 67% Segmentation/targeting 26% 53% higher 56% Awareness/education 56% 36% higher 54% Interest/desire 54% 35% higher 58% Action/buy 18% 49% higher 50% Use/enjoy 47% 34% higher 51% Bond/advocate 65% Outperforming organizations 31% higher Underperforming organizationsSource: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases? n (outperforming) = 478 to 487; n (underperforming) = 366 to 371 © 2011 IBM Corporation
  20. 20. IBM Institute for Business ValueNorth America CMOs have a strong desire to drive the requiredchanges in order to activate their corporate character North America Global Top 5 initiatives driven by transparency Percent of CMOs selecting initiatives 50% Enhance engagement with customers and citizens 80% 75% Manage brand reputation within and beyond the company 78% 74% Expand data collection, analysis and insights capabilities 72% 67% Strengthen collaboration across the enterprise 72% 64% Orchestrate a single view of the brand 64% 61% Pink out performing organizations, Blue - underperformers. Source: Q9 To what extent does transparency create a need for you to: n=293 to 29720 © 2011 IBM Corporation
  21. 21. 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.21 © 2011 IBM Corporation
  22. 22. IBM Institute for Business ValueRecommendations and tough questions Foster lasting connectionsJumpstart relationships. § Capitalize on new digital channels to How do your marketing tactics and stimulate conversations with existing and investments work in sync to create and potential customers, and create new grow a pervasive and innovative total types of relationships to reveal untapped customer relationship? opportunities. Use tangible incentives to attract followers.Connect continuously. What steps are you taking to connect § Engage with your customers and citizens customer insights with product and at every stage in the customer lifecycle, service development, and stimulate and build online and offline communities your customers to become brand or to strengthen your brand. company advocates?22 © 2011 IBM Corporation
  23. 23. IBM Institute for Business ValueCapture value, measure results Deliver value to empowered Capture value, customers measure results Foster lasting connections23 © 2011 IBM Corporation
  24. 24. IBM Institute for Business ValueCMOs believe ROI on marketing spend will be the number onemethod for determining success by 2015 * 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, USASource: Q19 What are the 5 most important measurements you (will) use to gauge marketing success by 2015? n=26824 © 2011 IBM Corporation
  25. 25. IBM Institute for Business Value To truly deliver marketing ROI, CMOs need to have significant influence across all four Ps, not just promotion North America Percent of CMOs citing significant influence Global Integrated advertising and promotion 84%Promotion Aligned internal and external communications 82% Innovative social and other emerging media 73% Deeply researching customer needs 67% Products Product service portfolio 53% Comprehensive research and development cycle 47% Customer experience involving multiple touch points 54% Place Channel selection and management 47% End-to-end supply chain process 31% Full competitive pricing assessment 48% Price Understanding of total ownership costs/benefits 46% Integrated, cross-company pricing process 37%Source: Q14 How much influence do you and your organization have over the Four Ps and their related sub-factors? n=245 to 266 25 © 2011 IBM Corporation
  26. 26. IBM Institute for Business Value CMOs can also expand their personal influence by shifting to new capabilities that focus on technology, social media and ROI. North America Global 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% Demand creation capabilities 30%Understanding products/services value chain 30% Technology Savviness 28% Social media expertise 25% Finance skills 16% 26 Source: Q17 What capabilities do you need to be personally successful over the next 3 to 5 years? n=303 © 2011 IBM Corporation
  27. 27. 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.27 © 2011 IBM Corporation
  28. 28. IBM Institute for Business ValueRecommendations and tough questions Capture value,measure results Capitalize on new tools to measure How are you measuring and what matters. analyzing the results of your § Use advanced analytics and initiatives and communicating them compelling metrics to improve to advance your marketing decision making and to demonstrate function s credibility and your accountability. accountability? Enhance business acumen. § Adjust your talent mix to increase What are you doing to enrich the technical and financial skills, and grow skills mix in the marketing function your digital expertise. Consider finding and build technical, financial and new partners to supplement your in- digital acumen? house resources. Success requires complete integration across all lines of business. The traditional approach is that all BUslook after their own priorities. But the marketplace is going through a quantum shift, and success will requireharnessing our energy, resources and focusing on our goals.28 Insurance © 2011 IBM Corporation CMO, Canada
  29. 29. Closing Thoughts§ Be ready for a career of perpetual learning and change no matter your role in the marketing ecosystem§ The time is now to invest in your own skills and capabilities§ Pick one of the imperatives to explore for your business29 © 2011 IBM Corporation
  30. 30. To learn more about the IBM Global CMO Study Download the IBMIBV app from the app store (Apple and Android) Check out the Youtube videos of CMOs http://bit.ly/YoutubeIBV that participated in the study Take the online self assessment and http://ibm.co/CompareToAssess see how you compare to the global sample Join in on the conversation on LinkedIn http://bit.ly/JoinTalk Watch the study launch webcasts and http://ibm.co/SeeResearch analyst discussion30 © 2011 IBM Corporation
  31. 31. IBM Institute for Business ValueThe top 20 words CMOs used to describe Their most important challenge: Their top 3 initiatives: Their use of technology:Source: Q13 What is the most important challenge you and your marketing organization face over the next 3 to 5 years? n=1564 Q18 What top 3 initiatives will your marketing organization drive to meet expanding responsibilities? Q18a n=1150, Q18b n=1546, Q18c n=1434 Q24 HOW will your marketing organization use technology over the next 3 to 5 years? n=154331 © 2011 IBM Corporation
  32. 32. © 2011 IBM Corporation

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