The current change in communication investments

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Communication is a business tool - how are companies planning to use communication in the future? What can we learn from looking at the numbers?

Communication is a business tool - how are companies planning to use communication in the future? What can we learn from looking at the numbers?

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  • 1. THE CURRENT CHANGE IN COMMUNICATION INVESTMENTS Helge Tennø @congbo slideshare.net/helgetenno SAS Forum, Oslo, 17th September 2013
  • 2. GAP: Communication is a business tool - how are companies planning to use communication in the future? What can we learn from looking at the numbers?
  • 3. The numbers
  • 4. a.Core - investment numbers Disclaimer: The numbers gathered from the research performed in Norway titled The Role of Communication in 2013 is not representative as it only gathered 40 responses before being taken down.
  • 5. What should the marketing function's top priority be at your organization? (% respondents) To which area has marketing contributed most in the past year? (% respondents) Driving revenue growth Improving your organization's reputation Retaining existing customers 30 22 22 The C-suite view of the CMO Agenda, 2012 COMMENT: There is a gap between what the organization wants from its communication and how it is used - we except this gap to close the next years. Which means communication will be measured less on communication goals and more on business goals.
  • 6. Which marketing channels are most preferred by your organization today (2012) and in 2015? [The graph is showing the only channels with an estimated growth] Direct mail +1 22 22 Online Catalogue Web-TV Search Online display Mobile display +12 +12 +13 +20 +28 Source: Attitudes towards mobile 2012, INMA and VIRKE COMMENT: Almost without exception companies are moving their money to digital - what are they seeing in digital? We except it to be because digital is perceived as cheaper, more accountable, effective, dynamic and with better opportunities for real-time marketing and nurturing personal relationships.
  • 7. Kroger has grown from $51bn to $82bn in 8 years 95% of that growth has come from existing customers COMMENT: Traditionalists claim that there is no money in loyalty, that the only opportunity for growth is buying new customers. The old theories and ideas don't hold true anymore, new tools make a lot of theories and theoretical platforms from the last fifty years redundant.
  • 8. Only 44% of retail marketing is mass communications in the USA - because people are shopping differently - COMMENT: As people are moving their purchasing to new channels the customer journey changes and marketing changes as well.
  • 9. 0 COMMENT: Investments are moving towards channels enabling the nurturing of personal relationships. Today the customers are individuals, not masses. Technology today allows for individually tailored communication to millions of customers at the same time. [How to read the graph: The columns on the right hand side of the dotted line represents the numbers for 2015, the blue and the red columns represent increases (blue) and decreases(red) from 2012 to 2015].
  • 10. Customer Service Email (-15) Face-to-face (-17) Mobile devices (+31) Digital media (+17) Social media (+47) Traditional media (-19) Traditional direct mail (-14) Which marketing channels do you estimate to be most effective today / in three years time? Source: The role of communication in 2013 0 COMMENT: The question is what lies behind the term social media? We know that customer engagement has become as important for companies as customer satisfaction, and we assume that respondents are thinking of the ability to engage customers and create dialogue - not necessarily, Facebook, Twitter or Instagram. [How to read the graph: The columns on the right hand side of the dotted line represents the numbers for 2015, the blue and the red columns represent increases (blue) and decreases(red) from 2012 to 2015].
  • 11. Within the arena of marketing and communication where should the organization invest their money the next three years? Customer relations (CRM) Developing services for mobile devices Brand Social media More 53 53 72 72 Kilde: Kommunikasjonens rolle i 2013
  • 12. The C-suite view of the CMO Agenda, 2012
  • 13. b.CMO - numbers
  • 14. "We need to provide quantifiable business results. And at the end of the day we need to innovate, motivate and really drive change for the organization." - ZipCar CMO Rob Weisberg
  • 15. "managing customer relations across all products, divisions and brands" - Øivind Magnussen, SAS Institute
  • 16. What skills are the most important for CMOs to have? Select the top three. (% respondents) Customer insight Communications expertise 42 41 The C-suite view of the CMO Agenda, 2012 COMMENT: The whole point here being the interest and need for customer insight in a larger business perspective - to direct and inspire business in both its communication but also its business development. Better customer insights, not based on media data but usage and insight into drivers and ambitions for the product itself and the situations where it is used is extremely valuable. Companies are looking for someone to take the role of Chief Customer Insight Officer - and the CMO is invited to take that role - if they want and can.
  • 17. Which skills have gained or lost importance for directors with communication and marketing responsibilities? Communications expertise Customer Insight Social media Innovation More 72 72 85 81 74 72 Source: The role of communication in 2013 COMMENT: The Norwegian numbers are showing us the same thing - including the term innovation, which scores very high.
  • 18. "We don't even talk to the CMO when it comes to these large marketing / it investments" - it-company - COMMENT: The CMO is balancing on a knife's edge. On the one side they can take ownership of the customer voice in the organization and become central to the future development of the company, or they can forfeit the opportunity (to the sales or IT executive) and become nothing more than a production unit inside the company.
  • 19. "you shouldn't even talk to the CMO, there is a lack of vision there and no money" - CEO -
  • 20. "Our finds assume that the communications department play a reactive and defensive role" - Peggy Brønn, 2009 - COMMENT: Its all about finding and using new data for customer insight. With new data we are asking what the customers are doing - when using the product and what drives their ambitions and motivations for doing so. We are looking at brand new raw material for understanding the customer! This introduces a completely new set of data that enables the senior communications role at the company to more confidently talk on behalf of the customers.
  • 21. the consequence
  • 22. business driven by customer insight What they do is more important than who they are Customers as individuals1. customer centricity
  • 23. business driven by customer insight What they do is more important than who they are Customers as individuals infrastructure business models transient advantages new value propositions 1. customer centricity 2. structural change
  • 24. business driven by customer insight What they do is more important than who they are Customers as individuals infrastructure business models transient advantages new value propositions evolve communication Customer insight & innovation nurture personal relationships drive company growth 1. customer centricity 2. structural change 3. the cmo's role
  • 25. THANK YOU Helge Tennø @congbo helge.tenno@dinamo.no