Forrrester Report: Marketing Maturity in the Age of the Customer

A Forrester Consulting
Thought Leadership Paper
Commissioned By Oracle
October 2014
Why You Need To Be A
Modern Marketer:
The Business Impact Of Marketing
Maturity In The Age Of The Customer

Table Of Contents
Executive Summary ...........................................................................................1
How Mature Is Marketing? ................................................................................2
Marketing Maturity Supports Business Success...........................................2
Marketers Upgrade To Modern Practices .......................................................4
But More Work Is Required...............................................................................5
Modern Marketing Delivers Tangible Benefits ...............................................6
Key Recommendations .....................................................................................7
Appendix A: Methodology ................................................................................8
Appendix B: Endnotes.....................................................................................10
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1
Executive Summary
Technology gives customers new decision-making and
purchasing power. Potential buyers can access information
about products, services, pricing, and brand reputation from
anywhere, anytime. This makes customer understanding a
strategic imperative, and only those companies that obsess
over knowing their customers intimately will thrive in this
new digitally powered age.
1
The mounting need to leverage
customer data, along with the insight to better target
audiences, engage them in dialogue, build relationships that
turn into sales, and engage customers throughout their life
cycle, is transforming marketing from an intuitive art to a
predictable science. But are marketing practices keeping up
with this rapid pace of change?
In June 2014, Oracle commissioned Forrester Consulting to
evaluate marketing’s maturity in targeting, engagement,
conversion, analysis, and technology — the areas in which
modern marketers most need to excel to engage their more
capable and sophisticated buyers. To further explore this
trend, Forrester set out to test whether companies with
more mature marketing practices — what we called
“modern marketers” in our benchmark — experience more
business success when compared with peers.
In conducting 492 surveys and six phone interviews with
marketing decision-makers across the US and Europe,
Forrester found that most companies are in the process of
evolving marketing practices, but on average they are only
about halfway to the goal of becoming customer-obsessed.
In fact, only 11% of our survey base scored well enough to
be considered a modern marketer today.
KEY FINDINGS
Forrester’s study yielded four significant findings:
› Marketing maturity has an impact on the business.
Companies that employ marketing best practices and
topped the scale as modern marketers on our maturity
index also grow revenue faster and enjoy greater market
share than their less sophisticated peers: 44% of modern
marketers said their companies exceeded revenue goals
by 10% or more last year, compared with just 23% of
peers.
› Despite increasing focus on digital channels and
marketing automation, many marketing practices
remain immature. While the majority of marketers
indicated that their practices around customer data
analytics, data management, and segmentation and
targeting are mature, most are less than halfway to the
goal when it comes to marketing measurement and
attribution, automation and technology adoption,
communicating using dialogue with buyers, and
converting prospects to longtime loyal customers.
› Traditional brand management skills rank as most
important. While marketers recognize data now drives
the business and have upgraded core practices around
data management and targeting, their hiring practices
have yet to catch up. Data analysis ranks third on the list
of most important hiring and training criteria, lagging
behind traditional marketing, brand management, and
business strategy experience.
› Modern marketing delivers increases in sales and
profitability. Marketers who win and retain customers in
the digital age use technology and new processes to
scale their reach and engagement while delivering
measurable results to the business. When asked to
describe the results of upgrading to modern marketing
practices, over 55% pointed to increased sales and 37%
to higher profitability.
With technology expanding rapidly, marketers
must refine and evolve their marketing
practices to better understand and serve
customers.

2
How Mature Is Marketing?
Marketing is undergoing incredible change. The longtime
guardian of brand, advertising, and the corporate image,
marketing today must prove its value against firmwide
business revenue and growth objectives. Recently,
Forrester Research found that 54% of chief marketing
officers (CMOs) identified meeting revenue targets as their
most important business driver.
2
Yet being accountable to
the business has never been more challenging, as
marketers face a growing array of program options, both
digital and physical, where technology is essential to
engaging increasingly sophisticated buyers.
To explore the rapidly changing marketing landscape,
Oracle commissioned Forrester Consulting in May 2014 to
conduct a study assessing marketing maturity. Oracle
wanted to understand how mature capabilities potentially
affect business results and to identify the characteristics that
distinguish marketing excellence. The study surveyed senior
marketing executives and managers from corporations
across a diverse set of industries to learn how modern
marketing practices are distributed across the marketplace.
Upon completing a survey of 492 marketers from the US,
UK, France, and Germany, we found that 56% of marketers
ranked only in the first two stages of our maturity index (see
Figure 1).
Just 11% of those surveyed scored high enough to be
considered modern marketers.
Marketing Maturity Supports
Business Success
Our study discovered a strong correlation between modern
marketing practices and business success. Companies that
embrace modern marketing processes outperform peers
and competitors on key business performance indicators,
including revenue growth, market share, and workplace
excellence. A closer look at the connection between modern
marketing practices and positive business outcomes shows
modern marketing has an impact on:
› Revenue growth. Overall, 44% of modern marketers,
those scoring in the top category of our index, reported
that their company’s revenues exceeded their plan by
10% or more over the past 12 months, versus only 23%
of their peers (see Figure 2). Companies that achieve this
level of revenue growth also outperform peers with less
revenue growth in their use of intelligent targeting and
their ability to comprehensively understand customers.
3
FIGURE 2
Mature Marketers Improve Revenue Growth
Base: 492 North American and European marketing decision-makers
Source: A commissioned study conducted by Forrester Consulting on
behalf of Oracle, September 2014
“How would you characterize your company’s
revenue growth rate over the past
12 months against your plan?”
Achieved 10%+ higher
growth rate than plan
25%
Achieved 1% to 9% higher
growth rate than plan
41%
Achieved plan or
were close
23%
Were lower than plan
7%
Don’t know
4%
44% of modern
marketers
achieved
revenue growth
10%+ above
plan.
FIGURE 1
Only One Out Of Nine Are Modern Marketers
Marketing maturity
(Respondents graded on seven criteria, each worth
up to four points)
“Novice”
(2 to 11)
15%
“Developing”
(12 to 17)
% of respondents
41%
“Experienced”
(18 to 23)
33%
“Modern
marketers”
(24 to 28)
11%

3
› Increased market share. When we asked respondents
to evaluate their company’s market share and leadership
position in their respective markets, an overwhelming
94% of modern marketers told us that they have attained
a significant market share, and 49% enjoy the marketing
leading position (see Figure 3).
› Workplace excellence. In our survey, 71% of modern
marketers claimed that they had received national
recognition as a “best place to work” at least once in the
past three years. Experienced marketers achieved similar
recognition just 51% of the time, developing marketers
45% of the time, and novice marketers only 38% of the
time (see Figure 4).
“We are using technology to create
efficiencies in manpower, time, and
revenue. This differentiates us from
our competitors who are striving for
the same thing, but technology has
given us that little bit of difference in
understanding who we are, what our
business is, who our customers are,
and how to approach them.”
— Global director at a communications firm ranked in the
modern marketing category
FIGURE 3
Modern Marketing Leads To Market Leadership
“Which statement most closely describes your
company’s market share relative
to your closest competitors?”
Sole market leader
35%
Share market
leadership with on e
to two competitors
47%
Are not in a market
leading position
16%
Don’t know
2%
49% of modern
marketers identify
as sole market
leaders.
FIGURE 4
Modern Marketing Improves Workplace Culture
“Which statement most closely describes the
industry or market recognition you have
received for your employee working
environment within the past three years?”
Have been named to
multiple national “best
place to work” lists
22%
Have received local
recognition as a
“best place to work”
14%
Have been named to
at least one national
“best place to work” list
27%
Have not received
workplace
recognition
34%
Don’t know
3%
71% of modern
marketers have
received national
“best place to
work” recognition.

4
Marketers Upgrade To Modern
Practices
To assess marketing maturity, we asked marketers to
match their current practices against a list of increasingly
sophisticated options (see Figure 5). Looking at the
benchmark results, we found there are several areas where
marketers overall excel at putting technology and processes
to work. Specifically, our study found that marketers:
› Improve targeting and customer understanding
through data analytics and personas. Marketers today
are very mature when it comes to using data to help
understand their customers: 67% said they have formal,
consistent data gathering techniques, including 34% who
are developing personas for each of their major audience
types. An astonishing 87% of respondents agree that their
messaging has become much more targeted because
data analytics now give them the ability to address
specific segments, personas, or client needs.
› Increase investment in data management technology
and skills to turn data into insight. Marketers are
advancing in data management and in their ability to turn
insight into action: 60% said they have successfully
combined — or are in the process of combining — real-
time customer data with predictive models and statistical
techniques to help them drive their business opportunities
more efficiently. Retail and telecom are the most
advanced here, with media and financial services trailing
other verticals. To find lookalike prospects, 83% of those
surveyed somewhat agree or strongly agree that they are
able to use their existing customer data to analyze their
best customers and understand how they buy (see Figure
6).
“You can’t be narrow-minded about
what you are doing. Despite what
your traditional marketing practices
may be, innovating continually leads
to some of the most successful
outcomes.”
— Channel marketing lead for a financial services firm
ranked in the modern marketer category
› Use real-time feedback and behavior tracking to
understand their customers better. Of the five key
areas studied, marketing practices around targeting and
segmentation also rated as very mature. Fifty-five percent
of marketers have advanced beyond basic demographic
and firmographic information and basic readiness criteria
to segment prospects based on personal criteria such as
expressed preferences or interests. Another 31% employ
intelligent targeting based on real-time feedback and
behavior tracking. Retail and telecom respondents are, on
average, particularly advanced in this category, with 46%
FIGURE 5
Modern Marketing Practices Increase In Sophistication As Maturity Grows
Source: A commissioned study conducted by Forrester Consulting on behalf of Oracle, September 2014
“Novice” marketers:
Segment inconsistently and use basic information like industry,
company size, and geography.
“Modern” marketers:
Employ intelligent targeting based on real-time feedback data and
behavioral analysis in addition to preferences and readiness criteria.
Use data to develop personas for every major audience type, and use
these to guide marketing strategy, messaging, and execution.
Distribute thought leadership, build a two-way dialogue about challenges, and
give customers exactly what they need at each stage of the purchase journey.
Use scoring, nurturing, behavioral triggers, and recycling across not only the
sales pipeline but also after sales to increase loyalty.
Have current and real-time accessible customer data. Use predictive models
and statistical techniques to create models and drive business opportunities.
Leverage attribution measurement to understand the impact of all channels.
Have a standard, fully integrated cross-channel marketing automation platform.
Don’t really use formal data to inform understanding of customers.
Focus on outbound communication through direct channels like
email and sales calls.
Use conventional conversion processes, running campaigns and
turning respondents over to sales to qualify and close.
Have incomplete, siloed, and untrustworthy customer data.
Measure channel effectiveness for each channel separately.
Do not use any marketing automation systems.

5
using intelligent targeting, versus other industries such as
manufacturing, which had the lowest rate of intelligent
tracking at 18%.
But More Work Is Required
Despite this progress, we also found a few areas where
marketers are not quite as mature. We found many
marketers still need to:
› Extend conversion efforts beyond acquisition. More
than half of our respondents (52%) focus conversion
activity on customer acquisition and rate their processes
as conventional with limited use of lead scoring and
nurturing. The most advanced marketers (17%) extend
advanced conversion techniques — like lead scoring,
nurturing, behavioral triggers, and lead recycling —
beyond the sales pipeline to include after sales activity
aimed at retaining customers and increasing loyalty. On
the positive side, 77% of all respondents said they now
engage with customers post-purchase to ensure
successful adoption and use, and 79% said they have
instituted programs aimed at converting buyers into
repeat purchasers.
› Avoid depending on traditional outbound
approaches. While marketers strive to communicate with
customers and share information customers care about,
57% still conduct mostly one-way, outbound
communications. Only 11% said they engage in real
dialogue with buyers at each stage of the purchase
journey and personalize communications according to
their needs. Media, financial services, and healthcare lag
behind in the adoption of engagement tactics that give
buyers exactly what they need at each stage of the
purchase journey personalized to their preferences.
“One of the key investments we have made is in our
digital and social media presence. We have a team
that has grown to about four times the size of what
we had two years ago. We feel this helps us to
engage in dialogue with our members.”
— Marketing director for an insurance organization
ranked in the modern marketer category
› Measure cross-channel influence to better attribute
marketing’s impact on the business. When it comes to
measuring campaign effectiveness, 31% of marketers
studied said they measure each channel separately,
independently from other activity or media. Another 25%
claimed to be able to measure the halo effect of channels
and campaigns. Only 13% of marketers leverage
attribution measurement beyond these limited channel
effects to understand the impact of marketing activity
carried out across multiple channels. Overall, marketers
showed the least maturity on this criterion.
› Knit together systems to produce a fully integrated
automated marketing platform. Poor adoption and
integration of marketing automation contribute to the
inability to perform cross-channel attribution. More than
half (57%) of respondents admitted their marketing
infrastructure is separated by channel, not well-integrated,
or lacking entirely. Only 14% have standardized, fully
integrated cross-channel marketing automation platforms,
with 42% of retailers standing out as more advanced than
other verticals using this type of solution. Fortunately,
marketers see technology evolving rapidly, and 78% of
respondents agree that cloud-based deployments are the
ideal way to access all of, and the best, functionality they
need.
FIGURE 6
Marketing Practices Are Evolving
Our messaging has become much more
targeted toward specific segments,
personas, or client needs
87%
Agree or strongly agree
We analyze our best customers to
understand how they buy and
find others like them
83%
We have programs that actively engage
customers to convert them into repeat
purchasers or to grow wallet share
79%
Cloud-based deployments are the ideal
way to ensure we have access to all
of, and the best, functionality
78%
We have programs and processes that
engage with buyers after purchase to
ensure their onboarding, adoption,
and use is efficient and valuable
77%

6
› Place a higher premium on analytic skills. When asked
to rank the most important skills they consider when hiring
or developing marketing staff, one-third of respondents
put brand/marketing management in the top spot, while
only 12% did the same for data analytics (see Figure 7).
While it is important to balance the creative side of
marketing with the analytical, the transformation to
modern approaches will lag behind until marketers bring
these skill sets into alignment.
Modern Marketing Delivers Tangible
Benefits
When marketers transition to more modern practices
around sophisticated targeting, engagement, conversion,
and analytics, they start to see important results in business
activity and marketing progress (see Figure 8). Marketing
organizations that upgrade their marketing strategy,
processes, technology, and skills enjoy:
› Increased sales. When we asked respondents to rank
the benefits they have seen on their journey to become
more modern marketers, 35% listed increased sales as
the primary benefit. Overall, the vast majority of those
surveyed (55%) said higher revenues were a direct
benefit of investing in marketing.
› Streamlined profitability. Modern marketing contributes
not only to revenues, but to the bottom line as well. More
than one-third of respondents (37%) believe they are
better able to focus their marketing efforts on more
profitable activities through the use of more modern
processes, technology, and skills.
› Greater executive support. As a result of their
investment in modernizing their practices, 32% said they
have seen an increase in how executives champion
marketing as a strategic part of the business. As a senior
marketing strategist at a manufacturer told us: “Our
leadership has worked to give marketing a more
prominent role outside the company — in particular in
development. We’ve become much more consumer-
centric and are using that consumer centricity to help
figure out what products to bring to market.”
FIGURE 7
Traditional Marketing Skills Still Top List Of
Training And Hiring Criteria
“Which are the most important skills that you
consider when hiring/developing marketing staff?”
(Rank up to top five)
Brand management/marketing 33%
Rank 1
12% 8% 6% 8%
Strategic planning 13% 12% 12% 9% 5%
Data analysis 12% 14% 8% 6% 6%
Creative strategy 6% 7% 9% 7% 7%
Email marketing 6% 8% 6%5%6%
Lead management/nurturing
4%
6% 9% 9% 6%
Copywriting/publishing 5% 7% 6%
4%
4%
Event planning/production
4%
6%5%5% 4%
Public relations
3%
5%5%6%6%
Graphic design
3%
6%
4% 4%
2%
Social media
1% 2%
4% 11% 8%
Mobile strategy
2% 3%
6%
4%
4%
Search engine optimization
2% 3%
5%5% 4%
Website management
1%
1%
5%5%7%
Rank 4 Rank 5Rank 2 Rank 3
FIGURE 8
Companies Enjoy A Wide Range Of Benefits From
Upgrading Their Marketing
“What have been the most important results of
upgrading your marketing strategy, processes,
technology, and skills during the past two years?”
(Rank up to top three)
Rank 1 Rank 2 Rank 3
Increased sales 35% 12% 8%
Emphasis on more profitable
activities
13% 11% 13%
Senior management champions
marketing strategies
14% 11% 8%
Increased ability to prove marketing
delivers a return on investment
7% 12% 14%
Lowered costs/competitive
advantage
7% 13% 12%
Better able to differentiate
brand/new productivity
9% 9% 10%
Validation of marketing’s mission 6% 12% 7%
Improved image as a
digital company
4%
10% 8%

7
Key Recommendations
Forrester’s in-depth interviews with marketing executives and managers, supported by global survey results with 492
of their peers, show how companies with modern marketing practices outperform on revenue goals, capture market
share, and deliver better business results. To develop the practices and make the right technology investments
required to nurture a firm’s untapped marketing potential, marketing leaders and executives should:
› Use technology and process to simplify the marketing approach. Advancing all five key modern marketing
practices simultaneously can become complicated without tools and analysis that can focus the marketing team’s
priorities. Modern marketers should work toward putting a marketing architecture and platform in place that lets
them focus on the customer and build relationships across the buyer’s lifetime. As one channel marketing lead at
a financial services firm told us; “The use of a platform has made it easier for us to run campaigns, conduct A/B
testing, analyze results, and do a lot of other things that were very manual or just not smooth before. We give a
lot of weight to the analysis that we do and have dropped programs that didn’t work to give us capacity and
budget to spend on other programs.”
› Invest in a comprehensive data strategy. If customer understanding is the key to competitive advantage in the
digital age, then data will become the currency by which marketers acquire this insight. Modern marketers put
their data to work when they combine primary customer data from internal systems and databases with
anonymous third-party sources to upgrade their customer intelligence. A more comprehensive customer data
model — managed through a data management platform that enables marketers to activate this data — helps
marketers predict which leads to pursue, target and reach the most promising market opportunities, conduct
lookalike modeling based on ideal customer profiles, and determine the next best offers to make to potential
buyers.
4
› Sharpen their attribution acumen. Marketing can no longer rely on soft measures like brand awareness or
disconnected stats like trade show badge scans, social likes, or website traffic to demonstrate how marketing
returns value to the business. When only 10% of marketers can strongly agree that marketing’s financial impact is
clear to the business, it’s time to put metrics to work managing marketing’s performance.
5
Modern marketers
upgrade their metrics, reporting, and dashboards to quantify cross-channel campaign effectiveness; track and
attribute marketing activity against sales; and measure marketing’s contribution to overall revenue goals.
› Combine content strategy with automation to scale message delivery. To maximize the chance each
marketing-generated opportunity turns into a successful revenue event, modern marketers must combine
marketing automation with content marketing strategies that engage customers with information and utility they
value. Modern marketers deliver the right message at the right place and time when they develop cross-channel
strategies that engage buyers in ways appropriate to each channel as they also convert suspects to prospects,
prospects to customers, and customers to advocates.
› Own the customer’s digital experience. Digitally empowered customers are in more control of the purchase
process. This provides an opportunity for marketing to assume a leading role in transforming the customer’s
digital experience across the organization from pre-sale to post-sale activities. Modern marketers must look
beyond their own marketing practices to engage peers in sales, support, service, and customer experience so all
parts of the business can better understand a customer’s context and preferences, deliver utility with every
interaction, and guide the customer into the next best interaction.

8
Appendix A: Methodology
In this study, Forrester conducted an online survey of 492 B2B and B2C marketing decision-makers in the US, the UK,
Germany, and France across industries to evaluate the evolution of their marketing practices. Further, Forrester conducted
six phone interviews with these same respondents who scored high on the maturity scale in order to gain deeper insights
into their marketing activities. Respondents were offered a small incentive as a thank you for time spent on the survey. The
study began in June 2014 and was completed in September 2014.
To benchmark marketing maturity, we asked seven questions that progressively assess how well a marketing organization
targets its audiences, engages with buyers, converts buyers across their lifetime, analyzes marketing’s performance against
goals, and uses technology to support all the associated marketing processes. For each question, respondents picked the
statement that most closely matches their current practices, with statements increasing in sophistication. We assigned a
score of one to four points to each response, for a maximum of 28 points total. We then ranked respondents into one of the
four maturity levels based on their scores. We found marketing maturity follows a normal distribution, with 74% of
respondents falling into the two middle categories out of the four we identified in our maturity index.
Our maturity scale included the following nomenclature and defining characteristics.
“NOVICE”
These marketers:
› Segment inconsistently and use just basic information like title, industry, company size, or geography to distinguish
audiences.
› Don’t really use formal data to inform understanding of customers.
› Have primarily outbound communication; they focus mostly on brand advertising and promoting messaging through direct
channels like email and sales calls.
› Use conventional conversion; they run campaigns and turn respondents over to sales to qualify and close.
› Have disorganized customer data: It’s incomplete, siloed, difficult to work with, and few people trust what it says about
customers.
› Measure channel and campaign efficiency and effectiveness based on each specific channel, not considering other
marketing or media activity occurring at the same time.
› Do not use any marketing automation systems.
“DEVELOPING”
These marketers:
› Segment using readiness criteria like BANT (budget, authority, needs, timeline) in addition to basic information.
› Have superficial understanding of customers: Data gathering and analytics around customer types are inconsistent and ad
hoc.
› Distribute to the market information about customer successes and thought leadership on topics that customers care
about, in addition to outbound communications.
› Have conversion processes that are just beginning to adopt practices like the waterfall method of lead scoring and
nurturing to develop demand ahead of sales involvement.

9
› Are working to clean up customer data. They still have disparate systems but are doing manual analysis and augmenting it
with second- and third-party data.
› Measure the halo effects of channels and campaigns.
› Have separate, disparate automation systems running for various channels.
“EXPERIENCED”
These marketers:
› Segment based on expressed preferences or interests in addition to basic information and BANT.
› Have advanced customer understanding: They gather and use data about customers based on roles and responsibilities
and involvement in the purchase process.
› Strive to build a two-way dialogue with buyers about the issues they face and the problems they want to solve.
› Have conversion processes that are maturing beyond scoring and nurturing to include behavioral triggers and lead
recycling that accelerate the most qualified leads through the funnel.
› Are maturing their customer data management. They are investing in more technology and skills to help streamline data
management, enhance it with second- and third-party data, and find hidden or novel insights across all transactional
systems.
› Measure limited channel and campaign effects.
› Have separate marketing automation platforms that are integrated together.
“MODERN”
These marketers:
› Use a combination of expressed preferences/interests, BANT, and basic criteria and also employ intelligent targeting
based on real-time feedback data and behavioral tracking/analysis.
› Have customer understanding that is comprehensive: They use data to develop personas for every major audience type
and use these tools to guide marketing strategy, messaging, and execution.
› In dialogue with buyers, give them exactly what they need at each stage of the purchase journey, personalized to their
preferences. They give the buyers nothing that would waste their time.
› Have conversion processes that are comprehensive and apply scoring, nurturing, behavioral triggers, and recycling across
not only the sales pipeline but after sales to retain customers and increase loyalty.
› Have customer data that is current and accessible in real time. They use predictive models and statistical techniques to
model things like lookalikes and next best offers to drive the best business opportunities more efficiently.
› Leverage attribution measurement to help understand the impact of multiple channels.
› Have a standard, fully integrated cross-channel marketing automation platform.

10
Appendix B: Endnotes
1
Source: “Competitive Strategy In The Age Of The Customer,” Forrester Research, Inc., October 10, 2013.
2
Source: “The Evolved CMO In 2014,” Forrester Research, Inc., February 24, 2014.
3
In the survey, we asked respondents about their revenue growth against plan, their market share against competitors, and
about any recognition that they have recently received for workplace excellence. We found correlations between success in
all three of the above metrics and modern marketing practices, with the strongest link between modern marketing practices
and those achieving revenue at 10% or more above plan. Those who are achieving this revenue growth are greatly
outperforming their peers in the use of intelligent targeting (47% versus 25% of their peers achieving lesser revenue growth);
creating a comprehensive understanding of their customers (48% versus 29%); creating personalized dialogues (20%
versus 9%); maintaining current and accessible real-time data (41% versus 19%); and using an integrated cross-channel
marketing automation platform (28% versus 11%).
4
Source: “How Analytics Drives Customer Life-Cycle Management,” Forrester Research, Inc., June 19, 2014.
5
Source: “B2B Marketing Measurement Needs An MBA,” Forrester Research, Inc., August 27, 2013.

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