CQ5 Web Content Management from Adobe White Paper The 21st-century CMO: How digital marketing is driving organization transformation Taking full ownership of customer experience management The explosive growth of digital marketing is driving a significant organizational transformation in which chief marketing officers (CMOs) can redefine and elevate their role as never before. Today’s CMOs now have a broad set of tools to impact and optimize customer experiences and ultimately drive revenue for their company. AndTable of contents thanks to recent advances in closed-loop marketing, CMOs can measure and demonstrate the effectiveness of 1: Demonstrating their digital marketing efforts in terms of customer acquisition, customer retention, and revenue growth. CMOs top-line contribution This level of measurement is transforming the role of the CMO within organizations, paving the way for 2: Digital marketing: Addressing and “21st-century CMOs” whose tenure is on the rise as they become an indispensable asset to companies. In fact, re-addressing according to a 2010 Spencer Stuart survey, the average CMO tenure has risen nearly 50% in the past two years, customers from 23.2 months to over 34 months. 3: Executing organizational Today’s 21st-century CMOs are pursuing digital marketing across a large number of channels simultaneously. transformation As they do, they leverage the capabilities inherent in next-generation web content management (WCM) 4: WCM: The hub for platforms to strike a balance between two conflicting goals: to spread branding and messaging as widely as multichannel pipe- line growth possible, and to maintain control over their content as they deliver branding and experiences appropriate to6: Summary: Customer each unique channel. experience manage- ment is a must This paper highlights the advances in closed-loop marketing that enable measurement and optimization of digital marketing efforts. It also describes the challenges that CMOs face when pursuing digital marketing strategies and how next-generation WCM solutions help CMOs overcome those challenges. Demonstrating CMOs top-line contribution As recently as 2008, the average CMO tenure was less than two years, due in large part to the inability of CMOs to clearly identify and articulate marketing’s role and to prove its value to the organization (from Brandweek, “CMOs Are Staying in Jobs Longer,” June 25, 2010). This shortcoming has helped fuel the popular belief that marketing is not as critical to business operations as sales, engineering, or finance. In fact, the results of a recent Forrester Research survey, “Corporate Marketing: Does It Matter?” reveal that fewer than 50% of , marketers view themselves as responsible for increasing top-line growth or increasing profitability.
Marketers still need greater alignment to business objectives But recent advances in closed-loop marketing are enabling CMOs to significantly raise the level of understanding regarding the origin and quality of sales leads developed by marketing, providing organizations with quantifiable business results that can either indemnify or indict a CMO. The following capabilities provide CMOs with a wealth of data for measuring digital marketing results—everything needed to engage a prospect and move them through the sales funnel: • Multichannel campaign management • Campaign and email analytics, such as opens, bounces, click-throughs • Multivariate testing • Landing page optimization • Email marketing and analyticsMultichannel campaignoptimization With results in hand, CMOs have begun to step into the spotlight. As more and more organizations recognizeContent targeting and the growing impact of CMO performance on their bottom line, CMOs are seeing their performance evaluationsmultivariate testing tools are providing CMOs aligned more tightly to revenue.with a virtual cockpit for controlling messages across channels. CMOs Digital marketing: Addressing and re-addressing customerscan tap into critical data Digital marketing essentially transforms marketing from a transaction-based monologue to an interactiveand customize messages conversation with customers and prospects taking place on any digital media, be it a smartphone, tabletso that every experi-ence is engaging and device, kiosk, computer, or television. If done in an integrated and methodical manner, digital marketing canoptimal. Using multi- help marketers grow their pipelines with more of today’s savvy digital channel customers who seek to bevariate testing, CMOs can engaged, rather than merely sold to, by vendors.then evaluate audience p references and promote Addressing and re-addressing the customer is key to success. For digital marketing efforts to succeed, CMOsor pull campaigns based on response rates. need to focus on the manner in which they address their customers across the differing online channels. Not all channels are the same. For example, customers using tablet devices might be drawn to an interactive, game- styled promotion while computer-centered customers seek in-depth educational materials. The challenge for CMOs is to maintain consistent branding and messaging while delivering channel-appropriate experiences that CQ5 Web Content Management from Adobe White Paper 2
engage each distinct audience. Having the right tools and processes in place to control and improve the user experience in each channel is essential. In essence, a multichannel engagement system—or next-generation WCM—is required to fulfill the digital marketing goals of 21st-century CMOs. CMOs that do not embrace the benefits of interactive and closed-loop marketing will struggle to compete with their peers and can expect short tenures. Jeff Bell, vice president of global marketing at Microsoft’s Interactive Entertainment Business, foresaw this trend years ago. According to Bell, “The shorter tenure is in part a reflection of the change from failing traditional-marketing approaches to less-defined and more dynamicWhat is a approaches. Clearly the skill set of CMOs is changing from ‘TV, TV and more TV’ to interactive media.” * CMOs21st-century CMO?A 21st-century CMO who grasp the techniques and execute a sound digital marketing strategy can look forward to longer tenuresis one who leverages with more influence at the executive roundtable.digital marketing to reach customers across But even the savviest CMOs face tremendous challenges when implementing digital marketing programs. Firstm ultiple channels, filling and foremost, they are charged with numerous responsibilities that detract from digital marketing efforts,a company’s pipeline namely the critical activities listed in the following table. Marketing must usually manage the applications andwith well-qualified leads and demonstrating external vendors that support these activities, which means overseeing a disparate set of systems and vendorsrevenue growth from to get the job done. The list can be quite daunting, and includes everything from marketing automation andmarketing programs. business intelligence software to providers of customer data and event-triggered marketing. Traditional Interactive and Online Customer Satisfaction Marketing communications Social media marketing E-marketing Public relations Website management E-sales Database marketing Search engine marketing E-service Campaign creation and Search engine optimization management Event management Webinars Sales support Executing organizational transformation Managing so many activities and disparate systems inhibits progress along the path of organizational transformation. According to the Aberdeen Group’s 2009 report, “Next Generation Web Content Management,” the problem is not a lack of data, but a lack of data quality and an inability to translate data into automated engagement. For instance, 45% of respondents surveyed by Aberdeen stated that their No. 1 marketing challenge is extracting insight from data. And a full one-third of respondents cited a second major challenge—a lack of resources to derive quantifiable business value from web analytics data. To overcome these challenges, a majority of CMOs are planning to merge their disparate marketing applications and tools into an integrated marketing automation platform. As the following figure shows, nearly 87% of CMOs who do not currently leverage an integrated marketing automation platform are planning to do so. * AdvertisingAge, “CMOs, You Have 23 Months to Live,” June 19, 2006 CQ5 Web Content Management from Adobe White Paper 3
Adoption of integrated marketing technologiesIt is important to note that no singular technology can be its own marketing automation platform. That is whyanalysts and CMOs alike refer to it is an integrated platform. It is an integration of three key elements:• Placing marketing applications into a well-thought-out architecture• Selecting providers that integrate easily• Ensuring that vendors provide the required business outcomes rather than merely installing sets of disparate functionsFor most 21st-century CMOs, next-generation WCM systems serve as the core of their integrated marketingautomation platform.WCM: The hub for multichannel pipeline growthToday, WCM platforms incorporate a host of capabilities that expand their original scope. Next-generationplatforms combine WCM with integration services for digital asset management and social collaboration.Together, these capabilities empower CMOs to deliver media-rich, community-oriented customer experiencesthat increase brand awareness, drive customer engagement, and build customer loyalty and campaign success.Serving as the marketing hub for CMOs, next-generation WCM platforms provide one central location forpermission-based access and publishing of marketing messages and programs across all types of digital channels.In this way, these platforms have evolved into systems that help CMOs grow their pipeline of qualified buyersacross different channels. CQ5 Web Content Management from Adobe White Paper 4
Benefits of using One look under the hood of these next-generation WCM platforms leads to instant appreciation for the extranext-generation WCM content control and interactive capabilities that they afford. CMOs should consider the following key• Optimization of digital components when seeking a next-generation WCM platform. marketing budget spend• Engagement of Multichannel marketing—Those CMOs that succeed with multichannel marketing do so by developing a customers and strategy for each channel that enables them to maintain brand equity while satisfying customer expectations. prospects with channel-specific media The most essential tool for pursuing such a strategy is an online marketing platform that enables CMOs to• Increased customer deliver multichannel customer experiences and campaigns. Look for capabilities to perform permission-based retention through highly publishing across a range of output channels, including email, mobile, social networks, web, and print. This personalized interaction helps ensure that customers are fully engaged, independent of the channel, device, or geography. Standards-based repository—Unlike stovepiping, which can result from using proprietary solutions, advanced, standards-based solutions help stave off obsolescence. Perhaps more importantly, they ensure platform viability across and outside your organization. Make sure that the WCM platform you choose supports standards such as Content Management Interoperability Standards (CMIS), Representational State Transfer (REST), and the OSGi framework. Adherence to these standards future-proofs, and even enhances, your investment by providing access to a rich ecosystem of applications and utilities that are prebuilt to interoperate with the multichannel engagement platform. WCM agility—A short ramp-up time is a major factor in digital marketing. Tools should be intuitive and require little training so that they can be used quickly and widely across your organization. In addition, the WCM should feature easy-to-use workflows to create the parent-child relationships necessary for the multisite management that is typical in online marketing. Digital asset management—On today’s websites, rich media—including images, video, and online presentations—is what most attracts and engages audiences. As you repurpose digital assets to address multiple devices, formats, encoding rates, and metadata, you’ll find yourself dealing with an explosion of assets. An easy-to-use system helps tame this chaos and enables syndication of assets across multiple channels. Social collaboration—Every brand has a fan base, but not every CMO is leveraging it. Next-generation WCM allows you to create a network of relationships between prospects and the loyal customers that can influence potential customers’ purchasing decisions. These online communities also serve other benefits. They help build brand loyalty, which in turn leads to more repeat sales, and they potentially offload customer support functions. Features to look for include a shared calendar, the ability to comment, reviewing functions, rich media, and document sharing. Search engine optimization (SEO)—Most site visitors find you via search engines. Tuning content to keep pace with top search terms is critical, but it can be a chore. Next-generation WCMs are built with hierarchical architectures that support the generation of search engine friendly (SEF) links out of the box to boost page rankings in search results. In addition, look for platforms that provide APIs to databases like Alchemy for keyword enhancement and are involved in efforts like the Interactive Knowledge Stack that aim to make content more visible to search engines. Content targeting—Unlike old media, digital channels offer a range of information that marketers can use to better target their messages. Whether it is as simple as geography or as complex as past buying behavior, a solid marketing platform enables you to tap into critical data and customize messages so that every experience is engaging and optimal. Campaign optimization—Sense and respond is the mandate for today’s CMOs. With support for A/B testing in a platform, marketers can sense audience preferences and promote or pull campaigns based on response rates. Analytics—Because CMOs live (and die) by reports, gaining an instant and historical view into campaign performance is critical. Best-of-breed solutions include integrated analytics that can interface with leading standalone analytic offerings. Localization—Marketing has no geographic boundaries and, like online commerce, is global. As a result, you need to adjust to local audience needs without compromising your brand. An advanced WCM solution allows a single change to be proliferated across sites without delays. CQ5 Web Content Management from Adobe White Paper 5