Online Customers, Digital Marketing: The CMO-CIO Connection


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Media consumers are rushing online in record numbers, and corporate marketers must go there too. CIOs and CMOs must work together to develop a marketing architecture that can analyze consumer behavior, help make marketing decisions, and automate customer interaction, content management, and publishing processes.

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Online Customers, Digital Marketing: The CMO-CIO Connection

  1. 1. Perspective Dr. Michael Peterson Volkmar Koch Dr. Florian Gröne Dr. Kiet VoOnline Customers,Digital MarketingThe CMO–CIOConnectionMedia consumers are rushing online in record numbers, and corporatemarketers must go there too. Done right, online marketing holds the promiseof higher profits and greater accountability, but it requires a sophisticated,strongly aligned blend of marketing savvy and technological expertise. CIOsand CMOs must work together to develop a marketing architecture that cananalyze consumer behavior, help make marketing decisions, and automatecustomer interaction, content management, and publishing processes.While some of this technology is already available, the solution market is influx, and farsighted caution is a must.
  2. 2. Going Digital ments expected to grow in the near future, despite—or perhaps because CIOs to build the technology to auto- mate new marketing processes and of—the current economic crisis. That’s provide real-time decision support. because digital marketing promises intelligent, individualized consumer The goal of every marketing effort is targeting at a far lower cost than to drive profits, and digital marketing traditional media. holds the promise not just of increasedConsumers of media have seen the profitability, but of better understand-digital light, and they are shifting in In a Web 2.0 world, however, taking ing where those profits come from, andever-growing numbers to all kinds of part in that market isn’t simply a why. As The Four Pillars of Profit-digital media channels—the Internet, matter of throwing some banner ads Driven Marketing, a Booz & Companyelectronic messaging, online search, against a few likely Web sites and book (see “Resources”), discusses inthe social Web, blogs, podcasts, seeing what sticks. The many vir- depth, profit-driven marketing consistsmobile communications, and gaming tues of digital marketing—its speed, of four critical elements:platforms. Given the shift, it’s no flexibility, interactivity, and account-surprise that marketers are hot on ability—require a whole new set of • Building an analytical understand-their heels, abandoning traditional marketing strategies and skills to ing of individual consumers’ behav-media at a shocking rate. Online and make it work. And it demands a close ior, needs, and communication/mobile are the only advertising seg- collaboration between CMOs and media usage patterns.Exhibit 1Building a Better Marketing IT Architecture ONLINE ACCESS OFFLINE ACCESS Social/ SEM/ Call Direct TV & Web Syndi- Mobile E-mail Retail Print SEO Center Mail Radio cation ACCESS CHANNEL INTEGRATION LAYER Outbound/Campaign Inbound/Interaction Analytics & Reporting Portfolio Optimization Management Management PROCESS AND WORKFLOW AUTOMATION LAYER Online CMS Offline CMS CONTENT MANAGEMENT LAYER Customer Customer Customer Product Data Mart 1 Data Mart 2 Media DB DB 1 DB 2 DB 3 DB DATA INTEGRATION LAYER SEM = Search Engine Marketing SEO = Search Engine Optimization CMS = Content Management System DB = DatabaseSource: Booz & Company analysis Booz & Company
  3. 3. • Leveraging decision-support tools Creating such an architecture is a Resources that let marketers target custom- complex task, especially since the ers 24/7 via the right channel, at solution market for many of its Leslie H. Moeller and Edward C. the right time, and with the right components is far from mature. CIOs Landry, with Theodore Kinni, The Four message. should tread carefully when evaluat- Pillars of Profit-Driven Marketing: How ing channel and content management to Maximize Creativity, Profitability, and• Building embedded processes that platforms: The technology is going ROI (McGraw-Hill, 2009) can orchestrate marketing messages through rapid innovation cycles as Christopher Vollmer, Always On: Adver- and offers across channels, setting vendors try to integrate online and tising, Marketing, and Media in an Era of relevant targets, and measuring offline offerings, and consolidation of Consumer Control (McGraw-Hill, 2008) results. the vendor arena is only a matter of time. To reduce risk, consider flexible Olaf Acker, Florian Gröne, and• Creating an aligned organization best-of-breed options, including sys- Klaus Hölbling, “Beyond the Mass that develops leadership, structures, tems offered on an on-demand basis. Mailing: Next-Generation Campaign skill sets, and incentive systems Management in an Era of Saturated geared toward the digital world. The process automation layer is a Markets.” safer bet, as many such modules are uploads/BeyondtheMassMailing.pdfGiven those needs, CIOs face a daunt- available as part of integrated market- Roman Friedrich, Florian Gröne,ing task. They must create a single ing or CRM suites. Finally, look for Klaus Hölbling, and Michael Peterson,view of all their customers out of a consistent, flexible, open platform “The Rise of Mobile Marketing:a bewildering variety of constantly for the channel, workflow, and data New Opportunities for Consumerupdated data sources, from legacy integration layers. These elements Companies and Mobile Operators.”systems to online customer interaction form the vital backbone of a robust They must use that information service-oriented architecture, and that Rise_Mobile_Marketing.pdfto make specific offers to individual is key to remaining flexible as ongoingcustomers based on their value to the innovation forces CIOs to reconsidercompany—both in the past and in the their component choices—and it will!future. They must construct a digitalmarketing architecture and workflows Implementing the marketing technol-that not only integrate every off- and ogy needed to drive profits and trackonline channel but also orchestrate results involves a significant amounthow and when to communicate with of work. And that doesn’t includeindividual customers, both outbound managing all the technology vendors,and inbound. And they must build ad agencies, online agencies, mar-a marketing platform that can help keting boutiques, and media part-automate the process of publishing a ners involved in a successful digitalconsistent set of marketing messages marketing effort. The best solution:and content through every market- a “digital marketing office” that caning channel, from classic TV spot to act as an intermediary between theFacebook app to YouTube video to business and the marketing and ITGoogle AdWords to blog entry. Exhibit organizations to manage the demand1 suggests the outlines of a comprehen- for added marketing functionality,sive marketing IT architecture design, while orchestrating critical relation-beginning with the data architecture ships with partners and suppliers.and content management platform andleading up to the individual online and It isn’t enough to follow your custom-offline channel platforms. ers into the Digital Age. You need to go there with them.Booz & Company
  4. 4. The most recent list of Worldwide Bangkok Madrid Dubai South Americaour office addresses and Offices Brisbane Milan Riyadh Buenos Airestelephone numbers can Canberra Moscow Rio de Janeirobe found on our website, Asia Jakarta Munich North America Beijing Kuala Lumpur Oslo Atlanta São Paulo Hong Kong Melbourne Paris Chicago Mumbai Sydney Rome Cleveland Seoul Stockholm Dallas Shanghai Europe Stuttgart Detroit Taipei Amsterdam Vienna Florham Park Tokyo Berlin Warsaw Houston Copenhagen Zurich Los Angeles Australia, Dublin McLean New Zealand & Düsseldorf Middle East Mexico City Southeast Asia Frankfurt Abu Dhabi New York City Adelaide Helsinki Beirut Parsippany Auckland London Cairo San FranciscoBooz & Company ( is a leadingglobal consulting firm, helping the world’s topbusinesses, governments, and organizations.With more than 3,300 people in 58 offices aroundthe world, we work closely with our clients to createand deliver essential advantage.Contact InformationBerlin MunichDr. Florian Gröne Dr. Michael PetersonSenior Associate Partner+49-30-88705-844 michael.peterson@booz.comFrankfurt StuttgartVolkmar Koch Dr. Kiet VoPrincipal Associate+49-69-97167-412 kiet.vo@booz.comPrinted in Germany©2009 Booz & Company Inc.