The document discusses the evolving role of the Chief Marketing Officer (CMO) in the context of a smarter planet, emphasizing the integration of technology into marketing strategies. It highlights the emergence of the Chief Marketing Technologist who leverages data analytics for customer engagement and personalized marketing experiences. The document also outlines the significant growth in marketing technology spending and the importance of data-driven decision making in enhancing customer value and business transformation.

1. October 2012
The New Profession on a Smarter Planet:
Chief Marketing Technologist
Virginia Sharma
Vice President, Marketing and Communications
IBM India/South Asia
© 2012 IBM Corporation

2. Path to Marketing Transformation
Smarter Planet is more relevant than ever…and more REAL
Police chiefs fight crime with data
Marketers predict individual behaviors
Farmers track livestock in real time
Doctors deliver personalized prescriptions
Retailers foresee emerging shopping trends
Chief Supply Chain Officers change assortments in seconds
© 2012 IBM Corporation

3. Path to Marketing Transformation
The Power and Potential of the three I’s — continues to evolve
Instrumented Interconnected Intelligent
We are seeing the infusion of These can be made to As these systems grow,
information deeper into the systems communicate with each other intersect and overlap, new
and processes we depend on.
in meaningful ways, creating kinds of interactions, insights
intentional systems of systems. and ways of working emerge.
Organizations keep pushing the boundaries of what can be
instrumented, interconnected and made intelligent—and how.
© 2012 IBM Corporation

4. Path to Marketing Transformation
As companies and industries become smarter,
so are the professions and functions that support them.
Organizations The walls between
around the world companies and
are turning customers are
“too much data” disappearing.
into better
decisions.
3 © 2012 IBM Corporation

5. Path to Marketing Transformation
The role of the CMO is changing—from leading marketing to
driving growth and transformation across the business.
Expected level of complexity and preparedness to handle it
Percent of CMOs responding
79% Four core challenges
Expect high/very high • Social media
level of complexity • Data explosion
over 5 years
• Growth of channel and device choices
• Shifting consumer demographics
49%
31%
Feel prepared for
complexity
expected complexity gap
Source: 2011 IBM Global CMO Study
4 © 2012 IBM Corporation

6. Path to Marketing Transformation
The timeless responsibilities of marketers everywhere…
Knowing the customer. Defining what to market Protecting the brand
and how to market it. promise.
5 © 2012 IBM Corporation

7. Path to Marketing Transformation
…are evolving into three imperatives for a new profession.
Understanding Creating a system of Designing your culture
each customer as engagement that and brand so they
an individual. maximizes value creation are authentically one.
at every touch.
6 © 2012 IBM Corporation

8. Path to Marketing Transformation
In this transformation of the marketing
function, the transformation of technology and
the way it’s used is critical.
The New Profession: The Chief Marketing Technologist
© 2012 IBM Corporation

9. Path to Marketing Transformation
The Shift
By 2017 the chief marketing officer will control more technology
spending than a company's CIO
• Companies spent up to $25 billion worldwide on marketing software last year, up
from about $20 billion the previous year. As a comparison, overall corporate software
expenditures totaled $115 billion
• ~ a third of marketing department expense budgets is devoted to purchases such as
systems to manage customer relationships, predict customer behavior, run online
storefronts
$1.5 trillion 7-8% $148 billion 60%
Amount spent on Growth of marketing IT-related spend Growth of spend on
marketing and budgets in next 12 owned / influenced marketing analytics in
communications in months, 2-3X that of IT by CMOs in 2012 next three years
2011 budgets
© 2012 IBM Corporation

10. Path to Marketing Transformation
Chief Marketing Technologists paint a predictive picture of each
customer by harnessing data on a massive scale.
• Instruments all key touch points to gather
the right data about each customer.
• Connects social media data, transaction
data and other information to paint a more
vivid picture of each customer.
• Runs the right analytics at the right time
on
the right customer to generate new ideas
about whom to serve and how best to
serve that person.
• Generates insights that are predictive,
not just historical.
• Builds capabilities to do this on a massive
scale.
9 © 2012 IBM Corporation

11. Path to Marketing Transformation
L’OCCITANE uses optimized customer segmentation to maximize
value at every touch.
1,700%
increase in conversation to sale
“By segmenting visitors based on behavior and
tailoring email content accordingly, we are able to
deliver highly personalized messages that generate
much higher open rates, conversion rates and
revenue per email. Instead of trying to second-guess
our customers, we can present them with offers that
we know will interest them.”
—L’OCCITANE en Provence
10 © 2012 IBM Corporation

12. Path to Marketing Transformation
Chief Marketing Technologists design the full customer journey,
knowing what clients want before they do and creating value at
every touch.
• Designs tailored experiences that
connect the company, the channels
and like-minded customers.
• Creates and automates and
automates a system of engagement
to deliver these personal
interactions—at a massive scale.
• Uses analytics to guide the
development of tomorrow’s portfolio.
11 © 2012 IBM Corporation

13. Path to Marketing Transformation
wehkamp.nl created a system of engagement that offers online
shoppers more relevant experiences.
271%
higher sales-per-send ratio for
marketing emails
“Everyone knows that targeted marketing is how we
should be interacting with our customers, but so few
online retailers are doing it yet. With this new system,
we can track a shopper’s interest in real time and
deliver personalized discounts and incentives.”
—wehkamp.nl
12 © 2012 IBM Corporation

14. Path to Marketing Transformation
Chief Marketing Technologists defines a promise—then build
the system to live it authentically through the brand and
across the culture.
• Develops an acute understanding of its
reputation by actively listening and
engaging in social media.
• Systematically closes the gaps between
a company’s unique character and its
reality — in all critical interactions.
• Champions tools that connect the
organization, and platforms that enable
employees to delight customers.
• Ensures that systems are in place to
manage the risks of being a social
business.
13 © 2012 IBM Corporation

15. Path to Marketing Transformation
BBVA ensures that its brand and its culture are authentically aligned
by continually monitoring and assessing reputational risk.
100%
increase in the notoriety of the
brand in one year
“Knowing what our customers think about us is
essential to implementing effective customer service
strategies, new products and strategic goals.”
—Banco Bilbao Vizcaya Argentaria
14 © 2012 IBM Corporation

16. Path to Marketing Transformation
What does Success mean to a Chief Marketing Technologist
Improved customer value, More campaigns with
loyalty and retention the same resources
5-15% increase typical 2-5x increase typical
Reduced cycle time
Higher online
for marketing efforts
marketing ROI
15x-25x increase typical
More More 40-80% reduction typical
effective efficient
marketing marketing
Higher campaign ROI Reduced marketing
15-30% increase typical costs
20-40% reduction typical
Increased response Lower customer
rates acquisition costs
10-50% increase typical 25-75% reduction typical
From over 2,500 companies worldwide © 2012 IBM Corporation

17. Path to Marketing Transformation
Are you gearing up for the new Profession?
@VirginiaSharma
virginiasharma.blogpost.com
© 2012 IBM Corporation