Accenture-CMO-Insights-2014-pdf
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Accenture-CMO-Insights-2014-pdf
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<strong>Accenture</strong> Interactive<br />
<strong>CMO</strong>s: Time for<br />
digital transformation<br />
Or risk being left on the sidelines
About the research<br />
The 2013/14 <strong>CMO</strong> <strong>Insights</strong> survey is the fourth<br />
in a series of studies sponsored by <strong>Accenture</strong> and<br />
aimed at understanding the opinions, challenges<br />
and points of view of senior marketing executives<br />
from around the world.<br />
Results are based on the responses of key marketing decision<br />
makers around the world:<br />
581<br />
11<br />
10<br />
The survey was in the field from November 2013 to January <strong>2014</strong>.<br />
Senior marketers<br />
Countries<br />
Industries<br />
Global respondent distribution:<br />
Countries included:<br />
36%<br />
North America<br />
33% Europe, Africa<br />
and Latin America (EALA)<br />
Australia<br />
Brazil Canada France China Germany<br />
31% Asia Pacific<br />
Countries (APAC)<br />
Italy<br />
Japan<br />
Singapore<br />
United<br />
Kingdom<br />
United<br />
States<br />
Industries surveyed:<br />
Automotive Banking<br />
Consumer goods Electronics Insurance<br />
Life sciences Media<br />
Retail Telecoms<br />
Travel and tourism<br />
Respondent demographics:<br />
9%<br />
91%<br />
At least $500 million in annual revenue<br />
At least $1 billion in annual revenue<br />
Significant sales growth (>5%)<br />
31%<br />
55%<br />
14%<br />
Little or flat sales growth (0-5%)<br />
Negative sales growth (
<strong>Insights</strong> from leading marketers<br />
around the world<br />
Executive Summary<br />
Digital is changing the world and<br />
chief marketing officers (<strong>CMO</strong>s)<br />
know it. They are embracing<br />
digital channels with fervor, but<br />
it’s time to do more. The prize is<br />
not mastery of the channels but<br />
command of the opportunities<br />
to delight customers and drive<br />
superior business outcomes.<br />
Then the reward for customers<br />
and marketers alike becomes<br />
relevant and seamless experiences<br />
from brand promise through<br />
brand delivery.<br />
This is a digital transformation that<br />
requires an outside-in or customer-focused<br />
orientation. Given <strong>CMO</strong>s’ understanding<br />
of the brand and the customer, they are<br />
the natural leaders, able to envision a<br />
transformation that bridges the entire<br />
customer experience, including sales, service<br />
and product. The ability to wield, rather than<br />
be overwhelmed by, digital technologies<br />
will be critical, as will cutting across current<br />
functional boundaries. By collaborating with<br />
other C-suite executives and drawing on<br />
external partners to boost internal expertise,<br />
<strong>CMO</strong>s can become more visible change<br />
agents for digital transformation.<br />
These are some of the key findings from<br />
the <strong>2014</strong> <strong>Accenture</strong> Interactive <strong>CMO</strong> <strong>Insights</strong><br />
survey of nearly 600 senior marketing<br />
executives from 11 countries and 10 industries. 1<br />
The findings suggest that <strong>CMO</strong>s are selling<br />
themselves short. The question isn’t whether<br />
they can effectively take advantage of digital<br />
channels—they are proving they can—but<br />
whether they can be catalysts working across<br />
the organization to welcome the broader<br />
digital opportunities and protect against<br />
the digital threats.<br />
Winning <strong>CMO</strong>s:<br />
• Lead and transform the marketing<br />
role as a digital perspective transforms<br />
the enterprise.<br />
• Embrace the full omni-channel<br />
customer experience.<br />
• Integrate channels with real-time<br />
analytics and then act on the insights.<br />
• Invest in agile technologies and<br />
cloud-based services.<br />
• Re-orient the marketing operating model<br />
and integrate new talent to harness<br />
digital innovation.<br />
As every business becomes a digital business,<br />
C-suite executives will need to collaborate<br />
to drive successful digital transformation.<br />
No <strong>CMO</strong> wants to be left on the sidelines.<br />
A new generation of digital natives is fast<br />
approaching—with emerging roles such as<br />
chief digital officer, chief customer officer<br />
and chief experience officer included in the<br />
digital lineup. Sidestepping the confines<br />
of traditional marketing to deliver a<br />
more relevant and integrated customer<br />
experience across the business, will help<br />
ensure the future of the <strong>CMO</strong> on the<br />
digital playing field.<br />
1<br />
All tables and research data provided in this report reference findings from this survey unless otherwise stated.
Seeing the full<br />
digital opportunity<br />
The marketing world is changing fast and digital opportunities are leading the<br />
charge. Fully three-quarters of respondents (78%) to <strong>Accenture</strong>’s research believe<br />
that marketing will undergo fundamental change over the next five years. Also not<br />
surprising: of the top three changes cited, analytics, digital and mobile are the key<br />
drivers. High-growth companies 2 in particular say their investments in these three<br />
areas are paying off, especially to improve customer experience.<br />
78 %<br />
<strong>2014</strong> – 2019<br />
Areas of fundamental change for marketing over the next five years (%)<br />
Analytics skills will be a core competence of marketing<br />
42<br />
5/10<br />
7/10<br />
Digital budgets will account for over 75% of the marketing budget<br />
37<br />
Mobile will account for over 50% of the marketing budget<br />
35<br />
Marketing will become more of an on-demand information provision function<br />
34<br />
86 %<br />
Marketing, Sales, and Customer Service will be merged into a single function<br />
34<br />
We will not know what a marketing campaign will look like in advance:<br />
campaigns will unfold in real time, depending on the individual needs<br />
and intents of each customer across every device and channel<br />
32<br />
Earned media will be more important and receive more support than<br />
paid and owned media<br />
27<br />
Marketing and IT will be merged into a single function<br />
26<br />
71 % 57 %<br />
<strong>CMO</strong>s will be the most important relationship for CEOs, surpassing the CFO<br />
and other C-suite executives<br />
21<br />
We will be known as a digital company<br />
21<br />
2<br />
High-growth companies are self-identified and have an increase of 6% or more in annual sales.
<strong>CMO</strong>s predict that:<br />
• Analytical skills will become<br />
a core competence.<br />
• Digital budgets will account for more<br />
than 75% of the marketing budget.<br />
• Mobile will account for more than<br />
50% of the marketing budget.<br />
What is surprising is that <strong>CMO</strong>s do not seem<br />
to be fully engaged. The proof? Only 21% of<br />
<strong>CMO</strong>s believe their company will be known<br />
as a digital business in five years. To be part<br />
of the enterprise digital transformation that<br />
every business needs to undertake for survival,<br />
<strong>CMO</strong>s need to extend their vision of<br />
marketing and its scope.<br />
Meanwhile, emerging-market <strong>CMO</strong>s tell<br />
an entirely different story. Some 69% believe<br />
it is important to transform into a digital<br />
business, compared to 49% of maturemarket<br />
<strong>CMO</strong>s. The gulf further widens<br />
when asked the importance of transforming<br />
third parties (vendors, partners or<br />
independent distributors) to a digital<br />
model (69% emerging vs. 41% mature).<br />
Emerging markets<br />
jump ahead<br />
Only 18% of <strong>CMO</strong>s in established markets<br />
believe their company will become known<br />
as a digital business, but one-third (32%)<br />
of senior marketing leaders in emerging<br />
markets think that way. Marketers in<br />
emerging countries also are twice as<br />
confident in their ability to transform into<br />
a digital business (70% vs. 38% in mature<br />
economies). While they’re willing to try a<br />
variety of methods to achieve their strategic<br />
marketing objectives, emerging-market<br />
<strong>CMO</strong>s are much more likely to initiate or<br />
complete a companywide transformation<br />
to become more digitally focused<br />
(71% vs. 42% for mature markets).
Confidence in 78 digital<br />
%<br />
channels on the<br />
<strong>2014</strong> – 2019<br />
rise<br />
While most marketers have not<br />
yet committed to thinking of their<br />
companies as digital businesses,<br />
they are definitely on board with<br />
digital channels, investing more,<br />
focusing more and achieving<br />
more results.<br />
Making more and better use of digital<br />
channels is one of the key areas to show a<br />
significant jump in marketers’ confidence over<br />
the past year, with a 10% increase. Year-onyear<br />
improvements in channel effectiveness<br />
show that digital channels lead the way, with<br />
online display advertising, search engine<br />
optimization, mobile and social media all<br />
ranking highly.<br />
10 % OT<br />
7/10<br />
5/10<br />
Increase in channel effectiveness since 2012 (%)<br />
Email <strong>2014</strong> 34 24 58 Events<br />
<strong>2014</strong> 35 27 62<br />
2012 31 13 44<br />
2012 35 23 58<br />
Online display <strong>2014</strong> 36 23 59 86 Print<br />
% <strong>2014</strong> 37 22 59<br />
advertising<br />
advertising 84 % 80<br />
2012 30 19 49<br />
2012 37 18 55<br />
Search engine <strong>2014</strong> 37<br />
24 61 Existing customer <strong>2014</strong> 32<br />
36 68<br />
recommendations<br />
2012 33 19 52 (Word of mouth) 2012 39 26 65<br />
Radio advertising <strong>2014</strong> 30 18 48<br />
Direct mail <strong>2014</strong> 31 20 51<br />
2012 28 11 39<br />
2012 33 15 48<br />
TV advertising <strong>2014</strong> 32 27 59 In-person contact <strong>2014</strong> 34 35 69<br />
with the front-line<br />
2012 29 22 51 employees 2012 37<br />
31 68<br />
Mobile<br />
<strong>2014</strong> 33 25 58 Corporate website <strong>2014</strong> 49 35 % 28 63 49<br />
2012 32 18<br />
71 % 50<br />
2012 38 24 62<br />
57 %<br />
Social media<br />
<strong>2014</strong><br />
2012<br />
34 22 56<br />
30 18 48<br />
Sponsorships/<br />
Partnerships<br />
<strong>2014</strong><br />
2012<br />
34 25 59<br />
36 23 59<br />
Media coverage<br />
<strong>2014</strong><br />
2012<br />
35 26 61<br />
32 22 54<br />
Telemarketing <strong>2014</strong> 29 19 48<br />
2012<br />
35 23 58<br />
Branded content<br />
<strong>2014</strong><br />
2012<br />
37 23 60<br />
32 21 53<br />
Video <strong>2014</strong> 31 24 55<br />
Education channels <strong>2014</strong> 30 21 51<br />
Fairly effective<br />
Very effective<br />
SMS/Text messaging <strong>2014</strong> 27 20 47
The death of telemarketing?<br />
Telemarketing slid precipitously as an<br />
effective channel from 2012 to <strong>2014</strong>.<br />
Effectiveness dropped from 58% to 48%;<br />
perhaps as a result, its importance<br />
dropped from 74% to 51%.<br />
The rise of an old standby<br />
While telemarketing fell, low-cost email<br />
rose as an effective channel. As email’s<br />
importance improved from 58% to 66%,<br />
its effectiveness increased commensurately,<br />
from 44% to 58%.<br />
Meanwhile, a generational divide is<br />
opening up with respect to mobile.<br />
Marketing executives who grew up with<br />
digital devices—those under 35—give<br />
significantly more weight to mobile (38%)<br />
than their more seasoned colleagues (18%).<br />
Mobility is a game changer for younger<br />
marketing executives. Seven out of 10<br />
marketers aged 50 and younger believe that<br />
mobile is an important channel for reaching<br />
customers and prospects, compared with<br />
fewer than five out of 10 aged 51 and older.<br />
This is the difference between digital natives—<br />
those who were raised with digital channels—<br />
and those who have had to adapt to digital.<br />
For younger marketers, 78 mobile % is not a<br />
channel but a lifestyle.<br />
<strong>2014</strong> – 2019<br />
Budgets for digital marketing also continue<br />
to rise. Today, 39% of businesses surveyed<br />
spend more than $100 million on digital<br />
marketing. Slightly more (41%) expect that<br />
budget to rise by more than 5% in their next<br />
fiscal year. Only 8% see any kind of cutback<br />
in digital marketing spending next year.<br />
Size of <strong>2014</strong> digital marketing budget (%)<br />
>$1 billion<br />
$501m–1 billion<br />
3<br />
9<br />
5/10<br />
7/10<br />
$101–500m<br />
27<br />
$51–100m<br />
$26–50m<br />
12<br />
13<br />
$25m or less<br />
Don’t know<br />
13<br />
Expected change in 1 year (%)<br />
Increase >10%<br />
14<br />
Increase 6–10%<br />
Increase 1–5%<br />
Stay the same<br />
23<br />
26<br />
27<br />
25<br />
86 %<br />
7/10 marketers under<br />
50 believe that mobile<br />
is an important channel <br />
for reaching customers<br />
and prospects, compared<br />
to 5/10 over 51<br />
Decrease 1–5%<br />
6<br />
Decrease >5%<br />
2<br />
71 % 57 %
High performers harness<br />
digital potential<br />
Digital channels are proving<br />
pivotal to how an entire<br />
organization competes,<br />
innovates and enhances<br />
the customer experience.<br />
High-growth companies in<br />
<strong>Accenture</strong>’s research say that<br />
78 %<br />
78 %<br />
analytics and digital channels<br />
became significantly more<br />
important between 2012 and<br />
<strong>2014</strong>—analytics by 15 points<br />
(from 71% to 86%) and digital<br />
channels also by 15 points<br />
(from 69% to 84%). At the<br />
same time, it became easier to<br />
succeed in both of these areas<br />
for high-growth companies,<br />
<strong>CMO</strong>s in low-growth companies should take<br />
note of the areas their better-performing<br />
colleagues rate as important to their<br />
success. Gaps as much as 20 points or more<br />
are reported in the very areas that help<br />
marketing perform better—analytics, digital<br />
channels and technology, for example.<br />
78 %<br />
As high-growth companies demonstrate,<br />
digital’s potential stretches way beyond a<br />
<strong>2014</strong> – 2019 <strong>2014</strong> – 2019 <strong>2014</strong> – 2019<br />
new distribution channel. Digital represents a<br />
wave of transformational opportunities—and<br />
threats—that comprise the ecosystem in<br />
which we live, work and play. In this digital<br />
world, technology is changing the game<br />
10 % and<br />
consumers are making—and breaking—the<br />
rules. That makes every business a digital<br />
OTHER<br />
business, whether it sells widgets or WiFi.<br />
Every business requires a digital orientation,<br />
meaning a digital focus in all business<br />
<strong>CMO</strong><br />
processes and functions.<br />
1 %<br />
7/10 7/10 7/10<br />
5/10<br />
86 %<br />
10 % 10 % 1 % 1 %<br />
which reaped the rewards of<br />
more 5/10 intense investment 5/10<br />
and resourcing.<br />
High-growth vs low-growth research findings<br />
86 % 86 %<br />
84 %<br />
84 %<br />
84 %<br />
80 % 80 %<br />
High-growth companies High-growth companies High-growth companies<br />
use data and analytics<br />
49 %<br />
49 %<br />
71 provide<br />
49<br />
a %<br />
71 to recognize 49 %<br />
strategic 49 % 49 %<br />
consistent<br />
% %<br />
improve marketing impact: importance of digital customer experience across<br />
86% vs. 65% channels: 84% vs. 67% all channels: 80% vs. 59%<br />
57 % 57 %<br />
71 % 57 % 80 %<br />
OTHER<br />
CEO<br />
35 %<br />
OTHER<br />
<strong>CMO</strong><br />
CEO<br />
35 %<br />
<strong>CMO</strong><br />
35<br />
CEO
High performers make more and better use of digital capabilities in <strong>2014</strong> (%)<br />
Using data and analytics to improve marketing impact 38 17 55<br />
Making more or better use of digital channels 35 19 54<br />
Using technology to improve marketing impact 35 18 53<br />
Expanding into new geographic markets 31 20 51<br />
Increasing sales to current customers 29 20 49<br />
Improving the trust/integrity in your brands and corporate image 33 16 49<br />
Improving the operational effectiveness of marketing workforce 30 19 49<br />
Measuring return on marketing investment 33 15 48<br />
Improving the effectiveness of marketing operations 29 19 48<br />
Reducing the costs of marketing operations—project duration, work effort,<br />
cost of quality, third party spend, etc.<br />
31 16 47<br />
Providing a consistent customer experience across all channels 33 14 47<br />
Actively managing the company’s corporate/brand reputation 27 19 46<br />
Improving promotion effectiveness of marketing campaigns 28 18 46<br />
Responding to shifting consumer demographics 32 14 46<br />
Reallocating and re-skilling resources across paid, earned, and owned media 29 17 46<br />
Internally synchronizing the end-to-end customer experience, across<br />
marketing, sales and service<br />
30 15 45<br />
Improving customer retention/loyalty 27 18 45<br />
Acquiring new customers 24 19 43<br />
Enabling agile, timely, and relevant marketing 21 22 43<br />
Easier to succeed<br />
Much easier to succeed
Customer experience<br />
lags behind<br />
The point of efficient digital<br />
channels, of course, is to ensure<br />
that they are effective as well, and<br />
the biggest proof of effectiveness<br />
lies in the customer’s interactions<br />
with the brand.<br />
Some 77% of marketers say it is essential<br />
or very important to deliver an effective<br />
customer experience for their company,<br />
but only 62% think they’re doing a good job.<br />
High-growth companies are more focused<br />
on the importance of customer experience<br />
(89%), compared to only 60% of<br />
low-growth companies.<br />
And customer experience is the #1 recipient<br />
of investments among high-growth<br />
companies (at 69%) out of 26 options, versus<br />
40% for low-growth companies. Clearly,<br />
high-growth companies have grasped a key<br />
insight: today’s digital customer expects a<br />
relevant and delightful customer experience<br />
at all times and across all channels.<br />
A seamless brand experience is key for today’s<br />
tech-savvy, multi-device-owning customer.<br />
Interesting then, only one-third of highgrowth<br />
companies report their online and<br />
offline analytic capabilities are completely<br />
integrated across all functions—though<br />
that is considerably more than the 14% of<br />
low-growth companies and 19% of average<br />
growers. The reality is that challenges still<br />
exist for all companies looking to integrate<br />
offline and online channels.
Customer experience ranks very highly on the <strong>CMO</strong> agenda but performance is lagging importance<br />
By Sales Growth (%)<br />
How important is delivering an effective<br />
customer experience to your company?<br />
How successful is your company in delivering<br />
effective customer experiences?<br />
Increased (>5%) 31 58 89<br />
Stayed the same (0–5%) 45 32 77<br />
Decreased (
Who’s driving digital<br />
transformation?<br />
A digital orientation can enable<br />
nothing less than complete<br />
transformation of the operating<br />
and business model. More<br />
than half (52%) of C-suite<br />
executives, recently surveyed by<br />
<strong>Accenture</strong> and The Economist<br />
Intelligence Unit expect digital<br />
to cause significant change or<br />
complete transformation in<br />
their industries. 3 So great is the<br />
expected transformation that<br />
42% of executives expect the<br />
biggest barrier to implementing<br />
digital business initiatives will be<br />
managing change.<br />
So where is the <strong>CMO</strong> in this transformation?<br />
Barely visible. One-third of C-suite executives<br />
(35%) say the CEO is responsible for digital<br />
innovation. The chief technology officer<br />
and chief information officer follow closely<br />
at 23% and 22% respectively. The <strong>CMO</strong>,<br />
however, is at 1%.<br />
OTHER<br />
<strong>CMO</strong><br />
10 % 1 %<br />
The rise of the CDO<br />
It’s a title you hear more and more as digital<br />
capabilities take hold. Chief digital officers are<br />
deeply committed to a digital vision. They act as<br />
a catalyst for digital transformation, someone<br />
the <strong>CMO</strong> should work closely with to enable a<br />
84 % 80 %<br />
cross-functional focus on customer experience.<br />
CDOs are concerned with every digital<br />
touchpoint—where data is going and how<br />
it is used. According to the survey findings,<br />
CDOs think they do a very good job in areas<br />
like efficiently running the same content and<br />
campaigns across multiple branded websites<br />
(60% vs. 50% for <strong>CMO</strong>s) and improving the<br />
e-commerce platform (60% vs. 45%).<br />
49 % 49 %<br />
CEO<br />
35 %<br />
CDOs also are staunch believers in the<br />
marketing function. They are very likely to<br />
say that <strong>CMO</strong>s will be the most important<br />
relationship for the CEO over the next five<br />
years, surpassing other C-suite executives.<br />
The question is not whether <strong>CMO</strong>s can<br />
effectively take advantage of digital<br />
channels; it’s whether they can be a<br />
change agent, helping the organization<br />
embrace the broader digital opportunity<br />
and protect against the broader digital<br />
threats. The <strong>CMO</strong> is well positioned to<br />
assume this role because the opportunities<br />
and threats are all about the customer,<br />
the brand, the interface with the customer<br />
and how the customer is empowered.<br />
No one should have the pulse of that<br />
better than <strong>CMO</strong>s.<br />
However, they are so focused on leveraging<br />
digital channels that they are missing the<br />
full potential of the broader digital playing<br />
field. This has given rise to a variety of new<br />
roles, such as chief digital officers (CDOs),<br />
emerging to fill the gap and join the team.<br />
3<br />
<strong>Accenture</strong> and The Economist Intelligence Unit, The Global Agenda: Competing in a Digital World, CEO Briefing <strong>2014</strong>.
The biggest barriers<br />
to digital integration<br />
With the increasing pace of<br />
technology and device innovation,<br />
it is not surprising that one in<br />
four <strong>CMO</strong>s cite a lack of critical<br />
technology or tools as the chief<br />
barrier to digital integration.<br />
Interestingly, that number remains<br />
the same whether a company has<br />
high-, low- or average-growth,<br />
and it represents more than a 10%<br />
gain over last year. <strong>CMO</strong>s know a<br />
plethora of digital technologies to<br />
leverage; their challenge, however,<br />
is to rally around the right ones<br />
for their business.<br />
The volume and variety of today’s<br />
technology can easily overwhelm.<br />
It comes in smaller, more flexible<br />
solutions than the big CRM systems of<br />
old, putting a premium on knowing a<br />
wide variety of providers’ products and<br />
understanding their capabilities. What’s<br />
more, new technologies need to be<br />
piloted and adapted from experience.<br />
They must be agile and modular, allowing<br />
a test, learn and “fail fast” approach.<br />
This can be a tall order for marketers<br />
accustomed to working with legacy<br />
systems on internal platforms rather<br />
than flexible e-services in the cloud. In<br />
collaborating with the CIO, <strong>CMO</strong>s can stay<br />
focused on the customer experience and<br />
cherry-pick technologies that help delight<br />
their customers.<br />
Barriers to performance improvement <strong>2014</strong> - Digital Orientation; for companies with<br />
increased sales, little or no sales growth and decreased sales<br />
Our organization lacks critical<br />
technology or tools<br />
<strong>2014</strong> 25<br />
25<br />
34<br />
Our people lack the required skills <strong>2014</strong> 13<br />
13<br />
22<br />
We are not sufficiently integrated with<br />
other business functions<br />
We do not have sufficient senior<br />
leadership commitment<br />
<strong>2014</strong> 19 15<br />
9<br />
<strong>2014</strong> 13 8<br />
20<br />
We have inefficient business practices <strong>2014</strong> 18 21<br />
18<br />
We lack the funding <strong>2014</strong><br />
19<br />
17<br />
18<br />
High performers Stayed the same Low performers
Omni-channel experience suffers<br />
Omni-channel customer experience took a<br />
hit last year. Performance fell across four<br />
key metrics: ability to build long-lasting<br />
customer relations, design and deliver<br />
branded customer experiences, use multiple<br />
channels strategically and leverage digital<br />
channels. Whether high-growth or lowgrowth<br />
company, B2B, B2C or B2B2C,<br />
marketers also report that the importance<br />
of offering an omni-channel experience<br />
declined as well.<br />
One set of numbers tells the story in sharp<br />
relief. <strong>CMO</strong>s report that their ability to use<br />
multiple channels strategically and in an<br />
integrated and consistent way fell seven<br />
points in <strong>2014</strong> from 2012 (from 53% to<br />
46%), but the importance of mastering the<br />
multi-channel customer experience fell even<br />
more—by 14 points (from 71% to 57%).<br />
This trend doesn’t bode well for any<br />
industry but especially not for retail, where<br />
the omni-channel customer experience is<br />
fast becoming the norm. It is now a brand<br />
differentiator, according to a recent study<br />
Forrester conducted for <strong>Accenture</strong> and<br />
hybris, an SAP company. 4<br />
4<br />
Forrester Consulting, Customer Desires Vs. Retailer Capabilities: Minding the Omni-Channel Commerce Gap,<br />
March 17, <strong>2014</strong>.
5/10<br />
7/10<br />
The talent conundrum<br />
86 %<br />
84 %<br />
While senior marketers have succeeded in hiring more talent with digital,<br />
analytical and technical skills, the impact has yet to show up in improved<br />
performance. In fact, satisfaction with key marketing capabilities has<br />
declined in precisely those areas where internal resourcing has increased.<br />
Capabilities in customer and digital<br />
analytics, for example, show a 10-point<br />
decline in satisfaction from last year to<br />
this year. Customer experience and<br />
content management capabilities also<br />
show declines in satisfaction year over<br />
year. In all these cases, more internal<br />
resources are being used.<br />
Ironically, marketers say their external<br />
partners are doing a better job. Agencies<br />
are bringing more creative ideas and<br />
understanding <strong>CMO</strong>s’ business better<br />
(both 34%). Agencies also are assuming<br />
more responsibility for digital marketing<br />
programs and being more of a strategic<br />
driver and partner in the planning process<br />
(both 31%). So <strong>CMO</strong>s are not moving more<br />
capabilities internally because external<br />
partners are doing a poor job. Rather, they<br />
want to upskill their own people and move<br />
more core marketing functions inside.<br />
The tradeoff, however—at least for the<br />
time being—is lower satisfaction levels.<br />
71 % 57 % 49 %<br />
Marketers’ satisfaction<br />
with performance of<br />
analytics capabilities<br />
fell 10 points to<br />
49% last year
Time to get in the game<br />
%<br />
8 %<br />
14 – 2019<br />
There’s a larger game being played on the digital field today. Just at<br />
the moment when <strong>CMO</strong>s are optimizing digital marketing channels,<br />
the digital opportunity itself is expanding. It’s significantly more<br />
profound and potentially more disruptive. To achieve CEOsubstantial<br />
35<br />
change, here are five ways <strong>CMO</strong>s can get in the game %<br />
and be a vital<br />
OTHER<br />
partner in the digital transformation of their organization:<br />
10 % 1 %<br />
7/10<br />
Embrace the full<br />
omni-channel<br />
customer experience.<br />
86 %<br />
Transform the marketing<br />
role as a digital perspective<br />
transforms the enterprise.<br />
Set your sights on an enterprise-wide<br />
digital ecosystem and the role of marketing<br />
within it. Aim to create multi-channel,<br />
personalized experiences for each<br />
customer across the brand. Don’t wait for<br />
all the technology to be ready. Select a<br />
few channels now, offer more than one<br />
experience and begin to test and learn.<br />
Then review the data and shift your tactics<br />
and technology if necessary. The key is to<br />
start now, collaborate across the business<br />
and keep at it.<br />
84 %<br />
While <strong>CMO</strong>s own the brand promise, fewer<br />
than half (49%) say they own the customer<br />
experience. Among high-growth companies,<br />
however, that number jumps 10 points, to<br />
59%. Among low-growth companies, it<br />
falls 12 points, to 37%. Clearly sales growth<br />
is affected when customer experience is<br />
emphasized. All the more reason, then,<br />
for <strong>CMO</strong>s to own it.<br />
80 %<br />
49 %<br />
49 %<br />
57 %<br />
<strong>CMO</strong><br />
Some ways to do so:<br />
• Reverse engineer marketing initiatives<br />
around desired outcomes—which aren’t<br />
always sales transactions.<br />
• Empathize with your customers. Evolve<br />
marketing initiatives to engage, share and<br />
help your customers, rather than target,<br />
capture and convert them.<br />
• Engage customers in an ongoing dialogue<br />
instead of individual transactions. Treat<br />
your customer as a continuous relationship<br />
that covers the whole spectrum of sales,<br />
service, retention and loyalty.
Integrate channels with realtime<br />
analytics and then act<br />
on the insights.<br />
Invest in agile<br />
technologies and<br />
cloud-based services.<br />
Re-orient the marketing operating<br />
model and integrate new talent<br />
to harness digital innovation.<br />
Capturing channel analytics and<br />
presenting them in dashboards is no<br />
longer enough. Apply your hard-earned<br />
insights to multi-channel experiences<br />
and ongoing experience management in<br />
flexible and powerful ways.<br />
Today’s technology—like today’s<br />
customers—is non-stop. “Test, learn<br />
and earn” is the new maxim. Move<br />
incrementally and add e-services managed<br />
through the cloud. As the focus on<br />
systems gives way to a focus on the<br />
customer, you can relax your constraints,<br />
begin to scale and score more goals.<br />
As you hire talent with skills in analytics,<br />
mobile and digital, integrate them in a<br />
way that produces different outcomes.<br />
Talent needs to be empowered to work<br />
together across the organization in new<br />
operating models that recognize the<br />
primacy of digital marketing and the<br />
importance of customer experience.<br />
What good is it, for example, to plug<br />
analytics talent into a traditional<br />
marketing operating model when you<br />
really want an integrated, end-to-end<br />
customer experience driven by analytics?<br />
What good are new outcomes in old<br />
delivery models?
Breakthrough business<br />
performance<br />
Business success today requires<br />
a customer-focused digital<br />
orientation. It starts with prioritizing<br />
a superior and relevant customer<br />
experience and aligning the<br />
organization, processes and<br />
technology to power it. It continues<br />
with a relentless focus on delighting<br />
your customers, reorienting your<br />
business and flexing your platform.<br />
Making a complete digital transformation<br />
means aligning and executing these three<br />
elements together, even if maturity among<br />
them varies. High-growth companies<br />
already have learned this lesson. They are<br />
rapidly creating a digital ecosystem that<br />
marries analytic insights and actions across<br />
customers’ preferred channels. They are<br />
attracting talent who create experiences<br />
that allow their companies to leapfrog<br />
the competition.<br />
Customers are demanding a relevant and<br />
delightful experience at all times and across<br />
all channels. Digital, analytics and mobile<br />
are disrupting both the marketplace and<br />
the role of the <strong>CMO</strong>. As the customer’s chief<br />
advocates within the enterprise, <strong>CMO</strong>s can<br />
be the change agents who break the silos<br />
and collaborate across the organization<br />
to put their companies in the vanguard of<br />
digital leadership and customer experience.<br />
Within disruption lies opportunity—for the<br />
enterprise and its customers and for <strong>CMO</strong>s<br />
with a digital mindset, ready to achieve new<br />
heights of relevance and high performance.<br />
Enduring customer relevance requires three key elements:<br />
Source: <strong>Accenture</strong> Interactive Digital Transformation
About the authors<br />
Baiju Shah<br />
Baiju Shah is the Managing Director<br />
for Strategy & Innovation at <strong>Accenture</strong><br />
Interactive. He is responsible for <strong>Accenture</strong><br />
Interactive’s market strategy, including<br />
acquisitions and new business services to<br />
ensure ongoing relevance to our clients.<br />
Baiju also oversees the line of business<br />
focused on digital strategy, customer<br />
experience and customer analytics. He<br />
has worked with clients across industries,<br />
including Verizon, Samsung and Chrysler,<br />
on strategies to take advantage of<br />
digital as competitive advantage. Baiju’s<br />
expertise lies in digital strategy, customer<br />
experiences and market adoption. His<br />
market perspectives have been featured in<br />
Forbes, MIT’s Sloan Management Review<br />
and BusinessWeek.<br />
baiju.shah@accenture.com<br />
@baijushah<br />
Glen Hartman<br />
Glen Hartman is the Managing Director<br />
for Digital Transformation at <strong>Accenture</strong><br />
Interactive. In this role, Glen leads<br />
<strong>Accenture</strong> Interactive North America and<br />
has global responsibility for <strong>Accenture</strong>’s<br />
Digital Platforms and Operations offerings,<br />
such as eCommerce, Content Management,<br />
Campaign Management and Marketing<br />
BPO. This role includes management<br />
and integration of recent <strong>Accenture</strong><br />
acquisitions, including Acquity, Fjord<br />
and avVenta. Cited by Forbes as a “top<br />
10 influencer in digital” in 2013, Glen<br />
leverages his 23 years of experience in<br />
digital transformation, multi-channel and<br />
data-driven marketing to help <strong>Accenture</strong><br />
clients engage customers and develop<br />
lasting brands. Prior to <strong>Accenture</strong> Glen<br />
was Managing Director, Digital Practice<br />
at Harte-Hanks and helped launch the<br />
“Agency Inside Harte-Hanks.” His market<br />
perspectives on digital transformation and<br />
customer experience have been featured<br />
in Harvard Business Review, Forbes and<br />
AdvertisingAge.<br />
glen.a.hartman@accenture.com<br />
@hartmanglen<br />
Brian Whipple<br />
Brian Whipple is the global leader of<br />
<strong>Accenture</strong> Interactive, and is a Senior<br />
Managing Director in <strong>Accenture</strong>’s<br />
leadership. Brian leads all of <strong>Accenture</strong><br />
Interactive’s business globally including<br />
Marketing Optimization, eCommerce<br />
and Content Management, Digital<br />
Transformation, and Customer Experience.<br />
He brings a unique blend of agency<br />
and consulting experience to <strong>Accenture</strong><br />
Interactive’s largest clients to help with<br />
their IT and marketing needs, which often<br />
include navigating the complex landscape<br />
of agency relationships. Prior to <strong>Accenture</strong>,<br />
Brian was Chief Operating Officer of Hill<br />
Holliday, an advertising and marketing<br />
services firm headquartered in Boston.<br />
brian.whipple@accenture.com<br />
@bhwhipple<br />
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About <strong>Accenture</strong> Interactive<br />
<strong>Accenture</strong> Interactive helps the world’s leading brands delight their customers<br />
and drive superior marketing performance across the full multi-channel customer<br />
experience. As part of <strong>Accenture</strong> Digital, <strong>Accenture</strong> Interactive works with over<br />
23,000 <strong>Accenture</strong> professionals dedicated to serving marketing and digital clients,<br />
to offer integrated, industrialized and industry-driven digital transformation and<br />
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About <strong>Accenture</strong><br />
<strong>Accenture</strong> is a global management consulting, technology services and<br />
outsourcing company, with approximately 289,000 people serving clients in<br />
more than 120 countries. Combining unparalleled experience, comprehensive<br />
capabilities across all industries and business functions, and extensive research<br />
on the world’s most successful companies, <strong>Accenture</strong> collaborates with clients to<br />
help them become high-performance businesses and governments. The company<br />
generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013.<br />
Its home page is www.accenture.com.<br />
Copyright © <strong>2014</strong> <strong>Accenture</strong><br />
All rights reserved.<br />
<strong>Accenture</strong>, its logo, and<br />
High Performance Delivered<br />
are trademarks of <strong>Accenture</strong>.<br />
Disclaimer: <strong>Accenture</strong>’s <strong>CMO</strong> <strong>Insights</strong> survey uses the generic term “partner” to refer to entities such as digital agencies, specialized agencies, marketing service providers,<br />
advertising agencies, management consultants, systems integrators and public relations firms. The use of the term “partner” in the survey, the survey results, and in this<br />
edition of <strong>CMO</strong> <strong>Insights</strong> is not intended to, and does not, imply the existence of a legal partnership.