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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 />

marketing services. Follow @<strong>Accenture</strong>Social or visit accenture.com/interactive.<br />

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.

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