1、Marketings New M.O. Why marketing leaders need to juggle strategic, business and operational goals better than ever before Introduction Marketing leadership can be approached from many different paths. A brand-centric organization will lead to an emphasis on big creative ideas. A marketing-led organ
2、ization requires you to always keep an eye on strategic goals. If youre in a complex customer environment, you will have an unrivaled connection to the operational needs ofmarketing. Whatever your organizations needs, youre likely to have your own personal M.O. - modus operandi, a particular way of
3、approaching marketing leadership. Of course, to succeed you will also have strength across the marketing mix but your background likely means you have a dominant area of experienceand that other areas will, by definition, be weaker. Having a singular M.O. has worked in the past, when marketings role
4、 within the organization ebbed and flowed depending on immediate needs and market trends. Its likely one of the reasons that the CMO has the shortest tenures in the C-suite as people take up newchallenges. But todays marketing organization is different. Diversification in customer segments, products
5、 and competitive threats means that the modern CMO is constantly engaged in all elements of marketing: brand building, campaign management, customer loyalty, revenue growth. The list goes on. The CMO has never been an easy job but the challenges keep on mounting. Some enterprises are even reconsider
6、ing the position of marketing within the organization and replacing the CMO role with new customer- focussed positions. To succeed in this new environment, Marketing needs a new M.O. which caters for all of these needs and allows the CMO to juggle both strategic and operational marketing priorities.
7、 More intelligent use of data is central to this new approach, as a way of offsetting the rising complexity. The result will be a marketing organization that creates customer value across all marketing activity and clearly communicates this value to the bottom line. Josh James Founder and CEO of Dom
8、o About the research To build a better picture of how the industry is tackling these strategic, business and operational challenges, we asked CMOs and marketing leaders around the world about their opinions, routines and plans for the future. Partnering with global research company Censuswide, we sp
9、oke to a total of 681 senior marketers in seven key international markets: Australia, France, Germany, Ireland, Japan, United Kingdom, and the United States. The survey was conducted in January 2019, with responses from marketers in 13 different sectors, across organizations of all sizes. Each marke
10、t was given equal weighting, and the figures in this report are the combined data from all countries, unless otherwise stated. 1 Marketing has the deepest understanding of the customer, the best ability to communicate and the most advanced understanding of digital trends, so how can it be so maligne
11、d and misunderstood? To find out, we have to take a closer look at the current landscape, and more specifically how marketers are using data as part of their currentM.O. The challenges facing todays CMO. Growth, or survival? Its clear that the pace of change is a major source of confusion and additi
12、onal complexity. 83 percent of marketers at large enterprise organizations admit that the rise of new technologies and techniques means its now much more difficult to stay on top of everything. Almost half (46 percent) say the number of data channels and sources has made it more difficult to plan fo
13、r the long-term. ? Fig 1.1 Breakdown of senior marketing leaders by company size, showing what impact the rising number of channels and data sources has had on their ability to plan for the long term Keep up or get left behind 37.2% 40.2% 14.9% 31.9% 48.1% 18.4% Made it more challengingHad little im
14、pactMade it easier 1,000 employees Some of this will be driven and motivated by internal pressures, but regardless of influence, enterprise marketers have become data-blind. 80 percent say that the industry is focusing on too many metrics concerns that arent unique to bigbusiness. Yet even that is d
15、riven by a wide range of factors. Its harder to stay on top of things from an internal perspective and, as former Unilever CMO Keith Weed argues, the external factors are also huge: “Wehave moved to an era where data, algorithms and analytics rule. Andweall know the battle for attention has never be
16、en greater. Wehave moved to an era where data, algorithms and analyticsrule. 3 Then theres the debate around who really owns data. 34 percent of senior marketers believe it should be their M.O. to connect and manage data insights across the business. Closely followed by 30 percent who believe its th
17、e CTO and the IT department that should shoulder the responsibility, and 20 percent that argue it should be the CE0. ? Fig. 1.2: Breakdown of senior marketing leaders showing sources of pressure from across their team That contrasts sharply with the view from the top. In research last year, Domo pol
18、led some of EMEAs leading CEOs and found that more than 45 percent believe they should have the responsibility to manage data in their organization, with just 8 percent saying it should be the CMO or marketing lead. Thats a big problem. Theres currently no clear owner of data in the enterprise, and
19、that in itself means there is a lack of unification a missing link between marketing and the rest of the organization that signals an opportunity for growth missed, and time and resource wasted. But whats causing it? 20.9% 24.9% 22.9% 18.3% 31.0% 18.6% 22.0% 25.8% 1,000 employees Expectation that ma
20、rketing will lead with new technology and trends The need to show return on investment The push to reduce spend and keep costs to a minimum The need to demonstrate immediate results The question of ownership 4 The findings show that 26 percent of senior marketers believe the greatest barrier to comm
21、unicating marketing performance with the C-suite, is the C-suites focus on short-term metrics, rather than long-term results. 18 percent meanwhile, think its a lack of data and systems that collate data and offer transparency across theteam. These issues are all interconnected, with two things at th
22、e centre: people and data. A solution that improves communication across both will help remove the barriers preventing organizations as a whole from becoming data-driven. But for marketing, its also looking at the bigger picture. Its clear that traditional marketing tools and processes are becoming
23、less effective, and less of a primary focus for the enterprise. So marketing needs to own data and demand generation, and use its influence and integration to make smart, customer-focused decisions. Itneeds to be strategic. ? Fig. 1.3: Breakdown of senior marketing leaders showing the greatest barri
24、ers to communicating marketing perfomance with the C-suite Lack of opportunities to share and explain results A focus on short term metrics, rather than long term results Lack of knowledge or skills within marketing tocommunicate in terms the C-Suite understands Lack of systems that collate data and
25、 offer transparency across the team Lack of marketing knowledge among the C-suite 22.3% 14.5% 17.6% 17.5% 16.2% Short term, and short sighted 5 Customer Acquisition Cost 12.0%12.6%14.1%17.8%36.3% Customer Lifetime Value Marketing Qualifi edLeads Return on Marketing Investment Customer satisfaction U
26、nsurprisingly, the customer is already at the heart of the data that matters to marketing leaders far more than metrics such as ROI. If forced to choose just one metric to focus on and cut through the noise, half of senior marketing leaders would track either customer satisfaction or customer lifeti
27、me value, because its such a powerfulinsight. Its a rational decision. Customer expectations are greater than ever before, and McKinsey there is a determination to optimize the way organizations use data and analytics. More than a third (35 percent) of senior marketers say the one thing that would m
28、ost improve the way their marketing team communicates with the wider business, would be training for staff to help them understand and explain marketing, but the wish list is much longer. ? Fig. 1.6: Breakdown of senior marketing leaders showing what they feel would most improve the way their team c
29、ommunicates with the wider business All are within reach, as central solutions that collate and manage data are already available, but consider the bigger business picture. For marketers that take the lead within their organization to implement data best practice, they can transform the way it funct
30、ions and add value across every department. Its an opportunity to be embraced. Its what great marketersdo. And it should already be front of mind. The 2018 Dentsu Aegis CMO survey found that 64 percent of global CMOs consider delivering business growth to be their top priority. And the overwhelming
31、majority think the key to delivering business growth is building more lasting relationships with customers, something they conclude can only be achieved with data-driven strategy. Appetite for change 8 The size and scale of the challenges that come with effective, data-driven marketing are reflected
32、 in budgets, as 23 percent of large enterprise organizations plan to allocate more than 40 percent of their overall marketing budget to analytics and data management over the next 12 months; 70 percent will allocate at least a fifth. ? Fig. 1.7: Breakdown of senior marketing leaders showing the perc
33、entage of their overall marketing budget they plan to allocate to data management over the next 12 months Data, it seems, is a much greater priority for large firms. Only 2 percent say they will allocate no budget, compared to 11 percent of firms withless than 1,000 employees. 0 5 10 15 20 25 30 Mor
34、e than 40%31-40%21-30%11-20%1-10%None 1,000 employees Return on investment 23% of large enterprise organizations plan to allocate more than 40 percent of their overall marketing budget to analytics and data management over the next 12 months 9 Its clear that the way forward for the marketing organiz
35、ation isnt more of the same. Complexity is increasing and leaders are being asked to do more with existing or sometimes fewer resources. The budgets and the intentions are there, but to succeed in the modern enterprise, marketing needs to be much more integrated with other functions to help it achie
36、ve its objectives. Where should you make changes to adjust to this new normal, and what needs to bepreserved? Can balanced skills and greater collaboration make Marketing a central force for growth? Marketing in the middle Unilever argues that effective marketing today “means seeing one consumer, on
37、e budget and therefore needs one measurement system.” Or reading between the lines, it needs collaboration, something a lot of marketers feel they lack. 18 percent say a lack of systems that collate data and offer transparency across the team is the greatest barrier to effectively communicating mark
38、eting performance with the wider business. Marketing has historically been built around a creative heart. It is the function of brand narrative, emotional appeal and customer communications. Those are still important but theyre now joined by data, analytics and a greater rational understanding of th
39、e customers whole experience and touch points with other departments. The debate about which should dominate marketing - left brained, rational data or right brained, emotive creativity - is a false choice. The answer lies in a balanced central brained approach, and it is the CMOs opportunity to cre
40、ate this balance. But theres still work to be done. 64 percent of senior marketers in large enterprise organizations believe that data and analytics skills alone are most important in the modern marketing department. Just 31 percent say there should be an even balance between data and creative, but
41、creative skills on their own take a back seat. For businesses with fewer than 1,000 employees, parity is more important with 46 percent answering that there should be a balance of both data and creative skills. The overarching trend remains clear though, and The solution? 23 percent say a more open
42、and collaborative team structure would provide the biggest improvement, while 22 percent want real-time data and performance figures, available to everyone and 21 percent, like Unilever, need one central reporting and measurement solution. Shared analytics would go a long way to creating greater col
43、laboration and strategic vision across teams, but theres also the question of how those teams should be structured, and what the modern marketing skill set should look like. becomes more marked the bigger the business is. Larger organizations, which create and require a much more significant volume
44、of data, place greater emphasis on managing it. ? Fig. 2.1: Breakdown of senior marketing leaders showing the balance of skills they think are most important for then modern marketing department Marketing across the enterprise Data vs creativity: is one more important in modern marketing? Strong dat
45、a and analytics skills are most important An even balance of creative and data skills Strong creative skills are most important 1,000 employees 38.0% 45.9% 8.4% 64.3% 30.8% 4.3% 11 On recruitment, the picture is different. The three skills large enterprise organizations target when hiring marketers
46、are creative (45 percent), security and compliance (45 percent) and data science and analytics (42 percent). Data skills remain a clear focus, but in an age of democratized and shared analytics, those skills are arguably easier for candidates to learn, and for the enterprise to find, than creative t
47、alent. As consultant and lecturer Anna Powers explained to Forbes, knowledge and data is no longer asymmetric, as it was in the past when only certain people had access. Now everyone has access itis just a matter of what we do with it. Her conclusion: “We must embrace and develop our creativity, and
48、 then use technology to creatively solve problems.” A strong endorsement for the idea of a new marketing M.O. ? Fig. 2.2: Breakdown of senior marketing leaders by company size, showing whether they believe there is currently a digital skills gap in the marketing industry ? Fig. 2.3: Breakdown of sen
49、ior marketing leaders showing whether data and analytics could be more effectively used to boost creativity in campaigns Another key question is: what constitutes creativity? Its always been subjective. LinkedIn Learning, the online training platform, argued that “creativity doesnt mean artistry. Yes, an artist could be creative, but so could a software engineer, a mathematician, a salesperson or a CEO. Creativity is really just solving problems in original ways.” The reality is that the lines are blurred, and that data and creativi