Posted in Innovative Ideas, Marketing Programs, tagged Akin Arikan, CMO Council, David Raab, digital, innovation, Jim Lenskold, marketing, marketing automation, Marketing Infrastructure, marketing metrics, marketing organization, marketing ROI, marketing technology, NPV, Pat LaPointe, ROI, Sandy Carter, technology on May 28, 2009|
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I’ve been pretty heads-down over the past few weeks, analyzing the data and results from my graduate research and also working on my upcoming book. As I’ve dug into the data, there clearly are some self-evident themes emerging around marketers’ opportunities and challenges with adopting strategic marketing systems and technologies (which I will be covering on this blog in more depth over the coming weeks). One of the clearest themes is the great chasm that exists between aspiration and reality for marketers when it comes to marketing measurement and the analysis of marketing return on investment (ROI).
My research found that these topics are top of mind for marketers, and many state their organizations are already beginning to engage with analytics software. When asked about tactical/operational objectives for new technology deployments, measurement and ROI analysis are at the top. This is consistent with a new Lenskold Group / MarketSphere report, released this week. “Current economic conditions are putting pressures on marketers to better understand their marketing effectiveness as 8 in 10 marketers (79%) report that the need to measure, analyze and report marketing effectiveness is greater in 2009,” according to the press release for the report.
Yet my research found that the same marketers give their organizations low marks on analyzing performance and overwhelmingly comment that their organizations are ‘not aggressive’ when it comes to marketing technology investments. Aspirations are high, but the reality of investment in systems and technologies to deliver on the aspiration is low. This also was echoed by Lenskold/MarketSphere, which further commented in their release, “[B]udget pressures are evident with 6 out of 10 (59%) indicating that this higher demand for measuring marketing effectiveness is not budgeted for … .”
The reality is that marketers cannot get enough of systems and technology to tackle measurement and ROI analysis; they have barely scratched the surface. Far from solved, this is an issue that has only become more important and yet more complicated over time. Customer channels are exploding in number, and yet marketers are incapable of delivering measurement and ROI analysis that takes this new reality into consideration. “Buyers are multichannel beings. Buying cycles are cross-channel,” comments Akin Arikan in his recent book, Multichannel Marketing. “Yet online and offline marketers still perform their measurements of success in isolation.”
So what are marketers’ aspirations; where is the disconnect; what are their challenges; and what are potential strategies for overcoming these challenges?
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Posted in Brand Strategy, Innovative Ideas, Marketing Programs, tagged Bob Barker, CMO, CMO Council, CRM, dialogue, digital, innovation, John Quelch, John Rotheray, KPI, marketing, marketing execution management, Marketing Infrastructure, marketing metrics, marketing organization, marketing technology, Mike Pilcher, NPV, organizational change, ROI, Scott Brinker, technology, technology change on March 20, 2009|
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No member of the C-suite has a riskier or more-short-lived term than the chief marketing officer (CMO). The average tenure of a CMO at the ‘100 most advertised’ US brands is 28.4 months, according to recruiting firm Spencer Stuart in a recent Advertising Age column by John Quelch. In fact, as a marketer, few things are as much of a sure-fire, eventual career killer as being named CMO. Strange … you’d think that getting to the top of marketing hierarchy would be the pinnacle of one’s career.
The challenges faced by the CMO speak to many of the fundamental strategic problems underlying marketing organizations and marketing science today and that are linked to a permanent shift in power from brand-company to customer and to a proliferation of communication channels and information sources.
For CMOs to succeed they must sit at the top of a newly-agile marketing organization, built from the ground up with sophisticated, financially-savvy and technology-empowered closed-loop systems and processes in place that can scale, that can manage increasingly complex and customer-centric communication execution and that can provide necessary transparency into multi-channel program performance. And this transparency must provide other C-suite colleagues with the real-time status of key performance indicators (KPIs) and on the return on investment (ROI) of marketing programs in net present value (NPV) terms. “[F]inancial accountability of marketing is here to stay,” argues Quelch in the Advertising Age column. “[I]mproved accountability requires CMOs to be financially literate, to understand the balance sheet as well as the income-statement effects of marketing initiatives.”
Too often, though, such an organization does not exist. “Although the marketplace has changed beyond all recognition due to Web 2.0 and the explosion in digital – marketing technology and process have not kept up with the changes,” commented Bob Barker, VP of corporate marketing at Alterian, in a recent post on DM News.
The imperative for the CMO, thus, is to drive change.
And that change must be focused on building just such an organization. It is not sufficient to manage execution of the existing organization or to believe that your company is already ‘getting it right’ today. There is no room for complacency or incremental efforts. Marketing is a dynamic practice that keeps an organization in check with the dynamic needs of its customers and of the marketplace. CMOs must drive change because their organizations must constantly change to remain competitive – a fact that was validated in a recent CMO Council report, which noted “… 61% of respondents believe that marketing operational transformation will be an essential area of focus for them in the months ahead.”
So how do CMOs do this? And where should they focus their efforts to transform the marketing organization?
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Posted in Innovative Companies, Innovative Ideas, tagged consultative sale, demand generation, dialogue, digital, digital body language, lead management, lead nurturing, lead scoring, marketing, Marketing Infrastructure, marketing organization, marketing technology, personalization, ROI, sales organization, Steve Woods, technology on March 5, 2009|
The Internet changed everything … especially for marketers. Now more then ever, customers have a million tools and information sources at their disposal, and the power balance has forever shifted to the needs of the customer versus that of the brand-company and its products and services.
Customers are now driving the marketing process … in case you haven’t heard.
The consequence for us as marketers (and our role in demand generation) is that our fundamental posture must change. Yes, it remains increasingly important to get the attention of your customers and to ‘rise above the noise,’ but it also is increasingly important to be a better listener and observer – catering to the needs, preferences and timing of your customers. I liken our new role as marketers to being similar to the attentive and omnipresent, but unobtrusive, waiter at a five-star restaurant at The Ritz-Carlton or the Four Seasons – standing by and ready to cater to the customer’s every need and knowing exactly when (s)he wants something. Fortunately, the same Internet domain that has made our job tougher as marketers can also be a source of new and valuable insights into customers’ ‘digital body language,’ as Steve Woods (Twiter: @stevewoods), CTO and co-founder of Eloqua, calls it in his new book, (not coincidentally titled) Digital Body Language – Deciphering Customer Intentions in an Online World.
Source: New Year Publishing
Steve Woods is a forward thinker who has spent the last decade of his career learning about and building systems to help marketers better leverage insights into customers’ digital body language. His book is the culmination of his domain expertise and years of experience in software architecture, engineering and strategy for marketing systems, as well as his track record of client successes since Eloqua’s founding in 1999. This expertise, experience and track record led to him being named one of Inside CRM’s Top CRM Influencers in 2007.
Prior to co-founding Eloqua, Woods worked in corporate strategy at Bain & Company and engineering at Celestica. Woods holds a degree in Engineering Physics from Queen’s University in Kingston, Ontario.
So what does it take to better understand digital body language, and how as marketers can we better leverage digital body language to improve our delivery to customers, our collaboration with our sales-team colleagues and our fundamental ability to drive demand generation?
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