Global C-suite Study: Mandate for Marketing

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The current and future consumer expects a highly personalized experience. This is apparent from the recently published Global C-suite Study by IBM, including a number of relevant results for the Chief Marketing Officer. The combination of design thinking and emerging technology can help the CMO address changing customer needs and other market factors.

The CMO has a key role within many organizations, especially now the focus is increasingly shifting from product to customer-oriented. The marketer has a clear mission: creating value by optimizing the customer experience. In addition, the way a company deals with customers is of major influence on how people work together internally. The choices and objectives of the CMO therefore affect the organizational culture. Technology is becoming increasingly important in all these areas.

Natural bond

For us as IBM, there is therefore a natural bond with the marketer, which we can support in various areas. For example in the field of creative and strategic thinking, but also in performance marketing where the added value of specific activities becomes clear, and of course the realization of the ultimate customer experience. The IBM study shows that companies that are at the forefront of technology and digital capabilities in many areas achieve better results than organizations that are at a lower level of maturity.

Of course the CMO is not our only point of contact within organizations. The possibilities and the impact of technology are increasing, and therefore various senior leaders recognize the importance. Technology and digitization are thus becoming a concern and responsibility of a mix of functions. Within this dynamics the CMO has specific challenges and opportunities, especially towards the consumer and end customer. As IBM we are very well equipped to support in this.

Market factors

The Global C-suite Study shows that CxOs see so-called ‘market factors’ as the most important external force of influence on their activities. Since 2010, technology has come first. Apparently, the widespread use of digital technologies has become the new normal, and to to a lesser extent a distinguishing factor. Young people between 13 and 21 years old have already fully grown up with digital. This ‘generation Z’ is mainly looking for authenticity and a personal and empathic approach. Changing market dynamics, evolving customer preferences and new distribution channels require the attention of CxOs – all in the heart of the CMO domain.

Design thinking is increasingly seen as a good way to better understand the customer. It is therefore a great starting point for a further journey and an optimal customer experience.  In doing so, it is crucial that the experience within each type of customer contact is of the same high level; regardless of time, location, online, offline and the reason for the contact. To achieve this, the CMO sometimes has to act as a driver of change, particularly focused on a customer centric culture. Therefore the CMO should be a key member of the board of directors, to take the organization into the new era.

Artificial intelligence

Technology nevertheless remains important. Artificial intelligence (AI) in particular can be of great value to organizations and their CMOs. Think of being able to measure and clarifying the performance of marketing activities. In addition, AI can be used to determine per sales channel what is the best offer for which individual customer. Additionally, based on data and intelligence, it is possible to anticipate the reaction of consumers to each offer, message or specific content – the so-called personality insights. All this in combination will lead to a personalized customer experience and a higher conversion ratio.

Furthermore, working within ecosystems is playing a more important role for the CMO. Besides market factors and technology, having the appropriate skills is seen as the third crucial factor. Internally, but also extended tot ecosystems in order co-create en collaborate both with customers and partners. The knowledge and data derived from close and continuous collaboration can orchestrate compelling customer experiences. An example is how including meteorological data can help a marketer to offer the right offer at the right time.

Benelux

The CMO study shows that companies in the Benelux and Nordics to a large extent recognize the need for an optimal customer experience. The focus shifts from product orientation to experience. In addition, Benelux leaders much more than average see the value of being able to work together within an ecosystem. On the one hand this is great, on the other hand it means that in our region the competitive pressure is not to be underestimated. This may be part of the explanation for this outcome: if you take competitors on a specific site, you simply can not stay behind.

My call to action is therefore: marketers should prioritize and drive client centricity. They have to get this message across within the entire organization. Modern CMOs foster the right competences and create a cultural change focused on customer experience, collaboration and value creation. Embracing new relevant technologies on the market is the easy part.

You can download the CMO Role Report here.