Download - The chief marketing technologist
© 2012 IBM Corporation
October 2012
The New Profession on a Smarter Planet:Chief Marketing Technologist
Virginia SharmaVice President, Marketing and CommunicationsIBM India/South Asia
Path to Marketing Transformation
© 2012 IBM Corporation
Police chiefs fight crime with data
Marketers predict individual behaviors
Farmers track livestock in real time
Doctors deliver personalized prescriptions
Retailers foresee emerging shopping trends
Chief Supply Chain Officers change assortments in seconds
Smarter Planet is more relevant than ever…and more REAL
Path to Marketing Transformation
© 2012 IBM Corporation
InstrumentedWe are seeing the infusion of information deeper into the systems and processes we depend on.
InterconnectedThese can be made to communicate with each other in meaningful ways, creating intentional systems of systems.
IntelligentAs these systems grow, intersect and overlap, new kinds of interactions, insights and ways of working emerge.
The Power and Potential of the three I’s — continues to evolve
Organizations keep pushing the boundaries of what can be instrumented, interconnected and made intelligent—and how.
Path to Marketing Transformation
© 2012 IBM Corporation
As companies and industries become smarter, so are the professions and functions that support them.
3
Organizations around the world are turning “too much data” into better decisions.
The walls between companies and customers are disappearing.
Path to Marketing Transformation
© 2012 IBM Corporation4
The role of the CMO is changing—from leading marketing to driving growth and transformation across the business.
79%Expect high/very high level of complexity over 5 years
49%Feel prepared for expected complexity
Expected level of complexity and preparedness to handle itPercent of CMOs responding
Four core challenges• Social media• Data explosion• Growth of channel and device choices• Shifting consumer demographics
31%complexitygap
Source: 2011 IBM Global CMO Study
Path to Marketing Transformation
© 2012 IBM Corporation
The timeless responsibilities of marketers everywhere…
Protecting the brand promise.
Defining what to market and how to market it.
Knowing the customer.
5
Path to Marketing Transformation
© 2012 IBM Corporation6
…are evolving into three imperatives for a new profession.
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
Path to Marketing Transformation
© 2012 IBM Corporation
The New Profession: The Chief Marketing Technologist
In this transformation of the marketing function, the transformation of technology and the way it’s used is critical.
Path to Marketing Transformation
© 2012 IBM Corporation
The Shift
By 2017 the chief marketing officer will control more technology spending than a company's CIO
• Companies spent up to $25 billion worldwide on marketing software last year, up from about $20 billion the previous year. As a comparison, overall corporate software expenditures totaled $115 billion
• ~ a third of marketing department expense budgets is devoted to purchases such as systems to manage customer relationships, predict customer behavior, run online storefronts
$1.5 trillionAmount spent on marketing and communications in 2011
7-8%Growth of marketing budgets in next 12 months, 2-3X that of IT budgets
$148 billionIT-related spend owned / influenced by CMOs in 2012
60%Growth of spend on marketing analytics in next three years
Path to Marketing Transformation
© 2012 IBM Corporation
Chief Marketing Technologists paint a predictive picture of each customer by harnessing data on a massive scale.
• Instruments all key touch points to gather the right data about each customer.
• Connects social media data, transaction data and other information to paint a more vivid picture of each customer.
• Runs the right analytics at the right time on the right customer to generate new ideas about whom to serve and how best to serve that person.
• Generates insights that are predictive, not just historical.
• Builds capabilities to do this on a massive scale.
9
Path to Marketing Transformation
© 2012 IBM Corporation10
L’OCCITANE uses optimized customer segmentation to maximize value at every touch.
1,700%increase in conversation to sale
“By segmenting visitors based on behavior and tailoring email content accordingly, we are able to deliver highly personalized messages that generate much higher open rates, conversion rates and revenue per email. Instead of trying to second-guess our customers, we can present them with offers that we know will interest them.”—L’OCCITANE en Provence
Path to Marketing Transformation
© 2012 IBM Corporation
Chief Marketing Technologists design the full customer journey, knowing what clients want before they do and creating value at every touch.
• Designs tailored experiences that connect the company, the channels and like-minded customers.
• Creates and automates and automates a system of engagement to deliver these personal interactions—at a massive scale.
• Uses analytics to guide the development of tomorrow’s portfolio.
11
Path to Marketing Transformation
© 2012 IBM Corporation12
wehkamp.nl created a system of engagement that offers online shoppers more relevant experiences.
271%higher sales-per-send ratio for marketing emails
“Everyone knows that targeted marketing is how we should be interacting with our customers, but so few online retailers are doing it yet. With this new system, we can track a shopper’s interest in real time and deliver personalized discounts and incentives.”—wehkamp.nl
Path to Marketing Transformation
© 2012 IBM Corporation
Chief Marketing Technologists defines a promise—then build the system to live it authentically through the brand and across the culture.
• Develops an acute understanding of its reputation by actively listening and engaging in social media.
• Systematically closes the gaps between a company’s unique character and its reality — in all critical interactions.
• Champions tools that connect the organization, and platforms that enable employees to delight customers.
• Ensures that systems are in place to manage the risks of being a social business.
13
Path to Marketing Transformation
© 2012 IBM Corporation14
BBVA ensures that its brand and its culture are authentically aligned by continually monitoring and assessing reputational risk.
100%increase in the notoriety of the brand in one year
“Knowing what our customers think about us is essential to implementing effective customer service strategies, new products and strategic goals.”—Banco Bilbao Vizcaya Argentaria
Path to Marketing Transformation
© 2012 IBM Corporation
What does Success mean to a Chief Marketing Technologist
Improved customer value, loyalty and retention
5-15% increase typical
Higher online marketing ROI
15x-25x increase typical
Higher campaign ROI15-30% increase typical
Increased response rates
10-50% increase typical
More campaigns with the same resources2-5x increase typical
Reduced cycle time for marketing efforts40-80% reduction typical
Reduced marketing costs20-40% reduction typical
Lower customer acquisition costs25-75% reduction typical
More effectivemarketing
More efficient
marketing
From over 2,500 companies worldwide
Path to Marketing Transformation
© 2012 IBM Corporation
@VirginiaSharmavirginiasharma.blogpost.com
Are you gearing up for the new Profession?