the incite primer: the evolution of marketing and communications in 2013

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IncIte PrImer:

The evoluTion of MarkeTing and CoMMuniCaTions in 2013

ConvergenCe between MarketIng and CoMMunICatIons FunCtIons

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It’s going to be an interesting year.

Marketing and Communications executives are both wrestling with significant evolutions in many different areas of their roles.

The technological advances that have birthed the horrific portmanteau “SoLoMo” have also given savvy executives more opportunities than ever before to engage customers where they want to be engaged, and when they want to be engaged.

Equally, the explosion in ‘big data’ has meant that the picture a brand can build of individual customers and consumer trends equip forward-looking companies with insight they could barely dream of a couple of years ago.

And yet these two opportunities also herald significantly ructions in the existing role - and very definition - of marketing and communications executives.

In this collection of publications, Incite Marketing and Communications have analysed hundreds of survey responses from corporate executives, and merged them with hundreds of hours of primary research. We have begun to draw out some key trends that we expect will have a deep and lasting impact on both marketing and communications executives in the coming year and the longer term future.

So please read on, and take a glimpse at what 2013 holds for you. Once you have, we want your feedback. Incite exists to incite (natch) debate on the tough questions faced by marketers and communicators. You can join that debate and learn from your peers at www.incitemc.com and on Twitter at @InciteMC.

Cheers,

nick JohnsonFounderIncite Marketing and Communications



Contents:

the 4 key Issues of 2013: Predictions for Marketers and Communicators...In this publication, we take an overview of the trends and changes that will impact on your role as a marketer and communicator in 2013. We cover issues like:

• Customer-Centricity

• Multi-channelmarketingandcommunications

• Theerosionofthedividinglinebetweenmarketingandcommunications

How big data, social media and customer-centricity will drive a merging of the marketing and communications departmentsIn this essay, we investigate how three of the big trends of the last few years are slowly removing the historic division between marketing and communications functions. We look at

• Internalandexternalpressuresforconvergence

• TheobservationthatCommunicatorsseemkeeneronthisconvergencethanMarketers

• How‘internalconvergence’isjustasimportantas‘externalconvergence’

’Multi-channel’ is going to revolutionise marketing and communications. again.In this investigation, we look at how the increasing complexity of what it means to be ‘multi-channel’, and the impact that will have on your role. We look at:

• Whymulti-channelisshootingupyourprioritylist

• Examplesofhowmulti-channelcanboostyourbrandengagement

• Benchmarksonhowpreparedyourpeersfeelforthissignificantchange

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the 4 biggest issues in 2013 – according to 300 of your peers

As part of the run up to the 2013 Incite Summits, we asked 300+ marketing and communications executives about the key issues they see impacting on their roles in 2013.

a complicated future

The first observation is quite how complex both roles will become in 2013 - and, significantly - the surprising level of harmony in the predicted key issues over two normally quite distinct job functions.

Biggest Impact on Marketing and Communications Roles in 2013

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The four most important topics, as you’ll see in the chart above, are:

1. Customer-centricity: Specifically, in this case, getting closer to the customer and understanding them better. What’s more, evolving the business so one’s customers are able to have a meaningful impact on business practices, strategy and future goals/products. This is quite clearly the most significant impact on roles in 2013 - across both functions. An enormous 46% of all respondents picked this as their top priority in 2013.

2. Multi-channel marketing/communications: Linked closely to the previous issue, multi-channel marketing focuses on how to integrate multiple marketing/comms channels to ensure they work in concert for an impactful, effective, and pervasive marketing campaign. A significant 22% picked this as top priority

3. Building unique customer experiences through more personalisation/segmentation/better consumer insight: Striving towards providing your customers with a personalised, engaging and unique relationship with your brand. Companies are beginning to do this through the increased segmentation made possible by social media/big data profiling, and by the proliferation of marketing/communications channels and platforms. Evidently, from the popularity of this option, it is a challenge that executives have not overcome completely. 10% picked this as top priority



4. Internal Collaboration: Focusing on more efficient internal collaboration between marketing and communications, to ensure that the company speaks with a unified voice, shares insight and responds better to consumers.7% picked this as top priority - which is significant in itself, but more so when one considers that 24% of Communications execs said this was priority #1, and only 5% of marketers. More on that below.

Customer centricity has never been more alive

What issue will have the biggest impact on your role in 2013?

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‘Customer Centricity’ is not a new term. It has been around for several years. For the more overzealous of marketing ‘gurus’, it’s already dead, actually.

Not according to our corporate respondents. For them, customer centricity is going to be the biggest impact on their role in 2013. Not 2008. Not 2010. 2013.

Why the discrepancy?

Marketing and Communications service providers/agencies have something to sell. It’s understandable that they want to move on from any new development as soon as they can - the next big idea may well be even more lucrative.

Butcorporationsthemselvesmoveataslowerpace.Theyfocusonwhatactuallyimpactsontheirbusiness-andtheir bottom line. Things that work, not things that are new.

There have been many, many buzzwords bandied around for the last few years - glocal, solomo, gamified to name but three. It is significant that, in the company of many other more ‘traditional’ and ‘recognisable’ issues, ‘customer centricity’ is still picked by more than twice as many of our corporate respondents as anything else.

This is the year, it seems, for customer-centricity to truly come to life.



Communicators want Marketers. Marketers don’t care

The increased need to collaborate with the marketing / comms department is going to have the most impact on my role in 2013

22% COMMUNICATORS 5% MARKETERS

Over the last 8 months, we have been researching the key issues for both the marketing and communications communities.

Bothsetsof respondentsareunited intheneedforamorecustomer-centricapproach, forpresentingamorehuman face to consumers, for communicating in an integrated - and consistent - manner, and for sharing insights about consumers better internally.

And yet. When asked how important enhanced internal collaboration would be in 2013, 22% of communications executives said it was their top priority. Only 5% of marketers said the same.

Why?

1. Marketers are already doing as much collaboration as they need

2. Communicators are seen as performing a smaller/less critical role, and thus marketing is less incentivised to collaborate with their department specifically

3. What else? Your feedback would be appreciated in the comments below

big data, small impact

While our survey results have come as a boon to those predicting a big year for customer-centricity, they give short shrift to those talking of big data’s huge impact on corporate marketing and communications/

Put simply, the practitioners don’t agree.

Only 7% of respondents say it’s going to have the biggest impact on their role in 2013. It falls behind not just customer-centricity, but multi-channel marketing and the ability to deliver more unique customer experiences through better personalisation/segmentation/customer insight.

While it’s obviously true that the impact of big data is liable to fall far more broadly than on simply the marketing and communications departments, and equally, that the topic is nevertheless one of the top 7 responses throughout ourresearch,it’sstillasurprisingshowing.Bigdataisperhapsoneofthemosttalkedaboutdevelopmentsofthelastdecade,andthepotentialimpactsonbusinessareundeniablyvast.But,assuggestedabove,multi-nationalcorporations are not known for moving fast. Evidently this new strategic opportunity hasn’t filtered down yet into the marketing and communications departments.



Biggest Impact on Communications Roles in 2013

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big data, social media and customer-centricity will drive a merging of the marketing and communications departments

Over the last few months, we at Incite have been conducting in-depth research with over 80 senior marketing and communications executives.

Since then, we’ve run several surveys and questionnaires to attach some solid statistics to our more qualitative findings from our conversations with practitioners.

In this piece, I’ll investigate the first major finding from our work.

Marketing and Communications Functions are Merging

Perhaps the most obvious, and pressing, development for senior marketing and communications executives in 2013 is the continued blurring of the lines between the two functions.

It was a common refrain throughout our research -

“The challenge is how both functions work more closely in alignment, and leverage each others’ resources”

“ What we’re saying internally is that with the advent of social, with multiple media channels, that lines blur between traditional marketing, PR and Communications”

“The customer doesn’t care where the info is from, just that they can get that info easily”

“ One of our key challenges this year is integration - between brand, PR, communications, and marketing, to ensure a better joined up response and message to a more demanding set of customers”

As we can see from the chart below, the surveys we’ve run back up the findings. A huge 92% of respondents said that multiple departments “must work better together for an enhanced, unified customer experience”.

Must multiple-departments work better together for an enhanced customer experience?

92% YES8% NO



Another significant proportion - 56% - are more specific, declaring that it is ‘very important’ for marketing and communications departments to collaborate and integrate better over 2013.

How important is it for Marketing and Communications Departments to work more closely?

14% QUITE IMPORTANT

56% VERY IMPORTANT

5% NOT IMPORTANT

25% IMPORTANT

what explains this push to convergence?

So why has internal departmental convergence, collaboration and integration become such a pressing concern for senior marketers and communicators?

There are two relatively new pressures on both groups, and they’re blurring the lines between two previously distinct departments

the external pressure

In large part because of the rise of social media, consumers increasingly expect to be able to speak to a brand as easily as they speak to a friend - and more importantly, to get a response and build a relationship.

Your consumers expect that when they mention your brand on Twitter, then call you, and then send you a follow up message over Facebook, that you’ll join the dots. And that’s a real challenge when social adoption is so fragmented, particularly in larger businesses who usually have tens of social accounts, run by different individuals in different teams.

One obvious answer is to unify that approach. Considering the marketing and communications teams are those predominantly responsible for outreach on behalf of a brand, it follows that they should work together to manage these communication channels (with the possible addition of customer service - and even IT - departments).

the internal pressure

Again, social plays a role here - though big data is becoming increasingly important. Companies now have an unrivalled ability to track, monitor - and understand - their customer in far greater depth than ever before. To take the example above, once your business can track customer interactions over multiple channels, one is able to spot trends, brewing crises, and new business opportunities.

Butforthistowork,thosemanydepartmentswhomonitordifferentbigdatasets-IT,customerservice,productdevelopment, customer insight, marketing, customer service - must ensure that data flows uninterrupted between each other. More importantly, that learning is shared between these departments.

Marketing and communications, as the two functions with arguably the most to gain from a more in-depth and nuanced understanding of the consumer, should be spearheading this unification.



Communications needs Marketing More than Marketing needs them

When we begin to look a little deeper, some interesting further trends emerge:

‘Very Important’ for Marketing and Communications to work more closely

42% MARKETING

58% COMMUNICATIONS

When one breaks out the respondents from Communications and Marketing functions, there is a striking difference of opinion. 65% of communications execs say that it is ‘very important’ to work better with marketing in 2013, and yet only 48% of their peers in marketing believe the same.

Why? Is Marketing the function with more power within business? It’s certainly true that CMOs are more often responsible for Communications departments than CCOs responsible for marketers.

b2b companies want convergence more than b2Cs

It’s critical to do better internal collaboration

93% B2B 86% B2C

Surprisingly,93%ofB2Bcompaniessaytheyneedtodobetterinternalcollaboration,comparedto86%ofB2Cs.Admittedly,thedifferenceisslightandtheresultoverbothbusinesstypesisemphatic,butB2Brespondentswitha similar level of desire for convergence is surprising, let alone more desire.

Why surprising? A core pillar of the argument for more convergence is to deliver a more unified voice to the consumer.B2Ccompanies,withmoreindividualconsumers,withwhattendstobeabroaderand‘highervolume’external communications approach, would seem more naturally pressured by a need for this convergence.



Internal convergence is more important than external convergence

When one talks of ‘convergence’, it is tempting to play with semantics and broaden the term to incorporate ‘customer-centric’ characteristics - and start to look at convergence between the corporate and the consumer - in terms of closer alignment, understanding, product delivery etc.

Considering the rampant popularity of the buzzword ‘customer-centric’, one would assume the passion for this ‘external convergence’ would be significantly higher than the more boring ‘desiloisation’ needed for internal collaboration.

It is important to do better...

EXTERNALCOLLABORATION

INTERNALCOLLABORATION

92%

92%

It’s not. Companies view both internal and external collaboration as just as important as each other.

a note on definitions of ‘customer-centricity’ and ‘external collaboration’

One could read these results as a more cautious reading of what ‘customer-centricity’ means for a corporate audience.TheidealespousedbyBobThompsonofCustomerThinkisofa‘customer-inspired’business,which

“Thinks deeply about what customers are trying to accomplish in their business and personal lives, and create new ways to add value before they ask”

Butperhapscorporatepractitioners’understandingof‘customer-centricity’islowerdownThompson’s“Customer-Centric Pyramid” - at the ‘Customer-Driven’ phase:

CUSTOMER INSPIRED

CUSTOMER ENGAGED

CUSTOMER DRIVEN

CUSTOMER fOCUSED

How customer-centric is your business?

CopyrightCustomerThinkCorp



“We regularly get customer feedback, prioritize key issues and work to improve customer satisfaction with the products and services we sell, to minimise customer attrition”

Thompson feels that the higher up the pyramid, the better for the business. Again, perhaps this is one assumption too far. What do you think? What is the ideal level of customer-centricity?



what is Multi-Channel Marketing?

The last five years have seen a radical shifting of the marketing and communications landscape, and ‘multi-channel’ as a concept.

according to wikipedia, it can be defined as:

“marketing [and communications] using many different channels to reach a customer.[1] In this sense, a channel might be a retail store, a web site, a mail order catalogue, or direct personal communications by letter, email or text message. The objective of the companies doing the marketing is to make it easy for a consumer to buy from them in whatever way is most appropriate.[2] “

While ‘multi-channel’ has been around as long as marketing and communications themselves, the world has changed siginficantly in the recent past. That means that the role of the marketer/communicator has got significantly more complicated, and the expectations from customers have evolved significantly. There’s not only an opportunity to engage across multiple channels, but an expectation - and a need.

In a recent Incite Webinar (available to listen for free here) Linda Rutherford, Vice-President of Communications and Strategic Outreach at Southwest Airlines, said that

“The way the world used to be, when you tuned into television news, 90% of the population saw it. That’s simply not the world of today. There are so many different ways to reach people, to share with them, and to tell them about your brand. In recognition of that fragmented world, it requires us to think about what a multi-channel approach can look like. Our mantra is to ‘be where our customers are’”

JeromeHiquet,Vice-PresidentofMarketingatClubMedNorthAmerica,agreedwithherinthesamediscussion:

“Customers are multi-channel, they use lots of channels to reach us - but they want to speak to one brand. So multi-channel strategies are going to force each brand to take a ‘step change’. To engage, we must be everywhere, and we must be involved in ‘participative marketing’ - so multichannel and multi-directional.”

It seems that if you want to reach your customers as efficiently as previously, you can’t use the tried and tested methods that worked previously.

why should you care?

Alongside this increasing pressure and need to extend your multi-channel abilities, there are huge opportunities available Technological advances have led to not only meant that your customers and stakeholders are now accessible in ways not possible even five years ago.

As a marketer or communicator, you can now get in touch with people when they want, in the way that they want - and when they are most likely to engage with you.

You can identify consumers from their travel habits and remind them to pick up a coffee from your (conveniently located) coffee shop as they leave the subway.

When they talk over social media about their need for a new work shirt, you can join the conversation and point out your excellent bespoke service.



AstheywatchtheSuperBowl,andgetconfusedaboutthepoweroutageandgotoasocialnetworktofindoutmore, you can quickly respond with a brand message taking a sideways look at the issue. Oreo did this, and drove moreawarenessfortheirbrandthananynumberofSuperBowladvertisements.

These single channels all offer fantastic opportunities for the savvy brand to engage.

And yet they are far more powerful together.

When ensuring all channels - social, local, email, direct mail, broadcast, online ads, mobile and more - work together, you are able to create campaigns and messages more pervasive, personalised and engaging than one could have dreamt of less than a decade ago.

Challenges in multi-channel

It appears that there is little argument - cutting edge marcomms execs must deliver a multi-channel experience in this new world of brand engagement.

Yet that presents challenges to overcome. The first, and most obvious, is complexity. A fragmented marketing and communications landscape means you need to:

• Understandwhichchannelisappropriateforwhichmessage

•Howtodrivepeoplefromonechanneltoanother

• Retainconsistencyoverseveralchannels

• Trackandunderstandwhichchannelsareworkingandwhicharenot

This is evidently no easy feat. And corporate practitioners recognise this:

Top 3 issues for you in 2013

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The chart above shows which issues are identified as a ‘Top 3 Priority’ for the coming year



As you can see from the chart above, multi-channel marketing is a fundamental focus for both marketers and communicators in 2013.

Overall, it comes second in the list of corporate priorities, behind being more customer-centric, and tied with building unique customer experiences for customers/stakeholders.

NB: Importantly, it is worth acknowledging that ‘building unique customer experiences’ and ‘multi-channel’ are inextricably linked. ‘Multi-channel’ is the fundamental tactic corporations are using to build these ‘unique customer experiences’.

there’s a difference

It’s interesting to consider the differences in approach that this chart highlights between the marketing and communications functions in 2013.

In research conducted by Incite over the last few months, as we discuss here, there is a notable synergy between marketing and communications functions. The two departments have remarkably similar priorities, and indeed, there is an argument to be made that the dividing line between the two functions is blurring.

This blurring has come about through the increasing need for companies to speak ‘with one voice’ to customers, asHiquethighlightsabove,andequallytothedrivetobuildmoredetailedpicturesofconsumersthroughbetterinternal data sharing.

Yet evidently there are still differences. The relative importance of establishing multi-channel campaigns is one. As Chart 1 shows, Multi-channel campaigns are named as a ‘Top 3 issue’ by over half of all marketers surveyed. Yet for Communicators, this figure drops to just over 20%.

That’s a remarkable difference in approach - indeed, it’s the most significant difference in approach across all issues in the chart. There is no greater gap between marketing/communications functions than when it comes to multi-channel.

Why is this? We don’t know. We would love you to let us know what you think.



but don’t be misled - this is critical for everyone

OVERALL: Importance of Multi-Channel

41% CRITICAL14% NEUTRAL

45% IMPORTANT

When asked in isolation about the importance of multi-channel in outreach campaigns, both marketing and communications functions were more forthright.

Overall, 41% of respondents said it was ‘critical’ in 2013, with a further 45% classing it as important.

COMMUNICATORS: Importance of Multi-Channel


42% IMPORTANT

Of those respondents working in the Communications function, the numbers were slightly lower.

Nearly a fifth of respondents said that Multi-channel was not important, or they were neutral about it. Yet well over a third still said that multi-channel communications was critical, and 42% said it was important.

MARKETERS: Importance of Multi-Channel


49% IMPORTANT

Marketers, understandably considering chart 1, were more committed to multi-channel. A full 42% said it was critical to their role in 2013, and 49% said it was important. That leaves only a rather small 9% of our entire respondents who either class multi-channel as ‘unimportant’, or something they’re neutral about.



Putting their money where their mouth is

“ I expect my company’s resource spend on multi-channel will increase over 2013”

17% NEUTRAL9% DISAGREE

74% AGREE

And they put their money where their mouth is. An enormous 74% of people who attended our recent webinar on multi-channel marketing (recordings available for free, here) expect their company to increase resource spend on multi-channel over 2013.

BothHiquetandRutherfordweresurprisedbythisfinding.

Along with many participants in the webinar, both Vice-Presidents suggested that rather than increasing resource spend overall, they were instead looking at reallocation. Finding areas of inefficiency, and reallocating resource from underperforming areas of marketing into multi-channel.

Nevertheless, Hiquet still had advice for those looking to prise open the board’s purse strings. He went tomanagement with the message:

“If we work better in multi-channel, we can expect an increase in terms of brand attachment, but also in repurchase rate. We tried to demonstrate that by increasing repeat business, we should use that to increase our resources.”

so, are you prepared?

“ Our multi-channel strategy is not as developed as it should be”

20% NEUTRAL4% DISAGREE

76% AGREE

You feel prepared for this? If so, you’re in the minority.

A full 76% of our respondents do not feel that their multi-channel strategy is ‘as developed as it should be’. Only a tiny 4% were confident enough to say that they were where they needed to be.



AccordingtoHiquetandRutherford,thisisn’tsurprising.Indeed,bothexpressedtheviewthatabrandwillneverbe ‘done’ when it comes to multi-channel marketing, with new channels and opportunities to connect arising quickly and consistently.

Hiquetsaidofthefindings:

“It’s a proof of humility, and with all these touchpoints to manage, to be consistent, to have the right content and targets, it’s very tough. I do think that everything changes so quickly, and in terms of new trends, new actors in the market, we need to be very humble in what we can do. I think people are saying they can improve, and they are focusing on doing that.”

Rutherford agrees with him:

“I’m not surprised - I don’t know that we’ll ever be done in this new world we live in. When you say ‘multi-channel’, there are new ways to engage your audience with your brand that are popping up every day. In the last 6 months, we’ve spent time playing around with Vine and Viddy and other opportunities to engage.The speed, and the creativity, with which things are moving these days means we are constantly going to be learning about these new opportunities to connect, I don’t think we’re ever going to be ‘done’”.

Conclusion

Getting better at multi-channel marcomms is evidently a significant challenge for your peers. It’s also undeniably a key focus for 2013 - whether one works in marketing and communications.

There are huge advantages to a more multi-channel approach to your outreach program, not least the increased pervasiveness, personalisation and engagement levels when one can orchestrate a truly multi-channel campaign.

And yet the challenges - notably the huge upscale in complexity inherent in marketing and communicating across such a fragmented landscape - leave many feeling they simply are not prepared for this shift.

That is why we’re running a large-scale business Summit discussing this very issue. We have Chief Marketing and Communications Officers from Sony, L’Oreal, Aflac, Arby’s restaurants and more sharing their insights on this topic. If you want to find out more, you can download a ‘sneak peek’ for marketers here, and for communicators here.

Secure your place with our ultra-early bird passes and save $895 on your ticket at www.incitemc.com

incitemc.com #IMCSuMMItSeptember 18-19, New York

Your sneak Peek into how the Incite 2013 Summit is shaping up!

Map the Future of Multi-channel, Customer-centric Marketing and Communications

at a glance: Insight on some of the big issues…AGENDA

The Customer- Centric future

Change your corporate culture to focus better on the customer

Moving Customer-Centric Without Causing Chaos

Get a customer-centric internal organisation that’s simple, not complex

How To Listen, So You Can Talk Back Better

Get more useful insight about your customers, and use it to do better Communications

Build Unique Customer Experiences

Manage a complex Communications landscape and integrate many channels to build one effective stake-holder experience

Less Silos = More Success

Breakdowninternalbarriers and get everyone singing from the same hymn sheet

we have already confirmed to contributeSPEAKERS

sony electronicsMike fasuloChief Marketing Officer

aflacMichael ZunaChief Marketing Officer

searsJennifer DominiquiniChief Marketing Officer (Seasonal and Outdoor Living)

restaurant.comChristopher KrohnChief Marketing Officer

arby’sRussell KleinChief Marketing Officer

basFRobin RotenbergChief Communications Officer

MetLifeClaire BurnsChief Customer Officer

ChobaniNicki BriggsChief Communications Officer

ericsson/CoinstarNora DenzelNon-Executive Director

CitigroupBen EylerVice-President, Marketing and Communications

barnes & nobleSasha NorkinVice-President, Digital and Channel Marketing

Home depotfred NeilVice-President, Marketing, CRM and Customer Insights

diageoMichelle KleinVice-President, Global Marketing (Smirnoff)

Hewlett PackardRob WaitVice-President, Marketing

whole FoodsBill TolanyHead of Integrated Marketing

Yum brandsAmy SherwoodVice-President, Public Relations and Consumer Affairs

sprintDoug DuvallVice-President, Corporate Communications

Cardinal HealthcareJill LaNouetteVice-President, Public Affairs

Mcdonald’sHeather OldaniHead of US Communications

nestleDoug HawkinsVice-President, Public Affairs & Policy (Nutrition)

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