Marketing departments in many companies are currently losing their importance and budgets. The world of commerce and marketing is truly in great turbulence right now.. Tornado really. The change is like force of nature and it is so fierce, because several megatrends are colliding simultaneously:
- Customer Experience design and metrics mania (NPS)
- Corporate Identity as a holistic concept, not just brandbook but experience
- Integration of service & marketing = Business Process Design & LEAN process requirement for efficiency
- Design thinking breakout for innovation and business model generation
- CRM and automation capabilities increase: Increase CIO’s, Sales director’s and business management’s involvement in marketing
- Social brand and open dialogue with customers (rating and feedback is ever present issue + the rise of Open Innovation as part of customer relationships)
- Revenue Performance Management requirement and Analytics
- Decline in traditional marketing & Own media’s tremendous influence increase
- Organisational changes – Torn Silo walls makes marketing everyone’s business > “We are all marketeers now” said McKinsey’s article
- Requirement to deliver better results with lower budgets
What I’ve heard and observed is, that business management has already got used to thinking in terms of processes due to ERP and CRM technology development and implementation. They are also very familiar with cost/performance analysis and practical implementation to processes. It is easier for them to think about Customer Journey and CX design pragmatically and apply the ideas in practice. Sadly, CMO’s in many companies are strangers to such consideration and thinking. Branding used to be about doing things according to the brand book and design guidelines. Now brand is both an idea about something great that stands for something and something that you can experience with all your senses. The Corporate brand identity is more about such holistic experience than images, jingle’s or tone of voice. They are still important, but the other factors are increasing their influence exponentially.
This community was created because we wanted CMO’s to take advantage of the turbulence that would enable major increase in their influence and improve productivity in organisations. Now it feels like marketing departments influence and capacity to deliver results is dividing in two and this change is escalating as two roadmaps: a) Marketing becomes the driving force for corporate business development (= CMO’s take the driver’s seat leading the change) or b) Marketing becomes second grade support organisation without power (= CMO’s continue their work as they have done before). I wish more companies and CMO’s would choose the roadmap A.
I participated in DMA event in 2004. There Nectar’s (Loyalty Management UK’s) CEO Robert Giergink presented his case about coalition loyalty management program and their results for the first couple of years. His co-speaker was a University Professor whose name I can’t recall anymore, but he said that loyalty programs might represent the future of Marketing in general. I was deeply impressed, enlightened really, about Nectar’s case and find it still very inspiring. In my opinion that professor hit the point exactly. Currently all marketing is about Customer Journey and Experience management, individualized dialogue and event based, triggered and service oriented communications. That is exactly what loyalty programs are supposed to do. However, until recently such approach was ridiculously expensive or impossible. Right now, the technology is very cost efficient and the ROI capacity is absolutely amazing. While this is true with all recognized customers it’s now becoming possible also for customer’s that have left no identification about them.
Naturally the online revolution and social media storm have made everything above even more important and possible and that is why these things have become management imperatives. I’m looking at the CMO’s position in the light of generic Must Win Battles shared by many companies:
- Best customer experience (Goals: loyalty, LTV, cross & upsell, high NPS)
- Continuous and cost-efficient new business (Goals: new customers, demand generation and stronger conversion)
BOTTOM LINE STRENGHT:
- Lean and effective operations and processes – strong bottom line (Goals: highly productive organisation capable of delivering superb customer experience at comparatively low expences by using new technologies, self service and help, Social customer service, online environments and automation)
- Creation of winning corporate culture: Inspirational and very satisfying workplace capable of understanding and driving development and change. Recognition as very prominent employer for hungry and innovative new talent, Topline growth energize the company’s employees and partners focusing their minds on opportunities, innovation and growth
Such MWB considerations should become the heart of marketing strategy development. I’m currently involved in such cases and I’m witnessing the great change and impact such consideration has on the organisations. Creation of new and exploration of unknown are naturally inspiring and when they also deliver financially measurable success it is certainly worthy of your undivided attention.
Word of encouragement: Very few people are truly experienced in this game. Go ahead and learn by doing. I can promise you it is great!
Also check out: