Turbulent Times for the CMO. GfM Marketing-Trend-Conference March 25th, 2014
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1 Turbulent Times for the CMO GfM Marketing-Trend-Conference March 25th, 2014
2 Turbulent Times for the CMO How we help CMOs to master their turbulences Accenture Interactive CMO perceptions Turbulence Triangle The journey to seamless customer experience Digital Transformation Getting your marketing organization in shape Future Marketing Operations Copyright 2014 Accenture. All rights reserved.
3 Your Accenture Team today Rainer Balensiefer Lead for Accenture Interactive in Austria, Germany and Switzerland Tel: Thomas Ruck Lead for Accenture Interactive in Switzerland Tel: Copyright Accenture. All rights All rights reserved. reserved. 3
4 Welcome to Accenture Interactive! Click for Video Copyright Accenture. All rights All rights reserved. reserved. 4
5 Accenture Interactive is the leading digital transformation partner globally global service design agency Digital = 23,000+ Accenture Interactive 5,000+ interactive marketing production services covers all marketing topics from strategy to implementation delivers results at scale using the right blend of local, offshore and near shore capabilities digital experiences creative, strategic and technical solutions Copyright Accenture. All rights All rights reserved. reserved. 5
6 experiencing the turbulences of CMOs live every day in decision-making for digital paths. Multi- Digital Channel CX Customers Digital & Channels Social Markets Marketing Direct2Consumer E- & M-Commerce External Focus Omni- Channel CX Digital Marketing Digital Transformation Digital Business Digital Operations? Internal Focus Processes & Technology Digital Enterprise Smart Grid Intelligent Pipelines Digital Plants Industry 4.0 Copyright Accenture. All rights All rights reserved. reserved. 6
7 Turbulent Times for the CMO Turbulence Triangle Accenture Interactive Digital Transformation Future Marketing Operations Copyright 2014 Accenture. All rights reserved.
8 Marketing turbulences for CMOs revolve around a triangle of challenges Nearly 4 in 10 CMOs feel unprepared 40% of CMOs see flat or declining market share Analytics Amounts of data continue to increase searching for real insight Channels Customers Consumer behaviors continue to change searching for relevance Channels continue to diversify searching for the right mix Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights
9 Customer Relevance = Segment of 10⁹ / Seamless experience CMO view on customers: 8th RELEVANCE 69% expectation importance 65% of CMOs agree on strategy impact If relevance has such a strong impact, how come digital is perceived as low in importance as org. orientation? Consumer Click for Video seen by CMOs as one of their lowest performing levers? (7%) Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights
10 Seamless experience as existing expectation Keeping up with digital diversification speed In-person contact remains Nr. 1 in extreme importance for strategy reaching customers with 82%, but: Corporate Website comes in 2 nd with 81%! 8 out of 19 channels named are digital! Channel $ Only 13% see their performance as leading 68% of CMOs consider digital channels important Ask Tesco Click for Video 10% more Swiss use a mobile or tablet than people in other markets Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights 2013; Mobile Web Watch; Mobility Insights Report
11 Big data, bigger data = digital analytics for personalization & the quest to ROI Big data 1 in 5 CMOs below average in quantifying return on investment Analytics 26% very poor poor understanding of traditional ROI 15% in digital ACN Tech-Vision 14 = Data Supply Chain Use digital to break-down data barriers & gain relevance 1/3 of companies will invest in Web Analytics 1/5 are seeking immediate analytics employee support Etc. Digital Analytics Offline Campaigns Marketing ROI Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights 2013; econsultancy Marketing Budgets
12 Within Accenture s technology vision, data supply chains play a key role for success Data Services Platform Supply Chain Integration Data velocity as key for users Breaking down corporate silos ACN Tech-Vision 14 = Data Supply Chain We will move from 4 today to 40 trillion GB in % of companies will not be able to take advantage in 2015! Why Combining internal & external sources From maintenance to flight schedule Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights 2013; Gartner Research; IDC Research 12
13 Internal deficiencies create further turbulence: The CMO-CIO Disconnect CMO view on barriers to success Disconnections to improvement Inefficient business practices 19,4% Lack of funding/other resources 16,8% 36% of CMOs say IT deliverables fall short of expectations. Lack of critical technology/tools Lack of integration with other business functions 15,6% 13,9% 46% of CIOs say marketing does not provide an adequate level of business requirements. Lack the required skills 9,8% IT doesn t make the marketing function a priority. Access to the customer data 5,1% Marketing bypasses IT to work directly with vendors. Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights 2013, CMO-CIO Insights
14 Current turbulences have to be addressed in digital transformation what/how exactly? 7 in 10 CMOs say that marketing will change fundamentally in the next five years Change the marketing operating model Get the right set of partners 53% of high-growth companies rely on organizational transformationto meet their marketing goals Partners that can assist with execution, delivery and organizational transformation Build new skills internally One-quarter of CMOs dedicating 41-60% of employees to analytics and digital marketing Drive digital orientation throughout the enterprise 16% of CMOs face performance barriers when working across the organization From CMO view to practice: 1. How did we get here? 2. What can we do today? Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights
15 Turbulent Times for the CMO Turbulence Triangle Accenture Interactive Digital Transformation Future Marketing Operations Copyright 2014 Accenture. All rights reserved.
16 The Digital Society existed before Back then I browse the internet for information and some products. Retail Sales E-Commerce Rest of Retail products were packs I order some things online but tangibility remains key. AD Revenue Paper Digital News and only for you. I talk about what I buy, but I own it physically. Music Delivery Digital CD Copyright Accenture. All rights All rights reserved. reserved. 16
17 but digital consumption is on today! New consumption expectations I receive recommendations based on ME, brands reach out to ME when I need them! embrace omni-availability I use products across platforms. Delivery is where I need it in the format I want! ANYONE Segment of One ANYWHERE Accessibility ANYTIME Always on and shared value-creation! I consume with others, devices & data feed information to friends, family and beyond! DIGITAL CONVERGENCE One face of & to the consumer Copyright Accenture. All rights All rights reserved. reserved. 17
18 New ways to consume demand a switch in business models turbulence as opportunity Convergence as lever! BRAND 2013 marked a new level of digital consumption BRAND BRAND BRAND Disruptive impulse Coming off age Copyright Accenture. All rights All rights reserved. reserved. 18
19 An example close to home: Digital transformation at Nespresso Deliver an omni-channel solution to reach seamless customer experience and business processes for B2B & B2C! Omni-channel solution with key ecommerce players Improvement of cross-selling and customer satisfaction Harmonized processes and capabilities Flexible and scalable system set-up Global rollout, 20 languages, /day orders, 48h delivery Copyright Accenture. All rights All rights reserved. reserved. 19
20 Requirements to concept and implemented solution took seamless experience to heart Transformation Success Flavors Clear customer lifecycle definition Integration of flexible content management for brand assets Leveraging Data supply chain for B2B and B2C sales Engaging only based on insight Targeted offers to members without pressure Social & personal platform reach Click for Video Omnichannel shopping structure Seamless internal processes for seamless experience Integration of ERP Focus on the value-added processes, leverage out of the box processes for efficiency Highest after-& sales service Inventory across channels & real time delivery One flavor for each turbulence or disconnect 360 customer data analytics Single brand identity in all channels Copyright Accenture. All rights All rights reserved. reserved. 20
21 Turbulent Times for the CMO Turbulence Triangle Accenture Interactive Digital Transformation Future Marketing Operations Copyright 2014 Accenture. All rights reserved.
22 Tackling the turbulences will require a mix of effective partnering & internal development of external partners weak on execution and delivery 64% of external partners don t help transform the marketing organization 56% Low-growth company digital partners ranking: 1. Specialized Agency 2. Digital Agency 3. Ad Agency Med-growth company digital partners ranking: 1. Specialized Agency 2. Ad Agency 3. Marketing Full Services High-growth company digital partners ranking: 1. Marketing Full Services 2. Specialized Agency 3. Digital Agency Seamless Experience = Seamless Transformation! Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights
23 With the right partner, CMOs can combine internal development with speed & scale CMO Improvement Foci: 1. New solutions 2. Capability Development 3. Hiring new profiles Roles within capabilities in the digital domain require increasing skill sets. Flexibility will require to cover them in intelligently designed transformations. Tackling the turbulences in new solution transformations with end-toend-partners will shape external and internal growth. Let s have a look Copyright Accenture. All rights All rights reserved. reserved. Sources: CMO Insights
24 Hence, UBS chooses Accenture for a customdesigned social media monitoring capability Brand reputation risk management has to adapt to the digital nature of today s customer word-of-mouth - Continuous listening, analysis and measurement of social comments on a global scale as challenge End-to-end transformation Global delivery! Conceptual Design and Pilot Global Operating Model Design Shared Service Definition Shared Service Operations The result for the bank: High-frequency monitoring of blogs, forums, comments, FB, etc. Service provision to 9 markets in 6 languages for 3 years Global operating model with near-/offshore delivery Putting the why before the act in social media for UBS! Copyright Accenture. All rights All rights reserved. reserved. 24
25 Global CMO survey of 2013 Structured insights into challenges of the CMO today and in the future Break-down of ways to address the turbulences Find it here Study between marketing and technology leaders in 2013 Overview of critical interfaces Ways to enhance collaboration and seek a joint success Find it here Complete vision of Accenture on technological developments in 2014 and beyond Detailed outlines of developments and new trends to look out for Our take on the future Find it here Reach out! to our teams, our websites and other content platforms to get further insight studies visit our innovation centers discuss your questions Copyright Accenture. All rights All rights reserved. reserved. 25
26 Click for Video THANK YOU! Copyright Accenture. All rights All rights reserved. reserved. 26
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