CMO COUNCIL ADVOCATES BETTER USE OF DATA
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1 CMO COUNCIL ADVOCATES BETTER USE OF DATA at demo traction boston 2015
2 CMO COUNCIL ADVOCATES BETTER USE OF DATA AT DEMO TRACTION 2015 Speakers Call for Integrated, Data-Driven Marketing Strategies That Use Insight to Engage Customers in More Relevant Ways Attendees at IDG s DEMO Traction event in Boston heard from the CMO Council and other experts that more effective use of unified data, analytics and new channels of engagement are critical for marketing success. Specifically, speakers challenged CMOs to apply new digital solutions to deliver more simplified and personalized experiences for their customers. Research unveiled at the 2015 event described a brave new world for chief marketers in which digital marketing will consume more than half of marketing budgets for next year. It was also noted by IDG that some $32 billion is now spent by marketers on new technology acquisitions, much of which is done outside of the CIO s office. Having previously hosted the launch of iconic products from companies like VMware, E-Trade and Netscape, IDG s DEMO Traction event now in its 25th year and produced in seven countries focused heavily on new digital marketing technologies that are gaining traction in the market. Presented in partnership with the CMO Council and CIO Council, the event directly connected 26 enterprise startups deemed to be on the cusp of significant growth with tech buyers and specifiers at enterprise organizations. With some 3,000 marketing technology applications clamoring for the attention of CMOs, the event served as a key filtering mechanism for CMOs to evaluate inventive, new marketing technology innovations for their campaigns. A lot of the problem we face has to do with the use of the data. Marketers are very good on the creative and branding side, as well as in road-mapping and segmenting their audiences. But they have yet to come to grips with how to use their data. But the pattern that emerged from both speakers and presenting entrepreneurs suggested that CMOs are largely seeking the same basic value-adds as their target consumers solutions that are simpler, faster, more digitally integrated, and cost-effective to deploy and maintain. Erick Schonfeld, Executive Producer for DEMO Traction, told hundreds of C-suite delegates that marketers alone would spend $32 billion on technology next year, adding that a lot of that will be in CRM sales and marketing automation, but increasingly you re spending on data analytics and engagement technologies that give you actual insight. Copyright CMO Council. All Rights Reserved
3 Marketers alone would spend $32 billion He said that enterprises would spend on technology next year a lot of that will more than $100 billion on SaaS be in CRM sales and marketing automation, technologies in 2016 an increase but increasingly you re spending on data of 22 percent. analytics and engagement technologies Sharing the stage with the Global that give you actual insight. Digital Officer for McDonald s and the Erick Schonfeld Marketing Director for GE, Donovan Neale-May Executive Director of the CMO Council explained, We ve done a number of studies, and similarly to reports from Forbes and others, we ve found that organizations that are leaders in data-driven marketing report far higher levels of customer engagement and market growth than their laggard counterparts. However, a lot of the problem we face has to do with the use of the data. Marketers are very good on the creative and branding side, as well as in road-mapping and segmenting their audiences. But they have yet to come to grips with how to use their data. One of our biggest initiatives focuses on how to integrate and align the CMO and the CIO, as well as the chief data officer and chief experience officer all new titles which should be under the remit of the CMO. CMO Council research presented at DEMO Traction revealed that only 30 percent of a sample of the 9,000-plus members of CMO Council believed they excelled at managing the data explosion; 50 percent reported that centralizing fragmented data was their number-one challenge; and only 29 percent said they were good at using data to create a more personalized experiences for customers. We estimate that there are around 3,000 marketing-related applications out there a number that is growing daily and all of them create new sources of data, Neale-May said. What do you do with it? You need marketing middleware to tie it all together, in addition to insights and analytics to get actionable and valuable direction for decision support. I think people in general want simplification. If you think all the profound disruptions in the market, the commonality involves taking out excessive costs or burdens or headaches, and replacing that with simpler, faster, more relevant; more affordable. The competitive edge, he said, would be found in looking to those CMOs who orient their messaging and engagement in such a way that customers feel invited; feel they are being treated preferentially; and believe their needs and desires are understood and are being met. Copyright CMO Council. All Rights Reserved
4 People are inundated with irrelevant offers, and merchants themselves are overwhelmed with how to configure deals that are actually going to be profitable to them, he said. I think people in general want simplification. If you think about all of the profound disruptions in the market, the commonality involves taking out excessive costs or burdens and replacing them with options that are simpler, faster, more relevant and more affordable. In response to the challenge of globalized markets and localized needs, a strong theme emerging from DEMO Traction was that both personalization and scale were not only both achievable for CMOs, but also an increasingly important requirement. For instance, McDonald s Global Digital Officer, Atif Rafiq, told attendees that the restaurant giant was adopting digital tools for local engagement on a global scale but was tailoring down its efforts to individual outlets. Touchpoints with customers are multiplying constantly, which means yet more data. From this whole world of data, we are all focused one thing: a 360-degree view of the customer from a marketing intelligence standpoint. Neale-May cited also Catalina a personalized digital media company that collects and analyzes more than 350 million weekly transactions from some 30,000 retail outlets as a best-practice organization in this area. Catalina uses this data to serve personalized promotional offers based on individual purchasing patterns and household consumption. Taking insights far beyond demographic targeting, the company has gained key insights into the evolving preferences of more than 80 percent of all US shoppers and uses a data warehouse to process hundreds of analysis reports daily. Their behavior-based messaging via digital platforms closely echoes the CMO Council s bestpractice findings in the marketplace in that Catalina s strategy not only reduces irritation and confusion for customers by eliminating irrelevant messaging, but also targets its tailored messaging when and where it will have optimum impact. The real challenge for marketers is predicting what people are pre-disposed to and identifying what their preferences are, so we need tools to help us understand behavioral and transactional data, Neale-May said. Meanwhile, touchpoints with customers are multiplying constantly, which means yet more data. From this whole world of data, we are all focused one thing: a 360- degree view of the customer from a marketing intelligence standpoint, and my view is that what we re seeing is what I call the advent of direct relationship disruption. Copyright CMO Council. All Rights Reserved
5 Marketing technology companies who present some solutions to the challenges set out by Neale-May included: Docurated: A sales and marketing acceleration platform that automatically sources the optimal marketing content from any data source to help sales reps tell the story that wins the deal. The technology is already being used by companies like Del Monte Foods and Gainsight. Their value proposition is based on game-changing simplicity, with the platform being accessible from any existing system and supporting all major content repositories. Shoppable: The leader in universal checkout technology, this platform is designed to allow customers to buy any product they encounter online far from the retailer s website and virtually anywhere that it is referenced. Crystallizing CMO Council s call to make the customer experience easier, simpler and faster, Shoppable s buy button system allows customers to make their purchase in just three mouse clicks from where they see it referenced, and it also allows consumers to shop from multiple retailers with 15 million available products to date within a single checkout experience. Emotient Analytics: Recognizing that emotion drives consumer spending but also that data on emotional drivers is often inadequate, Emotient is helping CMOs measure the market performance of their products and campaigns through hyper-advanced facial expression analysis technology. Voted a DEMO Traction Enterprise Champion at the Boston event, the cutting-edge company has harnessed the genius of academic field leaders and the power of neural net technology to deliver 95 percent or greater accuracy rates to marketers on customer responses. Neale-May s presentation to the DEMO Traction crowd drew on research including the CMO Council study entitled Integrate to Accelerate Digital Marketing Effectiveness, in which only 9 percent of more than 200 global marketers surveyed said they had a highly evolved digital marketing model with a clear path of evolution. This compares to 36 percent who reported a random embrace of marketing point solutions that are not well integrated or unified. Reflecting the highest cohort in the survey, 62 percent of respondents indicated that customer data integration, analytics and personalization of market interactions represented the digital marketing processes and functions with the most appeal. CMOs clearly have an enlightened vision for the future. In working to identify best practices in the aggregation and analysis of data, as well as the effective application of the insights derived from it, marketers will be able to provide the types of experiences that help them develop and maintain loyal customer relationships. And based on the insights and new developments in data and analytics presented at DEMO Traction, the road ahead for marketing looks promising. Copyright CMO Council. All Rights Reserved
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