Making Marketing Thrive In The Age Of The Customer By Sheryl Pattek

Make Marketing Thrive In

The Age Of The Customer

Sheryl Pattek, Vice President, Principal Analyst

Serving Chief Marketing Officers

Twitter: @sherylpattek

Source: Marcio Kenobi Blog (http://marciokenobi.wordpress.com/), The NYC Chapter of the American Guild of Organists

(http://www.nycago.org/), and BuzzFeed (http://www.buzzfeed.com/)

Source: Alliance Technologies (http://www.alliancetechnologiesllc.com/)

© 2014 Forrester Research, Inc. Reproduction Prohibited 5

Agenda

› The world is changing: get customer obsessed

› What it means

› Evolving marketing to respond

› Recommendations


Agenda


› What it means


› Recommendations

The world of marketing channels today

Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report

The mobile mind shift The expectation that any

desired information or service

is available, on any appropriate

device, in context, at your

moment of need

At the same time, customers expect new

levels of mobile engagement

Empowered customers now choose their route to you

Information scarcity

Attention abundance

Attention fatigue

Information overload


Agenda


› What it means


› Recommendations


A 20-year business cycle in which the most successful enterprises will

reinvent themselves to systematically understand and serve increasingly

powerful customers

We’ve entered the age of the customer

Transform

the customer

experience

Embrace

the mobile

mind shift

Become

a digital

disruptor

Age of the

Customer

Build value around the customer,

not the channel or product

Turn big data

into business

insights


Transform the customer experience ALIGN THE BRAND AND CUSTOMER EXPERIENCE

Our view: The brand experience and the

customer experience must tell the same

story.


Become a digital disruptor RETHINK THE FOUNDATION OF THE BUSINESS AND ITS LINK TO CUSTOMERS

Our view: Digital businesses open the doors to

new business models and partnerships.

Disruption isn’t new . . .

. . . but mobile makes it matter more than ever today.


Embrace the mobile mind shift

Our view: Mobile represents a big change in the way consumer

expectations are set.

APPEAL TO THE MOBILE-FIRST INDIVIDUAL

Simplicity

Context

Immediacy

Convenience


Mobile is the new face of engagement.

› Every interaction a customer has

with your brand is a customer

experience

› Winning in the mobile moments

throughout the journey will be key

to elevating your brand and your

customer experience


Turn big data into business insights MINE THE INSIGHTS THAT DRIVE BUSINESS SUCCESS

Our view: Data can unlock the value that companies need to prosper and

enhance customer engagement.

Starbuck’s digs deep

into customer behavior

to increase customer

wallet share.


Agenda


› What it means


› Recommendations


Become customer obsessed:

A customer-obsessed enterprise focuses its

strategy, its energy, and its budget on

processes that enhance knowledge of and

engagement with customers and prioritizes

these over maintaining traditional competitive

barriers.

Use the customer life cycle as the

blueprint for customer obsession

The enterprise’s view of

the phases a customer

passes through in the

course of an ongoing

relationship with a

company

© 2014 Forrester Research, Inc. Reproduction Prohibited

Customers’ needs get defined throughout the customer life cycle

May 2014 “Rethink Marketing In The Customer’s Context”


The journey to customer obsession requires focus on three key areas

Align the organization to the customer

Build the right marketing technology

infrastructure

#1

#2

Collaborate with the CIO’s team #3

Overall organization performance must now

be aligned to the customer


Marketing organizational must shift from channel-centric to customer centric

58% of CMOs say their current org structure hinders their ability to adapt to today's marketing environment.

Source: Q3 2013 Forrester/ Heidrick & Struggles Evolved CMO Global Online Survey

Adopt a marketing operating system approach instead

Best practices leading the pact

Connect and differentiate brand

experiences.

Deliver insight-driven customer

engagement across the full life cycle.

Marketing needs technology and

data insights to run.

27


CMOs believe technology has business impact

Source: Q3 2013 Forrester/ Heidrick & Struggles Evolved CMO Global Online Survey

“How important do you believe marketing technology will be in delivering your marketing

objectives” (please select one response)

0%

23%

32%

45%

It should play a minimal role

It plays a role as part of abroader marketing mix

It is critical to creatingactionable insights from big

data

It is essential to businessgrowth and customer

engagement

Base: 214 Global Marketing Leaders

CMOs do

think tech is

necessary to

meet their

objectives.

It’s time to align technology investments to support the full customer life cycle

July 2014 “Top Technologies For Your BT Agenda”


Your marketing technology stack must engage customers in the right context

June 2014 “Let’s Revisit The Enterprise Marketing Software Landscape (Again)”


Data is the new oil…it must serve as the foundation for today’s marketing engines


End-to-end engagement measures must be optimized and acted on

March 2014 “Define New Metrics For Digital Business Success”



Source: Q3 2013 Forrester/Heidrick & Struggles Evolved CMO Global Online Survey

But, a single view of the customer is not yet commonplace

Realize that competitiveadvantage comesfrom a singular focuson the customer

73%They have accessto some systems,but not all of themare synchronized

50%

Everyone has the samesynchronized view ofthe customer

18%


CMOs recognize that working with the CIO is important

Base: 214 global marketing leaders; Source: Q3 2013 Forrester/Heidrick & Struggles Evolved CMO Global Online

*Base: 191 global marketing leaders; *Source: Q3 2011 Forrester/Heidrick & Struggles Evolved CMO Global Online

Survey

Percent of CMOs who value theCIO as important has risen

from 30% in 2011* to 51% in 2013




And, they see the CIO as a partner for meeting goals

41%Share a common vision of howmarketing and IT should worktogether

Partner, when procuringmarketing technology

Agree the CIO is astrategic partner in meetingcorporate goals

29%

62%

(multiple responses accepted)




29%

62%





29%

62%


But, marketers still vie for enterprise technology dollars


And, surprisingly, CMOs are still not that involved in marketing technology decisions



View marketing technologyas essential

Attend vendor presentations,evaluate different technology providers, and

help choose final partners or potential partners

Lead a cross-functionalteam from IT and marketing to identify keytechnology needs and develop a process

for selecting vendors

45%

33%

25%






45%

33%

25%






45%

33%

25%


Agenda


› What it means

› Evolve your business to respond

› Embrace the mobile mind shift

› Recommendations


View the age of the customer as an opportunity to lead

Our view: Marketing represents the customer view of the

company. This is the time to lead the organization, not follow it.

To succeed, you must:

• Recognize the impact of technology and data on the

fundamentals of their customers and their business

• Take charge of the strategies that embrace these

changes

• Lead the organization on the journey to customer

obsession


Build your technology strategy to achieve three key objectives

› Develop a rich understanding of customer

behavior by using data and analytics

› Design exceptional customer experiences at

each touchpoint

› Capitalize on the right technology to effectively

and efficiently provide and then understand

experiences

41

When companies internalize

technology, they find

disruptive new things to do”

“When companies adopt

technology, they do old

things in new ways;

Strategy

• Digital marketing

• Vision

• Buyer’s needs

• CIO alignment

Process

• Process documented

• Buyer journey maps

• Consistent experience

Technology

• Understanding

• Bias/approach

• Access to expertise

Measurement

• KPI’s in place

• Measure ROI

• Dashboards

Asses your organization’s readiness with Forrester’s marketing technology skill assessment


Get customer-obsessed!

› The customer has changed. Forever. Get used to higher expectations from them.

› The age of the customer will force you to rethink how you win, serve, and retain these empowered customers.

› Recognize the impact of technology on the fundamentals of your customers and your business

› As marketing technology leaders, you must champion customer obsession throughout the organization.


What this means to you

› You are positioned to help

CMOs build the technology

strategy necessary to

effectively engage customers

› And…you have the skills and

expertise to light the path to

customer obsession

› It’s up to you to capitalize on

the leadership opportunity

ahead

Thank you

Sheryl Pattek

+1 212.857.0707

[email protected]

Twitter: @sherylpattek

Blog: blogs.forrester.com/sheryl_pattek

mailto:[email protected]

Making Marketing Thrive In The Age Of The Customer By Sheryl Pattek

Marketing

customer experience

forrester research

customer obsession

customer centric

customer behavior

customer life cycle

customerobsessed enterprise

customer build value