FROM MAD MEN TO MONEYBALL: HOW LEADING CHIEF MARKETING OFFICERS ARE

DIFFERENTIATING AND CAPTIVATING THE CONNECTED CONSUMER

Jon Busman@namsub

CMO Initiative Global Lead29th April 2014

The timeless responsibilities of our marketing profession

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

In February of 2012, The New York Times published an article that gave us a glimpse of the future practice of marketing.

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

2012: Three imperatives of a new profession

Leading marketing practices deliver leading company results

1.8x Gross Profit

3.4x Net Income

2.4x Stock Price

*SOURCE: The State of Marketing 2013: IBM’s Global Survey of Marketers, IBM Center for Applied Insights

The Top 20%

In the past three years, CMOs have made surprisingly little progress towards implementing key digital marketing strategy components 

8

Source: Question CMO1–To what extent have you activated the following digital strategy components within your enterprise?

Activation of digital strategy components

Networked workforce with skills aligned to business opportunities

Integrated customer touchpoints across physical and digital channels

Customer collaboration using social networks

Large extent Somewhat

Advanced analytics to capture customer insight across all touchpoints

Digitally enabled supply chain

20% 52%28%

46%16% 38%

51%37%13%

59%13% 29%

11% 30% 59%

Limited extent

Prepared Underprepared

The rate of change seems faster than many can cope with

Source: Question CMO4–How prepared are you to address the following market factors (data explosion and social media)?

Preparedness for the data explosion

That said, CMOs expect to accelerate the introduction of digital marketing technologies over the next three to five years

10

Source: Question CMO7–What is your plan around the usage of the following technologies over the next 3 to 5 years?

Intended use of digital technologies (3 to 5 years)

Mobile applications

Content management

Search engine optimization

46%47%

63%79%

62%

80%

73%81%

68%

87%

81%89%

80%

94%

Customer relationship management

Collaboration tools

Reputation management

Email marketing

2013 2011

66%94%

Advanced (predictive) analytics

Three distinct profiles emerged from our analysis, with one making significantly more progress in preparing for a digital marketing future

11

30%

37%

33%

CMOprofiles

Traditionalists

Social Strategists

Digital Pacesetters

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Timeless 2012

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Timeless 2012 2014

Know each customer & moment in context

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Timeless 2012 2014

Deliver personally relevant and rewarding experiences at every touch

Know each customer & moment in context

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Timeless 2012 2014

Co-create authentic brand experiences with customers,employees, and partners

Deliver personally relevant and rewarding experiences at every touch

Know each customer & moment in context

Know each customer & moment in context

2014: Evolving Shifts for the CMO

90%

32%

of consumers expectpersonalization

only

claim to be highlyeffective at engagingindividual customers

Source: IBM Institute for Business Value and Center for Applied Insights

© 2013 IBM Corporation19

Banco Itaú Argentina

Predictive customer context

Deliver personally relevant and rewarding experiences at every touch

2014: Evolving Shifts for the CMO

Co-create authentic brand experiences with customers, employees, and partners

2014: Evolving Shifts for the CMO

Lily Robinson – Age 3 ½Chris King – Age 27 1/3

of consumerstrust earned media

think socialwill improveforecasts

of B2B buyers put themost weight on what thepeople they know and trust say about companiesand products

Source: Nielsen Jan 2012; Aberdeen Mar 2012; Forrester Dec 2010

92%

77%

39% Maximizethe Moment

Bringing All Three Together

Co-create authentic brand experiences with customers, employees, and partners

Innovate and scale relevant and rewarding experiences

Know each customer in context

The three imperatives of a new marketing profession

IBM’s Own Marketing Transformation Began in 2010Thought Leadership Marketing Additions

• Insights from over 1,700 CMOs across 64 countries

• 3 key themes: empowered customerslasting connectionsmeasuring marketing ROI

• Unica (enterprise and cloud-based marketing software solutions): 2010

• Coremetrics (web analytics): 2010

• DemandTec (Price/Promo) 2012• Tealeaf Technologies (customer

experience analytics software): 2012

• Xtify (mobile experience): 2013• Watson (Cognitive computer):

2013

IBM’s first Global CMO Study released October 2011

Understand the Customer as an Individual and in Context

Innovate and Scale Rewarding Experiences

The CMO+CIO Leadership Exchange (Flagship events in NYC, Paris)

Local CMO & CMO+CIO Events(Toronto, New Delhi, Sydney, Tokyo, Parma, NYC, Chicago)

THINK Marketing Community(Exclusive online community for CMOs)

Co-create authentic brand experiences with customers, employees, and partners

• CMO Partner Community

• CMO Ambassador Program

• Current CMO Market News

• CMO Sales Enablement

Thank You and Let’s Continue the Conversation

@namsub #sugarcon

Co-create authentic brand experiences with customers, employees, and partners

Innovate and scale relevant and rewarding experiences

Know each customer in context