Gathering CMO-mentum

The responsibility of influence: Chief Marketing Officers and the analytics imperative

Meet the “new and improved” Chief Marketing Officer (CMO). As the rise of digital platforms has shrunk the world and enlarged markets, the CMO’s role has expanded.

Now that Marketing integrates a wider sphere of professionals than ever before (such as data scientists), CMOs can better quantify the function’s contribution to the bottom line…

75%No wonder of Canadian CMOs report their influence on organizational success has grown.

However…

With greater influence comes greater responsibility – and higher expectations of Marketing:

… Expectations are up = CMO me the money

80% of CMOs and marketing leaders feel the pressure to do more, more, more.

The evolution of digitally connected consumers has turned traditional relationship and business models upside down. The collection and analysis of increasing volumes of data is enabling an unprecedented degree of insight into customers’ preferences and habits, allowing businesses to provide the personalized experience customers expect.

At the same time, customers are evolving

This all has major implications for marketers.

Luckily, big data can help big time

CMOs certainly recognize the value of the increasing amounts of data they’ve accumulated. It holds the information to acquire new customers, cement loyalty and build corporate brand. Two-thirds of firms use analytics some or all of the time to make key marketing decisions (22% all of the time and 44% some of the time).

There’s only one small problem …

71%

…taking full advantage of new data analytics capabilities – mining the gold out of the mountain of data – is no easy feat. In fact, at. In fact,

of CMOs say harnessing data analytics is the most important challenge for the marketing function.

76%

and only 49%

of CMOs agree their organization could improve a great deal in their use of marketing analytics. They don’t use them as much as they’d like,

say they have staff with the skills to make effective use of analytics.

There’s much work to be done

And yet, 68% produce their consumer data and insights in-house.

As pressure to transform their function and acquire new skillsets mounts,

66%More than 40%

of CMOs think agencies can help them address their internal skills and resource gaps.

plan to rely more heavily on outside partners for analytical and other support in the coming years.

It’s a paradox of plenty

Unfortunately, despite agreeing that agencies are delivering well in many areas that are important to them, CMOs rate agencies most poorly in the ability to transform data analytics into actionable insight.

Everyone’s feeling the crunch

These radical changes are also causing other gaps to emerge between what CMOs expect and what agencies deliver.

Put another way…

…in the ever-evolving landscape, what’s important to firms and what agencies think is important to firms are no longer aligned.t. In fact,

The biggest gaps between expectations and delivery, in order of magnitude, are:

1. Knowledge of the client’s business 2. Being innovative3. Ability to transform data analytics

into insight 4. Ability to adapt to change5. Ability to deliver effective marketing

communications programst. In fact,

Fault lines

Opportunities for all…

For agencies, the opportunity and the challenge is clear: increase their own capacities, especially in analyzing data to produce practical insights for their clients.

For CMOs, the challenge is to create an ecosystem between in-house services and agencies that enhances their ability to exceed expectations and contribute to business success.

of CMOs agree that marketing looks far different than it did just half a decade ago. The repercussions have brought fundamental change both inside and outside the industry.

There’s just one question… In fact,

Great adaptions

89%

Who’s ready to work together to design and build bridges to this new marketing horizon?

Contact us to learn more about how CMOs can up their analytics game and continue to build influence.

Jennifer LeeNational Retail Leaderjenniferlee@deloitte.ca

Colleen AlbistonChief Marketing Officer calbiston@deloitte.ca

www.deloitte.ca

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