the chief marketing technologist

© 2012 IBM Corporation

October 2012

The New Profession on a Smarter Planet:Chief Marketing Technologist

Virginia SharmaVice President, Marketing and CommunicationsIBM India/South Asia

Path to Marketing Transformation


Police chiefs fight crime with data

Marketers predict individual behaviors

Farmers track livestock in real time

Doctors deliver personalized prescriptions

Retailers foresee emerging shopping trends

Chief Supply Chain Officers change assortments in seconds

Smarter Planet is more relevant than ever…and more REAL



InstrumentedWe are seeing the infusion of information deeper into the systems and processes we depend on.

InterconnectedThese can be made to communicate with each other in meaningful ways, creating intentional systems of systems.

IntelligentAs these systems grow, intersect and overlap, new kinds of interactions, insights and ways of working emerge.

The Power and Potential of the three I’s — continues to evolve

Organizations keep pushing the boundaries of what can be instrumented, interconnected and made intelligent—and how.



As companies and industries become smarter, so are the professions and functions that support them.

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Organizations around the world are turning “too much data” into better decisions.

The walls between companies and customers are disappearing.


© 2012 IBM Corporation4

The role of the CMO is changing—from leading marketing to driving growth and transformation across the business.

79%Expect high/very high level of complexity over 5 years

49%Feel prepared for expected complexity

Expected level of complexity and preparedness to handle itPercent of CMOs responding

Four core challenges• Social media• Data explosion• Growth of channel and device choices• Shifting consumer demographics

31%complexitygap

Source: 2011 IBM Global CMO Study



The timeless responsibilities of marketers everywhere…

Protecting the brand promise.

Defining what to market and how to market it.

Knowing the customer.

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…are evolving into three imperatives for a new profession.

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.



The New Profession: The Chief Marketing Technologist

In this transformation of the marketing function, the transformation of technology and the way it’s used is critical.



The Shift

By 2017 the chief marketing officer will control more technology spending than a company's CIO

• Companies spent up to $25 billion worldwide on marketing software last year, up from about $20 billion the previous year. As a comparison, overall corporate software expenditures totaled $115 billion

• ~ a third of marketing department expense budgets is devoted to purchases such as systems to manage customer relationships, predict customer behavior, run online storefronts

$1.5 trillionAmount spent on marketing and communications in 2011

7-8%Growth of marketing budgets in next 12 months, 2-3X that of IT budgets

$148 billionIT-related spend owned / influenced by CMOs in 2012

60%Growth of spend on marketing analytics in next three years



Chief Marketing Technologists paint a predictive picture of each customer by harnessing data on a massive scale.

• Instruments all key touch points to gather the right data about each customer.

• Connects social media data, transaction data and other information to paint a more vivid picture of each customer.

• Runs the right analytics at the right time on the right customer to generate new ideas about whom to serve and how best to serve that person.

• Generates insights that are predictive, not just historical.

• Builds capabilities to do this on a massive scale.

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L’OCCITANE uses optimized customer segmentation to maximize value at every touch.

1,700%increase in conversation to sale

“By segmenting visitors based on behavior and tailoring email content accordingly, we are able to deliver highly personalized messages that generate much higher open rates, conversion rates and revenue per email. Instead of trying to second-guess our customers, we can present them with offers that we know will interest them.”—L’OCCITANE en Provence



Chief Marketing Technologists design the full customer journey, knowing what clients want before they do and creating value at every touch.

• Designs tailored experiences that connect the company, the channels and like-minded customers.

• Creates and automates and automates a system of engagement to deliver these personal interactions—at a massive scale.

• Uses analytics to guide the development of tomorrow’s portfolio.

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wehkamp.nl created a system of engagement that offers online shoppers more relevant experiences.

271%higher sales-per-send ratio for marketing emails

“Everyone knows that targeted marketing is how we should be interacting with our customers, but so few online retailers are doing it yet. With this new system, we can track a shopper’s interest in real time and deliver personalized discounts and incentives.”—wehkamp.nl



Chief Marketing Technologists defines a promise—then build the system to live it authentically through the brand and across the culture.

• Develops an acute understanding of its reputation by actively listening and engaging in social media.

• Systematically closes the gaps between a company’s unique character and its reality — in all critical interactions.

• Champions tools that connect the organization, and platforms that enable employees to delight customers.

• Ensures that systems are in place to manage the risks of being a social business.

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BBVA ensures that its brand and its culture are authentically aligned by continually monitoring and assessing reputational risk.

100%increase in the notoriety of the brand in one year

“Knowing what our customers think about us is essential to implementing effective customer service strategies, new products and strategic goals.”—Banco Bilbao Vizcaya Argentaria



What does Success mean to a Chief Marketing Technologist

Improved customer value, loyalty and retention

5-15% increase typical

Higher online marketing ROI

15x-25x increase typical

Higher campaign ROI15-30% increase typical

Increased response rates

10-50% increase typical

More campaigns with the same resources2-5x increase typical

Reduced cycle time for marketing efforts40-80% reduction typical

Reduced marketing costs20-40% reduction typical

Lower customer acquisition costs25-75% reduction typical

More effectivemarketing

More efficient

marketing

From over 2,500 companies worldwide



@VirginiaSharmavirginiasharma.blogpost.com

Are you gearing up for the new Profession?

the chief marketing technologist

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