the 21st-century cmo how digital marketing is driving organization transformation

8/7/2019 The 21st-Century CMO How Digital Marketing is Driving Organization Transformation

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CQ5 Web Content Management from Adobe White Paper

Te 21st-century CMO: How digital marketing

is driving organization transformationaking full ownership of customer experience management

he explosive growth of digital marketing is driving a significant organizational transformation in which chief

marketing officers (CMOs) can redefine and elevate their role as never before. odays CMOs now have a broad

set of tools to impact and optimize customer experiences and ultimately drive revenue for their company. And

thanks to recent advances in closed-loop marketing, CMOs can measure and demonstrate the effectiveness of

their digital marketing effor ts in terms of customer acquisition, customer retention, and revenue growth.

his level of measurement is transforming the role of the CMO within organizations, paving the way for

21st-century CMOs whose tenure is on the rise as they become an indispensable asset to companies. In fact,

according to a 2010 Spencer Stuart survey, the average CMO tenure has risen nearly 50% in the past two years,from 23.2 months to over 34 months.

odays 21st-century CMOs are pursuing digital marketing across a large number of channels simultaneously.

As they do, they leverage the capabilities inherent in next-generation web content management (WCM)

platforms to strike a balance between two conflicting goals: to spread branding and messaging as widely as

possible, and to maintain control over their content as they deliver branding and experiences appropriate to

each unique channel.

his paper highlights the advances in closed-loop marketing that enable measurement and optimization of

digital marketing efforts. It also describes the challenges that CMOs face when pursuing digital marketing

strategies and how next-generation WCM solutions help CMOs overcome those challenges.

Demonstrating CMOs top-line contributionAs recently as 2008, the average CMO tenure was less than two years, due in large part to the inability of CMOs

to clearly identify and articulate marketings role and to prove its value to the organization (from Brandweek,

CMOs Are Staying in Jobs Longer, June 25, 2010). his shortcoming has helped fuel the popular belief that

marketing is not as critical to business operations as sales, engineering, or finance. In fact, the results of a

recent Forrester Research survey, Corporate Marketing: Does It Matter?, reveal that fewer than 50% of

marketers view themselves as responsible for increasing top-line growth or increasing profitability.

Table of contents

1: Demonstrating

CMOs top-line

contribution

2: Digital marketing:

Addressing and

re-addressingcustomers

3: Executing

organizational

transformation

4: WCM: Te hub for

multichannel pipe-

line growth

6: Summary: Customer

experience manage-ment is a must


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2CQ5 Web Content Management from Adobe White Paper

Marketersstillneedgreateralignmenttobusinessobjectives

But recent advances in closed-loop marketing are enabling CMOs to significantly raise the level of

understanding regarding the origin and quality of sales leads developed by marketing, providing organizations

with quantifiable business results that can either indemnify or indict a CMO. he following capabilities provide

CMOs with a wealth of data for measuring digital marketing resultseverything needed to engage a prospect

and move them through the sales funnel:

Multichannel campaign management

Campaign and email analytics, such as opens, bounces, click-throughs

Multivariate testing

Landing page optimization

Email marketing and analytics

With results in hand, CMOs have begun to step into the spotlight. As more and more organizations recognize

the growing impact of CMO performance on their bottom line, CMOs are seeing their performance evaluations

aligned more tightly to revenue.

Digital marketing: Addressing and re-addressing customersDigital marketing essentially transforms marketing from a transaction-based monologue to an interactive

conversation with customers and prospects taking place on any digital media, be it a smartphone, tablet

device, kiosk, computer, or television. If done in an integrated and methodical manner, digital marketing can

help marketers grow their pipelines with more of todays savvy digital channel customers who seek to be

engaged, rather than merely sold to, by vendors.

Addressing and re-addressing the customer is key to success. For digital marketing efforts to succeed, CMOs

need to focus on the manner in which they address their customers across the differing online channels. Not all

channels are the same. For example, customers using tablet devices might be drawn to an interactive, game-

styled promotion while computer-centered customers seek in-depth educational materials. he challenge for

CMOs is to maintain consistent branding and messaging while delivering channel-appropriate experiences that

Multichannel campaign

optimization

Contenttargetingand

multivariatetestingtools

areprovidingCMOs

withavirtualcockpitfor

controllingmessages

acrosschannels.CMOs

cantapintocriticaldata

andcustomizemessages

sothateveryexperi-

enceisengagingandoptimal.Usingmulti-

variatetesting,CMOscan

thenevaluateaudience

preferencesandpromote

orpullcampaignsbased

onresponserates.


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engage each distinct audience. Having the right tools and processes in place to control and improve the user

experience in each channel is essential. In essence, a multichannel engagement systemor next-generation

WCMis required to fulfill the digital marketing goals of 21st-century CMOs.

CMOs that do not embrace the benefits of interactive and closed-loop marketing will struggle to compete with

their peers and can expect short tenures. Jeff Bell, vice president of global marketing at Microsofts Interactive

Entertainment Business, foresaw this trend years ago. According to Bell, he shorter tenure is in part a

reflection of the change from failing traditional-marketing approaches to less-defined and more dynamic

approaches. Clearly the skill set of CMOs is changing from V, V and more V to interactive media. * CMOs

who grasp the techniques and execute a sound digital marketing strategy can look forward to longer tenures

with more influence at the executive roundtable.

But even the savviest CMOs face tremendous challenges when implementing digital marketing programs. First

and foremost, they are charged with numerous responsibilities that detract from digital marketing efforts,

namely the critical activities listed in the following table. Marketing must usually manage the applications and

external vendors that support these activities, which means overseeing a disparate set of systems and vendors

to get the job done. he list can be quite daunting, and includes everything from marketing automation and

business intelligence software to providers of customer data and event-triggered marketing.

raditional Interactive and Online Customer Satisfac tion

Marketing communications Social media marketing E-marketing

Public relat ions Website management E-sales

Database market ing Search engine marketing E-service

Campaign creation and

management

Search engine optimization

Event management Webinars

Sales support

Executing organizational transformationManaging so many activities and disparate systems inhibits progress along the path of organizational

transformation. According to the Aberdeen Groups 2009 report, Next Generation Web Content

Management, the problem is not a lack of data, but a lack of data quality and an inability to translate data intoautomated engagement. For instance, 45% of respondents surveyed by Aberdeen stated that their No. 1

marketing challenge is extracting insight from data. And a full one-third of respondents cited a second major

challengea lack of resources to derive quantifiable business value from web analytics data.

o overcome these challenges, a majority of CMOs are planning to merge their disparate marketing applications

and tools into an integrated marketing automation platform. As the following figure shows, nearly 87% of CMOs

who do not currently leverage an integrated marketing automation platform are planning to do so.

*AdvertisingAge,CMOs,YouHave23MonthstoLive,June19,2006

What is a

21st-century CMO?

A21st-centuryCMOisonewholeverages

digitalmarketingto

reachcustomersacross

multiplechannels,lling

acompanyspipeline

withwell-qualiedleads

anddemonstrating

revenuegrowthfrom

marketingprograms.


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Adoptionofintegratedmarketingtechnologies

It is important to note that no singular technology can be its own marketing automation platform. hat is why

analysts and CMOs alike refer to it is an integrated platform. It is an integration of three key elements:

Placing marketing applications into a well-thought-out architecture Selecting providers that integrate easily

Ensuring that vendors provide the required business outcomes rather than merely installing sets of disparate

functions

For most 21st-century CMOs, next-generation WCM systems serve as the core of their integrated marketing

automation platform.

WCM: Te hub for multichannel pipeline growthoday, WCM platforms incorporate a host of capabilities that expand their original scope. Next-generation

platforms combine WCM with integration services for digital asset management and social collaboration.

ogether, these capabilities empower CMOs to deliver media-rich, community-oriented customer experiences

that increase brand awareness, drive customer engagement, and build customer loyalty and campaign success.

Serving as the marketing hub for CMOs, next-generation WCM platforms provide one central location for

permission-based access and publishing of marketing messages and programs across all types of digital channels.

In this way, these platforms have evolved into systems that help CMOs grow their pipeline of qualified buyers

across different channels.


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One look under the hood of these next-generation WCM platforms leads to instant appreciation for the extra

content control and interactive capabilities that they afford. CMOs should consider the following key

components when seeking a next-generation WCM platform.

Multichannel marketinghose CMOs that succeed with multichannel marketing do so by developing a

strategy for each channel that enables them to maintain brand equity while satisfying customer expectations.

he most essential tool for pursuing such a strategy is an online marketing platform that enables CMOs to

deliver multichannel customer experiences and campaigns. Look for capabilities to perform permission-based

publishing across a range of output channels, including email, mobile, social networks, web, and print. his

helps ensure that customers are fully engaged, independent of the channel, device, or geography.

Standards-based repositoryUnlike stovepiping, which can result from using proprietary solutions,

advanced, standards-based solutions help stave off obsolescence. Perhaps more importantly, they ensure

platform viability across and outside your organization. Make sure that the WCM platform you choose

supports standards such as Content Management Interoperability Standards (CMIS), Representational State

ransfer (RES), and the OSGi framework. Adherence to these standards future-proofs, and even enhances,

your investment by providing access to a rich ecosystem of applications and utilities that are prebuilt to

interoperate with the multichannel engagement platform.

WCM agilityA short ramp-up time is a major factor in digital marketing. ools should be intuitive and require

little training so that they can be used quickly and widely across your organization. In addition, the WCM

should feature easy-to-use workflows to create the parent-child relationships necessary for the multisite

management that is typical in online marketing.

Digital asset managementOn todays websites, rich mediaincluding images, video, and online

presentationsis what most attracts and engages audiences. As you repurpose digital assets to address multiple

devices, formats, encoding rates, and metadata, youll find yourself dealing with an explosion of assets. An

easy-to-use system helps tame this chaos and enables syndication of assets across multiple channels.

Social collaborationEvery brand has a fan base, but not every CMO is leveraging it. Next-generation WCM

allows you to create a network of relationships between prospects and the loyal customers that can influence

potential customers purchasing decisions. hese online communities also serve other benefits. hey help

build brand loyalty, which in turn leads to more repeat sales, and they potentially offload customer support

functions. Features to look for include a shared calendar, the ability to comment, reviewing functions, rich

media, and document sharing.

Search engine optimization (SEO)Most site visitors find you via search engines. uning content to keeppace with top search terms is critical, but it can be a chore. Next-generation WCMs are built with hierarchical

architectures that support the generation of search engine friendly (SEF) links out of the box to boost page

rankings in search results. In addition, look for platforms that provide APIs to databases like Alchemy for

keyword enhancement and are involved in efforts like the Interactive Knowledge Stack that aim to make

content more visible to search engines.

Content targetingUnlike old media, digital channels offer a range of information that marketers can use to

better target their messages. Whether it is as simple as geography or as complex as past buying behavior, a

solid marketing platform enables you to tap into critical data and customize messages so that every experience

is engaging and optimal.

Campaign optimizationSense and respond is the mandate for todays CMOs. With support for A/B testing

in a platform, marketers can sense audience preferences and promote or pull campaigns based onresponse rates.

AnalyticsBecause CMOs live (and die) by reports, gaining an instant and historical view into campaign

performance is critical. Best-of-breed solutions include integrated analytics that can interface with leading

standalone analytic offerings.

LocalizationMarketing has no geographic boundaries and, like online commerce, is global. As a result, you

need to adjust to local audience needs without compromising your brand. An advanced WCM solution allows a

single change to be proliferated across sites without delays.

Benets of using

next-generation WCM

Optimizationofdigital

marketingbudgetspend

Engagementof

customersand

prospectswith

channel-specicmedia

Increasedcustomer

retentionthroughhighly

personalizedinteraction


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IT agility and the cloudBest-of-breed solutions should work across multiple I environments but, most

importantly, need to be deployable on cloud-based services like Amazons Elastic Compute Cloud (EC2). his

provides the ability to instantly scale and ensures that CMOs are never victims of their own campaign success.

When these WCM capabilities work in unison, CMOs can take full advantage of a broad range of digital

marketing techniques, without losing control of the customer conversation. At the same time, marketing

efforts can be streamlined, because WCM provides business users with the ability to repurpose content across

multiple channels. he end result is a vastly larger pipeline of qualified leads at a much lower cost.

Summary: Customer experience management is a mustDigital media channels are the new battleground for customer growth and retention. Your ability to compete

relies on having a robust digital marketing strategy and infrastructure in place to engage customers in a

meaningful conversation across every channel.

he challenge for you as a marketer is to grow your pipeline without losing control of branding and the

customer conversation. o achieve this, you need the tools and processes to control user experiences. Next-

generation WCM platforms provide just that, enabling you to effectively and efficiently engage your customers

and grow your pipeline of new sales and sales opportunities. With WCM in place, your ability to sense and

respond to changing market conditions will be near real time. his will transform your marketing team from a

cost center to a revenue generator. Ultimately, with marketing tied to revenue, your importance to the business

grows significantly, making you an indispensable component of the executive management team.

Over 200 leading brandsincluding those in the commerce, packaged goods, and travel and hospitality

industriestake advantage of CQ5 Web Content Management software as their WCM platform. For examples

of how Adobe software powers digital marketing efforts , visit www.adobe.com/enterprise .
http://www.adobe.com/enterprisehttp://www.adobe.com/enterprise

the 21st-century cmo how digital marketing is driving organization transformation

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