the changing role of the cio and cmo..v1r
DESCRIPTION
A primer on the changing role of the CIO in large organizations, with the intersection of what the new CMO is and will continue to face as challengesTRANSCRIPT
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CMOs spend will grow year over year spending from
5% of Gross Revenue to close to 7% by 2014 GARTNER 2012
CIO spending will Shrink year over year spending from 3.5% of Gross Revenue to about 3% by 2014 GARTNER 2012
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Doesn’t care which vendor’s name is on hardware Wants solutions that solve problems & is willing to Pilot Hates long “ERP-like” projects
The balance between tradition and innovation brings on The rise of
The Chief Marketing Technology Officer
CIO/CMO Crossroads Both recognize need to invest in and integrate technology and
analytics to deal with growing complexity
IBM Institute for Business Value
Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141; Q20 To what extent will the opportunity to collect unprecedented amounts of data require you to change? n=1629 to 1673
Global Underpreparedness Percent of CMOs selecting as “Top 5 Factors”
Data explosion 71%
Social media 68%
Channel & device choices 65%
Shifting demographics 63%
Financial constraints 59%
Decreasing brand loyalty 57%
Emerging markets 56%
ROI accountability 56%
Customer collaboration 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%
Need for change to deal with data explosion Percent of CMOs indicating high/significant need
Invest in technology
Understand analytics
Collaborate with peers
Validate ROI
Address privacy
Integrate insights
Rethink skill mix
73%
69%
65%
64%
52%
49%
28%
This slide is courtesy of the IBM Institute for Business Value ©2012
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ROI will be the number one method for determining marketing success by 2015
Seven most important measures to gauge marketing success Percent of CMOs selecting success measurements
Customer experience
Conversion rate/new customers
Marketing ROI
Marketing-influenced sales
Revenue per customer
Overall sales
Social media metrics
63%
58%
48%
45%
42%
42%
38%
This slide is courtesy of the IBM Institute for Business Value ©2012
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Digital Marketing Current State
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Customer
Customer Demographics
Customer IDs: Phone, Email, Twitter, Facebook
Sales
Item level purchase history
Statistical basket analysis
Segmentation
Macro-Segmentation (up to 10 segments
All segments are targeted
Promotions
Delivered to all customers
Results are hard to measure
Competition analysis
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Marketing Needs To Control Data
and the User Experience
New Marketing Playing Field
Vendor Systems
Loyalty Program
POS (Sales) data
Merchandising Data
Internal Analytical data
3rd Party Market Analytics
Social Media
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All Customers
Customer Segment A
Customer Segment AB
Customer Segment ABC
CMO Vendor Group Consumer Group
Products and
Services
Social Media
Manufacturer Data 3rd Party Market Analysis
Product Group
Macro-Segmentation (up to 10 segments
Our Vision of Advanced Marketing
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Customer
Customer Demographics
Customer IDs: Phone, Email, Twitter, Facebook
Sales Segmentation Promotions
Social Media Customer Profile
Anonymous Customer Profile
Stochastic Customer model
Anonymous basket analysis
Segmentation optimization
Iterative micro-segmentation
Prescriptive actions
Targeted micro-segments
Social media competitors analysis
Result Analysis
Item level purchase history
Statistical basket analysis
All segments are targeted
Delivered to all customers
Results are hard to measure
Competition analysis
Competition
Competitors product offering analysis
New product ideas generated by customers
INTRODUCTION
12 PRAESCRIPTO LABS INC.
™
Build a transformational model, that will
create an abstract of a customer, including micro‐segmentation, by analyzing the similarity of the buying and behavioral habits, social media data, and other integrated data sources.
CMOs are now in Charge!!
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Arthur Tisi