Why the Chief Data Officer is the Hottest Job of the 21st Century | SmartData Collective

Why the Chief Data Officer is the Hottest Job of the 21st Century | SmartData Collective.


ImageIn 2012, Harvard Business Review boldly named the Data Scientist “The Sexiest Job of the 21st Century.”

In 2013, reporters at CNBC gave the same nod to data analysts, saying it was one of the most sought-after positions.

Even U.S. Secretary of Commerce Penny Pritzker came out praising the Chief Data Officer (CDO), saying, “There is so much more potential to tap – and more data to be unleashed – that will strengthen industry and expand economic opportunity for millions of Americans. … Put simply, our Chief Data Officer will hold the key to unlocking more of our government data.”

So it’s no surprise that in 2015, reporters and analysts alike are still wild over the CDO, praising everything from their usefulness to marketplace demand. Citing an Experian survey of 250 Chief Information Officers (CIOs), InformationAge reports that 90% of IT leaders see data transforming the way they do business.

What’s more is that 61% of CIOs wanted to see a CDO hired within a year and put incharge of leading business initiatives that assist CIOs in interpreting overwhelming quantities of information.In fact, 47% of those CIOs said their key barrier to success is the sheer volume of data they must manage. The continuously growing trend has been on Gartner’s radar for some time. In early 2014, the Gartner stated that 25% of large global organizations would have appointed CDOs by 2015.

“Organizations are creating, accessing and using more sources and types of information than ever before,” the announcement said. “This trend, combined with the increasing need to understand how data is being used within a company, is driving the need for Chief Data Officers.”

With data growing at an exponential rate, the CDO has become an imperative leader in large organizations. From mobile to consumer data, businesses’ success now hinges on harnessing data, understanding advanced analytics and making informed business decisions.

Adding a Chief Data Officer to your C-Suite helps define your company’s commitment to better data and better results by assigning ownership to the process of translating information into insights, and insights into action. Without it, you could have access to the best technology and richest data, yet lack the capacity or capabilities to successfully and consistently manage it.

With a leader available to wrap his or her head around the maelstrom of information whizzing through your enterprise, your company will be better equipped to incorporate big data in a meaningful way.

And your CDO can put the initiatives and process in place to ensure that data is used to its fullest competitive advantage, assessing information in all its forms across your enterprise. Further,the right data management technology can help support the CDO in this end-to-end process.

The emergence of the Chief Data Officer is another piece of the big data puzzle shaping how organizations run and grow their business. Now, good luck finding one.

How Chief Digital Officers Transform Businesses 

How Chief Digital Officers Transform Businesses | Vala Afshar.

2015-05-25-1432558684-6380711-111_richie_etwaru_0.png

Richie Etwaru, chief digital officer IMS Health

As a Chief Digital Officer, one of the fastest-growing C-Suite roles in the enterprise, and the author of a new book, Corporate Awesome Sauce: Success Rules for Generation Y, Etwaru offers guidance for executives to be able to adapt and deal with this digital transformation that will impact every business of every size.

Gartner reported that by the end of 2015 one-fourth of all enterprises will have appointed a CDO. According to e-Marketer, the number of chief digital officers will double in 2015 to 2,000 worldwide. In his book, Etwaru explores the necessary leadership traits that are required to drive meaningful change, by staying adaptable, intellectually curious and collaborative. These leadership attributes will ultimately shape a successful business transformation journey that for many companies will be led by the chief digital office.

Etwaru shares his advice on how the CDO can help guide digital business transformation:

1. Find the operating corridor – When it comes to undertaking a digital transformation, Etwaru says you need to find the operating corridor and it starts with the CEO who has the foresight that the business model that you have today is not going to withstand the test of time. These CEO’s will be able to push back on a board or stakeholder and are okay with delivering less than amazing results for a few quarters to ensure their company is around for the next 30-60 years.

“I think when you can find that operating corridor; you’re going to be a CDO that’s going to have fun. If you don’t have that operating corridor you’re going to have a difficult time with the balancing act of achieving quarterly performance from existing revenue streams while putting in place a 20-year strategy,” says Etwaru.

2. Prevent ‘Kodak Moments’ – The point when you realize that your P&L has completely evaporated because someone has replaced your products or services with something that is coming up from an entirely new set of forces in the marketplace is what Etwaru calls a “Kodak Moment”. He is referring to the fact that Kodak could have figured out digital photography if they weren’t so worried about the revenues that would come from the film business – this was their Kodak Moment says Etwaru.

Etwaru feels it is the CDOs responsibility to keep companies from having their Kodak Moments. He says that the CDO needs to act as an evangelist in the P&L to ensure that companies are not mistakenly leaving opportunities on the ground within the new economies that are being created by digital opportunities. The second piece is to act as an advisor to customers that are going through their own transformations by helping them figure out how to avoid their own Kodak Moments.

“The marketplace is changing for our customers and as a result we have to understand how our customers are experiencing that change so that we can build products and services to help them through that change,” says Etwaru.

3. Obsess about next generation P&L – Etwaru says that the core or the primary goal of a Chief Digital Officer is to think about the next generation P&L, where more of the revenues will be coming from new market opportunities as opposed to market opportunities that would have funded value creation historically. Etwaru thinks that the fundamental difference of a Chief Digital Officer, compared to other C-Suite roles, is that 49% of what you do is the work of a general manager. Because you are essentially starting a new company that has more digitally-influenced products and services that run the P&L, a lot of time goes into looking at bringing new products and services to the marketplace and building profitability. Of the remaining 51%, he thinks 26% of that is somewhere around CIO/CTO responsibilities, and then the remaining 25% is just outright innovating.

“You have to out-think, outsmart, out-innovate, outplay and out-maneuver the competition to the new marketplace before they can even figure it out,” said Etwaru.

4. Bring on the coolness factor – Thinking of coolness as an asset that can move through an organization, Etwaru says that part of a CDO’s job is to make companies cool. According to Etwaru, “The bane of my existence is to make sure that we don’t go out of business, so my role as a Chief Digital Officer is to supply these assets – coolness, innovativeness and forward thinking capability – to a set of distributors – product people, marketers, go to market, financial, reengineering of a P&L – to amplify them.”

5. Think horizontally – “Cool is not the only currency,” admits Etwaru. There is of course other currency that distinguishes the CDO role, one of which is thinking horizontally vs. vertical. While other roles, such as CIO and CMO are sort of horizontal, they are still mostly vertical. Etwaru says the CDO role is really horizontal. With zero staff, he takes staff from various verticals to create new opportunities and fill the operation corridor to make transformation happen. Having an ‘a-ha!’ moment during our interview, Etwaru describes the transformation that has to happen: “It’s really like starting a new company to cannibalize the one that you have.”

When looking for candidates for the role of CDO, Etwaru recommends looking for people that have done different things, performed different functions and have worked across different industries. He says, “This is not the type of job that has a vertical trajectory. On any given day I am meeting with product, marketing, communications, operations, compliance and legal. It is a very horizontal looking job.”

6. Eat, breathe, sleep innovation – One of the most important questions within the context of the CDO is ‘can you transform digitally without being innovative?’ In order to find digital revenue streams on top of the analog type streams that you’ve had in the past; Etwaru says you need to be innovating all the time. Can you haphazardly land on some and not necessarily innovate? It’s possible, he says, but innovation is a big part of what he does as well as reflective thinking of the customer’s journey: “I need to be able to study what we sell, why people buy it, what they are buying from our competitors and what would they want to buy tomorrow. Then, based on a set of inventions that are there – mobile, social, Internet of Things, wearables – how can we create the next generation of products for our customers before our competitors.”

In summary, Etwaru’s final recommendation was that all Chief Digital Officers readRay Wang’s new book Disrupting Digital Business: Create an Authentic Experience in the Peer-to-Peer Economy, for help with figuring out how to actually do all the things described in this article.

You can watch the full interview with Richie Etwaru here. Please join me and Michael Krigsman every Friday at 3PM EST as we host CXOTalk – connecting with thought leaders and innovative executives who are pushing the boundaries within their companies and their fields.

54% of CMOs Supplement TV Ads with Digital Video

54% of CMOs Supplement TV Ads with Digital Video.


The CMO Club and Simulmedia have released the report “The Future of TV and Digital Video.” It’s the result of a survey of more than 80 senior marketers. Over half (54 percent) said they use digital video to supplement TV as a holistic strategy, but only 31%align their budgets for TV and digital advertising spend. This separation leads to a disconnect between the value of each medium, as just over half (52%) claim that they have different expectations across the two platforms. In addition, 75% of CMOs say that they measure reach the same way for both TV and digital video and but only one-third see Nielsen as the ongoing foundation of their reach metrics.

“CMOs say they want a holistic strategy, but neither plan, measure or budget for it as one thing,” says David Cooperstein, CMO at Simulmedia and author of the report.

Other findings:
* In the past three years, digital spend has gone from 10%of advertising budgets to 24% and is forecast to rise to 36%in the next three years.

“For over a decade, marketers have attempted to find the most efficient balance between TV and digital video spend,” says Pete Krainik, Founder of The CMO Club. “Our report shows that it’s not TV vs. digital video, it’s about TV and digital video, both today and for the foreseeable future.”

*In the US, digital video advertising expenditures are exploding. Figures from eMarketer show that digital video ad spending is estimated at $6 billion this year, growing around 42% annually. However, the actual dollars spent in TV still greatly trumps digital video. TV advertising dollars in the US were approximately $76 billion in 2014 and still growing by a smidgen more than 3% annually. While both will continue to grow, TV will continue to add more raw dollars of advertising than digital video will, particularly during pivotal political and Olympics years.

“Digital depth cannot match TV’s breadth. Nor should it. Conversely, TV has not historically been as measurable or personalized, so it cannot perform the magic that digital delivers. In that very unique way, TV and digital do not compete, they complement. The winning combination is the joint approach. TV’s reach and digital’s depth make them amazing partners in the marketing mix,” says Cooperstein.

Digital diaspora in the enterprise: Arrival of the CDO and CCO | ZDNet

Digital diaspora in the enterprise: Arrival of the CDO and CCO | ZDNet.

When they write the history of the early days of the networked era, it will be noted that the centralization of technology services in most enterprises largely ended within a few decades of the arrival of the Internet. Networked technology became so profoundly widespread, pervasive, and inexpensive, that the sheer variety and richness of the cloud first swamped and then disintermediated the old methods of providing a few approved apps and devices. What’s more, as all forms of digital became more and more central to the core business models of organizations, the traditional IT department began to lose a growing portion of the strategic discussion around technology.

There have been suggestions that organizations now need C-level officers focused on everything from corporate data and customer experience to digital strategy and social media.

Or at least that’s what they’re likely to write, based on current trends today. For instance, bring-your-own-device (BYOD) programs — and now bring-your-own-apps (BYOA) — are the proverbial canaries in the coal mine for these trends. They have empowered vast new digital armies of workers in the trenches, with a large majority (80%+) of organizations adopting BYOD, and many now exploring BYOA, in just the last two years alone. At the same time, other purviews within our organizations have become core investors in high technology, with CMO budgets reported to eclipse IT itself in 3 years due to this factor. Perhaps most significantly, sober voices are now saying that shadow IT (meaning technology not under the control of the CIO) is expected to reach 90% of all enterprise IT spend by the end of this decade, up from just 10-20% a decade ago.

Clearly big changes are afoot, but where they’ll finally end up is a bit harder to surmise. As indicated above, the root causes are many and varied. However, the overall digitization of 1) market/customer engagement and 2) corporate sources of revenue — along with the digital transition/integration of our companys’ products and services themselves — are the most significant and impactful factors driving change.

As this has played out so far, everyone’s budget is rapidly becoming the “real” IT budget. Thisdemocratization of IT has had significant organizational implications as digital transformation fundamentally remakes our organizations. Or at least the ones that manage to adapt to the current uber-connected, deeply integrated, data-fueled, app-centric, highly mobile, customer-focused, and socially engaged state of the global marketplace.

The new impact of digital strategy on CIO, CMO, CDO, CFO, CCO and BYOD, BYOA, CoIT

Thus, most companies have become increasingly misaligned with today’s fast-moving new market conditions and they generally know it.

One of the ramifications of this is that the C-suite is consciously attempting to evolve in reaction to the growing digitization of business. There have been many discussions of late about what this should entail, including suggestions that organizations now need C-level officers focused on everything from corporate data and customer experience to digital strategy and social media.  Probably the two new roles most frequently discussed at the moment are a Chief Digital Officer (CDO) and a Chief Customer Officer (CCO) , both of whom would impact the CIOs and CMOs of most organizations in a non-trivial partitioning of roles, resources, and responsibilities.

But just as companies generally don’t have a Chief Marketplace Officer or Chief Channel Officer, the strategic concern here really isn’t about the general business landscape or digital plumbing, but about the people in it and the data that concerns them. And this is where companies are moving slower, even if they just maintain their current pace of adoption. That’s because digital innovation in-the-large has only continued to accelerate. The rate of change is increasing and companies response to it isn’t: On a daily basis, several thousand new mobile apps become available, while on a broader horizon the amount of data our businesses must respond to doubles at least every 1-2 years. So too are the methods through which we have to engage with and respond to our customers. The deltas on every front look similar.

The key qualities challenging our management of technology today are therefore fragmentation,velocityvarietyvolume. These are the obstacles our organizations currently face in scale across our delivery channels, products/services, constituents, revenue sources, and management time, thoughthere are certainly viable strategies to address some of them.

RelatedA new reality between the CMO and CIO .

More digital leadership or more digital decentralization?

So what are organizations going to do about the rise of digital and challenes it brings? What then is the best route to adapt the structure of our organizations, from the management team on down, to better define, adapt to, and seize the generational opportunity of realizing a successful digital strategy in a highly social, mobile, etc. world?

There seem to be two broad approaches, one top down and other bottom-up:

  • New C-level digital leadership will be adopted. Strategic digital leadership will move to a new Chief Digital Officer in many organizations. Up to 25% of large enterprises will have a CDO by 2015. Between them, the digital experience for the customer will be split between a new Chief Customer Officer and the CMO.  This will essentially double the number of senior executives focusing on digital transition and channels, though it will still likely not make a dent in the actual adoption of new digital technology across the organization as social media and mobility in particular reinvent what it means to be connected to and engaged with the market. The data boom caused by the increasing domination of these new channels will be the second immediate issue that the CDO and CCO will have to address.
  • Digital adoption will be enabled broadly across the organization. BYOD and BYOA programs are just the first wave, as organizations realize that to keep up with technology change they need to restructure everything from enterprise architecture to business strategy for near-constant evolution. This means flattening and greatly expanding who is empowered to apply new technology to the business, while providing ground rules to make it safe and secure. That this will happen is now largely a forgone conclusion given the growth in shadow IT in just the last couple of years, brought to forefront via empowering self-service sources like app stores, which have become the IT department of choice for a growing number of workers.

The reality is that organizations will do both of these things: Add more C-level executive oversight to digital while they also attempt to broaden their technology adoption base internally on the ground (making everyone part of the IT department, essentially, just like everyone is part of the social media team.) While this might have been somewhat controversial even a year or two ago, it’s now clear that this is the likely route for most companies, even as they have to vigorously compete with many digital startups trying to displace them with a purer and more savvy approach not hindered by their legacy constraints.

The next half-decade will be very interesting indeed as digital strategy steadily moves from the 2nd tier to the top tier of management concern.

IDC Predicts Turmoil For CMOs In 2015: 25% of CMOs will be replaced every year through 2018.

IDC Predicts Turmoil For CMOs In 2015.

 

Late last year IDC’s CMO Advisory Service released its 10 predictions for the next three years. Kathleen Schaub, vice president of the practice, summarized the findings this way, “Our theme for the coming year is turmoil versus transformation. There’s a lot of activity going on and some people are actually moving forward, but there’s also a lot of spinning and a lot of trial and error.

“We see that marking transformation is at a point where marketing people get that they’ve got to take [new] roads and these roads need new and different kinds of content. They need to start engaging with buyers earlier. They need to use data to personalize. They need technology in order to be able to accomplish that. These fundamental facts about modern marketing everyone get now. [Marketers] pretty much all tried to do this and now realize how difficult it is, how interrelated it is and how much has to change in such a fundamental way in order to be able to make this happen. There are a few places here and there that are starting to put things together, but the scary stories are coming back as often as the winning stories.”

IDC CMO FutureScape 2015 (2)

Here are IDC’s 10 predictions with my editorial comments:

  1. 25% of CMOs will be replaced every year through 2018. The big issue to me that contributes to this turnover is the redefinition of the CMO role. No longer can a CMO simply be the “brand champion” who primarily uses advertising to accomplish her goals. In the era of modern marketing, customer experiences will trump advertising campaigns. CMOs must become champions of great experiences at every step of their customers’ decision journeys. Those who rise to this new standard with thrive. Those who don’t will be in jeopardy of losing their jobs.
  2. By 2017, 25% of marketing organizations will solve critical skill gaps by deploying centers of excellence. Very similar to how CMOs dealt with the explosion of digital and social media over the past decade, scarce talent will be a centralized resource used to shore up business units’ gaps. The emergence of the chief marketing technology officer (CMTO) is one response to centralizing the competencies needed to build the data and technology infrastructure required for modern marketing.
  3. By 2017 15% of B2B companies will use more than 20 data sources to personalize a high-value customer journey. Having personalized experiences at each touch point is the holy grail of modern marketing. Creating a unified view of an individual customer requires connecting that customer’s data from every interaction system, most of which are siloed today. Having a data integration plan should be at the top of every CMO’s 2015 agenda.
  4. By 2015 one in three marketing organizations will deliver compelling content at all stages of the buyer journey. Congratulations to the third who will get there this year. But for the rest of you, what’s holding you back?
  5. In 2015 only one in five companies will retool to reach line of business buyers and outperform those selling exclusively to IT. Ouch! With more and more applications being delivered via a SaaS model, business users can procure the tools they need directly for suppliers more easily. Look at what has happened in marketing with marketing cloud applications, and in sales with products like SalesForce.com. The 80% of companies slow to adjust to this new reality will be in trouble soon.
  6. By 2017 50% of larger high-tech marketing organizations will create in-house creative services. Retailers did this long ago to produce Sunday circulars more cost-effectively. Manufacturers are trying to create efficient content production teams now. This model can work for production content, but most firms will realize hiring and keeping top creative talent will be a challenge. I expect to see a hybrid model that uses both internal production teams and outside agencies to develop the most effective portfolio of content.
  7. By 2018 20% of B2B sales teams will go “virtual,” resulting in improved pipeline conversion rates. Let’s face it, highly paid sales people don’t want to mess with prospects who aren’t ready to buy. But as customers discover and explore solutions online, they may have questions that they can’t answer independently. I’m seeing more marketing organizations create lead nurturing call centers to fill this gap. When done well, customers have better experiences and sales get a higher percentage of highly qualified buyers.
  8. By 2017 70% of B2B mobile customer apps will fail to achieve ROI because they lack customer value-add. I believe this failure happens for two reasons. First, companies believe they must have a mobile app so they rush something to market that helps them push their agendas instead of taking time to understand what the customer actually needs. Second, most companies don’t need an app. What customers really want is a mobile-optimized website (which is already connected to your back-end systems) to get the information they need whenever and wherever they want it. In 2015 I’d suggest you resist being “app happy” and instead become truly “mobile friendly.”
  9. By 2017 25% of CMOs and CIOs will have a shared roadmap for marketing technology. Why isn’t this 100% in 2015? It should be! No excuses for waiting until 2017.
  10. By 2018 20% of B2B CMOs will drive budget increases by attributing campaign results to revenue performance. Yikes! Only 20%. Sure building measurement systems isn’t easy, but the tools do exist to help you learn what works and doesn’t. For the CMOs who don’t make progress on multi-channel program attribution in 2015, re-read prediction #1. Your job will be in jeopardy.

By 2018, 25% of CMOs and CIOs will have a shared road map for marketing technology

FRAMINGHAM, Mass.: IDC Reveals CMO / Customer Experience Predictions for 2015 | Business Wire | Rock Hill Herald Online.

The predictions from the IDC FutureScape for CMO/Customer Experience are:

1. 25% of high-tech Chief Marketing Officers (CMOs) will be replaced every year through 2018.

2. By 2017, 25% of marketing organizations will solve critical skill gaps by deploying centers of excellence.

3. By 2017, 15% of B2B companies will use more than 20 data sources to personalize a high-value customer journey.

4. By 2018, one in three marketing organizations will deliver compelling content to all stages of the buyer’s journey.

5. In 2015, only one in five companies will retool to reach line of business (LOB) buyers and outperform those selling exclusively to IT.

6. By 2016, 50% of large high-tech marketing organizations will create in-house agencies.

7. By 2018, 20% of B2B sales teams will go “virtual,” resulting in improved pipeline conversion rates.

8. By 2017, 70% of B2B mobile customer apps will fail to achieve ROI because they lack customer value add.

9. By 2018, 25% of CMOs and CIOs will have a shared road map for marketing technology.

10. By 2018, 20% of B2B CMOs will drive budget increases by attributing campaign results to revenue performance.

“CMOs must overcome the gravitational pull from the past, now. The tools of disruption, such as cloud-based marketing technology, predictive analytics, content marketing, and social media, are marching towards mainstream. IDC is confident that these ten decision imperatives pinpoint the nerve center of the marketing disruption. They represent opportunities for CMOs who are willing to step up to the next stage of leadership. Right focus will ensure that all the hard work will result in true transformation, and not just turmoil,” said Kathleen Schaub, Vice President with IDC’s CMO Advisory Service.

 

How Big Data Brings Marketing and Finance Together – Wes Nichols – Harvard Business Review

How Big Data Brings Marketing and Finance Together – Wes Nichols – Harvard Business Review.

When Raja Rajamannar became CMO of MasterCard Worldwide in 2013, he moved quickly to transform how the credit card giant measures marketing. His artillery: Advanced Big Data analytics. MasterCard had always been a data-driven organization. But the real power and full potential of data was not being fully realized by marketing.

Rajamannar involved finance early. To spearhead analytic efforts, he assigned a finance person – who was already embedded in marketing – to create an ROI evaluation framework and integrated her deeper into the marketing function. With a better understanding of the marketing context, she has brought a new level of financial discipline and rigor to the marketing team. This has reframed the conversation to balance the interests of both sides.

For example, in the credit card business, understanding the importance of deals with issuing banks is critical. While marketing might focus on maximizing card transactions, or swipes, finance understands that not all swipes are equal (depending on the deal with a given bank). Likewise, marketing wants to clearly quantify the impact of its long-term branding efforts while finance is more focused on macro-economic drivers of marketing performance, such as interest rates, employment levels, inflation and retail sales.

At many companies we work with, analytics becomes the connective tissue between the different visions of what drives results emerging from marketing and finance. Combining data from both marketing and finance, analytics reveals the true picture of what drives marketing performance, and connects marketing to revenue.

Inside Intel

Consider Intel, which began eyeing Big Data’s potential to quantify marketing’s contribution to revenue in about 2010. As an ingredient brand, Intel often struggled to link marketing to P&L impact. But David Ginsberg, VP, Corporate Insights, Brand and Strategy, saw the potential for analytics to create a bridge between marketing and finance by illuminating marketing’s impact on sales – the focal point of where marketing and finance meet.

Intel formed a special Marketing ROI (MROI) team – a first-of-its-kind collaboration between marketing and finance. The result has been transformational. Intel’s research team, for example, has been rebuilt as an analytics and strategic insights team that identifies, collects and harnesses unprecedented amounts of the company’s data. This now provides its marketing teams globally with predictive decision-making capabilities they never had before. Financial accountability for marketing performance has become front and center. Marketing and finance share a fully transparent analytics platform that all parties can access to run what-if scenarios, optimize marketing-dollar allocations across products and markets, and get course-correcting feedback on the performance of those allocations.

In one instance, we worked with both Intel and Facebook to quantify how the chip maker’s social media marketing on Facebook affected consumer PC sales. This targeted effort showed that paid Facebook ads and the company’s own unpaid (organic) Facebook postings increased Intel brand and product search volume by 1.9%-2.3% – which in turn led to increased PC sales.

Organizational Anachronisms Exposed

Similar reform in the relationship between marketing, finance and analytics is taking place across many sectors – from manufacturing and retail, to financial services, travel and entertainment, pharmaceuticals and toys. Analytics has exposed organizational anachronisms such as adversarial marketing-finance relationships and a focus on traditional year-long planning (instead of constant optimization) in marketing groups little changed for decades. This has spurred re-thinks that include changes to key executive relationships.

At Mattel, another company we work with, a cross-functional group of executives from insights, brand, marketing, media, digital and finance now meets regularly to adjust spending allocation plans based on modeling and analytic results, says Ed Gawronski, Global SVP. This has brought agreement on a common set of ROI metrics and helped facilitate decision making about investing in short-term sales versus brand equity.

In effect, analytics creates a common language between marketing and finance for the first time by allowing the two functions to clearly see marketing’s impact on financial performance. Consider how USAA – the nation’s 6th largest consumer P&C insurer – has reinvented how marketing, finance and data analytics work together, starting with a first-ever partnership between the CMO, CFO and Chief Data Analytics officer.

Roger Adams, CMO says: “As USAA developed into a data-driven organization, we were able to accurately predict the impact of different marketing investment decisions. It’s completely reframed the conversation.” Forrester Research recently published a case study describing how USAA’s new partnership between marketing, finance and analytics has helped deliver better business insights.

At MarketShare, we’ve seen these partnerships play out in a change in who’s sitting at the table during discussions with major brands about advanced marketing analytics technology. Once mostly marketing, it’s now equal parts marketing, finance and analytics. In some cases, finance even leads a vendor selection process once dominated by marketing.

Companies that fail to update their marketing organizations and continue using antiquated measurement solutions are at risk of being left behind. New marketing-finance relationships combined with advanced analytics technology are increasing efficiency and delivering “found” dollars to the bottom line. Short of creating a killer new product or service, there are few ways a big company can move the needle quite so dramatically.

CMO Spend 2014: Running on Digital (Gartner Infographic)

CMO Spend 2014: Running on Digital (Gartner Infographic)

Selon une enquête de Gartner, menée entre juillet et septembre 2013 auprès de marketeurs américains de grandes entreprises, les budgets de marketing digital devraient augmenter de +10% en 2014.
En 2013, le marketing numérique représentait 28,5% du budget marketing total, contre 25,5% en 2012. La plus grosse part du budget était consacrée à la publicité digitale (12,2%), contre 10,3% pour le site internet corporate, 9,6% pour le commerce numérique et 9,5% pour le marketing mobile et social. En moyenne, les entreprises ont dépensé 10,7% de leur chiffre d’affaires 2013 sur l’ensemble de leurs activités marketing, et 3,1% en marketing digital, contre 2,5% du CA en 2012, soit +20%. En 2014, les dépenses en marketing digital devraient représenter 3,3% du CA.

L’étude “Marketing 2020″ insiste sur l’enjeu d’intégration – Désilotage (Think, Feel, Do)

“Plutôt que d’essayer d’imaginer le marketing digital du futur, le véritable enjeu aujourd’hui est de réinventer le rôle et l’organisation du marketing à l’ère du digital (…)”, a résumé Patrice Favière, Directeur EffectiveBrands, qui a révélé les résultats de l’étude “Marketing 2020″ lors du HubForum 2013. Menée en partenariat avec l’UDA, cette étude découle de 250 entretiens avec des CMO à l’international.
Le rôle du marketeur évolue puisque dans 58% des entreprises, il collabore étroitement avec la direction générale pour déterminer les priorités stratégiques de croissance, contre 38% en 2006.

L’enjeu d’intégration passe, selon les entretiens, par un “dé-silotage” de la structure pour repenser les compétences des équipes, dans un modèle 365/24/7, selon 3 axes : Think (marketing analytics), Feel (customer engagement), Do (content production).
L’étude révèle que les entreprises sur-performantes dans leur secteur investissent en moyenne 20% de plus que les autres dans le développement des compétences de leurs équipes.

Les challenges qui attendent les CMO dans le futur seraient : l’infobésité, le respect de la vie privée, la multiplication des points de contact et les silos.
Les entretiens d’une heure de plus de 250 CMO et marketers américains, français, britanniques, brésiliens, chinois, singapouriens, néerlandais, belges et allemands ont été compilés et 10 231 professionnels du marketing de 92 pays ontété interrogés.

Coca-Cola Marketing Shifts from Impressions to Expressions – Joe Tripodi – The Conversation – Harvard Business Review – StumbleUpon

Coca-Cola Marketing Shifts from Impressions to Expressions – Joe Tripodi – The Conversation – Harvard Business Review – StumbleUpon.

JOE TRIPODI

Joe Tripodi leads global marketing, customer management and commercial leadership as Executive Vice President and Chief Marketing and Commercial Officer of the Coca-Cola Company.

Coca-Cola Marketing Shifts from Impressions to Expressions

This post is part of Creating a Customer-Centered Organization.

A lot of us remember when the role of the CMO was much simpler. Information flowed in one direction: from companies to consumers. When we drew up our plans and budgets, the key metric was consumer impressions: how many people would see, hear or read our ad?

Today the only place that approach still works is on Mad Men. Now information flows in many directions, consumer touch points have multiplied, and the old, one-size-fits-all approach has given way to precision marketing and one-to-one communications. Perhaps the most consequential change is how consumers have become empowered to create their own content about our brands and share it throughout their networks and beyond. It has changed my role as the chief marketing and commercial officer at Coca-Cola, and the company’s approach to consumer engagement as we work to double our business by 2020.

In the near term, “consumer impressions” will remain the backbone of our measurement because it is the metric universally used to compare audiences across nearly all types of media. But impressions only tell advertisers the raw size of the audience. By definition, impressions are passive. They give us no real sense of engagement, and consumer engagement with our brands is ultimately what we’re striving to achieve. Awareness is fine, but advocacy will take your business to the next level. (I used to think that loyalty was the highest rung on the consumer pyramid until I became the CMO of Allstate Insurance. There, I saw clearly that so much business was driven through personal referrals and advocacy by individuals for their agent.)

So, in addition to “consumer impressions,” we are increasingly tracking “consumer expressions.” To us, an expression is any level of engagement with our brand content by a consumer or constituent. It could be a comment, a “like,” uploading a photo or video or passing content onto their networks. We’re measuring those expressions and applying what we learn to global brand activations and those created at the local level by our 2,700 marketers around the world. For example, in our 24-Hour Live Session with Maroon 5, we captured impressions (the number of online views) but gained tremendous insights from expressions by our consumers — their comments, input on the song that was being created and what they shared with their networks.

So what are the keys to winning in this new era of empowered, engaged and networked consumers? Here are some of the top “expression” lessons we’ve learned so far:

Accept that consumers can generate more messages than you ever could. Don’t fight this wave of expression. Feed it with content that touches consumers’ passion points like sports, music and popular culture. We estimate on YouTube there are about 146 million views of content related to Coca-Cola. However, only 26 million views were of content that we created. The other 120 million views were of content created by others. We can’t match the volume of our consumers’ creative output, but we can spark it with the right type of content.

Develop content that is “Liquid and Linked.” Liquid content is creative work that is so compelling, authentic and culturally relevant that it can flow through any medium. Liquid content includes emotionally compelling stories that quickly become pervasive. Similarly, “linked” content is content that is linked to our brand strategies and our business objectives. No matter where consumers encounter it, linked content supports our overall strategy. When content is both “Liquid and Linked,” it generates consumer expressions and has the potential to scale quickly. An example of “Liquid and Linked” was our FIFA 2010 World Cup program, which was the largest-ever Coca-Cola activation in history. More than 160 countries used a common World Cup Visual Identity System, a pool of television commercials, and a common a digital platform. All were linked by the common thread of celebration.

Accept that you don’t own your brands; your consumers do. Coca-Cola first learned this lesson in 1985 with the introduction of New Coke, but it’s become even more important with the growth of social media. As I write this, Coca-Cola’s Facebook page has more than 25 million likes (fans). Our fanpage wasn’t started by an employee at our headquarters in Atlanta. Instead, it was launched by two consumers in Los Angeles as an authentic expression of how they felt about Coca-Cola. A decade ago, a company like ours would have sent a “cease and desist” letter from our lawyer. Instead, we’ve partnered with them to create new content, and our Facebook page is growing by about 100,000 fans every week.

Build a process that shares successes and failures quickly throughout your company.Increasing consumer expressions requires many experiments, and some will fail. Build a pipeline so you can quickly replicate your successes in other markets and share the lessons from any failures. For example, our “Happiness Machine” video was a hit on YouTube so we turned it into a TV commercial, and we’ve replicated that low-cost, viral concept in other markets.
Be a facilitator who manages communities, not a director who tries to control them. In 2009, we launched Expedition 206. Consumers voted for the three people they wanted to see travel the world as Coca-Cola Ambassadors, visiting most of the 206 countries where Coca Cola is sold and driving an online conversation about what makes people happy around the world. On every step of their 273,000 mile journey, the ambassadors blogged and created all the content. Our role was to facilitate their journey, which was no small task. We had to give up control of the content, so our ambassadors could share their own experiences. In an era of consumer expressions, seek to facilitate and participate with communities, not control them.

Speak up to set the record straight, but give your fans a chance to do so first. Of course, not every consumer expression will be positive. You have to be part of the conversation so you can set the record straight when you need to. Even better, we’ve found that our fans make online communities self-policing. When our Facebook site was targeted by an activist group whose members posted negative messages, our fans responded with messages of support for our company, and our fans challenged the use of the community for activist purposes.

Marketing has changed dramatically since Doc Pemberton poured the world’s first glass of Coca-Cola in 1886. On May 8th, 2011, Coca-Cola and our fans around the world will celebrate our 125th anniversary. While I’ll be curious how many impressions our activities generate, I will look most closely to the expressions of our consumers as a better measure of our success in keeping the world’s most valuable brand relevant for the next 125 years.

Joe Tripodi leads global marketing, customer management and commercial leadership as Executive Vice President and Chief Marketing and Commercial Officer of the Coca-Cola Company.