For CMOs, data are the new age fuel

The good news is that marketing executives keenly understand the challenges involved in transitioning from an analogue to a digital universe.

The bad news is that they’re still unprepared for the data boom, which is growing exponentially, especially as consumers increasingly interact and shop via mobile and online tools. As the business climate changes at the speed of light, very few executives have concrete plans in place to take advantage of this new tidal wave of information.

Once regarded as more art than science, marketing is now a technology-intensive field. For the same reason, today, marketing executives must be both business savvy and technically inclined. No wonder then that the Chief Marketing Officer’s (CMO) role has evolved — and will continue to do so. Their responsibilities have expanded and their involvement in major strategic decisions has grown. Some companies have even restructured the organisation chart so that Chief Information Officers (CIOs) report to CMOs.

According to an IBM Institute for Business Value study, 63 per cent of CMOs surveyed said they are brought in by the CEO to help develop overall business strategy, and they rank second in importance to the CEO after the CFO.Incidentally, the closer the relationship between the CIO and the CMO, the better the company’s financial performance.

The study of CMOs — involving more than 500 in-person interviews with CMOs — found that 94 per cent of CMOs believe that data analytics will play a significant role in helping their organisations reach their goals.

By the same token, an increased number of CMOs — 82 per cent, up from 71 per cent three years ago — say their organisations are not prepared to take advantage of the data explosion.

Predictive analysis’ role One of the biggest challenges posed by the onslaught of data is that it comes in various shapes and sizes, at an unpredictable pace. In such a scenario, Predictive Analytics provides businesses with advanced data analysis, foresight into the future. It helps arm the CMO with fact and information-based insights into every process, decision and action, to gain a competitive edge.

For many businesses, use of data analytics won’t just be an option — it will be a competitive necessity, and CMOs are largely expected to spearhead these efforts.

The biggest boon of Big Data and Analytics is that in today’s scenario of shrinking budgets, it helps the CMOs do more targeted marketing, not mass based but individual-based. A growing number of companies have turned to Big Data to improve every aspect of business — from reducing expenses to improving customer service — and those businesses that don’t have a sound data strategy in place risk alienating new and existing customers.

An interesting example is of North Face, the outdoor equipment retailer, and how it used analytics to create personalised customer experiences. The company was experimenting with a virtual shopping concierge: Fluid Expert Personal Shopper, powered by IBM Watson.

If a customer simply inputs about an upcoming camping trip, the technology will immediately anticipate the camper’s needs and provide suggested supplies that the customer might not have thought of! An interesting way in which technology is helping customers get exactly what they need while also gaining a better understanding of each customer’s individual interests!

Social media challenge Another one of the most daunting challenges in the new landscape, according to most CMOs, is social media. While some marketers predict dramatic and great things from growing platforms — that it could deliver a higher ROI than television — most CMOs still aren’t sure what to do with it.

It’s an especially complex problem because social platforms change every second. CMOs also readily acknowledge the importance of mobile applications — 94 per cent believe they will play a significant role over the next three to five years, and that percentage is up from 80 per cent three years ago.

CMOs find themselves in an unusual position; they’re expected to navigate businesses through an ever-changing, complex digital landscape.

The use of data analytics, however, will allow them to gain a better understanding of customers, get a detailed grasp on internal operations, and even help predict broad business trends. The pressure is on.

It’s a confusing time, but with every paradigm shift, there is tremendous opportunity.

The writer is Marketing Leader: Software Group, IBM India/S Asia

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