After lunch and a cool magic quadrant discussion on enterprise social tools (no Bloomfire ) I hauled it over to the Yacht Club in the nice Florida weather to hear from Yvonne Genovese to hear about how Marketing and IT can work together.
She started with saying marketing is art supported by science and IT is a science supported by art (not sure I fully agree on either, but good analogy). She then went to the top technology investment priorities and the top three are all customer creation and retention related.
Yvonne then said that marketing is starting to be more 50/50 art and science. She discussed the four scenarios that the IT/marketing relationships:
- Independence – keep all budgets separate
- Collaboration – jointly owned projects
- Secession – add a CDO
- Innovation – new teams and projects for the innovative items
Don’t split the customer message or customer focus – no split customer experience. On average 10.4% of average revenue is spent on marketing. Marketing budgets growing at about 9% per year. Duke and IBM who also do a CMO study have even higher numbers.
New channels have appeared (especially Pintrest) that have awoken Marketing to the new digital Marketing reality. Moving from 1 to many to 1 to 1 on the digital channels.
These channels have dislodged the marketing equilibrium. This impacts how markets are defined, and how we move people through the sales funnel.
2.5% of revenue is being spent in digital marketing on things like digital advertising, content creation/management, search marketing and paid search, website, email marketg, Analytics, social networks, mobile marketing, commerce experiences, video production, company blog. Content marketing is a renewed method for getting the customer attention – this is the next thing – move over big data, big content is coming! Also, commerce experience is going to move to too of the list!
The four areas to customer engagement: Increasing channel complexity, content creation and migration, digital commerce, digital experiences. Need to implement, manage, coordinate and measure messages on paid (TV, mail, radio), owned (web, mobile, email) and earned (social) media channels. How can we get to the earned media? Have the right content at the right time and engage the right people.
Need to engage in social marketing: put out content, engage with customers, collaborate, measure and optimize. Like a football game – practice, practice, practice your plays before the game. Authentic engagement are critical to social marketing success with real content. Only 12% of marketers give IT a role in social marketing. Social marketing held back by a skills gap.
Mobile marketing – marketing to the individual. Time, context, location, community. Just finished mobile marketing survey. Mobile commerce, websites and advertising is half of attributed revenue. Low adoption vs. Privacy is the main barrier for mobile. Companies are doing this in house and not outsourcing the function (pendulum has swung). Mobile optimization via analytics for websites and native apps (how do we overcome low adoption).
Marketing Analytics – what are the digital breadcrumbs, what has a customer purchased, etc. 21% is allocated to marketing analytics. 42% comes from external sources. Are trying to continuously segment customer with increasing sources of data to better market to them.
Questions marketing is asking “What happened?”, “Why did it happen?”, “What is happening”, “Why is it harping right now?”, “What is likely to happen?”, “what should I do about it?” Need real time, predictive and prescriptive analytics. Moving marketing away from art to art plus science. Need to be able to solve problems in real time.
The ultimate goal is to monetize digital marketing through commerce. Up to half of digital marketing outsourced. 70% of companies have Chief Marketing Technologist – 80% are in marketing. New CDO are reporting into marketing.