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Driving Digital Marketing Performance With the Right Platforms, People, and Processes integrate to accelerate Digital Marketing value CONTENTS 3 5 6 14 17 18 19 Introduction Leadership Committee Key Findings Expert Commentary About the CMO Council About Acceleration About Our Partners © Copyright CMO Council. All Rights Reserved. 2012 2 integrate to accelerate Digital Marketing value INTRODUCTION With more than $1.5 trillion spent on marketing and communications worldwide, there are significant incentives for global enterprises to improve the way they allocate, optimize and justify spend. Consider consumer adoption rates of digital engagement channels: • 75.6% of the US population is online • 2/3 of web users will use social networks • 70.8% of web users will watch online videos • 88.1% of web users over the age of 14 will browse or research products online • 83.9% of these researchers will make at least one purchase Without question, marketers are at that apex of this digital evolution as organizations are rallying around technology. Functional marketing silos are being imploded and tightly connected for improved collaboration, integration, workflow and use of critical data using advanced marketing automation platforms. Determining the optimal way to go to market has never been more challenging. A multitude of new media channels and online/mobile avenues of market access are fragmenting media buys. Channels of distribution are multiplying, requiring broader, more diverse and customized marketing support. Sophisticated customer information gathering and database marketing techniques are seeing big shifts of marketing resources into areas that allow for improved behavioral targeting and personalization to optimize response and revenue potential. Market pace and velocity requires more efficient and intimate online customer engagement, quicker product uptake and viral affirmation through social and shared interest networks, as well as greater prominence and cost-effective prospect acquisition through web sites and contextual search optimization, web content delivery, and pervasive mobile connectivity with customers. Today’s marketing planning process requires better data integration and analytics, more accurate forecasting and predictive modeling, higher levels of marketing group participation and accountability, as well as the deployment of closed loop campaign performance dashboards. This will be driven by a wider embrace of marketing automation platforms processes, continuous business activity monitoring and intelligence gathering across all customer touch points, interactions and transactions. Customer expectation in the digitally driven world demands targeted, relevant meaningful engagement at every turn. As more customers consider defection from brands because the information, content, services, promotions and engagements lack relevance and resonance, marketers must look to data-driven strategies that deliver the right message to the right customer at the right time...and in the right channel. Marketing must forge and reinforce the ties between technology, customer data and customer experience. Given the significant shift and re-allocation of marketing dollars into interactive digital media channels, the CMO Council has set up a dedicated research center focused on measuring and tracking the effectiveness, relevance and value of online marketing programs and spend. This new entity, the Digital Marketing Performance Institute (www.onlineperformance.org), will examine and advocate the need for more unified and integrated approaches to managing and optimizing the fragmented interactive marketing discipline. © Copyright CMO Council. All Rights Reserved. 2012 3 integrate to accelerate Digital Marketing value The report and insights that follow are the first salvo into this ongoing dialog. Digital marketing will continue to evolve at this rapid, frenetic pace. New engagement channels will emerge. Solutions like email and CRM platforms will take on the din of “traditional digital marketing tools”, as new more glamorous channels like social media in all of its forms from Facebook to Pinterest and back again to YouTube continue to captivate customers. The first, and likely most critical step to establishing a long-lasting digital strategy is to develop a integrated infrastructure that allows for flexibility and answers key goals for the business. Chief marketers are in need of consultation, guidance, and direction when it comes to helping them specify, implement and adopt digital marketing architectures, strategies, practices and solutions. They are challenged to staff and resource digital marketing programs, integrate offline and online campaigns, as well as unify disparate marketing functions, data sources, and go-to-market processes. More importantly, they have to be effective at making a business case to management on how digital marketing investment and migration will drive business performance, increase customer lifetime value and retention, as well as create more adept and adaptive organizations. Big data-driven, marketing automation is no panacea. It is filled with pitfalls, problems and potholes. Understanding the requirements and mapping and modeling the journey takes outside expertise and knowledge from an unaligned resource. This report looks to help marketers take that first step towards leaping over the competition and ramping up the value from digital marketing investments. It is truly about accelerating the process to more efficiently reach a point of success. What this report truly outlined is that everyone in the process – Marketers and C-Suite management alike – are ready for take-off. Marketers are armed with a box full of pins. What is missing is the right pincushion that can tie all of the technologies and the data together. © Copyright CMO Council. All Rights Reserved. 2012 4 integrate to accelerate Digital Marketing value Leadership committee Tim Suther Lynne Brum Mark Phibbs Andisa Ntsubane Senior Vice President, Chief Marketing Officer Acxiom Senior Director, APAC Marketing Adobe Markus Kramer Global Marketing Director Aston Martin Michelle Waldgeir Vice President, Marketing Astrum Solar Drew Panayiotou Senior Vice President, US Marketing BestBuy Rich Brayer Vice President, Marketing Car-X Auto Service Richard Stamets Strategic Marketing Executive Specialty Solutions Group (a Chartis company) Steve Carchedi Chief Marketing Officer GE Healthcare–MDX Nicholas de Kouchkovsky Chief Marketing Officer Genesys (Alcatel-Lucent) Charlie Cole Former Vice President, Online Marketing Lucky Brand © Copyright CMO Council. All Rights Reserved. 2012 Vice President, Marketing and Corporate Communications Metabolix Director, Marketing and Communicatons Microsoft-South Africa Robert Solomon Senior Vice President, Chief Marketing Officer Outrigger Enterprises Group Lapo Paladini Senior Vice President, Chief Marketing Officer PerkinElmer Robin Saitz Senior Vice President, Solutions Marketing PTC Suaad Sait Chief Marketing Officer Rackspace David Friedman President, Marketing Sears Isaac J. Turk Director, Database and Marketing Analytics SiriusXM Radio, Inc. Roger Menz Vice President, Global Marketing Sony Music Entertainment Gina Testa Vice President, Graphic Communications Xerox Corporation 5 integrate to accelerate Digital Marketing value Key Findings By the year 2017, Gartner predicts that the chief marketing officer (CMO) will outspend the chief information officer (CIO) on IT. Gartner points to projected increases in marketing budgets in the neighborhood of 9 percent, while IT budgets are predicted to increase by almost half that rate at 4.7 percent as a key contributor to this shift in technology budget control. The analysts also believe that the real proof is that marketing—from operations through campaign execution—has become increasingly technology dependent, and that the rise of big data will continue the push toward a dominant digital marketing future. What is missing from this story of marketing dollar domination is the rationale driving the organization to rally around digital marketing investments. In reality, digital marketing investments to date have already been sizable, and while that amount is arguably less in total spend compared to the large advertising budgets of the past, new digitally directed marketing investments are being made with an intentional effort to realize the opportunities in efficiency, engagement, and intelligence that digital marketing holds. Many marketers are looking beyond the investments of today and are focused on what will be required to leapfrog the competition and gain a true competitive edge in tomorrow’s age of an even more demanding, mobile, and highly digital consumer. To add some body around this digital marketing dialogue, the CMO Council, in partnership with digital marketing consultancy Acceleration, engaged in a thought leadership initiative to better understand where and how marketing technology budgets were being applied specifically to digital marketing platforms and applications, and where the opportunity lies to accelerate performance and business outcomes through digital marketing. Dubbed “Integrate to Accelerate Digital Marketing Value,” the six-month program includes interviews with digital marketing leaders who are pushing the bar upward in the strategy, measurement, and outcomes of digital marketing investments. The program also surveyed more than 200 senior corporate marketing leaders to gain a better understanding of the platforms, people, and processes that comprise their winning digital outcomes. What we found was a changed environment for marketers—one that has not necessarily been the norm for some time. Like never before, the C-suite is looking to digital marketing as a strategic imperative, allocating budgets and resources to fully exploit and leverage the opportunity. With this heightened expectation and support also come key challenges that marketing must begin to address. Specifically, marketing’s reluctance to fully leverage IT as a partner rather than a handyman simply on site to maintain the older systems must come to an end. Marketing must also take a step outside of the cocoon of point solutions and communicationscentered applications to focus on those data-driven engagement platforms that work to deliver a more personalized, relevant, and intelligent experience for each customer. It will only be through this bond between technology and data that real advancements for the business and marketing can be achieved. And while marketing currently has C-suite support to execute, the window to take that next leap forward will not be open forever. It must be capitalized upon now, before the next evolution of technology takes marketing by storm. © Copyright CMO Council. All Rights Reserved. 2012 6 integrate to accelerate Digital Marketing value key findings Management Support Boosts Digital Enthusiasm If we look back five years, the support for the CMO—let alone support for spending in digital marketing as a strategic business driver—was more of a wish than a mandate. In the 2007 study, “Define and Align the CMO: Taking a Measure of the Chief Marketing Officer,” the CMO Council asked CEOs, presidents, and board-level executives where and how marketing was impacting, influencing, and driving the business. While marketing officers held high levels of influence and clout in decisions around branding, marketing planning, and operations, digital marketing (or eMarketing, as it had been dubbed then) was viewed as a more tactical or executional decision. And at the time, this seemed perfect for the CMO as marketing had yet to earn a high level of clout within the C-suite, being largely seen as a branding or advertising functionary. Those savvy corporate leaders had started to apply a new measure to the top marketer spot, demanding higher levels of business acumen, financial knowledge, and a digital marketing preparedness that would allow a CMO to recommend, identify, and implement new media and digital marketing solutions. As CEOs and board executives were asked to rank the requirements of tomorrow’s CMO, the top four requirements were: 1. Have strong business acumen. 2. Possess exceptional measurement and analytical abilities. 3. Be the connective tissue of the organization—bringing together far-flung disparate tools, solutions, and resources. 4. Have superior technology and Internet expertise to specify, deploy, and quantify the business impact of new and emerging digital solutions. Today, marketers have gained credibility and influence, having added the measurement, visibility, and operational rigor to marketing that the C-suite had once deemed as lacking. Further, marketing has elevated the digital marketing conversation from one that was largely tactical into a strategic focus that is embraced by C-level executives. When asked to what degree digital marketing had become a topic of conversation and focus for interaction with C-level executives or line-of-business (LOB) owners, 20 percent of marketers state they have a mandate and the budget to execute while 42 percent say they have strong interest and active support at the LOB level. But while 23 percent admit that management is still trying to understand where digital fits into the overall business, it is clear that digital marketing is a hot topic around the C-suite table. This clear support has been largely driven by the belief that digital marketing will play a transformative role over marketing as well as the business at large. Specifically, management is looking for increased marketing performance and clear ROI through more efficient digital media channels; better customer engagement that is more robust thanks to the adoption of personalization campaigns that leverage customer insights and analytics; as well as a call for marketing and engagement to match the current demands of customers who expect live, ondemand, and always-on engagement opportunities with brands and companies. “Consumers want transparency across the channels, and that requires technology and channel management and strategy; that’s something we value highly and monitor carefully,” says Robert Solomon, Senior Vice President and Chief Marketing Officer for Outrigger Enterprises Group. As a busy hotelier and resort destination, marketers like Solomon must implement applications with © Copyright CMO Council. All Rights Reserved. 2012 7 integrate to accelerate Digital Marketing value key findings the ability to extract actionable and insightful information, especially those that illuminate crosschannel behaviors to deliver the ultimate customer experience. This reinvention of the experience through data in a timely, profitable, measurable, and efficient fashion has only amplified the desire and excitement of senior management. Especially enthused are LOB heads, who are likely seeking ways to amplify the new product launches that were slow to roll out in the depressed economy, but were rolling out with a vengeance over the past 12 to 18 months. When asked which digital marketing processes and functions had the most appeal, management and LOB leaders pointed to: • Customer data integration, analytics, and personalization of market interactions (62 percent) • Website performance improvements and richer online engagements (61 percent) • Lead acquisition, conversion, and upselling/cross-selling of customers (60 percent) • Behavior-based insight gathering for more effective segmentation and messaging (41 percent) • Search marketing and online advertising optimization (39 percent) Accelerated performance across go-to-market activities and increased visibility into demandgenerating campaigns will only strengthen the resolve of LOB owners to throw their support behind digital investments. However, this may also be perpetuating a more fragmented digital infrastructure as different segments of the business gravitate to individual point solutions in the digital portfolio. Application Fragmentation Threatens Digital Acceleration While a steady stream of senior support is boosting marketing’s resolve in seeing the digital transformation through, the rapid evolution of technologies, disconnects between point solutions and legacy infrastructure, and increasing complexity across technology can threaten the integration of digital marketing across the enterprise. More than one-third of respondents indicated that their current state of digital marketing adoption and integration was a random collection of point solutions and not very integrated across the enterprise. And as 44 percent of marketers see their own digital strategies as still being at an exploration level, with teams continuing to evaluate all options, few are leading the pack in expertise or integration. Interestingly, those same marketers who lament over a largely fragmented digital marketing portfolio are also the same respondents who failed to include a key internal resource that could help establish a more integrated and aligned roadmap—the CIO and IT team. Only 32 percent are teaming with IT to specify needs and requirements, and even fewer (26 percent) are developing multidisciplinary task forces to lead the assessment process. When asked how marketers were teaming with the CIO and IT group to map digital marketing architectures and roadmaps, 48 percent are seeking insights on existing infrastructure, and 37 percent want to better understand how legacy systems can interface with new marketing solutions. Again, joint task forces are seldom utilized, as only 32 percent of marketers have teamed with IT to lead initiatives. Consider the assessment and teaming practices of those marketers who identify themselves as being high-performance, data-driven digital marketers. Of these digital gurus, 26 percent © Copyright CMO Council. All Rights Reserved. 2012 8 integrate to accelerate Digital Marketing value key findings are developing a combined task force to create roadmaps and evaluate solutions. They are also including the customer in the platform assessment process, as data-driven leaders place equal emphasis on the customer’s own preferences in engagement channels and research about the marketing technology landscape. This is compared to the general respondent group who prefer to turn to internal marketing teams (59 percent) or source best-practice studies and analyst reports (51 percent). Best-practice leaders have indicated that this strategic partnership is critical at numerous stages of the digital development process. “Our current IT infrastructure has allowed us to go to market more efficiently than before,” explains Markus Kramer, Global Marketing Director for Aston Martin. “Because there is no real barrier between the marketing and IT teams, we’ve modeled an architecture that fits our organizational size and makes it easier to deal with the complexities we face.” The connection has proven to be especially valuable through the budgeting and planning processes, especially when marketing must make a business case for the proposed IT investments. Despite only 24 percent of marketers turning to IT to assist in making a business case for investment, bestpractice leaders are often turning to IT and even reaching further across the enterprise to ensure value, ROI, and real benchmarks are in place for every investment. “In determining our digital investments, the business, finance, strategic analytics, and IT teams collaborate on a business case that is based on estimates and benchmarks across cost per acquisition through ROI for a given campaign or program,” explains Isaac Turk, Director of Database Marketing and Analytics for SiriusXM Radio, Inc. “If an area proves to be effective, management is willing to increase spending in that area until the marginal economics dictate otherwise.” Marketing may also be missing an opportunity to access data and insights into disparate customer data resources and to incorporate these insights into existing platform usage. Understanding how organization resources and customers are using and engaging—or more specifically, are not using and engaging—with technologies can provide even deeper insights into where investments can be eliminated or augmented. Regardless of this lack of partnership, marketers are continuing to make a bold path into continued investment into digital platforms. Relative to digital marketing success, point solutions lead the way. A notable 67 percent of respondents have found email marketing the most effective, and they plan on continuing investments over the next 12 to 18 months. Launching Beyond the Comfort Zone While email solutions, web analytics, and even social media monitoring tools have been in the marketing ecosystem for some time now, respondents indicate that continued investment or reinvestment will continue. New advancements in the speed, efficiency, and functionality of these platforms and applications continue to entice marketers to upgrade or advance to the next great solution that will continue to drive digital effectiveness forward. But quite unintentionally, marketing has landed in a comfort zone of sorts, continuously looking to improve and refine known communication, web, and engagement applications and often overlooking critical drivers to overall business and marketing operations improvement. Take, for example, the three key questions we asked marketers about the individual digital marketing solutions available to them that have shown success, and which of these platforms are integrated and aligned across the organization. © Copyright CMO Council. All Rights Reserved. 2012 9 integrate to accelerate Digital Marketing value key findings Top Five Responses Currently Deployed Expect to Deploy Integrated and Aligned Applications 1 Email Social media monitoring Email 2 Web analytics Marketing analytics Web analytics 3 Online advertising Email Social media monitoring 4 Social media monitoring Web analytics Demand generation 5 Demand generation Demand generation Campaign execution From these three questions, a pattern begins to emerge that may indicate that rather than branching beyond core functions and digital marketing expertise, marketers are sticking with points of tactical execution that have been proven over time. The data also suggest that while platforms outside of this comfort zone are on the marketing radar, they require a new or even more advanced level of talent or expertise than what is currently available to the marketing function. The least utilized, least invested in, and least integrated and aligned applications are also those platforms that are largely dependent on cross-functional collaboration and partnership, that apply additional measures and metrics to harder-to-manage processes, or are representative of advanced (and perhaps too advanced) analytics. Bottom Five Responses Currently Deployed Expect to Deploy Integrated and Aligned Applications 1 Marketing supply chain management Marketing supply chain management Email 2 Multichannel contact and service center Viral word-of-mouth marketing Marketing supply chain management 3 Agency performance management Agency performance management Mobile relationship marketing 4 Social media monitoring Multichannel contact and service center Multichannel contact and service center 5 Attribution modeling Attribution modeling Agency performance management © Copyright CMO Council. All Rights Reserved. 2012 10 integrate to accelerate Digital Marketing value key findings Each of these applications also has a key place in the overall marketing operational picture, adding management and rigor to often out-of-control processes that can lack visibility and accountability. For example, integration of a marketing supply chain management tool can reduce operational overhead and manage and measure the impact of individual marketing campaigns and creative executions while also applying keen procurement and finance-based measures to the overall marketing operational process for managing consumables. Yet few marketers really understand what the nature of their marketing supply chain is—and getting a handle on this situation will require involving groups as far reaching as finance, operations, procurement, and customer service. Often, it is easier to focus on the known variables like web analytics. Turning back to those best-practice leaders driving engagements through data, it is interesting to note where investments will be made in the next year. According to this elite group, the next 12 months will see investments in marketing resource management applications (27 percent), campaign and workflow management tools (32 percent), email (38 percent), and social monitoring (46 percent) re-investments, opting to focus more on those technologies that can advance the process and deepen customer engagement. “We learned that it doesn’t make sense to put all of your eggs into one basket; you need to create various programs, and they need to be measureable,” says Drew Panayiotou, Senior Vice President of US Marketing for Best Buy. “We use a number of standard metrics, but we need to get better in how we use them.” According to Rich Brayer, Vice President of Marketing for Car-X Auto Service, a core challenge to developing an advanced digital marketing strategy is the sheer velocity at which both consumer preference and technological advancement are evolving. “What worked two months ago may no longer work, and we don’t always understand why. We’re constantly measuring ourselves against standards that may have changed,” Brayer explains. “Sometimes, it isn’t a matter of having technical knowledge or expertise; it’s a question of whether we understand what people are telling us and why things change.” This makes aggregation of cross-functional customer data and intelligence critical to an optimized digital marketing architecture. Another core component is tapping the right talent to monitor, analyze, measure, and execute on programs across this integrated system. And acquisition of talent in this digital age has become more difficult than the acquisition of customers for some marketers. Coupling Top Technology With Top Talent Beyond the technology, platforms, or applications, talent often emerges as a key challenge and roadblock to those marketers looking to take the next step into digital marketing performance and excellence. Let’s consider the resources marketing is turning to in the process of assessing and identifying key digital marketing technologies. Internal marketing resources tend to be the primary experts when it comes to developing a digital marketing architecture, but marketing executives also admit they are not wholly satisfied with the outcome and result of this resource. A staggering 77 percent of marketers said their primary source for evaluating and specifying technologies was their own internal team, and an additional 46 percent are turning to vendors and solutions providers to provide platform intelligence. Only 17 percent are turning to expert consultants that specialize in digital marketing—ironically, the same percentage of marketers who are inclined to turn to their CIO for insights. © Copyright CMO Council. All Rights Reserved. 2012 11 integrate to accelerate Digital Marketing value key findings The most common complaint among marketers who find themselves disillusioned with their current resources is that as technology is speeding forward, talent development is not advancing at the same frenetic pace. Roger Menz, Vice President of Global Marketing for Sony Music Entertainment, notes, “While enthusiasm and excitement over new and shiny platforms is exceedingly high, the level of real understanding and expertise is just not fully developed. And enthusiasm and excitement does little to sway the minds of management who is looking for a dollars-and-cents business case to substantiate the dollar and overhead investments.” As marketing is also reinvesting to spur on continuous improvement in certain key areas, the next step up in talent is hard to develop. “Before, you had big CPG companies with people who were proficient in brand management, but now there’s no training ground for digital; no one is developing savvy digital marketers with any degree of velocity or volume,” concludes Panayiotou. This frustration over talent development is evident, as 23 percent of marketers identify recruiting the right talent to run advanced digital marketing programs as a top concern or challenge already being experienced. Talent can certainly be trained, however, and as digital advancement continues, more highly trained and skilled digital gurus will emerge. But this talent must be empowered to fully leverage data and internal partners to maximize the potential of the technologies in which marketing will continue to invest. While budget is a clear and very real constraint, a lack of integration and alignment around far-flung technology platforms can actually do more to confuse, dissect, and separate the digital marketing architecture. Conclusion Like never before, marketers have reached an inflection point for digital marketing. The choice will be to continue to hover in the comfort zone of technologies and applications, happily continue to perfect and reinvent core digital applications, or to take the next evolutionary leap to intentionally map and develop an integrated digital marketing program that seamlessly binds technologies with customer data. This architecture must be one that allows for the ebb and flow of talent, can adapt to new advancements in individual solutions or functions, and has specific points of metrics and measurement to allow marketing to monitor and continuously improve the marketing process and the customer experience. Without this roadmap, marketing will continue to make monstrous investments into disconnected point solutions that can only hope to stand alone, being connected by the sheer force of will exerted by marketing leadership. If marketing is to truly fulfill the business mandates set forth by management, the digital marketing outlook must do more with customer data; prime the sales pipeline with qualified leads; provide multi-channel, robust customer experiences that can be tracked across all cross-functional touch points; and adapt quickly. In this current state, marketing has an abundance of pushpins at its command, but it seems to be missing that ideal pincushion to house, organize, and eventually optimize placement. Like any good structure, digital marketing requires the right underpinning that can withstand even the most shocking and dynamic changes. And as advancements in technology promise efficiencies, greater productivity, and improved visibility into the business operations of marketing, management will respond with even greater support—and possibly even greater budgets—to continue digital marketing’s advancement and prominence. © Copyright CMO Council. All Rights Reserved. 2012 12 integrate to accelerate Digital Marketing value key findings The key issue at hand today is not which email platform to deploy or even how to aggregate social data. The key issue is identifying the right resources and structure to support all of these point solutions in a strategy to integrate and align digital marketing across the organization. Once this architecture is mastered, organizations have the opportunity to advance beyond the competition and assume the role of a segment, industry, or business leader. The Keys to Data-Driven Excellence Seven percent of respondents indicated that they excelled at leveraging data as a core foundation to their digital marketing programs. These data mavens have similar characteristics that have helped drive them to this position, ranging from the level of partnership with IT in developing strategic roadmaps to the insights and intelligence that are gathered from customers to help support digital marketing investments. Here is a brief overview of the hallmarks of these digital data-driven leaders, derived from the responses provided in this survey. Hallmarks of Data-Driven Digital Marketing Leaders: • They enjoy a high level of approval, conversation, and strategic support for digital marketing adoption. • These leaders have formed a taskforce with IT to lead and develop integration plans and strategies. They are also leveraging IT to provide insight into application use and adoption. • Instead of primarily turning to internal voices, data-driven leaders turn to their customers (30 percent) to determine their customers’ preferred methods of engagement and digital communication. • In the next 12 months, they will implement marketing resource management applications (27 percent), campaign and workflow management tools (32 percent), email (38 percent), and social monitoring (46 percent) re-investments. • They are laser-focused on the delivery of timely, relevant, and targeted communications (72 percent). • Their measures of success include metrics around conversion and closure rates (35 percent), upsell and cross-sell opportunities (10 percent), and response rates (55 percent) as compared to the general information gleaned from campaign impact and effectiveness measures (52 percent), and web search and analytics (39 percent). © Copyright CMO Council. All Rights Reserved. 2012 13 integrate to accelerate Digital Marketing value EXPERT COMMENTARY FROM Among winning marketing organizations, the promise of digital marketing has arrived, yet architecting and integrating the underlying foundation is not easy to envision or develop. Nonetheless, embracing the digital dimension of your brand relationship with customers is the imperative. The real issue lies in marketing’s ability to move forward in a real effort to leapfrog the competition and truly build business momentum through digital marketing performance. But where is the best place to start? In the next 18 months, we recommend focusing on three key areas that—when combined—will provide you with the agility and strength to succeed in building your brand with powerful digital marketing technology. 1. Invest. Make key investments today to be ready to execute your competitive strategies. Expand your digital capabilities ahead of the curve with best-practice techniques, extensible tools, and flexible expertise. 2. Enrich. Cultivate your cross-channel metrics and interactions while protecting your highvalue digital customers. 3. Establish. Avoid the appealing but dangerous social-internship pitfall. Moving forward on these building blocks brings marketing organizations mid-term advancement and long-term competitive advantages. The key benefits and outcomes include clear accountability of marketing investments, customer-driven intimacy, and increases in lifetime value of the brand’s digital consumers. 1. Make Investments in Digital Capabilities to Ensure Readiness Software as a service (SaaS) offerings and the era of “big data” have presented new options, yet the fundamentals remain. To achieve a successful return from your investments in digital marketing technology, you must have strength in the cornerstones of your infrastructure, which should include: • Technology tools • Data accessibility and protection • Business processes • People (staff and extended experts) New marketing requirements demand even more flexibility and quicker deployment of offensive and defensive marketing strategies. When achieved, this creates the competitive edge in digital brand experiences. New revenue and time to market become the key measures. Without a reinforced and solid infrastructure, areas of vulnerability will become readily and painfully visible. The typical weaknesses in this area are 1) disconnects in point solutions, 2) untamed customer data due to a matrix of ownership with agencies, and 3) inflexible and under-powered technology and lacking expertise within your company. The solution is to plan for your broader, longer-term capabilities, including: 1) implementing technology tools and data integration/management, 2) developing efficient workflows, and 3) committing to talented experts who will connect with and turbocharge your existing team and agencies. At Acceleration, we call this Enterprise Architecture Planning. It requires collaboration between key marketing executives and their C-level counterparts to articulate their digital marketing vision, and then we design the infrastructure plan that will support the execution of the CMO’s vision, with each phase proving a positive return. © Copyright CMO Council. All Rights Reserved. 2012 14 integrate to accelerate Digital Marketing value 2. Cultivate Your Cross-Channel Customer Relationships at Higher Levels of Trust Marketing often looks through one of two strategic lenses—acquisition or retention programs. But the real opportunity is to look at these two situations through the eyes of unified and augmented customer data to drive performance across both strategic situations. The retention situation: Digital customers are created across multiple touch points. Although email is your workhorse and easy to measure, your personalized website internal ads or your Facebook initiative may be contributing to the most valuable new customers. The good news: It’s likely that your current web analytics tool set can be extended to provide an Integrated media measurement environment. The outcome will be the equitable allocation of costs and relationship value to the collection and sequence of interactions, often referred to as attribution modeling. The acquisition situation: Digital marketers are aggressively moving toward buying audiences in real time. This means that data is the new fuel of digital marketing. This has everyone, from ad networks to data providers, scrambling to own that data and use it to their advantage. That means nearly every third party serving an ad or widget on your site is attempting to gather and reuse your customer and visitor data, either secretly or openly. Not only is this data and value leaking from your business, but it also increases the legal risks relating to new legislation (UK Cookie Law and USA Do Not Track Legislation,) which controls the approval, collection, and use of data. More good news: Best practice and legal compliance are now affordable and enabled through a new category of digital marketing technology called customer data management. Acceleration offers expert consultation to establish an environment of procedures and automation to protect your digital customer data assets and—most importantly—your brand. In summary, we recommend that you are equipped with state-of-the-art customer digital data management, privacy management, and cross-channel optimization. While much of this can be done internally, many organizations find that they lack expertise in their resources to be able to ramp up quickly. For many of our own clients, we have filled that void, applying these solutions in practical and tangible ways. The key is really to make the commitment to accelerating customer engagement through customer data and activating the right technologies to make these strategies a reality. The best news is that it can be done. 3. Establish Your Enterprise Environment for the Business of Social—Fast Moving and Cross-Functional The most common mistake we have encountered in the social media management era is famous brands hiring interns to handle their social initiatives. This has been disastrous, and we often find that instead of working to optimize social engagements, we must help our clients recover. Honestly, our preference is to help you avoid this mistake all together and identify a far more effective path forward to achieve success with the business of strategic social media. There are critical strategic areas in social media that you must take into consideration for effective campaign development through ROI measurement. In all cases, social media campaigns require the coordination of multiple resources, both internal and external to the organization. Effective social media campaign operationalization is a multidisciplinary, multi-departmental effort inclusive of these components: • Promotion and social advertising platforms, such as Buddy Media, Unified, SocialFlow, Adobe Social, and SocialTwist © Copyright CMO Council. All Rights Reserved. 2012 15 integrate to accelerate Digital Marketing value • Community management platforms, such as Lithium, Sprinklr, ExactTarget SocialEngage, and Salesforce.com/Radian6 • Measurement and analytics, such as Adobe Social/SiteCatalyst, other web analytics platforms, various web services/APIs, data sources, and custom dashboards creation • Monitoring and engagement of communities, such as social/PR communications agencies like Fanscape, Likeable Media, Cake, Emanate PR, and WhisprGroup • Strategic listening via platforms and advanced analysis services • Creative, editorial, and branding • Voice of the customer (VoC) integrations with customer service operations • Data management platforms with social CRM tie-back to enterprise customer data warehouse To define a framework and begin incorporating the relevant components listed above, we have recommended to leading brands that they start by: 1. Performing strategic market assessment and research for potential social levers 2. Extending the research to influencers with traditional and digital PR 3. Developing an editorial calendar, timeline with content, and distribution strategy 4. Investing in both paid and corporate-owned media support plans, PR, email sponsored stories, social ads, and paid search driving Facebook interactions 5. Designing the tracking method for measurement and analytics 6. Setting up preliminary and ongoing strategic listening to guide and refine the social presence and framework 7. Most importantly, engaging and hiring the right talent to manage and execute your social business These steps are not necessarily revolutionary. In fact, many of our clients express that identifying the technologies or assembling the right components at the right time is often the most daunting part of the process. The simple truth of digital marketing is that it cannot exist and evolve without a solid architecture and strategic framework that can tether technologies together with data to deliver on the promise of a rich, robust experience for both brand and customer. Where so many organizations begin to float adrift is when that digital marketing strategy only takes the execution or function of the technology into account. The experts and consultants at Acceleration work with brands around the world to architect, orchestrate, and implement marketing technologies that enhance the brand and boost the business. Considering the sheer velocity at which digital technology and customer experience are racing toward each other, marketers cannot afford to wait for a framework to grow organically. It must be an intentional, strategic, and mandated decision to move forward. At Acceleration, we believe you can move forward…and move forward fast. © Copyright CMO Council. All Rights Reserved. 2012 16 integrate to accelerate Digital Marketing value About the CMO Council The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership, and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide range of global industries. The CMO Council's 6,000 members control more than $300 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and its strategic interest communities include more than 20,000 global executives in 110 countries covering multiple industries, segments, and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia-Pacific, Middle East, and Africa. The CMO Council's strategic interest groups include the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE), LoyaltyLeaders. org, Marketing Supply Chain Institute, Customer Experience Board, Digital Marketing Performance Institute, GeoBranding Center, and the Forum to Advance the Mobile Experience (FAME). More information about the CMO Council is available at www.cmocouncil.org. © Copyright CMO Council. All Rights Reserved. 2012 17 integrate to accelerate Digital Marketing value About aCCELERATION Acceleration has 12 years of technical expertise in designing and delivering digital marketing solutions that provide quick improvements plus long-term ROI. The company architects digital marketing and publisher ad solutions, implements and integrates optimal technologies, and orchestrates efficient operational delivery to keep companies up to speed with multi-channel consumer engagement and ahead of the competition. Acceleration has a breadth of prominent technology vendor partnerships across analytics, mobile, social, email, and advertising systems, as well as an extensive client base featuring many of the world's largest digital marketers and publishers. Acceleration has experts located on four continents with local and global capabilities to deliver proactive digital solutions. Learn more at www.acceleration.biz. © Copyright CMO Council. All Rights Reserved. 2012 18 integrate to accelerate Digital Marketing value OUR PARTNERS The only fully integrated North America-based global newswire, Marketwire Inc. is a fullservice partner to IR, PR, and MarCom professionals seeking premier distribution, media management, multimedia, and monitoring solutions. Marketwire's customer-centric corporate philosophy focuses on being the best by infusing every aspect of its business with the following core attributes: precision, adaptability, innovation, and simplicity. Marketwire delivers its clients' news to the world's media and financial communities. With a reputation for technological leadership, Marketwire offers innovative products and services—including social media, search engine optimization, dashboard mobile financial, news dashboard coverage reports, exclusive access to networks such as the Canadian Press Wire Network, Easy IR, and Easy PR workflow solutions, and more—that help communication professionals maximize their effectiveness while ensuring accuracy and best practices. Having merged companies (Market Wire and CCNMatthews) in April 2006 and enjoying a combined history of 25 years of service, Marketwire is now majority-owned by OMERS Capital Partners, the private equity arm of one of Canada's largest pension funds. Anyone on your team can build, send, and analyze surveys. Our goal is to make difficult things simple so you can focus on research rather than software. Qualtrics Research Suite has become a standard for organizations of all kinds to engage in any type of data collection, including market research, voice of the customer, employee feedback, customer engagement, website feedback and point-of-sale surveys. Organizations use this data to make better business decisions that increase brand recognition, customer loyalty, employee satisfaction, and overall revenue. © Copyright CMO Council. All Rights Reserved. 2012 19