* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download customer
Revenue management wikipedia , lookup
Multi-level marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Product planning wikipedia , lookup
Marketing channel wikipedia , lookup
Social commerce wikipedia , lookup
Viral marketing wikipedia , lookup
Marketing research wikipedia , lookup
Marketing communications wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Sales process engineering wikipedia , lookup
Target market wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Green marketing wikipedia , lookup
Multicultural marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Street marketing wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Digital marketing wikipedia , lookup
Global marketing wikipedia , lookup
Marketing plan wikipedia , lookup
Marketing strategy wikipedia , lookup
Direct marketing wikipedia , lookup
Services marketing wikipedia , lookup
Customer satisfaction wikipedia , lookup
Sensory branding wikipedia , lookup
Customer relationship management wikipedia , lookup
Customer experience wikipedia , lookup
CONTEXT, COMMERCE + CUSTOMER Best Practices to Exceed Expectations Report | June 2016 © Copyright CMO Council. All Rights Reserved. CONTEXT, COMMERCE + CUSTOMER | Report CONTENTS 3 Introduction 5 Key Findings 14 Detailed Findings 40 About the CMO Council 40 About SAP Hybris 40 About SAP © Copyright CMO Council. All Rights Reserved. 2 CONTEXT, COMMERCE + CUSTOMER | Report INTRODUCTION Thirty-two billion dollars. According to an IDC report, that is the amount of money that chief marketing officers will drive in marketing technology spend by 2018. In comparison to the $356.7 billion that Gartner estimates the global spending for enterprise software will be this year, $32 billion looks like a drop in the bucket. But for the marketer, the influence and budget allocations specific to marketing and engagement technologies is sizable…and getting bigger. Yet year over year, we keep hearing that systems are being turned over or replaced. New investments are being made into even newer systems with dangerously familiar-sounding names. Case in point: email. In the CMO Council’s “State of Marketing” studies, the same question has been asked since 2007: What automation solutions will you be deploying or redeploying in the coming year? Every year, email tops the list, with 47 percent of marketers indicating that email platforms will be the top system deployments heading into 2015. The marketing technology stack is undoubtedly growing, but is the stack connecting and integrating into the overarching technology infrastructure of the organization, or have we created yet another silo? An initial read of the situation indicated that while marketing technologies were critical to business, marketers were quick to admit they were not fully connected to other systems, let alone connected to the business strategy. In a CMO Council report, 67 percent of senior marketers admitted that marketing technologies were very important, if not essential, to marketing’s overall effectiveness and performance. But when asked how well these technologies were reaching beyond the walls of marketing and aligning with other functional areas— including sales, service, product and support—marketers had to admit that they had not quite reached technology synchronicity with other stakeholders. Only 3 percent said technologies aligned very well while the majority, 54 percent, said they were working on it. Not only was technology not aligning cross-functionally, but marketers also admitted that their marketing technology strategies were not yet fully aligning to the overarching business strategy. Yet again, marketers were working on it, as 44 percent said plans were in motion. Only 16 percent said that their technology and business strategies were in lock step. So why does this matter? Clearly, this union of marketing and technology is steaming forward…to the tune of $32 billion dollars by 2018. But as marketing “works on it,” the customer has already moved on, opting to do business with brands that consistently connect and delight. Today’s customer, regardless of whether they are a fast-moving consumer or a long-cycle business buyer, has expectations for connection, relevance and a reflection of themselves in the experiences that organizations deliver. Fail to deliver, and the price paid is to the bottom line. The answer is not as simple as ramping up technology faster or even automating more of the engagement process. In reality, marketing must look at the critical intersection when people, process and platform all intersect. This is the point at which marketing becomes relevant—where it drives value for both company and customer, and when technology stops being the difference and experience becomes the competitive differentiator. This intersection is the confluence of context, commerce and customer, empowered and enabled by marketing technologies, fueled by experiences and aligned with the customer. Identifying and optimizing that alignment sits at the center of this research. This global initiative, undertaken by the CMO Council in partnership with SAP, looks at the requirements of today’s marketing and commerce © Copyright CMO Council. All Rights Reserved. 3 CONTEXT, COMMERCE + CUSTOMER | Report landscape to understand what mindsets, technologies and strategies organizations must adopt to better meet customer demands for always-on, always-accessible engagement across the entire customer journey. Through an online audit, we examined how disconnects and deficiencies were impacting experience and where and how analytics and customer insights could create more relevant, personalized and gratifying experiences. We also made strides in understanding the impact that delivering contextual experiences through individualized personalization should have on the business. What we have learned is that despite marketing’s unwavering desire to deliver the best possible experiences to customers—both online and off—gaps continue to plague even those with the best intentions. While praise for preparation and individual campaign execution remains high, marketers have yet to truly reach a state of delivering rich, contextual experiences to customers. While marketers are more clearly defining what the customer experience is and should be, challenges across the organization threaten to derail even the best-laid plans. What follows in this report are the findings from an online audit of more than 170 senior marketing leaders from around the world, which was fielded in the first half of 2016. Of the respondents, 47 percent hold a title of Chief Marketing Officer, Head of Marketing or Senior Vice President of Marketing or Commerce, with 27 percent overseeing complex global marketing teams of more than 100 people. Some 39 percent of respondents hail from large enterprises with more than $1 billion in revenue, with 42 percent hailing from business-to-business organizations, 21 percent from business-to-consumer companies and 37 percent from hybrid organizations (business-to-business-to-consumer model). © Copyright CMO Council. All Rights Reserved. 4 CONTEXT, COMMERCE + CUSTOMER | Report KEY FINDINGS Customers aren’t content to stay in a single lane, and marketers know it. While headlines love to predict that customers are shifting from a wholly traditional engagement pattern to a totally digital one, marketers are aware that the reality is far more complex. Nearly half (47 percent) of respondents indicate that their customers engage across a multitude of channels, but when there is a problem, they pick up the phone and want immediate human attention. This immediacy of response, regardless of channel, tops the list of attributes that marketers believe are most important to delivering an exceptional customer experience. TOP ATTRIBUTES OF THE CUSTOMER EXPERIENCE Fast response times to issues, needs or complaints (75%) Consistency of experience across channels (56%) Knowledgeable staff ready to assist whenever and wherever the customer needs (52%) A person to speak with, regardless of time or location (36%) Relevant communications, promotions, recommendations and products (36%) While consistency in messaging and availability of service top the list, marketers are also aware that maintaining multiple channels of engagement and experience is also vital. But it is this race to keep pace with the growing expectations of the connected customer that is also marketing’s greatest challenge. When asked to identify the single greatest challenge that organizations would tackle in order to optimize the customer experience, 20 percent identified keeping up with expectations and demands of the connected customer while 17 percent said they would need to focus on managing and fully leveraging the data being collected. Taking a deeper look into the key challenges being faced, it is worth noting that while all respondents are facing issues around data and digital channel complexity, larger organizations are more often tackling the data dilemma—or more specifically, managing and working to more fully leverage all of the data being collected through an increasingly complex array of channels—as their top concern while smaller organizations are still on the journey of upgrading and transforming technologies. But it is the midsized company that has fallen into the ultimate gap between implementing technology and realizing opportunity from data and analytics: transforming corporate cultures to maintain a steady view and commitment to the customer. © Copyright CMO Council. All Rights Reserved. 5 CONTEXT, COMMERCE + CUSTOMER | Report TECHNOLOGY’S IMPACT ON THE MARKETING MACHINE Marketing technology has left an indelible mark on marketing, transforming not just the way in which we engage and connect with customers, but also the very fabric of how we operate, measure and accelerate the business. According to 41 percent of executives, marketing and commerce technologies have increased customer engagement by ramping up and accelerating the customer experience across all points of the customer's journey. These automation tools have also increased the ability to measure and track the performance of campaigns and engagements, allowing marketers to improve individual initiatives in real-time, according to 42 percent of respondents. TOP POINTS OF IMPACT BY MARKETING & COMMERCE TECHNOLOGY SOLUTIONS Increased measurability and trackability of programs and campaigns (42%) Increased engagements across the customer journey (41%) Automated processes and campaigns for fast deployment (25%) Connected the engagement dots (25%) Accelerated the rate of engagement at lowered cost (25%) But even as one in four marketers believes marketing technologies have accelerated the rate at which they can engage with customers while reducing costs, only 16 percent indicate that marketing technology’s greatest impact has been driving revenue growth and bottom line health. One indication as to why the bottom line isn’t directly being improved thanks to this massive digital transformation is that, despite mass investments, these platforms and processes are still only moderately aligned and connected outside of marketing’s own functional walls. Only 1 percent of respondents have achieved alignment across all marketing and commerce processes. The majority, 51 percent, are somewhere in the middle, with some processes between marketing and commerce moving seamlessly while others are a work in progress. Another 24 percent admit they are struggling to connect all of the dots. HOW WELL ARE YOUR MARKETING AND COMMERCE PROCESSES WORKING TOGETHER? 1% Extremely well: Working seamlessly in real time 3% 52% Moderately well: Some processes are seamless, others are a work in progress Not at all: Total disconnect between marketing and commerce processes 21% Very well: All processes working together most of the time © Copyright CMO Council. All Rights Reserved. 23% Not great: Struggling to connect all of the dots 6 CONTEXT, COMMERCE + CUSTOMER | Report Further, the majority of respondents (39 percent) admit that their investments, while meeting expectations in some areas, are falling short in others. Only 5 percent believe investments have exceeded expectations while some 8 percent say that their investments have been underwhelming as marketers are making adjustments to get more value from their existing investments. Despite the lukewarm review of technology value, marketers are still convinced that the time being spent managing marketing technologies is bringing value to the organization. More than half (59 percent) say that the time investment is adding value, but 42 percent of this group actually believes that there are still efficiencies to be realized so that teams can spend less time managing the complexity. Unfortunately, optimism can’t power transformation. While marketers have been focused on on-boarding new platforms, the focus has been almost myopic, solely focused on connecting points of engagement within the safety of marketing or commerce’s domain. When asked how marketing and commerce technologies have extended marketing’s view into crossfunctional insights and intelligence, 55 percent admitted that they were only now working on implementing new solutions to cross the functional divide. In fact, 17 percent admitted that they either didn’t know if this connection was possible or already knew that this connection wasn’t going well or was nonexistent. This disconnect has a direct impact on marketing’s ability to establish, manage and grow the total customer relationship. Proof of this emerges when marketers share that, despite the reliance on and belief in technology, their organizations had yet to develop processes specific to the care and fortification of the customer relationship. HOW DO YOU RATE THE ORGANIZATION'S PROCESSES SPECIFIC TO ESTABLISHING, MANAGING AND GROWING CUSTOMER RELATIONSHIPS? 3% Excellent - We have agile processes that leverage real-time intelligence to shift to meet the needs of the customer and drive collaboration and transparency across the organization. 13% Good - Our processes are well established, but we are continuously improving to help teams meet the needs of the business and the customer. 21% Not great - Processes are generally cumbersome and can get stagnant, especially as the business and customer get more digital and data driven. © Copyright CMO Council. All Rights Reserved. 2% Does not exist - What is process? We struggle to get the entire organization on the same page. 1% Poor - Processes are holding back innovation and agility, making business in today's digitally demanding market difficult and sometimes frustrating. 55% Working on implementing new solutions 7 CONTEXT, COMMERCE + CUSTOMER | Report MOVING TO THE FAST LANE If digital transformation is an organizational journey, marketing and commerce executives are clearly saying that they are entrenched in the middle lane—not quite lagging but certainly not taking strides toward excellence. Making this issue even more complex (as well as more urgent to resolve) is the reality that marketers are becoming aware that while they may be drifting between lanes, the customer has raced ahead in the pace car, constantly setting new expectations and eagerly seeking out experiences that cross industry lines (for example, the B2B customer that now expects a seamless, personalized experience similar to the one they experience through their favorite retailer) and raise the experience bar higher with every touchpoint. So what needs to happen to move the customer experience needle from “just getting by” to “exceptional every time?” And how can marketers ensure that their organizations will not be left behind? First and foremost, a data mindset shift must occur. According to survey respondents, the majority of data, analytics and intelligence being captured and gathered resides within traditionally available marketing-involved channels. TOP SOURCES OF DATA & INTELLIGENCE BOTTOM SOURCES OF DATA & INTELLIGENCE 1. Contact-level data (81%) 1. Real-time predictive (machine learning) (8%) 2. Campaign data (69%) 2. Commerce data (in-store, e-commerce behavior, cart behavior, order history, etc.) (11%) 3. CRM system data (68%) 3. Psychographic data (lifestyle, behaviors, attitudes, sentiments, values, opinions, etc.) (12%) 4. Billing/payment data (50%) 4. HR insights (team, talent and resource allocation) (13%) 5. Sales data (49%) 5. Predictive analytics (batch-based analytics) (16%) Not only are data and intelligence sources limited in scope, but the data that is being aggregated is not being fully utilized. Thinking of the totality of data that is being collected across the organization, 24 percent of respondents estimates that only 25 to 50 percent is being leveraged in real time for actionable customer insights. The data utilization leaders (only 13 percent of respondents) say that 75 to 100 percent of their data is transitioned to real-time intelligence. To be fair, nobody is truly winning this real-time intelligence race, regardless of the resources that organizations are able to put behind systems and teams. Within large organizations ($1 billion or more in revenue), 21 percent leverage between 25 and 50 percent of collected data while 39 percent use less than 24 percent of all of the data being collected. Smaller organizations (with revenue under $100 million) also struggle to fully utilize data resources as 20 percent are using between 25 and 50 percent of data while 34 percent use less than 24 percent of their data. What is behind the data waste? It would be easy to blame the data itself, and many do point to data complexity and velocity as core concerns. But it is not the greatest challenge that is holding teams back from being able to more fully utilize data for customer insights. © Copyright CMO Council. All Rights Reserved. 8 CONTEXT, COMMERCE + CUSTOMER | Report TOP CONSTRAINTS TO TOTAL DATA UTILIZATION Data is trapped in organizational silos (21%) The problem isn’t data…it’s getting the organization on board (20%) Too much data to manage effectively (20%) Data is messy (12%) Adopting an organization-wide data and analytics strategy (9%) Organizational silos—those same silos that have protected marketing’s quest to rapidly adopt and deploy engagement technologies and secure its myopic view of the customer—emerge as the top challenge that executives are looking to overcome, quickly followed by the mass and mess of data across existing systems. Marketers have also fallen prey to optimizing by channel, seeking out best-of-breed solutions by channel, only to create a random patchwork of automation solutions that pull together more of a “spaghetti” technology landscape. But interestingly, two top concerns that marketers identified are likely at the root of why these silos exist: the organization failing to adopt a holistic, organization-wide data and intelligence strategy and not having the right people and processes to turn data into actionable fuel for the organization’s customer experience strategy. CONTEXT LOST: THE COST OF STAGNATION Study after study from the CMO Council continues to point to stagnation when it comes to customer experience, data and advancing digital transformation. Marketers are "working on it." Many say they are "getting there" or are "still implementing systems." Meanwhile, the customer is moving on. What is at stake should this still water continue to rest? The very context that today’s connected customer demands as a baseline value for their business. When asked to define what a contextual experience is, marketers point to an experience that is: • Based on past action and behavior • Agile and delivers an experience in the channel of the customer’s choosing or preference • Fast and delivers value by addressing immediate needs, questions or concerns • Aware of who the customer is and recognizes that customer’s value and rewards their loyalty But marketers are simply not delivering contextual experiences in real time to their customers, regardless of channel. In fact, only 4 percent of respondents are powering every interaction in every channel with rich, real-time, personalized experiences. More than half of respondents (54 percent) are very aware that they are not delivering contextual experiences, with 23 percent of this group saying that they are not only failing to deliver, but they are also a long way from success. © Copyright CMO Council. All Rights Reserved. 9 CONTEXT, COMMERCE + CUSTOMER | Report DO YOU BELIEVE YOUR ORGANIZATION IS CURRENTLY DELIVERING CONTEXTUAL EXPERIENCES IN REAL TIME TO CUSTOMERS, REGARDLESS OF CHANNEL? 4% Yes, every interaction channel is powered by intelligencedriven, real-time, personalized experiences. 30% No; a strategy is in place, but we are still struggling to align intelligence, content and channels with the customer. 20% Almost there; we're getting systems, data and analytics in place. 23% No, we are a long way from being able to deliver contextual experiences in real time. 23% Yes, but only in select digital channels. Interestingly, it is the largest enterprises who are farthest away from reaching contextual marketing engagements as 68 percent of large enterprise executives say they are not yet delivering, with 31 percent admitting they are a long way away from success. In contrast, small organizations with less than $100 million in revenue (who also earlier admitted they are still on-boarding many of the technologies needed to amass large data stores) feel they are closer to success, with 26 percent saying they are delivering contextual experiences, albeit only in digital channels, and 43 percent admitting they are not delivering these rich, personalized engagements. Not only are organizations not meeting their customers with contextual experiences, but they are also not employing bi-directional engagement. In the rush to engage, organizations are not fully honing their listening skills. Thirty-eight (38) percent of respondents admit they are doing a poor to horrible job of listening, being either inconsistent in where and how they listen to customers or simply unable to listen across any channel. Even more troubling is that these marketers admit that even if they were able to listen and collect this data, there is little they could do to turn that raw voice of the customer into action. There are some organizations that are on the path to great listening practices, with 23 percent saying they are doing a very good or excellent job. But the majority of respondents, 39 percent, are just doing an okay job, admitting that while they are excelling at listening programs through marketing-owned corporate channels, they are struggling to integrate insights from across the organization, including those from service, support, sales and other external listening touchpoints. Predictably, as executives have largely confined customer listening initiatives (i.e., those programs designed to collect the voice, sentiment, satisfaction and intention of the customer) within the silos of marketing and commerce, the impact of these programs has largely benefited marketing campaign and engagement decisions (for example, 44 percent of marketers say that the top impact of customer listening programs has been guidance in content, channel and engagement decisions), with far less insight being shared across the organization. © Copyright CMO Council. All Rights Reserved. 10 CONTEXT, COMMERCE + CUSTOMER | Report TOP IMPACTS OF LISTENING INITIATIVES Guided decisions around content, channels and engagements (44%) Deepened relationships by creating new conversations with customers (42%) Improved results and return on marketing campaigns (32%) Helped the entire organization better understand the customer (30%) Created new products, services or solutions to meet customer needs (28%) It is worth noting that, as outlined earlier in this report, executives believe that rapid response to issues and the ability to head off problems or concerns were top requirements of an exceptional customer experience. However, when asked how listening programs were impacting the business, only 25 percent indicated that customer listening has enabled fast troubleshooting to head off issues before they become customer problems, and only 19 percent have leveraged listening as a contributor to reducing customer service and support costs thanks to proactive assessment of customer needs. THE CALL FOR A NEW CUSTOMER ECOSYSTEM Customer experience is neither executed nor owned by a single function within any organization. It is a strategy that must be understood, embraced and managed across every facet of the organization, down to individual contributors, regardless of functional group or team. With the pace of engagement innovation being set by customers themselves, organizations must rethink and realign around a new customer ecosystem that sets specific strategies and shared visions for everything from listening to data and intelligence. Without this, no amount of new technology will advance the success and impact of the customer experience. One example of where this new customer ecosystem must rally support in order to thrive is in the application of new technologies and innovations that sit just on the horizon. Big data-driven engagements, including smart recommendations and predictive models, are top of mind for executives as 61 percent of respondents say these technologies will make the biggest impact on the business. TOP EMERGING TECH INNOVATIONS THAT WILL IMPACT BUSINESS Big data-driven engagements (61%) The internet of things (37%) Digital dexterity (28%) Mobile payment (24%) Neuroscience/neurobusiness (18%) © Copyright CMO Council. All Rights Reserved. 11 CONTEXT, COMMERCE + CUSTOMER | Report But just below data sits a raft of new interactive experiences that will demand cross-functional alliances and partnerships in order to execute, integrate insights and deliver measurable (i.e., profitable) results for the organization. Chief among them are innovations specific to the internet of things, which holds the promise of expanding customer engagement beyond traditional channels. These are technologies that will open not only new avenues of listening, insight and understanding of the customer, but also new business models— including subscriptions, auto-renewals and recurring orders. The reality is that executives are well aware that, despite the excitement and hype over new technologies, they might not be fully prepared to on-board these innovations. Only 11 percent of respondents say they are ready and eagerly awaiting new technologies and engagement channels. Most (34 percent) are ready but admit to having reservations. Another 32 percent feel they are still preparing and getting ready with systems and processes. Budget isn’t the roadblock—at least not the primary one. Organizational support is also not to blame when it comes to the ability to on-board new technologies. Executives believe that the single most pressing issue, according to 31 percent of respondents, that is a blockade to on-boarding and integrating technologies is having the right team and talent to manage and optimize these new tools. It comes back to people, making the previously noted loose connection to insights and data from HR a troublesome pattern. Marketing and commerce have a unique opportunity to spearhead the development of this new customer ecosystem. The building blocks of the ultimate customer squad are already in place as respondents indicate that the top departments and external partners are already embedded into the customer data value-chain, including sales, support/service, digital, analytics and operations. But to truly transform, new partnerships and alliances must be struck, bringing new insights, intelligence and skills to the table. ON THE #CUSTOMERSQUAD NEW #CUSTOMERSQUAD RECRUITS Sales (80%) Store operations (12%) Customer support/service (71%) HR (13%) Digital (63%) Supply chain (26%) Operations (57%) Fulfillment (27%) Analytics (56%) Channel (28%) As we aggregate the internal corporate front-line touchpoints, it is time to embrace the insights and intelligence that can be added from critical resources—from HR to supply chain. Silos will be the deathblow to stellar experience. While cultures shift and operations align in the slow lane, the customer is already embracing innovations, from IoT to cognitive computing, and expecting smart recommendations across all digital channels. The new customer ecosystem demands new cultural imperatives and mindsets, new attitudes and strategies around data, intelligence and the application of insights, and a renewed commitment to a focus on customers and not just campaigns. The conversation of the one-to-one customer dialogue will soon be replaced with the mandate to deliver rich contextual experiences at every opportunity. © Copyright CMO Council. All Rights Reserved. 12 CONTEXT, COMMERCE + CUSTOMER | Report The real difference will be that this new mandate is one that is being issued by the customer versus senior leaders, stockholders or pundits. Customers are rewarding and will continue to reward organizations that heed the mandate, and they will punish those who fail to meet the expectation by taking their business elsewhere. The upside to this new customer-driven era is that every organization already has the raw building blocks for success, tucked behind functional silos and departmental barriers. Once the new customer ecosystem has been identified, applying new technologies and advancing innovations that will empower both internal and external customers should come swiftly, with higher return and value and with perhaps less aggravation. © Copyright CMO Council. All Rights Reserved. 13 CONTEXT, COMMERCE + CUSTOMER | Report DETAILED FINDINGS CUSTOMER ENGAGEMENT How do your customers prefer to engage with your organization? (Select one.) 4% 4% Our customers are traditionalists; brick and mortar, live, traditional experiences only, please. Our customers are totally digital and are often early adopters of new technologies, channels and ways to engage. 7% We are not quite sure; we don't have a clear map of where and how our customers prefer to engage. 46% Our customers engage across a multitude of channels, but when there is a problem, they pick up the phone and want immediate human attention. 15% Our customers are highly selective and have a distinct sense of why they choose specific channels to engage for specific needs, regardless of whether those channels are online or offline. 25% Our customers connect through an increasingly complex blend of online and offline engagements. © Copyright CMO Council. All Rights Reserved. 14 CONTEXT, COMMERCE + CUSTOMER | Report What do you believe are the most important attributes and elements of the customer experience to your customer? (Select top five) © Copyright CMO Council. All Rights Reserved. 75% Fast response times to issues, needs or complaints 55% Consistency of experience across channels 52% Knowledgeable staff ready to assist whenever and wherever the customer needs 46% Clear, consistent messaging and information across channels 37% A person to speak with, regardless of time or location 28% Multiple touchpoints that add value to the customer 26% Readily available, multi-channel information 25% Relevant communications, promotions, recommendations and products 23% Fast, easy-to-use tools and service options 21% Rich, robust, value-added content to engage, enrich and excite 21% Multiple online and offline channels of engagement 19% Recognition and view into the customer's history with brand at every touchpoint 17% Opportunity to discover new products, solutions or services 9% Rewards for customer loyalty and longevity with a brand 9% Social communities and networks to connect with other fans or customers 4% Always-on automated service options 15 CONTEXT, COMMERCE + CUSTOMER | Report Thinking about your strategies for customer engagement this year, what is the single greatest challenge your organization will tackle in an effort to optimize the customer experience? (Select one.) 6% 5% Making shifts and improvements to our corporate culture to maintain a steady view and commitment to the customer Bringing on or up-skilling teams to become data, analytics and engagement pros 4% Correctly allocating budgets to maximize impact 7% 19% Empowering agility and innovation while still keeping an eye on the bottom line Keeping up with expectations and demands from the connected customer 17% 8% Managing and fully leveraging the data being collected through all engagement channels Identifying the right technologies that we need to best listen, analyze and react to customer demands and expectations 12% 11% Aligning resources and cross-functional support across the organization Upgrading and transforming technology to deliver the best customer engagements 11% Effectively measuring the business impact of our customer experience investments © Copyright CMO Council. All Rights Reserved. 16 CONTEXT, COMMERCE + CUSTOMER | Report THE STATE OF ENGAGEMENT TECHNOLOGY How have marketing and commerce technology solutions most impacted your business? (Select top three) © Copyright CMO Council. All Rights Reserved. 41% Increased the ability to measure and track the real-time performance of campaigns and engagements, improving individual efforts in real-time 41% Increased engagement through the customer's journey, from discovery to purchase to advocacy and loyalty 26% Connected the engagement dots, taking loosely connected campaigns and creating trackable, connected customer experience journeys 26% Accelerated the rate at which we can engage with customers while reducing costs 25% Automated marketing processes and campaigns are enabling fast deployment and measurement of campaigns like never before. 24% Made some processes more trackable and transparent while making others more complex and cumbersome 23% Simplified the process of launching, promoting and merchandising new products and services 15% Driving revenue growth and bottom line health 14% Enabled us to expand into new markets and deliver exceptional experiences around the world 11% Slowed down projects due to technology complexities or system failures 9% Increased operational costs as we have brought on more talent to manage complex systems 8% Drained budgets with costly investments that have yet to pay off 17 CONTEXT, COMMERCE + CUSTOMER | Report How well are your marketing and commerce processes working together? 1% Extremely well: Working seamlessly in real time 3% Not at all: Total disconnect between marketing and commerce processes 52% Moderately well: Some processes are seamless, others are a work in progress 21% Very well: All processes working together most of the time 23% Not great: Struggling to connect all of the dots © Copyright CMO Council. All Rights Reserved. 18 CONTEXT, COMMERCE + CUSTOMER | Report How would you rate the investments you have made to date in marketing and commerce technology solutions? 4% 5% Complicated processes and engagement activities to the point of paralysis Exceeded expectations and opened doors to new opportunities 1% Failed to meet our expectations or live up to any of the promises made by the vendor 8% Underwhelming results, but we are making adjustments in the hopes of getting more value 40% Met our expectations in some areas but let us down in others 12% Well worth the budget, meeting all expectations and vendor promises 29% Too soon to tell, but we are hopeful © Copyright CMO Council. All Rights Reserved. 19 CONTEXT, COMMERCE + CUSTOMER | Report Thinking of the marketing and commerce technologies you have already implemented, are there any gaps you will look to fill in the coming year? (Select all that apply.) 47% Predictive analytics 45% Campaign management and measurement 40% Personalization 39% Marketing performance measurement 34% Content management system 32% Social listening and intelligence Service/support data integration and 23% management 21% Community building, management and engagement 16% Marketing resource management 14% Product content management 12% AdTech solutions, including programmatic buying 10% Order management 10% Billing and revenue management 9% Machine learning/cognitive computing 9% Promotion 7% Configure price quote (CPQ) 6% Merchandising 4% Core commerce platform 3% Other (please specify) © Copyright CMO Council. All Rights Reserved. 20 CONTEXT, COMMERCE + CUSTOMER | Report Do you believe the time being spent (by marketing, commerce and IT teams) on managing marketing and commerce technology is valuable to the organization? © Copyright CMO Council. All Rights Reserved. 43% Yes, but there are efficiencies we should achieve to spend less time managing the complexity. 28% I am somewhere in the middle; some of the time is of great value, some is a waste. 17% Yes, any amount of time we spend managing technology is critical to the business. 6% No, we spend too much time managing complex systems, and it takes away from time that we should be acting and executing. 3% No, we are not able to keep up with the pace of change and are constantly managing new solutions and upgrades. 3% Not sure, we have not tallied the total time marketing, commerce and IT must spend managing these technologies. 1% Don't know. 21 CONTEXT, COMMERCE + CUSTOMER | Report How well have you extended your marketing and commerce technologies to extend marketing's view into insights and intelligence while embracing other departments and functional areas, including sales, customer service, support, product development, store operations, channel management, etc.? 2% Extremely well 1% Not at all 2% Not sure 55% Working on implementing new solutions 13% Not very well 26% Pretty well © Copyright CMO Council. All Rights Reserved. 22 CONTEXT, COMMERCE + CUSTOMER | Report How do you rate the organization's processes specific to establishing, managing and growing customer relationships? 3% 2% Excellent - We have agile processes that leverage real-time intelligence to shift to meet the needs of the customer and drive collaboration and transparency across the organization. Does not exist - What is process? We struggle to get the entire organization on the same page. 13% Good - Our processes are well established, but we are continuously improving to help teams meet the needs of the business and the customer. 1% Poor - Processes are holding back innovation and agility, making business in today's digitally demanding market difficult and sometimes frustrating. 55% Working on implementing new solutions 21% Not great - Processes are generally cumbersome and can get stagnant, especially as the business and customer get more digital and data driven. © Copyright CMO Council. All Rights Reserved. 23 CONTEXT, COMMERCE + CUSTOMER | Report What type of data, analytics and intelligence is captured and available to your organization? (Select all that apply.) 81% Contact-level data (name, address, zip, email, etc.) 69% Campaign data (clicks, views, likes, opens, etc.) 68% CRM system data Sales data (account status, actions, engagements, lead 50% scoring, etc.) 50% Billing/payment data (including billing status, payments, subscriptions, etc.) 49% Broad demographic data (market size, socioeconomic insights, trends) 49% Customer satisfaction feedback 44% Location-based data 38% Social listening intelligence 36% Search data 35% Content consumption data 26% Supply chain insights (inventory, delivery status, etc.) Service/support data (contact center, phone center, 26% email, click to talk, etc.) Third-party data and insights (weather, shopper data, 23% etc.) 18% Channel partner data 16% Predictive analytics (batch-based analytics) 13% HR insights (team, talent and resource allocation) 13% Psychographic data (lifestyle behaviors, attitudes, sentiments, values, opinions, etc.) 11% Commerce data (in-store intelligence, e-commerce behavior, cart behavior, order history, etc.) 8% Real-time predictive analytics (machine learning, cognitive computing) © Copyright CMO Council. All Rights Reserved. 24 CONTEXT, COMMERCE + CUSTOMER | Report Thinking of the totality of data being collected across the organization, what percentage is actually being integrated and harvested on a real-time basis for actionable customer insights and intelligence? 1% 100% 10% 24% Don't know 25% - 49% 12% 75% - 99% 14% 21% Less than 10% 50% - 74% 18% 10% - 24% © Copyright CMO Council. All Rights Reserved. 25 CONTEXT, COMMERCE + CUSTOMER | Report What has been the greatest challenge to fully utilizing and harvesting data for customer insights? 2% 6% Tools to manage big data are too complex and costly for the organization. 1% Organizational support to mine new points of intelligence for a more robust view of the customer Data is trapped in silos within the marketing organization. 1% 8% Accelerating the process to enable realtime intelligence at scale Budget to invest time, resources and technology to simplify the massive stores of data collected 21% Data is trapped in organizational silos outside of the marketing organization. 9% Adopting an organization-wide data and analytics strategy to help guide needs and priorities 20% Too much data to effectively manage, analyze and turn into action in real time 12% Data is messy - Getting to a state of clean data to reach usable insights has been difficult. 19% The problem isn't data; it is getting the organization to bring on the people and processes we need to turn data into actionable insights. © Copyright CMO Council. All Rights Reserved. 26 CONTEXT, COMMERCE + CUSTOMER | Report CUSTOMERS, CONTENT AND CONTEXT What are the most important characteristics that make a contextual experience for your customers? (Select top three) © Copyright CMO Council. All Rights Reserved. 55% Rapid response to customer actions, questions or exchanges 46% Delivery of experience in the channel of the customer's choice or preference 41% Experience based on past behavior and actions 32% Recognition of the value/loyalty of the customer in all communications 23% Reaching the customer on digital destinations they frequent (websites, social feeds, etc.) 19% Recommendations based on past purchases, searches and preferences 19% Understanding of search behaviors to predict future needs and anticipate expectations 14% Real-time awareness of product availability 13% Locational awareness of where the customer is at the time of experience 10% Language preferences that reflect native languages and regional dialects 7% Past purchase history reflected in all communications and recommendations 4% Other (please specify) 27 CONTEXT, COMMERCE + CUSTOMER | Report Do you believe your organization is currently delivering contextual experiences in real time to customers, regardless of channel? 4% Yes, every interaction channel is powered by intelligencedriven, real-time, personalized experiences. 20% 30% No; a strategy is in place, but we are still struggling to align intelligence, content and channels with the customer. Almost there; we're getting systems, data and analytics in place. 23% 23% No, we are a long way from being able to deliver contextual experiences in real time. © Copyright CMO Council. All Rights Reserved. Yes, but only in select digital channels. 28 CONTEXT, COMMERCE + CUSTOMER | Report Rate how effective your real-time customer listening strategies are when it comes to being able to listen, analyze and respond to customer voice. 2% Horrible - Not only are we unable to listen to our customer, but there is little we could do with the data once it was collected. 3% Excellent - We have a formal organization-wide customer listening program and are able to listen to our customers across all channels, online and offline, including channels we do not own or control. 39% Fairly good - We are listening through corporate feedback channels like our website and emails but struggle to integrate insights from service, support, sales or external listening touchpoints. 12% Very poor - We are inconsistent in where and how we listen to our customers. 20% Very good - We have integrated our listening capabilities and are excelling in some digital channels and rapidly improving in others. 24% Fairly poor - We are only able to listen in limited channels and have not been able to align channels across the organization to get a clear picture of where customer voice is being heard. © Copyright CMO Council. All Rights Reserved. 29 CONTEXT, COMMERCE + CUSTOMER | Report How have your customer listening initiatives impacted your customer experience initiatives? (Select all that apply.) © Copyright CMO Council. All Rights Reserved. 44% Guided decisions around content, channels and engagements 42% Deepened customer relationships by creating new, relevant conversations and exchanges with customers 33% Improved results and return on marketing campaigns as customers are responding positively to the personalized and relevant experiences 30% Helped the entire organization better understand and quickly shift to meet the changing needs of our customers 28% Created new products, services or solutions that meet new customer demands 27% Added rich context to our engagements with individual customers 25% Enabled fast troubleshooting to head off issues before they become problems for customers 20% Accelerated the customer journey from investigation to transaction as we respond to the customer with more precise recommendations and experiences 19% Reduced customer service and support costs thanks to proactive assessment of customer needs 18% Boosted bottom-line performance and increased revenue per transaction with our most valuable customers 30 CONTEXT, COMMERCE + CUSTOMER | Report THE NEW CUSTOMER-BUSINESS ECOSYSTEM Which departments or external partners are part of your organization's data value-chain? (Select all that apply.) 80% 71% Customer support/service 63% Digital 58% Operations 55% Analytics 48% PR/communications 43% Finance 37% External agencies/performance partners 32% Commerce/eCommerce 30% Product development/R&D 29% Pricing 28% Channel 27% Fulfillment 26% Supply chain 13% HR 12% Store operations 1% © Copyright CMO Council. All Rights Reserved. Sales Other (please specify) 31 CONTEXT, COMMERCE + CUSTOMER | Report Rate your organization's readiness to onboard and embrace new technologies and engagement channels. 10% Not ready at all; struggling to keep pace with technology's advancement 11% 34% Falling behind, but have strategies in place for rapid improvement Extremely ready 13% Getting ready, but still working to ready systems and processes 32% Ready, but with reservations © Copyright CMO Council. All Rights Reserved. 32 CONTEXT, COMMERCE + CUSTOMER | Report Of the new and emerging technologies gaining momentum (and hype), which do you feel has the opportunity to make the biggest impact on the customer experience and your organization? © Copyright CMO Council. All Rights Reserved. 61% Big data-driven engagements and intelligence (i.e., smart recommendations, next best actions, etc.) 37% The Internet of things 28% Digital dexterity (defined as core employee cognitive ability and social practice that will define digital business success) 25% Mobile payment, transactions and m-commerce 19% Neuroscience/neurobusiness 18% Live streaming video 17% Virtual reality (artificial, computer-generated simulation or recreation of a real-life environment or situation) 16% Natural language response/answering 15% Augmented reality (layers computer-generated enhancements atop an existing reality in order to make it more meaningful through the ability to interact with it) 12% In-store beacons 12% Machine learning intelligence 10% Headless commerce (where the digital commerce platform, once built around the storefront and shopping cart, embeds programmable shopping interfaces into images, videos, banners and other digital experiences, according to Gartner) 10% Subscription business models 4% Virtual currency (Bitcoin, etc.) 33 CONTEXT, COMMERCE + CUSTOMER | Report What do you believe will be the organization's greatest challenge or obstacle to onboarding and integrating these new emerging technologies? © Copyright CMO Council. All Rights Reserved. 32% Having the right team and talent to manage and optimize these new tools 13% Understanding where and how these points of engagement add value to the customer 13% Connecting these technologies into existing legacy systems 11% Shifting internal processes to align new touchpoints and technologies to old processes 8% Managing the data that these new solutions and systems will bring 8% Budget to fund these new programs 7% Determining if these new tools are even right for our customers 6% Gaining organizational support to integrate these tools across all touchpoints 1% Keeping up with the competition that is already on the path to implementation 1% Resisting the urge to bring on new technology until it is ready to be embraced by the customer 34 CONTEXT, COMMERCE + CUSTOMER | Report DEMOGRAPHICS In which region are you and your marketing team located? (Select one) 2% 1% South America Middle East 6% Africa 40% Asia-Pacific 19% Europe 32% North America In which regions does your company operate? (Check all that apply) © Copyright CMO Council. All Rights Reserved. 69% Asia-Pacific 63% North America 55% Europe 37% Middle East 36% Africa 32% South America 35 CONTEXT, COMMERCE + CUSTOMER | Report What is your title? 2% 3% VP of Marketing and Sales SVP/EVP of Marketing 1% VP of Marketing Operations 4% Director of Corporate/ Marketing 1% VP of Corporate/Marketing Communications Communications 11% 22% VP of Marketing Head of Marketing 14% Director of Marketing 22% Chief Marketing Officer 21% Other (please describe) © Copyright CMO Council. All Rights Reserved. 36 CONTEXT, COMMERCE + CUSTOMER | Report How large is your company? 8% $751 million to 7% $251 million to $500 million $1 billion 26% 8% Greater than $501 million to $5 billion $750 million 8% $51 million to $100 million 21% Less than $50 million 9% $101 million to $250 million 14% $1.1 billion to $5 billion What best describes the focus of your business? 21% B2C 42% B2B 37% Hybrid of B2B and B2C © Copyright CMO Council. All Rights Reserved. 37 CONTEXT, COMMERCE + CUSTOMER | Report What best describes your company's industry sector? © Copyright CMO Council. All Rights Reserved. 15% Information technology 10% Retail 8% Telecommunications 7% Professional services 6% Pharmaceuticals 6% Manufacturing 5% Financial services 4% Media and publishing 4% Travel and hospitality 4% Insurance 3% Wholesale/distribution 3% Electronics and miscellaneous technology 2% Life sciences 2% Chemicals 2% Food and beverages 2% Automotive 2% Education 1% Consumer durables 1% Entertainment 1% Transportation 1% Aerospace and defense 1% Construction 1% Packaged goods 1% Utilities 1% Government 8% Other 38 CONTEXT, COMMERCE + CUSTOMER | Report How large is your global marketing staff/team? 5% 200 - 300 7% 100 - 200 25% 12% Less than 10 50 - 100 13% 30 - 50 24% 10 - 30 15% More than 300 © Copyright CMO Council. All Rights Reserved. 39 CONTEXT, COMMERCE + CUSTOMER | Report 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 9,000-plus members control more than $400 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 30,000 global executives in more than 110 countries covering multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, AsiaPacific, Middle East, India and Africa. The council's strategic interest groups include the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE), Mobile Relationship Marketing (MRM) Strategies, LoyaltyLeaders.org, CMOCIOAlign.org, Marketing Supply Chain Institute, Customer Experience Board, Digital Marketing Performance Institute, GeoBranding Center and the Forum to Advance the Mobile Experience (FAME). Learn more at www.cmocouncil.org. ABOUT SAP HYBRIS SAP Hybris delivers state-of-the-art customer data management, context-driven marketing tools and unified commerce processes for all your channels. Our products deliver a consistent and relevant experience to customers across every channel and on every device. It transforms how a business engages with its customers, and that’s what keeps people coming back to them and why they come back to us. Everything we make is designed to simplify the experience for the customer and for business. And everything we make allows businesses to react quickly to change so they don’t get left behind. Learn more at www.hybris.com. ABOUT SAP As the market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, and desktop to mobile device, SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously and grow sustainably. For more information, visit www.sap.com. © Copyright CMO Council. All Rights Reserved. 40