Download customer

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