Marketing becomes new revenue arm
Traditionally, CMOs have dealt with the “soft skills” of marketing. They headed up cost centers filled with branding, advertising and campaigns that were expensive endeavors, producing benefits that were often difficult to measure. In this current shift, CMOs might not bring CIOs to their knees, but if corporate budgets could talk they would certainly favor the CMO. To wit: Gartner predicts that by 2017 the CMO will spend more on IT than the CIO. Why? Mobile, big data and real-time analytics are transforming the modern CMO’s organization from a cost center to a critical revenue-driving arm to reach and engage the customer base.
Realizing that CIOs and CMOs probably hate stories of a battle raging between them, there is actually a peaceful, and logical, middle ground in which the two work together to harness the vastness of big data to create real-time – and importantly, actionable – analytics. While the CMO brings the marketing skills to the table, the CIO has the technical chops to deal with capturing, processing and integrating data to make it useful.
Mobile transition requires new tools
The CMO is in a particularly prime position in the increasingly important mobile channel, as the feedback loop is uniquely personal and immediate. The ability to measure, predict and act upon an end-user action has never been more precise.
However, mobile is a different beast and legacy systems designed for the web rely on cookies to track user interaction. As we go more mobile, we enter a world devoid of cookies. New tools are required to match mobile users to their actions across multiple channels. Along with new tools, there needs to be a new partnership – the CMO and CIO united as a Dynamic Duo – working diligently together to deliver the cloud-based and back-office infrastructure required to pull actionable information from big data across all channels: bricks and mortar, web and mobile.
New focus on data-driven outreach
To get a view into what makes the CMO so potentially powerful, let’s turn to another battle, the one that happens on a quarterly basis across corporate America and beyond: The fight to make the quarterly earnings number. Typically, a CEO faced with a sales or earnings shortfall will turn to the CFO and the head of sales and say: “What can you do?”
The honest answer is: short term, not much. They can jam the channel, which will make the next quarter’s number even harder to achieve. Or shovel product out the door at prices that wouldn’t otherwise make sense. But by the time the word gets to the field and actions kick into gear, there can be quite a lag in results. And, again, these results may have value only for the short-term.
In the very near future – one that has already arrived for some organizations – the CEO turns to the CMO, who looks up from his or her laptop and says: “No problem. We should make that number by noon.”
The CFO and head of sales turn and say in unison: “How?”
“While you were talking I found an overstock of our Zing42 and sent an offer to 234,000 customers who have purchased this in the past, and statistically are ready to buy again, and to another 341,000 customers who haven’t purchased this yet, but show a high probability of doing so at the price point we are offering.”
No hurried sales calls to the field asking them to stuff the channel. No broadcasting of sales and discounts that can tarnish an image or weaken a brand. But rather, an analytically-driven offer to a curated digital audience delivered via a simple mobile notification, or in-application offer, to thousands of people who are analyzed and selected to be eager buyers.
This is the look of the CMO ascending: Powered by a cloud of mobile, big data and real-time analytics.
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