by Ilmari Piela, January 18, 2017
68% of senior management expect marketing to generate revenue and growth. A majority of CMO’s say the best way to do so is through utilization of data, analytics, and insights. But are these things actually getting done? How can we rise above the dilly-dallying of daily tasks and meetings and find the optimal opportunities for revenue generation?
According to a 2016 report on the role of marketing executives by the consultancy company Deloitte*, 68% of senior management and the board expect the marketing department to drive growth and revenue generation in the company. Of the more than 200 chief marketing officers (CMOs) interviewed for the survey, the majority, 44%, said the top method to increase revenue was the utilization of data, analytics, and insights. Disconnected customer data and poor use of time impeded growth.
Clearly CMOs knew what they had to do to achieve their goals, but they still found that their time was being spent on daily tasks like reviewing and approving plans, budgets, and campaigns (45%), attending meetings (42%), or just making the case for marketing spend (38%). How can you rise above the dilly-dallying and find the optimal opportunities for revenue generation, provide the best customer experience, and win the race for the most profitable business in your industry?
According to a report on the role of marketing executives by the consultancy company Deloitte, two thirds of senior management and the board expect the marketing department to drive growth and revenue generation.
The CMOs in the Deloitte survey stated that customer experience is emerging as the key driver of growth opportunity. However, only 13% are using their time to retain and deepen customer relationships through improved customer experiences. The main hindrance here is how executives were using their technology and data. At the moment, information on customers exists in CRM, ERP, chat, mobile applications, network analytics, and social media. This data cannot be utilized unless someone collects it in a format that can be analyzed. Also, the information must be in real time and easily comparable. When asked which areas of digital marketing innovation have the most impact on a CMO’s ability to generate revenue, one of the top solutions was targeting, personalization and predictive analytics (44%), which allow the executive to harness their data.
We live in an age in which businesses are investing in customer orientation, but very few of them utilize customer information in a way that genuinely brings value to the company and its customers. In the early 2010s, we saw how enterprises opened digital service channels, one after the other. Services were put out to tender and acquired from different operators, one piece at a time. Nobody was overviewing what sort of system was evolving from the combination of all these pieces. Client data was produced separately, in various siloed systems, and their data was left to be archived away somewhere.
A procurement process like this tends to destroy the systematic collection of usable client data. At the same time, we marketers are prevented from producing better growth and profitability.
Small start-ups are challenging large corporations, as they can build their business operations with a genuine focus on customer orientation, right from the beginning. The best competitive asset large businesses have against this threat is the integration of their vast amount of data from different service locations and client data, and the utilization of the information collected. The time to act is now.
Fig. 1. Disconnectedness of client data vs. revenue generation driven by customer information
According to the Deloitte survey, while aspirations to be the growth catalyst are high, CMOs are spending the majority of their time on budgetary and campaign management activities, at the expense of more strategic initiatives that could help drive growth. In modern, dynamic business, analyzed client data arrives automatically on the desk of marketing and business executives. This can be secured through purchases in system and change management for the right overall package.
The role of management is to ensure that the right kinds of tools and processes are fueling growth.
Your company’s various business sectors must be able to utilize your data for aligning their revenue-generating work. The most intelligent organizations anticipate the actions of their customers, use data from previous years to predict the moves of prospective and existing clients; this helps them produce better quality, impact, and timeliness in marketing and sales. The customer sees the whole improved process as a better purchasing experience.
We at Nortal find that the old mantra of 50% of all marketing efforts being wasted is a thing of the past. Our clients don’t develop their growth based on guesses when they have all the tools at their disposal. We aim for you to know where 100% of your investments are going and that 100% of your time is well spent. We are moving towards that target fast.
Read more about Revenue Science at Nortal.
Ilmari Piela, Nortal Revenue Science