Interviews with Over 500 CMOs Show Data, Social Media Present Biggest Opportunities and Challenges
Armonk, N.Y. – 17 Mar 2014: According to a new IBM study, high-performing CMOs are integrating internal and external data to garner deep insights that, in turn, provide them with a much deeper understanding of their customers.
The study, entitled “Stepping up to the challenge: How CMOs can start to close the aspirational gap,” is based on findings from face-to-face conversations with more than 500 CMOs from 56 countries and 19 industries worldwide. Conducted by IBM’s Institute for Business Value (IBV), the study reveals that 94 percent of CMOs believe advanced analytics will play a significant role in helping them reach their goals. However, an increased number of CMOs say their organizations are underprepared to capitalize on the data explosion – 82 percent compared to 71 percent three years before.
“After speaking with CMOs around the world, it became evident that more companies across all industries are striving to integrate their physical and digital presence in order to provide a more integrated, seamless customer experience,” said John Kennedy, Vice President, Marketing, Global Business Services, IBM. “In response, we launched the new IBM Interactive Experience to help CMOs and other C-suite leaders design and build rich, data-enabled experiences for their customers and stakeholders.”
The study identifies three types of CMOs: Traditionalists (37 percent), Social Strategists (33 percent) and Digital Pacesetters (30 percent). Digital Pacesetters are more likely to be financial outperformers and are characterized by their preparedness for the dramatic growth of data, social and mobile channels; integration of physical and digital sales and service channels; and regular use of advanced analytics to extract insights from customer data.
63% of CEOs lean on CMOs to help formulate their business strategy
The new study also measured the influence of CMOs within their organization, concluding that their level of strategic involvement is increasing. According to the study, 63 percent of CEOs involve the CMO in formulating the organization’s overall business strategy, second only to the CFO (72 percent). The study underscores the need for CMOs to collaborate more closely with the rest of the C-suite in making strategic decisions that are supported by data and analytics.
The study also found that when a CMO has a close working relationship with the CIO, the enterprise is more likely to perform better overall. High-performing CMOs were reported to have a stronger working relationship with CIOs than those identified as financial underperformers.
94% of marketing leaders believe mobile will be key for future success
Much like they feel underprepared to capitalize on data, 66 percent of CMOs feel underprepared for the growth of social media, which is evolving at a pace faster than many can cope with. The study also found that CMOs today are less concerned with both monitoring their brand via social media and trying to monetize social media.
In addition, 94 percent of marketing leaders believe that mobile applications will play a significant role in helping them reach their goals over the next three to five years, which is up from 80 percent three years before. The study found that Digital Pacesetters in particular are well along the path of executing a mobile strategy, with 58 percent able to conduct business regardless of location or device.
IBM’s Global Business Services consulting organization was recently named as #1 among the top 24 consulting firms in the world based on the quality and impact of its thought leadership material published by the IBV, according to Source for Consulting’s new White Space report.
About the IBM 2013 Global C-suite Study
IBM conducted its in-person analysis with more than 4,000 C-suite leaders by using a global team of business strategists, consultants, data scientists and statisticians. More information about the IBM Institute for Business Value (IBV) can be found here.
For more information about the IBM Institute for Business Value (IBV):
Access the full study findings and case studies here.