Ask CMOs what tops their challenges list, and most admit that improving marketing's accountability ranks right up there.
B2B marketing execs worry about measuring marketing performance a bit more than B2C since a direct sales force and/or channel partners are largely responsible for the last mile of the customer purchase process.
Managing marketing performance is a perennial issue all marketers face.
Unlike revenue growth or margin, there are few accepted answers to the question, "What value does the business get from your marketing investment?" Typical answers focus on pipeline, which Sales then hotly contests.
Twitter #music is now out and people are abuzz about how elegant it is while also murmuring about what it means that Twitter – a company with no direct music expertise – is providing a music service. At the highest level, some are asking the question: is this the future of music?
The answer is simple. No, Twitter has not built the future of music. But that wasn’t the point. Instead, Twitter is building the future of Twitter’s customer relationship. It’s a significant difference in goals and it shows other wannabe digital disruptors some of the most important principles of digital disruption that you can follow, whether the adjacent possibility you will pursue next on behalf of your customers is in music or house cleaning or education. Here’s what to learn from Twitter’s music service:
Build a customer relationship to acquire data. In a digitally disrupted world, the most important asset you have is a digital customer relationship that connects to customers as frequently as possible and generates as much of a data trail as possible. Twitter has spent years doing this for millions of users, many of them who touch the service daily. It was only after this step was successfully completed that Twitter could look beyond it. That’s already a lesson for just about everyone else.
Update: The following post was written prior to today's shocking events at the Boston Marathon. All of Forrester sends out thoughts, prayers, and well-wishes to the runners, spectators, and their families affected by this senseless violence. — Cory
Today is just tax day to most of the US, but here in Boston, it's much more likely to be referred to as marathon Monday. Indeed, thousands of runners and wheelchair athletes are currently moving toward the finish line in the 117th running of one of the world's most famous and popular races: the Boston Marathon. For some, the goal is just to finish, while others are out to set personal records. And all have been training with a regimented, well-planned routine for months in anticipation of the big day. Marketers should take a page out of the marathoner's playbook when it comes to making the switch to the customer life cycle, a customer-driven marketing approach that will help your organization succeed in the age of the customer. CMOs in particular have the responsibility of transitioning marketing to a customer-first philosophy, and my latest report, "Evaluate The Completeness Of Your Marketing Effort," will help you get there (subscription required).
I’m currently quite taken with the new Fox TV series The Americans, which features a chameleon-like Matthew Rhys and a kick-ass Keri Russell as deep-undercover KGB spies. They live an apparently normal family life in 1980s suburban cold war America, while unbeknownst to their two American-born children, they conduct brutal covert operations for mother Russia. A recent episode called “Trust Me” exposed the perilous shifting sands of trust in their relationships. It is a world where no one is quite what they seem to be, and every character is constantly reevaluating whom they can trust. It is exhausting. Because without trust, every decision or action is a risk.
This holds true not just for human relationships but also for brand relationships. In both, trust is the cornerstone. Brand trust makes purchasing decisions easier, quicker, and less risky. I choose Amazon because I trust that it will deliver the product I want when I want it. I trust that my Neutrogena sunblock will protect my skin. I trust that my Starbucks coffee will taste good. I recently attended an event hosted by the Marketing Science Institute (MSI) on the topic of “Building Trust In A Digital Age.” MSI seeks to bridge the gap between marketing academic and business worlds, by bringing together marketing thought leaders from both realms to research and discuss big meaty, marketing topics. For the Boston Spring session, attendees debated the nature of brand trust and how it is driven and measured. A couple of highlights:
Tell me you’ve had this problem. You wake up and stand in your closet, staring at all the different outfits to choose from and wondering which one is going to make just the right impression for whatever you have going on that day. Maybe you want to look authoritative and put-together for a client, be the cool parent to your kids’ friends, or be sexy to catch the attention of your objective's affection. Whatever the occasion, sometimes the wealth of options can be overwhelming and you end up panicking and trying to do too much or too little. And the next thing you know, that dream combo you had in your mind’s eye is out the window.
Monday’s The New York Times offers a defense of authors’ rights from bestselling author and head of the Authors Guild, Scott Turow. In the piece, Turow interprets a Supreme Court decision that allows the importation of books purchased abroad for resell in the US, making it seem like all of Western culture would henceforth be at risk. Later the same day, I read a brief statement from News Corp in which the company threatened to make the FOX broadcast network a premium pay channel in order to get its just compensation for its creative works ahead of the likely decision that Aereo is not illegally capturing and restreaming broadcast content.
These individuals and organizations have the right to do what they feel they must as they pass through the phase known as denial. But may I offer this one small suggestion to help them through the stages of grief yet to come: Stop pretending that the foe you face won’t eventually win because it will. That goes for all of you. Digital disruption will eliminate your structural advantages someday, too.
We’ve been through this before, dating back to the first time the music industry sued someone to prevent the future. No, it wasn’t Napster or the users of BitTorrent in the 2000s. It was actually Diamond Multimedia, makers of the new PMP300 MP3 players, and the year was 1998. The argument then was the same as it is today: We, the people who currently benefit from an artificial monopoly in either the creation or distribution of value, don’t want that monopoly to end.
Great marketing content can fuel your company's demand generation engine. It can boost your brand's visibility to key audiences and bump aside competitors. Most of all, it attracts buyers interested in the types of challenges your company can solve. Because, as successful marketing execs know, business buyers don't buy your products and services; they buy into your approach to solving their problems.
I recently was invited to attend a meeting of the National Association of Corporate Directors (NACD), a group of board-of-director members from the country’s most prestigious companies. The topic of the meeting was how to keep corporate boards relevant in the 21st century.
What promised to be a dry conversation about financials and governance turned out to be anything but that. The discussion that morning focused on the need to respond to and keep pace with the rapid change in customer behavior to stay competitive. It also addressed how current board members could keep up with the evolution of customer touchpoints to understand the new digitally-based strategies that are increasingly being shared with them.
What I found striking about the discussion after some reflection was that the realization of the critical importance of customer behavior on the future success of top companies has made it all the way to the boardroom. The age of the customer that Forrester first identified in 2011 has really arrived and goes well beyond marketing.
Why now? Corporate boards are starting to realize that to provide the strategic guidance and governance that their role requires, they need to better understand customers and how the relationship between them and the companies they direct are changing. And they need to understand it fast. The market is moving and changing too rapidly to be left behind.