I published a report based on a Q2 2013 survey that benchmarked marketing innovation culture and indicated that most marketers are still not investing enough to accelerate their innovation efforts. Only 11% indicated that they are currently setting aside budget specifically for marketing innovation programs. Budget is both an indicator of intent and lifeblood for these programs to succeed. Today, Advertising Age published an article based on this report — "Most Brands Aren't Budgeting For Innovation." Below is the article Forrester submitted to Advertising Age.
Only 11% of marketers set aside a specific budget for marketing innovation efforts, and only 9% make marketing innovation a part of every marketer’s budget, according to a recent study of 45 marketing leaders. What’s more is that 95% of these marketers agreed, mostly agreed, or partially agreed that they are achieving positive ROI from their innovation programs. Why the difference? Mastering marketing innovation is getting harder and harder due to the ever-changing customer landscape caused by digital disruption, perpetually connected customers, and shifting customer expectations.
The follow-on report will focus on how to assess your organization’s current marketing innovation culture and what it takes to migrate from where you are today to where you want to be tomorrow. Whether you have a risk-averse, pragmatic, experimenter, or customer-obsessed marketing innovation culture, your insights are critical to this research.
I have developed a short (5 to 10 minute), anonymoussurvey on assessing your marketing innovation culture. The more responses I receive, the more insightful and valuable the report will be for you. Everyone who takes the survey will receive a summary of the results if they choose to provide their email address at the end of the survey (optional).
Please take the survey today, and forward it to any of your colleagues or peers you feel could add insight into this topic.
Today, we published my first Forrester Research report on marketing innovation, "Culture Is Key To Marketing Innovation Velocity" (client access required). This is the first report in a series I will be writing on marketing innovation culture, innovation labs, and partnering to accelerate marketing innovation velocity.
Marketing innovation in the age of digital disruption, perpetually connected customers, and the customer life cycle is hard and getting harder. What separates the marketers who are leading their organizations to accelerate marketing innovation velocity is the organizational culture they have created. This report discusses the four marketing innovation cultures including: risk-averse, pragmatist, experimenters, and customer-obsessed. We also align the cultures based on whether they are internally or externally oriented or highly focused or highly flexible. For example, a customer-obsessed culture is more flexible and externally oriented in how it innovates and markets to its customers. Here is the marketing innovation cultures matrix:
I only just recently started watching Mad Men — a shock to many of my marketing peers and to regular folks who now think I’ve been living under a rock for the past five-plus years. I’ll save my thoughts on the show for another time, but what strikes me at least once during each episode is how much everything (tactics) and nothing (strategy) have changed. Similar fundamental challenges weigh on Sterling Cooper’s clients’ minds and on our CMO clients’ minds today: How do we connect with our consumers in a way that differentiates us from the competition? While Don Draper was limited to print and TV, thanks to digital platforms and tools, today’s CMOs have an almost-infinite number of options with which to build relationships with consumers.
2013 is the year that digital takes on a much more significant role in marketing and business strategies at business-to-consumer (B2C) organizations, and CMOs will be responsible for shepherding the change. 2013 is the year that CMOs will leverage digital tools to drive innovation of new compelling brand experiences — not as add-ons or enhancements but as integral elements of the brand’s messages, actions, and products that will differentiate your offering.
B2C CMOs, your 2013 resolutions should be to:
Embrace digital disruption. Digital disruption has remarkable strength. It's able to bulldoze traditional sources of competitive advantage faster, with greater power, at less cost than any force that came before it — and no business is immune. CMOs must make a strategic commitment to innovation and stop thinking about digital as another media channel. Digital is everywhere and should elevate marketing and business priorities for consumer benefit.