I have just published a report that builds on Forrester's research on CMOs' technology spending plans, focusing on India's banking industry. The Indian banking industry emerged unscathed from the 2008 and 2009 global financial crises, but it will not be immune to the age of the customer. My report outlines how technology will play an increasingly crucial role in implementing differentiated revenue models, a superior customer experience, and an optimized cost structure for banks. The key findings from the report include:
Digitally enabled customers are demanding customer obsession from their banks. Indian banking CMOs' top three business priorities are addressing the rising expectations of customers, improving margins, and acquiring and retaining customers — priorities that are similar to those of their peers in other industries. The experience that other industries offer — such as the compelling content, interactions, and features that consumer product companies provide — are shaping customer expectations, and customers want similar experiences from their banks. And the entry of new players and the tough economic situation are driving CMOs to increase their focus on winning, serving, and retaining customers.
Earlier this year, I penned a break-up letter on behalf of CMOs to the marketing funnel. Though some chief marketers initially were a little reluctant to follow through, in new research published today, we see that the vast majority of marketers recognize that the customer life cycle (CLC) is their partner of the future. In "The State Of Customer Life Cycle Marketing, 2013," (subscription required), we share the results from our July 2013 North American Customer Life-Cycle Marketing Online Survey of 80 senior marketers, a highlight of which is that marketers are overwhelmingly picking the CLC for all their customer-obsessed marketing activities (see figure).
In addition to getting a pulse on where companies are in their transition to a customer-first approach to marketing, we also used our assessment (subscription required) to benchmark performance on the five key dimensions of customer life-cycle marketing: strategy, organization, data and analytics, measurement, and technology. We find that:
Very few marketers can be considered leaders today. Only 13% of respondents can be considered leaders, and they have aligned strategy, organization, and data to drive their success. Laggards, those with the most to work on, make up 41% of the respondents, while aspirers were the vast majority, with 46% of respondents moving actively toward customer obsession.
I was driving home from work the other day and listening, as usual, to Boston's National Public Radio station, WBUR, when a story came on about the push for doctors and hospitals to go digital by turning patient records into electronic health records (EHRs). There are a lot of tricky challenges that come with digitizing these documents: hundreds of products on the market to help with the effort, a steep upfront cost, lower productivity on day to day tasks while the system is implemented, the cost of accompanying hardware and maintenance, and a learning curve for doctors, nurses, and other staff. But as one of the office managers said for the story, the biggest challenge is actually "having everybody have a positive attitude to do it. If we can all keep positive and get through it and learn it...I think we'll be okay." Supporters of this effort cite improved cost and better, more efficient care - a win for all stakeholders - but in the early stages, it's hard for some to see tangible improvements.
Digital channels, online social activity, and mobile technology give business buyers unprecedented purchasing power. Just look around your next sales or customer meeting, count the number of smartphones and tablets, and see if you disagree.
To capture the attention of the perpetually-connected business buyer, we see B2B CMOs taking on significantly broader, and often unfamiliar, responsibilities. To learn exactly how top marketers respond to these new world challenges, Forrester teamed with the BMA to conduct a joint study about the pace of change, skills required, and degree of collaboration needed to deliver the always-on experiences business buyers now expect.
Wait a minute . . . this all looks very familiar . . . I think I've been here before . . .
After almost three years at Xerox, I returned to Forrester Research in January to resume my quest to remake business-to-business (B2B) marketers and advance their standing in the corporate world. It's great to be back, and while much has changed, still more remains the same.