Teamwork. Two heads are better than one. Many hands make light work. We all know the importance of cooperation but sometimes it’s hard for marketers to join forces with IT.
This week’s CMO Perspectives focuses on the importance of a mind meld between marketing and other departments. For instance, no customer loyalty program will work without a superbly designed product. Similarly, no marketer can afford to purchase technological tools without consulting their CIO. In our digital age, companies need marketers and technologists, poets and techies, if they want to continue to survive and thrive in the marketplace.
We hope you enjoy these articles. Let us know your thoughts by commenting below, or reach out on Twitter: @NICE_Enterprise.
What Does Customer Loyalty Really Mean? [acxiom.com]
The author of this piece, Demetrios Tzortzis, argues that many customer loyalty programs are deeply misguided and flawed. There are 2.65 billion loyalty program memberships in the US - an average of 21.9 programs per household. However, the average household only actively uses 9.5 of them.
It’s an axiom of marketing and sales, he says, that acquiring a new customer is much more costly than retaining a satisfied consumer, but the way to go about gaining customer loyalty is not necessarily through loyalty programs. He says that loyalty programs are no substitute for a mediocre product offering and substandard customer service. Conversely, a top-notch brand can be wildly successful without any sort of loyalty program. He cites Apple as evidence of this. Apple has people waiting in lines for days with the release of each product despite the fact that its prices are higher than its competitors and it has no loyalty program to speak of.
It’s Risky Business When CMOs Tackle Tech Alone [cio.com]
More and more marketers are taking advantage of the efficiencies and enormous growth potential of marketing technology and tools. But at the same time many CMOs keep IT in the dark when they make marketing tech purchases.
The reason for this, argues author Tom Kaneshige is because “the geeks will put the tech vendor through an obscene, jargon-filled laundry list of requirements and testing that will drag the sales cycle for months.”
However, Kaneshige says, the risks of keeping the CIO out of the purchasing process outweigh the benefits.
For one thing, enterprise technology doesn’t always work as advertised. Marketers tend to accept the flowery vendor pitch as gospel only to feel the pain of technology that has failed to live up to its promises. CIOs, however, know what questions to ask and can temper expectations. They can also save the company a lot of money by foreseeing potential pitfalls and hidden costs of the technology
IDC Predicts Marketing Software Will Be A $32.4B Market By 2018 [forbes.com]
According to a recent forecast published by IDC, $130B will be spent over the next five years on marketing software globally.
IDC’s definition of marketing software includes the four broad categories of interaction management, content production and management, data and analytics, and marketing management and administration.
IDC forecasts interaction systems will grow from $8.2B in 2014 to $13.6B in 2018. Data and analytics systems will grow from $6.9B in 2014 to $11.6B in 2018, attaining a 13.96% CAGR. Overall marketing software will grow from $20.2B in 2014 to $32.4B in 2018, attaining a 12.45% CAGR throughout the forecast period.
Marketing disruption: Five blind spots on the road to marketing's potential [mckinseyonmarketingandsales.com]
“Disruption” is a vague term, obscuring the fact that disruption has come to the marketing field as well. The authors, David Edelman and Jason Heller, define disruption as “any profound change in the business landscape that forces marketing organizations to undergo signification transformations, as opposed to incremental changes.”
The problem, they say, is that most marketers continue to labor within frameworks that inhibit true transformation. They are still focused around mass campaigns and promotions. In addition, many functions outside marketing’s control, like finance and the contact center, are still locked into models built to manage and measure products, as opposed to the customer. The author has identified five blind spots that inhibit marketing transformation - read this fantastic article to understand what they are.
We hope you enjoyed our picks and bookmarked a few articles for future reference. Please don’t forget to share with other CMOs.
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