CMO confidential What CMOs talk about behind closed doors

About this documentIn May 2012, more than 35 CMOs met in Austin, Texas, to discuss strategies for growing and sustaining customer relationships in a digital age. Their organizations span technology, manufacturing, energy and utilities, life sciences, food and beverage, academia, and more.

Still, these CMOs had a lot in common. Their discussions were candid and sometimes confidential. Any information that might allow the identification of individuals or their companies has been scrubbed.

Contents

On the line………….……………………………………………………………..... 1

Understanding customers…………………………………………………….. ...... 3

Moving beyond understanding……………………………................... .............. 5

Building connection…………………………………..……..…………………… .. 7

Getting in touch………………………………..……………………………………9

Selling to companies ........................................................................................ 11

Aligning organizations ..................................................................................... 13

Shaping brand advocates ................................................................................ 15

Your mission .................................................................................................... 17

On the line

For many CMOs, responding to the changing demands of today’s customers often seems like an impossible mission. And for good reason.

Technology-empowered customers insist on buying at their convenience. Anytime. Anywhere. Any way. And even the most venerable brands can be held hostage by a blogger’s review, which can have more influence than a Super Bowl ad.

And it’s not just B2C companies that are under the gun. The digital consumer’s influence has spread to B2B as well.

Yet the CMO’s core mission remains the same: cultivate profitable and lasting customer relationships.

CMO confidential What CMOs talk about behind closed doors 1

2

Crunchy questions are practical, detailed inquiries into tough business issues and are designed to lay the groundwork for action. Here are a few to consider for your business:

•What’sthebuzzaboutyourbrand—andhowwillit affect your sales this quarter?

•Whichcustomersareyoulikelytolose—andwhy?

•Whatmakesyourcustomersloyal?

•Whatexternalinfluences,suchaspoliticsanddemographics, affect the price your customers are willing to pay?

•Whatdoyouremployeesneedtocreatetheexperiences your customers crave?

•Whichfactorsdrivedownyourcustomers’satisfaction?

•Whatareanalystssayingaboutyourorganization?What about customers and online influencers?

•Whichpromotionshavethemostinfluenceoncustomer profitability?

Crunchy questions

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CMO confidential What CMOs talk about behind closed doors 3

One CMO nailed the analytics dilemma: “I have too much data, and not enough insight.”

Every customer purchase, Internet search, and social media comment adds to the growing mountain of data that holds clues for how organizations can build stronger, more enduring customer relationships. So where should you begin? Should you gather data or extract insights?

Neither.

Start by asking smart, focused questions. What specific information will help you better serve customers? Gain competitive advantage? Fulfill the business strategy?Whatdata—operational,social,economic,environmental,andpoliticalsignals—couldhelpanswerthesequestions?

Business analytics can provide uncommon insights and breakout value. It starts withaskingcrunchyquestions—andendswithgettinganswersyoucantrust.

Where to start

Identify 10 questions that could drive value-packed actions within the next 100 days. Which three questions matter most?

The assignment

Understanding customers

4

Analytics has quickly shifted from a heavy reliance on operational data to a mix of current internal and external signals able to shape forward-looking business decisions at a moment’s notice.

Up and out

ForesightUnderstand the signals being generated

acrossyourecosystem—bothinternallyandexternally—andusethemtoshapethefuture.

InsightUse data generated within

the organization to drive changes in the here and now.

HindsightConduct “rearview mirror” assessments based on data generated by operations.

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Six years ago, while bloggers and customers raged about a product defect, this company’s CMO faced a choice: respond or hide.

It wasn’t easy to confront the storm of complaints head on, but the CMO andothercompanyleadersrecommittedtotheircustomer-centricheritage—listening, engaging, and taking action. The strategy paid off. Today, their metrics indicatethatengagingcustomersthroughonlinecommunities—answeringquestionsandfixingproblems—acceleratesthesalescycleandimprovesmarginsand revenues.

Another CMO reported that analytics helps their organization identify top customers and understand their buying behaviors, leading to higher lifetime customer values.

Both agreed the next frontier is to hone their ability to predict which customers will likely generate the most revenue tomorrow. That’s where analytics can really pay off.

The next frontier

Connect social media investments to specific business goals, using analytics to measure and forecast results.

The assignment

Moving beyond understanding

6

product = commodity

product + experience = good brand

product + experience + passion = exceptional brand

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Customers expect reliable products and a good experience. These are table stakes.

Exceptional brands up the ante by cultivating an emotional connection beyond the functional benefits of the product. Consumers want to be associated with these exceptional brands, which change how they feel about themselves. Marketing is all about building this emotional connection.

Here’s an example. The social media team of a leading steakhouse chain routinely responds to customer tweets and comments. But one day, they saw an opportunity to create buzz when a frequent customer and influential author had jokingly tweeted that he’d love to have a steak waiting for him at the Newark airport in two hours. The social media team caught the tweet, and the companymadeithappen—atuxedoedwaiterwasatthegatewitha24-ounceporterhouse when his plane landed. The customer was astonished. Did he tell his 139,000 followers? You bet.

High-stakes branding

Use social listening tools to discover what people say about your brand. Reinforce good chatter. Address sources of bad chatter. Make amazing moments happen.

The assignment

Building connection

8

Go undercover

Did you hear the one about the CEO from a leading consumer products company who observed a family in their home for two weeks to see how they used detergents?

Other marketers told similar stories. Executives of a motorcycle company who join enthusiasts in club rides. Fast-food executives who work the deep fryer. Business leaders who invite customers to join executive strategy sessions.

Add old-school surveys and focus groups to today’s social network monitoring and you’ve created a mind-boggling array of reviews, criticisms, and recommendations. So what do you do with all this feedback? Is it possible to have too much of a good thing?

The answer is yes.

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Determine which three channels are most important for getting candid customer feedback. Pay special attention to customers who are emotionally connected to your brand, but are dissatisfied with some aspect about it. Make changes to satisfy them before all others.

The assignment

Getting in touch

10

“I used to think that B2B marketing was special. Now I know it’s not.”

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Technology-empowered consumers are raising the bar for B2B marketers. That’s because commercial customers increasingly expect the same multichannel accessibility and personalized experience for business purchases as they do for their personal transactions.

One CMO applies the 3-30-3 consumer standard to her organization’s digital B2B marketing: three seconds to get the visitor’s attention, 30 seconds for conversion, and three minutes for action, such as make a call, read a white paper, or watch a video.

CMOs of two different technology companies reported that engaging IT decision makers through online technical communities accelerates their sales cycles. These early adopters of industry social media provide a glimpse into the likely future for all B2B sales.

Businesses are people, too

Which current consumer marketing trends are most relevant for your B2B marketing initiatives? Which trends are your competitors likely to exploit before you will?

The assignment

Selling to companies

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“Marketing’s job is clarity. It’s not about doing seven things, but instead, executing one big idea.”

CMO confidential What CMOs talk about behind closed doors 13

Engineers, designers, and even chefs often think more is better. They find it easy to expound on what’s great about their products. Speed. Simplicity. Freshness. Strength. The list goes on.

Effective marketers know less is more. They distill the brand to its essential role for customers. Chosen well, a handful of words can be relevant to customers and employees alike.

But marketers sometimes forget their internal audience. One company’s rebranding initiative fell flat because marketers didn’t listen to the company’s engineers, who saw their job as building cool things, not transforming the world. The organization was united after the lofty brand messages were exchanged for one concrete idea that everyone could support.

Pick one

Craft one short sentence that sums up what your organization stands for—a statement that everyone in the company can support. Make this the core of all your communications, both inside and out.

The assignment

Aligning organizations

1414

“Give them a story about why their work matters.”

Crunchy questions for sticky issues Using analytics to outsmart competitors 15CMO confidential What CMOs talk about behind closed doors 15

Employees—oftenwithgoodintentions—cansabotageeventhebestmarketingplans. All it takes is a frustrated response to one customer or a careless blog post read by a thousand. So we asked how CMOs align everyone under a single brand banner.

One company co-locates HR’s internal communication team with the marketing brand team. Their proximity helps them coordinate consistent messaging across both audiences. Another company certifies employees who have completed social media training before allowing them to engage with customers. This organization also trains C-suite executives to use social tools in an environment where it’s safe to ask “dumb” questions.

Many CMOs find that stories help them develop employees to become effective brand advocates. These marketers collect and distribute tales about how their company’s products and people have helped others. Leading organizations go one step further by teaching their employees how to tell stories in an effective way.

Once upon a time

Identify a handful of employees who are great at sharing their stories online and face-to-face. Clone them.

The assignment

Shaping brand advocates

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Your mission

Effective marketers take control of their brand messages and customer experiences. Influential marketers go beyond control to create the buzz.

Today’sleadingCMOsleverageemergingtechnologies—mobile,social,andanalytics—tohelpunderstand,engage,andinfluencecustomers,employees,and even leaders.

These are the tools that make your mission possible.

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Acknowledgements

This book could not have been possible without the ideas and stories shared by some of the world’s best marketers.

We thank them and look forward to continuing the conversation.

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This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

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Copyright © 2012 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited

Contacts

Jonathan CopulskyPrincipalDeloitte Consulting LLPjcopulsky@deloitte.com

Jonathan TrichelPrincipalDeloitte Consulting LLPjtrichel@deloitte.com

Thomas ZipprichPrincipalDeloitte Consulting LLPtzipprich@deloitte.com