tech heads – the sleepless cmo

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THE SLEEPLESS CMO May 2016

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The Sleepless CMO

2 Welcome

House rules “Relax”!

@WeAreOctopusGrp #SleeplessCMO

Home House Reception Password: homehousewifi

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The Sleepless CMO

Agenda

1.30PM Introduction: Jon Lonsdale, CEO, Octopus Group

1.35PM The Sleepless CMO research overview: Billy Hamilton Stent, Director, Octopus Group

2.00PM Panel Q&A

2.30PM Drinks, more canapes and chat

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The Sleepless CMO

HOW CAN A SEESAW HELP YOU SLEEP AT NIGHT?

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100 B2B Marketing Directors and

CMOs, with responsibility for

marketing budget allocation,

completed an interview

in March 2016

Research overview

400 key decision makers, responsible

for choosing and purchasing

products and services for their

companies, completed a survey

during March 2016

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WHAT KEEPS AWAKE AT NIGHT?

The Sleepless CMO

US

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46%

26%

28%

2015 IN 2015 THIS QUESTION GOT US THINKING…

The Sleepless CMO

People have less time, but decisions are taking longer.

What keeps us awake at night? 7

We take longer

Less time

No change

How do you feel decision-making time in your organisation has changed over the last 18 months when it comes to buying products and services?

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The Sleepless CMO

Competitive changes and choice are driving delays in decision-making….

FACTORS THAT MAKE DECISION- MAKING MORE COMPLEX

41%

43%

45%

Greater choice of suppliers in the market

More sources of content to research / digest / consider

Greater choice of services / products offered by suppliers

Which of the following factors, if any, are adding time and complexity to the decision-making process?

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Base: Total (400)

What keeps us awake at night?

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WHAT KEEPS AWAKE AT NIGHT?

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THEM

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Have you slept more or less

over the last 12 months?

35%

59%

6%

You are six times more likely to lose sleep than gain sleep as a UK B2B CMO

What keeps them awake at night? 10

Less

No difference

More

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¤ …Because of increasing competition in the market

¤ Competitive pressure from the global players has

increased the competition in the market

¤ Working late building new website, integrating more

dynamic content and numerous other things…

¤ I have been working constantly day in, day out

to find the right amalgam of data and creativity

The Sleepless CMO

What keeps you awake at night?

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Open comment responses from CMOs

that stated they were

sleeping less in 2016

What keeps them awake at night?

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COMPETITIVE PRESSURES AS A DRIVER OF CHANGE

92% 30% 90% Competition in their market

has increased the pressure for their company to achieve its

commercial objectives

This pressure has increased significantly

They’re having to become more creative and innovative

to compete with other suppliers in the market

SAY SAY SAY

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Base: Total (100)


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TOP 3 COMMERCIAL CHALLENGES IN 2016

51% Keeping pace with marketing innovation

Bringing new products and services to market

Changes in the competitive landscape

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57% 58%

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Base: Total (100)


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WHY DOES CHOICE SLOW DOWN SALES?

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DECISION-MAKING PRIOR TO DIRECT CONTACT

88% of buyers say they shortlist or even decide on a vendor before making contact with that vendor at least half the time

Why does choice slow down sales?

47%

41%

9%

2016

n Most of the time (at least 75% of occasions)

n Sometimes (about half of the time) n Occasionally (about a quarter of the time)

n Never

Base: Total (400) The Sleepless CMO

Mostly

Sometimes

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25%

26%

41%

40%

47%

40%

33%

27%

18%

2%

1%

1%

Deciding – validating final decision as to which supplier to use

Shortlisting – choosing potential suppliers to tender

Scoping – initial research into products and services


EFFECTS OF INCREASED MARKET COMPETITION

To what extent does a more competitive supplier market change the time spent on the following areas of the buying process?

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n Significantly increases (over 20%)

n Somewhat increases (by up to 20%)

n Makes no difference

n Decreases time spent

Base: Total (400)

‹#› Why does choice slow down sales?

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Base: Total (400)

CHALLENGES OF SUPPLIER COMPETITION

Top three challenges for buyers in selecting and onboarding suppliers in a more competitive market 37%

39%

48%

Market becomes too ‘noisy’ / overwhelming

Harder to distinguish between supplier propositions

Buying process becomes more time-consuming

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IN SUMMARY

Dramatic changes in competitive landscape are a key driver for CMO pressure.

Convergence of “services” and expanded portfolios of

offerings are creating new competitive threats – each

competitor creating more content, using more tech,

burning more time….


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More, more, more…


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WHAT TYPE OF CMO ARE YOU?

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MOST INFLUENTIAL AND STRONGEST AREA IN HELPING DRIVE SALES

What type of CMO are you?

37%

38%

25%

PERSONALLY STRONGEST

Which area do you feel is personally the strongest area of knowledge for you?

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n Technology / Digital knowledge

n Creative thinking

n Commercial / Financial awareness

Base: Total (100)

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52% 44%

4%

43%

52%

5% 16%

76%

8%

COMMERCIAL CMO CREATIVE CMO TECH CMO

What type of CMO are you? Have you slept more or less over the last 12 months? /Personally strongest area in CMO skillset

WHO GETS THE MOST SLEEP?

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Base: Total (100) The Sleepless CMO

n No difference n Less n More

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“I feel more stressed in my job than I did 12 months ago”

What type of CMO are you?

The Sleepless CMO

“We are having to become more creative and innovative in order to compete”

68%

50%

46%

Commercial CMO

Creative CMO

Tech CMO

52%

37%

38%

Commercial CMO

Creative CMO

Tech CMO

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Base: Total (100)

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IN SUMMARY

Your marketing skillset significantly influences how you view the road ahead.

But how do these areas of marketing influence

the marketing function overall?


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THE BIGGEST GAPS IN MARKETING PERFORMANCE

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CMO EXPECTATION GAPS

Gap analysis between factors

identified as being extremely

critical and levels of high

satisfaction with performance

for marketing 62% IMPORTANCE

40% SATISFACTION

PERFORMANCE GAP 22%

CREATING BUSINESS CASE FOR MARKETING PERFORMANCE

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01.

The Sleepless CMO

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INNOVATION / DIFFERENT WAYS OF THINKING

PERFORMANCE GAP 17%

44% IMPORTANCE

27% SATISFACTION

02.

27 The biggest gaps in marketing performance?

DIGITAL OPERATIONS / PLANNING

49% IMPORTANCE

24% SATISFACTION

PERFORMANCE GAP 25%

03.

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HOW CAN A SEESAW HELP YOU SLEEP AT NIGHT? You need levers!

The Sleepless CMO

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The Sleepless CMO

How can a seesaw help you sleep at night?

Competitive Challenge

Planning digital operations

Innovation

Creativity ROI

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LEVERS TO TACKLE THE COMPETITIVE CHALLENGE

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CMOs lose sleep over competitive pressures

that drive ‘more, more, more!’

CONCLUSION

Lack of differentiation and market convergence

confuses customers and delays decision making

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The solutions lie in marketing levers

that offer exponential value

The Sleepless CMO

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The Sleepless CMO

Conclusion

SIMPLE STEPS TO DREAMLAND

LOOK AT YOURSELF

LOOK AT YOUR BUSINESS

IDENTIFY YOUR LEVER

PRIORITISE THAT CHANGE

SLEEP BETTER

01. 02. 03. 04. 05.

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The Sleepless CMO

Joel Harrison Editor-in-Chief, B2B Marketing

Paul Gibson Regional VP EMEA,

Demandbase

Tim Hughes Social Selling

Pioneer

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‹#› About us

The Sleepless CMO

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THE SLEEPLESS CMO Thank you