Computers and artificial intelligence have come along at an exponential rate over the past few decades, from being regarded as oversized adding machines to the point where they have played integral roles in some legitimately creative endeavours.
CMOs need to create an analytical framework and master data management strategy, as well as build an insight-based team, if they’re to successfully do the job confronting them today, a new report claims.
According to Gartner’s new A Marketing Analytics Framework for CMOs, sponsored by Adobe, the data marketing chiefs require in order to make marketing decisions that drive effectiveness and improve efficiency not only resides in marketing and IT systems, but also across external IT and agencies, marketing service providers and third-party data providers.
The marketing analytics processes needed today also vary greatly in sophistication from measurement and reporting through to predictive modelling, forecasting and constraint-based optimisation. This juxtaposition of data and analytical capabilities means CMOs will not have the time or skills to perform all necessary in-depth analysis, and will increasingly rely on both a marketing insights team as well as company peers to help plan, execute and operate their strategy.
“CMOs must work with other business leaders such as the CFO and heads of customer service, sales, ecommerce and customer experience to align business goals and measure marketing’s objectives across business domains,” the report stated.
Among Gartner’s key recommendations to CMOs are to create an analytical framework for each key decision or process required, along with a master data management strategy for managing various sources of data. It also advocated a dashboard with visualisation capabilities to pool all analysis, allowing heads of marketing to quickly make and communicate relevant insights.
“CMOs are under tremendous pressure to be more accountable, measure marketing performance and optimise the marketing mix,” the report authors stated. “They need instant access to information and insight to make more informed decisions, strategically plan and measure return on marketing investments. CMOs require insights into both marketing execution and marketing operations.”
The Garner report also sought to identify key execution and operational responsibilities of today’s CMO, along with the types of decisions, information and analysis requirements they need to consider.
For customer lifecycle management for example, CMOs must be able to identify customers and customer segments to acquire, retain, grow or allow to exit. This requires accessing information from a customer database or data warehouse, third-party customer data, transactional systems and social media data.
Analytical capabilities that make best use of this information include customer segmentation and profitability analysis, predictive modelling for opportunity, customer profiling and psychometric analysis, social analytics, report and analysis on customer segments or targeted groups and retention and attribution data.
To turn all of this into relevant business analytics, CMOs require marketing dashboards and performance management solutions, campaign management, contact centre desktop agent, sales force automation and an operational data store or customer hub, Gartner stated.
Other key processes CMOs need to take a similar execution approach to include competitive intelligence, creative advertising and media planning, customer programs, and event, lead, marketing, promotion and market management.
Operational challenges include financial management, strategic and resource planning, project management, marketing fulfilment, and marketing content and asset management.
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