Report: Marketing teams must be restructured

Latest Economist Intelligence Unit and Marketo report of CMOs and senior marketers finds more than four out of five expect their organisation to be restructured to cope with increasing technology and customer demands

Marketing teams must undergo a restructure in the next five years to bring in the necessary operational, data and technology skills needed for future customer engagement.

According to a new survey of 478 senior marketers and CMOs globally conducted by The Economist Unit, and sponsored by Marketo, 81 per cent of marketers believe their organisation will need to change dramatically to cope with increased technical and consumer demand and support the business. Twenty-nine per cent believed the need for change is already urgent.

There is a way to go, however. Just over two-thirds of global marketers said their company views the marketing function as little more than a cost centre, a figure that rose to 70 per cent in Asia-Pacific. However, over the next 3-5 years, marketers expect four out of five companies will classify the marketing function as a revenue driver.

Owning customer experience will be catalyst for this transformation. While about a third of marketers are currently managing customer experience, 75 per cent expect to be responsible for the customer’s lifetime end-to-end experience over the next 3-5 years.

Technology was seen by respondents as the key facilitator for achieving this. Although less than half are using data to gain insights and engage customers today, 81 per cent anticipate they will be utilising data to make connections with customers in the next 3-5 years. Eighty per cent also expect to rely on technology to engage customers in a conversation to build advocacy and trust over the same timeframe.

The global report found core technology investments over the next 3-5 years are social marketing, mobile marketing and marketing analytics. In Asia-Pacific, advertising management, marketing resource management and content marketing were also ranked higher priorities than those in other regions.

In addition, 39 of global marketers said businesses need to develop stronger skillsets in digital engagement, and marketing operations and technology, followed by strategy and planning (38 per cent). Rounding off the top five wishlist is data analysis, and demand generation/customer acquisition.

Acquiring these appropriate skills was a top area of investment for 30 per cent of Asia-Pacific respondents over the next 12 months, double that of marketers in North American (15 per cent). The top two challenges noted by regional marketers are budget and customer acquisition.

Related: The top marketing and CMO skills in demand in 2015

When asked to define customer engagement, marketers overwhelmingly chose customer renewals, retention and repeat purchases (63 per cent), followed by brand awareness (22 per cent) and to a lesser extent, the impact on revenue.

“The transformation taking place in marketing is profound as marketers race to adopt technology and add skills that will allow them the entire relationship with the customer,” Marketo CMO, Sanjay Dholakia, said.

“Three out of every four marketers say that in three to five years, they will own the end-to-end customer engagement. That ownership puts marketing right at the centre of revenue generation and setting the company strategy.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

What a great article. Thanks for sharing. Today Digital Marketing is the basic need for a business to survive. As online presence is very...

Ecomsolver Private Limited

Want to master digital transformation? Stop thinking about your own problems

Read more

Feeling grateful that customer led digital transformation could improve business and generate more business growth. Many companies are no...

Lilly Lawrence

How a customer-led digital transformation has helped this CMO generate $6m in incremental business

Read more

If a business games me happy than there is a higher chance I will go to them.

Martinez

The Iconic: becoming customer-focussed transformed our business

Read more

That’s a great example of surprising AR ad that went viral because it was first of its kind. Probably a similar effect to some scale can ...

Natasha Kvitka

Using artificial intelligence to surprise your customers

Read more

Hey there! it is a really meaningful post. I too have written a few similar articles about SEM, SEO, Social Media, Digital Marketing Tren...

Rohit

Digital advertising continues to dominate marketing budgets

Read more

Latest Podcast

More podcasts

Sign in