Report: Aussie CMOs strive for customer centricity but hindered by pace of change

New Experian report outlines the customer centricity maturity curve Australian marketers and their organisations are on and why data analytics, leadership buy-in, resources and processes changes are vital for success

Australian marketing leaders know they must become more customer-centric but many are fighting a corporate pace of change that’s too slow and a fear of failure.

Those are the top-line findings of a new report, Customer Centric Transformation – How Australian CMOs are Driving Change, produced by Experian of 20 CMOs and more than 100 senior marketers across Australia. According to the research, more than 40 per cent of marketers believe the pace of change is too slow within their organisation.

However, more than 50 per cent of marketers in organisations with a less mature customer-centric approach don’t even feel up to the task, and rate themselves as “not very good” at customer-led initiatives. One big inhibitor is long timeframes involved in an organisation’s transformation, the report stated.

The research plotted businesses surveyed on a Customer Centricity Maturity Index as either ‘beginners’, ‘followers’, ‘challengers’ or ‘progressives’. Experian described ‘progressive’ organisations as those with a ‘CMO+’ at the helm who is more influential in the senior business landscape. ‘Progressive’ CMOs are also characterised by their ability to derive business benefits from customer-centric initiatives, as well as prove the ROI.

On the bright side, 63 per cent of marketers surveyed said they’d become more influential in the last 12 months, a figure that rose to 81 per cent for the ‘progressive CMOs’ driving customer-centric change in their organisation.

In addition, ‘progressive CMOs’ experienced a 75 per cent improvement in performance on average across key measurement metrics in the last 12 months, and more than 90 per cent are successfully measuring ROI and using these results to secure ongoing budget and resource.

Another stark reminder of the difference between the haves and have not is that 88 per cent of ‘progressives’ have sufficient budget for customer-centric initiatives, compared to just 8 per cent of beginners.

What was also apparent in the report was the discrepancy in time spend on customer-centric strategy versus traditional marketing functions. Across the board, CMOs spend 45 per cent of their time on customer-centric strategy, rising to 52 per cent with ‘challenger’ organisations, and 58 per cent with ‘progressives’. This drops to 35 per cent for ‘beginners’ and ‘followers’.

To back up its maturity index, Experian outlined five key indicators of customer-centric performance: Leadership, insights and analytics, resources, core processes and performance.

As an illustration of the difference between leading customer-centric organisations and those at the beginning of the journey, Experian reported that all ‘progressive’ organisations had an executive management team committed to an active in the customer-centric transformation process. They had also aligned organisational strategy to customer-centric outcomes. In contrast, just 19 per cent of ‘beginners’ had achieved the first, and 12 per cent the latter.

In addition, while all ‘progressive’ organisations are collecting customer feedback to improve customer experience, and more than three in four are working with customers to create products, services and experiences, only 12 per cent of ‘beginners’ are doing the same.

And while 85 per cent of ‘progressive’ organisations believe they have people with the right skills for customer-centric initiatives, only 8 per cent of ‘beginners’ feel the same.

“Digital disruption and market forces, along with changing customer behaviour and needs, are driving customer-centric change in Australia,” commented Experian managing director for A/NZ, John Mayakovski. “A new wave of customer-centric organisations poses significant challenges to more traditional organisations that are battling legacy structures and processes.”

Tips from Experian for CMOs striving for customer-centricity

  • Have the ear of the CEO
  • Be the knowledge champion for ‘everything consumer’
  • Broaden skills and invest time in customer-centric activities

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

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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in