Gartner: Profitability will trump CX for marketers by 2022

Latest marketing predictions driven by key trends including automation, customer experience hype, consumer behavioural changes and data utilisation

Profitability is set to replace customer experience as the chief marketing officer’s number one strategy priority in the next three years as the state of data and technology matures and consumer behaviour shifts further, a new report claims.

Gartner’s latest report, Predict 2019: Marketing Seeks a New Equilibrium, outlines six key changes it sees significantly re-orienting the CMO’s remit and priorities over the next three to four years. All these predictions reflect more realistic expectations and utilisation of data and technology in marketing departments, including the increased adoption of artificial intelligence (AI), as well as a correction in customer experience hype.

For example, Gartner predicted that by 2022, profitability will replace customer experience (CX) as the CMO’s number one strategic priority, reducing investment in marketing-funded CX programs by at least 25 per cent. The firm attributed this to inflated investments into customer experience in the last few years, which are now leading to executive scrutiny and expectations in these investment areas rapidly intensifying.

Another complementary prediction is a rise in brands putting in place user-level control of marketing, a move that will reduce customer churn by 40 per cent and increase lifetime value by 25 per cent in 2023.

Gartner also expects autonomous marketing systems will issue 55 per cent of multi-channel marketing messages based on marketer criteria and real-time consumer behaviour by 2023, resulting in a 25 per cent increase in response rates. Automation is clearly driving this trend.

Over the next four years, content creators are also expected to produce more than 30 per cent of their digital content with the aid of AI content-generation techniques, increasing productivity and advertising effectiveness but also disrupting the creative process itself.

Another trend for Gartner is that consumers will watch 20 per cent fewer minutes of video advertising per day by 2023 compared to today, leading to brands embracing short-form video ads.

To reach this top six, Gartner said it weighed up four key forces. The first was behaviour changes thanks largely to the rise of voice interfaces and their utilisation of personal data. Concerns about how information is used, however, and where it’s stored, continue to rise, again impacting behaviour. The firm noted 44 per cent of consumers would be more willing to use a virtual personal assistant app if they knew all their personal data would only remain on the device.

Another big force is regulatory pressure, something that’s again tied to consumer data. The debut of the General Data Protection Regulation (GDPR) in Europe in 2018 is seen by many as a catalyst for more thorough scrutiny and just the first in many regulatory changes to come.

Organisational shifts is the third big disruptive force, and Gartner said one big element is marketing leaders attempting to cope with the increasing swathes of data they’re acquiring by hiring new talent that can extract insights from it. The push to be more customer-centric is also having a significant impact, something that can be seen from the rising numbers of marketers now gaining chief customer and CX titles and responsibilities.

The fourth of its forces is disruptive automation, which has become a core functional element of most marketing departments and programs. As automation makes its way into new areas, Gartner said these changes will have a disruptive impact on what marketers do and how they do it.

“These are exciting but uncertain times for CMOs and marketing leaders,” commented Gartner senior director and analyst, Charles Golvin. “From the promise of data and analytics, to the lure of customer experience and everything inbetween, marketers have vast opportunities to set themselves apart from the competition, but equal challenges to overcome in order to do so.

“Finding the right balance to successfully leverage marketing technology and emerging trends will be critical to marketing’s success over the course of the next couple of years.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, 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

Blog Posts

Searching for social and marketing data

Many marketers, agencies - and everyone in between - get caught up on bubble references and data points. They’ll use Facebook best practice as the only best practice for Facebook executions and only consider metrics and responses of the one channel they’re expected to deliver on.

Isaac Lai

Connections strategy lead, VMLY&R Sydney

Why Australia needs more leaders

A few weeks ago, our Prime Minister, Scott Morrison took it upon himself to tell companies and their CEOs where to go when it came to societal issues. It wasn’t an organisation’s place to get involved. Instead, he said it should be left to governments to solve societies challenges.

Dan Banyard

Managing director, Edentify

3 skills you need to drive better collaboration

A study published in The Harvard Business Review found the time spent in collaborative activities at work has increased by over 50 per cent in the past two decades. Larger projects; complicated problems; tighter timeframes: These require bigger teams with specialised skillsets and diverse backgrounds, often dispersed globally.

Jen Jackson

CEO, Everyday Massive

Thanks for sharing! Terracotta Jewellery Online Shopping Ethnic Jewellery Online Shopping

Cotton Sarees Online

How data is driving the customers of a lifetime for BaubleBar

Read more

Informative blog. Xero is a well-known revolutionized accounting software, specifically developed to provide best User Experience and mak...

NavkarConsultancyServices

Xero evolves to fit a changing marketplace

Read more

>Writes article about how to show diversity in an authentic way>All featured opinions are from white women

Jennifer Metcalfe

Food for Thought: How can brands show diversity in an authentic way?

Read more

Excellent post, congratulations !!! - Prof Paulo Coelho | https://www.drpaulocoelho.c...

Prof Paulo Coelho

The B2C and B2B marketing transformation helping Invisalign win more smiles

Read more

Great article - but regarding "For a team to achieve their full potential, Edmonson also advises leaders balance psychological safety wi...

Sim

3 skills you need to drive better collaboration - Business leadership - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in