- The digital GM: Reports to the CEO and leads the establishment and/or transformation of a significant business.
- The digital Disrupter:Reports to the EVP or equivalent and leads a dynamic team charged with driving product and service innovation and cultural transformation.
- The digital Evangelist:Reports a level or two down but is highly visible to the executive level. Leads a small team designed to raise digital IQ throughout the organization.
- If we wanted to completely disrupt our industry, what kind of company would we start?
- How do we become that company?
- The only way to control the pace of change is to set it — that’s the primary mission of the CDO
- Always be disrupting
- Follow the money: find out where the VC money is going in your industry and watch those companies closely, partner with them, and invest in them or buy them if you can
- Rising customer expectations are the most disruptive trend in business today. Customers no longer make categorical distinctions between their personal and professional brand relationships. They expect all companies to provide highly valuable personalized experiences all the time. Companies that differentiate their customer relationships on the basis of account-specific insights and responsiveness raise customer expectations and create competitive advantage. Expectations are set very early in the buyer’s journey long before they interact with Sales, so marketing plays a crucial role in demonstrating value add from the very first touch.
- Customer acquisition costs have changed dramatically. Saturation is a problem for many technology product categories, especially second platform solutions in the enterprise arena. As segments near or reach saturation, new customer acquisition costs soar and it becomes imperative to more efficiently find new customers, get the most out of existing customer relationships, and defend them from competitors. The scale efficiencies of marketing vs. sales are critical to accomplishing these objectives cost-effectively.
- Subscription revenue models dramatically extend the time it takes to recoup cost of sales. Ideally, revenue and profit increase over time, but that is dependent on retention and expansion of the relationship which require constant care and nurturing. As a result, marketing must play a central role in optimizing the ongoing customer relationship.
- Technology has enabled an increasing number of account based marketing program components to be scaled beyond a small group of select customers. Online communities, micro sites, personalized content, crowd sourced product features, and other digital elements are easier to offer at scale. As a result, they enable companies to gain additional margin and raise expectations in segments beyond their largest customers. These are the tools the digital marketer must leverage for delivering value to the account.
Despite its name Account Based Marketing is not an exclusively marketing function, far from it. At its most mature it is part of a larger program that coordinates all customer facing resources (from marketing, sales, finance, fulfillment, product development, service, support and partner organizations.) Prior to getting there, it can take a number of different forms depending on resource commitment from content curation, to verticalization, to sales enablement. Regardless of the stage of your ABM activities, the ultimate goal remains the same: to deliver a highly differentiated, deeply customized, supremely successful experience for every account. When executed well, ABM is a vital tool for increasing customer lifetime value and raising the bar for competitors.
Contact me to request more information on IDC’s Account Based Marketing Maturity Model – gmurray(at)idc(dot)com.
- Construct a technology road map based on business drivers to guide investment
- Consolidate applications into a platform with data and process level integration to improve efficiency and effectiveness
- Work to integrate marketing technology with the enterprise infrastructure to reveal deeper insights into customers, partners, and market opportunities
- Establish inter-disciplinary teams and processes to combat the silos point solutions can create
- Learn to leverage corporate IT to improve vendor management, due diligence, and governance practices
|Customers with digital DNA expect data driven value|
- Unsustainable complexity: Point solutions have come to market independently leaving it up to marketers to assemble them into rational infrastructures. This is a highly inefficient market model for buyers and sellers.
- Transition to platforms: The consolidation of point solutions into platforms has already begun. Many noteworthy acquisitions have been made by major vendors such as Adobe, IBM, Oracle, salesforce.com, and SAP. However, this phase of market development will not last long as markets move rapidly from platforms to “… as a Service” models.
- Digital and creative coming together:AdAge recently named IBM the number one global digital agency in the world. IBM is rapidly hiring from the agency world to build out its creative services. Adobe has deep and long standing technology partnerships with many top agencies. The agency world needs a value proposition that will allow them restore margins and regain strategic relevance.
- Interaction: The primary function of these solutions is to be customer facing
- Content: The primary function of these solutions is to facilitate the production and management of marketing content
- Data and Analytics: The primary function of these solutions is to store and produce insights from customer, operations, and financial data
- Management and Administration: The primary function of these solutions is to provide internal communications, workflows, budgeting and expense tracking.
- Company size
- Business model (eComm, B2C, B2B direct, B2B indirect)
- Vertical industry
- Mission of marketing (awareness, demand generation, etc.)
Using these factors, the map can be easily customized to show the current state, recommended next steps, and long term vision for just about any marketing organization. If you’re a pure eCommerce company the advertising and digital commerce areas will be much more important and sales enablement would disappear. If you’re a B2B direct company digital commerce might be a very low priority and sales enablement would loom large in your plans. Regardless of whether you’re CPG, Health Care, Financial Services, startup or global enterprise, we can build a map to get your marketing, IT, and executive teams on the same page with respect to your marketing technology requirements.
- How to evaluate the strategic priority of the solution as well as the technical and business benefits
- How to build consensus across line of business, corporate IT and other key players in the decision making process.