This document discusses changes in communication investments and the evolving role of the CMO. It analyzes data showing organizations moving investments from traditional to digital channels like social media and mobile that allow for more personalized customer relationships. Customers are seen as individuals rather than masses. The CMO's role is expanding from communications expertise to providing quantifiable business results and customer insights that can direct company strategy and innovation. Communication departments are shifting from reactive to playing an active role in driving company growth through customer-centric strategies based on understanding customer behavior.

1. THE CURRENT CHANGE
IN COMMUNICATION INVESTMENTS
Helge Tennø
@congbo
slideshare.net/helgetenno
SAS Forum, Oslo, 17th September 2013

2. GAP:
Communication is a business tool
- how are companies planning to use communication in the future?
What can we learn from looking at the numbers?

3. The numbers

4. a.Core - investment numbers
Disclaimer: The numbers gathered from the research performed in Norway titled The Role of Communication in 2013 is
not representative as it only gathered 40 responses before being taken down.

5. What should the marketing function's top priority be at your organization?
(% respondents)
To which area has marketing contributed most in the past year?
(% respondents)
Driving revenue growth
Improving your organization's reputation
Retaining existing customers
30
22
22
The C-suite view of the CMO Agenda, 2012
COMMENT: There is a gap between what the organization wants from its communication and how it is used - we except this gap to close the next
years. Which means communication will be measured less on communication goals and more on business goals.

6. Which marketing channels are most preferred by your organization
today (2012) and in 2015? [The graph is showing the only channels with an estimated growth]
Direct mail
+1
22
22
Online Catalogue
Web-TV
Search
Online display
Mobile display
+12
+12
+13
+20
+28
Source: Attitudes towards mobile 2012, INMA and VIRKE
COMMENT: Almost without exception companies are moving their money to digital - what are they seeing in digital? We except it to be because
digital is perceived as cheaper, more accountable, effective, dynamic and with better opportunities for real-time marketing and nurturing personal
relationships.

7. Kroger has grown from $51bn to $82bn in 8 years
95% of that growth has come from existing customers
COMMENT: Traditionalists claim that there is no money in loyalty, that the only opportunity for growth is buying new customers. The old theories and
ideas don't hold true anymore, new tools make a lot of theories and theoretical platforms from the last fifty years redundant.

8. Only 44% of retail marketing
is mass communications in the USA
- because people are shopping differently -
COMMENT: As people are moving their purchasing to new channels the customer journey changes and marketing changes as well.

9. 0
COMMENT: Investments are moving towards channels enabling the nurturing of personal relationships. Today the customers are individuals, not
masses. Technology today allows for individually tailored communication to millions of customers at the same time. [How to read the graph: The columns on the right
hand side of the dotted line represents the numbers for 2015, the blue and the red columns represent increases (blue) and decreases(red) from 2012 to 2015].

10. Customer Service
Email (-15)
Face-to-face (-17)
Mobile devices (+31)
Digital media (+17)
Social media (+47)
Traditional media (-19)
Traditional direct mail (-14)
Which marketing channels do you estimate to be most effective today / in three years time?
Source: The role of communication in 2013
0
COMMENT: The question is what lies behind the term social media? We know that customer engagement has become as important for companies as
customer satisfaction, and we assume that respondents are thinking of the ability to engage customers and create dialogue - not necessarily, Facebook,
Twitter or Instagram. [How to read the graph: The columns on the right hand side of the dotted line represents the numbers for 2015, the blue and the red columns represent increases (blue) and
decreases(red) from 2012 to 2015].

11. Within the arena of marketing and communication where should the
organization invest their money the next three years?
Customer relations (CRM)
Developing services for mobile devices
Brand
Social media
More
53
53
72
72
Kilde: Kommunikasjonens rolle i 2013

12. The C-suite view of the CMO Agenda, 2012

13. b.CMO - numbers

14. "We need to provide quantifiable business results. And at
the end of the day we need to innovate, motivate and really
drive change for the organization."
- ZipCar CMO Rob Weisberg

15. "managing customer relations across all products, divisions and brands"
- Øivind Magnussen, SAS Institute

16. What skills are the most important for CMOs to have?
Select the top three.
(% respondents)
Customer insight
Communications expertise
42
41
The C-suite view of the CMO Agenda, 2012
COMMENT: The whole point here being the interest and need for customer insight in a larger business perspective - to direct and inspire business in
both its communication but also its business development. Better customer insights, not based on media data but usage and insight into drivers and
ambitions for the product itself and the situations where it is used is extremely valuable. Companies are looking for someone to take the role of Chief
Customer Insight Officer - and the CMO is invited to take that role - if they want and can.

17. Which skills have gained or lost importance for directors with
communication and marketing responsibilities?
Communications expertise
Customer Insight
Social media
Innovation
More
72
72
85
81
74
72
Source: The role of communication in 2013
COMMENT: The Norwegian numbers are showing us the same thing - including the term innovation, which scores very high.

18. "We don't even talk to the CMO when it comes
to these large marketing / it investments"
- it-company -
COMMENT: The CMO is balancing on a knife's edge. On the one side they can take ownership of the customer voice in the organization and become
central to the future development of the company, or they can forfeit the opportunity (to the sales or IT executive) and become nothing more than a
production unit inside the company.

19. "you shouldn't even talk to the CMO,
there is a lack of vision there and no money"
- CEO -

20. "Our finds assume that the communications
department play a reactive and defensive role"
- Peggy Brønn, 2009 -
COMMENT: Its all about finding and using new data for customer insight. With new data we are asking what the customers are doing - when using
the product and what drives their ambitions and motivations for doing so. We are looking at brand new raw material for understanding the customer!
This introduces a completely new set of data that enables the senior communications role at the company to more confidently talk on behalf of the
customers.

21. the consequence

22. business driven
by customer insight
What they do is more
important than
who they are
Customers as individuals1. customer centricity

23. business driven
by customer insight
What they do is more
important than
who they are
Customers as individuals
infrastructure business models
transient
advantages
new
value propositions
1. customer centricity
2. structural change

24. business driven
by customer insight
What they do is more
important than
who they are
Customers as individuals
infrastructure business models
transient
advantages
new
value propositions
evolve
communication
Customer insight &
innovation
nurture personal
relationships
drive
company growth
1. customer centricity
2. structural change
3. the cmo's role

25. THANK YOU
Helge Tennø
@congbo
helge.tenno@dinamo.no