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  1. A dnx and Circle Research report March 2014
  2. C ntents4. Introduction 6. Executive Summary 8. The sample 9. So what do marketers mean by ‘big data’? 10. Big data: set to get even bigger 12. Ownership of big data 16. Importance of big data 20. Current applications of big data 22. Future applications of big data 26. The benefits of big data 28. Has marketing been able capitalise on the big data opportunity? 30. What are the barriers to benefitting from big data, and how can marketers overcome them? 34. Forcing a fundamental shift 36. Is big data propelling marketers to the boardroom and what other significant opportunities for marketers are there? 38. Why should marketers become CEOs of the future? 40. Finally, when will marketing be promoted to the boardroom? 42. Conclusions 46. About dnx 48. About Circle Research 49. Sources 2 3
  3. INTRODUCTION Today’s marketers, tomorrow’s data-empowered CEOs? dnx has long championed marketers as CEOs in-waiting, and we think CMOs are in pole position to finally be promoted to the boardroom. So, we have partnered with Circle Research to interview a large sample of enterprise marketers from B2B and B2C organisations in the UK and Europe to test our hypothesis that marketing, a function long seen as secondary to business growth and historically sidelined in boardroom terms, is now taking centre stage. What’s more, we think that the advent of big data — now a mission-critical business intelligence tool for a large percentage of enterprise organisations — is a key factor driving this shift in a marketers’ status. It is our belief that big data — meaning the unprecedented multiple streams of customer data available to the connected enterprise via digital platforms — is the single largest catalyst accelerating this step-change. Put simply, richer data enables marketers to make better informed decisions based on deeper customer insight, driving improved Marketing Return On Investment (MROI) and ultimately leading to more sales. This in turn empowers the marketer within his or her organisation in diverse ways, as we will explore. 4 5
  4. EXECUTIVE SUMMARY Marketers are well placed to capitalise on the big data opportunity by virtue of their combination of skills and attributes, but they need to establish ownership of big data manipulation for their own function. And learn how to translate their business objectives clearly in order to collaborate with other key departments more successfully in the application of big data. Additionally, if marketers do claim ownership of big data, they need to be aware of the expectations on their department to deliver profitable return in the short term, given the heavy investment needed in this technology. Act now: education will be key. To get ahead of the competition, marketers must be specifically trained in analysis of big data. At present, there is a lack ofunderstanding of how to use bigdata amongst marketers, and beingable to interpret the data skillfullywill become a critical requirementfor every ambitious marketer. The data available is so prolificand complex that marketers must be clear on exactly whatthey want to get out of it in order to mine the data properlyand reap the rewards. The largest opportunity that big data represents to marketers is allowing them to build a more detailed understanding of their customers. To facilitate a more personal and responsive relationship with them over the coming years — enhancing their role as customer insight custodians. Those marketers already using bigdata are seeing positive results andover 40% of them are using it moreheavily as a result. The unique opportunity presented to marketers to gain richer customer insight and improve their marketing effectiveness by using big data, is enormous. And large numbers of marketers agree; big data is viewed by 69% of the marketers we surveyed as becoming ever more central to business strategy. It is increasing the influence of the marketing department and it should not be underestimated or under-invested in at a departmental or organisational level. Outside of big data, other significant opportunities for marketers to increase their influence and status are digital. One such opportunity is leadingthe growth of digital customercommunications channels including social media. 6 7
  5. When we refer to ‘big data’ in the context of this report, we are referring to data sets so large, so dense and so diverse, that they cannot be managed by standard software tools and must be processed by specialist data management programmes. To give an idea of scale, there may be many ‘petabytes’ of data in a single set. Business Intelligence is accepted to be the common application of big data for businesses, and is the most relevant to marketers wanting to mine the data to extract information and insight about their customers. Business Intelligence applies descriptive statistics to the data to identify and measure trends. What specifically do marketers mean by 83% of enterprise companies surveyed are either using big data, or plan to use it within the next 3 years for marketing. We surveyed 52 marketing professionals working at multinational enterprise companies in the UK and Europe (90% of these were in the UK), across a range of industry sectors, including both B2B and B2C organisations. SAMP E The 31% 12% 42% 15% Board director /CMO Marketing director Other marketing positions Marketing manager 8 9
  6. Big data can be said to have entered the mainstream, but not to have reached a tipping point as yet. In terms of how many are using big data right now, 43% of marketing professionals surveyed reported that they already use it, with a further 40% confirming that they expect to use big data within the next three years. This means that a critical mass of those enterprise companies we surveyed (83%) have made the decision to invest in big data by 2017, which is a large majority and may be a strong indication of the wider market. Given the level of investment and early management buy-in required for this kind of enterprise purchase, we can draw the conclusion that for this 40%, big data is likely to be a planned purchase which is relatively far down the decision-making pipeline and has therefore already had board level approval to some extent. Furthermore, those companies already using big data are reporting 41% heavier usage compared to just 18 months ago. This suggests current users are deriving ever greater value from their investment and are fast becoming more adept at extracting useful data. From a longer term point of view, it seems likely and almost inevitable, that where the majority of enterprise organisations go, the remaining 17% — those who said they have no plans to invest in big data within the next three years — will eventually follow. With the large proportion of the market already investing or planning to invest heavily in this technology, it will become the standard operating base in the near long term future. This tipping point has been referred to as the ‘plateau of productivity’ by Gartner, who estimated it to be between five and ten years away in 2013.(1) Big data: set to get even BIGGER 43% of marketing professionals surveyed reported that they already use big data 10 11
  7. Out of one third (35%) of respondents surveyed, the largest proportion, reported that shared ownership of big data is the current scenario within their organisation. Only a fifth of respondents (22%) think marketers are the main gate-keepers of big data, although marketers are perceived to be the single largest group of owners, according to our sample. BIG DATA Ownership of It’s a tussle for turf Sole departmental ownership of big data is still largely up for grabs between marketing, IT and dedicated big data departments. No one has yet successfully planted their flag, and roles and responsibilities surrounding big data are far from clearly delineated. The marketing department The IT department A dedicated ‘big data’ department 42% 14% 23% 18%9% Other No single department Quite a long way behind marketing, dedicated big data departments (17%), and IT departments (13%) take ownership. 12 13
  8. This lack of clarity over which function ‘owns’ big data is not unexpected, given the nascent nature of the technology and processes within most organisations. It may be the case that the IT or big data department are the software proprietors, but that marketers, as recognised customer insight gatekeepers, are responsible for directing the extraction of the right information to power strategic business decisions. In any case, marketing departments have an open opportunity to spearhead the big data revolution, exerting control as the voice of the consumer within their organisations, but only when they can negotiate successful collaboration with IT and data ­— implementing clear and transparent processes which play to each department’s strengths. “BY 2017 THE CMO WILL SPEND MORE ON IT THAN THE CIO” GARTNER.(2) WHAT IS CLEAR IS THAT BIG DATA IS DRIVING CMOs TO FORGE A COMPLETELY NEW PATH IN TERMS OF TECHNOLOGY PURCHASE DECISION-MAKING, OFTEN IN PARALLEL TO THE IT DEPARTMENT. 14 15
  9. Of those marketers already using big data, the large majority are in no doubt that whoever currently owns big data, it plays a pivotal role in the strategic decision-making of their organisation. 69% of marketers currently using big data expressed the opinion that ‘big data is central to shaping the overall operational and commercial strategy of my organisation’. Additionally, 90% of these felt that big data was so mission-critical, that failing to put it right at the heart of business strategy will lead to competitive disadvantage. And big data is set to become ever more vital to decision- making at boardroom level, with 70% of respondents agreeing or strongly agreeing that big data will play an increasingly important role in determining their company’s overall strategy. Those who use it increasingly rely on it BIG DATAof 16 17
  10. of marketers view big data as central to shaping their organisation’s commercial strategy Most interestingly, a further 30% were neutral on this point and not one of the respondents disagreed or contradicted the importance of big data. This suggests an almost universally held view amongst marketers that big data has become a valuable asset, an important tool in shaping strategy or at the very least, that there is no perceptible downside to using big data as a marketer. But could this lead to a temptation to blindly rely on the data without questioning? Marketers must not lose sight of their instincts and let the data do all the talking. The data must be analysed through the filter of experience and knowledge of marketing theory. 69% 18 19
  11. ‘Front line’ tasks include; utilising rich customer insight to determine marketing strategy (68%), to discover new micro-markets (68%), predict future trends, and improve marketing campaign performance and MROI. These are indeed key tasks for marketers, but enhancing their performance in these areas is potentially the tip of the iceberg in terms of maximising the opportunities that big data can offer. To tap into its full potential, marketers will need to become adept at shaping and developing the data into a customised data set that delivers on their specific objectives. Commentators on the application of big data see that the genuinely revolutionary long-term opportunity for business... “isn’t about large organisations running parallel software on tens of thousands of servers, but about more people than ever being able to collaborate effectively around a distributed ecosystem of information, an ecosystem of small data.” (3) BIG DATA Current applications of Big data is mainly deployed for front line marketing tasks Big data has multiple applications for the marketing department. For example, at a purely functional level, it serves as a repository of multi-channel information. However, marketers are primarily using big data to answer key marketing objective-related ‘front line’ tasks, which is predictable enough given that the technology and application is in its infancy in most organisations. This gives us a glimpse of how marketers are just starting to realise the possibilities that big data can offer, to position them right at the forefront of the ever-expanding frontier of customer interaction and strategic insight. Real time social requests and complaints Collaborating organisations / data sharing Using big data to set price points 27% 18% 9% OTHER CURRENT APPLICATIONS that survey respondents are using big data for include: 20 21
  12. The future is personal for marketers – and now forseeable. How will the application of big data by marketers change in the near future? Overall, big data will help marketers continue to deepen and strengthen the relationship between brand and customer, and personalisation is a key trend. The prolific amount of data available from our digital landscape and the ease with which automated content management systems can deploy this data, will allow for “almost infinite personalisation. Enabling marketers to realise the panacea of 1-2-1 marketing.” James Nethercott, Miele Ltd.(4) The most commonly anticipated shift over the next three years is how big data will support more and better interactions with customers as individuals with changing and very ‘human’ patterns of behaviour. BIG DATA Future applications of 22 23
  13. This is seen in the anticipated dramatic 346% increase in the use of big data for more personal customer offers by 2017 (13% of respondents use big data for this currently, increasing to 58% in 2017). And the 114% increase in those using big data for customer segmentation, and the 208% increase in usage of big data to respond to individual customer requests and complaints in real-time (primarily via social media channels). There was also a marked 220% increase in those respondents reporting that they anticipate using big data to spot trends (from 15% currently to 48% in 2017). This is a major new facet of the role of the marketer, to be the predictor of future customer behaviour. Current vs. Future applications of big data by the marketing department. Which of the following does your marketing department currently use big data for? Which of the following, if any, do you expect to use big data for in the next 3 years? Storemulti-channel information Segment customers Ithinkwewillstop usingbigdata Other Predictfuture trends Collaboratewithother organisations Selllists ofdata Set‘price-points’ Respondto customerrequests Developpersonalised offers Developpersonalised communications Justifymarketing strategy Determinemarketing strategy Analysebuying behaviourpatterns 31 % 48 % 29 62 23 52 29 60 23 48 21 63 13 58 12 37 8 19 15 48 0.5 1 0.5 0.5 0.5 1 0.5 0 increase in use of big data for more personal customer offers increase in the use of big data to spot trends 24 25
  14. The benefits of BIG DATABetter insight drives better results for marketers Marketers who are already using big data are experiencing multiple positive side-effects, as well as the more obvious customer insight benefits derived from its usage. As might be expected, 64% felt that increased understanding of customer behaviour was the most significant benefit of big data, as well as increased MROI. But less obviously, higher customer satisfaction (measured via Net Promoter Score) was felt to be a direct benefit of using big data by almost one third (27%) of those surveyed. Additionally an increased ability to ‘speak the language’ of IT and finance, was reported as a benefit by nearly one fifth (18%) of respondents. In this way, big data can be said to be helping marketers to break new ground with the key boardroom pillars of IT and finance, which can only strengthen their pathway to promotion. 64% 27% 18% Understanding behaviour is a significant benefit. Higher customer satisfaction is a direct benefit. An increased ability to speak IT and finance language. Benefits to marketers of using big data 26 27
  15. Whilst 61% of marketers who use big data feel that it has increased their strategic influence within their organisation and 54% agree that using big data has enhanced the reputation of the marketing department, only 23% of marketers feel that they are the gatekeepers of all customer data. • To capitalise fully on the benefits of big data, marketers need to act decisively in three key areas: they need to be capable of identifying the right data to shape strategic decision-making (by thinking harder about what they want to find out about their customers, and focusing on what kind of insight is most useful • they need to own their role in the big data play (as directors of data extraction, and current and future custodians of customer insight) • and they need to apply the data to the right tasks (again, thinking outside their mission-critical marketing objectives and looking to future-proof their marketing strategy by focusing on data predicting future trends). Has marketing been able to capitalise on the BIG DATA Marketers are clearly benefitting ­— but they need to act to consolidate their position. There is no doubt that marketers’ reputations are benefitting from the positive effects of using big data, but they don’t yet feel they have ownership or primary responsibility for it and this may be preventing them from benefitting more comprehensively. 28 29
  16. LEFT BRAIN THINKERS Prefer to rely heavily on the ‘data’ evidence, focus on concrete product benefits, logical storytellers. For many marketers, the main barrier to benefitting from big data is the data itself. More specifically, marketers struggle when the data is misleading or when it is difficult to identify the same customer over different data points, as 55% of those using big data reported. This makes it more difficult to track customer behaviour accurately and target communications responsively. Additionally, a big data specialist skills shortage within the marketing department compounds any problems with the data itself potentially being misleading. Firstly, not all marketers are born data analysts — there are ‘left brain thinkers’ (prefer to rely heavily on the ‘data’ evidence, focus on concrete product benefits, logical storytellers) and there are ‘right brain thinkers’ (creatively-led, big picture thinkers, prone to skim the evidence in favour of gut instincts, seek emotional responses). Data analysis is not necessarily a natural fit for those leaning towards the ‘right brain’ traits, who are perceived to have a tendency to retro-fit the data to the ‘story’ on which their instinct is telling them to focus. BIG DATA What are the barriers to benefitting from and how can marketers overcome them? RIGHT BRAIN THINKERS Creatively-led, big picture thinkers, prone to skim the evidence in favour of gut instincts. DATA ANALYSIS... ...is not necessarily a natural fit for those leaning towards the ‘right brain’ traits, who are perceived to have a tendency to retro-fit the data to the ‘story’ on which their instinct is telling them to focus. 30 31
  17. Alternatively, marketing departments must consider hiring specialist data expertise to plug the gaps in the short term. Finally, a lack of integration with the IT department is a significant barrier for 41% of respondents currently using big data. This points to the need for marketers to learn to speak the language of IT more fluently to be clearer about what they need to get out of big data to achieve right businesses results and to invest time in working with other departments to put the right processes in place in order to achieve this. As a 2013 Forrester report on better collaboration between the CMO and CIO concluded; “To close the gap, IT must ramp up its marketing chops to understand marketing. In return, marketing must clearly outline its priorities, link them to business results and then communicate those needs to IT.” (5) Interestingly and perhaps unexpectedly, budget was viewed by respondents as much less of a barrier to benefitting from big data than lack of training or skills shortage. A relatively small 27% thought investment in IT infrastructure would have an impact and only 23% cited increased marketing departmental budget as a significant way to benefit more from big data. Finally, less than 10% of companies we surveyed who use big data are experiencing no barriers at all, showing that for the large majority of marketers there are indeed multiple issues around training and recruitment to be ironed out before they can further leverage the benefits of big data. Secondly, to overcome the barriers that the data itself presents, marketers must develop a new skill set — Marketing Intelligence. For this they may need specific big data training in the ability to apply marketing theory and the knowledge of sales process to extract meaning and insight from data. In fact, the marketers we surveyed recognise their own shortcomings in this area, with 64% of respondents citing training in analytics as the most effective way to overcome the barriers presented by big data. What is interesting is that educators of future marketers have already identified and responded to this skills shortage, and BA degrees in marketing now offer this as part of the curriculum, with Marketing Intelligence being taught in the undergraduate foundation year. So whilst we can look forward to a new generation of data-literate graduate marketers coming up through the ranks, those already practising the discipline must catch up fast and learn to manipulate data with skill. 32 33
  18. SHIFT Forcing a departmental Numbers and analytics, not PhotoShop and colours 75% of marketers surveyed take the view that big data will become more influential to the way in which marketing departments operate. A further 75% recognised the need to acquire new skills and be better trained, in order to succeed in their roles. Whilst creativity and inspirational thinking will always be a vital attribute for CMOs, they will become increasingly exposed if they don’t work on their data analytics skills. Both of these findings point to a fundamental shift in the future make up of the marketer and big data truly is a game-changer in that respect. ‘Right brain’ marketers will increasingly need to bring their ‘left brain’ into play and acquire new data analytics skills, and CMOs may need to re-think their recruitment briefs to identify candidates with a totally new marketing personality that comprises a unique hybrid of skills — a ‘Data Marketer’. Conversely, marketers do not think that this acquisition of new skills and new responsibilities around the handling of big data will result in more budget for their department. In fact, only 32% anticipated that CMOs will have more budget than CIOs in future. In budget terms, CMOs still have a way to go to prove their case and achieve parity. On the subject of numbers, marketers will also need to “integrate more fully with the finance department, working more closely on the cost of the campaign and the outcomes which will give them more credibility at boardroom level by connecting the marketing function more directly with business results.” Jane Gray, SAP (6) 75% THINK THAT MARKETERS WILL NEED TO LEARN NEW SKILLS TO KEEP UP WITH BIG DATA 34 35
  19. IS BIG DATApropelling marketers to the boardroom and what other significant opportunities for marketers are there? No question, big data is the biggest opportunity for marketers. Big data is viewed by over half of the marketers we surveyed (55%) to be the single biggest opportunity currently available to marketers. Additionally, two thirds (66%) agreed that big data has, or will, help elevate marketing to a boardroom position. The difference between these two figures is interesting to note, as it suggests that even those 11% who don’t currently view big data as the biggest opportunity for the promotion of their function, do view it as their likely single biggest opportunity in the future. These responses clearly suggest that, based on our sample of enterprise marketers, big data is not something that can be safely ignored — even if they are not currently engaging with it — most marketers would benefit from considering how big data fits in to their long term strategy. Leading the digital march Outside of big data, marketers saw their leadership of the organisation’s digital interactions with the customer as the strongest area of opportunity for increasing their influence, specifically; through the increasing need for use of digital communications channels (73%), and accelerating marketing activities through social media channels (58%). This puts marketers in an even stronger position, as stewards of arguably the two most important channels for enhancing customer communication (digital communications) and customer insight (big data). 58% of respondents also saw a significant opportunity in the requirement of marketing to lead on cross-function projects. This delivers three key benefits to marketers looking for board level credibility: • valuable exposure to other functions and better insight into how the business works • increased ability to speak the language of other functions leading to more productive collaboration • an opportunity to test and assert leadership skills in preparation for the top job. agreed that big data has, or will, help elevate marketing to a boardroom position. view big data as the biggest opportunity currently available to marketers. 36 37
  20. Take Christopher Bailey at UK fashion powerhouse Burberry, as a recent example of a senior creative come of age. Since his appointment as Creative Director in 2001, the brand has gone from strength to strength driven by his creative vision and understanding of the business, and he has been selected to succeed Angela Ahrendts as Chief Executive Officer of Burberry when she steps down this year. Perhaps one of the most well-known marketers to famously achieve the title of CEO is Sir Terry Leahy, a marketing pioneer and the first retail marketer to understand the implications of leveraging customer data, with the out-and-out success of the Tesco Clubcard — still the biggest and most successful international customer loyalty scheme of its kind today. In 1992, Leahy was the first Marketing Director ever to sit on the board of Tesco and five years later he took the role of CEO. This strongly echoes Leahy’s view that “the rise of digital technology and the subsequent changing needs of consumers mean that marketers are now better positioned than ever to take on senior leadership roles.” However, he cautions that to succeed, marketers “must be willing to take risks, even in a recession, and produce new and innovative marketing techniques.” (7) Why should marketers become CEOsof the future?An unrivalled combination of skills and attributes Marketers are a great fit for the role of CEO, and more and more organisations are becoming aware of the strengths of creative professionals. Marketers offer an attractive blend of professional skills (great communicators, proven innovators, developers of customer insight, strong leaders, powerful spokespeople, operators across a breadth of functions) and what can loosely be defined as typical attributes (for example, the ability to build their own brand). These give them a significant advantage over other departments who may be equally as influential, but much more siloed. It’s this combination which puts them in a strong position as natural successors and CEOs of the future. When we asked marketers themselves what they believed their strongest attributes were in terms of achieving a potential future CEO role, they cited: Knowledge of customer insight and its applications71% 69% 67% 62% Excellent communication skills An in-depth understanding of the competitive landscape A willingness to take risks 38 39
  21. Finally, A massive 82% of the 52 enterprise marketers we surveyed think that marketing already is a boardroom position, or will become a boardroom position by 2018. This is a reflection of the momentum of digital marketing innovation over the past 15 years, which has propelled marketers to the forefront of their organisation and put them in the vanguard of the data revolution and its powerful applications. It also reinforces marketers’ belief that boardroom respect and recognition has been long-fought and hard-won, and demonstrates their confidence in their new pivotal role in strategic decision-making. A further 16% believe that marketing will achieve a boardroom position, but it will take longer to get there — not for at least five years. It’s a vote of confidence that the goal of most ambitious marketers is achievable in the near future. Respondents also expressed the view that the extent of the opportunity for their function depends also on the nature and genesis of the organisation. For example, millennial brands like Facebook are more likely to be marketing-led and therefore the marketing function within this type of organisation is more likely to be “perceived as a legitimate boardroom post.” (6) Ambitious marketers may want to take this factor into account. WHEN WILL MARKETING BE PROMOTED TO THE BOARDROOM ? A MASSIVE 82% …THINK THAT MARKETING ALREADY IS A BOARDROOM POSITION THE BOARDROOM IS WITHIN SIGHT 40 41
  22. As James Nethercott of Miele Ltd comments, “in terms of the business and its shareholders, how is the investment to be returned?” (4) Marketers are well-positioned and naturally advantaged to become the CEOs of tomorrow, but must put the necessary processes in place to reap the full benefits of big data. Our findings highlight how nascent the role of big data is within most organisations and how there is a lack of clearly defined ownership, training, and sophisticated big data analytical skills across the board. It’s worth noting however that, if marketers are striving to ‘own’ big data ahead of all other departments, they must be clear how it can deliver on shareholder returns in the short term. Will it be viewed as a departmental cost to be absorbed over 25 years, or will there be an expectation of more immediate benefits to offset the significant investment required? The need to always demonstrate business value must be kept front of mind. To summarisee, our research reveals that big data is the single biggest opportunity for more marketers to take on the top job. However the major barriers to using big data — lack of data analysis skills, lack of focus on the right data and inefficient interdepartmental collaboration — needs to be tackled successfully before they can do so. CONCLUSIONS 42 43
  23. Marketers and analysts agree that right now there is an unprecedented opportunity — a perfect storm scenario for marketers to increase their influence — via big data and other significant factors, such as the increasingly digital landscape and the coming of age of marketing-led organisations. Big data is undeniably a hot topic, so much so that it is frequently referred to as the ‘Big Data Bubble’, (8) but it is much more than that, it is a genuine marketing revolution, a Pandora’s box and it’s not going away. Marketers will need to find a way to get to grips with the practicalities of engaging with it or risk losing territory to other departments or competitors. Big data’s applications empower marketers like nothing before and it allows for real-time personalised targeting based on a consumer’s last action. CONCLUSIONS continued But perhaps the biggest story here for marketers is training — big data will only empower the marketing department once they are trained in how to extract the right ‘small data’ to guide strategic decision making. On a very positive note, our research reveals that overall marketers are confident in their ability to lead the astonishing and rapid advances in customer insight successfully and of the seat they have earned at the boardroom table by being able to irrefutably tie customer insight directly to business results. An encouraging majority of the broad sample of marketers we spoke to felt that they had already achieved an unprecedented level of recognition and that marketing is already a boardroom position, or will be within the next few years. What’s more, there are an increasing number of high-profile precedents for marketers making the transition to CEO — a succession trend which encourages the view that marketing is in the ascendancy and that marketers’ particular skill set — budding ownership of big data, and natural aptitude for personal brand building — gives them a distinct advantage in pursuing this end goal. If marketers continue to acquire new skills around number-crunching and analytics, and hone their existing communication and project leadership skills in collaborating with other departments, they will be able to cement an unassailably powerful position within their organisation, supported by increasingly detailed real-time customer insight and the ability to predict future trends, as a result of big data. Big data is undeniably a hot topic, so much so that it is frequently referred to as the ‘Big Data Bubble’ (8) 44 45
  24. In B2B, businesses talk to businesses, but businesses don't buy products or attend webinars or tweet or comment on blogs; people do — and we've kept that front of mind from the moment we set up shop in 2000. Since then, we've developed some impressively long-term client relationships with companies like Mastercard, Vodafone, Cisco and SAP, and picked up numerous prestigious awards along the way, including B2B Agency of the Year in 2012/13 and 2013/14. We pride ourselves on keeping an ear to the ground, and being able to interpret what industry trends and challenges mean for our clients’ businesses — and on helping them steer a safe course through. We are also strong advocates of marketing as a discipline, and we champion marketers as the true ‘all-rounder’ of the enterprise organisation, which is why we wanted to hear their thoughts on the hugely important subject of what’s driving their ever more frequent promotion to the boardroom — straight from the horse’s mouth. As champions of marketers — and marketing champions — we have produced a series of case studies and insight documents which outline our award-winning approach to key B2B marketing challenges, which we call the ‘New Science of marketing’ — the dnx formula for turning customer insight into competitive advantage. ABOUT DNXThe marketer’s choice of marketers – officially (twice) Visit science.dnxmarketing.com to learn how to make friends with data, create successful channel marketing campaigns, make content sticky, drive ‘A’ list leads, and build brand awareness like never before. 46 47
  25. Circle is the B2B market research company. We use research to help B2B brands solve business issues, grasp opportunities and develop competitive advantage. ABOUT CIRCLE RESEARCH Clients, including Vodafone, Samsung, PA Consulting, IAG Cargo and Randstad, call us when they’re wondering what their stakeholders think, want or do: • What makes our target market tick? • How do customers feel about the relationship with us? • What is a compelling, differentiated and credible position for our brand? • How can we best communicate with our target market? • What’s our point-of-view and the evidence behind it? • How can we innovate and better serve our market? This experience, all exclusively in a B2B context, means we have a clear viewpoint on the challenges you face, and the inside track on how to solve them. Learn more about our award winning work here: circle-research.com 1 The 2013 Hype Cycle, Gartner 2 Gartner, January 2012. 3 Dr. Rufus Pollock, Forget big data, small data is the real revolution. 4 James Nethercott, Online and CRM Marketing Manager, Miele Ltd 5 ‘CMO and CIO must accelerate on their path to better collaboration’, Forrester Report, October 2013 6 Jane Gray, Director – Customer Central, SAP 7 Sir Terry Leahy, speaking to Marketing Week at the Marketing Society’s Creative For Commerce conference in London (21 November 2013) 8 whatsthebigdata.com/category/big-data-bubble/ SOURCES 48 49
  26. When will marketing be promoted to the boardroom? Survey Results 1) Just so that your later answers can be placed in context, please indicate which of the following best describes your job role. Company Owner, Director of Board Member 10% CMO (Chief Marketing Officer) 2% Marketing Director 31% Marketing Manager 42% Marketing Executive 2% Marketing Assistant 2% Other 12% 3) Who within your organisation ‘owns’ or is primarily responsible for big data? The marketing department 23% The IT department 14% A dedicated ‘big data’ department 18% Other (please write in) 14% No single department (i.e. shared ownership) 36% 4) Which of the following does your marketing department currently use big data for? Store multi-channel information (e.g. sales, website, mobile, social media data, etc.) 30% Segment customers (discover new micro-markets) 29% Analyse buying behaviour patterns 23% Determine marketing strategy 29% Justify marketing strategy 23% Develop personalised communications for individual customers 21% Develop personalised offers for individual customers 13% Respond to customer requests and/or complaints in real-time (e.g. on social media) 12% Set ‘price-points’ 4% Sell lists of data to generate revenue 2% Collaborate with other organisations (i.e. share data) 8% Predict future trends 15% Other (please write in) 4% None of the above 2% 2) Which of the following statements best describes your company’s use of big data? We were one of the first to use big data 17% We weren’t amongst the first to use big data but we started to use it once it became more mainstream 25% We don’t currently use big data but expect to do so within the next 3 years 40% We don’t currently use big data nor do we have any plans to start using it within the next 3 years 17% 50 51
  27. 5) And has the marketing department been able to use big data to increase its strategic influence within your organisation? Yes 61% No 39% 6) To what extent would you agree with the following statements? ‘Marketers are the gatekeepers of all customer data’ Strongly disagree 14% Disagree 32% Neither agree nor disagree 27% Agree 27% Strongly agree 0% ‘Failing to put big data at the heart of business strategy will lead to competitive disadvantage’ Strongly disagree 0% Disagree 5% Neither agree nor disagree 5% Agree 41% Strongly agree 50% ‘Using big data has enhanced the reputation of the marketing department within my organisation’ Strongly disagree 0% Disagree 5% Neither agree nor disagree 41% Agree 45% Strongly agree 9% ‘Big data is central to shaping the overall operational and commercial strategy of my organisation’ Strongly disagree 0% Disagree 5% Neither agree nor disagree 27% Agree 55% Strongly agree 14% ‘We are using big data a lot more now than we were doing 18 months ago’ Strongly disagree 0% Disagree 14% Neither agree nor disagree 18% Agree 41% Strongly agree 27% 52 53
  28. 6) CTD – To what extent would you agree with the following statements? ‘The marketing department is viewed within my organisation as being central to the overall success of the organisation’ Strongly disagree 0% Disagree 14% Neither agree nor disagree 32% Agree 36% Strongly agree 18% 7) There has been a lot of talk about the ‘potential’ benefits to marketing of using big data. Please indicate which of the following, if any, you have experienced. Increased MROI (Marketing Return on Investment) 45% Increased budget 5% Lower advertising costs (e.g. due to targeted or online campaigns) 36% Increased ability to ‘speak the language’ of IT and Finance 18% Increased understanding of customer behaviour 64% Higher customer satisfaction (e.g. NPS) 27% Competitive advantage (e.g. from being a ‘first-mover’) 32% Other 5% We have not experienced any benefits from big data 14% 8) Which of the following are barriers that are preventing the marketing department from benefitting from big data? Physical constraints (e.g. server space, need to adopt cloud storage, processing power, etc.) 0% Budget constraints 32% Being ‘overwhelmed’ by data 32% ‘Incorrect’ or ‘misleading’ data 50% Difficulties in identifying the same customer across different data points 55% Internal resistance from other business areas 14% Lack of suitable data analytics software 32% Knowledge / skill shortage within the marketing department 41% Lack of integration / a disconnect with the IT department 41% Other 9% We are not experiencing any barriers 9% 54 55
  29. 9) And what do you think needs to happen in order to overcome these barriers? Investment in IT infrastructure (e.g. cloud) 27% Investment in data analytics software 32% Training of existing marketing staff 64% Significantly increased budget 23% Hiring of big data specialists to operate within the marketing team 36% Increased collaboration with external providers 32% Creation of a new dedicated ‘big data’ team 9% Greater utilisation of the skills and experiences of ‘Digital Natives’ 23% Greater collaboration with other departments (e.g. IT) 45% Other 9% 10) Which of the following, if any, do you expect to use big data for in the next 3 years? Store multi-channel information (e.g. sales, website, mobile, social media data, etc.) 48% Segment customers (discover new micro-markets) 62% Analyse buying behaviour patterns 63% Determine marketing strategy 77% Justify marketing strategy 48% Develop personalised communications for individual customers 63% Develop personalised offers for individual customers 58% Respond to customer requests and/or complaints in real-time (e.g. on social media) 37% Set ‘price-points’ 6% Sell lists of data to generate revenue 5% Collaborate with other organisations (i.e. share data) 19% Predict future trends 48% Other 6% I think we will stop using big data 0% 56 57
  30. 11) To what extent would you agree with the following statements? ‘In the future, the CMO will have access to more IT budget than the CIO’ Strongly disagree 12% Disagree 32% Neither agree nor disagree 24% Agree 15% Strongly agree 17% Marketers will need to know more about numbers and analytics, than about Photoshop and colours Strongly disagree 0% Disagree 0% Neither agree nor disagree 5% Agree 41% Strongly agree 54% Big data will become more influential in determining my company’s overall strategy Strongly disagree 0% Disagree 0% Neither agree nor disagree 12% Agree 49% Strongly agree 39% Big data will become more influential to the way in which the marketing department operates Strongly disagree 0% Disagree 7% Neither agree nor disagree 2% Agree 44% Strongly agree 47% Big data is the biggest opportunity currently available to marketers Strongly disagree 0% Disagree 19% Neither agree nor disagree 26% Agree 35% Strongly agree 21% Big data has helped, or will help, to elevate marketing to a board room position Strongly disagree 5% Disagree 12% Neither agree nor disagree 17% Agree 34% Strongly agree 32% 58 59
  31. 12) Leaving big data aside for the final 3 questions, do you see any of the following as current significant opportunities for marketing? Leading cross-function projects 58% Shaping research and development 37% Increasing use of digital communications channels 73% Accelerating marketing activities through social media influencers 58% Increased marketing budget (not due to big data requirements) 25% Other 4% No other opportunities 2% 13) And which of the following attributes, if any, do you think lend themselves to marketers becoming the CEOs of the future? Knowledge of customer insight and its applications 71% Experience of leading cross-function projects 54% Management of large, complex budgets 29% Knowledge of the drivers of innovation 48% Excellent communication skills 69% Willingness to take ‘calculated risks’ 62% In-depth understanding of the sales cycle 42% In-depth understanding of the competitive landscape 67% Other 6% No other opportunities 0% 14) Finally, do you think that marketing is, or will be elevated to, a board room position? If so when do you think this is most likely to happen? It already is 48% Within the next year 8% Within the next 2 years 6% Within the next 4 years 20% It will happen, but not for at least 5 or more years 16% It will never happen 2% 60 61
  32. dnx High House Farm Gomshall Lane Shere Guildford Surrey GU5 9BU t +44 (0) 1483 202949 w dnxmarketing.com e drew.n@dnxmarketing.com twitter.com/dnxtra http://linkd.in/1dRP4db
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