The chief marketing officer (CMO) will be a key player in the boardroom of the future. As more and more business decisions revolve around the consumer, the role of marketing is expanding – and its influence is growing. This is also reflected in the growing landscape of marketing technology solutions and current budget changes.
According to a recent Gartner prediction, the average CMO will spend more on information technology than the CIO by 2017. The reason for this shift is simple: In our hyperconnected and socially networked world, we have more data than ever before about an individual consumer’s buying behavior, preferences, and opinions. Every move and social media interaction they make can be tracked, analyzed, responded to, and predicted. This mass of available information is a potential goldmine for modern marketers as they strive to engage with their consumers at every stage of this new, nonlinear buying cycle. At the same time, synchronized data from the entire supply chain can be gathered and harvested in real time.
So – in theory, at least – today’s CMO has all the micro- and macro-insights they need at their fingertips to guide the boardroom and drive business performance. But first, appropriate and powerful technology must set the foundation for capturing and managing a rapidly increasing volume of data.
Data is the new gold – capitalize on it!
For many marketing professionals, time-consuming, error-prone number crunching is still part of their daily routine. Data from internal sources, retailer point of sales, and market research institutes should be cleansed, harmonized, and appropriately mapped to provide meaningful insights. Apart from manipulating mass data from various sources, the existence of hundreds of isolated data islands with poor data quality and integration lead to inconsistencies that regularly hinders that ability to derive fact-based business decisions. As a consequence, opportunities are most likely under-analyzed, wrongly interpreted, or even missed completely.
A new approach: Marketing performance management
Powered by in-memory computing and flexible cloud and mobile technologies, next-generation solutions can now deliver real-time insights that companies need to compete in the digital economy. Based on a predefined, common language documented in a business blueprint, one consistent source of truth can be generated.
The ultimate goal is to free up marketing resources from non-value-add, routine activities so they can focus on the changing market. Fact-based tactical and strategic decisions from business simulation – this is what marketing is about.
This approach delivers a consistent and reliable framework to compare global and local market share information. Users can deep-dive into one specific country and category, for example, to see which global brands gained or lost market share and how they performed against other brands and the total market over past time periods. A root-cause analysis can help businesses understand which product strategies influenced market-share changes of a specific- or a competing brand.
All of this can be made available to the business user in a simple – yet powerful – mobile app. Find out how Marketing Performance Management services combine the expertise of the SAP Services organization with our software to address specific marketing department challenges. Contact Kristian Kauffmann, global service offering manager for Consumer Products at SAP.