Section 2
Claire Davidson, strategy and planning director, Twogether
Marketing is no longer viewed as simply a cost centre. Now it is recognised as a vital engine for generating revenue, which is reflected in its growing budgetary allocation. CMOs are putting their stamp on the growth agenda – small wonder they are met with greater scrutiny at board level.
For the CMO, demonstrating performance is an urgent priority. But how to make the best case? The board will not be interested in nitty-gritty details or – worse – complicated excuses. What’s required is a long-term focus that correlates investment against outcomes.
Of course, it’s not so simple. There are many variables to consider and disruptive factors that exist far beyond the CMO’s control. However, as an industry, we’re getting closer to defining important benchmarks, which convey the value that marketing returns over a longer timeframe.
We must promote a shift in the boardroom mindset – away from marketing investment delivering immediate revenue, and towards a balanced development of long-term demand and the sustained growth it brings.
Our view is that marketing should drive results in three key areas. These are:
These characteristics of an outstanding marketing department (or agency) will soon become essential capabilities – so, what do they look like on closer inspection?
Firstly, efficient demand generation must be viewed both in terms of net new business and long-term growth potential. Marketing must flex to support more complex buyer journeys as new business models are created.
Keeping customers actively engaged is vital. Tech brands need close connections and a deep understanding of their customer’s needs to establish new products and routes to market.
Marketing departments must therefore increase their collaboration: working more closely with sales and other customer-facing teams, and serving as the voice of the customer, while sharing responsibility for pipeline generation and lifetime value.
Secondly, this is inextricably linked to managing customer experience. Marketing must take the lead in cultivating one-to-one relationships – relying on insight from data that’s collected throughout the entire customer lifecycle. The goal is to achieve a unified view that shows what each customer really cares about.
Finally, this requires consideration and investment into what your brand represents – its purpose or ideology. It’s often these values that become key competitive differentiators when there is parity on technology and price.
A brand that embodies authenticity and encourages trust is crucial for forming efficient demand, and long-lasting customer relationships.
Each of these pillars can be measured and explored in greater depth, using a raft of traditional KPIs and reporting techniques. However, our belief is that a more holistic view based on these three pillars should accompany any presentation to the board of marketing’s contribution.
This report shares details of the experiences that successful marketers have had when communicating performance and gives insight into the problem-areas many will face.
Most importantly, it demonstrates how prioritising collaboration and departmental integration can deliver significant benefits and revenue growth in the long-term.
