The path to 2020: Marketers seize the customer experience
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A report from The Economist Intelligence Unit
The path to 2020:
Marketers seize
the customer
experience
Sponsored byThe path to 2020:
Marketers seize the customer experience
CONTENTS
About this report 2
Executive summary 3
Introduction 5
Be everywhere and be ready 7
Case study 1: Co-creation for brands and customers 8
Personalisation at scale 10
Winning with customer experience 13
Case study 2: Helping people succeed with their health 14
Conclusion 17
1 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
ABOUT THIS REPORT
The path to 2020: Marketers seize the customer Interviewees
experience is an Economist Intelligence Unit
report, sponsored by Marketo. The Economist Chris M Kormis, Associate Dean and
Intelligence Unit bears sole responsibility for CMO, McDonough School of Business,
the content of this report. The findings do not Georgetown University
necessarily reflect the views of the sponsor. Kristin Lemkau, CMO, JPMorgan Chase
The report draws on two main sources for its
research and findings: Jonathan Martin, CMO, Pure Storage
Hans Notenboom, Global Head of Digital,
l A survey that included responses from 499
Philips
chief marketing officers (CMOs) and senior
marketing executives worldwide. More than Keith Weed, CMO, Unilever
50% of respondents hold the CMO title or
top marketing position. Respondents are
We would like to thank all interviewees and
located in North America (27%), Europe
survey respondents for their time and insights.
(30%), Asia-Pacific (36%) and Rest of World
The report was written by John du Pre Gauntt
(7%). More than 50% of survey respondents
and edited by Gilda Stahl.
(52%) hail from companies with more than
US$500m in revenue.
l A series of in-depth interviews with senior
executives.
2 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
EXECUTIVE SUMMARY
The path to 2020: Marketers seize the customer sponsored by Marketo. This year’s research
experience is based on a global survey of analysed the customer experience in terms
499 CMOs and senior marketing executives, of its role as a direct interface of a brand
plus in-depth interviews with leading CMOs. with its customer—everywhere, anytime
The research explores which technologies and across platforms.
and customer trends are likely to change
marketing organisations the most over the 2. But marketing complexity is growing
next five years. sharply. As customer experience overtakes
Marketers have spent much of the mass advertising as a preferred channel to
past decade working on perfecting their the customer, CMOs must learn to manage
ability to understand the customer through staggering amounts of complexity.
personalisation. What is different about 2016 More than half of respondents believe
through 2020 is how CMOs are matching that the accelerating pace of technology
understanding with direct action that drives change, mobile lifestyles and an explosion
engagement—and doing so at scale. The of potential marketing channels via
survey data and interviews reveal that leading connected objects and locations will
CMOs are pioneering a new model that change marketing the most by 2020,
blends a deep understanding of a customer’s driven by billions of possible interactions
contextual situation with timely, tailored they create between a company and its
delivery of relevant content and marketing customers.
assets.
To illustrate this process at work, the EIU 3. Top marketing channels are those that
developed a framework—“The layers of lend themselves to personalising the
engagement”—that classifies the elements customer experience. The top channels to
that contribute to a personalised customer the customer in 2020 will be social media
experience, and how it creates value for a (63% of respondents), the World Wide Web
customer and for a marketing organisation. (53%), mobile apps (47%) and mobile web
(46%). Publishing-centric channels like
Other insights from the research include: television, radio and print scored far lower.
1. CMOs own the customer experience full 4. Customer experience drives brand
stop. Eighty-six percent of CMOs and senior equity more than ever. CMOs are
marketing executives believe they will betting that a personalised, efficient
own the end-to-end customer experience and consistent customer experience
by 2020. The EIU explored this trend last will translate into customer loyalty and
year in The rise of the marketer: Driving brand value. Marketers listed raising
engagement, experience and revenue, customer loyalty and better brand
3 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
perception as the two top benefits (both
53%) they aim to realise through a more
positive customer experience.
5. Future innovation will focus on small
screens and no screens. Mobile devices
and networks (59%), personalisation
technologies (45%) and the Internet of
Things (39%) are the three technology-
specific trends that will have the biggest
impact on marketing organisations by 2020.
4 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
INTRODUCTION
People conduct referendums on brands based on how well they manage brands.
on a daily basis. They vote with their online Consequently, the increased pressures on
searches. They vote with their transactions, chief marketing officers to raise the value of
their social networking, plus a host of other brands for this new competitive environment
❛❛ interactions that enhance or degrade are transforming how CMOs engage their
If you’re still the value of brands. Armed with digital customers.
thinking of the technologies and social media, people “If you’re still thinking of the CMO as chief
CMO as chief rapidly and inexpensively compare products, megaphone officer, then you’re stuck in the
megaphone services and ideas. Most important, they share ’90s,” says Jonathan Martin, CMO of Pure
the results with one another through ratings, Storage. “Today, the primary task of CMOs
officer, then
reviews and other means. With all of this is to deeply understand customer buying
you’re stuck in available choice, brands have never been behaviour and intent; deeply understand the
the ’90s. more important—or more easily tuned out by context of where someone is in their decision
❜❜ customers. journey; be able to predict what they’re most
Jonathan Martin, While the primary value of firms in the likely primed to do next; and be ready to
CMO, Pure Storage
industrial age was derived from how well influence them at the right moment.”
they managed hard assets such as factories, To better understand which technologies
product lines and distribution channels, the and customer trends are changing the CMO’s
information age rewards and punishes firms charter per Mr Martin’s description, the EIU
What is a single, best version of customer truth?
A single, best version of customer truth is Privacy: Do the data require a customer’s
derived from inputs such as demographics, permission and/or consent?
psychographics, clickstream or purchase Applicability: Do the data apply across
behaviour, customers’ devices or locations, marketing and business processes?
the content they’re viewing, along with Value: Do the data help a marketer meet
myriad other data points. These data streams key performance or business goals?
are harmonised to portray a composite Internally, CMOs use a single, best version
picture of the customer that provides the of customer truth as a strategy for integrating
word “single” to the definition. However, for marketing analysis, creative development
an image of a customer to become the and marketing automation capabilities
“best” version of truth, analytic capabilities with customer management and support.
constantly evaluate the data against the Externally, this resource helps marketers be
following criteria: where the customer is in his or her journey to a
Uniqueness: Are the data specific to the transaction, both literally and figuratively.
user or common to a target segment?
5 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
Eighty-six conducted a global survey of 499 CMOs and Eighty-six percent of CMOs and senior
percent of senior marketers, combined with in-depth marketing executives believe they will own
interviews with leading CMOs. The survey data the end-to-end customer experience by 2020.
CMOs and
and interviews reveal that from now through Making the transition to a Big Capabilities
senior
2020, CMOs will reorganise their departments model of owning the customer experience
marketing around personalised customer experiences as across any platform or context requires
executives a core strategy for creating and growing the a comprehensive understanding of the
believe they will value of brands. customer. IIncreasingly, this understanding of a
own the end- This model for brand building is not based customer’s context emerges from a synthesis
to-end mainly on a “Big Idea”—a single, unifying of data, technology and human analysis---a
creative concept around which all marketing “single, best version of customer truth”.
customer
collateral is created and distributed across A single, best version of customer truth
experience by well-defined media and technology platforms combines information about an individual’s
2020. to millions of people. Instead, more leading history, preferences and desires, with
CMOs are focused on data and analytics- information about an individual’s present and
fuelled “Big Capabilities”, which allow them potential value to a brand (see full definition,
to understand the immediate context of a previous page). Only then can it become a
person and then personalise his or her end-to- unified asset or resource to be used by multiple
end customer experience across platforms, organisational units, not just the marketing
locations and physical objects. department.
6 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
BE EVERYWHERE AND BE READY
The survey and interviews show that a greater Starting at the base of the model, CMOs
portion of a CMO’s success is starting to are under pressure to acquire, grow and keep
hinge on developing and maintaining a customers who are technically and socially
single, best version of customer truth for the connected with one another. The core asset
entire organisation to use. At the same time, required for CMOs to conduct a contextually
CMOs are in the midst of reorganising their relevant dialogue and/or two-way relationship
departments around data and analytics as is a single, best version of customer truth.
much as content and media channels. This model of the customer and his or her
This transition has numerous moving parts. world enables brands to create personalised
For this reason the EIU developed a descriptive experiences that ultimately lead to value being
framework called “The layers of engagement” exchanged between a customer and a brand.
(see chart, below), to illustrate some of the It is no accident that the framework
linkages between competitive pressures and looks like a technology diagram. Already,
the response by CMOs. Admittedly, ours is a marketing has become an intense data- and
crude model of a complex process. However, technology-driven discipline in highly digitised
the schematic attempts to classify the various industries such as media & entertainment,
layers that contribute to a personalised automotive, or travel & leisure. Simultaneously,
customer experience, then map how those a data- and technology-centric view of
components deliver value to a customer and marketing is taking over in sectors such as
an organisation. education, consumer packaged goods and
The layers of engagement
IN
LTS
Value for
SU
RE
customers &
organisations
TES
Winning customer
EA
experience
CR
LES
Personalisation everywhere
AB
EN
A single, best version of customer truth
S
IRE
reaching across any marketing touchpoint,
QU
anywhere in the journey
RE
RE
Find, win, grow, retain customers
SU
ES
PR
7 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
CASE STUDY 1 Co-creation for brands and customers
An example of a data-first marketing brand, Chef Wendy converses with customers
mentality at work is All Things Hair1 by Unilever. who text a list of the current ingredients they
The consumer goods firm partnered with have at home to the system. Chef Wendy
Google to analyse over 11bn global online then returns suggested recipes based on
searches happening each year related to ingredients the customer already has. The
salon styling and hair care. According to system creates a unique customer profile
Unilever’s CMO Keith Weed, the company to continually learn about their individual
used the anonymous search data to develop preferences and/or dietary requirements.
specific content for an online video channel All Things Hair and Chef Wendy illustrate
called All Things Hair. how more CMOs are using technology,
“We worked with Google to derive the data and design to co-create a branded
hair-related questions people wanted to ask,” experience with the individual customer
Mr Weed says. “From there, we developed rather than try to expose them repeatedly to
the native content to reach and engage a branded message. Providing direct utility to
them. People can now find tutorials and the customers in lieu of broadcasting messages to
products they need to make the newest them offers new opportunities for marketers.
hairstyles on a bespoke YouTube channel. But it also requires them to balance short- and
That’s a new type of utility content.” longer-term time horizons more than ever.
Another example is Chef Wendy, a fully “It’s where I think a CMO’s job has changed
automated recipe system that engages quite a lot,” says Mr Weed. “The ability to be
people in natural language conversations external- and future-oriented is no longer
via SMS. Launched by Unilever’s Knorr food optional. You’ve got to have a point of view
about the future if you’re going to be where
1
www.allthingshair.com it’s headed.”
healthcare, among others. changing as she moves through her day. In
The evolving role of data from just recording this new environment, the core challenge for
what happens in a relationship between a brands is to be everywhere and to be ready
customer and a brand to actually making for however the customer chooses to interact.
things happen in that relationship comes The survey data suggest there is not a lot
❛❛ courtesy of mobile phones and social media. of time for CMOs to get things right. Survey
The ability to be More than just tools through which people respondents agree that marketing complexity
external- and access content or communicate with each has picked up speed and scale. When asked
future-oriented other, smartphones and social media have to compare which trends in the business
is no longer become extensions through which a growing environment will change marketing practice
number of people participate and create the most by 2020, respondents listed the
optional.
modern life and culture. accelerating pace of technology change,
❜❜ This potent combination of powerful mobile lifestyles and the explosion of potential
Keith Weed,
CMO, Unilever
technology and new behaviours will evolve marketing channels as their top three choices.
even more rapidly as trillions of sensors, tags The specific technology trends that are
and beacons spread into physical objects and driving those business environment changes
the outside world. A new type of personalised by 2020 are mobile devices and networks,
cloud of devices, information and applications personalisation technologies and the Internet
will travel with the customer, evolving and of Things.
8 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
Which three technology trends will have the biggest impact on marketing organisations
by 2020?
(% of respondents)
59
45
39 38 37
25 24 22
10
Mobile Personalisation Internet of Predictive Big Virtual/ Wearable Contextually Block chain
devices and technologies Things analytics Data/Artificial Augmented technology smart virtual technologies
networks (eg, geo- Intelligence reality assistants (eg, (eg, Bitcoin)
targeting) Siri, Google Now)
Source: Economist Intelligence Unit survey, 2016
Taken together, these technology trends use that knowledge to drive engagement
suggest a fundamentally different competitive and dialogue. “Although it helps, it’s not
environment for marketing, one based just experience with particular platforms
more on data and systems than on media that counts most. It’s almost like you need
and screens. It is an environment that prizes a different kind of thinker because the skills
marketers who can generate insight about are changing,” says Kristin Lemkau, CMO of
the customer’s immediate context and JPMorgan Chase.
9 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
PERSONALISATION AT SCALE
Surveyed and interviewed marketers seem to those channels that only deliver branded
agree that the ability to personalise customer messages.
experiences at numerous touchpoints When asked about the top three channels
will become an essential feature in future through which customers experience their
marketing departments. According to the organisation’s marketing efforts today,
CMO Council, personalisation blends a deep marketers placed mass-media channels such
understanding of a customer’s wants, needs as print, television and radio at the bottom.
and desires with timely and tailored delivery of Interactive media channels like the World
relevant content, products and services. The Wide Web, social media and e-mail took the
internal methods and technologies behind top three slots.
personalisation help marketers listen and However, when marketers are asked
converse with multiple audiences with the right about the top three channels for customers
(not often the same) branded messages or in 2020, social media increases sharply for
experiences. marketers, while the World Wide Web declines.
Personalisation as a driving force for By 2020, mobile apps and mobile web will
marketing success is emphasised repeatedly in overtake e-mail as a top channel to the
the survey results and interviews. This does not customer. Altogether, this suggests that by
mean that mass-media channels are suddenly 2020, the top three channels to the customer
unimportant. It means that technology or will be those that focus on personalisation
media channels that help create personalised and engagement, while the bottom three
engagement with the customer are gaining channels will be those that focus on publishing.
value in the eyes of CMOs compared with The ability to personalise channels also plays
What are the top three channels through which you expect your customers to experience
your organisation's marketing efforts in 2020?
(% of respondents)
63
53
47 46
36
17 15 14
7 1
Social Web Mobile Mobile E-mail Direct Television Print Radio Other
media apps web mail
Source: Economist Intelligence Unit survey, 2016
10 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
❛❛ an important role in customer acquisition, success depends on using technology in the
If I can’t a core marketing objective. According to broadest sense of the word,” he says. “If I can’t
combine Chris M Kormis, Associate Dean and CMO combine analytical and creative smarts, it’s
analytical and for the McDonough School of Business virtually impossible to be an effective CMO.”
creative smarts, at Georgetown University, the need for Technology excellence is closing the gap
personalisation in higher-education marketing as a top strategic marketing goal from now to
it’s virtually
is changing how schools use social media. 2020. When asked about their priorities today,
impossible to “It used to be that you put an ad up on survey respondents chose customer loyalty
be an effective Facebook or sponsored a tweet or similar to and retention and customer acquisition as
CMO. drive recognition of your brand,” she says. “But the top two strategic programmes for their
❜❜ now, as opposed to being another publishing organisations (see chart). The third choice—
Jonathan Martin, platform, social media is more about finding pioneering new and emerging technologies
Pure Storage the people you want for the market you’re to engage our audiences—was almost ten
trying to reach. You want to find people who points below the top two choices. Fast-forward
are like your successful students. You want to 2020, customer retention and loyalty plus
to understand their likes and dislikes. And customer acquisition still occupy the top two
then, you want to personalise your content to slots. But they are separated from pioneering
them.” new technologies by only 1.6%.
This suggests that by 2020, more marketers
No longer just about ads expect they will interact directly with
Personalisation, therefore, is a key factor in their customers through technology and
how brands find, win, grow and keep their personalisation than interact indirectly
customers. It is also affecting how CMOs with their customers through media and
bring technology into their organisations. Pure advertising. This is a logical response to a
Storage’s Jonathan Martin notes that more marketing environment that overflows with
CMOs are coming from science backgrounds, information and choices available to the
whether computer science or statistics. “My customer.
What are the top two strategic programmes that define your marketing department?
Today In 2020
(% of respondents)
45 45
39 39
37
35
30
28
19 19 20
18
15
11
Focusing on Focusing on Pioneering new Adopting a mobile- Bringing new skill Branding and Becoming a
customer loyalty customer and emerging and social-first sets into the customer data-driven
and relationships acquisition technologies to approach to major marketing experience marketing
engage our marketing department organisation
audience campaigns (eg, data scientists)
Source: Economist Intelligence Unit survey, 2016
11 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
❛❛ “Achieving personalisation at scale is the cycle to acquire it,” says Ms Lemkau. She notes
Achieving biggest and most important challenge for us that personalisation at every touchpoint is now
personalisation to get right,” says Ms Lemkau of JPMorgan a prerequisite for CMOs who expect to own
at scale is the Chase. By definition, a banking relationship the customer experience.
biggest and requires a customer to entrust an enormous Customers typically show up at a brand’s
amount of data to a service provider. front door—physical or virtual—already well
most important
Service providers in turn are expected to educated about what a brand potentially
challenge for use these data for the customer’s benefit. offers them. This changes how a CMO positions
us to get right. “So we have to work hard to create the kind marketing resources and assets. “You’re no
❜❜ of infrastructure that supports personalised longer marketing AT people,” says Ms Lemkau.
Kristin Lemkau, marketing that doesn’t feel like an ad “You’re influencing them in an environment
CMO, JPMorgan Chase or invasion, but feels like a benefit that’s where they’ve already had a chance to form
available at the right point of a purchase a view.”
12 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
WINNING WITH CUSTOMER
EXPERIENCE
Engaging customers with compelling, CMOs have become laser-focused on
contextually relevant experiences is the new CX because it directly hits both the top and
competitive high ground. This is because bottom lines of business. In analysing the
the information battle to find the best deal survey findings, the EIU cross-referenced
is over between brands and customers. respondents who are self-reported customer
Customers won that battle in a rout courtesy experience leaders (ie, those companies that
of search engines and social media. By set the standard for their primary industry)
becoming one another’s intelligent agents with general business measures of profitability,
via social networking, people can rapidly revenue growth and customer acquisition. Of
access competitive offers, check reviews, the 499 total survey participants, nearly half
ask their friends and share results across their of the self-reported profitability leaders are
communities. also customer experience leaders. Customer
This shines a bright light on the link between experience leaders account for 41% of
what marketers say via advertising and revenue growth leaders and 43% of customer
what they do as captured by the customer acquisition leaders. When we compared
experience (CX). There are numerous customer experience leadership with
technical and industry-specific definitions of marketing performance, the EIU found that
CX that range from the most broad—“the two-thirds of customer experience leaders are
cumulative impact of marketing content and also marketing performance leaders.
touchpoints on a customer’s perception of a Given the importance of customer
brand”—to the most banal—“what people experience to the business itself, CMOs are
feel when a brand helps them score a point in being held accountable for CX across the
the game of life”. entire organisation, not just the marketing
Rank from 1-5 (1=most important, 5=least important) what your organisation thinks are the
priorities for a winning customer experience.
(% of respondents) 1 2 3 4 5
20
15
10
5
0
An entertaining/fulfilling A personalised/relevant A socialised/engaging A consistent/predictable A fast/efficient
customer experience customer experience customer experience customer experience customer experience
across channels
Source: Economist Intelligence Unit survey, 2016
13 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
❛❛ department. According to the survey, 86% Personalisation is not the only ingredient in
For us, of CMOs and senior marketing executives a winning customer experience. When asked
engagement is believe they will own the end-to-end customer to rank the priorities for such an experience,
more than experience by 2020. respondents listed a personalised customer
repeat sales of Full ownership of the customer experience experience at the top, followed by a fast
by the CMO’s office affects many and efficient experience that feels consistent
healthcare
organisation-wide decisions. CMOs will need across platforms.
equipment; this additional clout as their role expands The analysis suggests that for a growing
engagement is beyond planning and executing marketing number of CMOs, modern marketing is
having a campaigns. If they are expected to own the all about contextually relevant customer
meaningful customer experience outright, CMOs must experience and engagement. But it is equally
long-term become more deeply involved in decisions important to remember that some of the
relationship that affect the entire organisation. For best customer experiences are often those
example, nearly 90% of survey respondents that help people travel along a journey that
with all the
believe marketing departments will exercise culminates in the human touch. “Regardless
stakeholders. significant influence over business strategy of how they were inspired to visit our website,
❜❜ by 2020, while nearly 80% say marketers will we want the website to be relevant and
Hans Notenboom, exercise the same influence over technology. responsive to what they’re looking for,” says
global head of digital,
Philips
CASE STUDY 2 Helping people succeed with their health
Exchanging personal data effectively and US from US$174bn in 2007 to US$245bn in
securely across a continuum of health 2012, according to the American Diabetes
professionals, patients, families and caregivers Association1.
is crucial for next-generation healthcare. The migration of healthcare outside of
Nowhere else is a single, best version of traditional hospital and clinic settings feeds
patient truth more sorely needed, but more into a second trend, which focuses on greater
difficult to achieve. personal responsibility for health. In this case,
“The key is connecting the different pieces the primary healthcare marketing goal is to
of the puzzle and ensuring that the right data help a patient make a lifestyle change. As
are exchanged at the right point,” says Hans such, healthcare marketers are taking more
Notenboom, global head of digital for Philips. holistic approaches for engaging patients
According to Mr Notenboom, two core trends across a range of medical, nutritional,
are transforming how healthcare is delivered physical fitness and community-oriented
and, by extension, how healthcare marketers contexts. “For us, engagement is more than
must respond. just repeat sales of healthcare equipment,”
The first trend is that healthcare is moving says Mr Notenboom. “Engagement is having
away from hospitals into the home and a meaningful, long-term relationship with all
daily life. Home monitoring and remote the stakeholders. Our direct buyers are only
diagnostic technologies are providing a small fraction of the ecosystem. But our
medical professionals and caregivers with solutions must create value for each and
an on-going, remote picture of a patient’s every member of the healthcare ecosystem if
condition. This is especially important for we’re to be successful.”
treating chronic conditions like diabetes,
1
http://www.philips.com/a-w/innovationmatters/blog/
the cost of which has increased in the Innovating-across-the-health-continuum.html
14 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
How is marketing impact measured in your organisation today?
How will it be measured in 2020?
(% of respondents)
Revenue Brand Lead Customer Customer Budget
impact awareness generation acquisition engagement efficiency
and pipeline (eg, ROI)
25
20
15
10
5
0
Today 2020
Source: Economist Intelligence Unit survey, 2016
Ms Kormis of Georgetown University. “We want reducing huge data sets about customers
them to learn more about our students, our into the decisions and actions that create
faculty and our alumni. Then, if they give us a contextually relevant and personalised
their contact information, we want to engage customer experience. But analytics is also the
them through e-mail and then phone calls. area where speed counts most, according to
And then we want to get them to come to an Mr Martin of Pure Storage. He notes that there
event to give them a taste of what we offer. remain many marketing organisations that run
Eventually, we hope they will tour the campus their customer analytics as batch computing
to meet other students and other members of jobs at the end of a business day, rather than
the Georgetown community.” moment-by-moment: “They can tell you how
❛❛ Elevating a personalised, efficient and the world was yesterday or last week. What
All organisations consistent customer experience requires they can’t do is tell you about the world three
are struggling to that CMOs integrate multiple departmental seconds ago. And they certainly can’t predict
understand agendas under a single umbrella. Most the future,” he says. “All organisations are
where the CMOs readily admit that this is often a struggling to understand where the customer is
long, tough slog. But in the same breath, in their journey at any one moment.”
customer is in
they acknowledge that better customer Even if a critical mass of marketers gains the
their journey at experience is the foundation for business ability to understand the world three seconds
any one performance. ago and predict where it will go next, they still
moment. must describe how such knowledge directly
❜❜ The need for speed affects business performance. When the
Jonathan Martin, Historically, CMOs operated in an environment survey asked how respondents measure the
Pure Storage where information about the customer impact of their marketing strategy, revenue
was difficult to obtain, difficult to obtain impact and customer acquisition stood head
quickly—or both. This is no longer the case. and shoulders above other measures of
The amount of information about customers marketing success like brand awareness or
is expanding rapidly as more of daily life is budget efficiency. By 2020, revenue impact
digitised with connected objects and locations. remains the top metric, with every other
Simultaneously, the quality of captured measure playing a more or less equal role in a
information in this environment has frequently suite of measuring capabilities.
not kept up. That said, different forces are now
Analytics capabilities are critical for influencing customer loyalty, according to
15 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
❛❛ Ms Lemkau of JPMorgan Chase. “Customer That can still work, but we also see sharing
The experience experience-based loyalty will be a big change economy platforms like AirBnB that build
is the marketing for us,” she says. “For example, many of our loyalty through a repeat positive experience.
and the products are reward-based products. They The experience is the marketing and the
experience is measure loyalty in points accumulated by the experience is what drives performance.”
customer the more he or she uses the product.
what drives
performance.
❜❜
Kristin Lemkau,
JPMorgan Chase
16 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
CONCLUSION
As CMOs adopt new innovations in marketing culture. Today’s audiences traverse multiple
technology and best practice, they speed up mainstreams and counter-cultures via mobile
the adoption rate of other innovations, as if and socially connected devices and services.
in a chemical reaction. Only in this case, the Audiences in 2020 will do that and a lot more
volatile compounds being mixed are mobile as IoT, virtual and augmented reality, plus AI
and broadband technology, social media, cause interactivity to spill out of screens and
data, analytics and, soon, the Internet of into the outside world.
Things (IoT) and Artificial Intelligence (AI). It raises the question: How will brands
How will brands To stay relevant in the midst of such change, find, win, grow and retain customers across
find, win, grow marketers are moving away from just porting fragmented audience environments with
the same creative idea across technology and unlimited digital shelf space?
and retain
media platforms. Instead, leading CMOs are The research suggests that marketers should
customers
organising their departments to stand ready organise around a single, best understanding
across to engage the customer with contextually of the customer and her context to drive
fragmented relevant, personalised experiences— personalised customer experiences across
audience everywhere and anytime. platforms and at scale.
environments Of course, the irony is that the more As data and analytics capabilities transform
with unlimited powerful technology becomes for tailoring marketing organisations, CMOs must master
and targeting content and messages, the a new model of value and exchange based
digital shelf
more complex and variable the customer on personalised customer experience.
space? journey starts to be. It may be that customers According to Unilever’s Keith Weed, customer
are accessing similar content on similar experience-based marketing offers a better
websites, apps or platforms. But in their journey model than advertising for a crowded,
to a transaction, people are stringing together information-rich marketing environment.
and/or mashing up these technical and social “Brands need to help people simplify life so
elements in combinations that often are we all don’t go mad as this world becomes
unique to them. more complex,” says Mr Weed. “I believe that
This complexity will swell because CMOs no people who focus on that will unlock the true
longer live in a world where they only need power of data.”
to engage the mainstream and the counter-
17 © The Economist Intelligence Unit Limited 2016The path to 2020:
Marketers seize the customer experience
Whilst every effort has been taken to verify the
accuracy of this information, neither The Economist
Intelligence Unit Ltd. nor the sponsor of this report can
accept any responsibility or liability for reliance by
any person on this report or any of the information,
opinions or conclusions set out in the report
Cover: Shutterstock
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