Disruption is an interesting word in today’s business landscape. Some companies thrive by disrupting traditional business practices, while others are being forced to play catch up with these innovative newcomers. One of the biggest effects of disruption is, undoubtedly, the convergence of previously distinct industries. Removing barriers between verticals is a common source of disruption, and brands are finding themselves caught off-guard by the changing dynamic.
In a new report from IBM titled, “Redefining Markets,” the need for personalized, relevant customer experience is on full display, with 63% of surveyed CMOs indicating that this aspect of CX is an investment priority within their organizations. In total, the report’s data was a result of surveying 723 global CMOs in 18 industries.
“Large scale industry disruption caused by IoT, cloud and mobile technologies is forcing CMOs to reinvent how they interact with customers,” said Harriet Green, General Manager of IBM Commerce. “We are working directly with the world’s leading CMOs to help them seize the opportunities in cognitive commerce so they can rethink every aspect of their strategy, design and operations to enhance their customer experiences.”
The report determined that there are two primary groups to which CMOs belong: Torchbearer CMOs come from organizations with strong reputations and financial records, while market follower CMOs come from lower profile, less successful companies. Not surprisingly, Torchbearers have a better grasp on the data explosion in recent years, place a greater focus on mapping customer journeys, and are more likely to collaborate in innovative ways to create better value.
Surveyed CMOs indicated four things that will be higher priorities in 2016:
- Enrich the Arc of Engagement: 75% of Torchbearers are using more event and experiential marketing than their market follower counterparts. Increasing customer engagement is key to success in an evolving market.
- Embrace “Creative Destruction”: Disruption has forced 67% of CMOs to assess strategic direction. Getting ahead of industry disruption can result in innovative, open, and profitable business collaboration.
- Inject Data-driven Insights into Every Marketing Decision: While data-driven personalization is already an essential component of modern marketing strategy, 60% of CMOs plan to continue and expand upon this trend in the next 3-5 years.
- Increase Digital Acumen: Marketing skills have become increasingly intertwined with technological skills, and 79% of surveyed CMOs are looking to hire employees with digital skills. 74% also plan to partner with outside firms to increase digital literacy of programs.