New research has found that most Australian and New Zealand businesses are failing to reap the full benefits of digital marketing.
The study, conducted by Boston Consulting Group (BCG) and Google, found that just two per cent of Australian and New Zealand organisations have developed digitally mature brands, after surveying more than 40 brands across nine industries.
And by digitally mature, BCG is referring to brands that exceed customer expectations by consistently delivering coordinated, relevant and sequenced experiences across a range of online and offline channels.
The most mature brands reported significant benefits from data-driven marketing, with an average incremental 15 per cent revenue impact and 12 per cent cost efficiencies.
Brands within the financial services industry appear to be the most mature, while the consumer products industry fell significantly behind, according to the report.
Chris Mattey, partner and managing director of BCG’s Sydney office, said: “While many companies see the value of digital marketing, most aren’t doing it as well as they could.
“Very few fall into the most mature category, where they are able to achieve meaningful connections with consumers, and realise a step-change in cost and revenue uplifts.”
The study also identified the common technical and organisational factors attributed to digitally mature brands.
The technical factors included connected data, automation and integrated technology, and actionable measurement, while the organisational factors were strategic partnerships, specialist skills, and agile teaming and fail fast culture.
“Interestingly, brands that are more mature in the people and organisation dimensions report three times higher revenue uplifts than those that are less mature in these areas,” Mattey added.
“But it’s not just a matter of having a great digital marketing team. Digitally mature brands have buy-in from the highest C-suite levels and cross-functional and empowered teams working on complex problems to drive business, not just marketing, outcomes.
“They don’t see this as a marketing problem, but a true collaboration with a program mindset.”
Aisling Finch, marketing director for Google in Australia and New Zealand, said: “We know that consumer expectations are rising. Consumers want fast, relevant, seamless experiences.
“This research sets out a clear path for brands to tap into this opportunity and keep pace with these rising expectations.”