There Is A Disconnect Between Management “Success” And Marketing Metrics: Oracle’s Paul Cross

Responsys Pty Ltd.

Photograph by Arsineh Houspian.  +61401320173 arsineh@arsineh.com
SHARE
THIS



Yesterday, a bunch of Sydney journos gathered for a posh lunch with ADMA and Oracle Marketing Cloud to discuss ‘the CMO of tomorrow’, following some big bits of data coming out of a new research report.

Over 450 senior marketing execs in Australia, New Zealand, India and Singapore took part in the survey, which looked at how organisations are meeting the challenges and obstacles faced in today’s digital market, and how their investments are likely to change in the year ahead.

At a business roundtable, Jodie Sangster, ADMA CEO, and Paul Cross, group vice president customer success, ANZ, Asia and Japan, Oracle Marketing Cloud, outlined the key findings of the report.

Interestingly, 62 per cent of respondents in Australia have a specific revenue target in their KPIs, while 84 per cent rated their analytics skillset was either excellent or good.

On the flip side, however, few people were willing to describe their levels of sophistication around digital marketing with regards to people, process and technology as excellent, with 22 per cent considering themselves to be downright stragglers in this race.

According to the results, the role of the CMO has vastly moved away from its traditional model.

“Senior executives want their marketers focused on business goals line revenue growth and return on investment but many marketers are still too focused on traditional campaign metrics as a measure of success,” Cross said.

The research has highlighted the disconnect between what senior management define as success which is revenue versus the campaign specific metrics that many marketers still measure themselves on.

“The more a CMO is able to move what I would call ‘proxy’ measures of success, which has been traditional in the marketing industry as things like tarps, promoter scores, ratings, to dollars, which the digital channels have more enabled, the better.

“CMOs who are able to pull together the financial side and the executional side and show value are the ones that will be successful, as distinct from the proxy measures, where you talk about response and ratings.”

“Previously a marketing head would have come up through the marketing ranks, ended up as head of their marketing team and sending out a lot of marketing campaigns – and hopefully driving revenue off the back of that,” Sangster added.

“The role now is changing dramatically so it has become much more about CX. It’s not just about sending out campaigns and hoping people will buy your product. It’s about making sure you’re delivering on your customers’ needs at every touchpoint where the customer comes to you.

“If they’re on your website, you’re delivering what a customer expects from you, if you’re a call centre you’re meeting their expectations there.”

Sangster explained, “The next step is around customer experience, and so many companies are focused on delivering an exceptional customer experience. And that’s often sat within the marketing department, given to marketers to be responsible for, but customer experience requires every touchpoint of a business to be thought about and delivered to customer expectations.

“The role of data and the role of marketing plays a prominent part in that.”

Cross added, “When we think about marketing, we often conflate both demand generation – sell more of my product – with marginal – make more profit per transaction. The purpose of marketing is to do both.

In some ways, it’s the responsibility of the CMO to have developed a model that shows return on investment that is endorsed by the CFO.

“Attribution is one, but CMOs really have to consider what success looks like for their investment around marketing. And I think that’s changing as marketers move closer to revenue.”

“I think the outcome-based business model is, if we think on a scale. The more the company controls the outcome, the closer they can move to an outcome model. Google Adwords is a great example; you pay per click, but Google are in total control and set the agenda of the ad structure.”

“Attribution is still a really big challenge,” Sangster agreed, admitting that even with data there’s still some grey areas around what aspects of a marketing strategy works.

“Yes you can know your results, can you 100 per cent know which channels drove consumers to take a different action? Not always. We’re getting better and better but are we there yet? Not 100 per cent.”

The main three impediments outlined in the report that marketers feel are preventing them from doing their jobs are:

Budget:  (50 per cent) Budget was cited consistently around the region as the biggest or second biggest impediment. The failure of marketers to secure budget speaks to the wider issues of both seniority and an inability to describe the benefits and return on investment of digital marketing.

Capability and Education: (48 per cent) Marketers are grappling with the issue of finding the right skills and ensuring the capabilities of their existing teams are kept up-to-date.

Return on Investment: (37 per cent) Given their concerns over capabilities and skills and their knowledge and understanding of digital marketing technologies, it is little wonder that marketers struggle to mount a successful argument for further investment in digital marketing based on measures such as return on investment.

Cross said, “The research shows that significant impediments stand in the way of accelerating the roll out of digital marketing.  There is a lack of education about digital marketing capabilities which makes it hard for marketers to understand ROI.

“Under the circumstances it’s no wonder they have trouble getting buy in from other executives or getting their budgets approved. This has proved to be the biggest impediment of all around the region.

Customer advocacy will be critical and the CMO will need authority across much broader parts of the business to deliver the results.

The research results provided an insight into key vertical markets including:

Travel and Hospitality: Marketers in this sector are the most confident in their use of analytics. Over 90 per cent rate their ability to gain insights from analytics highly, however, say their biggest impediment in their use of digital marketing technology is a limited marketing budget.

Retail: Unlike other vertical markets where access to budget was considered the biggest impediment to digital marketing acceleration, marketers in retail cited a lack of understanding and education as the biggest impediment.

Financial Services: Marketers in this sector, perhaps counter intuitively, were among the least likely to have revenue targets and be accountable and measurable against those targets.

Professional Services: Budget was rated as the biggest impediment to accelerating digital marketing efforts.

As McKinsey & Company recently noted, in a paper called, ‘The Four Pillars of Distinctive Customer Journey, “… for every ten-percentage-point uptick in customer satisfaction, a company can increase revenues two per cent to three per cent.”

Latest News

Q&A With Cannes Chairman Terry Savage
  • Advertising
  • Media

Q&A With Cannes Chairman Terry Savage

If you mistakenly thought this was an interview with Kojak's Telly Savalas, as it turns out, it's even better than that.

Optus To Phase Out Virgin Mobile Brand
  • Marketing

Optus To Phase Out Virgin Mobile Brand

Didn't much fancy that Telstra story above? Well, perhaps B&T could tempt you with this tasty Optus tickler instead.

by B&T Magazine

B&T Magazine
AKQA R&D Teams Up With Google For Semi Permanent 2018
  • Media

AKQA R&D Teams Up With Google For Semi Permanent 2018

AKQA R&D in collaboration with Google has developed a process called Somesthetic Transfer. It uses machine learning to take both the style and texture of an artwork and apply it to another image to be 3D printed with a UV printer. The works will be displayed at Semi Permanent 2018 in Sydney from Thursday 24 […]

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid
  • Marketing
  • Media

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid

Design students from Torrens University’s Billy Blue College of Design have partnered with WPP AUNZ’s Health & Wellness division to decode clinical data on ‘Medicinal Marijuana in the Treatment of Epilepsy’. Their creative solutions will be presented at a Vivid Ideas Exchange titled ‘Design can save your life: how can creativity improve comprehension of health data?’ […]

Diversity Case Study Series: The Royals
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: The Royals

If you read one diversity case study on B&T today, make it this one. Not that there's any others to choose from, really.

by B&T Magazine

B&T Magazine
Cricket Australia Finds New Major Sponsor
  • Marketing

Cricket Australia Finds New Major Sponsor

B&T was going to insert a homage to Sherbert's classic "Howzat" here before realising it was naff and showed our age.

by B&T Magazine

B&T Magazine
PHD Wins HSBC Global Media Account
  • Media

PHD Wins HSBC Global Media Account

ICYMI, PHD has FTW the HSBC business IRL. It's not so much a LOL or NSFW, but a TL;DR. Ahh, forget the whole thing.

InMoment Accelerates APAC Expansion With Key Acquisition
  • Media

InMoment Accelerates APAC Expansion With Key Acquisition

Customer experience (CX) intelligence platform, InMoment, has expanded into Australia and New Zealand with the acquisition of customer experience agency, brandXP and appointment of Claire Fastier as its APAC business head.

Marketers Need To Focus On Voice Search Right Now
  • Opinion

Marketers Need To Focus On Voice Search Right Now

In this opinion piece, Performics Australia performance content account director Steve Robinson (pictured below) dives into the hazy relationship between marketers and voice-activated technology. From settling family disputes, (“Hey Google, are fossil fuels really made from dinosaur bones?”) to running a household, (“OK Google, add toothpaste to my shopping list”), voice-activated systems are becoming more […]

Opinion

by B&T Magazine

B&T Magazine
SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance
  • Advertising
  • Media

SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance

Video advertising and monetisation platform SpotX has announced the launch of an online resource library for the European Union’s General Data Protection Regulation (GDPR). The library can be found on the company’s website and is part of a wider educational initiative by SpotX – which is headquartered in the US and has an office in […]

Daylight Agency Opens Government Division, Hires Legal & Political Expert
  • Marketing

Daylight Agency Opens Government Division, Hires Legal & Political Expert

Integrated communications firm Daylight Agency has cemented its presence in the government and political arena with the appointment of industry veteran David Begg. A practising solicitor for over 28 years, Begg (pictured above) will head up the agency’s new government division. He has extensive experience working with large commercial clients on high-profile regulatory and legal […]

Frost Design Unveils New Look For John Holland
  • Marketing

Frost Design Unveils New Look For John Holland

Frost Design has shown off its comprehensive rebrand of iconic Australian infrastructure and property business John Holland, based around the brand idea of ‘Transforming Lives’. John Holland CEO Joe Barr said Frost was the only branding business who understood that the impact of the rebrand was just as important internally as it would be externally, […]

Women In Media Profile: Jill Johnston
  • Media

Women In Media Profile: Jill Johnston

We've got an absolute cracking Women in Media profile today. Not to say it's approved by the Chiropractors' Association.

by B&T Magazine

B&T Magazine
First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

One need only view our editor's hot pink leg warmers today to realise he's neither fad nor trend.

Opinion

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

And why is B&T running a photo of an engaged couple for this content engagement article? It was either that or a carrot.

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic
  • Campaigns
  • Marketing

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic

Sydney Water has pioneered a way to create records from marine plastics and, in doing so, encourage more people to join the movement of local clean-up groups rolling up their sleeves every weekend to clean plastics, litter and other pollutants from the city’s beaches and waterways. Plastics are collected by volunteers, then cut in pieces […]

Credit Card Compare Names Its First Head Of Marketing
  • Marketing

Credit Card Compare Names Its First Head Of Marketing

Aussie credit card comparison site Credit Card Compare has announced the appointment of Caroline Raffan as its inaugural head of marketing. Raffan (pictured above) has over 10 years’ experience in brand strategy, campaign development, digital marketing, events, public relations, content creation, market research, advertising, stakeholder management, social media marketing, and project management. She joins Credit […]

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine
An Apology To Salmat’s Karen Lewis
  • Media

An Apology To Salmat’s Karen Lewis

Whoops! B&T's stuffed up and this certainly comes with our sincerest apologies for any offence caused.

by B&T Magazine

B&T Magazine
Adland Execs To Be Locked Up
  • Media

Adland Execs To Be Locked Up

Continuing adland's fascination with prison when it comes to charitable causes comes this latest trip to the slammer.

Australian Directors’ Guild Announces Mentorship Winners
  • Campaigns
  • Media

Australian Directors’ Guild Announces Mentorship Winners

Now in its second year, the Australian Directors’ Guild’s (ADG) Commercial & Content Directing Mentorship program announced its next round of eight mentoree recipients. The winners were announced at a special event held last night at FINCH, Sydney and attended by members of the screen and advertising industries. Acclaimed director, and ADG President, Samantha Lang, […]