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Whose job is it, anyway?
Voice of the
customer
A report from the Economist Intelligence Unit
Sponsoredby
© The Economist Intelligence Unit Limited 20131
Voice of the customer Whose job is it, anyway?
About the report 2
Introduction 3
Conflicting priorities, expanding expectations 4
Finding the voice of the customer 5
A digital shift demands new skills 6
Time to add a chief customer officer? 8
The CMO as CCO 9
Conclusion 11
Appendix: survey results 12
Contents
1
2
3
4
5
6
© The Economist Intelligence Unit Limited 20132
Voice of the customer Whose job is it, anyway?
Aboutthe
report
Voice of the customer: Whose job is it, anyway? is an
Economist Intelligence Unit report, sponsored by
SAS. The Economist Intelligence Unit bears sole
responsibility for the content of this report. The
findings do not necessarily reflect the views of the
sponsor.
The paper draws on two main sources for its
research and findings:
l A global survey—conducted in July 2012—of
389 executives. The respondents are based in
Western Europe (40%), North America (27%),
Asia-Pacific (24%), Latin America (6%), Middle
East/Africa (2%) and Eastern Europe (1%); a
total of 42 countries are represented.
Respondents include marketing and non-
marketing professionals from 19 industries,
such as financial services (14%), consumer
goods (11%), IT/Technology (8%) and
manufacturing (8%).
l A series of in-depth interviews with senior
executives from major companies and other
experts listed below.
Curtis Bingham, founder and executive director,
Chief Customer Officer Council
Steve Cannon, CEO, Mercedes-Benz USA
Cammie Dunaway, US president and global CMO,
KidZania
Dan Marks, CMO, First Tennessee Bank
John McDonald, vice-president marketing,
Americas, British Airways
Michelle Peluso, global consumer chief
marketing and internet officer, Citigroup
We would like to thank all interviewees and survey
respondents for their time and insight.
The report was written by Rob O’Regan and
edited by Gilda Stahl.
© The Economist Intelligence Unit Limited 20133
Voice of the customer Whose job is it, anyway?
Customer-centricity is not a new concept, but it has
taken on increasing importance in today’s business
environment, marked by empowered consumers
who want to interact with a brand on their own
terms. For many organisations, the challenge lies
in finding innovative ways to capture the “voice of
the customer” and infuse customer insights across
all business functions, from the point of sale to the
call centre, in order to create business value.
The chief marketing officer (CMO) is well
positioned to serve as the champion of customer
insights and engagement at organisations looking
to become more customer-driven. Marketing has
access to a wealth of data about the behaviours,
activities and interests of customers and prospects
and, as a result, is often at the centre of the
customer experience.
Ironically, however, CMOs’ attempts to leverage
customer insights more strategically across their
organisation have been thwarted by the increasing
demands of their “day job.” As the CMO role has
expanded well beyond traditional advertising,
branding and PR, marketing’s mandate has in many
ways become less clear.
In Outside looking in: The CMO struggles to get in
sync with the C-suite—the first in a series of
Economist Intelligence Unit reports on the
evolution of the CMO’s role—we highlighted a
disconnect between CMOs and the rest of the C-
suite over marketing’s role. In this report, we will
examine how the CMO’s increasingly fragmented
responsibilities make it increasingly difficult to
take ownership of the “voice of the customer”
across the organisation.
Some believe the CMO remains in the best
position to embrace the role of customer
champion. Others advocate yet another C-suite
position—the chief customer officer (CCO)—to lead
the charge to customer-centricity. Regardless of
title, a void remains that many organisations need
to fill before they can truly call themselves
customer-centric.
Introduction
© The Economist Intelligence Unit Limited 20134
Voice of the customer Whose job is it, anyway?
Traditional marketing is obsolete, and many senior
leadership teams have yet to come to grips with
what the new model should look like. Our survey
shows differences between CMOs and the rest of
the C-suite over the priorities of the marketing
function, its contribution to the business and its
ability to measure return on marketing (ROMI)
investments. The C-suite priorities for the CMO—
increase revenue, find new customers and improve
the organisation’s reputation—are formidable. Yet
despite this accountability, the CMO’s role is
viewed as strategic in only 61% of organisations
and the CMO plays a leading role in formulating
marketing strategy in just 53%.
We also see just how broad the CMO’s role has
become. The CMO’s job description is as fluid as the
marketing landscape he or she navigates. The CMO
still oversees traditional marketing functions such
as advertising, brand marketing, product
marketing and communications. However, the
current top areas for marketing investments—
customer relationship management, brand
advertising, collaboration tools and customer
analytics—will morph significantly over the next
three years where the focus is primarily on
understanding and interacting with the customer.
This shift offers a clear indication of the rising
importance of the voice of the customer.
But the rise of digital marketing channels—
online, social and mobile—and a new customer
sovereignty, fuelled by increased access to
information about their choices, have added new
layers of complexity on top of these traditional
activities.
Conflicting priorities, expanding
expectations1
Q
Source: Economist Intelligence Unit survey, July 2012.
51
38
40
22
28
18
27
41
24
21
24
20
17
21
17
19
15
29
14
16
13
22
8
9
Now In three years
In what areas should marketing focus investments in order to contribute most to your business
both now and in three years?
(% respondents)
Customer relationship management (CRM)
Brand advertising
Collaboration tools
Customer analytics
Training employees
Direct marketing
Reputation management
Marketing automation tools
Social media
New hires
Mobile application development
Web optimisation tools
© The Economist Intelligence Unit Limited 20135
Voice of the customer Whose job is it, anyway?
Many companies find it challenging to restructure
their businesses around the customer, having been
organised traditionally around products or
geographies. Only six in ten survey respondents say
their company is a customer-centric business and
just over half (56%) believe their company has a
clear understanding of customers’ tastes and needs.
The C-suite’s high expectations of the CMO—to
meet the significant challenges of the new era of
marketing and increase revenue—leave the CMO
little time to focus on the customer, however. In
fact, just 19% of CMOs play a leading role in
connecting customer-facing functions—a key step
in the journey to customer-centricity. The CMO is
considered the voice of the customer at just 18% of
organisations, trailing the head of sales (31%).
Another 21% believe it is a shared responsibility
across multiple roles. A plurality, however, believe
the CMO should represent the “voice of the
customer.”
Finding the voice of the customer
2
Q
Source: Economist Intelligence Unit survey, July 2012.
1 Strongly
agree
2 3 4 5 Strongly
disagree
Our company is a customer-centric business
Our company has a clear understanding of our customers’ tastes and needs
Our organisation has the data, tools and process in place to react quickly to changes in customer behaviour or other customer dynamics
19 41 30 8 3
13 43 37 7 1
9 30 37 19 5
Indicate the extent to which you agree or disagree with the following statements.
Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree.
(% respondents)
Q
Source: Economist Intelligence Unit survey, July 2012.
Is voice of customer Should be voice of customer
Who is considered the “voice of the customer” at your organisation, and who do you believe
should take on that role?
(% respondents)
31
17
21
23
18
28
12
13
8
7
8
5
3
6
Head of sales
It’s a shared responsibility across multiple roles
CMO
Chief Customer Officer
Board member
Chief Executive Officer
Chief Strategy Officer
© The Economist Intelligence Unit Limited 20136
Voice of the customer Whose job is it, anyway?
The rise of web, social and mobile channels has
increased the complexity of customer
engagement—but these channels also may provide
CMOs with the keys to delivering on organisations’
evolving customer-centric mandate.
“There is a real imperative for companies to bring
the customer front and centre,” says Michelle
Peluso, global consumer chief marketing and
internet officer at Citigroup, a US multinational
financial services corporation. “Increasingly in the
digital world, the tools have evolved so you can
bring the customer perspective much closer to the
business.
“There is an outrageous proliferation of data,
and part of what we have to do as marketers is to
use data not to analyse the past, but to be more
predictive about what people are interested in
doing next,” Ms Peluso says. There is a lot of power
in that.”
There is also plenty of complexity, driven by
shifting consumer preferences that are forcing
changes in the marketing mix. E-mail and the
corporate website, for example, have become vital
channels for customer engagement in a relatively
short period of time. But in the next three years,
social and mobile will eclipse those channels—and
all others other than face-to-face interactions—as
the most effective for customer engagement.
Few organisations, however, are leveraging
emerging social and mobile media channels
effectively to reach customers.
How can marketers get smarter about these
emerging channels? An increasing emphasis on
digital marketing requires a broader combination of
quantitative and qualitative skills across the entire
marketing organisation—from the CMO on down.
Customer insight, data-driven analytical
capabilities and social media expertise are among
the CMO skills that respondents say are becoming
increasingly important. These and other technical
A digital shift demands new skills
3
Q
Source: Economist Intelligence Unit survey, July 2012.
59
50
46
27
39
31
25
12
24
35
21
14
19
47
18
34
9
5
Face to face
Email
Corporate website
Call centre
Mobile devices
Traditional media (print, TV, radio)
Social media
Online media (e-commerce website or 3rd-party websites)
Direct mail
What are your company’s most effective channels for customer engagement
both now and in three years?
(% respondents) Now In three years
❛❛
There is an
outrageous
proliferation of
data; part of what
we do is use data
not to analyse the
past, but to be
more predictive
about what people
are interested in
doing next.
❜❜
Michelle Peluso, global
consumer chief marketing and
internet officer, Citigroup
© The Economist Intelligence Unit Limited 20137
Voice of the customer Whose job is it, anyway?
skills are critical because they help CMOs justify
marketing investment based on facts, not
assumption, enabling them to build credibility
throughout the organisation.
“Data give you the ability to be relevant,” says
John McDonald, vice-president of marketing,
Americas, at British Airways. “Our approach is
making sure we are leveraging the ability to be
more relevant by using data to more effectively
communicate across the customer journey.”
Because digital channels are playing an
increasingly important role in this journey, some
CMOs are finding the need to ramp up their own
digital and data-driven expertise. “Digital is an
important CMO skill, and it is important to recognise
that just because you have managed [digital]
doesn’t mean you know it,” says Ms Peluso, who
oversees all of Citi’s digital channels, including
mobile and social media. “Spending the time and
energy to understand it gives you credibility with
your teams, your business colleagues and your
clients.”
Q
Source: Economist Intelligence Unit survey, July 2012.
1 Strongly
agree
2 3 4 5 Strongly
disagree
We are using social media effectively to engage customers with our brand
We are using mobile media to effectively reach customers wherever they wish to engage with our brand
7 25 39 19 10
9 25 33 21 12
Indicate the extent to which you agree or disagree with the following statements.
Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree.
(% respondents)
❛❛
Our approach is
making sure we
are leveraging the
ability to be more
relevant by using
data to more
effectively
communicate
across the
customer journey.
❜❜
John McDonald,
vice-president of marketing,
British Airways
© The Economist Intelligence Unit Limited 20138
Voice of the customer Whose job is it, anyway?
Time to add a chief customer officer?
4
The challenge for CMOs is that aspiring to be the
customer champion across the entire organisation
may simply be too much to take on, given the
already broad scope of their existing
responsibilities. As an alternative, some
organisations are establishing a relatively new C-
suite title, the chief customer officer (CCO), to act
as customer champion. About 500 CCOs exist
globally, either in title or responsibility, according
to the Chief Customer Officer Council, a peer-led
advisory group for CCOs (see sidebar).
“At every strategic decision point, somebody
needs to be asking, ‘what is the impact of this
decision on the customer?”’ says Curtis Bingham,
founder and executive director of the CCO Council.
“In the absence of other people taking up that
banner, the CCO can be the best choice because
they are uniquely accountable for bringing the
customer perspective into the company.”
CMOs themselves seem to be warming up to the
idea of a CCO to complement their efforts. Nearly
one-quarter of CMO respondents in our survey said
a CCO should be the voice of the customer. Still,
more than one in four CMOs believe they should
serve in the role as the voice of the customer.
In our interviews, executives maintain that the
CMO is best equipped to serve as the voice of the
customer and lead customer-driven strategic
initiatives, because marketing is already at the
centre of the customer experience.
“As a CMO you are sitting on a wealth of data,
which puts you closer to the customer than anyone
else in the organisation,” says Ms Peluso. “That is a
really profound privilege and responsibility. The
more you think about that and leverage that and
figure out how companies can make better
decisions because of the data they have access to,
the broader your power can be.”
Other executives agree that the CMO is uniquely
positioned to drive a customer-led strategy. “If the
CMO is not at the forefront of the customer
experience, where else will you find it inside your
organisation?” asks Steve Cannon, CEO of
Mercedes-Benz USA. “The CMO role brings together
the customer, the brand and the product. There is
no more essential intersection in any business.”
1. The CMO reports to the CCO.
Justification: Marketing is just one of many functions touching the customer.
2. The CCO reports to the CMO.
Justification: Marketing has the budget and the data to support broad-based
customer initiatives.
3. The CMO and CCO both report to the CEO.
Justification: The CEO provides the mandate for change, and the CCO and CMO
work in tandem to deliver for customers at all stages of the customer lifecycle.
Source: Chief Customer Officer Council
CMO and CCO: three organisational models
❛❛
The CMO role
brings together
the customer, the
brand and the
product. There is
no more essential
intersection in
any business.
❜❜
Steve Cannon, CEO,
Mercedes-Benz USA
© The Economist Intelligence Unit Limited 20139
Voice of the customer Whose job is it, anyway?
The CMO as CCO
5
CMOs who aspire to serve as the de facto CCO must
find a way to use customer insights to create an
exceptional customer experience that spans all
physical and digital channels. At First Tennessee
Bank, for example, a customer-experience
monitoring programme lies at the crux of the
marketing team’s efforts to improve cross-channel
customer interactions. The programme uses a
variety of tools, from surveys to social media
monitoring, to measure the customer experience.
“Everything flows into customer-experience
tracking,” says CMO Dan Marks. “After a teller
transaction or call centre transaction, we ask
macro-level questions around loyalty and
recommendation, but we also ask about brand-
specific attributes. It yields a nice feedback loop.”
Understanding what Mr Marks calls “the full 360
degrees” of the customer experience has led to
The “chief customer officer” title has been around
since 1999. It is becoming more prevalent,
however, as organisations across all industries look
to take a more customer-centric approach to their
business.
“A CCO is a good way to reorient a business
around the people who really pay the bills: your
customers,” says Curtis Bingham, managing
director of the Chief Customer Officer Council, a
peer-advisory network for CCOs. Mr Bingham says
two main criteria define a CCO:
1. The CCO is the ultimate authority on customers
throughout the organisation.
2. The CCO drives customer strategy at the highest
levels of the organisation.
CCOs have a variety of backgrounds, from
IT to marketing, but Mr Bingham says those
with operations experience are most common.
“Executives who come from operations often
have played a role in so many different divisions
that they can tell where to go to gain the
resources to resolve an issue,” he says. Because
they understand many aspects of the business,
these CCOs often possess another critical asset:
credibility.
Asking the CMO to assume CCO responsibilities
can be a stretch, for one main reason: it is a lot to
expect of an executive who already has a full plate
of responsibilities. “A CMO can certainly take on
the role of the CCO,” says Mr Bingham. “However,
I don’t know that they should aspire to be one as
much as they should be committed to working
alongside a top-notch CCO.” Working in tandem,
the CCO and CMO can deliver insights that improve
performance at all stages of the customer lifecycle.
“We are seeing more and more of this, and I believe
it is the right way to go,” says Mr Bingham.
The rise of the CCO
© The Economist Intelligence Unit Limited 201310
Voice of the customer Whose job is it, anyway?
smarter investments in marketing programmes and
the discovery of an important brand advocate: the
bank’s own customers. In 2011 First Tennessee
Bank launched a campaign featuring customer
testimonials—including videos featured on the
bank’s YouTube channel—that reinforced the
company’s brand promise.
“We realised that in an era when many people
are sceptical of banks, our biggest advocates were
our customers,” says Mr Marks. “So it was
important to amplify their voice, in a way that was
authentic and powerful.”
Improving the linkages among different
functions enables companies to deliver a more
consistent experience across all customer touch
points, including face-to-face interactions. At
KidZania, a Mexico-based business that has
launched career-oriented “edutainment” theme
parks for children in nine countries, marketing and
IT worked hand in hand to launch a loyalty
programme that attracted 100,000 members in its
first year. The programme enables marketers to
collect information about member activities at
KidZania parks, and then use the data to deliver
personalised communications at the physical
locations or via e-mail or mobile messaging. Data
collection is centralised to ensure privacy.
“It is important for kids and their parents to feel
a connection to KidZania wherever they go,” says
Cammie Dunaway, US president and global CMO of
KidZania. “It is an exciting and powerful
programme which we have been able to build from
the ground up.”
At British Airways, marketing has played a key
role in the launch of Know Me, a cross-functional,
companywide effort to improve the customer
experience through deep insights about existing
customers’ preferences and behaviours. “Marketing
works very closely with the customer experience
team, IT, the cabin crews and other groups to
monitor the feedback and listen to what customers
are saying,” says Mr McDonald. “But it is an
enterprise-wide effort.”
While the CMO can play a leading role in driving
customer insights throughout an organisation, it is
clear that the “voice of the customer” extends well
beyond a single person or business function. “Citi
has over 200,000 people,” says Ms Peluso. “If we
are going to be customer centric, it can’t be one
person’s job. For a company to make a
transformation into having a much more
interactive relationship with customers, it has to
be everybody’s job.”
This mandate also extends to every member of
the C-suite, whether they’re called a CMO, a CCO or
something else. “It doesn’t matter what people’s
titles are,” says Mr Bingham. “What matters is
whether they are driving customer-centricity
throughout their organisation.”
© The Economist Intelligence Unit Limited 201311
Voice of the customer Whose job is it, anyway?
Conclusion
5
As Citigroup, Mercedes-Benz, British Airways and
others have demonstrated, marketing has an
opportunity to lead any firm’s transformation into
a more customer-centric organisation. CMOs,
whether assuming the role of “chief customer
officer” or working in tandem with one, can play a
lead role in analysing and disseminating deep
customer insights that drive business performance.
Here’s how:
Change the process. Organisations have
become much more effective at gleaning
insights by monitoring and analysing activities
within individual channels. The next—and far
more valuable—step is integrating information
gathered from all digital and physical channels.
Twenty-one percent of respondents say their
ability to track customer engagement across
different marketing channels is “lagging”.
Taking steps to better understand “the full 360
degrees” of the customer experience can help
CMOs offer predictive guidance about customers’
interests and activities.
Leveraging this guidance will require new
processes and workflows that provide the
workforce with the information they need to
make smarter decisions about all aspects of the
business.
Change the mindset. CMOs need to make a real
commitment to infusing a customer-focused
mindset across the entire organisation. This
commitment begins with proper training and
skills development for the marketing team, with
an emphasis on data-driven analytical
capabilities.
CMOs cannot simply delegate this expertise,
however. Although it’s unreasonable to expect
CMOs to master all of marketing’s diverse
domains, they do need to possess hands-on
knowledge of emerging trends, tools and
platforms for engaging and understanding
customers. Demonstrating an aptitude for these
types of emerging skills will build credibility and
will trickle down through the rest of the
organisation.
A true customer focus requires everyone in the
organisation to play the role of customer advocate.
CMOs who can translate customer insights into real
value for each part of the business can get
everyone working towards the same goal—and
secure their own standing as a strategic player in
the C-suite.
© The Economist Intelligence Unit Limited 201312
Voice of the customer Whose job is it, anyway?
Appendix:
survey
results
Percentages may not add to 100% owing to rounding or the ability of respondents to choose
multiple responses.
Chief Executive Officer
Chief Operations Officer
Chief Sales Officer
Chief Strategy Officer
Chief Information Officer
Chief Financial Officer
Other
To whom does your CMO or most-senior marketing executive report?
(% respondents)
64
18
5
3
3
0
6
1 Highly
strategic
2 3 4 5 Not
strategic
The CMO’s role
How strategic a role does the CMO play in your organisation?
Rate on a scale of 1 to 5 where 1 = Highly strategic and 5 = Not at all strategic.
(% respondents)
23 39 29 8 2
© The Economist Intelligence Unit Limited 201313
Voice of the customer Whose job is it, anyway?
A leading role A key player Consulted No role Don’t know
Formulating business strategy
Formulating marketing strategy
Formulating pricing strategy
Developing new products/services
Developing customer engagement strategy
Shaping customer service
Selecting new markets to enter
Deciding on new IT investments
Deciding on new marketing investments
Connecting customer-facing functions
What role does the CMO (or the most senior marketing executive) play in your organisation with regard to the following activities?
Select the most appropriate response for each activity.
(% respondents)
18 57 21 3 1
56 27 15 2 1
23 39 25 11 1
19 44 28 8 1
24 46 24 5 1
17 42 31 10 1
18 39 29 12 2
6 20 40 31 2
36 40 19 4 1
19 44 27 8 2
Brand marketing
Digital marketing (online, mobile, social)
Product marketing
Channel marketing
Customer service
Market research
Product development
Public relations
E-commerce
Website development
Sales
Merchandising
Retail
Pricing strategy
Over which areas do you expect the CMO’s influence to increase in the next 3 years?
Select all that apply.
(% respondents)
50
48
45
41
40
34
33
32
31
30
26
15
12
23
© The Economist Intelligence Unit Limited 201314
Voice of the customer Whose job is it, anyway?
1 A significant
obstacle
2 3 4 5 Not an
obstacle
Lack of C-level support for the CMO
Current marketing executives lack the relevant skills
Under-investment in supporting systems and technology
Under-investment in talent acquisition, training, and retention
Disconnect over what marketing should be delivering
The C-suite conception of marketing is not as a strategic function
Please indicate the extent to which the following are obstacles to the CMO playing a more strategic role in your organisation.
Rate on a scale of 1 to 5 where 1 = A significant obstacle and 5 = Not an obstacle.
(% respondents)
8 22 33 21 16
8 32 32 19 9
10 27 39 18 7
11 33 38 13 6
9 30 35 19 7
10 24 36 19 11
Customer insight
Communications expertise
Creativity
Industry expertise
Team building
Data-driven analytical capability
General business acumen
Technical expertise
Line-of-business knowledge
Advertising/agency experience
Social media expertise
Pattern recognition
Visual/design aesthetics
What skills are most important for CMOs to have?
Select the top three.
(% respondents)
42
41
31
31
29
27
25
21
19
13
7
2
1
© The Economist Intelligence Unit Limited 201315
Voice of the customer Whose job is it, anyway?
1 Significantly
increasing
2 3 4 5 Significantly
decreasing
Advertising/agency experience
Technical expertise
Team building
Communications expertise
Creativity
Data-driven analytical capability
Customer insight
Industry expertise
Line-of-business knowledge
General business acumen
Pattern recognition
Social media expertise
Visual/design aesthetics
Which skills needed by the CMO are gaining or losing importance?
Rate each skill on a scale of 1 to 5, where 1 = Significantly increasing and 5 = Significantly decreasing.
(% respondents)
6 33 33 21 7
11 29 41 17 3
22 41 30 6 2
24 45 27 4
17 40 33 9 1
25 35 32 7 1
28 36 29 5 1
14 38 37 9 2
12 36 42 9 1
18 36 38 7 2
10 31 49 8 2
16 44 31 9 1
7 28 46 17 2
1 Excellent 2 3 4 5 Poor Don’t know
Establishing a clear business case for new marketing investments
Delivering customer insights that drive business value
Delivering measurable ROI for marketing expenditures
Collaborating across functions to improve business performance
Building relationships with customers
Differentiating the value of your brand from your competitors
How effective is your organisation’s CMO in the following areas?
Rate on a scale of 1 to 5 where 1 = Excellent and 5 = Poor.
(% respondents)
10 34 37 13 4 2
11 38 32 14 3 2
11 28 36 16 6 3
11 37 34 13 4 2
16 35 31 13 2 3
19 35 32 11 2 1
1 Strongly
agree
2 3 4 5 Strongly
disagree
Our company is a customer-centric business
Our company has a clear understanding of our customers’ tastes and needs
Our organisation has the data, tools and process in place to react quickly to changes in customer behaviour or other customer dynamics
We are using social media effectively to engage customers with our brand
We are using mobile media to effectively reach customers wherever they wish to engage with our brand
We are able to track the value of marketing investments across functions
We are able to track the value of marketing investments across channels
Indicate the extent to which you agree or disagree with the following statements.
Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree.
(% respondents)
19 41 30 8 3
13 43 37 7 1
9 30 37 19 5
7 25 39 19 10
9 25 33 21 12
6 30 38 21 5
9 30 35 20 6
© The Economist Intelligence Unit Limited 201316
Voice of the customer Whose job is it, anyway?
Sales
Customer service
Product development
Merchandising
Research and development
Operations
Finance
Human resources
IT
Don’t know
In your opinion, to which areas of your business does your marketing function deliver significant business value?
Select all that apply.
(% respondents)
59
51
49
31
19
18
17
14
8
3
Lack of a strategic role for marketing in the organisation
Hiring and retaining skilled marketing talent
Inability to turn data into actionable insights
Limited ability to demonstrate ROI/accountability of marketing investments
Disagreement about the role of marketing
Difficulty in mining “big data” for customer insights
Lack of senior management support for marketing investments
Misalignment between marketing investments and business objectives
Lack of transparency across customer touch points
Sharing insights quickly across the organisation
Other
What are the primary internal barriers that impede marketing from delivering more value to your organisation?
Select up to three.
(% respondents)
38
36
33
32
28
25
21
16
15
13
1
Driving revenue growth
Finding new customers
Improving your organisation’s reputation
Creating new products and services
Entering new markets
Retaining existing customers
What should the marketing function’s top priority be at your organisation?
(% respondents)
30
17
16
13
13
10
© The Economist Intelligence Unit Limited 201317
Voice of the customer Whose job is it, anyway?
Improving your organisation’s reputation
Retaining existing customers
Creating new products and services
Driving revenue growth
Finding new customers
Entering new markets
To which area has marketing contributed most in the past year?
(% respondents)
22
22
17
15
13
13
Head of sales
It’s a shared responsibility across multiple roles
CMO
Chief Customer Officer
Board member
Chief Executive Officer
Chief Strategy Officer
Who is considered the “voice of the customer” at your organisation?
(% respondents)
31
21
18
12
8
8
3
CMO
It’s a shared responsibility across multiple roles
Head of sales
Chief Customer Officer
Board member
Chief Strategy Officer
Chief Executive Officer
Who in your opinion should be the voice of the customer?
(% respondents)
28
23
17
13
7
6
5
© The Economist Intelligence Unit Limited 201318
Voice of the customer Whose job is it, anyway?
Face to face
Email
Corporate website
Call centre
Mobile devices
Traditional media (print, TV, radio)
Social media
Online media (e-commerce website or 3rd-party websites)
Direct mail
What are your company’s most effective channels for customer engagement?
(% respondents)
59
46
39
25
24
21
19
18
9
Face to face
Social media
Mobile devices
Online media (e-commerce website or 3rd-party websites)
Corporate website
Email
Traditional media (print, TV, radio)
Call centre
Direct mail
What do you expect the most effective channels will be 3 years from now?
(% respondents)
50
47
35
34
31
27
14
12
5
Superior: Our customer data is integrated across channels and can be shared and mined effectively for insights
Average: We are making good progress integrating different channels and data sources to gain a more comprehensive view of the customer
Lagging: Our customer channels are siloed, giving us little transparency across different touch points
How would you describe your company’s ability to track customer engagement across different marketing channels?
(% respondents)
18
61
21
© The Economist Intelligence Unit Limited 201319
Voice of the customer Whose job is it, anyway?
Customer relationship management (CRM)
Brand advertising
Collaboration tools
Customer analytics
Training employees
Direct marketing
Reputation management
Marketing automation tools
Social media
New hires
Mobile application development
Web optimisation tools
In what areas should marketing focus investments in order to contribute most to your business now?
(% respondents)
51
40
28
27
24
24
17
17
15
14
13
8
Customer analytics
Customer relationship management (CRM)
Social media
Mobile application development
Brand advertising
Reputation management
Training employees
Direct marketing
Marketing automation tools
Collaboration tools
New hires
Web optimisation tools
In what areas should marketing focus investments in order to contribute most to your business in 3 years?
(% respondents)
41
38
29
22
22
21
21
20
19
18
16
9
Voice of the customer Whose job is it, anyway?
© The Economist Intelligence Unit Limited 201320
Customer satisfaction
Sales leads
Customer engagement
Revenue from expenditures
Brand awareness
Profit from expenditures
Sales conversion
Business analytics
Customer retention
Referrals
Customer lifetime value
Other
Which performance metrics does your organisation employ to track Return On Marketing Investment (ROMI)?
Select all that apply.
(% respondents)
50
40
34
33
33
31
31
28
23
21
15
2
1 Very
effective
2 3 4 5 Very
ineffective
Don’t know
Aligning marketing strategy with overall business objectives
Finding new customers
Increasing the cost effectiveness of marketing investments
Proactively identifying new ways that marketing can add business value
Connecting customer feedback to new product/services creation
Retaining existing customers
Engaging customers across multiple platforms
Tracking customer value across multiple platforms
Linking customer engagement across business functions
How effective is your company’s marketing function in each of the following areas?
Rate on a scale of 1 to 5 where 1 = Very effective and 5 = Very ineffective.
(% respondents)
10 36 37 12 2 2
7 33 40 14 3 2
8 26 42 17 4 3
8 31 36 19 4 2
7 31 39 17 4 2
12 34 36 12 4 2
6 32 37 18 4 3
5 23 35 26 8 3
5 27 41 21 4 2
1 Strongly
agree
2 3 4 5 Strongly
disagree
Don’t know
Our company can clearly demonstrate marketing’s contribution to top-line revenue growth
Marketing can show direct linkages between our customer engagement and our financial performance
We have fully integrated digital media into our marketing mix and have built proven models for digital media measurement
We have established metrics/dashboards for tracking and measuring customer engagement
Please indicate the extent to which you agree or disagree with the following statements.
Rate on a scale of 1 to 5, where 1 = Strongly agree and 5 = Strongly disagree.
(% respondents)
7 29 37 19 6 2
9 31 35 16 7 2
6 19 35 28 11 1
8 28 35 18 9 2
Voice of the customer Whose job is it, anyway?
© The Economist Intelligence Unit Limited 2013 21
1 Significantly
ahead
2 3 4 5 Significantly
behind
Don’t know
Performance of marketing investments
Overall financial performance
How would you rate your company’s performance in the last year compared with that of its peers?
Rate on a scale of 1 to 5 where 1 = Significantly ahead and 5 = Significantly behind.
(% respondents)
7 34 40 12 3 4
16 32 42 8 1 1
30
23
26
5
16
$100m to $499m
$500m to $999bn
$1bn to $4.9bn
$5bn to $9.9bn
$10bn or more
What are your organisation’s global annual revenues
in US dollars?
(% respondents)
Western Europe
North America
Asia-Pacific
Latin America
Middle East and Africa
Eastern Europe
In which region are you personally located?
(% respondents)
40
27
24
6
2
1
United States of America
Australia
Germany
Netherlands, Denmark
Canada, United Kingdom
India
Mexico, Hong Kong
Brazil, Singapore, Thailand, Argentina, Colombia, Indonesia,
Switzerland, China, France, Italy, Malaysia, South Africa, Spain,
Turkey, United Arab Emirates
In which country are you personally located?
(% respondents)
19
11
10
9
8
7
2
1
Board member
CEO/President/Managing director
CFO/Treasurer/Comptroller
CIO/Technology director
CMO/Head of marketing
Other C-level executive
SVP/VP/Director
Which of the following best describes your title?
(% respondents)
4
25
4
2
28
9
28
Marketing
Strategy and business development
General management
Sales
Finance
Operations and production
Supply-chain management
Risk
IT
R&D
Customer service
Information and research
Procurement
Legal
Human resources
Other
What are your main functional roles?
Select up to three.
(% respondents)
59
34
32
18
12
12
10
8
7
7
6
5
5
3
2
1
© The Economist Intelligence Unit Limited 201322
Voice of the customer Whose job is it, anyway?
Financial services
Consumer goods
IT and technology
Manufacturing
Professional services
Healthcare, pharmaceuticals and biotechnology
Retail/Wholesale
Energy and natural resources
Automotive
Construction and real estate
Chemicals
Telecoms
Agriculture and agribusiness
Education
Entertainment, media and publishing
Transportation, travel and tourism
Aerospace and defence
Government/Public sector
Logistics and distribution
What is your primary industry?
(% respondents)
14
11
8
8
8
7
7
7
5
5
4
4
3
2
2
2
1
1
1
© The Economist Intelligence Unit Limited 201323
Voice of the customer Whose job is it, anyway?
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 white paper or any of the
information, opinions or conclusions set out in the white paper.
Cover:Shutterstock
London
20 Cabot Square
London
E14 4QW
United Kingdom
Tel: (44.20) 7576 8000
Fax: (44.20) 7576 8476
E-mail: london@eiu.com
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5th Floor
New York, NY 10017
United States
Tel: (1.212) 554 0600
Fax: (1.212) 586 0248
E-mail: newyork@eiu.com
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Hong Kong
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SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA
and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies.
106392_S107820.0413

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The economist intelligence unit: Voice of the customer, whose job is it, anyway

  • 1. Whose job is it, anyway? Voice of the customer A report from the Economist Intelligence Unit Sponsoredby
  • 2. © The Economist Intelligence Unit Limited 20131 Voice of the customer Whose job is it, anyway? About the report 2 Introduction 3 Conflicting priorities, expanding expectations 4 Finding the voice of the customer 5 A digital shift demands new skills 6 Time to add a chief customer officer? 8 The CMO as CCO 9 Conclusion 11 Appendix: survey results 12 Contents 1 2 3 4 5 6
  • 3. © The Economist Intelligence Unit Limited 20132 Voice of the customer Whose job is it, anyway? Aboutthe report Voice of the customer: Whose job is it, anyway? is an Economist Intelligence Unit report, sponsored by SAS. The Economist Intelligence Unit bears sole responsibility for the content of this report. The findings do not necessarily reflect the views of the sponsor. The paper draws on two main sources for its research and findings: l A global survey—conducted in July 2012—of 389 executives. The respondents are based in Western Europe (40%), North America (27%), Asia-Pacific (24%), Latin America (6%), Middle East/Africa (2%) and Eastern Europe (1%); a total of 42 countries are represented. Respondents include marketing and non- marketing professionals from 19 industries, such as financial services (14%), consumer goods (11%), IT/Technology (8%) and manufacturing (8%). l A series of in-depth interviews with senior executives from major companies and other experts listed below. Curtis Bingham, founder and executive director, Chief Customer Officer Council Steve Cannon, CEO, Mercedes-Benz USA Cammie Dunaway, US president and global CMO, KidZania Dan Marks, CMO, First Tennessee Bank John McDonald, vice-president marketing, Americas, British Airways Michelle Peluso, global consumer chief marketing and internet officer, Citigroup We would like to thank all interviewees and survey respondents for their time and insight. The report was written by Rob O’Regan and edited by Gilda Stahl.
  • 4. © The Economist Intelligence Unit Limited 20133 Voice of the customer Whose job is it, anyway? Customer-centricity is not a new concept, but it has taken on increasing importance in today’s business environment, marked by empowered consumers who want to interact with a brand on their own terms. For many organisations, the challenge lies in finding innovative ways to capture the “voice of the customer” and infuse customer insights across all business functions, from the point of sale to the call centre, in order to create business value. The chief marketing officer (CMO) is well positioned to serve as the champion of customer insights and engagement at organisations looking to become more customer-driven. Marketing has access to a wealth of data about the behaviours, activities and interests of customers and prospects and, as a result, is often at the centre of the customer experience. Ironically, however, CMOs’ attempts to leverage customer insights more strategically across their organisation have been thwarted by the increasing demands of their “day job.” As the CMO role has expanded well beyond traditional advertising, branding and PR, marketing’s mandate has in many ways become less clear. In Outside looking in: The CMO struggles to get in sync with the C-suite—the first in a series of Economist Intelligence Unit reports on the evolution of the CMO’s role—we highlighted a disconnect between CMOs and the rest of the C- suite over marketing’s role. In this report, we will examine how the CMO’s increasingly fragmented responsibilities make it increasingly difficult to take ownership of the “voice of the customer” across the organisation. Some believe the CMO remains in the best position to embrace the role of customer champion. Others advocate yet another C-suite position—the chief customer officer (CCO)—to lead the charge to customer-centricity. Regardless of title, a void remains that many organisations need to fill before they can truly call themselves customer-centric. Introduction
  • 5. © The Economist Intelligence Unit Limited 20134 Voice of the customer Whose job is it, anyway? Traditional marketing is obsolete, and many senior leadership teams have yet to come to grips with what the new model should look like. Our survey shows differences between CMOs and the rest of the C-suite over the priorities of the marketing function, its contribution to the business and its ability to measure return on marketing (ROMI) investments. The C-suite priorities for the CMO— increase revenue, find new customers and improve the organisation’s reputation—are formidable. Yet despite this accountability, the CMO’s role is viewed as strategic in only 61% of organisations and the CMO plays a leading role in formulating marketing strategy in just 53%. We also see just how broad the CMO’s role has become. The CMO’s job description is as fluid as the marketing landscape he or she navigates. The CMO still oversees traditional marketing functions such as advertising, brand marketing, product marketing and communications. However, the current top areas for marketing investments— customer relationship management, brand advertising, collaboration tools and customer analytics—will morph significantly over the next three years where the focus is primarily on understanding and interacting with the customer. This shift offers a clear indication of the rising importance of the voice of the customer. But the rise of digital marketing channels— online, social and mobile—and a new customer sovereignty, fuelled by increased access to information about their choices, have added new layers of complexity on top of these traditional activities. Conflicting priorities, expanding expectations1 Q Source: Economist Intelligence Unit survey, July 2012. 51 38 40 22 28 18 27 41 24 21 24 20 17 21 17 19 15 29 14 16 13 22 8 9 Now In three years In what areas should marketing focus investments in order to contribute most to your business both now and in three years? (% respondents) Customer relationship management (CRM) Brand advertising Collaboration tools Customer analytics Training employees Direct marketing Reputation management Marketing automation tools Social media New hires Mobile application development Web optimisation tools
  • 6. © The Economist Intelligence Unit Limited 20135 Voice of the customer Whose job is it, anyway? Many companies find it challenging to restructure their businesses around the customer, having been organised traditionally around products or geographies. Only six in ten survey respondents say their company is a customer-centric business and just over half (56%) believe their company has a clear understanding of customers’ tastes and needs. The C-suite’s high expectations of the CMO—to meet the significant challenges of the new era of marketing and increase revenue—leave the CMO little time to focus on the customer, however. In fact, just 19% of CMOs play a leading role in connecting customer-facing functions—a key step in the journey to customer-centricity. The CMO is considered the voice of the customer at just 18% of organisations, trailing the head of sales (31%). Another 21% believe it is a shared responsibility across multiple roles. A plurality, however, believe the CMO should represent the “voice of the customer.” Finding the voice of the customer 2 Q Source: Economist Intelligence Unit survey, July 2012. 1 Strongly agree 2 3 4 5 Strongly disagree Our company is a customer-centric business Our company has a clear understanding of our customers’ tastes and needs Our organisation has the data, tools and process in place to react quickly to changes in customer behaviour or other customer dynamics 19 41 30 8 3 13 43 37 7 1 9 30 37 19 5 Indicate the extent to which you agree or disagree with the following statements. Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree. (% respondents) Q Source: Economist Intelligence Unit survey, July 2012. Is voice of customer Should be voice of customer Who is considered the “voice of the customer” at your organisation, and who do you believe should take on that role? (% respondents) 31 17 21 23 18 28 12 13 8 7 8 5 3 6 Head of sales It’s a shared responsibility across multiple roles CMO Chief Customer Officer Board member Chief Executive Officer Chief Strategy Officer
  • 7. © The Economist Intelligence Unit Limited 20136 Voice of the customer Whose job is it, anyway? The rise of web, social and mobile channels has increased the complexity of customer engagement—but these channels also may provide CMOs with the keys to delivering on organisations’ evolving customer-centric mandate. “There is a real imperative for companies to bring the customer front and centre,” says Michelle Peluso, global consumer chief marketing and internet officer at Citigroup, a US multinational financial services corporation. “Increasingly in the digital world, the tools have evolved so you can bring the customer perspective much closer to the business. “There is an outrageous proliferation of data, and part of what we have to do as marketers is to use data not to analyse the past, but to be more predictive about what people are interested in doing next,” Ms Peluso says. There is a lot of power in that.” There is also plenty of complexity, driven by shifting consumer preferences that are forcing changes in the marketing mix. E-mail and the corporate website, for example, have become vital channels for customer engagement in a relatively short period of time. But in the next three years, social and mobile will eclipse those channels—and all others other than face-to-face interactions—as the most effective for customer engagement. Few organisations, however, are leveraging emerging social and mobile media channels effectively to reach customers. How can marketers get smarter about these emerging channels? An increasing emphasis on digital marketing requires a broader combination of quantitative and qualitative skills across the entire marketing organisation—from the CMO on down. Customer insight, data-driven analytical capabilities and social media expertise are among the CMO skills that respondents say are becoming increasingly important. These and other technical A digital shift demands new skills 3 Q Source: Economist Intelligence Unit survey, July 2012. 59 50 46 27 39 31 25 12 24 35 21 14 19 47 18 34 9 5 Face to face Email Corporate website Call centre Mobile devices Traditional media (print, TV, radio) Social media Online media (e-commerce website or 3rd-party websites) Direct mail What are your company’s most effective channels for customer engagement both now and in three years? (% respondents) Now In three years ❛❛ There is an outrageous proliferation of data; part of what we do is use data not to analyse the past, but to be more predictive about what people are interested in doing next. ❜❜ Michelle Peluso, global consumer chief marketing and internet officer, Citigroup
  • 8. © The Economist Intelligence Unit Limited 20137 Voice of the customer Whose job is it, anyway? skills are critical because they help CMOs justify marketing investment based on facts, not assumption, enabling them to build credibility throughout the organisation. “Data give you the ability to be relevant,” says John McDonald, vice-president of marketing, Americas, at British Airways. “Our approach is making sure we are leveraging the ability to be more relevant by using data to more effectively communicate across the customer journey.” Because digital channels are playing an increasingly important role in this journey, some CMOs are finding the need to ramp up their own digital and data-driven expertise. “Digital is an important CMO skill, and it is important to recognise that just because you have managed [digital] doesn’t mean you know it,” says Ms Peluso, who oversees all of Citi’s digital channels, including mobile and social media. “Spending the time and energy to understand it gives you credibility with your teams, your business colleagues and your clients.” Q Source: Economist Intelligence Unit survey, July 2012. 1 Strongly agree 2 3 4 5 Strongly disagree We are using social media effectively to engage customers with our brand We are using mobile media to effectively reach customers wherever they wish to engage with our brand 7 25 39 19 10 9 25 33 21 12 Indicate the extent to which you agree or disagree with the following statements. Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree. (% respondents) ❛❛ Our approach is making sure we are leveraging the ability to be more relevant by using data to more effectively communicate across the customer journey. ❜❜ John McDonald, vice-president of marketing, British Airways
  • 9. © The Economist Intelligence Unit Limited 20138 Voice of the customer Whose job is it, anyway? Time to add a chief customer officer? 4 The challenge for CMOs is that aspiring to be the customer champion across the entire organisation may simply be too much to take on, given the already broad scope of their existing responsibilities. As an alternative, some organisations are establishing a relatively new C- suite title, the chief customer officer (CCO), to act as customer champion. About 500 CCOs exist globally, either in title or responsibility, according to the Chief Customer Officer Council, a peer-led advisory group for CCOs (see sidebar). “At every strategic decision point, somebody needs to be asking, ‘what is the impact of this decision on the customer?”’ says Curtis Bingham, founder and executive director of the CCO Council. “In the absence of other people taking up that banner, the CCO can be the best choice because they are uniquely accountable for bringing the customer perspective into the company.” CMOs themselves seem to be warming up to the idea of a CCO to complement their efforts. Nearly one-quarter of CMO respondents in our survey said a CCO should be the voice of the customer. Still, more than one in four CMOs believe they should serve in the role as the voice of the customer. In our interviews, executives maintain that the CMO is best equipped to serve as the voice of the customer and lead customer-driven strategic initiatives, because marketing is already at the centre of the customer experience. “As a CMO you are sitting on a wealth of data, which puts you closer to the customer than anyone else in the organisation,” says Ms Peluso. “That is a really profound privilege and responsibility. The more you think about that and leverage that and figure out how companies can make better decisions because of the data they have access to, the broader your power can be.” Other executives agree that the CMO is uniquely positioned to drive a customer-led strategy. “If the CMO is not at the forefront of the customer experience, where else will you find it inside your organisation?” asks Steve Cannon, CEO of Mercedes-Benz USA. “The CMO role brings together the customer, the brand and the product. There is no more essential intersection in any business.” 1. The CMO reports to the CCO. Justification: Marketing is just one of many functions touching the customer. 2. The CCO reports to the CMO. Justification: Marketing has the budget and the data to support broad-based customer initiatives. 3. The CMO and CCO both report to the CEO. Justification: The CEO provides the mandate for change, and the CCO and CMO work in tandem to deliver for customers at all stages of the customer lifecycle. Source: Chief Customer Officer Council CMO and CCO: three organisational models ❛❛ The CMO role brings together the customer, the brand and the product. There is no more essential intersection in any business. ❜❜ Steve Cannon, CEO, Mercedes-Benz USA
  • 10. © The Economist Intelligence Unit Limited 20139 Voice of the customer Whose job is it, anyway? The CMO as CCO 5 CMOs who aspire to serve as the de facto CCO must find a way to use customer insights to create an exceptional customer experience that spans all physical and digital channels. At First Tennessee Bank, for example, a customer-experience monitoring programme lies at the crux of the marketing team’s efforts to improve cross-channel customer interactions. The programme uses a variety of tools, from surveys to social media monitoring, to measure the customer experience. “Everything flows into customer-experience tracking,” says CMO Dan Marks. “After a teller transaction or call centre transaction, we ask macro-level questions around loyalty and recommendation, but we also ask about brand- specific attributes. It yields a nice feedback loop.” Understanding what Mr Marks calls “the full 360 degrees” of the customer experience has led to The “chief customer officer” title has been around since 1999. It is becoming more prevalent, however, as organisations across all industries look to take a more customer-centric approach to their business. “A CCO is a good way to reorient a business around the people who really pay the bills: your customers,” says Curtis Bingham, managing director of the Chief Customer Officer Council, a peer-advisory network for CCOs. Mr Bingham says two main criteria define a CCO: 1. The CCO is the ultimate authority on customers throughout the organisation. 2. The CCO drives customer strategy at the highest levels of the organisation. CCOs have a variety of backgrounds, from IT to marketing, but Mr Bingham says those with operations experience are most common. “Executives who come from operations often have played a role in so many different divisions that they can tell where to go to gain the resources to resolve an issue,” he says. Because they understand many aspects of the business, these CCOs often possess another critical asset: credibility. Asking the CMO to assume CCO responsibilities can be a stretch, for one main reason: it is a lot to expect of an executive who already has a full plate of responsibilities. “A CMO can certainly take on the role of the CCO,” says Mr Bingham. “However, I don’t know that they should aspire to be one as much as they should be committed to working alongside a top-notch CCO.” Working in tandem, the CCO and CMO can deliver insights that improve performance at all stages of the customer lifecycle. “We are seeing more and more of this, and I believe it is the right way to go,” says Mr Bingham. The rise of the CCO
  • 11. © The Economist Intelligence Unit Limited 201310 Voice of the customer Whose job is it, anyway? smarter investments in marketing programmes and the discovery of an important brand advocate: the bank’s own customers. In 2011 First Tennessee Bank launched a campaign featuring customer testimonials—including videos featured on the bank’s YouTube channel—that reinforced the company’s brand promise. “We realised that in an era when many people are sceptical of banks, our biggest advocates were our customers,” says Mr Marks. “So it was important to amplify their voice, in a way that was authentic and powerful.” Improving the linkages among different functions enables companies to deliver a more consistent experience across all customer touch points, including face-to-face interactions. At KidZania, a Mexico-based business that has launched career-oriented “edutainment” theme parks for children in nine countries, marketing and IT worked hand in hand to launch a loyalty programme that attracted 100,000 members in its first year. The programme enables marketers to collect information about member activities at KidZania parks, and then use the data to deliver personalised communications at the physical locations or via e-mail or mobile messaging. Data collection is centralised to ensure privacy. “It is important for kids and their parents to feel a connection to KidZania wherever they go,” says Cammie Dunaway, US president and global CMO of KidZania. “It is an exciting and powerful programme which we have been able to build from the ground up.” At British Airways, marketing has played a key role in the launch of Know Me, a cross-functional, companywide effort to improve the customer experience through deep insights about existing customers’ preferences and behaviours. “Marketing works very closely with the customer experience team, IT, the cabin crews and other groups to monitor the feedback and listen to what customers are saying,” says Mr McDonald. “But it is an enterprise-wide effort.” While the CMO can play a leading role in driving customer insights throughout an organisation, it is clear that the “voice of the customer” extends well beyond a single person or business function. “Citi has over 200,000 people,” says Ms Peluso. “If we are going to be customer centric, it can’t be one person’s job. For a company to make a transformation into having a much more interactive relationship with customers, it has to be everybody’s job.” This mandate also extends to every member of the C-suite, whether they’re called a CMO, a CCO or something else. “It doesn’t matter what people’s titles are,” says Mr Bingham. “What matters is whether they are driving customer-centricity throughout their organisation.”
  • 12. © The Economist Intelligence Unit Limited 201311 Voice of the customer Whose job is it, anyway? Conclusion 5 As Citigroup, Mercedes-Benz, British Airways and others have demonstrated, marketing has an opportunity to lead any firm’s transformation into a more customer-centric organisation. CMOs, whether assuming the role of “chief customer officer” or working in tandem with one, can play a lead role in analysing and disseminating deep customer insights that drive business performance. Here’s how: Change the process. Organisations have become much more effective at gleaning insights by monitoring and analysing activities within individual channels. The next—and far more valuable—step is integrating information gathered from all digital and physical channels. Twenty-one percent of respondents say their ability to track customer engagement across different marketing channels is “lagging”. Taking steps to better understand “the full 360 degrees” of the customer experience can help CMOs offer predictive guidance about customers’ interests and activities. Leveraging this guidance will require new processes and workflows that provide the workforce with the information they need to make smarter decisions about all aspects of the business. Change the mindset. CMOs need to make a real commitment to infusing a customer-focused mindset across the entire organisation. This commitment begins with proper training and skills development for the marketing team, with an emphasis on data-driven analytical capabilities. CMOs cannot simply delegate this expertise, however. Although it’s unreasonable to expect CMOs to master all of marketing’s diverse domains, they do need to possess hands-on knowledge of emerging trends, tools and platforms for engaging and understanding customers. Demonstrating an aptitude for these types of emerging skills will build credibility and will trickle down through the rest of the organisation. A true customer focus requires everyone in the organisation to play the role of customer advocate. CMOs who can translate customer insights into real value for each part of the business can get everyone working towards the same goal—and secure their own standing as a strategic player in the C-suite.
  • 13. © The Economist Intelligence Unit Limited 201312 Voice of the customer Whose job is it, anyway? Appendix: survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses. Chief Executive Officer Chief Operations Officer Chief Sales Officer Chief Strategy Officer Chief Information Officer Chief Financial Officer Other To whom does your CMO or most-senior marketing executive report? (% respondents) 64 18 5 3 3 0 6 1 Highly strategic 2 3 4 5 Not strategic The CMO’s role How strategic a role does the CMO play in your organisation? Rate on a scale of 1 to 5 where 1 = Highly strategic and 5 = Not at all strategic. (% respondents) 23 39 29 8 2
  • 14. © The Economist Intelligence Unit Limited 201313 Voice of the customer Whose job is it, anyway? A leading role A key player Consulted No role Don’t know Formulating business strategy Formulating marketing strategy Formulating pricing strategy Developing new products/services Developing customer engagement strategy Shaping customer service Selecting new markets to enter Deciding on new IT investments Deciding on new marketing investments Connecting customer-facing functions What role does the CMO (or the most senior marketing executive) play in your organisation with regard to the following activities? Select the most appropriate response for each activity. (% respondents) 18 57 21 3 1 56 27 15 2 1 23 39 25 11 1 19 44 28 8 1 24 46 24 5 1 17 42 31 10 1 18 39 29 12 2 6 20 40 31 2 36 40 19 4 1 19 44 27 8 2 Brand marketing Digital marketing (online, mobile, social) Product marketing Channel marketing Customer service Market research Product development Public relations E-commerce Website development Sales Merchandising Retail Pricing strategy Over which areas do you expect the CMO’s influence to increase in the next 3 years? Select all that apply. (% respondents) 50 48 45 41 40 34 33 32 31 30 26 15 12 23
  • 15. © The Economist Intelligence Unit Limited 201314 Voice of the customer Whose job is it, anyway? 1 A significant obstacle 2 3 4 5 Not an obstacle Lack of C-level support for the CMO Current marketing executives lack the relevant skills Under-investment in supporting systems and technology Under-investment in talent acquisition, training, and retention Disconnect over what marketing should be delivering The C-suite conception of marketing is not as a strategic function Please indicate the extent to which the following are obstacles to the CMO playing a more strategic role in your organisation. Rate on a scale of 1 to 5 where 1 = A significant obstacle and 5 = Not an obstacle. (% respondents) 8 22 33 21 16 8 32 32 19 9 10 27 39 18 7 11 33 38 13 6 9 30 35 19 7 10 24 36 19 11 Customer insight Communications expertise Creativity Industry expertise Team building Data-driven analytical capability General business acumen Technical expertise Line-of-business knowledge Advertising/agency experience Social media expertise Pattern recognition Visual/design aesthetics What skills are most important for CMOs to have? Select the top three. (% respondents) 42 41 31 31 29 27 25 21 19 13 7 2 1
  • 16. © The Economist Intelligence Unit Limited 201315 Voice of the customer Whose job is it, anyway? 1 Significantly increasing 2 3 4 5 Significantly decreasing Advertising/agency experience Technical expertise Team building Communications expertise Creativity Data-driven analytical capability Customer insight Industry expertise Line-of-business knowledge General business acumen Pattern recognition Social media expertise Visual/design aesthetics Which skills needed by the CMO are gaining or losing importance? Rate each skill on a scale of 1 to 5, where 1 = Significantly increasing and 5 = Significantly decreasing. (% respondents) 6 33 33 21 7 11 29 41 17 3 22 41 30 6 2 24 45 27 4 17 40 33 9 1 25 35 32 7 1 28 36 29 5 1 14 38 37 9 2 12 36 42 9 1 18 36 38 7 2 10 31 49 8 2 16 44 31 9 1 7 28 46 17 2 1 Excellent 2 3 4 5 Poor Don’t know Establishing a clear business case for new marketing investments Delivering customer insights that drive business value Delivering measurable ROI for marketing expenditures Collaborating across functions to improve business performance Building relationships with customers Differentiating the value of your brand from your competitors How effective is your organisation’s CMO in the following areas? Rate on a scale of 1 to 5 where 1 = Excellent and 5 = Poor. (% respondents) 10 34 37 13 4 2 11 38 32 14 3 2 11 28 36 16 6 3 11 37 34 13 4 2 16 35 31 13 2 3 19 35 32 11 2 1 1 Strongly agree 2 3 4 5 Strongly disagree Our company is a customer-centric business Our company has a clear understanding of our customers’ tastes and needs Our organisation has the data, tools and process in place to react quickly to changes in customer behaviour or other customer dynamics We are using social media effectively to engage customers with our brand We are using mobile media to effectively reach customers wherever they wish to engage with our brand We are able to track the value of marketing investments across functions We are able to track the value of marketing investments across channels Indicate the extent to which you agree or disagree with the following statements. Rate on a scale of 1 to 5 where 1 = Strongly agree and 5 = Strongly disagree. (% respondents) 19 41 30 8 3 13 43 37 7 1 9 30 37 19 5 7 25 39 19 10 9 25 33 21 12 6 30 38 21 5 9 30 35 20 6
  • 17. © The Economist Intelligence Unit Limited 201316 Voice of the customer Whose job is it, anyway? Sales Customer service Product development Merchandising Research and development Operations Finance Human resources IT Don’t know In your opinion, to which areas of your business does your marketing function deliver significant business value? Select all that apply. (% respondents) 59 51 49 31 19 18 17 14 8 3 Lack of a strategic role for marketing in the organisation Hiring and retaining skilled marketing talent Inability to turn data into actionable insights Limited ability to demonstrate ROI/accountability of marketing investments Disagreement about the role of marketing Difficulty in mining “big data” for customer insights Lack of senior management support for marketing investments Misalignment between marketing investments and business objectives Lack of transparency across customer touch points Sharing insights quickly across the organisation Other What are the primary internal barriers that impede marketing from delivering more value to your organisation? Select up to three. (% respondents) 38 36 33 32 28 25 21 16 15 13 1 Driving revenue growth Finding new customers Improving your organisation’s reputation Creating new products and services Entering new markets Retaining existing customers What should the marketing function’s top priority be at your organisation? (% respondents) 30 17 16 13 13 10
  • 18. © The Economist Intelligence Unit Limited 201317 Voice of the customer Whose job is it, anyway? Improving your organisation’s reputation Retaining existing customers Creating new products and services Driving revenue growth Finding new customers Entering new markets To which area has marketing contributed most in the past year? (% respondents) 22 22 17 15 13 13 Head of sales It’s a shared responsibility across multiple roles CMO Chief Customer Officer Board member Chief Executive Officer Chief Strategy Officer Who is considered the “voice of the customer” at your organisation? (% respondents) 31 21 18 12 8 8 3 CMO It’s a shared responsibility across multiple roles Head of sales Chief Customer Officer Board member Chief Strategy Officer Chief Executive Officer Who in your opinion should be the voice of the customer? (% respondents) 28 23 17 13 7 6 5
  • 19. © The Economist Intelligence Unit Limited 201318 Voice of the customer Whose job is it, anyway? Face to face Email Corporate website Call centre Mobile devices Traditional media (print, TV, radio) Social media Online media (e-commerce website or 3rd-party websites) Direct mail What are your company’s most effective channels for customer engagement? (% respondents) 59 46 39 25 24 21 19 18 9 Face to face Social media Mobile devices Online media (e-commerce website or 3rd-party websites) Corporate website Email Traditional media (print, TV, radio) Call centre Direct mail What do you expect the most effective channels will be 3 years from now? (% respondents) 50 47 35 34 31 27 14 12 5 Superior: Our customer data is integrated across channels and can be shared and mined effectively for insights Average: We are making good progress integrating different channels and data sources to gain a more comprehensive view of the customer Lagging: Our customer channels are siloed, giving us little transparency across different touch points How would you describe your company’s ability to track customer engagement across different marketing channels? (% respondents) 18 61 21
  • 20. © The Economist Intelligence Unit Limited 201319 Voice of the customer Whose job is it, anyway? Customer relationship management (CRM) Brand advertising Collaboration tools Customer analytics Training employees Direct marketing Reputation management Marketing automation tools Social media New hires Mobile application development Web optimisation tools In what areas should marketing focus investments in order to contribute most to your business now? (% respondents) 51 40 28 27 24 24 17 17 15 14 13 8 Customer analytics Customer relationship management (CRM) Social media Mobile application development Brand advertising Reputation management Training employees Direct marketing Marketing automation tools Collaboration tools New hires Web optimisation tools In what areas should marketing focus investments in order to contribute most to your business in 3 years? (% respondents) 41 38 29 22 22 21 21 20 19 18 16 9
  • 21. Voice of the customer Whose job is it, anyway? © The Economist Intelligence Unit Limited 201320 Customer satisfaction Sales leads Customer engagement Revenue from expenditures Brand awareness Profit from expenditures Sales conversion Business analytics Customer retention Referrals Customer lifetime value Other Which performance metrics does your organisation employ to track Return On Marketing Investment (ROMI)? Select all that apply. (% respondents) 50 40 34 33 33 31 31 28 23 21 15 2 1 Very effective 2 3 4 5 Very ineffective Don’t know Aligning marketing strategy with overall business objectives Finding new customers Increasing the cost effectiveness of marketing investments Proactively identifying new ways that marketing can add business value Connecting customer feedback to new product/services creation Retaining existing customers Engaging customers across multiple platforms Tracking customer value across multiple platforms Linking customer engagement across business functions How effective is your company’s marketing function in each of the following areas? Rate on a scale of 1 to 5 where 1 = Very effective and 5 = Very ineffective. (% respondents) 10 36 37 12 2 2 7 33 40 14 3 2 8 26 42 17 4 3 8 31 36 19 4 2 7 31 39 17 4 2 12 34 36 12 4 2 6 32 37 18 4 3 5 23 35 26 8 3 5 27 41 21 4 2 1 Strongly agree 2 3 4 5 Strongly disagree Don’t know Our company can clearly demonstrate marketing’s contribution to top-line revenue growth Marketing can show direct linkages between our customer engagement and our financial performance We have fully integrated digital media into our marketing mix and have built proven models for digital media measurement We have established metrics/dashboards for tracking and measuring customer engagement Please indicate the extent to which you agree or disagree with the following statements. Rate on a scale of 1 to 5, where 1 = Strongly agree and 5 = Strongly disagree. (% respondents) 7 29 37 19 6 2 9 31 35 16 7 2 6 19 35 28 11 1 8 28 35 18 9 2
  • 22. Voice of the customer Whose job is it, anyway? © The Economist Intelligence Unit Limited 2013 21 1 Significantly ahead 2 3 4 5 Significantly behind Don’t know Performance of marketing investments Overall financial performance How would you rate your company’s performance in the last year compared with that of its peers? Rate on a scale of 1 to 5 where 1 = Significantly ahead and 5 = Significantly behind. (% respondents) 7 34 40 12 3 4 16 32 42 8 1 1 30 23 26 5 16 $100m to $499m $500m to $999bn $1bn to $4.9bn $5bn to $9.9bn $10bn or more What are your organisation’s global annual revenues in US dollars? (% respondents) Western Europe North America Asia-Pacific Latin America Middle East and Africa Eastern Europe In which region are you personally located? (% respondents) 40 27 24 6 2 1 United States of America Australia Germany Netherlands, Denmark Canada, United Kingdom India Mexico, Hong Kong Brazil, Singapore, Thailand, Argentina, Colombia, Indonesia, Switzerland, China, France, Italy, Malaysia, South Africa, Spain, Turkey, United Arab Emirates In which country are you personally located? (% respondents) 19 11 10 9 8 7 2 1 Board member CEO/President/Managing director CFO/Treasurer/Comptroller CIO/Technology director CMO/Head of marketing Other C-level executive SVP/VP/Director Which of the following best describes your title? (% respondents) 4 25 4 2 28 9 28 Marketing Strategy and business development General management Sales Finance Operations and production Supply-chain management Risk IT R&D Customer service Information and research Procurement Legal Human resources Other What are your main functional roles? Select up to three. (% respondents) 59 34 32 18 12 12 10 8 7 7 6 5 5 3 2 1
  • 23. © The Economist Intelligence Unit Limited 201322 Voice of the customer Whose job is it, anyway? Financial services Consumer goods IT and technology Manufacturing Professional services Healthcare, pharmaceuticals and biotechnology Retail/Wholesale Energy and natural resources Automotive Construction and real estate Chemicals Telecoms Agriculture and agribusiness Education Entertainment, media and publishing Transportation, travel and tourism Aerospace and defence Government/Public sector Logistics and distribution What is your primary industry? (% respondents) 14 11 8 8 8 7 7 7 5 5 4 4 3 2 2 2 1 1 1
  • 24. © The Economist Intelligence Unit Limited 201323 Voice of the customer Whose job is it, anyway? 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 white paper or any of the information, opinions or conclusions set out in the white paper. Cover:Shutterstock
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