I downloaded an infographic http://bit.ly/1jtr5l3 this morning from Customer Management Exchange Group that shows the Top 5 Areas of Investment for Marketing Leaders and how investment priorities have changed for strategic marketers over the last 12 months
Basically – I’m shocked!
Allow me to qualify by acknowledging that I don’t have the formal definitions of each of the abovementioned investment areas (e.g. What makes up Marketing Effectiveness) and, aside from the infographic I haven’t seen any of the underlying research. I am only reacting to the infographic.
As somebody who evangelises a customer-centric business model as one of the only ways of building meaningful competitive advantage for most organisations today, my assessment is that these priorities are a ‘step backwards.’ My comments on a couple of these 2014 investment priorities
Let’s begin at Investment Priority #5 for 2014 – Customer Acquisition. World markets remain under pressure in most geographies. The majority of organisations still generate the bulk of their profits through a product-centric mindset and we know there are cracks in the product-centri c mindset. Amongst others, commodisation is increasingly common due to technology enablement, product/service life cycles are shorter, customers are smarter, products are available anywhere and everywhere due to globalisation and de-regulation of industries. Customer trust in government and corporate remains low. We all know that it costs more to ‘Acquire’ than it does to ‘Retain.’ Why would investment priorities only highlight 1 of the drivers (Customer Acquisition) of customer value management, the others being Retention, Efficiency (cost-to serve understanding) and Penetration (customer development, x-sell & up-sell)
Maybe, just maybe, Investment Priority #4 for 2014 – Marketing Effectiveness addresses the balance across these 4 drivers of customer value management. Maybe, Marketing Effectiveness implies a focus on Retention, Customer Development and Cost to Serve Efficiency in addition to Customer Acquisition.
I’m astounded that Investment Priority#4 for 2013 – Customer Experience, has dropped off the priority schedule. Is this because organisations are finding it too difficult to enable cross functional capability to design and to deliver a unique, distinctive and consistent customer experience? Is this because executive teams are once again becoming increasingly short term focussed? There will always be tension between the need to deliver profits ‘tomorrow’ and the need to develop sustainability for 6 months, 1 year, 5 years, 10 years, 20 years ahead. Maybe organisations are feeling that Customer Experience is too complicated and that it’s easier to talk about than to operationalise. Customer Experience requires cross-functional working. It requires the breakdown of silos and a change in the operating model. A customer-centric business model doesn’t change the importance of organisational performance measurement but it does change what, when and how business performance is measured. Maybe this is why Investment Priority#2 for 2013 – Marketing Measurement, Accountability & ROI, has also fallen of the 2014 Priority list.
The other notable difference is that Investment Priority#1 for 2013 – Future Thinking, Trend watching and Forecasting appears nowhere in 2014. My concern is that the 2014 Priorities are therefore not indicating any real commitment to business model innovation.
What are your thoughts and observations?