Byravee Iyer
Jul 11, 2014

CMOs must fully embrace digital or risk being left out: Accenture

ASIA-PACIFIC - More than three quarters of senior marketing executives in Asia-Pacific believe corporate marketing will undergo a fundamental transformation over the next five years due to the use of analytics, digital and mobile technologies, according to Accenture’s annual CMO study.

CMOs must fully embrace digital or risk being left out: Accenture
CMOs must fully embrace digital or risk being left out: Accenture
More than one third (39 per cent) of senior marketing executives in APAC expect digital spending to account for more than 75 per cent of their marketing budgets within five years.  Spending on digital marketing will increase by more than 5 per cent next year alone, according to 42 per cent of the respondents.  The report is based on survey responses from nearly 600 executives in 11 countries, including more than 180 in Asia Pacific, conducted between November 2013 and January 2014.
 
Despite the trends noted above, only 23 per cent of the surveyed executives believe their company will be known as a digital business in five years. “To be part of the enterprise digital transformation that every business needs to undertake for survival, CMOs need to extend their vision of marketing and its scope,” the report said. 
 
Younger marketers see mobility as a game changer. Seven out of 10 marketers aged 50 and younger believe that mobile is an important channel for reaching customers and prospects, compared with fewer than five out of 10 aged 51 and over.
 
Budgets for digital marketing also continue to rise. Today, 39 per cent of businesses surveyed spend more than $100 million on digital marketing. Slightly more (41 per cent) expect that budget to rise by more than 5 per cent in their next fiscal year.
 
Senior marketers are increasingly embracing digital, serving as catalysts to help their companies take advantage of digital opportunities, said Patricio De Matteis, managing director of Accenture Interactive for APAC. De Matteis warned that the power of customer experience should not be underestimated. “Senior marketing executives are well positioned to assume this role because the opportunities, as well as the potential lie in the customer, the brand, the interface with the customer and how the customer is empowered,” he said. 
 
Nearly three quarters (73 per cent) of marketers say it is essential to deliver an effective customer experience for their company, and only 61 per cent believe their company is doing a good job. “Many organisations are now attempting to establish a customer-experience-management strategy and are beginning to hire talents with this specific skill set. However, the key to success is the ability to integrate digital assets with multiple platforms and channels,” De Matteis added. 
 

 
According to the report, omnichannel customer experience took a hit last year. Performance fell across key metrics such as ability to build long-lasting customer relations; design and deliver branded customer experiences; use multiple channels; and leverage digital channels.
 
The report also recommends that senior marketing executives focus more on leading and transforming the marketing role. “CMOs stand as the change agents who break the silos and collaborate across the organisation including the marketing and IT functions, to put their companies in the vanguard of digital leadership and customer experience,” the report said.
 

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