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Future State - The Oracle Consulting Blog

Modern Marketing is the science of Customer Experience

Vivek Rengaraj
Marketing Manager

Author: Nick Fleetwood, Director of Strategy and Analysis, Oracle Marketing Cloud EMEA

Do you know the median tenure for a CMO is less than 3 years? In the last five years there has been a shift towards the CMO owning the revenue and growth metrics for the business that are driven by acquisition, customer value and retention marketing activities. CMOs are being asked to be the ‘Silver Bullet’ for CEOs as they seek to rapidly change or maintain business performance. Given the pressure and the reality of the length of the tenure, the challenge is always there to find the solution to rapidly increasing the return on investment from marketing spend: to find the unique combination of the right resources, strategy and technology that can rapidly adapt to the market conditions to get your products into the hands of the right people at the most efficient cost that can drive growth and average customer value.

As Director of Strategy and Analytics for Oracle Marketing Cloud, my role and the role of my team has been to aid the acceleration of our client’s maturity in terms of their approaches to utilising marketing technology to achieve the strongest impact on their KPIs. In the last 3 years our engagements have been driven by one aspect more than any other: Customer Experience.

What has become clear to me, is that marketing is now an output of effective Customer Experience. In fact you could say it is the science behind Customer Experience, as CX becomes focused on rapidly executing campaigns and strategies against measurable KPIs and then realising the value of those experiments across the marketing ecosystem as efficiently as possible.


Framing the science

Based on that concept we have been developing a new framework that has been focused on accelerating Customer Experience by focusing on the 3 fundamental factors that are driving modern CX:

Technology: The age of point solutions operating individually in silos is now behind us. The focus is on an integrated suite of technologies that are driving a new set of marketing disciplines that are entirely focused on achieving seamless Customer Experience. Technology, however, is also moving faster than ever before so choosing the right technologies and adapting to market innovations will be the differential in winning the customer.

Data: We are all coming to terms with the fact that data will be a central pillar of any marketing conversation for the rest of our lives. One challenge is defining what elements of the data strategy should be the responsibility of the CMO and which fall to the CTO or CDO? Taking the science analogy, data is a variable which needs to be controlled to be valuable to the CMO. In this instance we should use data to analyse performance, model future behavior and drive insight into our customers. The key is asking the right questions to ensure data provides the right opportunities for us in Marketing.

Customer: It goes without saying that the Customer is central to Customer Experience. The need to have clarity on our target personas at an individual level, through a combination of persona driven marketing and behavioral real-time responsive cross-channel campaigns, are the key driving forces for many marketing teams at the current moment.

 

The Accelerator Model

In order to display this, we think of Customer Experience as a DNA Helix with three elements – Technology, Data and Customer.

This model is designed to not only show how each integral element of the Strategic Accelerator model aligns, but also to show how they flow together. Any of the individual elements can be treated in isolation to provide maturity in a specific area – for example a CMO who wishes to focus on the value of Data Modelling – but there will be a natural next step in the cycle for the CMO to take should they wish to continue.

Let’s go through an illustration of the Accelerator model from end-to-end:
 

  • Technology is the starting point as so often a period of acceleration is driven by one of two events, a new technology providing new opportunities to the marketing team or the evaluation of an existing, possibly under-performing technology that is part of your mar-tech stack. Our advice is to take a Best Practice approach to evaluating how you are using your technology both in isolation and as a functioning whole within your ecosystem. This will drive new engagement activities at a strategic and campaign level for your marketing team.
  • A new technology will then create an effect of re-evaluating your Marketing Disciplines. How does the new technology impact your website optimisation, your marketing automation programs or your digital advertising? As a result the opportunity comes to benchmark yourself against in each discipline in the context of your new technology to shape your approach to elevating your maturity in this area.
  • Any new technology requires evaluation in the context of the Industry Trends and Innovations which are impacting your business. How are challengers in your market adopting new technologies to shape their go to market and reach your customer base more effectively? Is that an opportunity which is both relevant and cost effective for your business to pursue?
  • This new technology now needs to be allied to your Business Objectives and KPIs to align how it impacts measurable performance at every level of your business. This will entail understanding the interplay between campaign level metrics (open rate, CTR, conversion rate), marketing level metrics (new customers, average customer value) and business metrics (revenue, growth etc).
  • Analysis of your marketing data at a campaign, channel and holistic marketing level becomes the key measure for understanding the value of marketing technology, disciplines and marketing performance. This analysis should allow constant re-evaluation of spend and investment as well as putting Return on Investment on strategic initiatives.
  • What opportunities does our data present in terms of Modelling to provide clear answers on customer’s behaviour and preferences. Can we use our data to segment our customer base into self-ordering groups or propensity to purchase or next best action? This is the clearest way for us to bridge the gap from Data to Customers.
  • Using Data we can gain a clear view on who our Customer are in terms of data points and logical groupings, but until we start to build their Personas we are unable to use them to innovate around customer experience.
  • Knowing our customer persona’s motivations, needs and influences allows us to build Customer Journey Mapping that not only recognises the reality of our current interactions with our customers, but also create innovative CX around moments that matter and understand the impact that innovation will have on KPIs and strategic initiatives.
  • Finally the Customer Journey requires a consistent Digital Experience which examines how effectively your creative approach both delivers your brand identity and drives customers to complete your desired action in the acquisition or retention funnels.

Which leads us back to Technology as you use the Customer Journey to understand which gaps now exist in your marketing architecture that are required to be filled in order to achieve the Customer Journey you have mapped out. In this way your customers inform your technology choices.

This model is designed to be a virtuous circle with technology creating data modelling that drives new customer experience that creates need for enhanced technology. Those companies that embrace the acceleration model will be able to not only adopt new technologies faster and innovate new customer experiences more effectively, but they will also be able to measure the impact on those technologies and shape their approach through a robust KPI driven series of initiatives.

Read more on Oracle Marketing here 
Also, don't forget to read the blog post on What if e-mail died?

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