Accenture - Insight Driven Marketing Report

InsightDrivenMarketingUsingCustomerInsightstoBuildBrandLoyaltyandIncreaseMarketingROIResearchReport©2001AccentureAllrightsreserved.IX00000226S2520_CRM_IDM_Covers.qxd2/11/0111:31Page1Introduction‘It’sadifficulttimetobeamarketingprofessional.’AboutAccentureAccentureistheworld'sleadingmanagementandtechnologyconsultingorganization.Throughitsnetworkofbusinessesapproach–inwhichthecompanyenhancesitsconsultingandoutsourcingexpertisethroughalliances,venturesandothercapabilities–Accenturedeliversinnovationsthathelpclientsacrossallindustriesquicklyrealizetheirvisions.Withmorethan75,000peoplein46countries,thecompanygeneratednetrevenuesof$11.44billionforthefiscalyearendedAugust31,2001.Itshomepageis:KarimK.Emara,AllenValahu,ScottD.Egler,HeatherG.Dyke.EditorBernardA.Thiel–TheBloomGroupLLCTospeaktooneofourInsightDrivenMarketingexpertspleasecallAccentureat+13127377777.DesignandProductionSilverskinCreativeConsultantsS2520_CRM_IDM_Covers.qxd2/11/0110:31Page2It’sadifficulttimetobeamarketingprofessional.Thenumberofcompaniesnowvyingforconsumers’dollarsisatanall-timehigh,asisthemind-bogglingarrayofthesecompanies’productsandservices.Theexplosioninrecentyearsintheamountofadvertisingandmarketing‘noise’,coupledwithadropinconsumers’freetime,havecausedconsumers’patiencefortraditionalmarketingeffortstowearthin.Andcustomers’increasingsophisticationaboutwhere,howandwhattobuyhasledtoheighteneddemandsforservice,value,andpersonalattentionfromthecompaniestheychoosetopatronize.Allofthesefactorshavemadeitincreasinglydifficultformarketerstomaintainahighdegreeofcustomerloyaltytotheircompaniesandspecificofferings.Exacerbatingthesituationistherecentdownturnintheglobaleconomy.Insuchanenvironment,marketingtakesonaddedimportance,yetissubjecttocloserscrutiny.Companiesrealizetheyneedtoredoubletheireffortstostimulatedemandfortheirproductsandservicesinsloweconomictimes,butalsowanttoseea‘biggerbangfortheirbuck’fromtheirmarketingactivities.Theneteffectisthatmarketersmustbemuchmoreselectiveinhowtheyspendtheirmoney–andonwhomtheyspendit.Tryingtomeetthesechallenges,companieshavelookedtoinformationtechnology(IT)asananswer.And,infact,anumberofITsolutionstodatehavehelpedcompaniesimprovecertainaspectsoftheirCustomerRelationshipManagement(CRM)activities–specificallyinhowtheyselltoandservetheircustomers.Yet,despitethebenefitsthesesolutionshavegeneratedforthesalesandcustomerservicefunctions,technologyhasnotenabledcompaniestoaddressthetotalityoftheproblem–namelytransformingtheentirecustomerexperiencetocreatelastingcustomerrelationshipsandbuildsuperiorbrandvalue–becausemostCRMeffortstodatehavefailedtosuccessfullyintegratemarketingwithsalesandcustomerservice.Allofthis,however,isabouttochange.NewCRMtechnologiesandprocessesnowmakeitpossibleforcompaniestobuildupontheirsuccessesinsalesandservice,andaddresstheirshortcomingsinmarketing.Throughourextensiveworkwithhundredsofcompanies,aswellasourcomprehensiveresearchonmarketing,salesandcustomerserviceactivitiesatorganizationsaroundtheglobe,Accenturehasidentifiedanumberofleadingcompaniesthatareadoptinganewapproachtomarketing–wecallitInsightDrivenMarketing–thatprovidesthemissinglinkthatthusfarhaskeptCRMfromlivinguptoitspotential.Usingthisapproach,thesecompaniesarecreatingmeaningfuldialogueswithcustomersatallinteractionandtransactiontouchpointsand,intheprocess,theyareestablishinglastingandprofitablecustomerrelationships.Thefollowingreportpresentsthefindingsofayear-longresearcheffortbyAccenturetounderstandthechallengesthatmarketingprofessionalsintheUSandtheUKface,howtheyareaddressingthesechallenges,andwhatcharacteristicsaresharedbythosecompanieswiththemostsuccessfulmarketingpractices.AlsoincludedarerecommendationsfromAccentureconsultantsforhowcompaniescanimprovetheoperationoftheirmarketingfunctionsandsignificantlyincreasethereturnontheirmarketinginvestment.Section1:TransformingtheMarketingOrganization5TheShiftingCustomerLandscape7TheImpactonMarketing11ANewApproachtoMarketing15AnalyticalMarketing17OperationalMarketing27CreativeMarketing33TheFutureofCRM35Section2:ResearchFindings37DemographicsandMethodology41ChallengestoMarketingCampaignCreationandExecution43MarketingCampaignEffectiveness47MeasuringCampaignPerformance49TimetoCompleteCampaigns51WaystoImproveCampaignEffectiveness53AbouttheAuthors55Bibliography57ContentsSection1:TransformingtheMarketingOrganizationAnyoneresponsibleforconsumermarketingactivitieswillacknowledgethatit’sbecomeincreasinglydifficulttoconnectwithexistingandprospectivecustomers.Infact,theenvironmentinwhichcompaniesoperatetodaybearslittleresemblancetothemarketof20oreventenyearsago.Inthepastdecadeorso,loyaltytobrandshasbeenerodingsteadily.Whiletheshoppinghabitsofconsumersinthe1970sand1980swerehighlyinfluencedbythebrandoftheproductorthecompanythatsoldthe