Connecting the Dots Around The Customer: It’s The CMO’s Responsibility

WRITTEN by:  David Cooperstein, 01.06.10, 6:26 PM ET

In my interactions with CMOs at some of the largest companies in the U.S. and Europe, I hear a familiar refrain. It goes something like this: “My company is customer-centric, but marketing doesn’t control the customer experience.” Indeed, only 53% of marketers we surveyed recently reported that they “own” the customer experience, putting the brand experience in a channel or environment that does not think to speak with marketing’s voice. Even fewer are directly responsible for loyalty programs, community management and customer service. And from a budget standpoint, 80% of marketing budgets go to advertising, with just 20% going to loyalty programs and customer experience.

To truly earn their place at the executive table, chief marketing officers today must go beyond overseeing marketing programs. They must drive the brand promise into the hearts and minds of everyone in their organization. Top marketing executives must refocus their attention. Their responsibility isn’t just aggressive advertising and promotion. It should also consider their company’s broader business agenda. The CMO is the one who must connect the dots—the touch points with the customer—to make every experience with the brand consistent and positive.

Why the CMO? Because he or she, in segmenting the audience, building a media plan or collateral portfolio, and testing ideas and awareness, understands the brand experience that resonates best with the customer. The CMO needs to orchestrate this message across diverse opportunities and resources—within marketing, across, and outside of the company—to create a compelling brand experience that delivers value to the consumer, and ultimately to the company. As the “chef d’orchestre” for the company, he or she is the conductor, not the manager of the box office or the lighting board. But as the creative force that makes sure the overall experience fits together, the CMO needs to see to it that the operational and sales efforts are in synch with the messaging that gets distributed.

How does a CMO do this? Forrester prescribes four pillars that the CMO must use to get the company playing by a single customer playbook:

* Align the company by customer group. Product-centric companies focus on distribution and throughput, but do not leverage the value of combining products that serve a single customer. Companies organized by consumer groups can gain media buying and marketing leverage, with a large set of products and messages tailored to a few strong audiences.

* Synchronize the consumer lifecycle. As customers go through the purchase funnel, and the post-purchase cycle, they should have a consistent experience. This means every touch point tells the same story, and is consistent in the message and service they deliver. The outcome is loyalty when they seek to purchase again.

* Offer visible value to the customer. The definition of a product now extends beyond the one-time sale. Mobile phones, Louis Vuitton travel bags and Xbox videogame consoles combine the product offer, content, and interaction to provide a much more comprehensive experience than off-the-shelf products had in the past.

* Use customer insights to direct company efforts. Harnessing customer data to understand preferences, buying trends, and shortfalls in conversion or satisfaction are critical and fundamental to the company working synchronously. CMOs must understand the data and use it to help set objectives for success across the entire company.

Which CMOs lead this thinking today? Think of the brands that wrap themselves around the customer. Best Buy extends its brand beyond selling electronics to content and support for people before and after they actually purchase with reviews supplied through BazaarVoice, installation through Geek Squad, and customer support via their Twitter-enabled “Twelpforce” to answer immediate problems. It uses mobile devices and apps to provide the in-store team with information and allow comparison shopping. IHG, meanwhile, operates brands that appeal to consumers depending on the mode of travel they are anticipating - Hotel Indigo when the clients want a local boutique experience as well as benefits of a brand, Holiday Inn for a smart value, and Intercontinental when practical luxury is desired. Del Ross, IHG’s vice president of U.S. sales & marketing, says “IHG has moved from pure demographic targeting to aligning the brands with the needs of each travel experience.”

Companies that embrace the customer, led by the CMO, will give consumers the kind of experience they—and your brand—deserve.

WRITTEN BY: David Cooperstein is a VP, research director serving marketing leaders, at Forrester Research in New York