Should CMOs Concentrate on Brand Building or Business Growth?

Do you remember when Coca-Cola did away with their CMO in favour of a Chief Growth Officer? Then two years later they brought back the position. At the time, I asked if they were wise or foolhardy to make such a change, but they answered the question themselves!

In an interview with Marketing Week, their global vice-president of creative claimed that it had “broadened” the company’s approach to marketing. Obviously, this didn’t live up to their optimistic expectations. I think that other companies who followed suit, also realised that they need a CMO after all. However, their role has changed significantly. 

 

HOW MARKETING HAS CHANGED

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’re like me and are fascinated by how change happens, then I’m sure this complete history of marketing Infographic by Hubspot will be of interest.

With the arrival of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Their consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated their consumers with spammy emails, popups and “subtle” cookies for following their every move. No wonder the EU felt inclined to develop its GDPR (General Data Protection Regulation).

What has changed over the past five years is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen and their impact on marketing, include:

  1. Chatbots, especially through Facebook Messenger and WhatsApp, to catch consumers on the go with highly personalised messaging.
  2. The use of voice. With the battle between Amazon, Microsoft and Google in the voice search and commands domain, customers can get answers just by asking. This is a huge challenge for businesses because being on the first page of search results is no longer enough; you have to be first!
  3. Video is taking over social media, with its rapid rise on YouTube, Vimeo, Twitter and Facebook.
  4. Influencer marketing is giving way to customer journey mapping with the increased detail that IoT can provide. Many organisations have moved their marketing plans to mirror their customers’ path to purchase. Or rather paths, as personalisation continues to trump mass engagement.
  5. Zero-party data. As social media platforms have seriously reduced the collection of their subscribers’ data, brands are increasing their direct engagements with their consumers. Through polls, quizzes and competitions, they openly ask for consumers’ details, bypassing the need for cookies.

Have you taken these megatrends on board and adapted your marketing accordingly? If not, why not? 

 

BRAND BUILDING

In the past decade or so, many large CPG companies such as P&G  and Nestle renamed their Marketing departments as Brand Builders, in the hope of adapting to this new world. They failed, miserably.

I believe the reason they failed is that despite this name change, they continued to run their marketing in the same old way. Continue Reading

The Exceptionally Easy & Profitable Uses of Customer Co-creation

One of my clients, who is following the 50 weekly actions for customer centric excellence as described in Winning Customer Centricity, asked me for some further ideas on how to execute customer co-creation.

Since working more closely with customers is the best way to understand, satisfy and delight them, I am impressed that she is taking customer co-creation even further. In fact, I realised that this is an area that many of you may be interested in learning more about, so I decided to share what I told her, but first …

What is Co-creation?

The term co-creation has been around for decades. However, it is only in the last ten years or so that we are seeing a growth in co-creation in so many different areas of marketing.

According to Wikipedia co-creation is

“A management initiative, or form of economic strategy, that brings different parties together (for instance, a company and a group of customers), in order to jointly produce a mutually valued outcome.”

Individualisation, which offers higher-priced items with a customer perceived higher-value, has been popular for years. It allows customers to design their own unique products to show off their personality. For instance, customers can personalise their M&M chocolates and design their own Nike running shoes. But these are not strictly co-creation since they are designed by one person for for one person. Co-creation is designed by many for the many. 

After the success of such personalised offers, organisations understood that there is value in getting input from customers. They now include them not only in product enhancements, but also in developing their advertising and even in first-stage innovation.

The practice has been further intensified by the internet, which has enabled companies to reach out to customers across the globe, virtually for free. Social media, in particular, is a great source of customer understanding, as well as for highlighting issues with current offers. This is why co-creation should include social media in some form, as I’ll share further on.

Who to work with?

Winning Customer Centricity - The BookAs I mention in my book, not all business managers feel comfortable exposing their new ideas and concepts to their customers. If this is the case in your organisation, then you are left with the only option of interviewing employees. This isn’t such a bad thing; after all, they too are customers, but you need to keep in mind their biasses. They probably know more about the brand than the average customer and are also likely to be more positive towards it. However, their passion for the company and its brands is a valuable asset not to be neglected.

If your management allows you to work with customers, then you will want them to be vetted for different things by the recruitment agency:

  • They shouldn’t work for one of your competitors; nor should their close friends and family members.
  • They shouldn’t work for advertising, media or PR agencies, which could tip off your competitors.
  • They should be creative and curious, but not be one of the infamous “1%ers” (the ultra-creatives) that were popular when co-creation was first used.
Continue Reading

I hope you enjoy reading this blog post.

If you want me to catalyse your growth and profitability, just book a call.

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