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Goodbye CMOs, Your Time is Up: From Brand Building to Business Growth

It is more than a year ago that Coca-Cola did away with their CMO in favour of a Chief Growth Officer. Was it a wise move or foolhardy?

In a recent interview with Marketing Week their global vice-president of creative claims that it has “broadened” the company’s approach to marketing. Well something is clearly working for Coke; at the end of last month it reported higher-than-expected financial results for Q3 2018. So what do you think? Will you replace your CMO?

 

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 during 2018 is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen this year 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. These are 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, 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. Blockchain technology has made marketing results more transparent. This is good for business as customers see how their data is being used, which builds trust.

Have you taken these megatrends on board and adapted your marketing this year? 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 because they continued to run their marketing in the same old way. With very few exceptions, their communications are still all about them  and their brands  and very little to do with their consumers.

Luckily, some more progressive consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to consumer centricity. Or to be precise, they started on their journey towards putting the consumer at the heart of their business. Consumer centricity is not a destination because consumers are constantly changing and their satisfaction never lasts for long. Therefore the aim for satisfaction and delight will never end. 

It is interesting to see how Coke’s change to a growth officer pans out. I don’t see other companies following for now, so I suppose they are prefering to just wait and see.

Consumers are constantly changing & their satisfaction never lasts for long, so the aim for satisfaction & delight will never end. #brand #Marketing #CEX #CRM Click To Tweet

We have taught our consumers far too well! They understand a lot more about “marketing” than they used to. They understand that companies have marketing plans and regular promotions, so they wait for their price offs. They realise that in today’s world, products have become more and more similar. Their format, colour or perfume may be different, but their performances are pretty comparable.

That’s why consumers now have a portfolio of brands from which they choose in many categories. They are far less likely to be loyal to only one brand than they used to be. They have come to expect constant innovation so they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch brands today compared to just ten years ago.

Consumers believe that they are more likely to switch brands today compared to just ten years ago. @Accenture #CEX #CRM #Consumers #Marketing Click To Tweet

 

CUSTOMER CENTRICITY

Marketing needs new skills
SOURCE: Korn Ferry CMO Pulse Report 2015

In response to these ever more savvy customers, marketing has to change, to become smarter. In the  2015 Korn Ferry CMO Pulse Report, it is confirmed that marketing needs new skills. The most sought-after skills today are analytical thinking and customer centricity.

 

Marketing is now as much a science as it is an art. We must take full advantage of the enormous quantity of data about our customers that is now available; we can no longer rely on creativity alone to connect.

 

Companies which place the customer at the heart of their business are easy to recognise. Their websites are filled with useful information, entertaining videos and games, and their contact page provides all possible forms of communication.

Their advertising is clearly customer centric and emotional, with the customer and not the brand as the hero. They involve their customers in many aspects of their business. (see  “The exceptionally easy and profitable uses of co-creation” for more on this topic.)

If you’re not sure how good your customer centricity is, just take a look at your own website, especially the contact page. Or why not complete the C3C Evaluator? It’s free!

 

MOVE BEYOND BRAND BUILDING

Whether you are still doing marketing or have already moved to brand building, here are a few of the essential first steps that you need to urgently make to adopt a more customer centric approach:

  1. Place pictures of your customers everywhere, so people start to naturally think about them. This can be at the beginning and end of presentations, in your office reception, on the lift doors or anywhere employees spend time.
  2. Whenever a decision is taken, ask “What would our customers think about the decision we have just taken?” This will avoid such practices as hiding price increases by reducing pack content without telling the customers. Or asking credit card details for the use of a “free” trial, in the hope that the customers will forget and be automatically charged for a service they may not want. What would our customers think about the decision we have just taken? If they wouldn't like it, it is wrong. #CEX #CRM #Customer #Business #Decision Click To Tweet
  3. Review the language of your website. If there are more “we’s” than “you’s” then you know what to do. While you’re online, check out your contact page for possible improvement opportunities, as detailed above. Look at your website; if there are more 'we's' than 'you's' then you know what to do. You're not thinking customer first. #CEX #CRM #Customer Click To Tweet
  4. Take a look at your target customer description or persona. When was it last updated? If you don’t even have a written document clearly describing them, then use C³Centricity’s 4W™ Template until you develop your own. (you can download it for free  here)
  5. Examine your advertising. Who is the hero? Consider developing concepts that are more customer centric, by making use of your understanding of them and their emotional triggers.
  6. Spend time with your front-line staff and customers. Make use of call centers, in-store promotions and merchandisers to talk to your customers, as well as to the employees who connect with them. They will almost certainly be able to tell you a lot more about your customers than you yourself know.
  7. Share your latest knowledge about your customers with the whole company. Help every employee to understand the role they play in satisfying the customer. Make them fans of your customers and you will never have to worry about such questionable practices as those mentioned in #2.

 

These are your starter tasks for moving from marketing and brand building to adopting a customer first strategy. If you’d like more suggestions about moving to a future-oriented marketing approach, download a free sample of my book “Winning Customer Centricity”. The fun drawings in this post come from the book!

This post is based upon and is an updated version of one first published on C3Centricity in 2016.

New Thinking for Old Ways of Business

I’ve just come back from IIeX-EU (Insight Innovation Exchange – Europe) in Amsterdam, and my head is full of exciting new things to experiment. It’s strange what happens to our brains when we have the chance to get away from the office and THINK! We become more creative, less bound by old habits, and ready to try new experiences.

After these few days away, I am fired with enthusiasm to bring real changes to my own business, those of my clients, as well as to yours through this post. I’d like to share a few of the ideas which were stimulated by some of the best presentations I’ve ever seen grouped into one single conference. Read on for four inspirational ideas for you to implement immediately, to bring new thinking into your own business.

Partner for Growth

Lowes logo eOne of the first speakers at the event was Kyle Nel from Lowe’s, an American home improvement chain. He explained that business is about changing customers’ behaviour and to do this we need to constantly update our methods for underst anding them. Lowe’s finds inspiration in partnering with organisations including Coke, UNICEF and NASA; how’s that for thinking outside the box? By connecting with companies in other industries, their thinking is constantly challenged, which enables them to grow exponentially, rather than in the linear fashion that most of us seem to be satisfied with. Kyle shared how Lowe’s accepts that whilst there may often be disappointments, the one in ten new ideas that truly deliver are worth all their efforts.

NEW THINKING: Find a catalyst for your own growth to bring you new ideas from external sources. Also look outside your industry for inspiration, and partner with a select few industry leaders that are trying new, exceptionally creative things (Like Loew’s!)

Know what you Know

Information & knowledge sharing is essentialGregory Short, author of “The Billion Dollar Paperclip”, suggested that it’s time we took a new look at our business and the eco-system in which it is operating. Amongst the list of things mentioned, he included identifying what you already know. This resonated with me because so often when new clients ask for help, they often already have a lot of the information they are seeking, they just didn’t know they had it!

Haiko van Lengen and Sjoerd Koornstra shared a Heineken case study which covered a similar point on knowledge sharing. They mentioned the 2009 Boston Consulting Group Insight Benchmarking study which showed that most companies are not using the majority of the information they gather.

Haiko and Sjoerd suggested that before doing any sort of information gathering, we should first assess what is already available internally on the topic. This review should include talking to all departments and definitely not just market research. You would be surprised how many companies operate in silos, each buying their own reports and information, and too often without the knowledge of their market research and insight department.

NEW THINKING: Find a way of sharing more information across your organisation, by setting up an easily accessible storage system. This could be as simple as a shared folder or as proprietary as a knowledge management system and library.

Don’t be Scared of Emotions

Plutchik's wheel of emotionsDiana Lucaci at True Impact Marketing, spoke about the surprising habit many marketers have of being satisfied with knowing just the “Who” and the “What” of their customers’ behaviours. She pointed out that it is even more important to underst and the “Why” of customer actions in order to impact them.

With the rapid expansion in the use of neuroscience and biometric measurement in market research, we now have the possibility to underst and a lot about our customers without even directly asking. Perhaps it’s time for you to experiment (again?). Let me know if you’re interested in trying out the leading emotional measurement tool around.

Diana also made a throw-away comment at the end of her presentation that was also later picked up by Daryl Travis during his talk on “Why emotions win the battle of the br ands”. It reminds us that there are simple things we can do that can have an incredibly positive impact on our customers’ loyalty:

“Make sure that checkout, or the last action your customer makes, is a memorable and positive experience” (>>Tweet this quote<<)

Daryl also ended his presentation with another well chosen, inspiring quote from Maya Angelou, the American author and poet:

“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel” (>>Tweet this quote<<)

NEW THINKING: Review your own customer journey maps, but this time as an emotional journey and ensure that the last step is a positive experience – or urgently correct it if it isn’t!

Customers only Care about the Benefit

Benefits are what interest customersThis links to the previous comment on emotions. Michael Bartl from Hyve, mentioned that your customers don’t really care about who or how you solve their problems, only that you have a solution. Whilst this is probably correct in general, I believe there are some customers who do care and you need to know who they are. Concerns about sustainability, sourcing and ecological impact can all be relevant for some industries and br ands, so you need to check whether they are to your customers or a segment of them.

NEW THINKING: Review your advertising and see if you too spend most time speaking about rational product or service elements and less about the customer benefits. If it’s the case, make the swap to a more benefits-driven communications and measure the impact.

These are just four of the tens of pages of ideas I wrote, that were stimulated by presentations I followed during the IIEX-EU conference in Amsterdam last week. I hope they inspired your own thinking and interest in trying out some new things in your own marketing and market research. Let me know if you have any questions or comments, or if you’d be interested in getting some help in catalysing change in your own organisation.

C³Centricity uses images from Dreamstime and  Kozzi

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