An effective MOM is the engine that drives continual growth.
One real-estate company that we work with, for example, figured out that by accelerating the delivery of IT-dependent functions to marketing, the business was able to generate an extra 25% in conversions. For a small-medium-enterprise like our client, that is worth $2 million per year. Conversely, for every week delayed in deploying a capability in IT, the business lost an estimated $4 million more in incremental revenue.
The New Marketing Operating Model
At a high level, an effective MOM is made up of three parts:
Integrated consumer data: Collecting data isn’t the issue—companies have plenty of it. It’s not uncommon, for marketing, customer-support, transaction/order, technology, and store operations to all have distinct sets of data on a single consumer in multiple databases and tables. The challenge is weaving all the available data into an accurate and complete profile of the individual consumer. Failing at that can blunt the impact of even the most ambitious data-collection efforts.
Decision making: With a complete customer profile in hand, companies can “score” customers based on specific criteria of value-creation potential, allowing marketers to prioritise which messages, offers, and experiences to deliver at which points in the decision journey. A set of business rules and regression models, increasingly based on machine learning, helps to prioritise and match specific messages, offers, and experiences to specific customer scores.
Distribution platforms: Marketing-technology platforms are the last mile of the process. They integrate the customer scores and use them as triggers to deliver the right message to the right person across all addressable channels. Equally important, the platforms track the responses, conversion, and value created so that the MOM can learn and adjust.
The real value of the MOM comes not just in building out these three elements but in getting them to work together. When running effectively, the data informs the decisions on the best messages or offers, and the customer’s feedback becomes new data, which is then fed into the MOM. - McKinsey
Technology -Martech to serve businesses
It isn’t a big surprise that 73 percent of top-performing companies—those whose revenue generation outperforms the market—have increased their martech spending an average of 16 percent in the past year. But is all that technology really helping?
Significantly, McKinsey found that 49 percent of companies that outperform the market feel they have the tech tools they need, compared with only 16 percent of their poorer-performing peers. This highlights the importance of focusing a company’s technology spend on the company’s unique goals.
In our experience, marketing leaders who have a well-defined sense of the problem they want to solve or the opportunity they want to exploit get a better return on their technology investments.
Overall, martech—or, more specifically, how it’s implemented—still has a long way to go until it provides the value it promises. From the survey, we found that the top focus of martech is in informing marketing strategies (63 percent) but then there’s a steep drop off. The next-highest area of focus is in using automation to execute and manage campaigns (41 percent), or to upgrade customer-relationship management (37 percent).
IT/Marketing Company Collaboration
The most effective marketing company and IT collaborations are built on specific and conscious decisions and on implementing policies to support them; making marketing a checkbox on IT’s to-do list just doesn’t work.
An astonishing 45 percent of the executives surveyed, however, say marketing and IT are not working together at their companies in any significant way. In the overwhelming majority of cases, marketing is still reliant on IT to implement and configure its technology, whether systems are used on premise or in the cloud.
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