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the better CMO embodies the betterness principles: 1) Delivering meaningful value to customers and the extended enterprise; 2) Designing tomorrow vision and incorporating it in today practices to produce well being that can last over time; 3) Acting as a designer, teacher and steward to help the human community to shape its future. Consistently with these principles, he has formalized 9 imperatives for the marketing department.
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
9 imperatives of the #better #CMO
LUCA DESTEFANIS IBM
SHANGHAI March 2014
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
seeing the possibilities
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
LEADERSHIP!INNOVATION!RELATIONSHIP!
Know your customers as individuals
Delight your customers
Nurture the community
Build new skills for a new world
Enable open, sustainable innovation
Lead by design
Deliver the bottom line
Simplify the company
Create an authentic brand and culture
The Better CMO
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
LEADERSHIP!INNOVATION!RELATIONSHIP!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO knows customers as individuals
§ Instrument all the key touchpoints to gather the right data about each customer
§ Connect social media data, transaction data and other information to paint a more vivid picture of each customer
§ Run real time customer analytics (descriptive, predictive, prescriptive) to generate new ideas on whom to serve, and how to best serve that individual
§ Use social mining techniques to identify and target micro-segments, and to refine product / services offering
§ Build the capability to do this at a massive scale
the Better CMO…
Every minute, there are 100k new tweets, 6M Facebook views, 2M+ Google search3
91% of CMO say they should use more customer data to
drive decision making, but 34% claims customer data are collected infrequently1
35% of CMO has a thorough understanding of how
customers interact with the company1
Leading Marketers are 2.6x more likely than peers to adjust real time offer based on context, delivering personalized messages across channels2
1 CMO Study, January 2014!2 State of Marketing 2013!3 Internet in a Minute, 2013!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The US mobile operator masters the art of customer analytics through calls data and
social sentiment mining to reduce churn rate
The leading sporting goods retailer in China captures through its web, mobile and social
media sites all personal and shopping data to launch precision-guided marketing initiatives
The Netherlands’ largest online retailer is grabbing the attention of browsers and
abandoners with a comprehensive behavioral retargeting program
A Hong Kong television broadcaster is using sophisticated analytics to analyze its station’s viewers, programs rating and greatly increase the effectiveness of its advertising promotions
Dutch bank ING Bank personalized marketing activities based on client data and online
interactions, and moved from campaign to continuous dialogue with customers
Luxottica, world’s leader of eyewear captures interactions across every channel on 100
million customers, to define highly segmented customer behavior for targeted marketing
initiatives
The US retailer uses advanced mathematical models to describe a customer’s behavior to
cluster customers based on motivation, engagement and buying behavior
At Petco browsing behavior provides visibility into the dynamics of online conversion,
helping the company to personalize consumer interactions
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The Japanese retailer adopted a multi-channel marketing platform to strengthen relationship
with its customers based on behavioral analysis
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO delights customers
§ Create personas and experience journey map that deeply understand and consider customer needs, drivers and emotions
§ Design tailored experiences that connect the company and like-minded customers
§ Create and automate in real time a system of engagement to deliver these personal interactions
§ Break down company silos, integrate channels
§ Build a system of shared valued and behaviors that focuses employee activity on improving the customer experience
the Better CMO…
36% of CMO have an integrated digital and physical strategy1
16% of CMO integrate all the touchpoints across all channels1
Leading Marketers are 5.6x more likely than peers to
use cross channels optimization technologies2 71% of positive customer experience translate into
loyalty, 65% lead to a product or service recommendation3
1 CMO Study, January 2014!2 State of Marketing 2013!3 Forrester North America Customer Experience Survey, 2011!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
Finnish retailer Hong Kong Department Stores builds an online e-commerce community
harnessing social networks to provide a richer consumer experience
The airline uses social media and apps to constantly dialogue with customers. Recently
KLM released a mobile app that allows passengers to give real-time feedback on how they perceived their experience at the airport
Ralph Lauren decided to implement a multi-channel commerce platform for the Asia
Pacific business, spanning online, mobile, contact center and brick-and-mortar
commerce
Wimbledon created an engaging and interactive experience across multiple digital
platform: latest news, scores, photos and tweets are always available and the fan can feel part of the actions wherever they are
David Jones is the first major Australian retailer to provide a true cross-channel
shopping experience. Customers can browse, buy, pick-up and return items via a
combination of channels including their phones, the online site and the physical store
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By gaining deeper insights into online customer behavior, the airline company redesigned the online web experience,
resulting in a 7% increase in online booking
The Italian brand re-invented the concept of store, designing an immersive experience
offering all the best from apparel to arts, from bookstore to cuisine
The outdoor apparel and equipment company is testing how cognitive computing can craft new approach to online store, designing a
system that conforms to people needs
By delivering excellence from product design to post-sale service, Technogym is bringing
wellness in our lives
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO nurtures the community
§ Tie community engagement to Company mission and values
§ View philanthropic investments as incubators for promising ideas and a mechanism for understanding both community and corporate needs
§ Define specific policies to institutionalize community engagement
§ Promote projects that are development
opportunities for both employees and the community
the Better CMO…
92% of “Millennials” believe that success should be measured by more than profit1
7/10 of US CEOs are developing strategies that support the company bottom line1
59% of Fortune 500 increased philanthropy between
2007 and 20122, and 91% of contributions are non cash2
1 The Wavemaker, Deloitte 2013!2 CECP 2013!!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
At Whole Foods, each store donates food to local food banks and shelters, and holds
community giving days where five percent of that day’s net sales are donated to a local
nonprofit or educational organization
In 2003, Vodafone teamed up with United Kingdom’s Department for International Development to bring mobile banking
services to rural Africa
Starbucks mobilizes customers and employees to be a catalyst for change in local neighborhoods. In 2012, during April’s Global
Month of Service, volunteers made a significant impact in with more than 2,100 community service projects in 33 Countries
With the “ Corporate Citizen Program”, IBM sends team of employees all over the world
to address community issues
American Express supports organizations that cultivate meaningful opportunities for civic
engagement for its employees and card members, whether as volunteers, donors,
voters or patrons
The Chinese restaurant chain is deeply involved in Community projects – in
celebrating great events and positive lifestyle, and in helping to make Shanghai and
Beijing better places, as part of the company mission to bring wellbeing to its customers
Through its “Framing Hope” program, Home Depots diverts excess inventory from landfills
into thousands homes and lives every year
The US retailer hosts “Kids Workshop” where children learn to make objects than can be
used in their homes or the communities
The Italian entrepreneur built its vision of humanistic company on the core values of
sharing beauty and work ethic with the community
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
LEADERSHIP!INNOVATION!RELATIONSHIP!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO builds new skills for a new world
§ Build an organization that operates like consultants, execute like scientists, enables the corporation
§ Consider to build the following capabilities:
- Marketing scientists mastering descriptive, predictive and prescriptive analytics
- Behavioral scientists, cognitive psychologists, social scientists, anthropologists, neuro-marketers
- Trans-media storytellers
- User Experience Architects, Design Thinkers
- Social media experts: advisers, architects, analysts, recipients, distributors, producers
the Better CMO…
82% of CMO feels underprepared for data explosion1
8% of CMO feel confident about the skills across all
the digital marketing areas2 40% of CMO are not able to find talent to handle
digital workload1
1 CMO Study, January 2014!2 State of Digital Marketing Talent, 2013!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Digital Media Department leads the creation, production, presentation, and dissemination of multimedia content to
support the viewing and understanding of the Met's collections
Coca Cola is much more a story factory than a beverage factory. From Santa Klaus on,
people want to see themselves in the stories Coke tells
Campbell's taps 'Neuromarketing' techniques to find why shelf displays left
some customers cold, ending up with altering labels
The US retailer is extensively using User Experience Architect to revolutionize retail
and champion design
Rugby Football Union uses predictive analytics to drive fan engagement and
deliver engaging, real-time insights into the ebb and flow of rugby games – helping to
introduce new fans to the sport
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Significant Objects, a literary and anthropological experiment, demonstrated
that the effect of narrative on any given object’s subjective value can be measured
objectively
A retailer in France uses analytics-driven behavioral segmentation to deliver highly
personalized messages that maximizes value at every touch
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The retailer is leveraging sales analytics collected at store level impacting the entire supply chain from product design to store
stocks
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The US fashion retailer adopted storytelling to communicate real examples of great
customer service from its employees
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO enables open, sustainable innovation
§ Break down organizational filters, internalize consumer influence
§ Leave room for others to co-create with you, providing a platform for open innovation
§ Explore and exploit new capabilities to help customers achieve their desired results where and when they want more quickly and efficiently
§ Pursue continuous innovation and experimentation § Design for sustainability, make sustainable product
count, actively promote a sustainable consumer behavior
the Better CMO…
1 C-suite Study 2013 2 DBMG poll 2009!3Sustainability’s Next Frontier, MIT Sloan Management Review, December 2013!4InnovationWorx, 2013!!
Outperforming organization are 1.6x more likely than peers to collaborate with their customers1
67% of US consumers agree it’s important to buy
products with social and environmental concern2
58% of companies rate social & environmental
issues very relevant sustainability concerns, yet only 39% of them reports their organizations are largely addressing them3
22% of companies declare innovation is hosed in
marketing4
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Australian brand of 100% plant based, chemical free, is committed to bringing its
customers the most ecologically sustainable home and personal care products
Nike ignites and drives sustainable consumption supported by a completely
redesigned supply chain and product development cycle
The automotive industry’s top-selling premium car company has a leading role in advancing
individual sustainable mobility
At Henkel sustainability drives innovation and product leadership. Each of the 750 company brands strikes for a balance of People, Profit,
Planet
Revolution Foods mission is to build lifelong healthy eaters by making kid-inspired, chef-
crafted food accessible to all
L'Oréal recently announced “Sharing Beauty with All” the cosmetics giant’s ambitious new
sustainability commitment to transform its footprint while achieving its business goals
The maker of outdoor gear and apparel is continuing its campaign to persuade
customers to buy less stuff.
Rewoolution makes outdoor apparel in pure Merino wool, 100% free of synthetic fibers.
Innovation, "green" sensibility and respect for local craftsmanship heritage work together
Nest reinvented a simple product, that is now driving innovation across multiple
dimensions, redesigning industries, value chains, and customer choice
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO leads by Design
§ Think systemically § Design products and services tapping
unexpressed customer needs and aspirations § Use design methods (such as visualization and
prototyping) to solve business problems
§ Disseminate core design practices in all departments to improve innovation across the entire business
the Better CMO…
1 Danish Design Center 2003!2 DMI design Value Scorecard Winter 2013!
40% higher increase in company revenue by incorporating design activity in the core company strategy1
Design-centric organization outperform the S&P Index
by 228%2
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
Design excellence is part of IBM’s DNA. Today, the IBM Design Studios are devoted to
infuse in everyday life technologies like mobile computing, analytics, and cognitive
systems
The Foundation developed a solution to help microfinance institutions to align product
portfolio to client needs, roll out new branches faster, reduce loan processing time
Rewriting the book on self-service, the Australian airline designed an experience
that combines the sensing of passenger data by well-placed kiosks and card readers within the terminal with an energized and versatile
corps of roving service agents
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Mayo Clinic pioneered the innovation of Doctor-Patient interactions by lunching a dedicated research and design-oriented
institute that studies the end to end processes of health care provision
P&G operates offsite design thinking workshops that bring together employees
from across the company to use design methods to solve real problems
Danish company LEGO has transformed the process of its design functions, streamlining
product development and disseminating core design practices in all departments to improve
innovation across the entire business
Apple embodies the concept of a business driven by design. Starting with the idea of an interconnected system managing any aspect of our communication, from sound to image.
When the best and brightest managers from GE they're stretched further over the two-week training as they're asked to describe their toughest problem in a haiku and draw
workflow and patient experience maps.
The focus on design-led innovation helped Philips Lighting to transform itself over the past decade from a company that pushed
products into the market into one that designs them with customer desires in mind
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
LEADERSHIP!INNOVATION!RELATIONSHIP!
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO delivers substantial business results
§ Project and track financial return of marketing investments
§ Focus on accelerating progress by identifying projects that will help get started and deliver short-term results and a transformative impact in the next 6 to 18 months
§ Link operational metrics to strategic objectives to financial performance, and drive ongoing interlock with Sales
§ Track Customer Lifetime Value
the Better CMO…
12012 BRITE-NYAMA Marketing in Transition Study!2 State of Marketing 2013!
37% of CMO do not mention any financial metric when discussing their results1
57% of CMO are not basing marketing budget based
on expected ROI1
22% of CMO are using brand awareness as the sole
measure to evaluate marketing spending1
Leading Marketers are 2x more likely than peers to
measure marketing based on Customer Lifetime Value2
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The largest Canada’s e-commerce marketplace, launched in 2012, is the fastest growing retails site in Canada, and amongst
top 10 most visited e-commerce sites
Cincinnati Zoo transforms customer experience and boosts profits
IBM Business Analytics creates more than $2.2 million in total benefits, delivering full ROI
within three months
By adopting customer analytics solutions, the Italian car maker Fiat increased response rate
to marketing campaigns of 20% and improved customer retention by 7%
The US media company adopted innovative web analytics solutions to improve click trough rates by 45% and increase page views by 92%
The US educational publisher adopted predictive analytics to shape personalized
marketing campaigned that generated 250% more sales than traditional mailing
By offering dynamically generated, highly personalized product recommendations, the US retailer increased cross-selling to 16% of
total sales
The US marketing firm boosted its revenue by 1.000% in less than 4 years by applying
sophisticated predictive analytics models to uncover trends across thousands of data
The outdoor retailer increased its revenue from product recommendations by 70% by engaging customers with timely, behavior
based during the selection process
One of the world’s largest hotel group, IHG by personalizing messages, down to the
individual hotel / customer, increased revenue per impression by 400% and revenue per
booking by 200%
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO simplifies the company
§ Lead by “subtracting the obvious and adding the meaningful” (John Maeda)
§ “Out of the clutter find simplicity” (A. Einstein)
§ Limit the information, engage the imagination
§ Design remarkably clear and unexpectedly fresh experiences
§ Re-engineer the company to deliver the promise (breaking down silos and integrating channels and content)
the Better CMO…
1 Global Brand Simplicity Index, Siegel+Gale, December 2013!2 2012 BRITE-NYAMA Marketing in Transition Study!
The “simplicity” stock portfolio outperform by 100% the average global stock index1
75% of consumers are more likely to recommend a
brand because it provides simpler experiences and communications1
51% of CMO lack of sharing customer data across
the organization2
For simpler experience, people would pay 4.4% to 5.4% more1
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The iconic fast-food restaurant gets high marks for speed and
convenience, but also for its accessible menu, transparent pricing and clear, concise
messaging
The Japanese retail company which sells a wide variety of household and consumer
goods, is distinguished by its design minimalism, emphasis on recycling, avoidance of waste in production and packaging, and no-
logo or "no-brand" policy
European-based discount supermarket retailer ALDI continues to enjoy extraordinary success. With more than 9,000 stores
worldwide and a brand that “focuses on the essentials” policy, that translates in 2 products
only for each category
By cutting out the clutter and paring it down into a streamlined app people could
understand and have fun with inside 30 seconds, Instagram reached two million users
in only four months, a rate of growth faster than Facebook and Twitter.
Toyota’s youth brand Scion xB model was made intentionally spare by leaving out
hundreds of standard features in order to appeal to the Millennial Generation, who are
prone to making personal statements by customizing their belongings
The introduction of the new “Simply Everything” plans was a key defining moment in the turnaround of the US telecom operator
Recognizing that consumers are struggling with complex financial products, the Chinese
financial institution Ping An brand promises to make managing finances easier
Baidu is the biggest search engine in China, and with the acquisition of 91 Wireless is now
entering the mobile search market
WeChat with its over 600 million registered users and the launch of open API policies is
the new marketing favorite of many enterprises
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Better CMO creates an authentic brand and culture
§ Develop an acute understanding of the company reputation by actively listening and engaging in social media
§ Systematically close the gaps between the company’s unique character and its reality—in all critical interactions
§ Champion tools that align the organization and social business platforms
§ Ensure that systems are in place to manage the risks of being a social business
§ Shelve the commercial pitch in favor of authentic
storytelling
the Better CMO…
1 Meaningful Brand Index, Havas Media, 2013!
20% of all brands are seen to meaningfully positively impact people’s live1
The Meaningful Brand Index outperforms the stock markets by 120% - as much as top hedge funds1
In Asia, people’s relationship with brands is stronger: people perceive that 39% of brands contribute notably to improve people’s quality of life and would care if 51% of brands disappeared 1
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
The Spanish financial institution ensures that its brand and its culture are authentically aligned by continually monitoring and
assessing reputational risk.
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Haier shifted its mindset from selling products to selling services and encouraged employees
to face the market directly. In doing so, it fulfilled its consumers’ needs for
customization and personal attention
Nongfu Spring Water is acting as enabler to well-being, enhancing daily lifestyles and contributing to community development
The Japanese electronic is still the brand that is engaging at best in creating emotional link with his customers in terms of “curiosity” and
“pride”
Nestlé ranked #1 for the social and environmental impacts amongst the world’s ten largest food and beverage companies
By living everyday on its own principles, Walt Disney was rated #1 in 2013 for Global Reputation and Most Loved Companies
The Chinese e-commerce company is building a strong reputation for trust – where “fakes”
and mistrust is part of the daily practice
The core values of Trust and Responsibility, Innovation That Matters for Clients and the
World, Dedication to Client Success are fully embodied in IBM culture and all the business
management practices
IKEA embodies the culture and the values of its founder, and the brand it’s recognized to be meaningful, accessible, and transparent
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shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
1. Know Your Customers As Individuals 2. Delight Your Customers 3. Nurture The Community
4. Build New Skills For A New World 5. Infuse Open, Sustainable Innovation 6. Lead By Design
7. Deliver The Bottom Line 8. Simplify The Company 9. Create An Authentic Brand And Culture
9 Imperatives for the Better CMO
shanghai | march 2014 | luca destefanis | twitter: @lucadeste!
Luca Destefanis @lucadeste