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Published on May 17, 2016
Just over 80% of marketing is reaching the wrong customers according to an Accenture global survey
Published in: Marketing
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1. Waste or Win? The Case for Just-in-Time Marketing
2. CMOs estimate that fewer than 20% of the people they reach are potential customers for the product or service being offered, according to an Accenture global survey of CMOs across industries. On a cost-per-consumer-reached basis, this represents an estimated hundreds of billions of dollars being misspent annually. It’s no coincidence that the companies most focused on reining in this waste are, consequently, also boosting the quality of their marketing—and enjoying stronger growth as a result. Waste. It’s a big problem for marketers… Wrong customers Right customers 80% 20%
3. Broad awareness campaigns are losing their luster, and contributing to waste. Fail to convert sales Target the wrong customers Become irrelevant fast
4. Done wrong, the pivot to personalized marketing experiences creates waste. Marketers attempt to leapfrog the necessary foundation building that is necessary to master personalized marketing at scale, and they are disappointed with the results. They cannot move beyond pilots and provide personalized experiences at scale without the right operating model and operational capabilities. Personalized Marketing @ ScaleScale Pilots Current Mature PERSONALIZED EXPERIENCES MARKETING OPERATIONS CAPABILITIES
5. -$11.6 billion Digital tools and technologies can be both a cause of and a cure for marketing waste. * Joshua Bellin and Paul F. Nunes, “Lean, Targeted, Digital: How to Gear Up for Just-in-Time Marketing,” 2015 Accenture.com/justintimemarketing More opportunities = More chances for missteps Some marketing organizations are wasting billions marketing to Internet bots posing as real consumers. One study puts the 2014 loss figure at $11.6 billion.*
6. Digital tools and technologies can be both a cause of and a cure for marketing waste. More channels = More silos within marketing organizations Digital marketing evolved as an isolated specialty area. Separation of talent, tools and work streams across digital and traditional marketing activities created unnecessary waste.
7. CMOS recognize the consequences of all this marketing waste. Less than half of CMOs are “very satisfied” with the value for money they receive from marketing efforts.
8. CMOS recognize the consequences of all this marketing waste. Don’t consider what is being advertised Do consider what is being advertised 80% 20% Fewer than 20% of the individuals will consider the product or services for what’s being advertised.
9. How can marketing organizations produce quality content that reaches the right customers? It is a practice rooted in lean manufacturing approaches that reduce unnecessary inventory by producing only what customers want, when they want it, always to precise specifications and superior quality. Just-in-Time Marketing can help marketers drive personalized marketing at scale and enable better operational effectiveness to focus only on marketing initiatives that can convert sales.
10. Just-in-Time Marketing can impact the bottom line. Accenture research shows that companies that excel at Just-in- Time Marketing are three times more likely than peers to report the strongest growth rates over one and three-year periods. Just-in-Time Marketers Everybody else Source: Just-in-Time Marketing CMO survey, Accenture 2015 1-year growth than peers % reporting greater than 25% 3-year growth than peers 40% 20% 30% 10% 30% 10% 38% 12%
11. Just-in-Time Marketers share important capabilities. Customer knowledge Channel capability Messaging agility
12. How can your marketing organization develop Just-in-Time Marketing capabilities?
13. A foundation for change. Start making these three things happen. 1. Transform the operating model 2. Support continuous planning 3. Measure results, and measure again Sponsorship and governance Processes and capabilities Technology and data management Organizational design and talent management
14. Companies around the world spent $600 billion on advertising in 2015. All of them have a choice to make for the future. What choice will you make? • Risk investments • Throw away resources • Wrong consumers • Miss opportunities • Reinvent marketing quality • Target resources • Right consumers • Convert sales Waste Win vs.
15. Rob Davis Managing Director Accenture Interactive email@example.com Joshua Bellin Research Fellow Accenture Institute for High Performance firstname.lastname@example.org Accenture.com/justintimemarketing Waste or Win? The Case for Just-in-Time Marketing Contact us For more information visit:
16. About Accenture Interactive Accenture Interactive, part of Accenture Digital, helps the world’s leading brands drive superior marketing performance across the full multichannel customer experience. Accenture Interactive offers integrated, industrialized and industry- driven digital transformation and marketing solutions. To learn more follow us @AccentureSocial and visit www.accenture.com/interactive. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. Copyright © 2016 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
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Expectations vs Experience: The Good, The Bad, The Opportunity
What do you mean when you say agencies will use new tech even when they know it will fail?
Fail to drive sales. Agencies are always looking for angles to win awards, and being the first one to the use a new technology is a great way to set yourself apart. The worst thing for an agency is being looked at as irrelevant. There are no rules that prevent agencies from funding the production by themselves if they want to. Aside from awards, it’s also for new businesses, for recruiting, for keeping employees happy and for the appearance of being innovative. The one thing it rarely does is reach a large audience or sell product.
Operational innovation means coming up with entirely new ways of filling orders, developing products, providing customer service, or doing any other activity that an enterprise performs.
The remaining 100 or so employees, despite working harder than before, enjoyed their jobs more. McCord and Hastings concluded that the reason was that they had held onto the self-motivated employees who assumed responsibility naturally. Office politics virtually disappeared; nobody had the time or the patience. “There was unusual clarity,” McCord says. “It was our survival. It was either make this work or we’re dead.” McCord says Hastings told her, “This is what a great company feels like.”
McCord also convinced Hastings that he should ask himself a few times a year whether he would hire the same person in the same job if it opened up that day. If the answer was no, Netflix would write a larger check and let the employee go. “If you are going to insist on high performance,” McCord says, “then you have to get rid of the notion of retention. You’ll have to fire some really nice, hard-working people. But you have to do it with dignity.
“When we were in the DVD business,” Hastings said, “it was hard to see how we would get to streaming.” Then it was hard to see how to go from a domestic company to a global one. And how to go from a company that licensed shows to one that had its own original shows. Now it knew exactly where it was going. “Our challenges are execution challenges,” he told me.
"Combining leadership theory with my newly acquired practical experiences, I have arrived at this: being a good leader boils down to performing certain tasks well. These tasks are to communicate, co-ordinate, be supportive, boost team morale and be target oriented.