CMO's Road to Customer Centricity leads Down Digital Highway

Online marketing growth in 2008 is likely to match or exceed the record-setting growth experienced in

In the recently released Alterian survey of almost 900 marketers and providers of marketing services including systems integrators (SIs), agencies, and database marketing service providers (MSPs), a strong 84% of respondents plan to increase their online spend in 2008.

Similarly, in a recent survey conducted by BtoB Magazine, 2008 Marketing Priorities and Plans, the average percentage of the overall marketing budget spent next year on online marketing is predicted to be 33.8%, up from 26.5% in 2007. And according to Gartner 'Predicts 2008, CRM Investments Will Shift to Fuel Increased Return on Investment' (by Kimberly Collins et al, November 2007). "By 2011,15% of traditional media advertising investments will be redirected to building online customer experiences with established customers."

And despite some critics that attribute online growth rate to a growing number of smaller companies getting online with smaller budgets, the surveyed revealed a significant increase in larger online budgets of Sl million dollars or more.

However, the most interesting survey analysis was the identification of a concerning paradox for the CMO. The road to customer centricity appears to be heading down the digital highway. With increasing online budgets it seems the CMO can continue to rely on the agency to drive, as the survey also revealed agencies control most of the online spend in companies. However, the paradox emerges from the fact that database marketing and analytics is the most sought after skill by the marketing department today. Many agencies simply do not have these skills to offer the CMO.

This explains why CRM systems integrators and Database Marketing Providers with strong analytical skills are growing despite the decrease in many CRM functions and offline direct marketing spending. It seems that the online world needs database marketing and analytics as much as the offline world did. In fact, the need for database marketing and analytics is far greater than it has ever been, as this survey validated. The connected world we live in today is giving marketers access to more data than they have ever had. We know that this information can help our programs be more effective and critical in improving the customer experience. However, we also know that our competitors have access to the same information and channels.

The CMO's battle is in the trenches; turning the connected world, and the vast amounts of data it gives us, into value for both the company and the customer. The competitive war is less over product, price, promotion, and placement. Our connected world has turned those traditional strategies into commodities.

While what waits at the end of the marketer's journey may not be clear to us, this survey strongly indicates that the beginning of the marketer's journey has a definite starting line. Developing a strong competency in database marketing and analytics will not only make our online strategies (and increasing spend) more effective, but it could give the CMO their most competitive marketing weapon today.

The results of this survey clearly indicate that over the next 12 months agencies, MSPs and SIs offering online marketing services driven by an integrated database and analytics foundation, are likely to enjoy customer acquisition and retention success.

ABOUT ALTERIAN

Alterian helps marketers improve results through its enterprise marketing software platform and global partner community of over 70 leading marketing services providers, agencies and systems integrators. By combining database, digital, and operational marketing applications on a shared data infrastructure, the Alterian Marketing Services Platform makes it practical and cost effective for marketers to gain actionable insight and use this to execute an integrated marketing strategy across online and offline channels. Visit www.alterian.com for more information.