A Marketing Analytics Framework for CMOs

7/27/2019 A Marketing Analytics Framework for CMOs

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A Marketing Analytics Framework for CMOs 29 February 2012 ID:G00231661

Analyst(s): Kimberly CollinsVIEW SUMMARY

CMOs require insights into a large number of complex marketing processes to make key decisions

about execution and operations. A marketing insight team is required to build the analytical

framework that drives useful insights for CMOs and marketing leaders.

OverviewThis research provides a framework for best practices in applied marketing analytics to support chief

marketing officers (CMOs) and marketing organizations. Marketing analysis is complex and varied,

with data sources, analytics and metrics varying by each decision or process area that is under the

purview of the CMO or head of marketing.

Key Findings CMOs require a number of executional and operations insights to make marketing decisions that

drive effectiveness and improve efficiency.

Data sources are varied and do not lie solely in marketing or IT systems. Necessary data also resides

in IT systems external to marketing, and with external suppliers such as creative agencies,

marketing service providers and third-party data providers.

The required marketing analytics to support CMOs vary greatly in sophistication from measurement

and reporting through to predictive modeling and constraint-based optimization.

CMOs will not have the time or skills to perform all the required analysis.

Recommendations Create an analytical framework for each key decision or process the CMO needs to evaluate.

Assemble a marketing insight team to help plan and execute the required marketing analysis. This

will include input from the CMO and other marketing business leaders, as well as a team of

statisticians for general analytical skills and specialists for highly specialized analysis areas such as

pricing, media buying and lifetime value.

Establish a master data management strategy for managing the various sources of data.

Create a CMO dashboard with visualization capabilities for the synthesis of the combined analysis for

CMOs to obtain relevant and quick access to key insights.

AnalysisCMOs Need Information and Insight

CMOs are under tremendous pressure to be more accountable, measure marketing performance andoptimize the marketing mix. They need instant access to information and insight to make more

informed decisions, strategically plan and measure return on marketing investments. CMOs require

insights into both marketing execution and marketing operations.

Return to Top

ExecutionAnalysis of executional marketing processes informs the CMO how well they are executing on their

marketing strategy (see Table 1). Processes supported include:

Competitive intelligence

Creative advertising and media planning

Customer life cycle management

Customer program management

Event management Lead management

Market management

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Multichannel campaign management

Promotion management

Executional

Process and

Insight Areas

Decisions CMOs Must

Make

Information Sources

Required for Decisions

Analytical Capabilities

Required for Analysis

Analysis Feeds These

Business Apps

Customer Life

Cycle

Management

Identify customers and

customer segments to

acquire, retain, grow or

allow to leave.

Customer database or data

warehouse (e.g.,

demographic,

psychographic, life stage,

life cycle, profitability and product/service data)

Third-party customer data

(e.g., demographic, psychographic, lifestyle and

life stage data)

Transactional systems (e.g.,

interaction data)

Social media data

Customer segmentation

Customer profitability

analysis

Predictive modeling for

opportunity

Retention and attritionanalysis

Customer profiling and

psychometric analysis

Social analytics to

identify customer wantsand needs

Reporting and analysis on

customer segments or

targeted groups

(profitability, retention,

growth)

Marketing dashboards

and performance

management solutions

Campaign management

Contact center desktop

agent

Sales force automation

Operational data store

or customer hub

Customer

Program

Management

Identify customers for

retention, loyalty and

rewards programs.

Customer database or data

warehouse (e.g., profitability, loyalty,

rewards data)

Loyalty database or loyalty

providers

Transactional systems (e.g.,

interaction data)

Social analysis

Customer profitabilityanalysis

Predictive modeling for

retention and opportunity

Customer profiling and

psychometric analysis

Customer satisfaction and

loyalty analyses/indices

Sentiment analysis

Social media monitoring

Marketing dashboardsand performance


Loyalty systems

Campaign management

Contact center desktopagent



or customer hub

Customer advocacy

platforms (e.g., social

media or communities)

Multichannel

Campaign

Management

Determine appropriate

channels, execute high-

performing campaigns,

measure campaign

performance and optimize

campaign mix.

Campaign database (e.g.,

campaign type, channels,customer segments targeted)

Customer database (e.g.,

demographic,

psychographic, life stage,

life cycle, profitability,

product/service data)

Channel(s) data (e.g.,

customer response to

campaign data)

Third party customer data(e.g., demographic,

psychographic, lifestyle, life

stage data)

Marketing services providers (e.g., prospect

data or lists)

Transactional or interaction

data for event-triggering

Social media data

Customer segmentation

Predictive modeling to

identify opportunities

Modeling for event

triggers

Customer profiling

Campaign tracking and

measurement

Web/contact center

analytics for inboundmarketing

Campaign, channel and

offer optimization

Text mining for social

media



Campaign management

Contact center desktop

agent


Social media (e.g.,

Facebook, Twitter,

LinkedIn)

E-commerce

Email marketingservices providers or

systems

Direct mail services

Customer statements


or customer hub

CreativeAdvertising

Campaigns


media and content,

support media planning

and buying, execute

advertising campaigns,measure media and

campaign performance,

Creative agencies (e.g.,

creative costs, media buy

and performance

information)Interactive or digital

agencies (e.g., costs and

Media planning and

buying analytics

Media measurement

Media mix optimization


and performance


Media planning toolsAgency-based

solutions



Executional

Process and

Insight Areas

Decisions CMOs Must

Make

Information Sources





Business Apps

optimize media mix. performance data)

Media buying outlets (e.g.,

costs and performance data)

Internal advertisingdepartments (e.g., costs,

resource and performance

data)

Media data sources

Digital media (e.g.,Web, mobile and

social)

Search marketing

Promotions

Management

Develop, plan, execute

and measure promotionalactivities including in-

store promotions and

promotions via

distributors and other

partners.

Trade promotion systems

CRM systems

Marketing systems

Point of sale (POS) and

store systems

Market data

Promotion planning

Demand forecasting

Promotion measurement

Pricing analysis

Revenue/sales and marginanalysis

Pricing and promotion

optimization


and performance


Trade promotion

systems

POS systems


or customer hub

Market

Management


market opportunities

across various

geographies and

countries, plan and

execute market strategies,measure market success.

Market data (external or

internal)

Competitive intelligence

systems

Customer data warehouse

CRM systems

Transactional systems

Third-party customer data

Market analysis

Scenario simulation

Demand forecasting

Measurements of

customer acquisition and

revenue growth withinregion or country



Marketing resource

management (MRM)solutions

Operational planning

systems or corporate

performance

management (CPM)

solutions

Campaign managementsystems

Competitive

Intelligence

Determine primarycompetitors, develop and

execute competitive

campaigns, measure

competitive position.

Competitive intelligencesystems (e.g., competitive

data for market share,

revenue, customers,

marketing budgets)

Market data

Sales automation systems

Competitive analysis

Demand forecasting

Marketing dashboardsand performancemanagement solutions

Competitive

intelligence systems

Operational planning

systems or CPM

solutions

Lead

Management

Align marketing and sales

to develop a more

effective lead generation

and management program, and measure

lead process.

Marketing or campaign

system (e.g., leadgeneration, lead

qualification, lead routing

and lead close data)

Sales automation systems or database (e.g., conversion

rates and associatedrevenue)

Third-party customer or

market data (e.g.,

prospecting data or lists)

E-commerce and socialmedia (lead generation

sources)

Opportunity analysisLead scoring andnurturing

Lead prioritization and

optimization analysis

Lead process

measurement

Web analytics

Social analytics


management solutionsCampaign management


Contact center desktopagent

E-commerce

Email marketingsystems or services

providers

Event

Management

Develop, plan, execute

and measure physical and

online events.

Marketing systems (e.g.,

campaign and promotion

data; lead generation andqualification data)

Sales systems (e.g.,

conversion rates and

Event planning

Lead generationmeasurement

Lead close measurement

Revenue generation

measurement




Campaign management



Executional

Process and

Insight Areas

Decisions CMOs Must

Make

Information Sources





Business Apps

associated revenue)

Registration systems (e.g.,

interest, attendance, show

floor traffic)Social media data

Event resourceoptimization

Social media monitoring

and analysis for reactionto event

Table 1. CMO Insight and Analysis for Executional Processes

Source: Gartner (February 2012)

OperationsAnalysis of operational marketing processes inform CMOs of how well they are running their

marketing organizations, and how well they're optimizing the use of resources (budgets, people,

projects, content and assets; see Table 2). Processes supported include:

Financial management

Marketing content and asset management

Marketing fulfillment

Project management

Resource planning Strategic planning

Operations

Process and

Insight Areas

Decisions CMOs Must

Make

Information Sources





Business Apps

Financial

Management

Budget for marketing

campaigns and programs.Track and manage budget

forecasts, committed budgets and actual

expenditures.

MRM solutions (e.g., cost

and financial data, agency

spending, budget

information)

Marketing systems (e.g.,

campaign, promotion,

event and programs

planned)

Finance and procurement

systems

External agencies andvendors (e.g., supplier

costs)

Budgeting

Financial analysis

Budget resource

optimization


and performance


MRM solutions

Finance and CPM

solutions

Procurement systems

Integrated marketing

management andcampaign management

systems

Strategic

Planning

Develop strategic plans,and execute the

marketing strategy across

the entire marketing mix

of campaigns and

programs.

Align marketing goals

with business objectives.Measure marketing

performance, and

optimize marketing mix.

MRM solutions

Campaign managementsystems

Sales automation systems

Channel systems

Media buying outlets

Third-party market and

customer data

Product and transactionalsystems

Agencies and other

marketing vendors

Local marketing and

partners

Financial and CPM

systems

Operational systems

Sales systems

Scenario planning and

simulation

Forecasting

Measurement and

reportingMarketing mix

optimization

Operational and revenue

analysis for business goal

analysis

Return on marketing

investment analysis

Balanced scorecard

metrics


and performance


MRM solutions

CPM solutions

Integrated marketingmanagement and

campaign management

systems

Resource

Planning

Plan and allocate human

resources based onrequired skills to support

strategic marketing plan.

MRM solutions (e.g., cycle

time, time to complete

tasks, skills and team data)

HR systems (e.g.,recruiting, training, hiring

data)

Skills analysis

HR planning

HR optimization


and performance


MRM solutions

HR systems



Operations

Process and

Insight Areas

Decisions CMOs Must

Make

Information Sources





Business Apps

External agencies andvendors (e.g., work and

skills outsourced)


campaign management

systems

Project

Management

Manage marketing

projects from idea toexecution for programs,

campaigns, creative work

and product launches.

MRM solutions (e.g., cycle

time and task data)

Campaign management

systems (e.g., campaigns planned)

Agencies

Compliance and regulatory

systems (e.g., teammembers, reviews and

approvals tracking and

auditing)

Cycle time analysis

Alerting for overdue or

upcoming tasks

Compliance monitoring

and auditing



MRM solutions


campaign management

systems

Marketing

Fulfillment

Manage brand

compliance, measure

content usage and

effectiveness, andcustomize or localize

content.

MRM solutions (e.g.,

content usage andeffectiveness, template

usage, reuse data)

Local or field marketing

systems (e.g., usage data)

Partner systems (e.g., usagedata)

Agencies (e.g., cost and

distribution data)

Brand compliance

monitoring

Content usage analysis

Dynamic content

customization or

localization

Language and currency

translation analysis

Personalization


and performancemanagement solutions

MRM solutions

Sales force automationor sales content

management systems

Partner relationship

management (PRM) or

partner systems

Campaign management

Lead management

systems

Print vendor systems

Media outlets

Marketing Asset

and Content

Management Store and reuse content.

MRM solutions (e.g., percentage of content in

repository, content update

data, reuse data)

Digital asset management(DAM) or enterprise

content management

(ECM) systems

Agencies (e.g., cost data)

Asset and content reuse

analysis

Agency spendinganalysis



MRM solutions

DAM or ECM

repositories


campaign management

systems

Table 2. CMO Insight and Analysis for Operational Processes

Source: Gartner (February 2012)

Analytical Support for the CMOCMOs will require quick access to information and insights to inform them of marketing strategies,

executions and operations. However, most CMOs will not be able to spend time performing in-depth

or advanced analysis, nor would many have the required skill set for advanced analysis. Therefore,

CMOs will require support from others in marketing and IT to provide the necessary information and

insights for them to make critical decisions for marketing.

Support will be required from the following:

Vice presidents (VPs), directors and managers (direct CMO reports): Direct reports to the CMO need

to provide strategic input into their respective roles and functions within marketing. They will also

need to help define key performance indicators (KPIs), key analytics and required data from their

respective areas. These direct reports can include the directors, senior VPs (SVPs) or heads of

database marketing, creative advertising, digital marketing, social strategy, product marketing,

loyalty programs, competitive/market intelligence, event marketing, promotion management andcustomer value or life cycle management (see "How Analytics Helps Consumer Goods Brand

Managers With Marketing Mix Modeling").



Other business leaders: CMOs must work with other business leaders such as the CFO and heads of

customer service, sales, e-commerce and customer experience to align business goals and measure

marketing's objectives across business domains.

Analytical specialists: Specialists will be needed to perform analysis in highly specialized areas. These

may include customer profitability or lifetime value analysis, pricing, media planning, promotion

planning, market analysis, customer segmentation or profiling and demand forecasting.

Business analysts: A group of general Ph.D.-level statisticians may be required to leverage generaldata-mining and predictive-modeling tools to support varied analyses. These may include churn,

next most likely purchase, scenario planning, marketing performance management and marketing

optimization.

Return to Top

Sources of InformationOne of the biggest challenges for CMOs will be data fragmentation across silos within marketing,

within the company but external to marketing, and outside the company with partners, distributors,

agencies and other suppliers. A sound data integration and metadata strategy will be required to

ensure accurate, reliable and consistent analysis and derived insights. The CMO may want to have

the marketing operations director or another dedicated resource work directly with the CIO and IT to

develop a cohesive data strategy for marketing to support its analytical requirements.

Return to Top Analytical CapabilitiesA wide range of analytical capabilities will be required to support the CMO's insight initiative. These

range from basic reporting to predictive modeling and optimization. Marketing organizations must

ensure that they have the appropriate analytical resources available to support the following types of

analysis:

Data mining

Forecasting

Measurement and reporting

Optimization

Predictive modeling

Simulation

VisualizationReturn to Top

CMO DashboardThe marketing analytics team should work together to create the necessary insights for the CMO.

The marketing operations director or head of the business analyst group should work with the CMO

to create a dashboard the CMO can access to gain quick insights. This dashboard should provide

some level of visualization technologies, including point-and-click analysis (see "Twenty-Two CRM

Marketing Insights to Consider for the CMO Dashboard").

Return to Top

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A Marketing Analytics Framework for CMOs