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Copyright © Econsultancy @AshleyFriedlein
How should you structure
your marketing and digital functions
in a customer-centric world?
DMX Dublin March 2016
Ashley Friedlein
President, Centaur Marketing & Founder, Econsultancy
@AshleyFriedlein 2
Digital Transformation
• The journey towards being a
digital organisation
• “Digital” means:
– Focusing on the customer
experience irrespective of channel
– Having a digital culture
@AshleyFriedlein 3
The 7 defining characteristics of a digital culture
1. Customer-centric
2. Data-driven
3. Makers & Doers
4. Transparent
5. Collaborative
6. Learning
7. Agile
@AshleyFriedlein 4
“Organizations are structured
around control mechanisms
and reporting, not around
capabilities and outcomes."
“Organizing Marketing in the Digital Age”, Econsultancy, 2015
@AshleyFriedlein 5
How to organise?
@AshleyFriedlein 6
How to organise?
@AshleyFriedlein 7
How to organise?
@AshleyFriedlein 8
The rise of the Chief Digital Officer (CDO)…
Now 1,000+ CDOs globally and the number has
doubled every year for the last few years.
Gartner predicted 25% of businesses would have
a CDO by the end of this year.
According to the
CDO Club salaries
for a Chief Digital
Officer range from
$89,000 to
$600,000, with the
median falling
between $250,000
and $300,000.
@AshleyFriedlein 9
Bertrand Bodson
Chief Digital Officer
Home Retail Group plc
Mike Bracken
Chief Digital Officer
The Co-operative Group
Sean Cornwell
Chief Digital Officer
Travelex
@AshleyFriedlein 10
What I learned about CDOs
• ‘Ambassador’ CDO vs ‘Transformer’ CDO
• CDO + CMO not a great idea
• CDO runs marketing, digital/tech, product
• CDOs next job? CEO.
@AshleyFriedlein 11
…and the Chief Customer Officer (CCO)
Source: The CCO Council 2014 CCO Study
@AshleyFriedlein 12
Robin Terrell
Chief Customer Officer
Tesco plc
Robert Bridge
Chief Customer Officer
Telegraph Media Group
Chris Duncan
Chief Customer Officer
News UK
@AshleyFriedlein 13
What I learned about CCOs
• Strategic driver = competitive advantage through
customer-centricity and integrated channels
• Big teams and P&L responsibility
• CCO combines CDO and CMO roles
• CCOs have significant, if not complete, control of
technology, data, digital, insight, innovation. In some
cases customer service and, depending on company size,
all the physical (store, branch, call centre etc) operations.
• CCOs next job? CEO.
@AshleyFriedlein 14
The five stage of evolution towards true multi-
channel customer-centricity
5
Job done
CEO
(and CMO,
CTO, CFO etc)
4
Business
Transformation
Chief Customer
Officer
3
Digital Leader
‘Transformer’
Chief Digital
Officer
1 Digital Team
Head of Digital
2
Digital
Figurehead
‘Ambassador’
Chief Digital
Officer
@AshleyFriedlein
UK Government Digital Service
3.4
@AshleyFriedlein
Tate
3.7 • Published in 2013
• Third iteration of
digital strategy
• Published under
Creative
Commons
• “Digital as a
Dimension of
Everything”
@AshleyFriedlein
Capital One
3.9 • A bank creating
differentiated experience
through digital
• “Digital is who we are
and how we do
business.” Richard
Fairbank, CEO
• 100% agile adoption
@AshleyFriedlein
House of Fraser
4.1 • CCO with digital and
multichannel chops
• Head of “Find it”
• Head of “Research it”
• Head of “Buy it”
@AshleyFriedlein
Burberry
4.3
• A vision from 2006
• Financial and customer
success
• From the CEO throughout
the business
• Continual innovation
@AshleyFriedlein
“I will focus on … the
convergence and
integration of our retail
and e-commerce, digital,
card and mobile assets
around the world …
develop "next-generation
retailing"
Starbucks
4.6
@AshleyFriedlein 22 https://econsultancy.com/blog/66223-with-a-blank-sheet-what-organisational-structure-would-you-choose-for-marketing-and-digital/
@AshleyFriedlein 23
Q&A
