The 3 CMO imperatives: 1) Know your customers as individuals 2) Deliver value at every touch 3) Open-up to customer influence CMO Forum, Shanghai 2014

1. The CMO in a
Customer-Activated
Enterprise
Findings from the IBM Global C-Suite Study, 2013
LUCA DESTEFANIS
IBM, Asia Pacific
AmCham Shanghai CMO Forum
February 20th, 2014
© 2013 IBM Corporation

2. remember ?
4P? 1 !
2
© 2014 IBM Corporation

3. Understanding customers as individuals is becoming a key
priority area for all CxOs
Shifting Focus: Customers As Individuals
54%
33%
Focus on customers
as segments
Focus on customers
as individuals
Neutral
CxO predict to improve the level of customer
understanding in the next 3-5 years
High level of customer understanding drives
superior financial performances
35%
76
%
117
Today
%
more
35
%
76%
3–5 Years
3
Source: 2013 Global C-suite Study
29%
62
%
more
Underperformers
47%
Outperformers
© 2014 IBM Corporation

4. China Mobile leverages
customer data to offer
personalized
recommendations
➔ analyze user behavior to build profiles and
develop personalized service offerings
➔ recommend personalized applications on their
smart phones, and suggests the best device
for users when they are ready to upgrade
➔ build on user profile to extend customer
usage of VAS as well as carrier loyalty
© 2014 IBM Corporation

5. KNOW YOUR
CUSTOMERS
AS
INDIVIDUALS
➔ Instrument all the key touchpoints to gather the
right data about each customer
➔ Connects 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
5
© 2014 IBM Corporation

6. Focus on Customer Experience is not new. But still, the biggest
challenge for CMOs
Change of focus: Customer Experience Management
34%
CEO
41%
Today
CFO
CHRO
CIO
9%
13%
3–5 Years
29%
38%
28%
46%
75%
CMO
77%
Few companies have a fully integrated digital-physical
strategy
Focus on improving the customer experience drives
superior financial performances
31%
26%
more
Underperformers
39%
Outperformers
6
Source: 2013 Global C-suite Study
42%
%
29more
Underperformers
54%
Outperformers
© 2014 IBM Corporation

7. The North Face is bringing
online the in-store shopping
experience
➔ design the online customer experience
around customer needs
➔ bring online the expertise of the best personal
shopper through cognitive computing
➔ rather than forcing people to conform to
systems, create a systems that conform to the
ways people naturally process information
© 2014 IBM Corporation

8. CREATE VALUE
AT EVERY
TOUCH
➔ 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
➔ Creates and automates 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
8
© 2014 IBM Corporation

9. Leading companies are moving from being customer-centric to
being customer-activated
Shifting Focus: Organizational Openness
28%
52%
Operational control
Organizational openness
Neutral
Where CxOs want to include customers
Collaboration with customers drives superior
financial performances
New product and
service definition
82%
71%
Product/service testing
Customer policies and
procedures development
Business strategy
development
Pricing structure
development
Environmental and social
policies development
59%
33%
Today
9
Source: 2013 Global C-suite Study
75%
39%
72%
60%
43%
48%
90%
56%
50%
54
%
more
Underperformer
s
60%
Outperformers
3–5 Years
© 2014 IBM Corporation

10. Lego opens up to consumer
influence, enabling and
rewarding co-design
➔ bring Design out of the Design Department:
first across all company functions, and then out
of the corporate boundaries
➔ “Cuusoo” website engages consumers to
develop ideas for future Lego products
➔ Lego promises 1% of net sales to ideators
following idea commercialization
© 2014 IBM Corporation

11. OPEN UP TO
CUSTOMER
INFLUENCE
➔ 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
➔ Reward customers for co-designing with you
11
© 2014 IBM Corporation

12. 1. KNOW YOUR CUSTOMERS AS INDIVIDUALS
2. CREATE VALUE AT EVERY TOUCH
3. OPEN UP TO CUSTOMER INFLUENCE
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© 2014 IBM Corporation

13. Luca Destefanis
destluca@cn.ibm.com
m: 156 0192 5102
tw: @lucadeste
ibm.com/csuitestudy
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© 2014 IBM Corporation