How Data And Analytics Are Changing The Face Of Modern Marketing
Recently, I posted an interview conducted with Wes Nichols, the former CEO of MarketShare, on the ways in which data and analytics are impacting organizations (see here for the article and video). Below, I share Nichols’ interesting perspective on how these changes will impact the future of marketing.
Kimberly Whitler: Are there any significant challenges that will impact the CMO’s ability to effectively manage data and analytics in the future?
Wes Nichols: There are several: 1) lack of CEO understanding and sponsorship, 2) lack of CMO talent (this can be handled by hiring the talent), 3) challenge in finding the right analytics talent, 4) ineffective systems/data acquisition, etc. However, one of the biggest ones I want to mention is the problem I see firm after firm struggling with. They are bombarded with B2B vendors (typically technology/systems/software vendors) who promise extraordinary, magical tools; unfortunately, these B2B firms don’t have great awareness of the needs of the CMO. They’ve only recently turned away from calling on the CIO to start focusing on the CMO. The issue is that CMO’s often don’t have the skill—and there is nobody on their team that does either—to vet these B2B firms. And when you don’t have deep experience in technology, it can all sound very similar.
I’m seeing a “Generation 2” situation where many CMOs were burned by purchasing inferior solutions from “garbage suppliers” who overpromised and underdelivered. Many CMOs are realizing that they still need the solution—but that they picked the wrong company. The problem is compounded when a purchasing department gets involved and focuses almost solely on the low cost provider.
Two things are going to happen. First, there will be the inevitable shake-out of the posers and a better deployment of the right technology in the next phase. Second, CMOs will start making sure that they have a tech person on their team who is capable to distinguish the posers from the real-thing. Some are advocating for a Chief Marketing Technology Officer position but this is overkill and will create silo-based issues. All that the CMO needs is somebody who can distinguish fact from fiction.
Whitler: What does this mean for marketing in the future?
Nichols: The confluence of digital, data, and analytics is essentially causing a ripple effect. In the future, there won’t be the need for as many marketers on the client or agency side as more activities will be transacted automatically (instead of manually). It also means that economic incentives will change as companies will work to move away from silo-based measurement systems to ones which look at marketing activities in a more connected way will get to a better understanding of impact. It also means that firms will move away from the historically popular silo structure (marketing, sales, finance, etc.) to a center of excellence structure. So essentially data and analytics sophistication will impact how it is elevated to the management team, the structure, the processes, the approach, and the decisions being made.
