Indeed, the landscape of marketing has become increasingly challenging.
Marketers demonstrated remarkable resilience in adapting to the unprecedented circumstances brought about by the pandemic. Despite facing numerous obstacles such as fragmented organizations, limited collaboration among partners, and reduced marketing budgets, they found innovative ways to engage with customers. While some achieved notable success, many are now grappling with the question of why marketing has become more challenging than ever before.
THE MARKETING MODEL IS BROKEN
Over time, marketing leaders have restructured their organizations with the aim of getting closer to customers, increasing agility, and maintaining control. Paradoxically, these efforts often resulted in the opposite outcome. Today, marketers find themselves operating in complex, highly matrixed environments, with CMOs shouldering responsibility for multiple areas of marketing. Additionally, the presence of specialized agency partners further contributes to the proliferation of silos, blind spots, and added complexity.
The vulnerabilities within the marketing model were exposed during the pandemic. As customer behaviors rapidly and unpredictably shifted, it became challenging for marketers to truly prioritize customer-centricity. Operating within a broken model while under pressure to drive growth, marketers were constantly required to achieve extraordinary results. This approach is ineffective, inefficient, and ultimately unsustainable.
However, rewiring marketing for improved performance and growth is a formidable undertaking. Leaders who seek to realign teams and agency partners must navigate this process while simultaneously fulfilling day-to-day marketing responsibilities. After all, attempting to change the landing gear while the plane is in flight poses significant challenges.
“A significant majority of consumers, approximately 79%, express that they tend to be more loyal to brands that employ various personalization tactics. However, an even larger percentage, around 77%, believe that businesses are falling short in their efforts to earn that loyalty.”
Examining the Noteworthy Examples
For marketers looking to initiate changes in their ways of working, determining where to begin and setting priorities can be a complex task. The ideal marketing operating model varies depending on the unique circumstances of each organization, and there is no one-size-fits-all solution or straightforward playbook to guide the transformation process.
However, our survey of senior marketing professionals worldwide has provided valuable insights into what sets apart winning brands from their competitors. We have identified a group of top-performing marketers who have achieved remarkable success. Over half of them have experienced double-digit revenue growth in the past three years, with just under half reporting double-digit profit growth over the same period. These marketers consistently outperform their peers in eight out of ten non-financial performance indicators across customer experience, innovation, technology, and talent.
The key to their exceptional performance lies in their distinct approach across five critical areas. By closely studying these standout organizations, marketers can gain valuable insights and make bold strategic moves to design their own marketing organizations that deliver outstanding results for both customers and the business.
Here are five effective approaches for marketers to achieve success:
Center your marketing efforts around a clear purpose and a deep understanding of your customers' needs and preferences.
In today's consumer landscape, customers seek brands that embody their own values and purpose. This customer-centric mindset places a strong emphasis on purpose, making it a key aspect of effective marketing. High-performing marketers understand this dynamic and place great importance on delivering experiences that are rooted in a compelling brand purpose. They intentionally structure their business around this purpose, ensuring that every aspect, from daily decision-making to the design of the operating model and choice of agency partners, aligns harmoniously with the brand's overarching purpose.
Place a significant emphasis on nurturing and leveraging right-brain talent within your marketing organization.
Modern marketing thrives when it combines the creative discipline of right-brain thinking with the analytical prowess of left-brain planning, process, and data science. Achieving the optimal balance between these two disciplines is a key focus for high-performing marketers. In fact, an overwhelming 70% of these marketers have extensively developed customer experience, data insight, and innovation skills within their marketing departments. They recognize that creativity, innovation, originality, and effective communication are among the top critical skills for future success. By prioritizing and nurturing these skills, these marketers position themselves for ongoing excellence in the evolving marketing landscape.
Effectively coordinate and integrate the capabilities of both humans and machines within your marketing operations.
Achieving agility in marketing execution relies on the successful combination of human expertise and technological capabilities. Top-performing marketing organizations understand the importance of this integration and are twice as likely as their counterparts to leverage process and workflow management technology effectively. They also demonstrate a higher success rate in automating marketing processes. Moreover, an impressive 73% of these top performers can confidently ensure that the outputs generated by automated processes and innovative technologies align with their brand values. This seamless orchestration of humans and machines allows them to maintain brand integrity while harnessing the full potential of automation and technology in their marketing efforts.
Secure a prominent and influential position within your organization by actively establishing marketing as a strategic partner at the decision-making table.
Marketing leaders, due to their strong connection with customers, deserve a prominent role in shaping the strategic direction of the business. Top-performing marketers excel in this regard, as evidenced by the survey results. They have a substantial advantage over their counterparts in influencing customer experience strategy (75% vs. 55%), sales strategy (74% vs. 57%), product strategy (71% vs. 51%), and other key areas. It is worth noting that 65% of these top performers actively participate in and influence the corporate strategy. This highlights the critical role that marketing plays in driving overall business success and underscores the importance of giving marketing leaders a seat at the decision-making table.
Revamp and transform spending mindsets within the marketing organization to align with strategic objectives and drive optimal outcomes.
Achieving success as a marketer does not necessarily require higher spending compared to peers. However, top-performing marketers exhibit a distinct mindset when it comes to allocating their marketing spend. They do not rely solely on historical expenditure patterns but instead assess current needs to allocate funds effectively. Furthermore, they foster a culture where everyone within the organization approaches financial decisions with a sense of ownership. A noteworthy 30% of these top performers have implemented a cost management culture, in contrast to only 16% among their peers. This shift in spending mindset enables them to optimize resource allocation and drive superior marketing outcomes.
Break free from the limitations of traditional ways of doing things and embrace a mindset of innovation and exploration in order to drive meaningful change and achieve new levels of success
The well-known adage that doing the same thing repeatedly and expecting different outcomes is considered as insanity holds true for many marketers. Despite their desire to align with the brand purpose and drive future growth, they often face challenges due to the existing structure of their organizations. Finding a quick and simple solution to these issues is not feasible. Therefore, it is imperative to initiate a fundamental transformation in the way marketing is approached and executed. This change will pave the way for overcoming existing obstacles and achieving the desired marketing objectives.
