Issuu on Google+

Chief customer advocate: How social data elevates CMOs

WHITE PAPER • JULY 25, 2012


Table of Contents Social data impacts decisions for nearly all CMOs

4

CMOs use data to drive smarter decisions beyond marketing

5

CMOs believe social reveals consumer sentiment and improves brand awareness 6 CMOs: Are you making full use of your social data?

7

Methodology

7


WHITE PAPER: Chief Destination Letterpress customer Wolf Millennials: advocate: American How How Apparel travel socialbrands Mixtape data elevates will SoywinCMOs young travelers’ loyalty

Customer centricity has become a priority for CMOs and CEOs alike 61% of CEOs now say that as a CEO, they must exhibit “customer obsession.”1 In a consumer-obsessed C-suite, the CMO is the chief customer advocate. And they’ve found their ultimate weapon in social data. Social gives consumers a voice, and brands glean real-time insights by digging into these first-person words and sentiments. This social data lets CMOs truly know their customers — and predict consumers’ future needs before they even have them. Nearly all CMOs now use this data to drive decisions. As the business world recenters around serving and delighting consumers, social data is turning CMOs into customer champions — and heroes within the C-suite. This study reveals the results of an online survey of 100 members of The CMO Club, which includes CMOs of business-to-consumer and business-to-business organizations. Most of these organizations are located in North America and many have global responsibilities.

Key findings • Social data impacts decisions for nearly all CMOs. Almost half of CMOs have used social data to make predictions or forecasts, and nearly nine in 10 say this data has influenced their decisions. • CMOs use data to drive smarter decisions beyond marketing. While marketing teams and agencies most often uncover the data itself, insights are used in product development, customer experience, sales, and C-level discussions. • CMOs believe social reveals consumer sentiment and improves brand awareness. CMOs are most confident in social data analysis of product/service sentiment, and in its impact on overall brand loyalty and awareness.

3


WHITE PAPER: Chief Letterpress customer Wolf advocate: American How Apparel socialMixtape data elevates Soy CMOs

Social data impacts decisions for nearly all CMOs

of CMOs who say social data affects at least one in every five decisions they make.

Social data reveals insights into consumers, products, and brands that traditional market research and focus groups can’t. Social is a real-time fount of consumer conversations, and analyzing this dialogue for trends lets CMOs and their teams craft effective, consumercentric marketing.

Social data can also hint at future consumer sentiment and campaign success. Nearly half (47.3%) of all CMOs have used social data to make predictions or forecasts, most commonly to project sales.

Nearly all CMOs (89.4%) say social data has impacted at least some of their decisions. This includes 21.3%

4


WHITE PAPER: Chief Letterpress customer Wolf advocate: American How Apparel socialMixtape data elevates Soy CMOs

CMOs use data to drive smarter decisions beyond marketing Many CMOs surveyed receive reports on social data from multiple teams inside and outside the organization. Agencies are most commonly responsible for reporting to CMOs on social data, according to 50.9% of CMOs. Marketing research teams (45.6%) and marketing communications (45.6%) are also responsible for reporting on this data. Brand management teams make the most use of social data, with 59.6% of CMOs saying this team accesses the data. But findings from social data are also useful

to many teams outside of marketing. Many CMOs indicated that multiple teams access social data, including sales teams (36.8%), customer experience and web design teams (36%), product management and development teams (35.1%). And this data drives discussions in the C-suite, elevating CMOs as owners of the brand-consumer relationship. Nearly all CMOs (97.3%) share findings from social data with other C-level executives at least annually. Most CMOs (67%) report to the C-level on social insights at least monthly, including one in four CMOs who share these insights every week.

5


WHITE PAPER: Chief Letterpress customer Wolf advocate: American How Apparel socialMixtape data elevates Soy CMOs

CMOs believe social reveals consumer sentiment and improves brand awareness Analyzing social data reveals a wealth of information about consumers and businesses — sentiment, demographics, individual influence, brand awareness, campaign success, and more. CMOs are most confident in social data’s effectiveness in analyzing consumer sentiment toward individual products and product lines, rating their confidence level 6.4 out of 10, on average. As a whole, 83.3% of CMOs believe social data is at least somewhat effective in indicating discernible trends or patterns that may impact the business —

sales forecasts, brand awareness, campaign success, share of voice, etc. And 77.9% find social data at least somewhat effective in analyzing influence of individuals or groups on the purchase decisions of others. In their future uses of social data, CMOs are most interested in identifying their customer influencers and advocates. When it comes to the actual impact of social, 82.3% of CMOs are at least somewhat confident that their brands’ social efforts have a measurable impact on brand awareness. That’s closely followed by the 81.5% who are at least somewhat confident that their social initiatives have a measurable effect on brand loyalty.

6


WHITE PAPER: Chief Letterpress customer Wolf advocate: American How Apparel socialMixtape data elevates Soy CMOs

CMOs: Are you making full use of your social data? • Are you analyzing your social data for trends, and using these trends to inform your predictions or forecasts? Take advantage of this real-time flood of consumer information to drive consumer-focused decisions on your team.

• Are you promoting social data across your entire organization? As CMO, you’re chartered with making your company truly customer centric. Spread social insights across your business to improve operations and decision-making for every team, and become a hero in the C-suite.

• Are you measuring your social efforts to track real-world success? Social initiatives are only as successful as you can measure. Beware vanity metrics like likes and followers. Focus instead on goals already driving your organization: sales, brand loyalty, awareness, etc.

Methodology behind Chief customer advocate: How social data elevates CMOs This study is based on an online survey of members of The CMO Club, comprised entirely of CMOs. For purposes of this survey, “social data” is any data collected based on consumer use of social. This includes interactions, connections, posts, comments, likes, retweets, and mentions by consumers via Facebook, Twitter, Google+ or other social platforms, as well as demographic, influence, and psychographic data from user profiles, behaviors, and network analyses. Social data also includes user-generated content including submitting product feedback, asking or answering questions in online forums, or participating in any online community. Over half (56.1%) of the brands represented have over $1 billion in annual revenue. Another 36% show $100-999 million in annual revenue, and 7.9% have annual revenue of $0-100 million. These brands are headquartered mostly in North America, and operate in the B2C (52.6%) and B2B (38.6%) spaces, with some CMOs identifying their brand as both B2C and B2B (8.8%).

1. IBM. Global CEO Study. 2012.

7


About Bazaarvoice Bazaarvoice, a leading social software and data analytics company, brings the voice of customers to the center of business strategy for more than 700 global clients including Best Buy, Costco, Dell, Macy’s, P&G, Panasonic, QVC, and USAA. Bazaarvoice helps clients create social communities on their brand websites and Facebook pages where customers can engage in conversations. These conversations can be syndicated across Bazaarvoice’s global network of client websites and mobile devices, which allows manufacturers to connect directly with customers. The social data derived from online word of mouth translates into actionable insights that improve marketing, sales, customer service, and product development. Headquartered in Austin, Texas, Bazaarvoice has offices in Amsterdam, London, Munich, Paris, Stockholm, and Sydney. For more information, visit www.bazaarvoice. com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.

About The CMO Club The CMO Club (TheCMOclub.com) was created for the unique purpose of bringing chief marketing officers together in a private, exclusive environment of openness and contribution that enables them to become better leaders, marketers, officers, and deal makers. Tailored exclusively to top marketing executives, this club hosts dinners and events, shares reports and research from leaders in the marketing industry, videos and CMO shows at www.cmoclub.tv, and leverages the first online community for “Heads of Marketing only” for sharing ideas, helping each other, and serving as a resource for CMO career opportunities. The CMO Club was founded in 2007 by seasoned marketing executive Pete Krainik and currently has more than 600 members worldwide.

Contact us: (866) 522-9227 bazaarvoice.com

© 2012 Bazaarvoice


Chief customer advocate: How social data elevates CMOs