SAN JOSE, Calif., Aug. 17, 2021 /PRNewswire/ -- As companies emerge from the pandemic, marketing and MarTech lie at the heart of the recovery. To optimize MarTech investments, marketing needs to have a very effective working relationship with IT that spans strategy, selection and management. Yet fewer than one out of four marketing organizations has such a relationship.
A new Chief Marketing Officer (CMO) Council report, produced in collaboration with KPMG LLP, entitled "Making MarTech Pay Off," covers critical aspects of the marketing-IT relationship, how they're structured and governed, what types of MarTech capabilities and outcomes they effectuate, and how marketers can take this relationship to the next level.
Only 23% of companies have "very effective" CMO-CIO working relationships
60% of CMOs in "very effective" relationships with IT have a multi-year strategic plan for MarTech, compared to 29% of CMOs in "effective" relationships
CMOs in "very effective" relationships with IT use an average of two innovation techniques, compared to 1.2 for CMOs in "effective" relationships
65% of CMOs in "very effective" relationships with IT regularly collect and distribute MarTech KPIs with insights and recommendations, compared to 36% of CMOs in "effective" relationships
48% of CMOs in "very effective" relationships with IT have an equal partnership, compared to 21% of CMOs in "effective" relationships
The urgency to unearth actionable data insights and improve the customer experience through MarTech has never been greater. Much of a company's future rests on revenue growth fueled by digital marketing and delivered by a technically savvy workforce. MarTech is fundamental to meeting both CMO and CIO objectives.
The report found that "very effective" CMO-CIO relationships produce a comprehensive and highly effective MarTech capability. This consists of planning strategically, integrating strategic considerations into tactical decision-making, solidifying strategic considerations through holistic participation in selection and management stages, and measuring performance broadly and regularly.
"CMOs in very effective relationships with IT, who get the most out of MarTech, also have the largest MarTech stacks and spend the highest percentage of their marketing budget on MarTech," notes Donovan Neale-May, executive director of the CMO Council. "These CMOs are more likely to be responsible for digital transformation, customer experience and revenue generation — the 'big three' — and play a larger role in the future of the company."
The best CMO-CIO relationships lead the charge in innovation, data-driven metrics, governance, and alignment and integration. These are often the very traits needed to enjoy a competitive advantage from MarTech, yield greater returns on investment, and provide a more satisfactory MarTech experience for employees and customers.
"The new CMO Council report shows that the majority of companies do not currently have an effective marketing – IT working relationship," said Jason Galloway, Marketing Consulting Practice Lead, KPMG LLP. "Presently, there is an urgent need for CMOs and CIOs to closely work together to maximize the return from MarTech, leading to necessary changes in innovation, data-driven metrics, governance, and alignment and integration. By doing so, companies can yield greater returns on investment, and provide a more satisfactory MarTech experience for employees and customers.
"At KPMG, we take a holistic approach to our clients' MarTech challenges, by building strong relationships between the CMOs and CIOs, and implementing models that encourage shared insights, planning, budgeting and innovation."
The report is based on a survey conducted this spring of over 200 marketing leaders across 12 industries, such as financial services, retail, healthcare, telecom, consumer products, technology and manufacturing. Additionally, we conducted in-depth interviews with executives at PayPal, Comcast, GE Healthcare, Salesforce (Tableau), Fidelity Investments, Autodesk, eBay, and more.
About the CMO Council The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council's 16,000+ members control more than $1 trillion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and its strategic interest communities include over 65,000 global marketing and sales executives in over 110 countries covering multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia Pacific, Middle East and Africa. The Council's strategic interest groups include the Customer Experience Board, Digital Marketing Performance Center, Brand Inspiration Center, Marketing Supply Chain Institute, GeoBranding Center, and the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE). To learn more, visit https://www.cmocouncil.org.
About KPMG LLP KPMG LLP is the U.S. member firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 146 countries and territories and has close to 227,000 people working in member firms around the world. Each KPMG member firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG LLP is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.