DAN Group survey with 1,000 CMOs reveals its challenges in the face of Digital Transformation
One of the findings of the study is that, with short-term pressures and budget cuts, CMOs are shifting their focus to make digital transformation happen.
Eight out of ten respondents acknowledge that it is imperative to transform business in the face of digital disruption and to take more responsibility for product and service innovation over the next two to three years. I give below a suggestion of approach as well as some data - the study is full of other clippings.
• Difficulties in securing long-term investments are cited as the main obstacle to marketing strategy (ranked as one of the top three concerns by 50% of CMOs) - followed by access to talent and different board priorities;
• Two-thirds (64%) say they expect to face even more pressure to show tangible short-term results.
Within a range of marketing capabilities, CMOs have been asked what they believe is most important to future success compared to their current ability to execute. The data show a relevant gap emerging between the two:
• 85% believe creativity is critical to future business success, 54% believe they are delivering well today;
• 83% identify the importance of seamless customer & commerce experience across all channels, yet only 60% believe they are developing this capability well.
• This discrepancy, however, is most pronounced in data management and analysis, where 84% identify these capabilities as important to future success, but only 49% feel confident in these capabilities today.
Short-term focus and declining investments create obstacles to transformation
The difficulty in securing long-term investments is cited as the main obstacle to marketing strategy (ranked as one of the top three concerns by 50% of CMOs) - followed by access to talent and different board priorities. In addition, two-thirds (64%) say they expect to face even more pressure to show tangible short-term results. Almost half of respondents have a marketing strategy that covers two years or less, reflecting a companies focus on short-term goals.
The decline in spending may be worsening these pressures. Globally, the outlook for the next 12 months is mixed: 41% of CMOs report budgets at stable or declining levels despite rising revenues (64% of respondents reported revenue growth over the same period). CMOs are having to strike a balance between long-term optimization, transformation and brand building as budgets come under even more pressure.