CONTEXT, COMMERCE + CUSTOMER - SAP Hybris · CONTEXT, COMMERCE + CUSTOMER Report ... In comparison...

CONTEXT, COMMERCE + CUSTOMER

Report | June 2016

© Copyright CMO Council. All Rights Reserved.

Best Practices to Exceed Expectations

CONTEXT, COMMERCE + CUSTOMER | Report

2© Copyright CMO Council. All Rights Reserved.

Introduction

Key Findings

Detailed Findings

About the CMO Council

About SAP Hybris

About SAP

CONTENTS

3

5

14

40

40

40



INTRODUCTION

Thirty-two billion dollars.

According to an IDC report, that is the amount of money that chief marketing officers will drive in marketing

technology spend by 2018. In comparison to the $356.7 billion that Gartner estimates the global spending

for enterprise software will be this year, $32 billion looks like a drop in the bucket. But for the marketer, the

influence and budget allocations specific to marketing and engagement technologies is sizable…and getting

bigger.

Yet year over year, we keep hearing that systems are being turned over or replaced. New investments are

being made into even newer systems with dangerously familiar-sounding names. Case in point: email. In the

CMO Council’s “State of Marketing” studies, the same question has been asked since 2007: What automation

solutions will you be deploying or redeploying in the coming year? Every year, email tops the list, with 47

percent of marketers indicating that email platforms will be the top system deployments heading into 2015.

The marketing technology stack is undoubtedly growing, but is the stack connecting and integrating into the

overarching technology infrastructure of the organization, or have we created yet another silo? An initial read

of the situation indicated that while marketing technologies were critical to business, marketers were quick

to admit they were not fully connected to other systems, let alone connected to the business strategy.

In a CMO Council report, 67 percent of senior marketers admitted that marketing technologies were very

important, if not essential, to marketing’s overall effectiveness and performance. But when asked how well

these technologies were reaching beyond the walls of marketing and aligning with other functional areas—

including sales, service, product and support—marketers had to admit that they had not quite reached

technology synchronicity with other stakeholders. Only 3 percent said technologies aligned very well while

the majority, 54 percent, said they were working on it.

Not only was technology not aligning cross-functionally, but marketers also admitted that their marketing

technology strategies were not yet fully aligning to the overarching business strategy. Yet again, marketers

were working on it, as 44 percent said plans were in motion. Only 16 percent said that their technology and

business strategies were in lock step.

So why does this matter? Clearly, this union of marketing and technology is steaming forward…to the tune

of $32 billion dollars by 2018. But as marketing “works on it,” the customer has already moved on, opting to

do business with brands that consistently connect and delight. Today’s customer, regardless of whether they

are a fast-moving consumer or a long-cycle business buyer, has expectations for connection, relevance and a

reflection of themselves in the experiences that organizations deliver. Fail to deliver, and the price paid is to

the bottom line.

The answer is not as simple as ramping up technology faster or even automating more of the engagement

process. In reality, marketing must look at the critical intersection when people, process and platform all

intersect. This is the point at which marketing becomes relevant—where it drives value for both company

and customer, and when technology stops being the difference and experience becomes the competitive

differentiator. This intersection is the confluence of context, commerce and customer, empowered and

enabled by marketing technologies, fueled by experiences and aligned with the customer.

Identifying and optimizing that alignment sits at the center of this research. This global initiative, undertaken

by the CMO Council in partnership with SAP, looks at the requirements of today’s marketing and commerce



landscape to understand what mindsets, technologies and strategies organizations must adopt to better

meet customer demands for always-on, always-accessible engagement across the entire customer journey.

Through an online audit, we examined how disconnects and deficiencies were impacting experience and

where and how analytics and customer insights could create more relevant, personalized and gratifying

experiences. We also made strides in understanding the impact that delivering contextual experiences

through individualized personalization should have on the business.

What we have learned is that despite marketing’s unwavering desire to deliver the best possible experiences

to customers—both online and off—gaps continue to plague even those with the best intentions. While

praise for preparation and individual campaign execution remains high, marketers have yet to truly reach a

state of delivering rich, contextual experiences to customers. While marketers are more clearly defining what

the customer experience is and should be, challenges across the organization threaten to derail even the

best-laid plans.

What follows in this report are the findings from an online audit of more than 170 senior marketing leaders

from around the world, which was fielded in the first half of 2016. Of the respondents, 47 percent hold a

title of Chief Marketing Officer, Head of Marketing or Senior Vice President of Marketing or Commerce,

with 27 percent overseeing complex global marketing teams of more than 100 people. Some 39 percent of

respondents hail from large enterprises with more than $1 billion in revenue, with 42 percent hailing from

business-to-business organizations, 21 percent from business-to-consumer companies and 37 percent from

hybrid organizations (business-to-business-to-consumer model).



KEY FINDINGS

Customers aren’t content to stay in a single lane, and marketers know it. While headlines love to predict

that customers are shifting from a wholly traditional engagement pattern to a totally digital one, marketers

are aware that the reality is far more complex. Nearly half (47 percent) of respondents indicate that their

customers engage across a multitude of channels, but when there is a problem, they pick up the phone and

want immediate human attention.

This immediacy of response, regardless of channel, tops the list of attributes that marketers believe are most

important to delivering an exceptional customer experience.

TOP ATTRIBUTES OF THE CUSTOMER EXPERIENCE

Fast response times to issues, needs or complaints (75%)

Consistency of experience across channels (56%)

Knowledgeable staff ready to assist whenever and wherever the customer needs (52%)

A person to speak with, regardless of time or location (36%)

Relevant communications, promotions, recommendations and products (36%)

While consistency in messaging and availability of service top the list, marketers are also aware that

maintaining multiple channels of engagement and experience is also vital. But it is this race to keep pace

with the growing expectations of the connected customer that is also marketing’s greatest challenge.

When asked to identify the single greatest challenge that organizations would tackle in order to optimize

the customer experience, 20 percent identified keeping up with expectations and demands of the connected

customer while 17 percent said they would need to focus on managing and fully leveraging the data being

collected.

Taking a deeper look into the key challenges being faced, it is worth noting that while all respondents are

facing issues around data and digital channel complexity, larger organizations are more often tackling

the data dilemma—or more specifically, managing and working to more fully leverage all of the data

being collected through an increasingly complex array of channels—as their top concern while smaller

organizations are still on the journey of upgrading and transforming technologies. But it is the midsized

company that has fallen into the ultimate gap between implementing technology and realizing opportunity

from data and analytics: transforming corporate cultures to maintain a steady view and commitment to the

customer.



TECHNOLOGY’S IMPACT ON THE MARKETING MACHINE

Marketing technology has left an indelible mark on marketing, transforming not just the way in which we

engage and connect with customers, but also the very fabric of how we operate, measure and accelerate

the business. According to 41 percent of executives, marketing and commerce technologies have increased

customer engagement by ramping up and accelerating the customer experience across all points of the

customer's journey.

These automation tools have also increased the ability to measure and track the performance of campaigns

and engagements, allowing marketers to improve individual initiatives in real-time, according to 42 percent

of respondents.

TOP POINTS OF IMPACT BY MARKETING & COMMERCE TECHNOLOGY SOLUTIONS

Increased measurability and trackability of programs and campaigns (42%)

Increased engagements across the customer journey (41%)

Automated processes and campaigns for fast deployment (25%)

Connected the engagement dots (25%)

Accelerated the rate of engagement at lowered cost (25%)

But even as one in four marketers believes marketing technologies have accelerated the rate at which they

can engage with customers while reducing costs, only 16 percent indicate that marketing technology’s

greatest impact has been driving revenue growth and bottom line health.

One indication as to why the bottom line isn’t directly being improved thanks to this massive digital

transformation is that, despite mass investments, these platforms and processes are still only moderately

aligned and connected outside of marketing’s own functional walls. Only 1 percent of respondents have

achieved alignment across all marketing and commerce processes. The majority, 51 percent, are somewhere

in the middle, with some processes between marketing and commerce moving seamlessly while others are a

work in progress. Another 24 percent admit they are struggling to connect all of the dots.

1% Extremely well: Working seamlessly in real time

3% Not at all: Total disconnect between marketing and commerce processes

21% Very well: All processes working together most of the time

23% Not great: Struggling to connect all of the dots

52% Moderately well: Some processes are seamless, others are a work in progress

HOW WELL ARE YOUR MARKETING AND COMMERCE PROCESSES WORKING TOGETHER?



Further, the majority of respondents (39 percent) admit that their investments, while meeting expectations

in some areas, are falling short in others. Only 5 percent believe investments have exceeded expectations

while some 8 percent say that their investments have been underwhelming as marketers are making

adjustments to get more value from their existing investments.

Despite the lukewarm review of technology value, marketers are still convinced that the time being spent

managing marketing technologies is bringing value to the organization. More than half (59 percent) say

that the time investment is adding value, but 42 percent of this group actually believes that there are still

efficiencies to be realized so that teams can spend less time managing the complexity.

Unfortunately, optimism can’t power transformation. While marketers have been focused on on-boarding

new platforms, the focus has been almost myopic, solely focused on connecting points of engagement

within the safety of marketing or commerce’s domain.

When asked how marketing and commerce technologies have extended marketing’s view into cross-

functional insights and intelligence, 55 percent admitted that they were only now working on implementing

new solutions to cross the functional divide. In fact, 17 percent admitted that they either didn’t know if this

connection was possible or already knew that this connection wasn’t going well or was nonexistent.

This disconnect has a direct impact on marketing’s ability to establish, manage and grow the total

customer relationship. Proof of this emerges when marketers share that, despite the reliance on and belief

in technology, their organizations had yet to develop processes specific to the care and fortification of the

customer relationship.

21%Not great - Processes are generally cumbersome and can get stagnant, especially as the business and customer get more digital and data driven.

13%Good - Our processes are well established, but we are continuously improving to help teams meet the needs of the business and the customer.

3%Excellent - We have agile processes that leverage real-time intelligence to shift to meet the needs of the customer and drive collaboration and transparency across the organization.

2%Does not exist - What is process? We struggle to get the entire organization on the same page.

1%Poor - Processes are holding back innovation and agility, making business in today's digitally demanding market difficult and sometimes frustrating.

55%Working on implementing new solutions

HOW DO YOU RATE THE ORGANIZATION'S PROCESSES SPECIFIC TO ESTABLISHING, MANAGING AND GROWING CUSTOMER RELATIONSHIPS?



MOVING TO THE FAST LANE

If digital transformation is an organizational journey, marketing and commerce executives are clearly saying

that they are entrenched in the middle lane—not quite lagging but certainly not taking strides toward

excellence. Making this issue even more complex (as well as more urgent to resolve) is the reality that

marketers are becoming aware that while they may be drifting between lanes, the customer has raced

ahead in the pace car, constantly setting new expectations and eagerly seeking out experiences that cross

industry lines (for example, the B2B customer that now expects a seamless, personalized experience similar

to the one they experience through their favorite retailer) and raise the experience bar higher with every

touchpoint.

So what needs to happen to move the customer experience needle from “just getting by” to “exceptional

every time?” And how can marketers ensure that their organizations will not be left behind? First and

foremost, a data mindset shift must occur. According to survey respondents, the majority of data, analytics

and intelligence being captured and gathered resides within traditionally available marketing-involved

channels.

TOP SOURCES OF DATA & INTELLIGENCE BOTTOM SOURCES OF DATA & INTELLIGENCE

1. Contact-level data (81%) 1. Real-time predictive (machine learning) (8%)

2. Campaign data (69%)2. Commerce data (in-store, e-commerce behavior, cart behavior, order history, etc.) (11%)

3. CRM system data (68%)3. Psychographic data (lifestyle, behaviors, attitudes, sentiments, values, opinions, etc.) (12%)

4. Billing/payment data (50%)4. HR insights (team, talent and resource allocation) (13%)

5. Sales data (49%) 5. Predictive analytics (batch-based analytics) (16%)

Not only are data and intelligence sources limited in scope, but the data that is being aggregated is not

being fully utilized. Thinking of the totality of data that is being collected across the organization, 24 percent

of respondents estimates that only 25 to 50 percent is being leveraged in real time for actionable customer

insights. The data utilization leaders (only 13 percent of respondents) say that 75 to 100 percent of their data

is transitioned to real-time intelligence.

To be fair, nobody is truly winning this real-time intelligence race, regardless of the resources that

organizations are able to put behind systems and teams. Within large organizations ($1 billion or more in

revenue), 21 percent leverage between 25 and 50 percent of collected data while 39 percent use less than

24 percent of all of the data being collected. Smaller organizations (with revenue under $100 million) also

struggle to fully utilize data resources as 20 percent are using between 25 and 50 percent of data while 34

percent use less than 24 percent of their data.

What is behind the data waste? It would be easy to blame the data itself, and many do point to data

complexity and velocity as core concerns. But it is not the greatest challenge that is holding teams back

from being able to more fully utilize data for customer insights.



TOP CONSTRAINTS TO TOTAL DATA UTILIZATION

Data is trapped in organizational silos (21%)

The problem isn’t data…it’s getting the organization on board (20%)

Too much data to manage effectively (20%)

Data is messy (12%)

Adopting an organization-wide data and analytics strategy (9%)

Organizational silos—those same silos that have protected marketing’s quest to rapidly adopt and deploy

engagement technologies and secure its myopic view of the customer—emerge as the top challenge that

executives are looking to overcome, quickly followed by the mass and mess of data across existing systems.

Marketers have also fallen prey to optimizing by channel, seeking out best-of-breed solutions by channel,

only to create a random patchwork of automation solutions that pull together more of a “spaghetti”

technology landscape.

But interestingly, two top concerns that marketers identified are likely at the root of why these silos exist:

the organization failing to adopt a holistic, organization-wide data and intelligence strategy and not having

the right people and processes to turn data into actionable fuel for the organization’s customer experience

strategy.

CONTEXT LOST: THE COST OF STAGNATION

Study after study from the CMO Council continues to point to stagnation when it comes to customer experience, data and advancing digital transformation. Marketers are "working on it." Many say they are "getting there" or are "still implementing systems." Meanwhile, the customer is moving on. What is at stake should this still water continue to rest? The very context that today’s connected customer demands as a baseline value for their business.

When asked to define what a contextual experience is, marketers point to an experience that is:

• Based on past action and behavior

• Agile and delivers an experience in the channel of the customer’s choosing or preference

• Fast and delivers value by addressing immediate needs, questions or concerns

• Aware of who the customer is and recognizes that customer’s value and rewards their loyalty

But marketers are simply not delivering contextual experiences in real time to their customers, regardless

of channel. In fact, only 4 percent of respondents are powering every interaction in every channel with rich,

real-time, personalized experiences. More than half of respondents (54 percent) are very aware that they are

not delivering contextual experiences, with 23 percent of this group saying that they are not only failing to

deliver, but they are also a long way from success.



Interestingly, it is the largest enterprises who are farthest away from reaching contextual marketing

engagements as 68 percent of large enterprise executives say they are not yet delivering, with 31 percent

admitting they are a long way away from success. In contrast, small organizations with less than $100 million in

revenue (who also earlier admitted they are still on-boarding many of the technologies needed to amass large

data stores) feel they are closer to success, with 26 percent saying they are delivering contextual experiences,

albeit only in digital channels, and 43 percent admitting they are not delivering these rich, personalized

engagements.

Not only are organizations not meeting their customers with contextual experiences, but they are also not

employing bi-directional engagement. In the rush to engage, organizations are not fully honing their listening

skills. Thirty-eight (38) percent of respondents admit they are doing a poor to horrible job of listening, being

either inconsistent in where and how they listen to customers or simply unable to listen across any channel.

Even more troubling is that these marketers admit that even if they were able to listen and collect this data,

there is little they could do to turn that raw voice of the customer into action.

There are some organizations that are on the path to great listening practices, with 23 percent saying they are

doing a very good or excellent job. But the majority of respondents, 39 percent, are just doing an okay job,

admitting that while they are excelling at listening programs through marketing-owned corporate channels,

they are struggling to integrate insights from across the organization, including those from service, support,

sales and other external listening touchpoints.

Predictably, as executives have largely confined customer listening initiatives (i.e., those programs designed

to collect the voice, sentiment, satisfaction and intention of the customer) within the silos of marketing

and commerce, the impact of these programs has largely benefited marketing campaign and engagement

decisions (for example, 44 percent of marketers say that the top impact of customer listening programs has

been guidance in content, channel and engagement decisions), with far less insight being shared across the

organization.

23%No, we are a long way from being able to deliver contextual experiences in real time.

20%Almost there; we're getting systems, data and analytics in place.

4%Yes, every interaction channel is powered by intelligence-driven, real-time, personalized experiences.

30%No; a strategy is in place, but we are still struggling to align intelligence, content and channels with the customer.

23%Yes, but only in select digital channels.

DO YOU BELIEVE YOUR ORGANIZATION IS CURRENTLY DELIVERING CONTEXTUAL

EXPERIENCES IN REAL TIME TO CUSTOMERS, REGARDLESS OF CHANNEL?



TOP IMPACTS OF LISTENING INITIATIVES

Guided decisions around content, channels and engagements (44%)

Deepened relationships by creating new conversations with customers (42%)

Improved results and return on marketing campaigns (32%)

Helped the entire organization better understand the customer (30%)

Created new products, services or solutions to meet customer needs (28%)

It is worth noting that, as outlined earlier in this report, executives believe that rapid response to issues and

the ability to head off problems or concerns were top requirements of an exceptional customer experience.

However, when asked how listening programs were impacting the business, only 25 percent indicated

that customer listening has enabled fast troubleshooting to head off issues before they become customer

problems, and only 19 percent have leveraged listening as a contributor to reducing customer service and

support costs thanks to proactive assessment of customer needs.

THE CALL FOR A NEW CUSTOMER ECOSYSTEM

Customer experience is neither executed nor owned by a single function within any organization. It is a

strategy that must be understood, embraced and managed across every facet of the organization, down to

individual contributors, regardless of functional group or team.

With the pace of engagement innovation being set by customers themselves, organizations must rethink

and realign around a new customer ecosystem that sets specific strategies and shared visions for everything

from listening to data and intelligence. Without this, no amount of new technology will advance the success

and impact of the customer experience.

One example of where this new customer ecosystem must rally support in order to thrive is in the application

of new technologies and innovations that sit just on the horizon. Big data-driven engagements, including

smart recommendations and predictive models, are top of mind for executives as 61 percent of respondents

say these technologies will make the biggest impact on the business.

TOP EMERGING TECH INNOVATIONS THAT WILL IMPACT BUSINESS

Big data-driven engagements (61%)

The internet of things (37%)

Digital dexterity (28%)

Mobile payment (24%)

Neuroscience/neurobusiness (18%)



But just below data sits a raft of new interactive experiences that will demand cross-functional alliances and

partnerships in order to execute, integrate insights and deliver measurable (i.e., profitable) results for the

organization. Chief among them are innovations specific to the internet of things, which holds the promise

of expanding customer engagement beyond traditional channels. These are technologies that will open not

only new avenues of listening, insight and understanding of the customer, but also new business models—

including subscriptions, auto-renewals and recurring orders.

The reality is that executives are well aware that, despite the excitement and hype over new technologies,

they might not be fully prepared to on-board these innovations. Only 11 percent of respondents say they are

ready and eagerly awaiting new technologies and engagement channels. Most (34 percent) are ready but

admit to having reservations. Another 32 percent feel they are still preparing and getting ready with systems

and processes.

Budget isn’t the roadblock—at least not the primary one. Organizational support is also not to blame when

it comes to the ability to on-board new technologies. Executives believe that the single most pressing issue,

according to 31 percent of respondents, that is a blockade to on-boarding and integrating technologies is

having the right team and talent to manage and optimize these new tools. It comes back to people, making

the previously noted loose connection to insights and data from HR a troublesome pattern.

Marketing and commerce have a unique opportunity to spearhead the development of this new customer

ecosystem. The building blocks of the ultimate customer squad are already in place as respondents indicate

that the top departments and external partners are already embedded into the customer data value-chain,

including sales, support/service, digital, analytics and operations. But to truly transform, new partnerships

and alliances must be struck, bringing new insights, intelligence and skills to the table.

ON THE #CUSTOMERSQUAD NEW #CUSTOMERSQUAD RECRUITS

Sales (80%) Store operations (12%)

Customer support/service (71%) HR (13%)

Digital (63%) Supply chain (26%)

Operations (57%) Fulfillment (27%)

Analytics (56%) Channel (28%)

As we aggregate the internal corporate front-line touchpoints, it is time to embrace the insights and

intelligence that can be added from critical resources—from HR to supply chain. Silos will be the deathblow

to stellar experience. While cultures shift and operations align in the slow lane, the customer is already

embracing innovations, from IoT to cognitive computing, and expecting smart recommendations across all

digital channels.

The new customer ecosystem demands new cultural imperatives and mindsets, new attitudes and

strategies around data, intelligence and the application of insights, and a renewed commitment to a focus

on customers and not just campaigns. The conversation of the one-to-one customer dialogue will soon be

replaced with the mandate to deliver rich contextual experiences at every opportunity.



The real difference will be that this new mandate is one that is being issued by the customer versus senior

leaders, stockholders or pundits. Customers are rewarding and will continue to reward organizations that

heed the mandate, and they will punish those who fail to meet the expectation by taking their business

elsewhere.

The upside to this new customer-driven era is that every organization already has the raw building blocks for

success, tucked behind functional silos and departmental barriers. Once the new customer ecosystem has

been identified, applying new technologies and advancing innovations that will empower both internal and

external customers should come swiftly, with higher return and value and with perhaps less aggravation.



CUSTOMER ENGAGEMENT

How do your customers prefer to engage with your organization? (Select one.)

46%

Our customers engage across a multitude of channels, but when there is a problem, they pick up the phone and want immediate human attention.

7%

We are not quite sure; we don't have a clear map of where and how our customers prefer to engage.

4%

Our customers are traditionalists; brick and mortar, live, traditional experiences only, please.

4%

Our customers are totally digital and are often early adopters of new technologies, channels and ways to engage.

25%

Our customers connect through an increasingly complex blend of online and offline engagements.

15%

Our customers are highly selective and have a distinct sense of why they choose specific channels to engage for specific needs, regardless of whether those channels are online or offline.

DETAILED FINDINGS



Fast response times to issues, needs or complaints

Consistency of experience across channels

Knowledgeable staff ready to assist whenever and wherever the customer needs

Clear, consistent messaging and information across channels

A person to speak with, regardless of time or location

Multiple touchpoints that add value to the customer

Readily available, multi-channel information

Relevant communications, promotions, recommendations and products

Fast, easy-to-use tools and service options

Rich, robust, value-added content to engage, enrich and excite

Multiple online and offline channels of engagement

Recognition and view into the customer's history with brand at every touchpoint

Opportunity to discover new products, solutions or services

Rewards for customer loyalty and longevity with a brand

Social communities and networks to connect with other fans or customers

Always-on automated service options

75%

55%

52%

46%

37%

28%

26%

25%

23%

21%

21%

19%

17%

9%

9%

4%

What do you believe are the most important attributes and elements of the customer experience to your customer? (Select top five)



Thinking about your strategies for customer engagement this year, what is the single greatest challenge your organization will tackle in an effort to optimize the customer experience? (Select one.)

11%

Aligning resources and cross-functional support across the organization

19%

Keeping up with expectations and demands from the connected customer

4%

Correctly allocating budgets to maximize impact

5%

Bringing on or up-skilling teams to become data, analytics and engagement pros

17%

Managing and fully leveraging the data being collected through all engagement channels

12%

Upgrading and transforming technology to deliver the best customer engagements

11%

Effectively measuring the business impact of our customer experience investments

8%

Identifying the right

technologies that we need to best listen, analyze and react to customer demands and expectations

7%

Empowering agility and innovation while still keeping an eye on the bottom line

6%

Making shifts and improvements to our corporate culture to maintain a steady view and commitment to the customer



THE STATE OF ENGAGEMENT TECHNOLOGY

How have marketing and commerce technology solutions most impacted your business? (Select top three)

Increased the ability to measure and track the real-time performance of campaigns and engagements, improving individual efforts in real-time

Increased engagement through the customer's journey, from discovery to purchase to advocacy and loyalty

Connected the engagement dots, taking loosely connected campaigns and creating trackable, connected customer experience journeys

Accelerated the rate at which we can engage with customers while reducing costs

Automated marketing processes and campaigns are enabling fast deployment and measurement of campaigns like never before.

Made some processes more trackable and transparent while making others more complex and cumbersome

Simplified the process of launching, promoting and merchandising new products and services

Driving revenue growth and bottom line health

Enabled us to expand into new markets and deliver exceptional experiences around the world

Slowed down projects due to technology complexities or system failures

Increased operational costs as we have brought on more talent to manage complex systems

Drained budgets with costly investments that have yet to pay off

41%

41%

26%

26%

25%

24%

23%

15%

14%

11%

9%

8%



How well are your marketing and commerce processes working together?

21%

Very well: All processes working together most of the time

52%

Moderately well: Some processes are seamless, others are a work in progress

23%

Not great: Struggling to connect all of the dots

3%

Not at all: Total disconnect between marketing and commerce processes

1%

Extremely well: Working seamlessly in real time



How would you rate the investments you have made to date in marketing and commerce technology solutions?

40%Met our expectations in some areas but let us down in others

4%Complicated processes and engagement activities to the point of paralysis

1%Failed to meet our expectations or live up to any of the promises made by the vendor

29%Too soon to tell, but we are hopeful

12%Well worth the budget, meeting all expectations and vendor promises

8%Underwhelming results, but we are making adjustments in the hopes of getting more value

5%Exceeded expectations and opened doors to new opportunities



Thinking of the marketing and commerce technologies you have already implemented, are there any gaps you will look to fill in the coming year? (Select all that apply.)

Predictive analytics

Campaign management and measurement

Personalization

Marketing performance measurement

Content management system

Social listening and intelligence

Service/support data integration and management

Community building, management and engagement

Marketing resource management

Product content management

AdTech solutions, including programmatic buying

Order management

Billing and revenue management

Machine learning/cognitive computing

Promotion

Configure price quote (CPQ)

Merchandising

Core commerce platform

Other (please specify)

47%

45%

40%

39%

34%

32%

23%

21%

16%

14%

12%

10%

10%

9%

9%

7%

6%

4%

3%



Do you believe the time being spent (by marketing, commerce and IT teams) on managing marketing and commerce technology is valuable to the organization?

Yes, but there are efficiencies we should achieve to spend less time managing the complexity.

I am somewhere in the middle; some of the time is of great value, some is a waste.

Yes, any amount of time we spend managing technology is critical to the business.

No, we spend too much time managing complex systems, and it takes away from time that we should be acting and executing.

No, we are not able to keep up with the pace of change and are constantly managing new solutions and upgrades.

Not sure, we have not tallied the total time marketing, commerce and IT must spend managing these technologies.

Don't know.

43%

28%

17%

6%

3%

3%

1%



How well have you extended your marketing and commerce technologies to extend marketing's view into insights and intelligence while embracing other departments and functional areas, including sales, customer service, support, product development, store operations, channel management, etc.?


26%Pretty well

13%Not very well

2%Not sure

2%Extremely well 1%

Not at all



21%Not great - Processes are generally cumbersome and can get stagnant, especially as the business and customer get more digital and data driven.

13%Good - Our processes are well established, but we are continuously improving to help teams meet the needs of the business and the customer.

3%Excellent - We have agile processes that leverage real-time intelligence to shift to meet the needs of the customer and drive collaboration and transparency across the organization.

2%Does not exist - What is process? We struggle to get the entire organization on the same page.

1%Poor - Processes are holding back innovation and agility, making business in today's digitally demanding market difficult and sometimes frustrating.


How do you rate the organization's processes specific to establishing, managing and growing customer relationships?



What type of data, analytics and intelligence is captured and available to your organization? (Select all that apply.)

Contact-level data (name, address, zip, email, etc.)

Campaign data (clicks, views, likes, opens, etc.)

CRM system data

Sales data (account status, actions, engagements, lead scoring, etc.)

Billing/payment data (including billing status, payments, subscriptions, etc.)

Broad demographic data (market size, socioeconomic insights, trends)

Customer satisfaction feedback

Location-based data

Social listening intelligence

Search data

Content consumption data

Supply chain insights (inventory, delivery status, etc.)

Service/support data (contact center, phone center, email, click to talk, etc.)

Third-party data and insights (weather, shopper data, etc.)

Channel partner data

Predictive analytics (batch-based analytics)

HR insights (team, talent and resource allocation)

Psychographic data (lifestyle behaviors, attitudes, sentiments, values, opinions, etc.)

Commerce data (in-store intelligence, e-commerce behavior, cart behavior, order history, etc.)

Real-time predictive analytics (machine learning, cognitive computing)

81%

69%

68%

50%

50%

49%

49%

44%

38%

36%

35%

26%

26%

23%

18%

16%

13%

13%

11%

8%



Thinking of the totality of data being collected across the organization, what percentage is actually being integrated and harvested on a real-time basis for actionable customer insights and intelligence?

24%25% - 49%

1%100%

21%50% - 74%

12%75% - 99%

10%Don't know

18%10% - 24%

14%Less than 10%



What has been the greatest challenge to fully utilizing and harvesting data for customer insights?

21%Data is trapped in organizational silos outside of the marketing organization.

2%Tools to manage big data are too complex and costly for the organization.

1%Data is trapped in silos within the marketing organization.

1%Accelerating the process to enable real-time intelligence at scale

6%Organizational support to mine new points of intelligence for a more robust view of the customer

20%Too much data to effectively manage, analyze and turn into action in real time

19%The problem isn't data; it is getting the organization to bring on the people and processes we need to turn data into actionable insights.

12%Data is messy - Getting to a state of clean data to reach usable insights has been difficult.

9%Adopting an organization-wide data and analytics strategy to help guide needs and priorities

8%Budget to invest time, resources and technology to simplify the massive stores of data collected



CUSTOMERS, CONTENT AND CONTEXT

What are the most important characteristics that make a contextual experience for your customers? (Select top three)

Rapid response to customer actions, questions or exchanges

Delivery of experience in the channel of the customer's choice or preference

Experience based on past behavior and actions

Recognition of the value/loyalty of the customer in all communications

Reaching the customer on digital destinations they frequent (websites, social feeds, etc.)

Recommendations based on past purchases, searches and preferences

Understanding of search behaviors to predict future needs and anticipate expectations

Real-time awareness of product availability

Locational awareness of where the customer is at the time of experience

Language preferences that reflect native languages and regional dialects

Past purchase history reflected in all communications and recommendations


55%

46%

41%

32%

23%

19%

19%

14%

13%

10%

7%

4%



23%No, we are a long way from being able to deliver contextual experiences in real time.

20%Almost there; we're getting systems, data and analytics in place.

4%Yes, every interaction channel is powered by intelligence-driven, real-time, personalized experiences.

Do you believe your organization is currently delivering contextual experiences in real time to customers, regardless of channel?

30%No; a strategy is in place, but we are still struggling to align intelligence, content and channels with the customer.

23%Yes, but only in select digital channels.



20%Very good - We have integrated our listening capabilities and are excelling in some digital channels and rapidly improving in others.

12%Very poor - We are inconsistent in where and how we listen to our customers.

3%Excellent - We have a formal organization-wide customer listening program and are able to listen to our customers across all channels, online and offline, including channels we do not own or control.

2%Horrible - Not only are we unable to listen to our customer, but there is little we could do with the data once it was collected.

Rate how effective your real-time customer listening strategies are when it comes to being able to listen, analyze and respond to customer voice.

39%Fairly good - We are listening through corporate feedback channels like our website and emails but struggle to integrate insights from service, support, sales or external listening touchpoints.

24%Fairly poor - We are only able to listen in limited channels and have not been able to align channels across the organization to get a clear picture of where customer voice is being heard.



How have your customer listening initiatives impacted your customer experience initiatives? (Select all that apply.)

Guided decisions around content, channels and engagements

Deepened customer relationships by creating new, relevant conversations and exchanges with customers

Improved results and return on marketing campaigns as customers are responding positively to the personalized and relevant experiences

Helped the entire organization better understand and quickly shift to meet the changing needs of our customers

Created new products, services or solutions that meet new customer demands

Added rich context to our engagements with individual customers

Enabled fast troubleshooting to head off issues before they become problems for customers

Accelerated the customer journey from investigation to transaction as we respond to the customer with more precise recommendations and experiences

Reduced customer service and support costs thanks to proactive assessment of customer needs

Boosted bottom-line performance and increased revenue per transaction with our most valuable customers

44%

42%

33%

30%

28%

27%

25%

20%

19%

18%



THE NEW CUSTOMER-BUSINESS ECOSYSTEM

Which departments or external partners are part of your organization's data value-chain? (Select all that apply.)

Sales

Customer support/service

Digital

Operations

Analytics

PR/communications

Finance

External agencies/performance partners

Commerce/eCommerce

Product development/R&D

Pricing

Channel

Fulfillment

Supply chain

HR

Store operations


80%

71%

63%

58%

55%

48%

43%

37%

32%

30%

29%

28%

27%

26%

13%

12%

1%



Rate your organization's readiness to onboard and embrace new technologies and engagement channels.

34%Extremely ready

10%Not ready at all; struggling to keep pace with technology's advancement

32%Ready, but with reservations

13%Getting ready, but still working to ready systems and processes

11%Falling behind, but have strategies in place for rapid improvement



Of the new and emerging technologies gaining momentum (and hype), which do you feel has the opportunity to make the biggest impact on the customer experience and your organization?

Big data-driven engagements and intelligence (i.e., smart recommendations, next best actions, etc.)

The Internet of things

Digital dexterity (defined as core employee cognitive ability and social practice that will define digital business success)

Mobile payment, transactions and m-commerce

Neuroscience/neurobusiness

Live streaming video

Virtual reality (artificial, computer-generated simulation or recreation of a real-life environment or situation)

Natural language response/answering

Augmented reality (layers computer-generated enhancements atop an existing reality in order to make it more meaningful through the ability to interact with it)

In-store beacons

Machine learning intelligence

Headless commerce (where the digital commerce platform, once built around the storefront and shopping cart, embeds programmable shopping interfaces into images, videos, banners and other digital experiences, according to Gartner)

Subscription business models

Virtual currency (Bitcoin, etc.)

61%

37%

28%

25%

19%

18%

17%

16%

15%

12%

12%

10%

10%

4%



What do you believe will be the organization's greatest challenge or obstacle to onboarding and integrating these new emerging technologies?

Having the right team and talent to manage and optimize these new tools

Understanding where and how these points of engagement add value to the customer

Connecting these technologies into existing legacy systems

Shifting internal processes to align new touchpoints and technologies to old processes

Managing the data that these new solutions and systems will bring

Budget to fund these new programs

Determining if these new tools are even right for our customers

Gaining organizational support to integrate these tools across all touchpoints

Keeping up with the competition that is already on the path to implementation

Resisting the urge to bring on new technology until it is ready to be embraced by the customer

32%

13%

13%

11%

8%

8%

7%

6%

1%

1%



DEMOGRAPHICS

In which region are you and your marketing team located? (Select one)

40%Asia-Pacific

32%North America

19%Europe

6%Africa

2%South America 1%

Middle East

In which regions does your company operate? (Check all that apply)

Asia-Pacific

North America

Europe

Middle East

Africa

South America

69%

63%

55%

37%

36%

32%



11%VP of Marketing

2%VP of Marketing and Sales3%

SVP/EVP of Marketing

What is your title?

22%Head of Marketing

22%Chief Marketing Officer

21%Other (please describe)

14%Director of Marketing

4%Director of Corporate/Marketing

Communications

1% VP of Marketing Operations

1%VP of Corporate/Marketing

Communications



How large is your company?

What best describes the focus of your business?

21%Less than $50 million

14%$1.1 billion to $5 billion

9%$101 million to

$250 million

8%$51 million to

$100 million

8%$501 million to

$750 million

8%$751 million to

$1 billion

7%$251 million to $500 million

26%Greater than

$5 billion

42%B2B

37%Hybrid of B2B

and B2C

21%B2C



What best describes your company's industry sector?

Information technology

Retail

Telecommunications

Professional services

Pharmaceuticals

Manufacturing

Financial services

Media and publishing

Travel and hospitality

Insurance

Wholesale/distribution

Electronics and miscellaneous technology

Life sciences

Chemicals

Food and beverages

Automotive

Education

Consumer durables

Entertainment

Transportation

Aerospace and defense

Construction

Packaged goods

Utilities

Government

Other

15%

10%

8%

7%

6%

6%

5%

4%

4%

4%

3%

3%

2%

2%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

1%

8%



How large is your global marketing staff/team?

7%100 - 200

12%50 - 100

13%30 - 50

15%More than 300

24%10 - 30

5%200 - 300

25%Less than 10



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 9,000-plus members control

more than $400 billion 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 more than 30,000 global executives in more than 110 countries covering multiple industries,

segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia-

Pacific, Middle East, India and Africa. The council's strategic interest groups include the Coalition to

Leverage and Optimize Sales Effectiveness (CLOSE), Mobile Relationship Marketing (MRM) Strategies,

LoyaltyLeaders.org, CMOCIOAlign.org, Marketing Supply Chain Institute, Customer Experience Board,

Digital Marketing Performance Institute, GeoBranding Center and the Forum to Advance the Mobile

Experience (FAME). Learn more at www.cmocouncil.org.

ABOUT SAP

As the market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes

and industries run better. From back office to boardroom, warehouse to storefront, and desktop to

mobile device, SAP empowers people and organizations to work together more efficiently and use

business insight more effectively to stay ahead of the competition. SAP applications and services

enable more than 238,000 customers to operate profitably, adapt continuously and grow sustainably.

For more information, visit www.sap.com.

ABOUT SAP HYBRIS

SAP Hybris delivers state-of-the-art customer data management, context-driven marketing tools and

unified commerce processes for all your channels. Our products deliver a consistent and relevant

experience to customers across every channel and on every device. It transforms how a business

engages with its customers, and that’s what keeps people coming back to them and why they come

back to us. Everything we make is designed to simplify the experience for the customer and for

business. And everything we make allows businesses to react quickly to change so they don’t get left

behind. Learn more at www.hybris.com.

CONTEXT, COMMERCE + CUSTOMER - SAP Hybris · CONTEXT, COMMERCE + CUSTOMER Report ... In comparison...

Documents

Transcript of CONTEXT, COMMERCE + CUSTOMER - SAP Hybris · CONTEXT, COMMERCE + CUSTOMER Report ... In comparison...