1:1 has greater impact than mass communication

Source: CMO Index 13 report 

We have asked the professor from CBS, Thomas Ritter, comment and speculate on the conclusions of CMO Index 13. Read, among other things, what he thinks about the increased focus on 1:1 -dialogue and get his best advice for the marketing executives in 2013.

Thomas Ritter
Almost half of marketing respondents consider that Big Data will change the way the company markets itself. Are CMOs and marketing departments ready for the challenge? Where to "re-arm", eg upgrade skills?
-Despite of the many possibilities with BigData it's some pitfalls that CMOs must address, before the potential of Big Data can be fully redeemed:

  • We do not necessarily have the right data - and when "wrong" data included in the analysis, the Big Data becomes Big Disaster.
  • Data can easily give the wrong answer if you ask the wrong questions.
  • Big Data is no substitute for segmentation to be made before analysis.

The insight from segmentation to be used to find indicators and it's these indicators and customer allocation to the segments that Big Data can contribute.

More than half of CMOs is describing the culture of their marketing department is primarily communication oriented. How will Big Data affect the culture of marketing departments? More figures in everyday life?
- There is no relationship between culture and Big Data. If the department is responsible for the communication, so it accounts for it. But Big Data can support communication, so yes, more figures in daily life is probably a realistic result of Big Data. Whether this contributes to greater efficiency in marketing departments depends on the quality of figures and incentives to use data in everyday life.

2 years ago ROMI was not on the agenda. Now it seems to be one of the main objectives of marketing executives. Why this rapid change, and do you see the trend continue?
- Yes, the trend will continue. Corporate managements are very focused on being able to document everything - and this also applies to marketing. There have been a big gap between  "accountability" and marketing,  but it is being closed now.  Which pleases me to see.

There is an increasing focus on social media and apps. 2 out of 3 now measure the effect of their presence on social media. Has social media "grown up"?
- We can say so; - social media is now taking a natural place in many communication strategies. There are also created wider experience with social media, so the effort has become more mature. ROMI discussion has also taken off, so it is no longer about "just to be there" In many cases, clear objectives for working with social media is put forward.

DM/1:1 dialogue has more space in budgets this year, and at the same time marketing managers think that it has a greater impact than mass communication. Will this trend continue?
- It's not a trend, but just a reality.1: 1 has a greater impact than mass communication, but is still more expensive, so it's all about optimization: How to find the strongest mix between the different forms of communication? With which customers it makes economic sense to communicate 1:1, and where is mass communication better?

Only 1 in 10 will be financially rewarded for strengthening customer loyalty. Should marketing bonuses not be directly linked to the development of customer loyalty?
- Profit Salaries makes sense when the result is measurable, and the employee has a direct influence on the result. But this is rarely the case in marketing departments, especially when the department is responsible for the communication tasks and not directly related to sales or customer experiences. So 1 in 10  is not many, and I think it won't reach more than 3 out of 10.

What will be your single most important advice for marketing executives to succeed optimally in the next 12 months?
- Understand your role in the organization - what you are responsible for? Understand the business objectives and define your contribution. Understand how to communicate your contribution - how to show what you're worth to the management. Overall, it is about taking commercial responsibility and contribute to the commercial development of the company.