June 2021

Act now: Abandon the pursuit of a 360 degree customer view

A 360-degree view of the customer has long been an aspirational goal of marketing, IT, and CX teams.  For reasons laid out in new Gartner research, you should curtail such aspirations.  

Discussions with Gartner clients consistently reveal the tremendous technical and financial commitments required to assemble a “Customer 360”, and today’s environment adds new complexities: the furious pace of change among your customers,  in your business, and the regulatory environment.   On top of substantial financial costs, organizations contemplating the 360-degree view must grapple with this sizable investment and its tremendous hurdles:  near-impossible technical challenges, accelerating regulatory scrutiny, and data collection practices that ignore what customers want. 

[caption id="attachment_336" align="alignleft" width="641"] The effort to get from B to C is much more than the effort to get from A to B, imperiling ROI.[/caption]

 

Mature marketing technology teams don’t assume that their investments will overcome such hurdles: instead, they balance risk and potential reward and construct scenarios that preserve options while limiting risk of disaster, through pragmatic and adaptable planning processes (see Maturity Model for marketing Technology Gartner subscription required).  Technology would certainly be part of your solution.  But even with the right technology, barely half of marketing analytics survey respondents say it’s worth the effort of constructing a 360 degree view of the customer. 

 In 2021, martech teams see getting a handle on data management as a top priority (see “mastering data management, one of our Top Trends in Marketing Technology for 2021) Despite investments in technologies like CDPs, marketing teams continue to face challenges to leverage that data – a recent analysis of our martech survey found that brands on average have invested in 2.3 CDPs (see Survey Analysis: Customer Data Platform Utilization is High, Yet Customer Data Management Challenges Persist). 

Faced with the risk of overinvestment, a regulatory environment that can produce abrupt changes from tech giants and consumers who are becoming increasingly skeptical of brands, will you simply stay the course, or will you adapt?  Will you cut short a pursuit of a customer 360 which will almost certainly be a drag on your business?  The role of agility in developing an organization’s marketing technology strategy, and the capabilities to support, were a key finding of our 2020 Marketing Technology Survey – those with an agile approach to their martech roadmap were better able to adapt to and ACT in the face of 2020’s challenges.  

What you’ll find in our maverick research isn’t an indictment of data. We highlight the value of the right data, used in the right way.  We urge you to acknowledge the technical infeasibility of a full “360 degrees”,  a growing regulatory burden on individual-level data, and respecting consumers seeking control over their own information.  As such, we predict that:

By 2026, 80% of organizations pursuing a “360-degree view of the customer” will abandon these efforts because they flout data privacy regulations, rely on obsolete data collection methods, and erode customer trust

To dig in more deeply, see Maverick* Research: Pursuing a 360-Degree View of the Customer Will Destroy Your Business.

New Publications: June 2021

We are excited to share 3 new publications! This month, the CDAO team has two new case studies. The first, from SureSparkle* (pseudonym) details a progressive approach to self-service D&A demand management. The second, from the Brussels Intercommunal Transit Company, shows D&A leaders how to structure innovation projects so that failures generate productive business value. We also published the full write up of our May Virtual Executive Retreat on Data- and Analytics-Driven Innovation.

Publication Summaries

Data and Analytics Strategy & Planning

Case Study: Getting Value From D&A Innovation Failures (Brussels Intercommunal Transit Company): Brussels Intercommunal Transit Company built a culture of D&A innovation and realized significant savings in maintenance costs with no innovation budget, mandate or dedicated talent. This case study shows data and analytics leaders how to set up projects so that failure is as valuable as success.
Case Study: Demand Management for Self-Service Data and Analytics Tools (SureSparkle*): SureSparkle* proactively manages the demand for self-service data and analytics tools by targeting high-value users and then building sustainable partnerships with business stakeholders. D&A leaders, learn a new approach to prioritizing and delivering self-service here.

Business Value of Data and Analytics 

3 Case Studies of Data- and Analytics-Driven Business Innovation: Data and analytics leaders, learn here how three progressive peers have built data- and analytics-driven innovation into their engagements to rapidly generate business value.

Thanks and best wishes,

Jitendra Subramanyam, VP & Team Manager, https://www.linkedin.com/in/jsubramanyam/
Ben Hertzberg, Director, https://www.linkedin.com/in/benjaminhertzberg/
Kevin Gabbard, Director, https://www.linkedin.com/in/kevin-gabbard/
Ariel Silbert, Principal, https://www.linkedin.com/in/ariel-silbert-289a50104/
Shelly Thackston, Senior Specialist, https://www.linkedin.com/in/shellythackston/

BrandPost: 3 Key Lessons from Accelerated Digital Adoption in the Past Year

About 500 years ago, the Italian Renaissance polymath Leonardo Da Vinci famously said “Nothing can be loved or hated if it is not first known” – and now we know!It is commonly accepted that the Covid-19 pandemic and its associated lockdowns have accelerated the pace of digital transformation, by necessity for most enterprises. In the beginning of the first lockdown, “…we’ve seen two years’ worth of digital transformation in two months,” as Microsoft CEO Satya Nadella put it.According to a global survey of executives¹ conducted by McKinsey, companies accelerated the implementation of remote working and collaboration capabilities by as much as a factor of 43 compared to estimates without the crisis. Similarly, the adoption of digital technologies for advancements in operations and business decision-making has been expedited by a factor of 25 times more than expected.To read this article in full, please click here

BrandPost: Building an Enterprise Automation Pipeline

Robotic process automation (RPA) platforms and tools have become so powerful and easy to use that it is possible for organizations to become a fully automated enterprise. Partially or fully automating thousands of manual processes enterprise-wide, however, requires a coordinated strategy that engages all of an organization’s departments and – most importantly – includes sophisticated IT management oversight and control.To understand the need for centralized IT oversight, look no further than the “shadow IT” challenges companies have encountered in recent years. With the ready availability of cloud-based Software-as-a-Service (SaaS) offerings, individual departments were suddenly able to create and access applications and technologies without any IT department involvement or awareness. In many companies, the SaaS deployment free-for-all resulted in siloed IT operations that were difficult to manage, interconnect, or secure.To read this article in full, please click here

CIO Leadership Live with Mojgan Lefebvre, EVP, Chief Technology & Operations Officer, Travelers

Mojgan Lefebvre, EVP and Chief Technology and Operations Officer at Travelers, joins Maryfran Johnson for this CIO Leadership Live interview, which is jointly produced by CIO.com and the CIO Executive Council. They will discuss AI in customer engagement, data culture, agile work, and more. This episode is sponsored by Cisco. Discover more at newsroom.cisco.com. To read this article in full, please click here

BrandPost: Reinventing your business with data

Building a business that is sustainable for a long period of time isn’t easy. It requires reinvention—likely multiple times over. Only 50% of businesses that were on the Fortune 500 list in 2000 are still there today. The introduction of the cloud set off a generation of reinvention, and now, the next wave of reinvention will be driven by data.To be a leader that’s going to reinvent, you have to be maniacal, relentless, and tenacious about getting to the truth. And you have to have the tools to stay agile enough to pivot when needed and jump on new opportunities.To do this, you need to build a modern data strategy.The ideal data strategy isn’t one size fits all. It’s adapted for your needs. It gives you the best of both data lakes and purpose-built data stores. It lets you store any amount of data you need at a low cost, and in open, standards-based data formats. It isn’t restricted by data silos, and lets you empower people to run analytics or machine learning using their preferred tool or technique. And, it lets you securely manage who has access to the data.To read this article in full, please click here

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