A new study by Ernst & Young (EY), in partnership with Forbes Insights, has found that when CMOs deliver products and services in combination with the right experience, it’s a win-win for the company and the customer--and the payoff is trust.
CMOs are beginning to recognize that and refocus, according to Woody Driggs, global advisory leader of EY’s Customer Practice. In fact, a whopping 91% of CMOs said they think that building trusted customer relationships is a significant focus of their departments’ strategic and competitive vision. What's more, 87% said their strategic vision for building trust includes perfecting the customer experience, and they recognize the need to embrace the latest data and analytics technologies to build credibility and long-term relationships with customers.
However, understanding data and analytics is easier said than done, according to EY’s “Building Trusted Relationships Through Analytics and Experience,” report, which features insights from a survey of 301 U.S.-based executives from a variety of functions and several in-depth interviews with leading marketing executives from a range of industries.
“CMOs strongly agree that data and analytics can be leveraged to personalize experiences and to build trust,” Driggs told CMO.com. “A lot of data is collected, yet, at the same time, CMOs are specifically challenged in how to leverage advanced analytics to sort through the information to gain deeper insight.”
According to the study, most CMOs struggle to understand where customer trust erodes, and only half are able to address negative experiences at the customer touch point. Less than a third (30%) of CMOs said with full confidence that their department or company has a full grasp of where in the customer life cycle trust is breaking down. Yet 38% of respondents strongly agreed that they are leveraging analytics to understand where trust is being eroded in the experience life cycle.
Over the next two years, data and analytics will be an important tool with which to build and measure trust, 81% of CMOs said. And almost three-quarters (73%) of marketers said they use analytics to check whether the brand promise is being kept throughout the customer’s interaction with the company.
Most executives (51%) said they believe there is a significant opportunity in the use of analytics for customer insight and in expanding the use of external data sources. Just 37% said they have the capability to use analytics to tailor communications and outreach to the customer. This is a low number considering that many marketing executives see personalization as the next big trend in marketing.
The majority of marketing executives (67%) said they agree or strongly agree that the customer experience requires collaboration outside of marketing.
“To stay competitive and to avoid falling behind, it is imperative that companies embrace big data and advanced analytics and become predictive about the customer’s fickle mindscape,” Driggs said. “Enabling superior digital experiences for the customer while leveraging data and analytics requires breaking organizational silos; there is need for tighter collaboration and a unified vision across functions.”