Within contemporary business, data has helped revolutionise how organisations strategise and navigate challenges. Nowhere is this influence more profound than in the realm of marketing, where the fusion of creativity and analytics has become a defining force in everything from generating revenue to shaping consumer experiences. Alongside this digital transformation, CMOs in retail are undergoing their own multi-faceted evolution where they’re tasked to take on a more dynamic role than ever before.
No one knows this better than Mathieu Staat, previous Omnichannel General manager of Groupe Printemps and marketing director (CMO) in several companies. Over his more than 25-year international career in customer and digital marketing in the retail sector and customer relationship management (CRM), he’s experienced this evolution first-hand – and gained more than a few key insights along the way.
In this article, Staat shares a glimpse into the journey of a Chief Marketing Officer (CMO) in the retail sector – from the goals they have to the challenges they face within the digital era, and how today’s CMO can embrace the transformative potential of data in the realm of retail marketing.
What are the Expectations of the Modern Retail CMO?
Over the last 25 years, data has played an increasingly crucial part in effective marketing, altering the role on a core level. To be a good marketing leader today you need two things: a good rear-view mirror, and most importantly, headlights to project you into the future. And, ideally, data serves as the compass that helps guide through the complexities of the retail landscape.
When I think about my objective as CMO, one key imperative stands above the rest: to have an impact on the business. Data plays a huge role in achieving that aim. For example, thanks to data, customer centricity reveals what is working – and what isn’t. For instance, when you’re a distributor selling the same products as other distributors, having the best curation – and identifying the USP (Unique Selling Proposition) – is crucial. At some point, this can impose the obligation to create new collaborations or even new co-branded brands or products. Here are two examples of how data informs product development:
- Data has enabled us to understand needs in the market and create new products that fulfill those needs. For instance, in the beauty industry, thanks to data and a segmented study of the customers’ journeys, you can understand why some customer targets are not growing in value like others, and that this is due to your product portfolio lacking key products.
- If a department store collects, organises, and accurately reports its data, it can create a goldmine for its partner brands. For instance, we developed a web platform allowing brands to access their KPIs at Printemps, better understand their performance, gain customer insight, and also discover the appetency for a product type of their ecosystem that is not sold by the brand but will be appreciated by their customer segment.
As the types and use cases for data become more complex, so too does the job description of today’s CMO. We’re no longer solely the custodians of branding and advertising; now we must wear a myriad of hats that encompass sales optimisation, Omnichannel customer experience, digital transformation, loyalty patterns, and more broadly, taking charge of acculturation across all functions of the company, focusing on data and AI. These expectations, along with reconciling ever-increasing amounts of raw data – have made the role of CMO increasingly challenging.
So, What do CMOs in Retail Really Want?
If there’s one thing every CMO dreams of it’s this: time. More specifically, we desire enough time to create strategic plans and to build for the medium/long term. But given the reactive nature of retail, it’s not always a simple task to achieve.
Historically, we worked on the 4Ps of marketing (Price, Placement, Promotion, Product), with annual marketing plans. However, nowadays every Monday morning begins by analysing metrics and figures from the weekend and then devising a strategy to catch up if the numbers don’t meet our expectations. In this way, we find ourselves in a near-constant cycle of reactivity. The effect is not only counterproductive but can be detrimental; even if we anticipate a drop, heightened anxiety compels us to react hastily to recover. Consider the following story…
A few years ago, I was contacted by the European leader of a major retailer who was looking at figures that showed that the company was down a concerning 30%. However, when I looked at the real-time reporting on my laptop, I discovered that the figures did not reflect what she saw. As it turns out, she was reading a forecast, not the actual data. Without the week’s performance in consideration, the forecast reading was inaccurate and unreliable – and, if left unchecked, could have led to impulsive and potentially disastrous decisions being made.
We may not be able to control time, or how much of it we get to make decisions, but to a certain extent, we can control how we interact with and manage our data. My ideal setup, for example, encompasses a personalised marketing cockpit – a centralised hub where all my data resides, ready for distribution, activation, and capabilities to industrialise new use cases. This nerve center would seamlessly integrate my scores and recommendations (with the added capability to enhance & personalise content through Generative AI). Moreover, it would provide basic but insightful ROIs, enabling a comprehensive assessment of operations over time to better foster innovation and efficiency, and support optimal decision-making. That’s the dream!
What are the Biggest Data Obstacles Retail CMOs are Facing Today?
In a perfect world, data would always provide a rich level of insight that can be leveraged into positive impacts for the business. In reality, however, managing – and getting value from – data is not always straightforward. Here are a few obstacles CMOs encounter:
- The hyper-reactivity of data. From day to day, data is constantly changing, growing & multiplying, which creates a maze of hurdles to navigate. From system crashes to email campaigns that don’t go out due to overloaded services to outdated site information causing customer confusion – a marketer’s daily life is certainly never boring!
- Digital sets a blistering pace. Data and new channels have completely overturned the modern marketer’s relationship with time. Digital technology and data enable us to communicate more directly than ever before, which means that the timing of communications – and decision-making – has to increase accordingly. This can mean imposing 3-weekly or even weekly to daily animation plans, which puts extreme pressure on teams to perform, but still avoid over-soliciting customers.
- Resistance to data sharing. Obstacles hindering data sharing can arise from within the team, leadership, or between brands or potential partners due to a combination of various factors ranging from inadequate team connections to complex data marketing chains, governance challenges, data silos, and a lack of hybrid profiles. These issues impede seamless data flow and collaboration, creating barriers to effective sharing, both within organisations and beyond them.
How Can Retail CMOs Fully Leverage their Data’s Potential?
These days data is worth more than gold. However, extracting its intrinsic value depends on understanding where and how data can be best leveraged. To do so, it’s helpful to go back to basics and consider the two primary categorisations of data: internal and external. Internal (first-party) data originate from within the business, and plays a vital role in understanding, forecasting, supporting initiatives like product launches, and fine-tuning marketing strategies. On the other hand, external data, derived from the market, enables precise decision-making, fosters business growth, and deepens insights into the consumer base.
Integrating both internal and external data strategically provides retailers with crucial insights for optimal business decisions and potential revenue generation. This integration is pivotal in recognising opportunities for innovation and staying ahead in the competitive landscape. However, to capitalise on both forms, external data must be just as readily available and accessible as internal data. Employing user-friendly, centralised data storage solutions such as databases, warehouses, and lakes not only ensures data is protected but also makes it easily accessible through simple queries.
All things considered, the transformative potential of data in the retail sector is undeniable. When harnessed effectively, data catalyses innovative marketing strategies, insightful decision-making, and enhanced customer experiences and loyalty. By embracing the power of strategic partnerships (both within and beyond the business), overcoming resistance, and implementing systems that effectively navigate and manage internal and external data landscapes, CMOs can drive sustainable business growth, and competitive advantage within their industry, and position their business at the forefront of the data-driven future.
Turn the Value of Your Data into Sustainable Success
Devoteam is a trusted ally for retailers looking to embark on a digital transformation journey to become proficient in leveraging data, and enhance their data maturity level, unlocking opportunities for innovation and sustainable growth.
If you’re ready to unlock the true value of your company’s data, connect with one of our expert tech advisors for a consultation.
