SOURCE: Rakuten Marketing

Rakuten Marketing

Rakuten Marketing

October 29, 2015 06:00 ET

Despite Major Consumer Shifts in Behavior Across the Digital Ecosystem, Survey Reveals Over Half of Top Marketing Executives Don't Have an Omnichannel Strategy

Marketers Strive to Meet Consumer Expectations Noting Challenges That Span Technology, Logistics, Measurement and More

NEW YORK, NY--(Marketwired - Oct 29, 2015) -  The CMO Club in partnership with Rakuten Marketing today released survey findings that reveal most companies have yet to begin to implement an omnichannel strategy, noting a lack of resource and investment as the primary reasons for the stall. The survey of more than 120 Chief Marketing Officers (CMOs) and global marketing executives reinforces the desire brands have to create a seamless, customer-focused world, and confirms while most face challenges on the path to execution, those that are applying cross-channel marketing are experiencing notable success.

Complete survey results and advice from industry-leading companies having omnichannel success can be found in "The CMO Solution Guide to Demystifying Omnichannel Marketing To Create a Winning Strategy for CMOs."

Adoption of Omnichannel Lags Behind Consumer Behavior

The research shows 55 percent of respondents have yet to implement omnichannel marketing. Thirty-four percent of those surveyed were in the early implementation phase -- not fully integrated across channels -- and just 11 percent noted a sophisticated implementation, with integration across channels and online to offline.

Brands that are applying cross-channel marketing are experiencing success, giving weight to the emerging strategy of omnichannel and getting the attention of peers. When asked to name one brand that is doing a great job at omnichannel personalization, marketing executives surveyed most frequently cited Coach, J.Crew, Macy's, Neiman Marcus, Target and Walmart.

Breaking Down Omnichannel Barriers

A true omnichannel approach takes its view from the lens of the customer's journey, rather than from inside of the organization. Although guided by customers' needs, the work begins internally where marketing executives acknowledge the challenges on the path to execution.

When asked to identify up to three barriers to omnichannel implementation, the most frequently reported were a "lack of resources and investment required to succeed" (64 percent), "lack of analytical and technical resources to make sense of data" (61 percent) and "difficulty integrating data" (52 percent).

Budgeting Woes

The hurdles omnichannel marketers face appear disparate: a lack of resources, communication, upper level buy-in, difficulty analyzing and integrating data, and a disjointed organization. Upon closer examination, the survey found a definite causal relationship between many of these challenges and the siloed structure of marketing budgets.

The most common budget structure reported keeps brand dollars separate from direct marketing dollars (30 percent) or allocates budget by business unit (30 percent). Budget distribution by channel came in at 20 percent and 19 percent budget online and offline marketing separately.

"This year we shifted our marketing dollars out of channel silos and into a macro budget that supports an omnichannel marketing strategy," said Leah Robert, Executive Vice President, Camuto Group. "This creates a unified customer experience and gives us one window into performance across channels. We can now use that data, combined with customer feedback at all levels, to address any service issues and reveal what more we can do for shoppers."

Connecting the Dots to Conversion

"It appears brands are only beginning to connect the touch points that lead to conversion," said Peter Krainik, CEO and Founder of The CMO Club. "Once brands move beyond the early stages of attribution, adopt emerging technology tools and begin to truly understand the performance of their marketing, how they evaluate the success of cross-channel marketing efforts may shift."

Sixty-five percent of marketing executives surveyed rely on some type of attribution to show success. Most (34 percent) evaluate each channel individually and optimize based on channel-specific performance. Some (20 percent) already use cross-channel data and attribution to evaluate all marketing touch points. The remainder (11 percent) employs media-mix modeling across online and offline efforts.

"Implementation and execution of a successful omnichannel strategy does not require marketers to find all the solutions on their own. Advancements in ad technology solve data analysis and integration challenges, streamline communication and provide accurate measurement to prove ROI," said Jessica Joines, CMO of Rakuten Marketing. "The path to omnichannel is a complicated journey and organizations shouldn't go at it alone but enlist trusted experts outside their organization to help them break down the barriers."

Download The CMO Club and Rakuten Marketing guide here: www.rakutenmarketing.com/omni-report.

Click-to-tweet: Despite Shifts in Digital @RakutenMKTG_US + @TheCMOClub Survey Reveals >50% of CMOs Don't Have Omnichannel Strategy http://bit.ly/1iXeCyn

About the CMO Club
The CMO Club is the world's most engaged and inspired community of Senior Marketing Executives who help each other solve their biggest challenges, within a candid, trusted, and sharing environment. Collaboration fueled by inspiring events and within the members-only Digital Solutions Clubhouse raises the standard for what is required to be a successful Chief Marketing Officer. With more than 850 members, The CMO Club is the go-to center for today's Senior Marketer for peer-based personal and career success support. For more details, please visit www.thecmoclub.com.

About Rakuten Marketing
Rakuten Marketing is the global leader in omnichannel marketing, delivering its vision of driving the omni experience -- marketing designed for a streamlined consumer experience. Offering an integrated strategy that combines consumer centric insights with e-commerce expertise, Rakuten Marketing aims to inspire better marketing. Rakuten Marketing's omnichannel services include Rakuten Affiliate Network (formerly LinkShare), Rakuten Display (formerly MediaForge), Rakuten Attribution (formerly DC Storm), and Rakuten Search.

Operating as a division of Rakuten, Inc. (4755: TOKYO), one of the world's leading Internet service companies, Rakuten Marketing is headquartered in New York City, with additional offices in Australia, Brazil, Japan, the United Kingdom, and throughout the United States. Follow us on Twitter or learn more at http://www.rakutenmarketing.com.

Contact Information

  • Media Contact:
    Jessica Joines
    CMO
    Rakuten Marketing
    646-581-3202
    Email Contact