New research released by Adobe, in co-operation with CMO Council, shows confidence in the value of digital marketing continues to grow even as the region’s marketers struggle to validate performance and build a business case for higher investment. At a time when marketing is fast becoming the catalyst for business transformation and customer engagement optimization, APAC’s marketers are still largely focused on single vector metrics that measure past success or single points of campaign performance, and are typically not measuring impact on harder business metrics, such as sales pipeline measurement or customer lifetime value.
According to the report, 62% of respondents said they measure click-through rates and campaign ROI, and 65% said they measured response rates, compared to just 17% measuring revenue per customer, 13% measuring customer lifetime value and 14% measuring market share movements. However, the minority that is measuring business value metrics are reaping the rewards, as 79% indicate they will be increasing budgets dedicated to digital. This group is taking a more transformational approach and has a substantially different viewpoint on the impact of digital to their business.
Marketers who measure business value metrics spend a higher proportion of their marketing budget on digital and are almost twice as likely allocate more than 50% of their budget to digital than marketers who do not measure the same metrics (19% vs 10%). Similarly, marketers who track business value metrics have higher levels of confidence in digital than their non-measuring peers (75% vs 59%), are more likely to say that digital can grow a profitable business faster (45% vs 33%), and are less likely to say they struggles to make a business case for digital spend (31% vs 40%).
“Adobe and CMO Council have been tracking the ongoing digital journey of APAC’s marketers since 2011, and we have seen and worked with many companies to successfully transform their operations, teams, technologies and strategies as they consolidate digital channels to deliver a unified, exceptional customer experience,” said Paul Robson, President, Adobe Asia Pacific. “It’s a complex and challenging task, but the rewards are great. Early adopters have now consolidated their position as leaders and are able to prove value to their organizations and industries, creating a virtuous cycle of funding and resources. Those companies use customer intelligence in an insightful way, are leading with data; measuring, predicting and using insights across multiple channels to raise the bar by creating new experiences to satisfy customers.”
Liz Miller, Senior Vice President of Marketing at CMO Council agrees, emphasizing that the challenge now is to “turn our attention to extracting greater value and insights from data to provide ideas and knowledge that improve product, services and customer engagement and provide the foundations for a stronger internal pitch to boost investment and resourcing.”
The report recommends APAC marketers adopting three digital imperatives to accelerate their digital journey:
- Optimize strategies for engagement and enablement by diving deeper into intelligence, insights and customer analytics. Best practice leaders in the region are demonstrating this by integrating tools that help streamline operations, and rolling out new strategies that leverage online and offline data to create smarter experiences.
- Boost team performance and skills. The talent gap consistently manifests as a major obstacle to digital advancement. In 2013, 37% of marketers said their agency’s capabilities and experience were holding them back. In this latest survey, that number has jumped to 47% of respondents, which is especially problematic when considering that 74% of respondents said they were working with one or more digital agencies across APAC.
- Allocate around a customer-centric business case. Digital budgets are slowly increasing in Asia Pacific with 79% of respondents say they have increased budgets over the last 12 months. Marketers who leverage metrics tied to the bottom line, profitability and growth, are having greater success persuading internal stakeholders to increase their investment in digital.
“The data is there; now it’s up to the marketers of Asia Pacific to apply it to drive business growth, and demonstrate the value of their function,” Mr Robson concludes.
The APAC Digital Directions report is a companion piece to the CMO Council and Adobe’s ongoing Digital Marketing Performance Dashboard that reveals findings based on data collected from 648 respondents in Australia, South Korea, China, Hong Kong, Singapore and India. More than half of the companies surveyed were headquartered in Asia Pacific (56%), and 57% of respondents worked in organizations with turnover of $1.1b or greater. Respondents came from industry sectors including IT, retail, banking and travel and hospitality sectors among others.