Artificial Intelligence (AI) and Generative AI (GenAI) will create a paradigm shift for marketers … (+)
MarTech, the broad range of software tools used in marketing campaigns, will continue to focus on artificial intelligence (AI) and generative AI (GenAI) to drive unprecedented levels of personalization and customer engagement in 2024 Retailers and brands emphasize the importance of AI. in marketing and the need for effective collaboration across functions. With nearly 60% of marketers prioritizing AI investments, a new study highlights the strategies, challenges and trends that will define marketing success in the coming year. “Adopting GenAI to know more, do more, learn more and achieve more also has the potential to transform marketers, starting with the CMO,” said Steven Gerber, president and COO of Zeta Global.
Here are the key takeaways from CMO intentions for 2024 study by the CMO Council and Zeta Global Holdings Corporation.
1) AI and GenAI lead MarTech investments
With AI expected to improve content creation, personalization, predictive analytics and overall marketing effectiveness, 60% of marketers see this initiative as providing the most value and return on investment (ROI) . In addition to driving improvements, AI and GenAI can segment customers with greater precision and precision. Micro-segmentation, which in the past was very costly for retailers, can now help increase engagement and brand loyalty. Additionally, automated marketing activities aimed at removing repetitive tasks such as email marketing, social media posting, and ad placement result in greater consistency across campaigns.
One in three CMOs said their campaign performance needs improvement, while 46% of respondents … (+)
2) Operational Excellence and Cross-Functional Alignment
Creating alignment across functional areas of a business is crucial to maximizing the potential of MarTech investments. The collaboration of merchants (buyers), marketing, operations, finance and human resources enables clear vision and operational excellence. “The first step in this transformation is simple in theory but complex in execution: elevating intelligence from a weakness to a superpower,” Gerber said.
Further integrating MarTech investments into online and offline businesses enables retailers to be more efficient, more agile and truly customer-centric. The result of a unified strategic approach to marketing will be increased brand visibility for customers and employees, providing a long-term advantage for today’s retailers.
3) Data-Driven Personalization and Customer Engagement
Customer platforms and insights are key to personalizing and humanizing customer engagement. By analyzing large amounts of data, AI helps marketers better understand customer journeys and adapt their approaches accordingly. According to the CMO Intentions study, nearly half of marketers view collecting and analyzing customer data as essential to improving engagement. Sophisticated chatbots and virtual assistants can interact with customers in real time, providing a highly personalized experience. GenAI uses personalized product and service recommendations to respond to individual customers, driving high engagement and deeper loyalty, resulting in exceptionally personalized experiences in the purchasing journey.
Finding functional alignment, unified execution across the enterprise, and demonstrating ROI are priorities. … (+)
4) Achieve revenue and customer goals despite challenges
Marketers are under increasing pressure to prove marketing’s impact on campaign performance, with 37% of study participants saying the need for better execution. Even though 56% of CMOs report meeting their revenue and customer acquisition/retention goals, there remains a need to ensure ROI, overcome siled data ownership, and ensure that new platforms and tools are integrated into the IT technology stack. CMOs who achieved their goals often reported closer collaboration among senior management, emphasizing the importance of executive buy-in and cross-functional support. A positive takeaway from the study showed that there is a high level of digital skills and fluency within existing teams, with 83% of CMOs reporting that their teams possess these skills. However, the skills gap varies significantly by geographic region.
5) Regional differences in marketing performance:
There are notable differences in marketing performance between North American and European marketing leaders. These differences reveal varying challenges and priorities that impact how marketing strategies are executed in these regions. Around 40% of European marketing leaders admit that the performance of their marketing campaigns needs improvement, compared to only 23% of North American leaders. Additionally, the digital marketing skills gap is more pronounced in Europe than in North America. While only 20% of North American CMOs say they need digital skills to improve their overall marketing operations, the figure is 40% among European CMOs; This gap in digital skills may contribute to performance gaps between different regions. Other factors that can cause variations in marketing performance include the economic climate, geopolitical considerations, variations in data protection and privacy legislation. Strategic differences between regions could also provide insight into variations in marketing performance. North American marketers tend to prioritize innovations and new product launches, while European marketers focus more on customer engagement.
AI and GenAI create paradigm shifts for marketers
“It won’t be easy. But in this day and age where intelligence is the ultimate competitive advantage, the future belongs to those who are willing to embrace it,” Gerber said. These takeaways underscore the growing importance of AI in marketing, the need for effective collaboration across functions, the value of customer data for personalization, the pressure needed to demonstrate marketing impact, and regional variations in marketing strategies and challenges.
The Council of Chief Marketing Officers (CMO) and its strategic communities of interest include more than 65,000 global executives in more than 110 countries spanning multiple industries, segments and markets. The CMO Council’s research findings are based on a survey of nearly 200 CMOs in North America and Europe. Zeta Global Holdings Corp. is a data-driven, cloud-based marketing technology company; it recently hit a record closing price of $17.42, representing a 97% year-to-date increase.
