Marketing Strategies Are at Risk Due to Consumer Behavior and Technology

Marketing Strategies Are at Risk Due to Consumer Behavior and Technology

Foto: Fotolia

Shifting consumer behaviors, mounting regulatory pressures, organizational shifts and disruptive automation combine to pose a real and destabilizing threat to many marketing leaders and their strategies for the years ahead, according to Gartner.

Gartner analysts predict six critical changes that will help guide marketing leaders while navigating this new terrain. “These are exciting, but uncertain times for CMOs and marketing leaders. From the promise of data and analytics, to the lure of customer experience (CX) and everything in between, marketers have vast opportunities to set themselves apart from the competition, but equal challenges to overcome in order to do so,” said Charles Golvin, senior director and analyst at Gartner. “Finding the right balance to successfully leverage marketing technology and emerging trends will be critical to marketing’s success over the course of the next couple of years,” added Golvin.

Gartner analysts said that by 2022, profitability will replace customer experience as the CMO’s No. 1 strategic priority, reducing investment in marketing-funded CX programs by at least 25 percent. Brands that put in place user-level control of marketing data will reduce customer churn by 40 percent and increase lifetime value by 25 percent in 2023. By 2022, content creators will produce more than 30 percent of their digital content with the aid of AI content-generation techniques, increasing productivity and advertising effectiveness but also disrupting the creative process.

By 2023, 60 percent of CMOs will slash the size of their marketing analytics departments by 50 percent because of a failure to realize promised improvements. By 2023, autonomous marketing systems will issue 55 percent of multichannel marketing messages based on marketer criteria and real-time consumer behavior, resulting in a 25 percent increase in response rates. By 2023, consumers will watch 20 percent fewer minutes of video advertising per day than they do today. Brands will adapt by embracing short-form video ads.

These predictions grow out of four key forces that are buffeting marketers today:

  • Behavioral Changes: As voice interfaces continue to improve, consumers are beginning to embrace the convenience. However, concerns about how marketers use this information and where it is all stored continue to mount. Gartner research reveals that 44 percent of consumers would be more willing to use a virtual personal assistant app if they knew that all their personal data would only remain on the device.
  • Regulatory Pressures: In the wake of consumer advocates shedding light on customer data-powered overreach and missteps, regulatory changes on the use of customer data now threaten to hinder many common marketing practices. The European Union’s General Data Protection Regulation (GDPR) was the first of many more regulations to come.
  • Organizational Shifts: Marketing leaders are attempting to satiate their appetite for data by hiring new talent that can extract insights from the vast amount of data they have acquired. Meanwhile, while marketing analytics teams continue to inflate, so have investments in CX. Executive scrutiny and expectations in these investment areas is rapidly intensifying.
  • Disruptive Automation: Now a core functional element of nearly every category of marketing technology, machine intelligence carries the promise of increased efficiency. As automation makes its way into new areas, these changes will have a disruptive impact on what marketers do and how they do it.

More from category

Insurers Will Spend $634m on Robotic Process Automation by 2024

Insurers Will Spend $634m on Robotic Process Automation by 2024

14 Aug 2019 comment

A new study from Juniper Research found that insurers will spend $634 million on RPA solutions by 2024, rising from $184 million in 2019; a 245% increase over the next 5 years.

Mobile Money Transfers Will Exceed 200 Billion Transactions in 2024

Mobile Money Transfers Will Exceed 200 Billion Transactions in 2024

13 Aug 2019 comment

New data from Juniper Research has found that the volume of domestic money transfers via mobiles will exceed 203 billion in 2024, up from 130 billion in 2019.

European Spending on CX Will Reach $128 Billion by 2022

European Spending on CX Will Reach $128 Billion by 2022

12 Aug 2019 comment

Spending on customer experience (CX) was reported at $97 billion in 2018 and is expected to increase to $128 billion by 2022, growing at a healthy 7% five-year CAGR, according to IDC.