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STAMFORD, Conn., January 14, 2015 View All Press Releases

Gartner Says IT Leaders Will Need to Develop a Stronger Relationship With Marketing

By 2018, CIOs Who Build Strong Relationships With CMOs Will Drive a 25 Percent Improvement

Increasing marketing technology investments are demanding more involvement from IT leaders to enable marketing to achieve full business value from its investments, according to Gartner, Inc. In 2015, IT leaders supporting marketing will need to build a stronger partnership with marketing and help to evaluate solutions (architecture, functionality, scalability, performance and security), source data, manage and consolidate the application portfolio, and integrate solutions.

"Marketing continues to be a hot area of IT investment and technology innovation with a rapidly growing application portfolio that demands greater integration and focused investment," said Kimberly Collins, research vice president at Gartner. "IT leaders supporting marketing will need to develop a strong relationship with marketing leaders to help marketing derive the full potential from its IT investments."

Gartner has made a number of predictions about marketing technology investments, including:

By 2018, CIOs who build strong relationships with CMOs will drive a 25 percent improvement in return on marketing technology investment.

Marketing is a high area of technology investment, and that investment continues to grow rapidly with digital marketing expansion. Gartner has found that many large companies, particularly business-to-consumer (B2C) companies, have more than 50 applications and technologies supporting marketing. Managing this portfolio and generating customer value from these technologies requires a more integrated and consolidated approach, but not at the expense of marketing's ability to innovate in digital marketing.

"To generate greater business value, IT leaders need to work more closely with marketing to determine where IT leads versus where marketing leads and how both can work more effectively together," said Ms. Collins. "An integrated marketing management (IMM approach) that leverages a Pace-Layered Application Strategy can be invaluable to helping IT leaders derive more value for their marketing leaders."

By 2018, B2B sellers that incorporate personalization into digital commerce will realize revenue increases up to 15 percent.

Personalization enhances the relationship between a buyer and seller, making the buyer feel recognized, appreciated, respected and efficient. Today's consumers expect recognition, to be valued and to have a personalized experience; they have little tolerance for inefficiency. These expectations will be even higher for business buyers who typically have longer-standing relationships with their suppliers and spend higher amounts with them.

Personalization also enables sellers to remain competitive and drive customer satisfaction, loyalty and advocacy as well as increase profitability. Consumers who have personalized experiences spend more. Companies that incorporate personalization into B2B digital commerce strategies will make their business customers more efficient, provide a better customer experience and increase the likelihood of greater purchase value as well as upselling and cross-selling — all leading to greater revenue.

"The foundation on which personalization should be incorporated for business buyers is efficiency and effectiveness because business buyers are typically working under pressure and with deadlines," said Penny Gillespie, research director at Gartner. "Personalization would then be developed based on available customer preference settings in the digital commerce platforms, creating or identifying merchandise affiliation, and incorporating behavior-based learning from other customers along with specific customer knowledge and information."

Through 2018, voice of the customer (VoC) initiatives that don't share data across the enterprise will compromise customer satisfaction and loyalty measures by 30 percent.

VoC solutions collect, analyze and act upon the vast array of customer feedback sources that are potentially available, ranging from surveying to social media to speech analytics. It is an increasingly popular area of focus due to the business value that is obtained from acting upon the derived insights. However, VoC's ownership is currently inconsistent with different constituents who are taking responsibility within different organizations.

"A VoC initiative will reveal useful insights that are linked to the brand, products, campaigns, geographical markets and competitors, but without a pan-enterprise positioning as part of a strategic customer experience management (CEM) initiative, the true benefit of VoC can be stifled," said Jim Davies, research director at Gartner. "IT leaders supporting CRM can help different areas of the organization leverage VoC solutions. For example, if marketing deploys a solution, then IT can help to leverage the solution and the insights that it generates for customer service as well as work with customer service to integrate relevant customer insights and data into the customer service applications."

VoC is one area where IT leaders can demonstrate their importance to the organization through their understanding of the different technologies that are deployed across the different business units and through their ability to provide a more integrated solution that focuses on the customer and not just one business domain. Ultimately, IT's role will be to help support a corporatewide VoC initiative regardless of who owns it.

More detailed analysis is available in the Gartner report "Predicts 2015: IT Leaders Will Need to Develop a Stronger Relationship With Marketing." The report is available on Gartner's website at http://www.gartner.com/document/2894118.

Gartner analysts will share additional information on customer and marketing trends at the Gartner Customer 360 Summit 2015 being held February 17 in Tokyo and September 9-11 in San Diego, California. Additional information on the Tokyo event is available at http://gartner-em.jp/customer-360/ and members of the media can register to attend by contacting takako.imaizumi@gartner.com. Details on the San Diego event are at www.gartner.com/us/crm. Members of the media can register by contacting Janessa Rivera at janessa.rivera@gartner.com.

CRM trends will also be discussed at the Gartner Customer Strategies & Technologies Summit 2015, on June 10-11, in London. For more information on this Summit, please visit www.europe.gartner.com/crm. Members of the press can register for the Summit by contacting Laurence Goasduff at laurence.goasduff@gartner.com.

Information from the Summits will be shared on Twitter at http://twitter.com/Gartner_inc using #GartnerCRM.

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About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

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