The new reality of the connected CMO
Smart connected products are one of the biggest trends driving business transformation in many industries today. According to Gartner, in five years, 25 billion ‘things’ will be connected and in use. The opportunity for manufacturers is significant. By turning traditional products into smart, connected ones, manufacturers can build better customer engagement models, and provide new value-added, personalized services and experiences that go along with them.
Along with these new experiences comes a new paradigm in terms of the relationship between the customer and the manufacturer—specifically involving the Chief Marketing Officer (CMO) and the CMO organization.
Moving from a one-size-fits-all customer relationship
Let’s look at what the new reality is for the CMO at a consumer manufacturing company in today’s connected world. Once a connected product is in use, then, a one-to-one relationship is created with the customer. That relationship is not always necessarily with the retail outlet where they purchased the product; in most cases, the customer will need a direct relationship with the manufacturer. But how can a CMO prepare for the millions of consumers who are connecting to their products and want to build a relationship with them?
The Internet of Things (IoT) enables a wealth of information that marketers can now utilize, should they want to seek out a customer-driven relationship. CMOs will need to consider a multi-dimensional change to established processes, channel reward and incentives, sales and service engagements, product recalls, product design, and supply chain—to mention just a few.
While all of the change does not fall solely on the shoulders of the CMO, the engagement does start here. As soon as that button is pressed and connectivity is created, the relationship journey begins in earnest. It’s the CMO who has the ability to harness the information coming in and create an engaging experience for the customer.
I’ve had conversations with a number of CMOs and it’s interesting to note that many are not ready for the volume of consumers who will be connecting to their products—and what this actually means for their jobs. Many leaders are looking for guidance on how to organize their marketing departments differently in order to have a more intimate and connected relationship with their customers.
And it’s not just marketing. There are many other aspects of a company that will be impacted by this influx of customer information, from design, to R&D, to supply chain, to procurement, and beyond. But it’s really the CMO’s responsibility to have a strategy for deciding if and how the manufacturer will develop and maintain a direct relationship with their customers.
Enabling more personal experiences
Industry leaders in the manufacturing sector are already looking at ways to harness the opportunity of IoT to provide those rich, connected relationships. A great example is appliance maker Miele, who is working with Microsoft on a proof-of-concept study based on Azure IoT services that will help usher in the next generation of smart appliances and home cooking. The concept will allow home users to program their ovens to ensure their meals will come out perfectly cooked, providing an exceptional customer experience. This is an exciting example of how IoT and the cloud can create new, personalized experiences and long-term relationships with customers in ways never before possible—allowing Miele to move from enterprise experiences to personal experiences with their customers.
How to get started
This is a whole new way of thinking for some manufacturers. It’s about combining IoT, marketing, and line-of-business data together to get a single view of your customer. It’s about improving how you design your products moving forward, based on the insights and data you are gathering. It’s a long-term strategy and a transformation of existing business models—with the consumer at the center.
Microsoft can help you drive this transformation. As a next step, we can meet with you to understand how these challenges affect you and discuss how we can work with you to transform your customer engagement through analytics and insights, cloud technologies and interactive digital marketing solutions, data visualization and customer relationship management tools, and more. We have application pilots and proofs-of-concept already under way with manufacturers today and we can share further customer examples with you.
Connected products are already here and will very soon be mainstream in our society. If you fast forward 10 years, most products on the market today will be in a recycling center somewhere and new products will have emerged—and everything will be connected. And this has essential implications for the companies who make—and market—them.
Twitter: @Caglayan_Arkan
