MarTech, the wide 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 are emphasizing the importance of AI in marketing and the need for effective collaboration across functions. With nearly 60% of marketers prioritizing AI investments as their primary focus, a new study highlights the strategies, challenges, and trends that will define marketing success in the coming year. “The adoption of 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 the CMO Intentions 2024 study by the CMO Council and Zeta Global Holdings Corporation.
1) AI And GenAI Leading MarTech Investment
As AI is expected to drive improvements in content creation, personalization, predictive analytics, and overall marketing efficiency, 60% of marketers view this initiative as providing the most value and return on investment (ROI). In addition to driving improvements, AI and GenAI can segment customers more accurately and with greater precision. Micro Segmentation, which in the past has been very costly for retailers, can now be instrumental in driving higher engagement and loyalty to a brand. Furthermore, automated marketing activities to remove repetitive tasks such as email marketing, social media posting, and ad placements result in higher consistency across campaigns.
2) Operational Excellence And Cross-Functional Alignment
Creating alignment across the functional areas of a business is crucial for maximizing the potential of MarTech investments. Merchants (buyers), marketing, operations, finance, and human resources working together allows for a 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,” stated Gerber.
Further integrating the MarTech investments across online and offline activities enables retailers to be more efficient, agile, and truly customer-centric. The outcome of a unified strategic approach to marketing will be elevated brand exposure for customers and employees, providing a long-term advantage for today’s retailers.
3) Data-Driven Personalization And Customer Engagement
Customer data platforms and insights are essential for personalizing and humanizing customer engagement. By analyzing vast amounts of data, AI helps marketers understand customer journeys better and tailor their approaches accordingly. Nearly half of the marketing leaders see customer data collection and analytics as critical for enhancing engagement, according to the CMO Intentions study. Sophisticated chatbots and virtual assistants can interact in real-time with customers, providing a highly personalized experience. GenAI uses personalized product and service recommendations to cater to individual customers, driving high engagement and deeper loyalty resulting in exceptionally tailored experiences in the shopper journey.
4) Meeting Revenue And Customer Goals Despite Challenges
There is growing pressure for marketers to prove marketing’s impact on campaign performance with 37% of participants in the study stating a need for better execution. While 56% of CMOs reported meeting their revenue and customer acquisition/retention goals, there is still a need to provide ROI, overcome siloed data ownership, and make certain that new platforms and tools are integrated into the IT tech stack. Successful CMOs who met their targets often reported stronger collaboration across the C-suite, highlighting the importance of executive buy-in and cross-functional support. A positive point from the study showed that there is a high level of digital skills and proficiency on the existing teams, with 83% of CMOs stating that their teams possess these skills. However, the skills gap varies greatly based on 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. Approximately 40% of European marketing leaders admit their marketing campaign performance 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 report needing digital skills to improve overall marketing operations, this figure is 40% among European CMOs; This gap in digital proficiency may contribute to the performance discrepancies in different regions. Other factors that can lead to variations in marketing performance include economic climate, geopolitical considerations, variances in data protection, and privacy legislation. Strategic differences between regions could also provide insights into marketing performance variations. North American marketers are inclined to prioritize innovations and new product launches whereas European marketers are more focused on customer engagement.
AI and GenAI Creating Paradigm Shifts For Marketers
“It will not be easy. But in this age, when intelligence is the ultimate competitive advantage, the future belongs to those who are willing to embrace it,” stated Gerber. These takeaways highlight the growing importance of AI in marketing, the need for effective collaboration across functions, the value of customer data for personalization, the pressure to demonstrate marketing impact, and regional variations in marketing strategies and challenges.
The Chief Marketing Officer (CMO) Council and its strategic interest communities include more than 65,000 global executives in more than 110 countries covering multiple industries, segments, and markets. CMO Council research findings are based on a survey of nearly 200 chief marketing executives throughout North America and Europe. Zeta Global Holdings Corp. is a data-driven, cloud-based marketing technology company; it recently achieved an all-time-high stock closing price of $17.42, representing a year-to-date increase of 97%.
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