Member Article

Five things you need to know about Marketing Orchestration and its part in the next Industrial Revolution

Change is endemic. Confusing. Challenging and not a little disconcerting. But it’s here and we are living with change at a pace and a scale unseen for generations - if not ever.

Imagine the First Industrial Revolution - Dark Satanic Mills making vast fortunes for some and changing the way we live forever. Well, by 2025, the value creation potential of the Fourth Industrial Revolution [4IR] for brands is expected to reach $3.7 trillion; certainly, a figure not to be sniffed at. 4IR is being ushered in by the next phase in digitisation and is being driven by disruptive trends including:

• Leaps forward in connectivity, data, and computational power: Cloud technology, the Internet of Things, blockchain, sensors
• New forms of analytics and intelligence: Vast amounts of data is subject to advanced analytics, machine learning and artificial intelligence
• Human–machine interaction becomes ever more deeply embedded in daily life: Virtual reality (VR) and augmented reality (AR), robotics and automation, autonomous guided vehicles
• Advanced engineering: Additive manufacturing such as, 3-D printing, renewable energy, nanoparticles

But value creation doesn’t just happen.

In order to realise the potential that the 4IR will bring - the ability to orchestrate multiple trends simultaneously, unlock opportunity in once-disparate, now connected operations across markets and design new experiences, products and services from an almost overwhelming volume of analysis and insight will be the name of the game for marketers. We’ve compiled five compelling stats to highlight the role orchestration will play over the next 24 month:

1. A data-driven marketing approach results in six times more profit [Forbes Insight] The foundation of effective marketing orchestration are data-driven insights. The significant increase in profit resulting from a data-driven marketing approach can be attributed to several factors.

Firstly, data-driven insight enables marketers to access and analyse large volumes of customer data, allowing for a more comprehensive understanding of customer behaviour and preferences.

This, in turn, enables them to create targeted and personalised marketing that is more likely to resonate with the intended audience, leading to a higher conversion rate; deeper, more valuable connections and a reduction in the carbon footprint of media.

Furthermore, a data-driven approach allows for more accurate and efficient allocation of marketing resources. By analysing data on customer behaviour and engagement, marketers can identify the most effective channels and strategies for reaching and engaging with their target audience, reducing wasted spend and maximising ROI.

To achieve this level of marketing efficiency and effectiveness, organisations need to embrace marketing orchestration.

This involves leveraging technology and automation to streamline and integrate marketing efforts across multiple channels and touchpoints, creating a cohesive and consistent customer experience.

By integrating data and insights from across the business, marketing orchestration creates a more complete picture of the customer journey and enable more effective targeting. Ultimately, this can lead to significant increases in profitability and ROI, as demonstrated by the sixfold increase reported by Forbes Insight.

2. A well-integrated marketing technology stack increases the likelihood of seeing an increase in marketing ROI by 67% [ABRDN] This is because such a stack streamlines marketing efforts, automates tasks, and enables accurate measurement and analysis of marketing performance. Marketing orchestration is key to achieving this integration and automation, creating a more cohesive and consistent customer experience, and leveraging data and insights from across the business.

Ultimately, a well-integrated marketing technology stack and marketing orchestration enable a more efficient, effective, and data-driven (see above statistic) approach to marketing, resulting in significant value creation.

3. Personalisation at scale can lead to a 5-15% increase in revenue and a 10-30% increase in marketing spend [McKinsey] Personalisation at scale increases revenue and marketing efficiency by creating a more targeted and relevant customer experience. To achieve this, data from multiple sources must be leveraged, such as customer profiles, browsing behaviour, and purchase history.

Marketing orchestration is essential to enabling this level of personalisation by integrating data and automating marketing activities across multiple channels and touchpoints. This leads to more effective campaigns and better measurement and analysis of marketing performance.

4. Omnichannel customer engagement strategies retain an average of 89% of their customers, compared to 33% for companies with weak omnichannel strategies [HBR] The significant difference in Customer Retention Rates between companies with strong omnichannel strategies and those without can be attributed to the ability of omnichannel marketing to create a more seamless and consistent customer experience across multiple channels and touchpoints. By providing customers with a consistent brand experience regardless of the channel or device they use, organisations can increase customer loyalty and satisfaction.

However, to do this effectively brands need to use an integrated technology stack and deliver personalisation at scale across multiple channels, which is why marketing orchestration is critical.

5. Companies that embrace agile marketing can see up to a 20% increase in revenue and a 30% increase in customer satisfaction [McKinsey] The agile marketing approach emphasises the benefits of flexibility, collaboration, and rapid experimentation. It enables brands to quickly adapt to changing market conditions, customer behaviour, and emerging trends. To do this well brands need to prioritise collaboration and experimentation. This can include using Agile Project Management methodologies, such as Scrum or Kanban, to facilitate teamwork and innovation.

Brands should also prioritise testing and measurement to quickly identify what works and what doesn’t, and adjust their marketing strategies accordingly, which is where orchestration comes in. Without it the learnings get lost and continuous improvement is not achieved.

In summary, a data-led, personalised, omnichannel, agile approach to marketing executed through a well-integrated marketing stack will help brands realise the value that 4IR is predicted to bring. But in order to achieve this brands need suppliers that excel in orchestration, as without this expertise there will be no cohesion between these key areas resulting in wastage and untapped value.

This was posted in Bdaily's Members' News section by Richard Calvert .