Australia – With consumer spending and marketing budgets shrinking, privacy rules tightening, and AI unleashing a new wave of disruption, CMOs and digital professionals are ill-prepared, a new report from Amperity and Arktic Fox reveals.

Marketers feel unprepared for looming Privacy Act reforms. Even more worryingly, they believe those in leadership positions are similarly unready – only 38% of those surveyed believe their executive group understands the importance of adapting to privacy changes and sees it as a key strategic priority to address.

They also worry they are falling behind their peers in martech utilisation, partly because they lack appropriately skilled staff. On top of all that, many are now fundamentally questioning their martech investment strategy and moving towards combining ‘best of breed’ solutions, rather than relying on a single vendor. 

Marketers’ aspirations

Australian marketers’ focus remains business growth – 77% of respondents said it was a key strategic priority. Growth is tied to customer acquisition, which came in second (48%) on the list of priorities.

So far, so unsurprising. But subsequent priorities reveal marketers hope to fatten the bottom line by leveraging technology. The third most common priority (42%) was “Building our customer data strategy and better utilising our first-party data”, and the equal fourth (36%) was “Digital Transformation”.

The study also revealed marketers and digital leaders remain focused on achieving goals (over the next 12-18 months) that are only feasible with martech tools. Personalisation was classified as “important” or “very important” by 72% of respondents, who were also strongly committed to CX management (87%), online sales and lead generation (77%) and martech utilisation (76%). To put it bluntly, without sophisticated technology and skilled staff, most marketers and digital leaders won’t be able to implement their planned marketing and digital strategy over the next 12-18 months.

“Australian marketers want to take advantage of the available tools,” notes Billy Loizou, Asia Pacific area vice president at Amperity. “The problem – as they are usually the first to point out – is Australian marketers are struggling to execute. That’s hardly a new situation, but when you add in factors such as the rise of Gen AI, imminent reforms to the Privacy Act, flat marketing budgets and Google deprecating third-party cookies, it’s not surprising so many CMOs are nervous.”

Marketers’ reality

Marketers want to – and increasingly need to – leverage technology effectively. Nonetheless, many fear they are falling behind. This was particularly apparent when leaders were asked about their organisation’s data maturity:

  • Only 29% of respondents agreed with the statement, “We are very effective at activating data to deliver great customer experiences.”
  • Only 22% of respondents agreed with the statement, “Our data is well managed and maintained, providing us with high-quality data.”
  • Only 19% of respondents agreed with the statement, “We have developed a unified view of the customer.”

Teresa Sperti, director of Arktic Fox, is worried but unsurprised by these findings.

“When we undertake digital training sessions or partner with clients on strategy, it’s not uncommon for us to have to explain to an organisation’s staff, including its senior staff, where the organisation’s data resides and help them connect the dots around their martech ecosystem. 

“Brands have been trying to develop a unified view of the customer for at least two decades. Yet in 2024, less than one in five of those surveyed could say their organisation had developed a unified view of the customer that could underpin a data-driven marketing approach. This is why there is a growing gap between the haves and the have-nots in spaces like personalisation, experience delivery and more. Brands that have built strong internal capabilities and robust foundations in data and tech are thriving whilst others are finding it difficult to shift gears.”

Sperti also warns that a casual approach to managing data and, in particular, privacy might result in more than suboptimal marketing outcomes. “Businesses could soon be suffering even more dire financial and reputational consequences for failing to appropriately safeguard their customers’ privacy,” she says. “A privacy or spam breach impacts reputation and trust, which is linked to brand performance and preference. So, I’m amazed there isn’t much more focus on improving compliance and ethics by marketers and digital leaders.”

Is it the machines or the humans?

There’s a consensus that Australian marketers and digital professionals aren’t making the most of martech solutions, but there’s debate about why that’s the case.

Those who question the tools point out marketers in many countries have failed to adopt martech solutions with the enthusiasm that was expected. Many CMOs appear to believe they overspent on technology and that investment has failed to meet their expectations and deliver the desired outcomes.

That’s partly due to the shortage of Australians with martech skills. But Loizou points out that the much-publicised skill gap doesn’t explain everything.

“To grossly oversimplify, the approach in the past was to buy the equivalent of a turnkey, off-the-shelf, full-stack solution from a big-name tech company. Given that 80% of respondents in the 2024 study reported their utilisation of martech was ‘average’, ‘low’ or ‘very low’, that doesn’t seem to have worked out well. The understandable but ill-advised reaction is to devote fewer resources to martech and martech staff training. That’s happening to some extent, with only 12% of respondents reporting they plan to significantly increase their martech budget over the next 12 months. But the noteworthy development is the declining popularity of single-vendor solutions. When asked about their plans for current and future martech investments, 14% said they were leaning towards a single vendor, 29% claimed they were open-minded, and a whopping 57% stated they were leaning towards ‘best-of-breed’ solutions.” 

The digital transformation landscape

Both Sperti and Loizou remain concerned about what they see as an overly relaxed approach to digital transformation. Noting that almost all organisations now talk the digital transformation talk, Sperti wonders how serious they are about walking the walk. “Only about one in five respondents said their organisation had been transforming for a “long time”, with long time defined as three or more years,” she says. “And about one in two respondents reported their organisation was just starting, or had only recently started, their digital transformation journey.

The study also found that only 53% of leaders believe their executive group are aligned on digital transformation priorities. 

“When brands aren’t aligned around digital transformation priorities, teams are set up to compete for resources and funding. That drives siloed thinking and that means it takes twice as long to deliver on ambitions. However, when executives lean into challenging discussions and make strategic choices, it enables the organisation to focus on the digital strategies that will deliver the most impact for the business and customers alike.” Sperti says

“With martech, the two big investment priorities for marketers remain CRMs (43%) and marketing automation (41%),” Loizou adds. “It’s good that CDPs [Consumer Data Platforms] are now the number three priority (35%), but I suspect many marketers still don’t fully comprehend how central CDPs are. The elevator pitch is that they allow marketers to improve the quality of their data, therefore an accelerator to fuel smart growth, retention, and foster a data-first corporate culture.”

Loizou doesn’t claim CDPs are a magic bullet. But he does insist that, unlike more popular solutions, they can address some of the pressing issues marketers now face. 

“Just spending more on a marketing automation platform won’t solve messy customer data problems,” he says. “It’s CDPs that do that, as well as provide an enterprise-unified view, which then solves many of the other business-wide challenges organisations face. We live by the mantra better data = better results!”

Singapore – Consumer behavior in retrospect to brand loyalty has seen a greater shift, most notably caused by desire for customers to have their received services personalized and to be recognizing privacy, a report from analytics firm Futurum Research and software company SAS shows.

SAS-Futurum-Research-Customer-Loyalty-Technology-Infographic-2

Significant pandemic-induced shifts in consumer behavior and opinions include changes in loyalty drivers and acceptance of immersive tech. In response, the majority of brands are rethinking superior customer experience and accelerating their technology development and deployment plans to meet the needs of the evolving consumer.

In the report, it is stated that the global state during the pandemic has heightened the interest of the general public to lean towards acceptance of augmented reality (AR) and virtual reality (VR) and an integral part of the consumer process. Due to such response, a third of brands surveyed are speeding up investments in technology over the next two years. Some technologies include voice-based AI assistants, customer support holographics, and augmented reality/virtual reality (AR/VR) technology.

SAS-Futurum-Research-Customer-Loyalty-Technology-Infographic-3

In terms of customer view on technology, statistics showed their interest on the following:

  • Drones – last year, 23% of consumers expected delivery by drone or autonomous vehicle in the coming year; now 60% expect it by 2022. 
  • Smart assistants – last year 65% of consumers expected to use them by 2025, but now 70% plan to use them by 2022 
  • Chatbots – last year 36% of consumers expected to use chatbots to have questions answered or receive customer support about a brand, products or services. Now, 54% want a live person, and not a bot, available to talk to them. 
  • AR and VR – about 69% of consumers surveyed expect to use AR and VR to sample products in 2021. In addition, 63% of consumers are willing to use AR and VR to visit remote locations, up from 56% in the previous survey. 
  • Telemedicine – 67% of consumers are open to telemedicine. 

In a ‘socially distant’ market, hybrid digital and physical experiences have become increasingly common as both brands and consumers look to technologies that provide convenience and safety – from the increased use of telemedicine to contactless payments and online ordering combined with curbside pickup. Brands that want to deliver truly personalized experiences must pivot to include these forms of engagement in the customer experiences they provide,” SAS noted in the report.

Due to such high demand, business disruption has been evident as six out of 10 brands reported that they’re unable to deliver their regular products to their customers. About 28% of brands have been unable to adjust and adapt and are riding things out until ‘normal’ returns. 

SAS-Futurum-Research-Customer-Loyalty-Technology-Infographic-1

In response to such disruption, some brands have accelerated development in online consumers tracking systems for behavior and habits (66%), mobile apps for customer engagement (64%), shared customer records for cross-departmental use (68%) and real-time product or inventory awareness systems (64%).

“The Experience 2030 global study, released in late 2019, clearly indicated that brands are planning to invest heavily in immersive CX technologies and AI-fueled automation over the next decade,” said Wilson Raj, global director of Customer Intelligence at SAS

He added, “This Pulse report stresses that organizations have not changed these priorities, but urgently stepped up these investments to respond to the pandemic and ensuing disruptions. Brands have chopped timeframes in many of the areas identified in Experience 2030.” 

The survey was conducted during June and July 2020, as Futurum Research surveyed more than 600 global consumers, executives, marketers and technology professionals.