More than half (51%) of marketers believe that investments in new marketing technologies (MarTech) could increase revenue by 10-40%. However, 59% admit that current investment levels are insufficient for effective digital transformation. Here's an overview of the trends in PEGA's study.
Trend 1: The rise of AI-based personalization.
AI-based decision support and real-time data signals will pave the way for quality personalization. Personalized marketing is nothing new. What will change is the importance and scope of personalization. AI and automation will give rise to unprecedented marketing based on enriched customer data. Specifically, according to the marketing executives surveyed, key performance indicators (KPIs), such as customer retention, cross-selling and customer lifetime value (CLV), will become increasingly valuable in measuring the success of personalization and marketing.
Trend 2: Omnichannel will become ubiquitous... and quite different
Customers expect relevant, unified and contextualized experiences across all channels. Some companies are just starting to deploy their omnichannel strategy, while others are struggling to deliver a connected customer experience. They will have to work harder to boost customer satisfaction and improve their conversion rates. While the demise of third-party cookies seems to pose a threat to the future of omnichannel, marketers are finding new ways to leverage data. Social networks are among the priority channels in the next 5 years at 76% (versus 69% today). The same goes for mobile (67%) and influence (64%).
Trend 3: A revisited buying journey
While only a quarter of respondents cite customer lifetime value (CLV) as one of their current key performance indicators (KPIs), 60% say it will become one in the next five years. Organizations already appear to be allocating resources with this in mind: 70% say the majority of their MarTech budget will be spent on intelligent automation, while 66% also cite AI and 60% Web 3.0 as future investment priorities.
Trend 4: Quality content
Content marketing won't just be one activity among many: it will become a must-have. The battle for SEO and buyer attention will intensify. At 73%, marketing functions cite content creators as indispensable in the next 3 to 5 years. And at 65%, data scientists. Whether in the form of white papers, studies, webinars, podcasts or reports, thought leadership will remain essential to position companies as trusted experts. However, the more academic forms are destined to disappear, says the PEGA report.
Trend 5: Web 3.0 on the horizon!
Among the respondents, 64% of BtoB companies say they want to invest in Web 3.0 (metavers, virtual reality and augmented reality) in the next 3 to 5 years, as well as those in the insurance and telecommunications sectors for data analysis and customer experience management.
Trend 6: CSR, a must have!
Environmental, social and governance (ESG) criteria, as well as corporate social responsibility (CSR), will have to be placed at the heart of marketing strategies, according to the study. Industry leads the list of sectors that will make this a priority (81%), followed by Telecommunications (76%).
Trend 7: A rise in skills
For a quarter of respondents, digital and IT skills, as well as data management and analytics, will be critical over the next five years to support the adoption of technologies to improve customer experience and CLV. These skills will be paramount to mastering AI-based marketing tools that can drive customer engagement throughout the customer lifecycle and deliver value. The marketing manager will need to demonstrate good adaptability and not hesitate to rely on AI to make decisions. Creativity, problem solving and strategic thinking will also be strong assets to succeed in this new world.
*The future of marketing" report / PEGA / Study scope: 750 marketers from 11 countries in various functions (management, data/analytics, customer experience and MarTech).
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