Source: Accenture infographic.
A recent report from Accenture, based on a survey of over 500 chief marketing officers (CMOs) globally, suggests that just-in-time marketing can lead to a greater return on investment and significantly boost revenue growth. Companies using this method are three times more likely to surpass their competitors in terms of revenue growth.
Just-in-time marketing focuses on crafting relevant marketing content precisely when needed and tailoring it to appeal to interested consumers at the exact moment they are ready to make a purchase. In contrast, mass marketing strategies prioritize creating vast amounts of content to reach the widest audience possible. The survey indicates that this broad approach is becoming less effective, as CMOs report that only around 20% of the customers typically reached are genuinely interested in or able to purchase the advertised product.
Thomas Mouritzen, MD of Accenture Interactive, ASEAN, notes that leading marketing organizations are adopting just-in-time practices to unlock value through increased efficiency and improved market positioning. This success stems from their ability to connect with customers at the precise moment of need and minimize wasted resources.
Accenture’s research highlights the areas where just-in-time marketing organizations excel. Thirty-eight percent of companies identified as utilizing just-in-time marketing have experienced annual revenue growth exceeding 25%, significantly outperforming their peers, only 12% of whom can say the same. They are also ahead in several key capabilities: prioritizing the reduction of marketing inefficiencies (82% compared to 49% of peers), effectively delivering the right message to consumers at the right time (57% report high satisfaction compared to 36% of peers), possessing specialized analytical skills to extract actionable customer insights (87% compared to 67% of peers), seamlessly integrating digital and traditional marketing initiatives (58% report “very highly integrated” compared to 19% of peers), and demonstrating greater autonomy in IT investment decisions (58% report “complete independence” compared to 14% of peers), indicating a more collaborative CIO-CMO relationship.
Mouritzen emphasizes that just-in-time marketing organizations provide more fulfilling and engaging customer experiences. To meet the demand for personalized experiences, these organizations have adapted their marketing strategies by incorporating digital tools and analytics. He believes that success will come to those who can effectively balance creative excellence with rigorous operational efficiency.
The report outlines key steps for marketing organizations transitioning to a just-in-time model. These include: streamlining operations, training personnel for rapid execution, and fostering a more agile decision-making process based on data-driven insights; actively listening to social media cues for immediate action and leveraging unstructured data for decision-making; and prioritizing individual customer interactions alongside broad campaign strategies to ensure quality engagement. This means moving beyond solely addressing the masses and recognizing the importance of early adopters who often predict future trends.
Duncan Eadie, MD of Infrastructure Services, Accenture Operations, ASEAN, highlights the increasing pressure on marketing organizations to deliver tangible business results. He suggests that to gain a competitive advantage, traditional marketing organizations should invest in capabilities and technologies that transform their operations, moving towards a more service-oriented approach.
Interested?
Watch the video Waste or Win? The Case for Just-in-Time Marketing
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*For the report Building the Just-in-Time Marketing Organization the Accenture Institute for High Performance surveyed 532 chief marketing officers between September and November 2015. Participating CMOs represented companies headquartered in 11 countries, across 10 industries, with reported revenues of more than US$1 billion.