Why CMOs Need Predictive Intelligence In Their Stack
If you were to peek into the boardroom these days, you would find that CMOs are measured on one key metric – what is the contribution of marketing to the top- and bottom-line of the business?
Marketing is no longer considered the ‘creative’ side of the house, it’s now a major figure in the revenue & pipeline conversation
This major paradigm shift has resulted in CMOs controlling the acquisition budgets of the business, which has a direct effect on revenue growth. But, CMOs looking to grow their business are running into a couple of marketing challenges:
- Keeping data clean
- Identifying new prospects
- Increasing lead velocity
- Targeting top accounts
Predictive addresses all of these challenges.
5 Ways Predictive Intelligence Helps CMOs Grow Their Business
While each of these areas offers their own unique set of challenges, the underlying requirement for achieving all these goals is to have excellent insights across your marketing efforts. This means fluid communication across your marketing systems leading to even better campaigns that are designed to yield positive results.
Let’s look at how predictive can help in each of these areas:
1) Keeping data clean
Data has exploded in the past few years, but data quality, on the other hand, continues to suffer. In fact, most businesses state that data quality is a barrier to entry because they often don’t have confidence in their customer data.
Only 40% of surveyed executives believe their data is highly accurate
This trend is largely supported by a recent study we conducted where we found that on average, only 70-75 percent of CRM data is accurate. But even for companies that can devote significant resources to data management, data goes stale quickly.
How predictive can help: With predictive, CMOs are able to leverage their internal data and an external dataset that predictive has to offer (like the Radius Business Graph). Besides the additional points of validation, marketing teams are able to leverage key foundational aspects of a predictive product like Radius’ Customer Network Effects, which builds a ‘single source of truth’ for customer data across the stack. This means more accurate, comprehensive, and timely data feeding into marketing campaigns.
2) Identifying new prospects
As marketers, we’re tasked with finding the best prospects who can get value from our product. But to find leads that fall into the demand generation ‘sweet spot’ is easier said than done. Often times, marketing teams are inundated with bad leads, simply struggle to generate enough leads from their marketing engines, or are adding leads to the funnel that are not in their ideal customer profile, wasting marketing dollars and sales productivity.
How predictive can help: Predictive helps marketers drive customer acquisition and revenue growth by filling the funnel not just with more leads, but with leads that will turn into high-value customers.
Using predictive, marketers can leverage historical data analysis to analyze their performance across thousands of business attributes. With this insight and leveraging predictive capabilities, marketing teams can surface segments and prospects with which they’re most likely to have the greatest impact.
3) Increasing lead velocity
The quickest path to revenue is paved by how well you can deliver value to prospects and have them move to a decision-making stage in their buying journey. But this requires an acute sense of what motivates them to buy and where you can deliver the most value, quickly.
How predictive can help: Predictive helps you develop winning strategies with deeper market and customer insights. By identifying key attributes about your target audience based on firmographics, technographics, buying intent, and other signals that indicate likelihood to convert, marketing teams are able to launch a more consultative approach to prospects that yield personalized, high-converting campaigns tailored for that specific audience or segment.
4) Targeting top accounts
Account-Based Marketing (ABM) isn’t just the hottest new term on the block, it’s also one of the best ways for CMOs to drive revenue. But while you may be aware of the impact of targeting top accounts, selecting the right ones to go after can be a challenge.
How predictive can help: The inherent benefit of predictive is its ability to handle more information than any data scientist or marketer can process. Most target account lists are still built through self-prospecting or sales intuition. While they may make for great guidance systems to navigate your accounts, manually-generated target account lists are often prone to bias, and as territories shift and reps change, generating target accounts manually can be a burden.
Predictive models, on the other hand, filter data based on firmographic, intent, and engagement data (at a much larger scale) to analyze patterns and build models that best correlate with eventual success.
Wrapping It Up
Predictive marketing addresses these key areas by enabling better market entry and budget allocation decisions for marketers. It acts as a backbone layer – the system of insights that drives the strategy of every marketing organization.
As a CMO the onus is on you to lead the revenue conversation in your business. Leveraging predictive gives you and your team the necessary tools to sift through the noise and identify your best opportunities.
If you want to learn more about predictive and how other forward-thinking marketers are leveraging it to drive revenue & better business outcomes, check out this Forrester infographic.