Forrester Research Identifies Significant Challenges For Integrated Agencies

Integrated Mktng

Integrated Marketing, 360 Degree or whatever you want to call it marketing, continues to be the topic de jour among agencies and marketers alike. Many agencies are clamoring to reposition themselves as “Fully Integrated and Media Neutral”, capable of delivering work across the full media spectrum. Forrester’s latest research suggests that most clients may not be ready for such an agency.

According to a recent survey, conducted by Forrester Research on behalf of Merkle, most marketers lack a holistic view of their customers and communicate with them in multiple silos. As a result, these marketers are unable to adopt a customer centric approach, supported by strategies focused on maximizing total customer value. A situation that is the antithesis of what most integrated agencies offer.

Organization and technology are the biggest barriers: Most marketers claim that they want to send relevant messages to customers and communicate with them in a way that improves the brand experience. More than half of the respondents reported the lack of a single owner of the customer experience, which resulted in silo’d, inconsistent approaches and misaligned goals within the organization. If such a situation exists internally, how could the marketer possibly engage effectively with an integrated agency?

Very few marketers use customer engagement as a primary factor in their communications: Only 11% of marketers said customer engagement was primary and 32% said it’s often a factor. For 20% of respondents, it is seldom or never a factor.

“We struggle to measure customer engagement. We don’t have a system to manage it, in part because nobody has a singular responsibility for managing it. Unfortunately, it’s just not a priority.” (Hi-tech company)

Only one-third employ a contact strategy:  Only 35% say that they have a contact strategy designed to deliver the right message through the right medium at the right time.

Measurement doesn’t drive budget allocation: Almost two-thirds of respondents (64%) continue to allocate budgets across marketing disciplines based on historical spending, and 56% do so simply based on planned activity. Why? –  because that’s what they do. Media mix modeling – which allows marketers to understand the incremental impact of specific media and activity – is used by less than one-third of the respondents.

Marketers are missing the point more than half the time: When assigning credit for a sale or transaction, more than half attribute the activity to the most recent touch point. If a prospect saw a TV commercial, received a direct mail piece, three emails and then searched for an item and bought it from their company, the entire credit for the sale would be allocated to their SEM efforts. Less than a third of marketers calculate fractional attribution across all activity.

All that being said, it would appear that clients, especially the larger clients are not structured in the optimum way to be able to easily engage with an integrated agency. Their internal structures tend to support the ongoing use of independent specialists focused on supporting each of the silos.

That’s probably why everyone has been chasing the Holy Grail of marketing for years now, and the chase will probably continue for years to come.

 

 

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