In the New Year, Uncertainty Is the New Certainty

Editor’s note: This piece is part of our Columnist Network series, which explores the tactical thoughts and actions from Adweek’s community of high-level experts. Today's installment is the first in a two-part series from McKinsey partner Kabir Ahuja on growth imperatives for CMOs in 2022. Below, in his own words, he shares five ways to flip the script on this year's learnings. Congratulations, growth leaders! We’ve survived another year of remote/hybrid work, quarantine and seemingly endless video conferencing. And while 2021 wasn’t easy, we also experienced immense transformation—10 years of digitization in three months, a deeper appreciation for the purpose of the work we do and a reminder of the power of brands in nurturing holistic growth. So what comes next? In a time where uncertainty is the new certainty, what are our growth imperatives going into 2022? Here are five of the 10 priorities that apply across industries and geographies. These five address how marketing and sales capabilities can evolve to enable growth transformation. Double down on your customer Customer expectations have ramped up drastically in recent years. While personalized experiences used to be a differentiator, now they’re table stakes. According to our latest report, 71% of customers expect personalization, and 76% get frustrated when it’s not there. It takes a confluence of people, processes and technologies to deliver exceptional experiences, from data and piping into customer-facing systems to agile working methods and talent. But true customer centricity requires a much deeper understanding of the levers to pull, how customers interact with each other to create a flywheel effect and what patterns keep them engaged. One complicating factor to plan for is the upcoming cookieless future. Tracking will get harder, which reinforces the need for the right plan, people and capabilities to not only meet but also exceed customer expectations. Master your omnichannel approach An omnichannel customer experience is no longer a new concept: Seventy-three percent of senior executives say it’s a top priority, especially during a pandemic that forced quick adaptation from b-to-c and b-to-b companies alike. In some industries, we have seen digital adoption increase to near 100% but then dip back into the range of 80% to 90% once in-person interaction was an option again. Armed with sophisticated customer analytics and insight, now is the time for growth leaders to shift from stitching together different steps of the journey to reimagining from the ground up to deliver experiences that are intuitive, connected and personalized. Be worthy of brand loyalty Covid-19 has shattered brand loyalty—and consumers have unleashed their superpowers. Don’t believe me? According to McKinsey’s latest b-to-c research, 75% of consumers have tried new habits since the start of the pandemic, and 40% have switched entirely. This has forced brands to reevaluate who and what they stand for, building a strong and enduring link between profit and purpose. To that end, there has never been a better time to think through an organization’s value proposition and its relationships to customers, employees and society at large. Much like personalization, a visible and actionable commitment to environmental, social and governance (ESG) objectives is now expected. Growth must be both sustainable and inclusive to deliver long-term stakeholder impact. To help build a brand worthy of long-term loyalty, the chief marketing officer must serve as a co-pilot to the CEO to drive growth and burnish the company’s purpose into its value proposition and relevance to customers. Activate full-funnel spending to fuel growth We all have growth aspirations, but we don’t all have answers for how to self-fund this growth by shifting spend into areas with higher returns—upwards of 15-20 percent lift in marketing ROI. With an explosion of new customer data and analytics tools, the time is now to revisit marketing and sales spending. With channel and spend reallocation and more efficient digital marketing and sales, a full-funnel revamp of spending can free up meaningful resources to fuel growth. Scenario plan and protect the growth budget Looking to 2022, there is much reason for optimism. But given Covid-19, geopolitics, inflation and semiconductor shortages, 2022 will also bring a lot of uncertainty. Growth leaders must plan for these scenarios because growth marketing budgets are often the first expenditures cut. Establish a planning team now to determine reallocation of resources and investments, which areas to protect and how to think about maximizing your ROI. It’s a lot to chew on—and we’re only halfway there. See you for Part II on setting your team, your organization and yourself up for success.

Columnist Network

For 2022, Uncertainty Is the New Certainty

From cookieless personalization to worst-case-scenario planning, now is the time to rethink everything

Kabir Ahuja

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Kabir Ahuja