Outdated marketing team structures are hampering brands’ chances of achieving a single customer view

Companies of all sizes see achieving a single customer view as a top priority, but their efforts are being thwarted by outdated organisational silos that split marketers by channel, not customer, new research finds.

trendspsd2

Achieving a single customer view is a goal for companies across every sector, as brands push towards delivering a seamless, personalised experience. The ability to harness the behavioural insights offered by customer data is becoming ever more essential for marketers to communicate with consumers to best effect.

However, true data clarity is being hampered by fragmented organisational structures that split marketing teams by channel, rather than customer. According to a global survey of 1,100 marketers by Experian, channel-focused structures create ‘siloisation’ of information, making it difficult for businesses to obtain an in-depth customer view.

The biggest barriers

According to the survey 81% of marketers see developing a single customer view as a challenge, yet despite the difficulties 97% recognise the importance of having a truly holistic understanding of customers.

The fact technology does not always allow customer data to be integrated in real time is the biggest barrier for 54% of respondents, followed by the inability to integrate multiple data sources (49%) and the struggle to access data across the organisation (48%).

Tom Blacksell, Experian managing director of marketing services, UK & Ireland, argues that these data challenges result directly from fragmented internal structures.

“The single customer view needs to use all your insights from every channel and every touchpoint, otherwise you’ll never be able to offer a seamless experience,” he says. “If a single channel is separate, how are you going to be able to communicate with the customer as a brand in anything but a disjointed manner?”

Bigger businesses have more issues

The data shows 29% of respondents work in a company where marketing teams are broken down by channel, with 41% operating in teams described as only ‘somewhat integrated’. However, less than a quarter (23%) of those surveyed see overcoming internal silos as one of their top three challenges when creating customer-centric programmes.

trendspsd1

When splitting out responses by business size, the research shows that silos are more prevalent in larger, enterprise level businesses, where 59% of marketers work in teams broken out by channel.

Experian classes enterprise level businesses as those with a turnover of more than $1bn (£767m), which due to their maturity have often grown up in the offline world and evolved into multichannel structures over time.

As a result, larger businesses are 31% more likely to encounter issues. But, encouragingly, eliminating internal silos is a top priority for 42% of C-level executives at these companies.

The smaller the company, the less likely teams are to be split out by channel, as 26% of marketers in mid-market companies are divided this way, which drops to 19% for small businesses.

According to Experian, mid-market organisations – those with a turnover of $25m (£19m) to $1bn (£767m) – exhibit similar challenges to larger businesses but on a smaller scale. However, they often have fewer resources to solve the problems. Having grown up in the multichannel world, smaller market companies – those that turn over less than $25m (£19m) – are often characterised by a natural agility and lack of organisational silos.

trendspsd3

“Big brands need to change the way they operate in order to put the customer experience first,” argues Blacksell. “Small companies are naturally swifter and more flexible. Often their marketing teams are fully integrated simply because they are a single team already. It’s a painful process, but big brands need to do what they can to break down those channel barriers.”

Financial services is the least integrated sector

Looking at specific industries, financial services is the least integrated sector, according to the study, given that 44% of marketing teams continue to be split by channel. More than a third (35%) of media and entertainment teams are broken out by channel, while 33% of marketers working in travel and hospitality work in silos.

Conversely, the most integrated marketing teams are likely to be found in agency and marketing services businesses (37% of which are fully integrated and 33% somewhat integrated), followed by consumer electronics companies (31% and 38%) and retail and ecommerce businesses (31% and 47%).

When looking at the data by region, the UK lags behind in its level of marketing team integration, with only 31% of those surveyed working in fully integrated teams. This compares unfavourably to South America (42%) and North America (38%).

Blacksell argues the goal of achieving a single customer view is being held back by the sheer level of internal change companies need to implement across their departments.

“The single customer view affects not just marketing, but operations, customer relations, IT and more. Because of this we’re talking about reorganisations across multiple channels and multiple teams,” he concludes.

“Customers don’t see individual channels, they see a single brand. When they tweet you, they expect you to know and understand who they are. In order to deliver relevant experiences, you need to be able to communicate with them as a single brand having a conversation with an individual. The holy grail of marketing is one-to-one interactions.”

Hide Comments1 Show Comment
Comments
  • Rob Sutton 5 Sep 2016 at 8:14 am

    Smaller businesses are more agile…marketing people blame lack of data (shock, horror)…corporate structures inhibit performance. Never heard any of that before! Single customer view is definitely the real buzzword at the moment with untold sums being invested…I would love to know who is doing this really well at the moment (other than small businesses, who do it every day ). Could it be a holy grail?

  • Post a comment

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here