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Meet Your New MOM (Marketing Operating Model)

by McKinsey & Company

Meet MOM

To drive revenue growth in the digital age, new data shows that marketing leaders are upgrading data-collection technology, collaborating closely with IT, and focusing on test-and-learn agility.

Given their access to one-click shopping, same-day delivery, instant search results, and ubiquitous media, consumer expectations are sky high. Their message to businesses is paraphrased by Veruca Salt in Charlie and the Chocolate Factory: "I want it, and I want it now." In fact, consumer expectations of near-real-time interactions and services jumped to number one on the Association of National Advertisers (ANA) 2016 survey of business disruptions, up from sixth place in 2015.

Technology is a crucial element in enabling marketers to meet those expectations. But technology is only a partial answer, as any marketer whose tech spend has produced less than optimal results can testify. To drive revenue growth and improve customer experience, technology has to enable more efficient data collection, foster cross-functional collaboration, and support test-and-learn agility. It needs, in short, to underpin a new Marketing Operating Model (MOM).

An effective MOM is the engine that drives continual growth. One global financial-services company, for example, figured out that by accelerating the delivery of IT-dependent functions to marketing, the business was able to generate an extra 25 percent of revenue. That was worth $100 million per year. Conversely, for every week delayed in deploying a capability developed by IT, the business lost an estimated $2.8 million in incremental revenue. Read more.