Buoyed by renewed confidence in the US economy and higher expectations for new business, CMOs say they plan to boost marketing spending over the next 12 months, with B2B products and B2B services marketers leading the way, according to the CMO Survey.
Moreover, the renewed confidence among surveyed CMOs is reflected in their higher financial performance goals:
- Sales are expected to climb 6.8% on average over the next 12 months, up 42% from the 4.8% bump in sales recorded in the previous 12-month period.
- Profits are expected to rise 6.2%, up 59% from the 3.9% profit growth recorded over the past year.
- New customer acquisition is expected to rise 5.7%, up 45% from the 6.2% growth achieved in the past year.
Below, additional findings from the February 2012 CMO Survey, a nationwide poll of senior marketing executives conducted biannually by The American Marketing Association and Duke University's Fuqua School of Business.
Confidence in New Business Growing
One-half of surveyed CMOs expect to win new customers over the next 12 months, and nearly two-thirds expect to benefit from higher purchase volume and cross-selling opportunities:
- 50% expect increased entry of new customers into the market, up from the 42% who did so in August 2011.
- 64% expect increased customer purchase volume, up from 56% six months earlier.
- 62% expect customers to buy more related products and services, up from 33% six months earlier.
However, CMOs are cognizant of customers' shifting priorities:
- Price is becoming less important: 16.4% of CMOs cite low price as their customers' biggest priority, compared with 24.1% who said so six months earlier.
- Service is far more important: 21.4% of CMOs cite customer service as their customers' biggest priority, compared with 13.7% six months earlier.