Executive
Perspectives

The Future of Sales andMarketing Is HereFebruary 2022

Changing consumer expectations

E-comm growth

New channels emerging

80%

64%

19.5%

37%

$1.3Tn

Of consumers saythey are more likely
to do business witha company if it offers
personalized
experiences

Of consumers expect
companies to
respond andinteract with themin real time

Of total global
retail sales arethrough e-commProjected CAGR of
intelligent virtualassistant market
size from 2020 toExpected market forthe metaverse1 by
2030 (40%+ CAGR)(up from 13.6% in
2019)

2027

1. Metaverse market proxied by 'extended reality' - a term referring to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables. Note: Augmented reality (AR) adds digital elements
to a live view often by using the camera on a smartphone; virtual reality (VR) refers to a complete immersion experience that shuts out the physical world. Sources: BCG & Natixis Explore Tech survey, Allied Market Research, web search, BCG analysis,

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Consumer behavior is evolving, necessitating shifts in sales and marketing2The future of sales and marketing is here

Summary

1

2

TRENDSIMPLICATIONSFOR LEADERS

2

Customers now expect hyperpersonalization, ultraconvenience, augmented experiences, community connection, and sustainability

3

Across B2B and B2C, new sales channels are emerging that are geared toward remote, voice, gaming, and social

4

As a result, the role of traditional sales channels is shifting toward convenience, entertainment, immersion, and personal touch5

At the same time, technological innovation is fueling this exponential change: AI, AR/VR, the metaverse, NFTs, crypto

6

Yet, privacy concerns & 3P cookies phaseout present a challenge, prompting a focus on zero- & first-party data and data partnerships

1

Leverage deep customer insights—demographics, needs, context—to develop and prioritize meaningful demand spaces

2

Optimize and personalize each micro-moment of interaction across channels—to win the ever-intensifying “attention wars”

3

Revisit your channel strategy—focus on a seamless integrated experience across channels matching individual preferences

4

Reinvent traditional sales channels—with a clear customer value proposition, leveraging new technology

5Don’t be shy about exploring new channels—emphasize experimentation, understand value drivers, and focus on big opportunities

6

Kill boundaries between marketing, sales, and services and infuse new talent—to spark innovation and drive cross-channel success7

Combine data and tech capabilities—to allow for a single customer view across teams and end-to-end engagement

8

Redefine the measure of success—shifting from channel to customer-first perspective; deploy holistic rigorous ROI measurement

Sources: BCG analysis and case experience.

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1 The pandemic has permanently increased time spent online and brought new digital users, accelerating e-commerce growth31.1 The pandemic has permanently increased time spent online and brought

Consumers now spend more time online…

….accelerating the growth of e-comm and digitally influenced sales

Average time spent per day by media type in US, 2015–2022 (mins)1

E-comm share of total global retail sales, 2015–20241,7

500

Digital~18%
increase

450

25%

20%

400
350

Of US retail sales will be digitally
impacted/influenced by 20233

16%

Increase in e-commerce users in ASEAN,
China, and India during pandemic4

15%

Rise in new users of e-payments acrossTraditional
300

~60%

15

16

+14%

17

18

19

20

21

22e

Increase in digital-marketing budget reported
by CMOs in 2021 vs 2020 in the US (vs stagnant
traditional spending, after 5% decline in 2019)2

15-24% Southeast Asian countries5

10%

Permanent store closings in the US in

5%

15

16

17

18

19

20 21e 22e 23e 24e

12K+ 2020 (vs 6K in 2018)6; 6K+ in UK, 2020

1. Statista, BCG research; 2. Change in digital vs. traditional marketing budgets per US CMOs, 2012-2020; 3. Forrester Research, “digitally impacted” comprises sales occurring either online or in-store but influenced by digital technology; 4. OECD report "Digital
Transformation in Emerging Markets, May 2021"; 158 million users added, % calculated using 2019 e-commerce user numbers in ASEAN (655 million inhabitants, 26% e-commerce users—DBS Bank), China (710 million ecommerce users in 2019—Statista), andIndia (135 million ecommerce users—Statista), 5. 2020 vs pre-COVID—BCG CCI COVID-19 Consumer Sentiment Survey 2020; 6. Fortune; 7. Lower end of e-commerce share of global retail sales: 22.5% (eMarketer); Other sources: BCG, Fast Track to Digital Marketing
Maturity, Building Bionic Capabilities for B2B Marketing

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new digital users, accelerating e-commerce growth41.2 Customers expect hyperpersonalized engagement, ultraconvenience,

Hyperpersonalization

Real-time, ultraconvenience

Cutting-edge experience

Community & connection

Sustainability & purpose

Explosion of customer
solicitation emphasizing brandcommunication and offering
relevance

Shift to online and newtechnologies raising standards
especially for checkout, delivery,
and aftersales

Beyond physical stores,
augmented experiencesbuilding on customer
emotions

Connection with communities
around passions/similarinterests and brands withsimilar values

Close alignment of value
systems—championing
sustainable products andoperations, investing in ESG

63%

Of millennials are willingto share personal datato get personalized
offers and discounts

65%

Of millennials had an
active Amazon
Prime membershipin the US in 201979%

Of customers say theexperience provided
is as important as the
product sold45%

Of Chinese consumers'purchase decisions are
influenced by key
opinion leaders/
influencers

78%

Of consumers globally
admire companies
that take action to
reduce their impact
on climate change

These expectations span customer demographics—with a stronger emphasis by Generation Z and millennials
Sources: Ocean Insight consumer trend survey; BCG Social Retail Playbook; BCG consumer trend survey; Statista; Salesforce; Shoptalk; desktop research; BCG analysis

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augmented experiences, community connection, and sustainability51.3 Across B2B and B2C, new sales channels are emerging that are geared

Nontraditional sales channels optimized over past decade (e.g., social, video, livestreaming); new ones emerging:
In B2BIn B2C

Proposition:

Voice:
Strong potential

Gaming:Gaining momentum

Remote/hybridinteraction: Will stay

Improving context, sentiment & emotion
understanding, common-sense reasoning

Offering new form of augmented social
media with in-game ads, immersive features,and built-in transactions

Offering high value to both buyers(e.g., better response times) and sellers(e.g., elimination of travel time, use of data)

Intelligent recommendations and actions

1.2bn

Active voice AI-capable devices
already installed by 2020

34%

Projected CAGR of global
intelligent virtual assistants1

Expectations: Evolution to platform economy—with afew dominant players
Winners will have control of inclusion andranking of third-party offerings2

29%

Projected CAGR for advertising
spending in mobile gaming3

2-3x

Productivity of sales reps sellingover the phone/video vs field sales

86%

Of those who purchased in-gamevirtual item/skin also purchased
the corresponding physical item

60%+

Productivity increase of field reps
moving to a hybrid selling model

Increase in use cases, e.g.,- Customer data collection- Limited products launches- Virtual product concept testing, etc.

Sales reps becoming product experts, withlarger collaboration between reps
Deployment of AI in “all-in-one” sales CRMs tosuggest the next-best action in a sales cycle

Increasing importance of seamless cross-channel experience, especially given ever-more-diverse channels
1. From 2020 to 2027; 2. e.g., limited ability of voice to display many choices; 3. Global advertising spending CAGR from 2021 to 2025
Source: Statista, Web search; BCG experience; BCG-Altagamma True-Luxury Global Consumer Insight Survey Mar/Apr 21 (12K respondents in 12 countries)

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toward voice, gaming, and remote/hybrid interactions6

1.4 As a result, the role of traditional sales channels is shifting toward

convenience, immersion, entertainment, personal advisory & product touch
Guidance and validation from knowledgeable
source especially for high-technicity or highticket purchases

Community of afficionados
and blends real and virtual inunique and entertaining ways

Lowe’s Holoroom How To customers mix virtual paint,
apply plaster to virtual walls
Chanel's pop-up store modeled asa nightclub

Advisors could beam incustomer's homes throughMicrosoft “Holoportation”

Uniqlo headsets
measure neural activity
to recommend T-shirts
matching customer moods

Automotive parts manufacturer
using VR to demonstrate
products at B2B trade show

Ultraconvenience

Immediate fulfillment of basic needs,
ever-closer proximity to the consumer

Product touch and feel

Direct sensory encounter with products before buying
Hyundai and Audi dealerships'
AR features allow visitors to see color
and trim variations on real cars while
reducing the volume of inventory
Monoprix “city center” strategy relying on
small, fully automated stores open 24/7

Zippin's checkout-free hotel
store in Japan

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Personal trusted advisory

Immersive exploration

7

At the same time, technological innovation is fueling this exponentialchange: AI, AR/VR, the metaverse, NFTs, crypto

Artificial intelligence• Hyperpersonalization at scale, continuous
learning, and adapting next-best action

AR/VR1 and metaverse
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• Lead management automation, personalized/dynamic pricing,
precise cross-selling, tailored engagement to improve close rates• Processes automation, e.g., chatbots, self-service, no-/limited-humancontact support (increasingly preferred by Gen Z consumers)• Immersive customer engagement—ability toconnect at a deeper level and create unique virtual
communities and experiences

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• Virtual remote experiential sales (e.g., demonstrating products)• Rich emotional data gathering (e.g., 20 mins in VR enables ~2m records2)• Product concept testing without costly prototypes

Uses AI to generate custom emails tied to brand tone, customer
needs, and specific promotions using linguistics models

Launched Hyundai Mobility Adventure metaverse space whereusers can meet, trial new models, & experience Hyundai offerings

Crypto4

NFTs3• Opportunity to tokenize access tounique experiences and products
and build community• New interactions and storytelling opportunities to attract
early adopters as customers
Launched NFT to create buzz around McRib's return;
95k entered the competition for 10 unique McNFTs

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• Enhanced trust and transparency (e.g., unalterable
ledger, customer validation, product traceability)• User attention monetization and elimination of some unnecessary
ad network expense (e.g., via Basic Attention tokens)

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• Reduction of transaction cost and disintermediation
Reportedly working on implementing Ethereum payments on its
platform

1. AR: Integration of digital objects with the physical world to enhance the environment; VR: Immersion in a virtual 3D world that does not interact with the physical world; metaverse: Immersive virtual world experienced synchronously by an unlimited
number of users, each with an individual presence; 2. Unique records of body language; 3. NFTs (non-fungible tokens): Unique tokens with provable ownership of the attached data, typically art or collectibles; 4. Crypto: Digital currency designed as a medium
of exchange through a computer network that is not reliant on any central authority, Sources: Web search, BCG experience and analysis

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1.5

8Metaverse platforms are likely to become a channel with
$1.3 trillion potential by 2030

Consumers signal readiness…

… and Big Tech increasingly investing“Meta” rebranding; $10bn
metaverse investment

65%

Mixed-reality feature Mesh forTeams; $70bn acquisitionof Activision Blizzard
Launch of AR glasses forvirtual meetings

Of Gen Z consumers have spentmoney on a virtual item that exists only
within the confines of a video game

$1.3tnReorganization of AR/VRteam, Google AR glasses,
acquisition of North1

Expected market size for extended reality2
by 2030 (40%+ CAGR)

1. 2020 acquisition of Canadian human-computer interfaces and smart glasses; Sources: BIS research, Web search; BCG analysis and experience; 2. Extended
reality is a term referring to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables;

Breakthroughs expected in 2022
Despite slow adoption of AR/VR so far—due to limited
applications, bulky hardware, immature UI/UX, and low
accessibility—several breakthroughs expected:

Devices• Convergence of AR/VR in the first mixed-reality devices(e.g., Meta, Apple) with quick use cases
Content• VC investment will mature startup space• Integrations with current systems will solve content
bottlenecks (e.g., limited content)• But interoperability will remain limited (long-term
open platforms likely to get an edge)

43%

Share of value expected to accrue tocontent providers by 2025

Enablers• Doubling down on 5G and computing power—yet these
are likely to remain a challenge
Corporate adoption• Corporates will communicate their strategy anddeploy first AR/VR use cases at scale

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1.5

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1.6X Privacy concerns and the expiration of 3P cookies present a challenge,

Data privacy requirements and distrust drove
shift away from third-party cookies
72%

Of North American consumers would stop buying from acompany or using a service because of privacy concerns1

Concerns about data privacy and tech safety vary by country2

Increasing focus on data capture, yet gaps remain

88%
Only

21%
High
FRA

26%

CAN

UAE

MEX GER

BRA

US

IDN

JPN

IND

CHN

Of CMOs plan to invest in
first-party data capture
and management in 20225
Of companies have aclear strategy to fully
close data gaps6

1.5-2.9x
57%

Uplift in revenue for companies
using first-party data for key
marketing initiatives7
Of companies in Asia-Pacificsay they are not effectively
leveraging first-party data7

Low

Top data capture sources:

RUS

Increase in ad blocker use globally in past 5 years3
driven by: disruptive advertising and security concerns

3P cookies phaseout: Google (late 2022), Firefox and Safari (done)
Governments have introduced privacy regulations (e.g., GDPR4 )78%• Voluntarily shared data in exchange for value:
Zero- e.g., access to content, discounts, services, loyalty
party • Progressive registration/profiling, single signon (using Facebook/Google profiles)

More data sources used bydigitally mature companies
than their less-mature peers• First-party cookies (e.g., browsing behavior)Firstparty • Transaction data (incl. traditional non-B2C
companies launching D2C propositions)
Partners• 2P and 3P data-sharing partnership8

1. BCG, Responsible Marketing with First-Party Data; 2. BCG CCI research on global drivers of consumer choice, September 2020-February 2021, average n per statement = ~8,400, per country sample ranges from 1,100–1,600 respondents; 3. 2015-2020; 4. EU regulation on dataprotection and privacy in the European Union (EU) and the European Economic Area (EEA). GDPR's primary aim is to enhance individuals' control and rights over their personal data and to simplify the regulatory environment for international business; 5. If they haven't done soalready; BCG & Forbes CMO Insights survey; 6. BCG, Measurement Done Right; 7. Google-BCG research in 2020 on responsible marketing with first-party data in Asia Pacific; 8. Second-party partnerships constitute consumer data shared by partners based on specific agreements(e.g., profile data collected, aggregated anonymized POS data); third-party partnerships include data bought from agency partners (e.g., trends, consumer demands, segments) or context data; Sources: BCG research and experience

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prompting a focus on first- & zero-party data and data partnerships

10

January 21, 2022

The metaverse set off a battle between
tech giants to build virtual andaugmented reality headsets

December 10, 2021

2022: AI and hyper-personalisation will
become table stakes

Sources: BCG, press search

January 5, 2022

January 19, 2022

The future of marketing is building a
privacy-safe worldOmni-channel personalization is the
future of marketing: The onset of a
new eraDecember 20, 2021

First-party data collection is morecrucial than everFebruary 1, 2022

Traditional B2B sales and marketingare becoming obsolete

January 1, 2022

2022 will be the biggest year for the
metaverse so far

January 19, 2022

Microsoft’s $75bn bet on Activision
sets off content wars in gaming

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In the news | Personalized seamless omnichannel interactions, adoption of
new channels, and reinvention of traditional channels are main areas of focus

11Personalize customer journeys and reinvent sales channels; combine sales,
marketing, and customer service capabilities to enable the change

Implications for leaders

Adopt customer-first
approach

Future-proof sales
channelEnable integrated
operations

Sources: BCG analysis and case experience

1

Leverage deep customer insights—demographics, needs, context—to develop
and prioritize meaningful demand spaces

2

Optimize and personalize each micro-moment of interaction acrosschannels—to win ever-intensifying “attention wars”

3

Revisit your channel strategy—focus on a seamless integrated experience
across channels matching individual preferences

4

Reinvent traditional sales channels—with a clear customer value proposition,leveraging new technology

5

Don't be shy about exploring new channels—emphasize experimentation,
understand value drivers, and focus on the big opportunities

6

Kill boundaries between marketing, sales, and services and infuse new talent—tospark innovation and drive cross-channel success7

Combine data and tech capabilities—to allow for a single customer view acrossteams and E2E engagement

8

Redefine measure of success—shifting from channel to customer-first perspective

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2.1 Leverage deep customer insights—demographics, needs,

context—to develop and prioritize meaningful demand spaces

Determine fundamental drivers of consumer choice• Understand precise emotional, functional, and technical needs by occasion/context and over time
• Statistically narrow down key drivers of choice

Run analytics to identify demand spaces—at the intersection of drivers of choice and needs• Determine “axis of segmentation”: what drives distinct needs (e.g., context, occasion preference, etc.)• Develop comprehensive, singular demand map—with no overlapping demand spaces

Bring demand map to life with demand space personas• Outline contextual, behavioral, demographic data, and needs defining each persona• Quantify attractiveness and size (revenue/profit/growth potential) of each space/persona

Determine priority personas: identify opportunity and right to win• Assess own and competitors' perceptions, strengths, and weaknesses in each demand space• Weigh how to win with your capabilities in the space; identify priority (white) spaces to pursue

Translate persona needs into target proposition• Reimagine the “perfect” experience for each persona, embed findings in personalization algorithms• Determine gaps in current proposition (e.g., product and pricing, channel mix, interactions, journeys)

Source: BCG analyses and experience

Indian alcohol beverage
manufacturer
Nine demand spaces
identified based on
extensive consumer survey.
Determined specific pricing,promotion, and productoffers for selected spaces+5%

Market share inselected segments

2x

Growth vs industry+10% Gross profit

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Traditional segmentation methods have limitations, as they do not focus on drivers of choice.
Demand Centric Growth is a consumer-centric way of defining meaningful segmentation

Example13

2.2

Optimize and personalize each micro-moment of interaction
across channels—to win the ever-intensifying “attention wars”
Examples<5%

Growth of time spent
online per annum

1

~0%

Only

Increase in time on social
media stagnating2

2.8

Loyalty schemes people
participate in, on average

3

Optimize each micro-moment

Go beyond a “segment of one”

Drive consistent comms• Determine the purpose of eachcustomer moment of interaction• Be bold: redefine, add, and remove
interactions to drive outcomesconsistent with your sales strategy• Go beyond segmentation• Deploy atomic approach to content
production and delivery1• Build predictive, iterative segmentof-one algorithms2, capturing
behaviors at different moments• Align on KPIs with partners to ensure a
consistent objective• Establish a “fail fast, learn fast” culture,embed collaboration tools and direct
data sharing with partners early on

To enable, focus on first-party data and make data capture attractive••••

Invest in complementing data-capturing techniques to tackle growing privacy regulations
Make data sharing worthwhile for the customer (e.g., access to content, discounts, services)
Engage or orchestrate data partnerships
Master/closely partner with GAFAM walled gardens3

Implemented customized 1:1
offers and recommendations
evolving with behavior, timeof day/week, etc.

8%

Memberrevenue growth

3x

Engagement inmarketing comms

Leveraged an IoT-capablevending machine to analyze
customer's body health andrecommend the perfect drink

343m

Impressions onsocial media

60K

Visits during 14-dayfeature period

1. Advanced version of dynamic content involving modular components of creative assets to curate personalized content for each customer in real time; 2. “Segment of one" predictive analytics driving unique selling moments in the journey with personalized
product/service, channel, moment in time (of day/year); 3. GAFAM = Google (Alphabet), Apple, Facebook (Meta), Amazon, and Microsoft; walled gardens = unified data and software ecosystems; Sources: BCG analysis, research, and experience

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More brands are trying to connect, but customers' overall interactions capacity is finite

14

2.3

Revisit your channel strategy—focus on a seamless integrated
experience across channels matching individual preferences

Understand channel interplay

Build seamless cross-channel interfaces

Continually experiment and adapt• Determine the value of each channel,
including second-order effects, e.g.,brand impressions, loyalty, community• Analyze how channels work together• Deploy customer-first view (rather thanchannel-specific objectives)• Allow for delineated customer experiences,
preparing for multiple new touch points• Invest in a segmented approach forrolling out new channel initiatives withtargeted use cases• Ring-fence budget for granular customer
research to explore the art of the possible

Frictionless integration of stores,
app, social, & new tech in stores:• In-store AR mirror and app
feature to try make-up andupload looks to social media• AI feature scanning customer
face to find right foundation• Connected offline-online
basket, same-day order pickup

13%

Define role and tailor proposition of each channel

Enable smooth cross-channel transition• Determine best channel fit for each customer and part of theirjourney (e.g., based on buying patterns, preferences, needs)• Leverage new channels to enhance discovery and inspiration;
innovate parts of the journey (e.g., customer care via voice/VR)• Consider blurring the lines—e.g., voice/gaming/AR in stores• Revisit product mix and pricing in each channel• Recognize supply chain implications, invest in multidirectional product flows, integrated stock management, etc.
• Break functional siloes and align KPIs, incentives, andremuneration to limit channel conflicts (see pages 18-20)

Sources: BCG analysis, research, and experience

Uplift in in-store
order values if visit
app the previous day

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Examples• Clear channel roles for each
persona to ensure highest valueadd per channel given needs• KPIs & formal responsibilities
on cross-channel consistency• Harmonized product & pricing
and data flows across channels
15

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2.4 Reinvent traditional sales channels—with a clear customer
value proposition, leveraging new technology

Reinvent
traditional
channels

Ultraconvenience

Product touch and feel

Immersive exploration

Personal and trusted advice

Use dense network of smaller stores

Focus stores on products whose
qualities cannot be reduced to specs
on a web page

Build experiential capabilities—e.g., retail as entertainment, gaming,
mixed reality

Refocus stores on services
difficult to replicate remotely

Shrink delivery time (e.g., restaging
inventory, drop-off lockers, drones,
curbside pickup, 3PL deliveries)

Improve digital display using
advances in browser technology

Enhance customer recognition
across channels to ensure highquality, personalized advice

Target useof new techConsider near-real-time productmanufacturing and dematerialized
formats (e.g., instant book download)

Explore haptic technology,
recreating conditions of product uses

Fast-track AR and VR throughrapid test-and-learn cycles

Explore investing in bots andautomated advisory powered by
NLP2 and “AI empathy”

ExamplesAmazon Go “grab & go” with no scan,
automated, in-app checkout/payment

Canada Goose’s 10°F “cold room”
with Alpine dioramas and simulated
snowstorms where
customers cantrial their gear

IKEA's Place app lets users placefurnishings in their space in real time

Cisco's AR catalog helps reps show B2B
customers products “at scale” anddemonstrate unique value features

50%

More sales in Amazon Go
stores on avg. vs. typical store1

25%

Of all Canada Goose
stores have a "cold room"#2

Most popular app on Apple's
ARKit based on downloads

2.5k+ Weekly application users

Continually assess the interplay between channels. Set up metrics to track second-order effects of traditional sales channels, e.g., engagement
Sources: BCG analysis and experience; press search

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Realign role of channels to the new reality—consistent with our cross-channel strategy. Prioritize one or two of the following functions.

16

2.5 Don’t be shy about exploring new channels – understand value
drivers, focus on experimentation and big opportunities

1. Experience the new channel• Embed new channels in your teams' DNA—organize demo sessions and experiences• Form an innovation squad to brainstorm sources of value; include external talent withexperience and out-of-the-box thinking (e.g., VR gamers for metaverse)

2. Assess its role and value-add for customer outcomes

Launched a virtual restaurantfor Halloween brand activation,offering awards to first 30K users• Understand potential value drivers and role within E2E customer journeys1• Think beyond sales—e.g., customer experience, data, engagement, loyalty

3. Determine impact on other channels, yet don’t let channel conflicts limit you• Identify a unique role—but also be ready to self-disrupt in overlap areas• Decide whether it is the right time to engage in the channel

Started selling digital sneakers
for use in virtual worlds, e.g., on
Roblox, a gaming platform

4. Prioritize learning and experimentation in use cases• Define your involvement (e.g., metaverse: as a creator, user, tech provider)2• Prioritize use cases—based not only on value-add but on feasibility• Don’t expect returns on the first pilot; instead, aim to identify sources of advantage3

5. Communicate and partner externally early on• Communicate externally: new channel, goals, and areas of focus• Build connections early—to gain first-mover advantage in new channels' ecosystems
1. E.g., customer engagement, sales, data collection; 2. Example on metaverse: as a creator, bringing content to attract users (e.g., virtual showrooms); as a user, defining new business models or improving op
performance (e.g., AR in surgeries); as a tech provider, offering tech enablers to boost adoption (e.g., next-gen Wi-Fi); 3. Examples: capabilities, own data, linkages (links across data layers to enhance yourconnectivity services), etc. Sources: BCG analysis and experience; web search

Nikeland game launched on
Roblox that includes interactive
games, digital show rooms,
and gear for purchase

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Examples17Kill boundaries between marketing, sales, and services and infuse newtalent—to spark innovation and drive cross-channel success

Maintain clear functional responsibilities…

…but remove boundaries between them

Example for B2B:

Marketing

Sales

Lead on optimizing overallcustomer experience

Drive quality leads, key
Resolve customer
account management, and complaints, processing
support field sales
orders, etc.

Orchestrate omnichannel
personalization
Focus on traffic/leads
generation and target
company-wide lead goals

PersonaspecificmarketingServices

Example demand
space/persona:Enterprise-level
multilevel sales
B2B buyer

Develop relationship-based Share learning withcustomer insights
marketing and sales
Lead key account mgmt.
and demand space goals

Target product-specificcustomer success goals

Infuse with tech and data specialists
Upskill/hire as needed, e.g., privacy, statisticians,
measurement model, web analytics, tag management,
sales, and mar-tech, etc.

Personaspecificsales

Personaspecificservices

Transform into a buyer-persona organizational structure

•
•
•
•

Reorganize around cross-functional persona/demand space teams
Replace function-specific forums and tools with persona ones
Align SLA1, success metrics, and incentive structure among functions
Reward cross-channel and functional collaboration

1. Service-level agreement: A marketing-sales service-level agreement (SLA) is a cross-team commitment that establishes a shared set of expectations for each team's responsibilities. A marketing-sales SLA will include goals for marketing about
the quality and quantity of leads that should be produced at each life cycle stage. Sources: BCG analysis and case experience

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2.6

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2.7 Combine data and tech capabilities across sales, marketing, andcustomer service teams—to allow for a single customer view

ExamplesCustomer data platforms (CDPs) ingest customer data frommultiple sources and use deterministic and probabilistic matching to
combine it into a unified customer profile—enabling customer
analytics and activation of audiences across platforms

30%
20%

Set up CDP to enable one view of the customerof companies are creating a single

Auto post-purchase service

customer view across channels

Combined demographic
lifestyle and vehicle-specific
Expected CAGR of CDP market until 2027, data (e.g., telemetry devices)with most corporates expected to invest
Delivered personalized comms
highlighting next
service/accessory customer willneed (e.g., oil filter change)

10%
Start with quick-win use cases

Identify best setup mode

Understand vendor landscape

Increase in new car
owners returning todealer for first service

Airline cross-sell
Use cases not requiring largechanges to a company’s data,
analytics, or tech
Avoid extra integration work,
customization costs, and uncertainty

Assess three options:• Buy platform suites solution1• Build in-house• Customize with a niche vendor
Consider upfront and total costs, time
to market, scalability, suitability, easeof integration, etc.

1. e.g., part of Adobe, Salesforce, SAP
Sources: BCG, With Customer Data Platforms, One-to-One Personalization Is Within Reach; BCG analysis, research, and case experience

Follow a structured selection framework:• Ability to deliver• Technical strengths• Reliable support and infrastructure• Viability and funding of the vendor• Security and complianceIntegrated real-time data fromown site, travel agents, andcustomers’ past behavior (e.g.,checked bags, travel frequency)
Improved relevance of offers

2x

The sale of add-ons(hotels, rental cars) the
instant after a booking

Copyright © 2022 by Boston Consulting Group. All rights reserved. BCG Executive Perspectives updated 22 February 2022 Version 2.0

Only

19

2.8 Redefine the measure of success—shifting from channel to customer-first

Establish consistentcustomer-focused KPIs

PitfallBestpractice78%

Of brands largely track nonactionable metrics

Set common objectives across channels,
and marketing and sales teams, linking
them to customer outcomes
Set up strategic customer-focused
scorecard and dashboard with high-leveland operational KPIs
Track consistent KPIs over time toensure continual measurement

Deploy predictive models andattribute value to each touch point
Only

~35%

Of firms leverage predictivemodels, using primarily
precision marketing instead

Deploy predictive models (e.g., uplift test,
modeled conversions)—to bridge gaps indata (predominantly from loss of thirdparty cookies1)
Attribute value to each customer touchpoint

Use complementary methods
Only

25%

Of firms use complementary
methods2; most focus on overall
campaign effectivenessDrive end-to-end measurement acrossthe customer purchase journey
Combine traditional measurement (e.g.,marketing-mix modeling) withincrementality testing/experiments tooptimize individual channel effectivenesstoward holistic customer outcomes

1. Increased regulatory requirements (e.g., GDPR) and distrust drove shift away from cookies; 26% increase in ad blocker use globally in past 5 years driven by disruptive advertising and data security concerns; 2. E.g., incrementality, test and learn
Sources: BCG Digital Marketing Maturity Model, Google-BCG research

Copyright © 2022 by Boston Consulting Group. All rights reserved. BCG Executive Perspectives updated 22 February 2022 Version 2.0

perspective; deploy holistic, rigorous ROI measurement

20

The $70 Billion Prize in
Personalized Offers

Companies Gain When
CMOs and CFOs Measure
Success Together

Digital Marketers Raceto Meet the Needs of a
New EraCEOs Need a Customer
Experience Revolution—
Not an Evolution

Four Ways Physical Stores
Can Survive

Building an Integrated
Marketing and Sales
Engine for B2B

The Fast Track to DigitalMarketing Maturity

Conquering the Metaverse:
3 Ways That Businesses
Can Find Real Customers
in Virtual Worlds

There’s No Going Back to
the Old B2B Sales Model.
That’s a Good Thing.

Consumers Want Privacy.
Marketers Can Deliver.

Why B2B Brand
Marketing Matters

Delivering on the Promiseof First-Party Data

Click here to read past editions of Executive Perspectives

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Additional perspectives on sales and marketing21Disclaimer

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