For CMOs

The Digital Maturity Model 5.0

by Shar VanBoskirk
March 14, 2017

Why Read This Report Key Takeaways

Are you ready to transform your digital business Customer Obsession Needs A Strong Digital
but unsure where to start? Are you curious about Strategy
how you compare with other firms trying to tackle Because empowered customers effortlessly blend
the same problem? Forrester’s Digital Maturity physical and digital experiences, mastering digital
Model 5.0 helps you plot your organizational is critical to becoming customer obsessed.
maturity to offer strategic guidance on how to
Plot Your Maturity To Find A Starting Point
graduate to higher levels of maturity. This report
Most digital leaders today don’t know how their
updates our Digital Maturity Model 4.0 with new
efforts compare with those of their competitors
global data in order to see what progress firms
or how far they have to go. Benchmark your
made in 2016.
cultural, organizational, technology, and insights
capabilities.

Take Action Based On Your Current Maturity

Less mature firms must disrupt conventional
business approaches. More mature firms must
systematize their current best practices.

forrester.com
For CMOs

The Digital Maturity Model 5.0

by Shar VanBoskirk
with Martin Gill, Drew Green, Anna Berman, Jeremy Swire, and Rachel Birrell
March 14, 2017

Table Of Contents Related Research Documents

2 Forrester’s Digital Maturity Model 5.0 The Digital Maturity Model 4.0

Get The Most Out Of The Assessment Evolve Your Organization Structure To Promote
Digital Maturity
The Bar For Digital Maturity Continues To Rise
Thriving In A Post-Digital World
9 To Mature, Map Yourself To One Of Four
Segments

Level One: Skeptics

Level Two: Adopters

Level Three: Collaborators

Level Four: Differentiators

Recommendations
12 Use The Digital Maturity Model To Plan Your
Transformation

13 Supplemental Material

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The Digital Maturity Model 5.0

Forrester’s Digital Maturity Model 5.0

Forrester’s digital maturity model originated in 2007 as specialized assessments for marketers or
eBusiness professionals who wanted to diagnose their digital sophistication and establish a path
toward improvement. We’ve consistently refined the model since then to keep it relevant for any CMO
or business leader working to advance her company’s digital savviness and practices.

Get The Most Out Of The Assessment

Our digital maturity model evaluates how well user companies have incorporated digital into
their operating models and how effective they are at executing on digital initiatives (see Figure 1).
Furthermore, vendor companies can apply it to prospects and clients to help scope and target
offerings. Forrester offers other tools to help assess the progress of your business technology teams
toward accommodating digital experience delivery.1 To ensure our updated digital maturity model
applies in multiple use cases, we:

›› Included a broader sample. We based our model this year on a survey of 1,072 marketing
decision makers from firms with at least 100 employees, in eight countries, for greater granularity
than previous iterations.2 This allows for more precise benchmarks by industry, geography, or
company size.

›› Adjusted for progress. We use a distribution curve, rather than a fixed score range, to categorize
respondents since the definition of “mature” evolves as all companies graduate to more
sophisticated digital practices. This allows the digital maturity model to account for individual
business competencies and overall market growth.

›› Created a self-assessment tool. The interactive version of this report includes an online version
of the tool and a downloadable workbook to help you assess your own company’s digital maturity.3
To complete the review, score how well you agree with each statement using a four-point scale
(see Figure 2). Then, use your overall scores to benchmark your firm against our sample (see Figure
3). Forrester’s consulting team can provide benchmarks customized to your specific market or
geographical needs.

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The Digital Maturity Model 5.0

FIGURE 1 Four Dimensions Determine Digital Maturity

Culture Technology
A company’s approach to digitally A company’s use and adoption of
driven innovation and how it emerging technology
empowers employees with digital
technology

Organization Insights
How aligned a company is to support How well a company uses customer
digital strategy, governance, and and business data to measure
execution success and inform strategy

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FIGURE 2 Assess Your Digital Maturity Against Global Best Practices

“How much do you agree with each of the following statements?”

0 = Completely disagree 2 = Somewhat agree
1 = Somewhat disagree 3 = Completely agree

Culture

We believe that our competitive strategy depends on digital.

Our board and our C-level executives back our digital strategy.

We have the right leaders to execute on our digital strategy day to day.

We invest in targeted digital education and training at all levels of our organization.

We clearly communicate our digital vision both internally and externally.

We take measured risks in order to enable innovation.

We prioritize overall customer experience over the performance of any individual channel.

Organization

Our organization structure prioritizes customer journeys over functional silos.

We dedicate appropriate resources to digital strategy, governance, and execution.

The staff supporting our critical digital functions are best in class.

We have digital skills embedded throughout our organization.

Our organization model encourages cross-functional collaboration.

We have defined and repeatable processes for managing digital programs.

Our vendor partners deliver value that enhances our digital competencies.

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FIGURE 2 Assess Your Digital Maturity Against Global Best Practices (Cont.)

“How much do you agree with each of the following statements?”

0 = Completely disagree 2 = Somewhat agree
1 = Somewhat disagree 3 = Completely agree

Technology

Our technology budget is fluid to allow for shifting priorities.

Our marketing and technology resources work together to co-create our digital technology road map.

We have a flexible, iterative, and collaborative approach to technology development.

We leverage modern architectures (APIs, cloud, etc.) to promote speed and flexibility.

We measure our technology teams by business outcomes, not just system uptime.

We use customer experience assets, like personas and journey maps, to steer our technology design.

We use digital tools to promote employee innovation, collaboration, and mobility.

Insights

We have clear and quantifiable goals for measuring the success of our digital strategy.

Every employee understands how her performances ties to corporate digital goals.

We use customer-centric metrics like Net Promoter Score or lifetime value to measure success.

We measure how channels work together to accomplish a desired outcome.

Customer insights actively steer our digital strategy.

Customer insights inform digital design and development.

We feed lessons learned from digital programs back into our strategy.

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FIGURE 3 Firms Fall Into One Of Four Maturity Segments

Maturity segment Characteristic behavior Strategy Score range

Differentiators Demonstrate ad hoc Systematize best 75 to 84

High excellence practices

Collaborators Cooperative, but not Embrace advanced 57 to 74

insights driven analytics
Level of
maturity Adopters Stuck in conventional Accelerate current 34 to 56
practices digital efforts

Low Skeptics Ignore digital Disrupt yourself 0 to 33

The Bar For Digital Maturity Continues To Rise

Virtually everyone wants to accelerate their digital business or digital marketing strategies. Therefore, to
pull ahead of market trends and competitors, you must run even faster than you do currently. To do so,
you must systematically embrace digital best practices. No excuses. This also means that in our digital
maturity model, the upper end of the maturity spectrum requires a higher score and has a 25% smaller
range than it has in the past (see Figure 4).4 And this year’s evaluation shows more momentum in some
areas of our evaluation than in others. Specifically:

›› Cultural support for digital grows. Respondents at all levels score better on the cultural dimension
of the evaluation than they have in the past. However, cultural progress is slower at lower levels.
Mature respondents advance their digital cultures by hiring for leadership, training employees at all
levels, and taking measured risks. Kevin Mitchael, the CMO of LT Apparel Group, wants candidates
who are “hungry to solve problems.”5 Bank journey managers at Royal Bank of Scotland learn
customer analytics tools so that they can optimize multichannel customer interactions without a
data scientist.6 PureGym fast-tracks innovations with a deliberately lean team.

›› Supporting structures now better enable digital to thrive. Across the board, respondents rank
themselves better at the organization dimension of this assessment than previously. Specifically,
more firms emphasize customer journeys over silos, define repeatable processes for managing
digital programs, and embed digital skills throughout the organization today than in 2015. In fact,
57% of eBusiness professionals today manage localized websites with local staff.7 For instance,
The Gap runs key commerce technologies centrally but cedes the online sales strategy to in-
market experts.8

›› Technology frustrates almost everyone. Technology is the only dimension of the digital maturity
model to experience stagnation or regression from 2015 to 2016, perhaps because marketing and
tech management still awkwardly collaborate on business technology (BT) management. Half of

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CMOs have marketing technology purchase authority, and 40% say technology awareness and
digital understanding requires ongoing improvement.9 Mature digital firms like The Daily Beast co-
create their technology agendas with marketing, customer experience, and tech management.10

›› Insights become a priority at all maturity levels. Improving the connection between customer
insights and business strategy matters to all respondents. Less mature organizations assess the
results of digital programs with channel metrics like acquisition or conversion. More mature firms
use insights to drive corporate strategy by determining how well they meet customer needs. For
example, Tesla uses telematics data to build performance models that improve the product and
experiences its customers receive.11

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FIGURE 4 The Distribution Curve For The Digital Maturity Model 5.0

Digital maturity model scores’ distribution curve

Frequency

0 10 20 30 40 50 60 70 80 90

Skeptics Adopters Collaborators Differentiators

Cases: 98 Cases: 425 Cases: 445 Cases: 104

Skeptics Adopters Collaborators Differentiators

Marketing as a percent of total workforce 3% 5% 5% 7%

Marketing budget as a percent of total 5% 8% 16% 11%

revenue

Percent of revenue derived through 15% 29% 44% 48%

digital channels

Percent that apply analytics to measure 46% 62% 61% 93%

marketing success

Percent that have a clearly defined 38% 56% 84% 97%

customer experience (CX) strategy

Average percent of program budget 8% 10% 10% 9%

spent on digital marketing

Marketing’s average budget for $12.7 $30.4 $57.9 $52.1

technology (in $ millions)

Note: We derive marketing’s budget as a percent of revenue by calculating the average marketing budget
and dividing it by a calculated average total revenue. We followed this method for the total sample
and each segment.
Marketing’s average budget for technology is inclusive of marketing technology, advertising technology,
advertising and marketing performance measurement, sales and fulfillment technology, data and
analytics, voice of the customer, customer insights, and content and personalization.
Source: Forrester Data: Global Business Technographics® Marketing Survey, 2016

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To Mature, Map Yourself To One Of Four Segments

Determining if you are a Skeptic, Adopter, Collaborator, or Differentiator helps you identify a starting
point for your digital strategy. And understanding the differences between less and more mature
segments identifies best practices to emulate and bad habits to avoid.

Level One: Skeptics

Skeptics are typically B2B, manufacturing, pharmaceutical, and financial services firms. They don’t
believe digital disruption matters to them; just 37% designate digital development as a “high” business
priority. They resist change, sell minimally through digital channels, and overspend on traditional
advertising compared with the study average.12 Digital champions at firms that are Skeptics must prove
digital’s worth by:

›› Showcasing bright spots. What better way to convince “won’t work here” cynics than examples
of where digital is already creating value at your firm? And if you really don’t have an existing
pool to draw from, launching a web analytics, social media, or email marketing trial will give you
an inexpensive starting point.13 Email marketing has a very low $6 cost per sale. Australian car
manufacturer Holden boosted brand awareness and favorability with almost no incremental spend
through an influencer-backed Instagram campaign.14

›› Persuading stubborn executives. “But the world has gone digital” argument likely won’t appeal
to Skeptics’ execs; they’ve heard that and still don’t believe. Hit them instead in three ways.15
1) Establish credibility. Customer data is the spark of genius here: 200-year-old publisher Wiley
learned through customer research that it had five key customer segments, not the three it had
always used for planning. 2) Apply logic. Prove that digital improves your customer experiences
and subsequently revenue. Companies that boost their scores in Forrester’s Customer Experience
Index (CX Index™) generate more sales.16 3) Invoke emotion. Gut feel trumps rationality when it
comes to departing from the status quo. Jon Stegner famously piled all 424 types of work gloves
his company bought to convince execs of waste.17

›› Bringing your own disruption (BYOD). “Start small” strategies won’t transform your firm into
an Adopter. Leaders at Skeptic firms need some audacity to prod them into action. BMW did this
with its DriveNow business unit — a mobile-first, car-sharing service that allows customers to rent
BMWs by the mile. This effort pilots a new business model for BMW and provides a lab for learning
how digital is changing the automotive industry.18

Level Two: Adopters

These, the largest enterprises in our study, embrace digital slowly. Adopters spend the most on digital
marketing programs, and nearly three-quarters believe their competitive strategy depends on digital.
But Adopters fail a critical requirement for customer obsession: speed. Forty-five percent report that

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their firms still tackle technology projects through one-off projects with tech management.19 To mature,
Adopters should approach digital not as they did past SAP implementations but at their customers’
pace. The action plan:

›› Instill some digital DNA. Ninety-five percent of marketing decision makers at the most mature digital
firms believe their employees have “strong” talent in digital marketing, compared with just 51% of
Adopters.20 To beef up internal digital skills, Karena Breslin, vice president of digital marketing at
Constellation Brands, recruits experts at “anything with a screen.” And Matthew Pritchard, global
head of digital at GlaxoSmithKline Consumer Health, asks marketing candidates to describe how
they’ve convinced legacy management to launch a digital trial. But building digital talent need not
be just about hiring. Asian communications giant Singtel trains all 800 of its IT professionals through
ongoing workshops on how digital technologies can improve customer relationships.21

›› Work outside-in. Adopters’ digital programs originate from internal goals like “promote this
product,” not user needs. Mature digital businesses like Nordstrom embrace design thinking to
empathize with customers and collaboratively ideate solutions.22 This approach shifts success
metrics away from perfection and toward how quickly efforts solve customer problems. Coca-Cola
dedicates 10% of its marketing budget to quick experiments in emerging areas.23 Cleveland Clinic
includes patient experience in its gauge of healthcare quality.24

›› Hack yourself. Digital disruptors like Airbnb and Spotify growth-hacked their way into established
industries.25 Adopters should activate their digital progress the same way. Mark King, president of
Adidas North America, used a “management hackathon” to generate 21 “hacks” to quickly improve
the company. Here’s how you can, too: Atomize big projects into piece parts, create testable
prototypes, and build customer feedback into your design process.26 Gordon Food Services’ digital
business team relies on a series of linked deliverables instead of one universal road map.27 And UK
DIY retailer Homebase proofed a baseline mobile app in a lab environment and then polished it with
customer feedback.28

Level Three: Collaborators

Collaborators support aggressive investment in innovation and marketing technology through their
large marketing budgets: 16% of revenue.29 Marketers and digital business teams here work well with
tech management colleagues but still prioritize individual channel performance over creating unified
customer experiences. This, combined with insufficient measurement and analytics, means they spend
less judiciously than their more mature peers. To prioritize the quality of their marketing investment over
the quantity, Collaborators must:30

›› Apply advanced attribution. Advanced attribution models show how different media affects
customers at different stages of their journeys, enabling more accurate planning and limiting waste.
Equifax identified $1.25 million in unnecessary advertising in its first nine months of applying cross-
channel attribution.31 Dell earned $2 million in incremental revenue when it reallocated $700,000 in
misspent display media.32

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›› Extend the influence of the customer insights function. Collaborators’ customer analytics
capabilities primarily support marketing, not broader business functions like competitive strategy,
product development, or employee experience. Insights-driven firms that apply data and analytics
to differentiate products and services will be worth $1.2 trillion by 2020.33 Stitch Fix is counting on
it. Its closed-loop insights processes optimize inventory holdings — and therefore its operational
cost base — based on the products customers buy.

›› Budget holistically. Omnichannel planning de-emphasizes channel performance to blend physical

and digital experiences, creating a valuable customer/brand interaction.34 EasyJet, which now
credits 20% of bookings to its mobile app, just combined its marketing and digital teams to make
this easier.35 Agency Hill Holliday finds that simply earmarking budget for “video” opens up buyers
to include online video with their TV ads. And MasterCard pools its regional budgets with local
merchant partners in order to afford deeper customer engagement — like following up a TV spot
with search or social ads.36

Level Four: Differentiators

Consistent with past findings, Differentiators skew heavily toward online-focused retailers; 48% of
Differentiators’ revenues come from digital channels.37 These mature digital businesses integrate their
marketing, customer experience, and insights teams to create customer-centric experiences. Ninety-
three percent of them inform strategy with customer insights. But Differentiators don’t yet demonstrate
digital best practices consistently, every time, in every process. These digital pros can systematize their
innovative efforts by:

›› Adopting a post-digital approach. In a post-digital reality, empowered customers don’t

distinguish between digital and physical experiences. This means that Differentiators must focus on
solving customer problems, not marking their territory. Fergal Coburn, the head of digital products
and payments at Allied Irish Banks, finds “jostling for ownership of the agenda” can paralyze
progress toward customer obsession. When the bank applied Agile principles and a multiskill team,
it was able to launch digital mortgages, personal loans, and new account functionality in six weeks.

›› Selling customer outcomes rather than products. Usage-based business models like those
of Airbnb, Clutch, and Eleven James will dominate traditional product models in 2017.38 To get
comfortable with these product-as-a-service strategies, Differentiators must consider themselves
a startup and an enterprise. This means rethinking established roles and processes but at scale.
For example, GE now manufactures sensor-based equipment so that it can improve or customize
equipment to user needs through software. This makes tech management — and digital innovation —
a revenue driver, not a cost center.

›› Co-creating with customers. When Differentiators include customers in their strategy and product
development process, they earn loyalty.39 Design thinking also helps them comprehend and even
anticipate customers’ moments of need to speed up the feedback loop. Taco Bell’s efforts to tap
customers for marketing content, flavor preferences, and product names are part of an effort to

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think like a tech company, not a fast food chain. CEO Brian Niccol expects co-creation will lead
to brand affinity akin to that of Nike or Apple, enabling “mood ordering” and other such one-to-
moment experiences.40

Recommendations

Use The Digital Maturity Model To Plan Your Transformation

CMOs: When it comes to digital transformation, if you are not moving forward, you may as well be
moving backward. To use Forrester’s digital maturity model to improve your current standing and stay
ahead of competitors in 2017:

›› Identify your current digital maturity. Identifying specific strengths to enhance or weaknesses
to tune up creates the foundation for your digital road map. It also provides a comparative
benchmark. Nestlé has used our maturity model for several years to steer the increasing maturity
of its brands like Purina in North America. Fielding the survey to multiple stakeholders helps Nestlé
steer investment. Do the same by downloading the interactive workbook that accompanies this
report or talking to our consulting team about how it can help.

›› Assign accountability for critical developments. Many businesses still struggle to take action —
even after they know what to improve — because they haven’t identified clear owners of trouble
spots. Manage this by assigning key challenges to relevant business owners based on how
disruptive the digital effort is to them. For instance, boosting digital training and communications
might go to HR, while developing customer-centric metrics should be a customer insights
responsibility. We worked with one Canadian retailer to prioritize potential email marketing priorities
through a RACI model that diagrammed workload and process steps by key stakeholders inside
and outside marketing.

›› Use the value of improving your digital maturity to justify continual effort. Enhancing digital
maturity should be an ongoing effort. Differentiators articulate the return on efforts based on
financial and nonfinancial measurement frameworks. For example, marketers like Atkins and
Choice Hotels blend statistical methods to determine the business value of individual digital media
investments through an approach we call unified marketing impact analysis. Virgin Media prioritizes
action by analyzing which digital experiences most increase or decrease Net Promoter Score.41

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Supplemental Material

Online Resource

To access the corresponding assessment tool, refer to “The Digital Maturity Model 5.0 Interactive Tool”
which is linked in this endnote.42

Survey Methodology

The Forrester Data: Global Business Technographics® Marketing Survey, 2016, was fielded in May and
June 2016. This online survey included 1,072 respondents in Brazil, Canada, China, France, Germany,
India, the UK, and the US from companies with 500 or more employees (the US, Canada, Germany,
France, the UK, India, and China) or 100 or more employees (Brazil).

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Forrester’s Business Technographics ensures that the final survey population contains only those with
significant involvement in the planning, funding, and purchasing of business and technology products
and services. Research Now fielded this survey on behalf of Forrester. Survey respondent incentives
include points redeemable for gift certificates.

Please note that the brand questions included in this survey should not be used to measure market
share. The purpose of Forrester’s Business Technographics brand questions is to show usage of a
brand by a specific target audience at one point in time.

Endnotes
Forrester’s Digital Business Readiness Assessment helps CIOs and their lieutenants determine how well equipped
1

their technology architecture and operations are to deliver the digital customer experiences the business needs. See
the Forrester report “Begin Your Journey To Digital Mastery.”

Source: Forrester Data: Global Business Technographics Marketing Survey, 2016.

2

See the Forrester report “The Digital Maturity Model 5.0 Interactive Tool.”
3

In 2015, a score of 72 placed a company in our most mature segment. For the Digital Maturity Model 5.0, the most
4

mature segment begins at 75. This three-point difference accounts for a 25% reduction in segment range. Similarly,
the second-highest segment saw its minimum score increase by four points and its range decrease by 6%.

Removing obstacles to customer obsession is a key characteristic of customer-obsessed leaders. See the Forrester
5

report “Leadership In The Age Of The Customer.”

Instead of having an analytics team do all the heavy lifting needed to optimize marketing programs, Royal Bank of
6

Scotland (RBS) trained 50 of the bank’s journey managers on the analytics skills and tools they would need to run
optimization efforts themselves. Optimization efforts accelerated from two to 70 tests per quarter in less than a year, and
conversion uplift tripled. See the Forrester report “Transform Customer Experience With Continuous Optimization.”

Source: Forrester’s Q4 2015 Global eBusiness And Channel Strategy Professional Online Survey.
7

See the Forrester report “Globalize Your eBusiness Organization Structure.”

8

Source: Forrester’s Q4 2015 Forrester/Heidrick & Struggles Global Evolved CMO/CCO Online Survey.
9

Almost 40% of survey respondents identified data insight and analytics skills, technology awareness, and digital
understanding as key areas requiring ongoing improvement. Almost half the same respondent pool owned full
responsibility for making marketing technology decisions. See the Forrester report “The Evolved CMO In 2016.”
10
The Daily Beast includes digital marketing, content creation, customer experience, and digital technology on a single
digital team. Its design lead and chief technology officer are both executive positions that report to the chief digital
officer. See the Forrester report “The Digital Maturity Model 4.0.”
11
See the Forrester report “The Insights-Driven Business.”
12
Source: Forrester Data: Global Business Technographics Marketing Survey, 2016.
13
Overhauling all of your current shortcomings in one go isn’t realistic at a company lukewarm to digital. But trialing and
proving the value of one small step at a time can gradually nudge firms and executives toward new habits. See the
Forrester report “The Digital Maturity Model 4.0.”
14
Source: “Holden: Creativity in Motion,” Instagram Business (http://instagram-static.s3.amazonaws.com/case_studies/
IG_Holden.pdf).

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15
Time-tested practices of persuasion work when making the case for more investment in customer experience, and
they can work to generate related buy-in to digital. See the Forrester report “Seven Steps To Create And Sustain A
Customer-Centric Culture.”
16
Better customer experience can increase customer loyalty and mean millions in revenue. See the Forrester report
“Drive Revenue With Great Customer Experience, 2017.”
17
Source: Chip Heath and Dan Heath, Switch: How to Change Things When Change Is Hard, Crown Business, 2010.
18
More and more usage, rather than ownership, models will emerge in 2017. See the Forrester report “Predictions 2017:
The Post-Digital CMO Appears.”

BMW’s DriveNow effort takes advantage of this. Source: Nico DeMattia, “BMW and Daimler considering merging
DriveNow and Car2Go,” BMW Blog, December 15, 2016 (http://www.bmwblog.com/2016/12/15/bmw-daimler-
considering-merging-drivenow-car2go/).
19
Source: Forrester Data: Global Business Technographics Marketing Survey, 2016.
20
Source: Forrester Data: Global Business Technographics Marketing Survey, 2016.
21
See the Forrester report “Case Study: Singtel Group’s CIO Initiates A Customer-Obsessed Operating Model.”
22
The principles of design thinking help firms foster empathy with their customers and comprehend their key moments
of need. See the Forrester report “Master Design Thinking To Accelerate Your Digital Transformation.”
23
At Coca-Cola, 20% of its marketing investment goes to “new” — emerging trends that are starting to gain traction;
10% goes to “next” — ideas that are completely untested. It then starts small and scales fast. Source: Josh
Leibowitz, “Invest to innovate: Coke’s 70/20/10 rule,” LinkedIn, February 13, 2013 (https://www.linkedin.com/
pulse/20130213130531-12921524-invest-to-innovate-coke-s-70-20-10-rule).
24
Aligning around customer needs is critical to creating a cohesive corporate culture. See the Forrester report “Seven
Steps To Create And Sustain A Customer-Centric Culture.”
25
Growth hacking is the process of stretching conventional boundaries to drive growth. It is the practice used to
describe how small innovative digital firms have completely reinvented the well-established business models of well-
established industries. Source: Neil Patel and Bronson Taylor, “The Definitive Guide To Growth Hacking,” Quick Sprout
(https://www.quicksprout.com/the-definitive-guide-to-growth-hacking/).
26
A few small tactical changes to critical processes, like project approval or solution design, can go a long way in
demonstrating the potential of a wider digital transformation. See the Forrester report “Brief: Three Process Hacks To
Speed Digital Delivery.”
27
By reducing the scope of its projects to create a series of linked deliverables, the eBusiness team at Gordon Food
Services is changing the way it develops road maps and plans.
28
Homebase and IBM jointly pioneered a new mobile app: Iterative development and an automated release process
allowed the team to deliver changes in days. See the Forrester report “Brief: Three Process Hacks To Speed Digital
Delivery.”
29
We derive marketing’s budget as a percent of revenue by calculating average marketing budget and dividing it by
calculated average total revenue. We followed this method for the sample total and each segment. Source: Forrester
Data: Global Business Technographics Marketing Survey, 2016.
30
By 2021, CMOs will spend nearly $119 billion on search marketing, display advertising, online video, and email
marketing. This growth reflects a new emphasis on quality over quantity, a dynamic that will reintroduce human
intervention into programmatic ad buying, turn marketers into growth hackers, and put long-tail publishers out of
business. See the Forrester report “US Digital Marketing Forecast: 2016 To 2021.”

© 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 15
[email protected] or +1 866-367-7378
For CMOs March 14, 2017
The Digital Maturity Model 5.0

Source: “A tale of marketing attribution success at Equifax,” iMedia, September 25, 2015 (http://www.
31

imediaconnection.com/article/180146/a-tale-of-marketing-attribution-success-at-equifax).

Source: “Marketing attribution success: An insider’s account,” iMedia, September 19, 2014 (http://www.
32

imediaconnection.com/article/133270/marketing-attribution-success-an-insiders-account).

See the Forrester report “The Insights-Driven Business.”

33

Media buying that relies exclusively on automation will fail. Omnichannel digital media buying requires marketers to
34

embrace new processes, partnerships, and staffing. See the Forrester report “Build An Empowered Digital Media
Buying Team.”
35
Source: Mindi Chahal, “EasyJet creates new roles to focus on customer experience and digital,” Marketing Week,
January 17, 2017 (https://www.marketingweek.com/2017/01/17/easyjet-creates-new-roles-focus-customer-
experience-digital/).
36
See the Forrester report “Case Study: Drive Real-Time Marketing As Part Of Your Digital Transformation Journey.”
37
Source: Forrester Data: Global Business Technographics Marketing Survey, 2016.
38
See the Forrester report “Predictions 2017: The Post-Digital CMO Appears.”
39
Taco Bell applies a “create, co-create, curate” strategy to its content marketing. Co-create includes content created
with consumers, while curate shows off user-generated content. See the Forrester report “Thriving In A Post-Digital
World.”
40
Source: Jonathan Ringen, “Epic Cheese Pull: How Taco Bell Nailed Its Innovative New Quesalupa,” Fastco Create,
February 7, 2016 (https://www.fastcocreate.com/3056059/most-innovative-companies/taco-bell-for-combining-corn-
beans-meat-and-cheese-into-genius).
41
Net Promoter and NPS are registered service marks, and Net Promoter Score is a service mark, of Bain & Company,
Satmetrix Systems, and Fred Reichheld.
42
See the Forrester report “The Digital Maturity Model 5.0 Interactive Tool.”

© 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 16
[email protected] or +1 866-367-7378
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