May 2017

May 2017 Meeting

May 10, 2017 | 12:00pm - 2:00pm

Performance Implications of Customer Analytics: Perception vs. Reality

Moorman’s (2016) Chief Marketing Officer (CMO) survey reports a near doubling in expected spending on customer analytics over the next three years. Yet, the responding CMOs report considerable skepticism about the performance implications of that spending. That skepticism contrasts with the results of several recent research studies that show a strong positive correlation between spending on customer analytics and firm performance. 

In this talk, I will review the work on whether or not and how spending on customer analytics results in profitable firm outcomes. I will then report on recent work done in conjunction with McKinsey & Co., using a large global sample of firms, that shows a strong positive relationship between spending on customer analytics and firm performance. The results show that top management support is critical for effective deployment of customer analytics, indicating that CMO skepticism may prove self-fulfilling: lack of top management support may indeed lead to ineffective or insufficient spending on customer analytics.


Gary L. Lilien

Gary L. Lilien

Distinguished Research Professor of Management Science, Penn State

Gary L. Lilien is Distinguished Research Professor of Management Science at the Smeal College of Business at Penn State. He is also cofounder and Research Director of Penn State’s Institute for the Study of Business Markets (ISBM). He received a BS, and MS and a PhD from Columbia University in Operations Research. Previously, Prof. Lilien was a member of the faculty at the Sloan School at MIT. His research interests include B2B marketing, Marketing Engineering, market segmentation, new product modeling, marketing mix issues for business products, bargaining and negotiations, modeling the B2B buying process, the implementation of marketing science and innovation diffusion modeling.

He is the author or co-author of fifteen books (including Marketing Models with Phil Kotler, Marketing Engineering and Principles of Marketing Engineering), as well as over 100 professional articles. He was departmental editor for Marketing for, Management Science; is on the editorial boards of the Journal of Marketing and the International Journal for Research in Marketing; is functional Editor for Marketing for Interfaces, and is on the Advisory Board of the Journal of Marketing Research. He was Editor in chief of Interfaces for six years. He is the former President as well as Vice President/Publications for The Institute of Management Sciences. He is an Inaugural INFORMS Fellow, was honored as Morse Lecturer for INFORMS and also received the Kimball medal for distinguished contributions to the field of operations research. He is an Inaugural Fellow of the European Marketing Academy and is an Inaugural ISMS Fellow. He is an Inaugural AMA (American Marketing Association) Fellow as well as a former member of Board of Directors of the AMA.

He has received honorary doctorates from the University of Liege, the University of Ghent and Aston University and received the 2008 AMA/Irwin/McGraw Hill Educator of the Year award and the 2012 Gilbert Churchill Award from the AMA for career contributions to the field of Marketing Research. In 2010, the ISMS-MSI Practice Prize for the best applied work in marketing science globally was renamed the Gary Lilien ISMS-MSI Practice Prize in his honor. He received the AMA Interorganizational SIG Lifetime Achievement Award in 2014 and was named the EMAC Distinguished Marketing Scholar for the year 2015.

He is Distinguished Professor of Marketing at University of Technology, Sydney and is Distinguished Fellow of the Center for Business Analytics at Melbourne Business School, Australia.

He has consulted for many companies including Arcelor, AT&T, BP, CTCA, Dow, DuPont, Eastman Chemical, Exelon, Federal Reserve Bank, GE, Goodyear, IBM, MarketingNPV, MarketShare, Pillsbury, Pfizer, Pitney Bowes, PPG, Sprint and Xerox.

He is on the Scientific Advisory Board of MarketShare and is a principal of the Marketing Engineering consultancy, DecisionPro (