It’s been clear for some time now, but a recent study by Vivaldi Partners has confirmed that the role of the CMO is changing rapidly. As consumers are offered more information and choice they are beginning to take control of brand and CMOs need to listen to their customers to fully understand their path to purchase, bringing in an era of consumer-centric planning. The marketing landscape has changed more in the past three years than during the previous decade, and we’re beginning to understand that there is no precedent for the demands today’s CMOs face. There is no roadmap for what our job will look like 12 months from now let alone three or five years ahead. Could CMOs be heading for extinction, or is the role evolving in response to a radical change in environment?
I would argue that evolution is far more likely. There’s no doubt that we’re already seeing a merging of several C-suite titles, all of which include a component of marketing. Indeed, the responsibilities of the CMO have now evolved to encompass those of Chief Customer Officers, Chief Experience Officers, Chief Client Officers, and Chief Digital Officers. The proliferation of talent from across the C-suite with marketing at the heart not only reflects a deepening understanding of the connection between business growth and customer satisfaction, but also how important marketing is to forging that bond.
However, it is not enough to just come up with a brilliant creative campaign idea. CMOs are also aligning themselves with sales teams to further expand their role. It is crucial that as a CMO you are able to execute programmes that drive new leads into the sales pipeline. This means that not only do you need to be able to understand data and analytics, but be willing to test yourself, learn, and adjust quickly, while also being tied at the hip with sales. We all know it costs more to gain a new customer than to keep an existing one, and that existing customers, as long as they are happy, are more likely to continue to buy. There are multiple studies and statistics that support this idea, yet many companies lose sight of this in their pursuit of the next customer. According to a widely quoted McKinsey study, 70% of buying experiences are based on how the customer feels they are being treated. So surely it makes sense to treat every customer as well as you’d treat your first?
Forrester estimates that a buyer is already between 60-90% of the way through their customer journey before they even reach out to the vendor, and today’s B2B buyer will typically be able to find three pieces of content about a vendor for every one piece that marketing can publish or sales can deliver. What this means is that the ability of today’s CMO to survive in this new environment, where the customer is already one step ahead of the brand, will ultimately come down to adaptability.
In order to keep up with the buying behaviours of customers, the role of the CMO is heading towards an exciting period of evolution, adapting to different roles within the organisation that will help the marketing team to drive sales. The idea of adapting to this change can sometimes feel overwhelming, but it’s also exhilarating and has the potential to create unprecedented opportunities. It’s been estimated that the average tenure of a CMO is 45 months – nearly double that of 2006. That seems like pretty good news until you realise it’s less than the equivalent of one presidential term in the US. Still I’m happy to see the numbers heading in the right direction. Hopefully that means we’re learning how to deal with hugely complex environments, creating effective relationships across the organisation and becoming more respected and critical to the business. That’s my story and I’m sticking to it. What’s yours?
By Robert Tas, CMO at Pegasystems.
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