Why is the lifespan of the once embattled CMO the rise? Are companies taking a longer term view these days? There are a number of factors that play into this new found strength for the CMO. Here are four:
1) Digital disruption and the role of technology: Organizations increasingly are wrestling with fast moving buyers, (whether consumers or business to business) a rapidly expanding number of channels from which these buyers can be reached, and the need for advanced technology to manage communications to these digitally enabled and socially connected buyers. The rising CMO is well versed in the needs of these buyers and is orchestrating the multi pronged initiatives around real-time and two-way communications, personalization, value focused marketing and sales strategies, integrated content, PR, social media, push and pull marketing, CRM, marketing automation, data/analytics interpretation and alignment with sales-- to name a few(ok, maybe more than a few) relevant buzz words and categories that require proficiency in order to effectively drive revenue success today.
2) The CMO is now front and center in the revenue equation: A recent article attributed the CMO's rise with "better relationships with CEO's." So are the new CMO's better glad handers and relationship builders? Not necessarily. CMO's are taking the lead in and are increasingly accountable for driving revenue. They are controlling all of the touch points along the buyer's journey and leading prospects through to sales for close. They even help sales with the tools and content for deal finalization. Their relationships with CEO's are in fact better because the are becoming invaluable members of the senior team in delivering revenue growth.3) Customer Experience will soon be the leading point of difference for organizations: As is widely known in marketing and sales circles, buyers have more control over their purchase decisions than ever before. Instead of starting with sales, they visit online reviews, online forums, user groups, social media, websites and financial reports to learn about a company's products and strategies. The CMO and his team create the content that these buyers will access and they work to provide the right messages to the right prospects at the right time. In addition, rich intelligence can be gathered at each one of these touch-points in the buyer's/consumer's decision journey. The CMO's organization helps organizations interpret and leverage this data and shares it with sales, finance, and customer service to be used as the foundation of an exceptional customer experience. And according to Gartner, in two years 90% of companies expect to compete 'entirely' on customer experience.
4) It is costly to frequently swap CMO's: There is great cost associated with frequently changing CMO's. One such example centers around bringing on marketing agencies. CMO's hire marketing agencies and in a recent interview with The List, the leaders of Agency Search consultants, External View, estimated that it takes 18 months to bring a new agency up to speed. New CMO's every couple of years means new on-boarding of agencies as each newly crowned CMO either replaces an incumbent agency or adds his/her own favored agency. There is tremendous cost associated with this including the change in personnel and learning curves of new staffers. Just this week, a few major brands (Kraft, Nestle and Sears ) announced plans to consolidate agencies in an effort to reduce overhead. This is a direct result of the CMO revolving door that has plagued companies in the past.
The modern day CMO has an incredible opportunity to lead his organization's success. The changing face of the consumer and business buyer, the growing complexity around selling channels, advancing technology and explosion of data are key elements of the CMO's focus which now makes him vital to the success of the organization. The CMO's rise in stature is good news for business. More stability within the leadership of organizations coupled with an enhanced ability to effectively monitor, navigate and lead through a changing landscape bodes well for future corporate success, a greater customer experience, more sales, increased profits and a demand for talent.
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