The evolving role of the CMO

There have been many articles highlighting the trends that are impacting the future role of the CMO. Many of these talk about the impact of big data, the importance of analytics, the need for attribution/performance measurement and the increasing need for technology enablement.

Here is a great list from Ryan Somers at SAP where he identifies the most widely recognized and evident qualities required by a modern day CMO. However I think there are some less obvious but important areas that will be influencing CMOs in the near future and these are as follows:

1. Marketing to be assessed on share performance 
There is increasing hype that marketing will be held responsible for revenue performance. Clearly marketing will always have a responsibility to contribute to revenue achievement but other functions such as sales will also be major influencers to successful performance. The important aspect is that marketing need to have clear responsibility for share of market (rather than revenue per se). This requires marketing to take responsibility for strategic focus by applying models such as RWW (Is it Real? Is it Worthwhile? Is it Winnable?) and for aligning the organization to those areas where the company can compete successfully and win well.

2. Marketing to build brands based on behavior not just messaging
Successful brands of the future will be dependent on a strong, well-defined culture. A culture that ensures a brand’s core values and overriding proposition are brought to life by every employee every time a consumer interacts with an organisation. So very simply, marketing needs to take responsibility not only for how employees describe the company and its offerings but more importantly how they behave. This includes work environments, incentive plans, performance review programmes etc.

3. Marketing to work closer with HR
Marketing is becoming more and more a people function. It is becoming the glue that helps align every employee to act and behave in a way that supports the strategic direction, core values and culture of the company. Internal communications are now as important as external communications and it is imperative that marketing takes responsibility for building brand understanding, commitment and passion amongst all employees. This includes induction programmes, training, internal events etc.

4. Research to be centered on customer journey management 
Brands need to build long-term relationships with customers and to do this companies need to clearly understand in finite detail exactly how a customer engages with a brand / company from first touch all the way through to point of advocacy. This encapsulates and requires a very integrated approach with both sales and customer service. Understanding this journey is a must have and marketing need to lead this initiative.

5. Focus will be on user experience
The expectation of consumers has risen dramatically. There is also a very saturated media environment. It is estimated that the average American is exposed to approx. 3000 marketing messages every day. It is clear that for a brand to break through, be noticed and to influence it has to create a moment, a user experience that grabs the attention of the customer. Marketing needs to take an active role in ensuring that the experience at every touch point whether product, packaging, marketing communication, point of sale or customer service is consistent and inline with brand positioning and customer expectation.

I cannot end this piece without mentioning technology which as we all know is taking a more active role in all of our lives, both professionally as well as personally. This is not just about marketing; it is about every department or function within a company whether it be electronic-invoicing, recruitment, vendor management, logistics etc. Marketing needs to embrace technology as much as any other department. It is more than a trend; it is now a way of life and clearly every marketer needs to be comfortable, knowledgeable and willing to invest in technology to improve business performance.

 So how do you see the role of the CMO evolving?


B2B marketing: why the nature of the relationship really matters!

We are all aware that consumer expectations are increasing but a less widely talked about area is that of customers in a B2B setting. It is becoming clear to me that this area is following a similar path and that customers now expect more from the companies they engage with. The main foundation for this is context. Customers want to be engaged based on the nature of the relationship that they have with the vendor.

This has major repercussions for B2B marketing, as historically B2B marketers would run campaigns based on a specific market segment and would seek to treat customers in the same way as prospects. The overall goal being to create interest amongst an audience who are likely to have a similar set of challenges that could be addressed by your product or solution offering. But this approach doesn’t reflect any current relationship and engagement that the vendor might already have.

The answer is that B2B marketers need to consider a customer lifecycle approach where marketing campaigns and communications are adapted to the specific needs of the customer at the point of time in the relationship. This reflects a market-in approach where you start with the question “what is it that the customer needs right now and how can we help them?”

So here would be my recommendations for those wishing to test / pilot a customer lifecycle approach in a B2B environment:

For the customer, it is about who can help them address the critical business issues that they face. This is the area that many B2B companies do very well so I’m not going to cover it here.

The next stage is on-boarding. The most obvious priority for the customer is time to value. They want to embed the new offering into their business as quickly as possible and to start to reap the benefits.
Opportunity: Marketing collates data and feedback on the roll-out, organizing this in a way that helps identification of potential improvements, shares knowledge / tips & tricks on usage and also helps bring users into existing customer communities.

Once the system is up and running customers are always looking for ways to further improve performance. The market keeps changing, upgrades bring new features and other organizations using the same product find new ways to innovate and accrue more value.
Opportunity: Marketing is proactive in establishing interactions and communications that continue to build value for the client by sharing relevant knowledge and experiences around the product or products they have bought. Some companies have client success managers for this. The key though is to be proactive and to anticipate where additional value can be created rather than wait until an opportunity arises.

Organizations are always seeking to improve and generally there is always some form of maturity curve in place where you have industry leaders, followers and laggards. It is really important to know where your customer is at any point and also to have an appreciation of where they think they are, so you can guide them on what to consider next.
Opportunity: Marketing provides information to conduct an account review. This could be achieved through an ongoing survey or interview program. This information could be compared to the consolidated view of other companies within a specific industry, thereby determining the maturity of the customer in a specific area. This benchmarking helps to identify new opportunities. Discovery workshops and executive briefing programs can also support this.

Advocacy / Cross-sell
If an organization has successfully delivered on all of the above then you should have a potential customer advocate in play. However any advocacy or customer program has to be 2-way and ensure there is mutual value for the individual and / or company as well.
Opportunity: Marketing develops a customer program that is based on mutual value exchange and it is clear that the best way to open up cross-sell opportunities is through your current customer advocates. There has never been a harder time to gain the attention of new potential customers and internal customer referrals are like gold dust.

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So where are you now? I am very interested in knowing how companies in the B2B space are approaching this opportunity. “Times are as changing” as Bob Dylan would say and marketing needs to continue to evolve as customer expectations continue to increase.