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?

Choosing the White Tuxedo

Have you ever been to a black tie event wearing a white tuxedo or an outfit that was different from everyone else? You end up with that uncomfortable feeling. You made the decision to wear the outfit as you wanted to express yourself, mix it up, change the status quo. On the other hand you have become ever more visible. This is very much the life of a Chief Marketing Officer (CMO).

It reminds me of Steve Jobs and the TV campaign he inspired by Think Different. “Because the people who are crazy enough to think they can change the world, are the ones who do.” Changing how people think is one of the hardest things to do, to enable people to see the world from a different viewpoint but that is in essence the new charter for any executive, especially in marketing.

standoutinacrowd

I am constantly surprised by job advertisements that are seeking a CMO who is a digital disrupter. Digital disruption is fundamentally changing the commercial model of the company. There is a clear difference between delivering fundamental changes and making brands more relevant. Making fundamental changes means we have to go back to the basics in creating human relationships and realizing this part is not just about a brand promise but rather it is about building a business. So many times, I see that management (rather than leadership) never really gets to know their people, truly get to know their team. It’s this fundamental that helps you identify what each individual is passionate about and what they are really good at and then aligning this to the needs of both the business and the customer.

We’re living in the dawn of technology and a social marketing revolution that has been forcing organizations to be ever more transparent, focused and relevant. The only way we can keep up is by putting the customer at the top of our organisation chart. When the customer is at the heart of what we are doing we can begin to see the challenges we need to meet and what outcomes we are seeking. This means that to be successful executives need to provide clear guidance on where the organisation is going but more importantly support and empower their teams, especially those that are on the front-line and engaging with customers every day.

Creating fundamental change doesn’t start with planning your team structure. Does your organization structure have dotted lines, direct lines and every other type of line? When you have dotted lines and dashed lines in a certain sequence in Morse Code, it means SOS (Save our Souls). The big challenge is that you don’t need dotted lines if you align the organization around the same customer goals. Get your planning right and the organizational structure will take care of itself.

Is your marketing plan defined by a budget in a spreadsheet?
If the first question being asked is what investment budget do you need next year, you have lost already. A plan should start with desired outcomes and then identify what resources are required to deliver on them. This then becomes a prioritization exercise based on customer needs and not a financial numbers game.

Do you take every network meeting or call?
I have an open door to everyone. You never know where the next great idea will come from. In addition, the world is changing so fast that to keep pace you have to remain connected. And always remember that someone who is willing to start a company and put everything on the line sincerely believes they have seen something that no one else has. Don’t you want to know what that is?

Does everyone complain that you have too many initiatives at the same time?
Changing people’s perceptions and priorities has to happen if you want the business to change. This means executives need to be the catalysts for change by constantly changing the status quo with initiatives that build motivation, passion and innovation. Try and test new things; some may not work perfectly but if they have contributed to how people think, what they know and what skills they have acquired, then there is still enormous benefit to be accrued.

KEY TAKEAWAY: When deciding which tuxedo or outfit to wear to the party, ask yourself whether you are prepared to stand out and be different. “Because the people who are crazy enough to think they can change the world, are the ones who do.”

Business transformation; the increased expectations of the connected consumer (Part 2)

Following on from my initial post, here are my five remaining pillars as to how the marketing function can support business transformation in the age of the consumer.

6.) AGILITY
Agility is important as it enables an organization to respond more rapidly to changing market conditions. Creating an agile environment helps support creativity and innovation and can reduce the constraints imposed by the usual planning and execution boundaries. The foundation to be able to adopt an agile approach is to ensure that you set clear objectives and always focus these on defined market outcomes. This empowers execution to take its own path.
Marketing considerations; adopt a flexible organization structure, introduce project teams, take every network meeting you can to learn what is new in the market, deploy a Minimum Viable Product (MVP) approach and test, test and test.

7.) CONNECTED ORGANIZATION
It is simple and that is that your customers expect an organization to be connected. Their expectation is that however they engage or are engaged, the organization should act as one and to be able to recognize the full relationship that they have with the company.
Marketing considerations; provide a consistent customer view to all functions, establish a single preference center, introduce customer governance with rules on engagement & frequency of interaction and set outside-in customer metrics.

8.) TECHNOLOGY ENABLEMENT
Customer engagement is becoming more complex every day as more data sources become available and there are more ways and channels by which a customer can engage an organization. Technology is crucial to help connect customer insights with engagement, improve response times, enable efficiency and provide organizations with wisdom for improved decision making.
Marketing considerations; always start with process and once defined then look at technology enablement, deploy a test, learn, adapt approach, fully commit don’t half bake and involve everyone who is a stakeholder throughout entire process.

9.) LOCALIZATION
Marketing has always been local. People have connections and ties to the local community, to their home town, to where they live which influence their beliefs, needs and areas of interest. Location is key to understanding context and understanding context is what helps marketing ensure offerings are relevant.
Marketing considerations; segment by geography, adopt a geo-cluster approach that combines demographic data with geographic data, assess impact of environmental conditions such as seasons & weather and ignite word of mouth marketing in key geographic / community / tribal clusters.

10.) MUTUAL VALUE EXCHANGE
In today’s modern era successful companies are those that take a Market-In approach and focus on the customer first and foremost. The real trick is therefore to always ask yourself the following before making any investment or running any activity; will they care, is it important to them and do they benefit?
Marketing considerations; consider introducing a Customer Officer, develop a customer advocacy program where there is a mutual exchange of benefit, establish a communities portal and only engage with customers when there is value for them.

success concept

What are your TOP TEN and do you have any examples as to why they are important?