one cmo’s honest take on the modern chief marketing role
The Evolving Role of the Chief Marketing Officer
The position of Chief Marketing Officer (CMO) is currently the subject of considerable discussion, with numerous perspectives offered regarding its duties and significance within an organization.
This prevalence of commentary stems from a notable fact: the CMO role exhibits the shortest average tenure of any C-suite position, lasting approximately 3.5 years.
Increasing Complexity and Varied Expectations
The responsibilities associated with the chief marketing officer are becoming increasingly intricate. Successful candidates must demonstrate both expansive strategic vision and a strong grasp of tactical execution across diverse areas.
A significant gap exists between the expectations companies hold for their CMOs. Some prioritize strategic planning and go-to-market strategies, while others emphasize close collaboration with sales teams.
Furthermore, brand building, content creation, and lead generation are frequently cited as essential components of the role.
Beyond Traditional Marketing
Certain organizations also expect their CMO to place a strong emphasis on product marketing and product management. A survey of ten CMOs would likely yield ten distinct interpretations of their responsibilities.
Therefore, I am offering a candid assessment, based on my experience as a long-serving CMO, regarding the true meaning of the role and the essential qualities of the contemporary CMO.
Key Attributes of the Modern CMO
- Broad strategic thinking is crucial.
- Tactical proficiency across multiple functions is essential.
- Adaptability to varying company expectations is paramount.
- A focus on both brand awareness and revenue generation is vital.
The modern CMO must be a versatile leader capable of navigating a complex landscape and delivering measurable results. Strategic alignment with overall business objectives is more important than ever.
The Modern Marketing Executive: A Unifying Force
Inspired by the analogy from “The Lego Movie,” contemporary marketing leaders are increasingly tasked with integrating diverse departments and teams. This extends beyond traditional sales and marketing alignment to encompass collaboration with product development and all other organizational areas.
Chief Marketing Officers are now the essential link connecting every function within a company, and achieving this functional alignment is no longer optional – it’s a fundamental requirement.
Expanding the CMO's Role: Culture as a Key Responsibility
The responsibilities of CMOs are also expanding to include people teams and company culture. There's a growing trend of marketing executives acting as the central point for fostering a positive and unified company culture.
Our CEO frequently emphasizes the sentiment that “culture eats strategy for breakfast,” highlighting the critical importance of cultural alignment. Consequently, driving this alignment now falls directly within the purview of the marketing department.
Marketing’s influence is extending beyond traditional promotional activities to encompass the very fabric of an organization.
Sustained Focus on New Business Development
Demand generation remains a crucial focus for Chief Marketing Officers. The imperative to consistently create new opportunities is stronger than ever before. CMOs are now directly accountable for demonstrable results, making performance paramount.
Merely generating leads for the sake of reporting is no longer sufficient for executive-level approval. Instead, the emphasis is on securing high-quality leads from specifically targeted accounts.
These leads must demonstrate rapid conversion rates and contribute to long-term customer retention. This evolving landscape necessitates a revised approach to demand generation strategies.
Forward-thinking organizations are increasingly leveraging account-based marketing (ABM) to both cultivate new opportunities and directly impact revenue. The recent pandemic has further accelerated the adoption of ABM principles.
The Revenue-Centric Shift
A fundamental change in perspective is required, shifting the focus from lead volume to the actual revenue impact of generated opportunities. Simply achieving a numerical target for leads is no longer adequate.
Successful implementation hinges on robust alignment across the entire go-to-market team. This includes seamless collaboration between sales, marketing, and customer success departments.
The collective goal must be revenue generation, rather than solely focusing on lead acquisition. Further insights into this topic can be found in perspectives offered by marketing leadership.
- Key takeaway: Revenue impact is now the primary metric for demand generation success.
- Strategic approach: Account-based marketing is gaining prominence.
- Essential element: Strong cross-functional alignment is critical.
Ultimately, a holistic and revenue-focused strategy is essential for driving sustainable growth and demonstrating the value of marketing initiatives.
Establishing Brand Authority
A robust sales pipeline is fundamentally reliant upon a strong brand presence. Brand influence directly fuels demand generation. Currently, there's an unprecedented emphasis on branding within the B2B SaaS landscape.
Consumers increasingly prefer to purchase from brands that inspire both confidence and positive sentiment. According to Gartner’s 2020 CMO Spend Survey, brand strategy is now considered the most critical skill for CMOs, a significant rise from its lower ranking in 2019.
B2B purchasers are discerning. They expect companies to engage with them with genuine authenticity and complete transparency, operating on mutually agreeable terms.
It is the responsibility of marketing teams to pinpoint every interaction point and craft corresponding, effective experiences. Customers desire brands that demonstrate understanding and empathy.
Creating content that empowers customers to excel in their roles, gain market insights, and formulate well-reasoned business justifications exemplifies a superior brand experience.
This, in turn, fosters customer acquisition and organically drives revenue expansion. At its core, purchasing decisions are human; therefore, prioritize a human-centered approach to your marketing efforts.
Enhancing the Customer Journey
Maintaining customer loyalty is consistently the primary concern raised with both myself and our Chief Executive Officer during board reviews. Recent global events have shifted priorities away from initial customer acquisition and towards maximizing the value of current customer relationships. This shift necessitates a stronger alignment between marketing and sales teams than ever before.
Modern Chief Marketing Officers are tasked with cultivating enthusiastic customer advocates and fostering a strong sense of community to bolster retention rates. A mere 5% improvement in customer retention can lead to a substantial 25% or greater increase in profitability.
The Importance of Go-to-Market Strategy
A successful go-to-market strategy centers on generating new business, expanding existing accounts, and retaining current customers. Teams that effectively manage this cyclical process are better positioned to deliver an exceptional customer experience.
High-performing go-to-market teams possess a distinct advantage in executing strategies that prioritize customer satisfaction and long-term engagement.
The Demand for Predictive Insight
Chief Marketing Officers, like other C-suite executives, are often required to fulfill a multitude of responsibilities. A significant expectation placed upon CMOs is the ability to foresee future developments. This necessitates anticipating emerging trends, understanding evolving customer requirements, and fostering innovation to maintain a competitive advantage.
Typically, the marketing and sales budget represents the most substantial expenditure, particularly within Software-as-a-Service (SaaS) organizations. Consequently, there's growing pressure on go-to-market teams to demonstrate strong performance. CEOs, CFOs, and boards of directors closely monitor the contributions of those in the CMO position.
The challenges presented by the COVID-19 pandemic, impacting both sales pipelines and company culture, have further necessitated a re-evaluation of the CMO’s role and its broader organizational influence.
To gain further perspective, insights were gathered from nine additional CMOs regarding their experiences.