The Changing Role of CMOs

As technology evolves, so too does the role of Chief Marketing Officer (CMO). Prior to the 1990s, marketing was solely responsible for marketing departments and product promotion. However, today CMOs are more closely focused on technology systems, performance tracking and revenue generation. This shift in their role has resulted in a larger share of strategic and financial responsibility within organizations.

Evolution of Modern Marketing

In the past, the role of the CMO was associated with the ability to connect with target audiences and increase awareness of a product or service.

During this time, Chief Marketing Officers were typically viewed as integral parts of marketing departments, who worked closely with public relations practitioners, advertising agencies and other personnel involved in promotion and branding. Marketing was focused on creative advertising which required leaders with fresh, creative ideas. Data was not readily available for tracking purposes, so measurement often included things like number of media story placements and phone calls generated.

Just after this time, in 2000, I implemented an early version of Salesforce.com while working for a small industrial distributor. As the company’s only marketer, I realized the need for data, but CRM systems were new and primarily designed to help salespeople manage their time. Abandoning the spreadsheets, I implemented the new CRM system, configured marketing programs and tracking. Even with simple metrics, the dynamic of marketing within the organization changed. Marketing could now quantify investments and delivery of results. Marketing was no longer considered a cost center, but now leaders in revenue growth.

With increased technology and the introduction of digital marketing, marketers could no longer rely on traditional methods of identifying target audiences, engaging with them, and measuring results. Thanks to the sharp rise in digital adoption, marketers now had access to large amounts of data about their customers which could be used to shape marketing strategy. The sheer volume of customer-level data available, however, created a unique set of challenges for marketers.

With the proliferation of digital channels and online advertising, competition for attention increased. Attention spans decreased and were spread throughout different platforms. Also, with more digital channels available, CMOs were charged with ensuring that all marketing activities worked together cohesively (omnichannel marketing). Lastly, marketers had to understand all of these different and changing channels in addition to information technology platforms needed to manage this complexity. In fact, in 2021 there were over?8000 different marketing software platforms?available.

This change in the role of the CMO is closely tied to another significant trend taking place at this time. As companies began to rely more heavily on data-driven business intelligence, corporate executives were increasingly held accountable for revenue generation rather than simply brand awareness. The role of CMO saw more increased financial responsibility within their organizations and leaders needed both technical and financial expertise.

The Future of Marketing

Today’s marketer is still responsible for all aspects of a company’s marketing strategies, but responsibilities have increased. CMOs work more closely with the CTO and CFO than ever before. The role includes much more than creative advertising to include technology platforms, data analytics, financial responsibility and corporate strategy.

From a technology perspective, this responsibility includes not only digital marketing activities, but also implementation of new technologies to enable marketing initiatives, while improving efficiency. This alignment with IT means that CMOs must become proficient with?modern technology platforms?and best practices – including an understanding of integrations and development processes.

This does not mean that the CMO needs to know how to track the data and implement new technology. But, they should know?what metrics?to track,?what data?is required, and?what technology?tools are needed based on their vision.

For marketers, the ultimate goal is short and long-term business growth. CMOs are charged with maximizing revenue opportunities through product innovation and promotion, fostering relationships with customers, and making sure that all marketing efforts are cohesive through an omnichannel approach. So, CMOs need to understand financial metrics and how marketing activities contribute to overall profitability. This includes the ability to speak fluently at the board level about how their strategies affect financial outcomes.

Companies are increasingly looking to hire Chief Marketing Officers who have experience with financial metrics, analyzing data and tracking?marketing KPI metrics. And with technology evolving faster than ever, marketing needs to be more flexible, strategic and data-driven than ever before. The main point for today's marketers looking to succeed is to continue learning. Stay current on marketing tactics and software tools as technology evolves, but also don’t forget to brush up on your business financial and analytics basics.

About Andrew Johnson

Andrew Johnson is a hands-on B2B marketing executive with over 25 years of experience planning and executing marketing strategy that establishes companies as industry leaders. For more marketing articles, tutorials and videos visit https://marketing-muscle.com.

***** Article is for?educational purposes only, not to be copied verbatim *****