CMO Predictions in 2023: Yours, Mine & Forrester's

Agree, disagree, or see something slightly different? I love research. I love doing it, I love consuming it, and I love acting on it. That is the beauty of being an experienced practitioner consuming research from highly regarded companies such as Forrester .?

And I love to comment on it based on what I see working with revenue marketing leaders. Put on your thinking hat, and let’s review a few predictions for CMOs in 2023 from Forrester Research and yours truly. As we do so, ask yourself the following questions:

Agree with the prediction??

• OK, what are you going to do differently in 2023?

Disagree with the prediction??

• OK, same question as #1 – what will you do differently in 2023?

Have a slightly different opinion from the prediction?

• How does your opinion shape what you will do differently in 2023?

Forrester recently published excellent research on five trends influencing B2B CMO actions in 2023. Some I agree with, some I don’t. There are three that I’d like to comment on (see all five here). Here’s the list and my thoughts:??

1. 3x CMOs will make customers a priority. Customer health metrics will be a key marketing metric at three times the current rate, increasing to 33%
2. Orgs will shed 1/3 of their revenue tech stack.
3. The number of DG teams reporting to sales will jump by 20%

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3x CMOs Will Make Customers a Priority.

The desire to run a customer-focused marketing organization is not new. Most marketers have a rabid need to better focus on and understand their customers. The difference from this research is that the demand generation team will now be focused more on account expansion work and less on gaining net new business as part of a business imperative.

I totally agree with this, and I see this in most of the accounts that we work with and that I speak to. Marketing has tremendous power to digitally engage with current customers to discover where they are and what‘s coming next. In the digital world that we live in, this makes perfect sense.

My Prediction:??However, we must recognize the difficulty in making this pivot. Most systems, processes, content, relationships, and demand generation actions focus on getting that net new business.?

Creating revenue relationships has been exceedingly difficult for marketers, which extends to this new model. In this new model, the demand generation team needs a revenue relationship with the customer success team or the services team. They will also need a relationship with the account management team. As the account owners, the account management team may not exactly welcome marketing “messing” with their accounts – their livelihood.

In addition, systems have been set up to focus on getting net new customers.?

Technical integrations between marketing systems and CRM systems have become the norm. Here, too, marketers struggle to get the flow of information they need to generate demand effectively. Add to this now having to integrate with other systems or different processes in existing systems, and the challenge to pivot is further exacerbated.

Finally, look at all the processes architected to support the pursuit of net new business. A lead management process must be developed and supported through technology and relationships to address digital account expansion fully.

?Organizations Will Shed 1/3 of Their Revenue Tech Stack.

I am not sure I agree with this one exactly. I agree that marketers are drowning in technology due to chasing the next big thing and the rapid proliferation of so many solutions.?

Certainly, this spending is under a microscope both from the total dollars spent and the return. As a result, many marketing departments are working on getting this under some kind of defensible control.

My Prediction:??However, what I believe will happen is that rather than skinnying down the tech stack and making it better serve the customer experience, they will keep most of what they have and make it better serve the customer experience.

Two trends I see substantiate my belief. 1. The rise of marketing operations and 2. The ongoing maturation of revenue marketing. The rise of the marketing operations function has gone a long way in helping marketers get the right tech stack integrated and working to serve the needs of the business. This function is not a big fan of lower technology budgets or fewer solutions.?

They enjoy having many options as they experiment to see what will work the best. I see marketing operations organizations creating technology roadmaps that usually include most of what they already have or changing core technologies. These roadmaps typically go out for 18 months and include the future use of currently owned technologies. In addition, point solutions that integrate will continue to be a big play for marketers.??

Next, while it has taken much longer than I ever anticipated, marketing organizations continue to mature in their ability to drive revenue. As they continue to mature, they will use under-used systems in optimal ways to help drive results. I see this every day and hear comments such as, “we aren’t quite ready to use that system, but we will be soon.” The amount of technology and the sophistication of the technology has indeed overwhelmed marketers….but they are beginning to catch up because it is a must to survive.

The Number of Demand Gen Teams Reporting to Sales Will Jump to 20%.

Even though marketing is drowning in revenue-enabling technology, a significant divide exists between sales and marketing, primarily due to poor lead generation numbers.?

This accounts for this prediction by Forrester. But Graber ( Ross Graber , principal analyst at Forrester and co-author of the firm’s annual predictions) doesn’t believe that will be wise. He argues, “Too many companies will make this move in a misguided attempt to improve alignment at organizations with underperforming revenue engines. But reconfigured reporting lines alone will not fix alignment issues — nor can they correct for demand organizations that myopically prioritize the delivery of more tactics ahead of generating meaningful value for prospects and customers.”

My Prediction:??I think sales enveloping the demand generation function is both brilliant and a natural evolution. As an ex-VP of sales for many years, I have frequently said that it is one of the smartest moves a VP of sales can make – own the entire funnel.?

Why depend on a group of people who are challenged with understanding sales and the customer and typically have conflicting goals to create your digital pipeline? In our digital world, extending sales reach and providing access to digital insights available 24x7 is a competitive advantage.??

I’ve been writing and postulating about this move since 2013, when I published my first book – “Rise of The Revenue Marketer.” I feel more strongly than ever about this move because marketing continues to struggle to contribute to revenue. You’ve all heard the maxims – “Structure follows strategy” and “Culture eats strategy for breakfast” – apply in this situation.?

I know numerous demand gen teams that report to sales – talk about a wake-up call and a new appreciation for what a demand gen team can do. If managed by the right sales leadership, I believe this can be a huge win and bring sales into the digital world for success.

My other prediction that moves marketing and sales closer together is that we will see more marketing organizations own the BDR/SDR function. This is a key element to lead generation success, and giving ownership of this function to marketing, puts them in the game with a number. This is how you get significant behavior change.

I’ve talked to many marketing leaders about their perspectives and priorities before and after owning a BDR/SDR function. The shift is dramatic, and so is the revenue contribution from marketing. Owning a part of sales and owning a number dramatically changes the priorities of actions and the marketing mix.

I bought my first marketing automation system in 2004 (I was Eloqua customer #12). While I did not own the SDR function, I did tie my team’s compensation to the number of leads accepted by sales and entered into the pipeline. While you could hear them screaming from Pensacola to Seattle, it did change behavior, and we were wildly successful.

Here is the Forrester link - https://www.forrester.com/resources/b2b-marketing-planning/predictions-2023-b2b-marketing/?utm_source=forbes&utm_medium=pr&utm_campaign=predictions_2023