The Evolving Role of CMOs in B2B Tech: Adapting to a New Era of Leadership

Industry Insight by Nora S.

The Chief Marketing Officer role is not dead, but it is forever changed. The creative, brand-focused marketer without data and clear ties to financial outcomes is gone in tech. Despite ongoing debates about the relevance of the Chief Marketing Officer (CMO) role in B2B tech, it's clear that the position is enduring but not without deep evolution. Marketing leaders are expected to expand their influence across the entire business, moving beyond their “traditional swim lanes.” Over the past year, we've observed a pivotal shift in Private Equity (PE)-backed B2B companies from a "growth at all costs" mentality to a focus on profitable growth. This transformation has altered the expectations and profiles desired for go-to-market leaders, including top-tier CMOs in B2B software and tech sectors.?

2024 deal activity has been relatively flat, and the summer of 2024 brought a notable slump, with a 42.92% decrease in SaaS PE & VC deal activity since June (Pitchbook). As private equity firms amass record levels of dry powder, the anticipated surge in deal activity post-election remains uncertain. This backdrop creates a landscape where CMOs face what may feel like ambiguous expectations but if you ask any CEO or operator honestly, it’s not complicated and those that understand that navigating these roles and rising to the occasion to partner successfully with sales as a key member of the go-to-market team will win the day. CMOs that align themselves as true partners in business strategy, rather than in service to the business strategy will be the executives that reap the rewards as an invaluable asset to the value-creation team.?

For CMOs and those hiring them, establishing clear expectations from the outset is essential – when $1 is invested in marketing, what is the tangible return on that investment? Anything in the grey area isn’t going to be sufficient in this new era. This level of clarity on KPIs should be established as early as the interview process and include detailed preparation for strategic engagement at the board, CEO, and C-Suite levels.

After interviewing and engaging with 100s of CMOs and listening to the thoughtful perspectives of our PE partners and executive teams, here’s our outlook for what the capabilities and experiences to index on most heavily for B2B Tech CMOs in 2025, along with implementation tips for talent leaders:?

1. Dynamic, Results-Oriented Culture Builder??

CMOs must build and advance a corporate culture driven by rigorous metrics, solutions, and results to propel positive financial outcomes. CMOs that create a culture of excellence that starts with accountability and data, in addition to winning hearts and minds to enable people to do their best work is not a “nice to have, it is?a crucial element of the business strategy and how CMOs of today must lead. With culture being a key factor in both deal success and failure, it’s vital to ensure that the individual you hire is additive to your culture from Day 1. This requires thorough stakeholder engagement, comprehensive interviews, deep referencing, and intentional onboarding.?

Talent Leader Implementation Tip:?

• Conduct a stakeholder intake process to identify cultural alignment/misalignment early on then assess the cultural impact of potential candidates to understand how they will fit into, enhance, or detract from your existing culture.?Ask questions like, “How do you hold your team accountable,” “What happens when you miss your numbers,” and “What metrics do you use to ensure your team understands what’s important in partnering sales and driving business outcomes?” “How do you celebrate when your team hits the numbers?” “How do you coach people or come to the decision to transition people out when they don’t?”?

?2. Stellar Demand Generation Expertise??

Effective CMOs possess stellar demand generation skills and know how to bring in the appropriate resources. Although demand generation leaders at the VP or Director level may handle day-to-day tasks, CMOs should oversee a multi-channel demand generation function, and encourage their teams and their tech stack to be on the forefront of current trends. Maintaining a robust network of marketing professionals and engaging regularly with marketing-specific content is a trusted tactic to be at the forefront of modern marketing. Many have found this through marketing-specific membership communities like CMO Huddles, CMO Collaborative, or Club CMO.??

Talent Leader Implementation Tip:??

• Seek candidates who are intellectually curious, value creation-driven, and adept at scaling companies. Leverage leadership assessments, primary references, and secondary references to gain a 360 view of how best to integrate the CMO into the culture of the organization and de-risk the investment.?

3. Strategic and Tactical Agility??

Exhibit a player-coach mentality, capable of shifting seamlessly between strategic and tactical roles. CMOs may be asked to get more hands-on, especially during times of transition. Modern CMOs should be agile and open to innovative team structures that fit the specific needs of the business. While most CMOs still prefer to report directly to the CEO, in some cases, reporting to a Chief Revenue Officer or Chief Growth Officer may be advantageous.?

?Talent Leader Implementation Tip:?

• During the interview process, understand how they have led their organization through transition and identify the areas of marketing where they bring the most tactical expertise. Determine what other skill sets are needed and how to build a team around the CMO that ensures the success of the investment.???

4. Collaboration with Sales, Product, and Customer Success??

Maintain a clear and impactful message regarding how marketing drives business outcomes and take actionable steps to build productive partnerships with sales, product, and customer success team members at all levels. Marketers must not only define KPIs but also understand how to align resource allocation with sales, product, and customer success to advance enterprise-wide business objectives. It’s crucial to use metrics effectively to narrate the story behind the numbers and consistently demonstrate the ROI.??

Talent Leader Implementation Tip:??

• Evaluate how candidates have increased their partnership with customer success in this context of profitable growth. Look for concrete examples of resilience and measure their ability to tackle challenges and seize opportunities collaboratively.??

In summary, as the socio-economic landscape evolves, CMOs are being asked to be a greater force in driving revenue, adapt to broader business leadership expectations, foster stronger cultures of accountability, and exhibit both strategic and tactical prowess to drive successful outcomes. While this shift has been happening over the past decade, it’s clearer than ever that the CMO role is at the core of value creation in the PE environment and that those who “get it” will be much more likely to get that successful exit in 2025 and beyond.??