The return of the CMO

Why marketing is becoming the central value-adding entity in the canon of other C-level management functions

For the longest time, marketing had the reputation of only being responsible for pretty pictures and a harmonious design. As a result, the marketing department was merely perceived as a cost centre and not as a value-added entity in the company. But in my opinion those days are over. Today, marketing leaders are essential ROI drivers in a company. They assume the responsibility for user-centric corporate management by leading the change process from product orientation to customer and user centricity. In this sense, the CMO plays a central role in corporate management.

A recent McKinsey study confirms this as well. According to the study, 83% of CEOs consistently rated marketing as the driving force behind corporate growth. This is good news, for starters. But the interesting thing is the resistance coming not only from the remaining almost one-fifth of CEOs but especially from the CFOs, 40% of whom still deny the value-added contribution of CMOs. The CMOs will have to convince these doubters.

A new understanding of the role of CMO

So why is marketing – and with it the CMO – gaining so much significance right now? For me, the answer lies in the extended radius of the impact of marketing. When it comes to an in-depth understanding of the end-to-end customer journey that characterizes contemporary marketing, today marketing goes far beyond its original core competencies, such as brand positioning and communicative activation initiatives. Even though the functional responsibility lies partly with other departments, marketing has taken on a key role when it comes to a “value-adding user experience” in the form of sales channels, product design, service design and services, as well as innovations.

Living this understanding and bringing it to life in the company is the task of its CMO. He’s in charge of enabling the company to personalize user experiences along the customer journey. In the sense of the “share of experience”, it is necessary to supplement purely advertising channel-centric strategies with relationship-centric perspectives. CMOs therefore assume a decisive role in the transformation of becoming a “user-centric organization” – a big responsibility.

The right CMO tools: Data as an “enabler” for success

In order to convince even the doubting CFOs and to further increase acceptance of the CMO, rather than thinking in terms of communication we must start thinking about KPIs. “Watering can marketing” is a thing of the past – the future belongs to precision marketing with accountability, which is committed to increasing the value of the company. That is why it’s important to make the effects of marketing measures more transparent and back them up with facts. Only then can a CMO increase his or her internal standing.

Digitization must therefore be at the top of every CMO’s agenda. The magic word here, as so often, is big data. Data help define and measure social demographics, opinions, brand relationships, media and product use, information and purchasing behaviour, as well as the contact points that influence purchases, and then derive corresponding prognoses. In addition, data can be condensed into personalized customer journeys, predict concrete customer expectations during their buying decisions, and also be captured in a real environment.

Data is therefore the crucial tool for a CMO in the transformation to added value through outstanding user experiences and, above all, for making his decisions comprehensible and measurable. Because instead of an experienced CMO relying solely on his gut feeling, he now has facts at his disposal that provide him with the basis for making better marketing decisions. But of course success requires more than just mindless data analysis. In order to really reach people, they have to be touched on an emotional level. So the recipe for success is: data as a strategic starting point and a control instance paired with creativity.

The modern CMO: a driver of growth and transformation

However, the CMO is not alone. On the contrary, it’s the marketing managers who are making their mark here, connecting with other departments in the company in line with a positive “share of experience”. As a bridge builder between the customers and the company, the CMO is the customer’s attorney, who can use this strong position to shape corporate transformation. Because there is no question that customer orientation is the driver of radical change in business models.

A CMO who is able to systemize customer knowledge and share it with other departments deserves the trust of his organization. For him, it is important to assume responsibility for customer centricity in strategic alliances and to take the lead in the transformation to a user-centric organization.

In conclusion: The CMO is the growth motor needed by the CEO. The CMO drives the transformation of the company to a user-centric organization. Supported by digitization, his impact radius of brand themes has been expanded to include product, sales and service matters. His main task is to increase the value-adding user experience of the customer. Especially data, paired with creativity, are the stepping stone to greater internal acceptance and effectiveness. With his holistic view of the customer journey, the CMO is more in demand than ever as a key figure between companies and their customers.

Christian′s Blog: https://christianraetsch.de (German Language)