Today’s CMO: 'A Cool Head and a Warm Heart.'

Forbes Virtual Series – The Data Leaders. Episode 4: Building the Future of Marketing

Today I tuned into the Forbes Virtual Series for ‘The Data Leaders’ Episode 4: Building the Future of Marketing.

The panel featured Chris Brandt, CMO of Chipotle, Martyn Etherington, CMO of Teradata, and Lindsey Roy, SVP, CMO of Hallmark. The discussions were led and moderated by Jenny Rooney, CMO Network Editor of Forbes.

Rich with insight and big-picture takeaways from everything learned and observed over the last two pandemic-shaped quarters, today’s panel was also steeped in optimism, inspiration, and several memorable anecdotes. Unquestionably, I absolutely loved this quip shared by Martyn Etherington of Teradata: "Today’s CMO must operate from ‘a Cool Head and a Warm Heart."

The discussion framework was centralized around: Marketing - Three Phases of Pandemic Response. 1. Respond 2. Adapt 3. Recover

Additional inquiries per respective companies were also raised for consideration:

Hallmark

• How have you pivoted from traditional into digital?
• Discuss the return of traditional Greeting Cards

Chipotle

• What are some trends where you might have seen an uptick? For ex: comfort eating during times of uncertainty?
• What are some areas that are/aren’t faring well during these transitions?

The following are my takeaways from the hour-long conversation of what the future of marketing might look like and things we all might be able to apply in our immediate short-term, as well as long-term efforts.

Discussion Point #1: Respond. How does data underpin everything we do in these key phases?

My Key Takeaway: Making early pivots + a focus on authenticity

Hallmark: We made early pivots. We canceled some media and shifted to digital. We took a look at how we can enter the conversation: how can we help, and how can we stay authentic to the brand? Our consumer insight and data are married: very early on we focused on people who were isolated: elders, seniors, people where the physical connection was shut off.

We wanted to offer a way for people to connect in a distanced fashion. Within 10 days, by the end of March, we had digital, creative, and a new website in place. On the website, we committed to giving away 1 Million Hallmark cards, with the incentive to sign up, receive the cards and send them to people who might be alone. By Friday of that week, we were completely out. So we added another 1M. With these sign-ups, we captured a lot of data; we had more people sign up for our loyalty program. Example of the Cards: “Here for you, Here for Everything.”

We then added another 2M cards – this time the positioning was focused on Gratitude, i.e. for USPS mail carriers, health care workers, kids who were missing their teachers, our Heroes.

We wanted to enter an authentic conversation, extremely timely, and leverage our in-house creative.

[For reference, more on the Million Card Giveaway campaign can be read here ]

Chipotle: We pivoted to digital, pivoted everything. We looked to see where things were going vs. where it was. We also pivoted our media to reflect that.

We launched “Chipotle Together” – hosting lunch parties via Zoom including celebrity hosts and burrito giveaways. We also offered: Free Delivery. We leveraged our digital infrastructure that was currently in place, via our app.

Results: Mobile pick-up sales increased, delivery + digital orders took off. We acquired more digital orders than what had been lost from in-store purchases.

For reference: Online orders/sales in 2019 = 20% of sales. In 2020 (current) = Online orders make up just less than 50%.

[For reference, more on the Chipotle Together campaign can be read here ]

Discussion Point #2: Adapt. How do you utilize Intuition and Data?

My Key Takeaway: "Keep a finger on the pulse of cultural conversations.” 

Hallmark: Our mix of art and science at Hallmark depends on the situation. We underwent a radical amount of change in the shortest period of time. We focused on understanding, listening, thinking empathetically. At Hallmark, we always start with the art, the intuition. Watching and studying social for several years has helped to better understand.

Sometimes we lean into data more heavily. Our digital acceleration has been led by data; it depends on the situation. We believe heavily in art and science and data – yet we are also not afraid to leap on intuition; but the more data you have helps make those decisions.

Chipotle: Every week the consumer psyche was undergoing a change that would normally take a year. We focused on connection. Thank-you burritos for heroes. This has been a time for brands to show their values and humanity. Chipotle’s Values are to cultivate a better world. We act as if the brand is a person.

"Every week the consumer psyche was undergoing a change that would normally take a year. We focused on connection...

This has been a time for brands to show their values and humanity. Chipotle’s Values are to cultivate a better world. We act as if the brand is a person." - Chris Brandt, CMO Chipotle

We also moved into the phase: safety. Are restaurants safe? Are employees healthy? This was an opportunity for us to capitalize upon the 2015 food safety concerns we had overcome. We used the Harris Poll and our own brand tracker and consumers felt it was the safest restaurant.

In our pivot to digital, our loyalty program had 8M members by end of 2019. By Sept 2020, we had 15M. The loyalty program is only 1.5yr old and we have 15M members. 15M in 18mos.

At one point there was the industry thought that “Marketing is going to be a publisher.” I disagree with that. We use all kinds of creative, and essentially its survival of the fittest. If it works, maximize it. It doesn’t move to something else. We focus on understanding and studying the consumer to see what is resonating. There’s a quote that ‘1/2 of your marketing money is wasted, you just don’t know which half.’ And this simply isn’t true. There are ways to track it.

Today’s CMO, has to have

"A Cool Head and Warm Heart."

- Martyn Etherington, CMO Teradata

Teradata: [Intuition and the use of data] is underpinned by today’s CMO, which has to have: A Cool Head and Warm Heart.

We are offering more resources, and our databases have doubled during these times. We are helping companies to recover and get back on the other side of things.

We’ve been successful with our virtual executive briefing centers. It allows us to understand customer needs, issues, and challenges. It’s really about agility - being authentic, and doing good first which has moved us into phase 2.

"We look for the 'hidden advantage.'

How can we make this better?

What good can come from the heat of the storm? What are the pieces you learned because you had to?"

- Lindsey Roy, CMO, SVP Hallmark

Hallmark: We look for the “hidden advantage." How can we make this better? What good can come from the heat of the storm? What are the pieces you learned because you had to?

An important segment for us is the: keepsake ornament, which has an annual July premiere. Some stores were closed/open this year. To adapt to this, we contacted our best shoppers and made individual appointments, creating a VIP Shopping experience. For those who weren’t comfortable going into the store, we had an eCommerce Piece. Our Results: We've sold more than we did in 2019.

So in the future, what do VIP events look like? How do we add this to our toolbox? We also filled demand with new options: Curbside pick-up as some stores operate dark. 

Chipotle: The Digital Kitchen is Our Superpower, and having this dedicated only to digital orders, which has never competed with the front line. Our orders tripled in volume and accuracy became a big deal, and also having a measurement protocol put in place. Marketing wise, we’re educating the consumer on this option. Creative was adapted to respond to this; we’ve really leveraged ‘scrappy effectiveness.’

On the digital side, our relationship with our creative and having an experimental culture; we’re willing to try a lot of things. “Chipotle Together” shows how we cared. We’ve had the Pandemic. Racial unrest. So we turned the app into a donation site: 'Round Up for Good Change.' From this, we’ve been raising: $200-250k a week. The brand has been able to measure the pulse of what’s going on. We’ve also made a lot of entrepreneurial hires, which has paid huge dividends for us. We’ve integrated Uber Eats + Grubhub into the system for 3rd party transactions. Our ability to keep getting things done has been a tribute to the company culture.

Discussion Point #3: Recovery Phase. How do you lead organizations forward?

 Forbes Prompts:

1.    How to move forward and continue to grow in our new reality?

2.    What is the role of CMO in all of this?

3.    Sharing of data in new ways? Will we see the breaking down of traditional silos? 

Teradata: We are leaning into the recovery period. We’ve established “Teradata Cares: Doing good with data.” We have 50 primary databases dedicated to COVID that have been brought together in an initiative: Return to Work

[For reference, more on the Teradata Cares campaign can be read here ] 

Chipotle: We’ve accelerated our digital growth 3-4yrs in terms of progress, no question.

The question now: How do you make investments in infrastructure and jobs? For us it’s pricing, different CRM journeys and loyalty; small changes in those programs and effectiveness pay big dividends.

"The best thing your CMO can have right now: A great relationship with your CFO and your CTO. You can make major accomplishments in record time.

For the foreseeable future: Constant Dialogue. 'Adapt' is a verb - there is no finish line to any of these things."

- Chris Brandt, CMO Chipotle

The best thing your CMO can have right now: Great relationship with your CFO and your CTO. You can make major accomplishments in record time. For the foreseeable future: Constant Dialogue. ‘Adapt’ is a verb - there is no finish line to any of these things. All of this has changed for the better a lot of the ways we work.

There’s a John wooden quote: "Things work out bests for those who make the best of the way things work out."

Hallmark: I also have a John Wooden quote: “You can do more good by being good than any other way."

We are big believers in data and in investing to show more application, sooner. Our focus is on adaptation and agility, and remaining consumer-centric: taking our various channel touchpoints combined into a central single view. Also, continuing to allow experimentation to help along the way.

Teradata: Continue to be there for our customers. For 2021 Planning: Going all-in on data. Help our customers, and drive up business, too.

?Closing Thoughts: How do we create meaningful change and drive growth?

Chipotle: We will continue with our digital innovation: Just Keep Going. To quote Dory from Finding Nemo: ‘just keep swimming.” Figure out how to leverage your strengths.

Hallmark: From a leader’s perspective and as a brand advocate: Keep your north star in place along with what your brand can offer the world. 

*The above is a recount of my takeaways from today’s discussion. Annotations shared are of my perspective; any edits or requests to provide further context are welcomed.

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A recording of this interview will be available on Forbes Virtual Series within 48hrs. Additional episodes of “The Data Leaders” Virtual Series can be viewed via the links below:

Episode 1: Building the Future of Digital

Episode 2: Building the Future of Finance

Episode 3: Building the Future of Innovation

About the Event

The abrupt changes to the economy are dramatically accelerating digital transformation and this will have a lasting impact on the business world. The path to future-proofing your organization begins with data: timely, trusted, unified.

The series features dynamic CIOs, CDOs, CFOs, CMOs and other leaders who have prioritized data to drive digital transformation and navigate our new reality post-pandemic.