Is the CMOs role under threat?

“What am I getting in return from this?” Perhaps, this question resonates more with marketing officers than any other C-suite executives across industries. In fact, the necessity of this question is viewed as a sign of losing credibility. Add to that the recent string of high-profile CMO departures at global companies like Walmart, ETSY, UPS, and Starbucks and the debate over whether the role of CMOs is under threat resurfaces. It has almost become a clickbait propaganda and that’s enough to keep the debate going. 

Marketing has always been about performance. Brand management, consumer insights, measurement have always been extensions of marketing personnels. Even today, the consumer is the king. So what is driving the change? The shifting narrative about the role of Chief Marketing Officer can be attributed to the many factors that continue to reshape the landscape of marketing. 

Trends affecting CMOs

Traditionally, marketing has been seen as an organizational department that oversees the function of delivering value to customers and building brand image. However, with the proliferation of marketing channels and increased consumer engagement, the role of the modern marketer has expanded. CMOs are expected to create beautiful commercials and at the same time, leverage consumer data insights to enhance consumer communication and experience. Here is a look at some of the areas that present themselves as potential CMO threats. 

Increasing social media platforms

Social media has accelerated a hyper-speed shift in cultures and CMOs are expected to be agile and adaptive in effectively managing and influencing consumer perceptions through content marketing. This entails not only monitoring trends but also actively engaging with consumers in-real time. The right CMO content strategy can influence consumer perceptions and foster meaningful connections to drive brand affinity. Moreover they must also possess the foresight to anticipate shifts in consumer sentiments and leverage them to craft narratives that reflect the brand values. 

Data-driven strategic decision making

With unparalleled access to consumer data insights, CMOs are uniquely positioned to offer valuable perspectives on critical decisions related to product development, sales strategy and customer service. AI and ML algorithms enable CMOs to extract actionable insights from vast volumes of consumer data with unprecedented speed and accuracy. By leveraging AI-powered analytics tools, CMOs can gain deeper insights into consumer behavior, preferences, and market dynamics, empowering them to make more informed strategic decisions. Further personalization allows for enhanced customer engagement and improves conversion rate. 

Emphasis on revenue

Amongst the many activities that fall under the purview of CMO, the emphasis for driving revenue growth has significantly increased. Demonstrating the impact of marketing actions on financial outcomes has put CMOs under tight scrutiny. Marketing leaders report more pressure from CFOs over CEOs as per a recent CMO survey. This is also evident with a shift in marketing metrics from customer acquisition cost to include lifetime value and other short term attributions.

However, marketing vs revenue growth is just one aspect. With customer data systems and martech leadership shifting to the IT, business leaders have started questioning the value of marketing teams. 

Can a CMO lead all these fragments?

In an ever-evolving business landscape, transformation takes the center stage as organizations pursue growth. The inherent dynamicity of the marketing role, makes CMOs the natural fit to helm this transformation. By leveraging their unique combination of marketing expertise, cross-functional collaboration, customer-centricity, emotional intelligence, and adaptability, CMOs can drive lasting change and position their organizations for success.

A recent EY-Oxford study revealed how leveraging human emotions in organizational transformation efforts increases the likelihood of success by 2.6 times. It states that by putting CMOs at the center of transformation, organizations put humans at the center of change and naturally increase organizational chances of delivering on their ambitions. However, marketers will themselves have to adapt to the ongoing transformations to derive everlasting value from their role and reaffirm their position in the C-suite. 

The Next Generation of CMOs

CMOs will have to adapt to a strategic approach that is based on deeper insights and is designed to be more dynamic and acceptable. While one might argue saying that the role of the CMO is itself multifaceted and dynamic, for CMOs to effectively lead organizational transformation efforts they must possess more than what the role entails. It requires a conscious effort to upskill, establish technological expertise, and build a strategic acumen. The Gartner CMO Leadership Vision lists out 3 strategies for Chief Marketing Officers to lead organizational marketing success in 2024. 

• Build AI enabled marketing teams
• Drive businesswide alignment of new strategies and customer engagement models 
• Focus on empowering teams to drive successful cross-functional collaboration

In addition to leading marketing teams, CMOs also play a crucial role in influencing and shaping strategic decisions at the highest levels of the organization. The C-suite is muddled about who owns the customer experience. This presents an opportunity for CMOs to lead the conversation. To truly make an impact in the C-suite, CMOs must possess the confidence and communication skills to articulate the value of marketing initiatives in terms that resonate with other executives. This requires not only a deep understanding of marketing metrics and analytics but also the ability to translate these insights into compelling narratives. It must be able to demonstrate the strategic importance of marketing in driving business growth and profitability. By effectively communicating the value of marketing to the C-suite, CMOs can secure the resources and support needed to execute their vision and drive meaningful impact across the organization.

The modern CMO imperative is increasingly being recognized by top marketing institutes as well. Consider the IIM Lucknow’s pioneering Chief Marketing Officer Program that is tailored specifically for seasoned marketing leaders and those aspiring to become CMOs. The curriculum focuses on critical aspects of modern marketing like marketing automation, data-driven strategies, customer acquisition and retention, cross-functional collaboration, revenue generation, and crisis management. 

In conclusion, the modern CMO imperative demands a commitment to continuous learning and adaptation, ensuring that marketing leaders are equipped with the skills and expertise needed to thrive in today’s dynamic business environment. As CMOs rise to meet these challenges, they will not only shape the future of marketing leadership but also drive meaningful impact across their organizations.