The Evolving Role of CMO in a Digital World

    The Evolving Role of CMO in a Digital World

    In today’s digital economy, the CMO role is defined by insight-driven decisions and a data culture that fosters creativity.

    The fundamental modifications to the Chief Marketing Officer (CMO) position have stemmed from consumers’ changing preferences and needs. As marketing becomes more digitalized, data and analytics is taking on a more vital role in the life of many marketing teams.

    The necessity for CMOs to adopt a more strategic approach is not a novel concept, yet they are frequently drawn back into tactics. And as the number of tools available to marketers expands, so does their desire to learn about and employ them. However, with all these channels and strategies, the pressure to simultaneously engage customers and execute on growth ambitions is mounting.

    Making strategic decisions is fundamental to the role of any CMO. As marketing becomes increasingly digitized, the amount of data available to marketing teams represents both a tremendous opportunity and a formidable obstacle.

    According to new research from Adverity, CMOs of small and medium-sized businesses (SMBs) anticipate that their role will revolve around determining strategy and similarly delivering growth over the next decade. However, how this is accomplished and how they make decisions are likely to change significantly.

    Also Read: Four Ways to Engage in a Digital-First World

    The rise of the marketing ops role

    The demand for a professional marketing operations function to manage martech stacks and bridge data silos have increased tremendously. A marketing ops position is devoted full-time to maintaining the martech stack, enhancing data quality, and analyzing available data to increase efficiency and outcomes.  The majority of CMOs are committed to adding this position to their teams.

    It’s not surprising that CMOs focus on investing in individuals committed to managing the full data stack. Modern marketers are confronted with vast amounts of data from many sources. Without an awareness of the big picture, decision-making based on insight becomes practically impossible. In today’s data-driven industry, brands risk being left behind if they lack a uniform, real-time view of their performance. Now is the time for CMOs to support a cultural shift within their organizations and embrace the potential that data offers.

    The Inevitable Intersection of Marketing and Sales in 2022

    The sales funnel is shorter in the current environment, with marketing carrying the buyer nearly to the final sale. This needs a closer collaboration between sales and marketing, which many firms have yet to embrace completely. Consequently, it makes sense for e-shops and e-commerce platforms to report to the CMO, as they are an extension of the online channel.

    This transformation, from considering marketing as a service that provides brochures and presentations to marketing being far more focused on capturing, communicating, and acting upon customer needs, empowers other teams as well. In practice, marketing’s influence and potential value are derived from improved insight generation, a smooth awareness-purchase cycle, and online experience.

    Additionally, marketing has become more measurable. For example, lead generation can now be related directly to revenue generation.

    Also Read: The CIO’s Evolving Role in Shaping Customer Experience

    CMOs Are Becoming Leaders of Organizational Change

    In addition to customer data, the CMO significantly influences recruitment and retention via the overall brand positioning. In light of this, the modern CMO must own and direct the brand’s Employer Value Proposition (EVP). The EVP is the essence of the employer brand, defining its posture and direction. A compelling EVP must reflect the company’s external needs, competition, internal reality, and strategic environment.

    This brand strategy will attract the most talented candidates and retain the most productive personnel. But this broader organizational transformation — with the CMO supervising more than just the marketing funnel — frequently shifts the CMO’s focus away from traditional marketing delivery and into broader engagements such as brand advocacy, sustainability, diversity, etc. In essence, bringing the company’s mission from the outside in and vice versa. However, to be genuinely effective in the new job, there must be CEO and peer support for what marketing can and should give to the entire organization.

    The role of the CMO is changing, and the companies that understand the shift and help support the new function will be the ones to find success.

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