The average tenure for a Chief Marketing Officer range from 18 months to 23 months depending on which report you read. The five-month differential notwithstanding, your rank and file CMO seems to be on the hot seat from day one. Only 14 percent of the world’s top brand CMO’s have been with their companies for more than three years — and nearly half are new to the job over the last 12 months (Spencer Stuart study). T-Mobile, Yahoo, Coke, YUM Brands and Goodyear are just a handful of notable companies that recently recruited a new CMO. *** I haven’t a clue about what’s going on in this CMO department over at Anheuser-Busch InBev. (someone tell me if you know). Anyhow, there was a time, generally speaking, that marketing held precedence over sales and the CMO was king of hill. Due to the turmoil of an economic climate, I am not so sure the perceived esoteric nature of ‘marketing’ can out flank the (often desperate) needs of immediate cash flow (i.e Sales). Trust me, the 99 cent value meal did not come from the CMO.
Perhaps it all starts with recruitment. Most CEO’s did not attain their position via the marketing department and therefore have gaps in their knowledge about the latest trends in marketing. The result, CEO’s and senior management are not allowing for any kind of learning curve for the incoming marketing head. Performance grading starts on day one and any honeymoon is short lived. CMO’s must hit the ground running, make immediate impact and be well versed regarding all emerging medias AND understand the finicky nature of today’s consumers. Not that I feel sorry the new guy/girl, but this is no small task.
The executive recruiting firm, Spencer Stuart, has some great insights into how this relationship between CMO and brand marketing company can be less dysfunctional and more efficient. First, mismatched expectations and a poor cultural fit are major force behind CMO turnover. “many companies are asking the CMO to be the ultimate change agent, yet most aren’t prepared to give the new marketer
enough time to be truly effective” according to their report.
What’s a poor CMO to do?
Aside from realistic and shared expectations between CMO and CEO, CMO’s, in my opinion, need to focus on all things strategic and hire brilliance as it relates tactics and channels. The trick is to understand that to be strategic, one must be alert to the constant evolution of the marketplace and articulate such changes back to the organization – with a vengeance. The biggest marketplace game changer being that of the ‘digital’ space. Whether it’s an established brand, a new product or service extension, B2B or B2C, all roads will eventually have digital and emerging media exposure. With a new digital ecosystem born every 6 months, CMO’s cannot be neither passive nor can they be stubborn and hold on to their long held beliefs (just because you believe something is true, does not make it so). Let me humbly offer up a few morsels of advice to CMO’s everywhere… a digital cheat sheet if you will.
Integration – No department works in a vacuum, therefore no media channel can work in a vacuum. Get buy in from all departments that digital can thread the needle. Brand assets can be disseminated in ways never used before; the combination of technologies joining together to form a new frontier in how products and services are advertised. This is tremendous opportunity for the savvy CMO to combine all brand assets and allow consumers the ability to see, hear, experience, comprehend, retain, and assimilate information in a way that’s intuitive and on their terms. As we often say at NGAGE, it is better to throw lots of nets instead one BIG net.
Social Media – The numbers here are staggering. Don’t be foolish and ignore its implications. Trust me, social media needs to be (at minimum) one of your nets. The statistics below will be antiquated by the time you get to the bottom of the list:
Twitter stats
1,111,991,000 – number of Tweets to date
4,000,000 – number of Tweets/day (March 2009)
165,414 – number of followers of the most popular Twitter user (@BarackObama) – but he’s not active
86,078 – number of followers of the most active Twitter user (@kevinrose) in 2008. Today, he has 591,000 plus
63% – percentage of Twitter users that are male (from Time)
Facebook stats
200,000,000 – number of active users
100,000,000 – number of users who log on to Facebook at least once each day
170 – number of countries/territories that use Facebook
35 – number of different languages used on Facebook
2,600,000,000 – number of minute’s global users in aggregate spend on Facebook daily
100 – number of friends the average user has
700,000,000 – number of photos added to Facebook monthly
52,000 – number of applications currently available on Facebook
140 – number of new applications added per day
Search – I am not going to give the latest statistics or whether or not Yahoo is going to be around (or acquired) in the near future, or Google is going to buy Twitter (I give it 50/50 chance). My advice relates to in house SEO/SEM staff vs. using outside resources. I have seen it both ways and can categorically say that an outside search expert should be heavily considered. This discipline, SEO/SEM is changing minute by minute and revolutionary changes can come about at the blink of an eye. I believe this should be an outsourced specialty – they simply have a better pulse on this ever-evolving channel. When it comes to SEM – the vast majority of clicks that search marketers buy don’t translate to conversion (lots of clicks, but no buys). Note to CMO’s – its all about conversion and nothing else matters. Best practices as it relates to conversions should be left to the pros.
CRM – My research tells me few so-called CRM firms are truly embracing web 2.0 (and beyond) communication. First they owned direct mail and then e-mail. I have seen very little sophistication with the CRM folks as it relates to social media CRM. It would behoove CMO’s to push their CRM companies to get on the ball (see above Social Media numbers).
Usability – This is my favorite topic and an area completely ignored by most of today’s advertising agencies – which is fine by me (selfishly) because it is a core competency at NGAGE. A usability expert (UI / UX) must be sitting at the table from campaign launch thru execution. There’s no point building the latest social media campaign, iPhone app or robust e-commerce website if they are frustrating to use or simply not intuitive to your users.
CMO’s need to take seriously the importance of functionality, labeling and usability. But marketing departments and agencies often overlook this key component, and the result is an execution that, however pretty, ultimately leaves the consumer frustrated.
So…. that’s my digital cheat sheet for today’s CMO. I will have another one in about 18 to 23 months.
May 4, 2009
Categories: 1 . . Author: manvsagency . Comments: Leave a Comment