This post is by Stephan Argent, President of Marketing and Agency Search advisory ListenMore, and a member of the Marketing FIRST Forum, the global consulting collective co-founded by TrinityP3.
While CMO tenure seems to have edged fractionally higher in the last year, the average tenure is still only about 43 months, according to the sales intelligence company, Winmo And that’s if you’re lucky.
Tenure at financial service companies appear highest at about 39 months, while those at digital service providers is only about two years.
Wikipedia defines the chief marketing officer (CMO) as ‘a corporate executive responsible for marketing activities in an organisation. Most often the position reports to the Chief Executive Officer.’ And that’s interesting, because the study also suggests the average CMO lasts only about half as long as their boss is expected to.
So I took a look at some random job descriptions for CMO positions and here’s a snapshot of what’s expected of the role:
- Facilitate growth, sales, and marketing strategies
- Increase revenue generation
- Reduce costs
- Perform risk mitigation
- Prepare overall marketing strategy
- Develop programs with quantifiable objectives to measure results
- Implement and manage marketing budget
- Leverage data and analytics to drive insights
- Modify or redirect business intelligence strategy
- Oversee and direct the efforts of the marketing team
- Promote the organisation in a positive light at industry conferences, speaking events and through relevant promotional channels
- Develop segmentation, competitive analysis/market intelligence, prospecting, lead generation, product and market development, pricing, promotions, communications and budgets, sales force effectiveness, strategic planning, services units and revenue retention and growth
- Oversee the development of new products
- Develop and measure key metrics around the business including user acquisition, conversion rates, engagement rates, satisfaction and / or renewal rates
So, as we appear to be measuring average CMO tenure in months, you have to ask – how the heck can anyone make a meaningful impact on those mandates in that kind of time-frame? And with that kind of pressure, it should come as no surprise to agencies operating with CMOs in these environments, that expectations to perform are really high.
So what should CMOs be expecting from their agencies in this kind of pressure cooker environment? Here are five that could make a difference:
Focus on the business
OK, no brainer. But it’s very easy to develop a myopic focus on a project at hand rather than the broader aspects of the business. So the question agencies should be asking, is what’s really going to make a difference here? What metrics is the CMO really looking at? And is the agency 100% focused on delivering against those metrics?
Understand what the CMO really has to deal with
If you’re in any doubt as to what a marketer has to deal with – take a look at the laundry list of responsibilities a CMO is charged with. Dealing with an agency – or agency issues – is just one piece of the puzzle in delivering the whole range of results expected by the CEO. Typically CMOs are looking for agencies to take things off their plates – not add to them – so agencies that are natural problem solvers and collaborators likely to rise to the top.
Be thought leaders in change
Where’s the marketer’s business going? Where’s the agency business going? And how can those evolutions maintain a parallel path to ensure success? Day-to-day demands often have agencies focused on delivery, but CMO’s are looking for clear, concise, well-reasoned thought leadership that helps them evolve their vision within their own businesses.
Multiple brands, a myriad of distribution and communication channels, multiple projects often managed by multiple agencies, shifting business priorities and rapidly evolving consumer habits mean CMO’s often have to switch focus and priorities on a dime, while ensuring their organisations grow profitably. Agencies must adapt to these scenarios, while providing leadership, insight and perspective that support CMO environments.
Above all, agencies need to deliver flawlessly – both in strategy and production so their CMOs can focus on driving their businesses and stay ahead of the competition. Issues around strategic thinking, delivery, cost or timing only take away from the CMO’s real role and their perspective on how you’re adding value to their business.
If this has you or your agency thinking you need to step up your game – you probably do. Make no mistake – it’s really tough out there.
How can agencies support client CMOs and make themselves more valuable to your business?
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