Expectations of Chief Marketing Officers (CMOs) are changing and growing steadily. New digital platforms, Artificial Intelligence, technological and social trends, but also increasingly demanding customers are shifting tasks and responsibilities in marketing and with that the role of CMOs.
Today’s CMOs find themselves trapped between technologies, data and user-friendly customer communication. In our article we have summarized the challenges associated with these challenges and how CMOs approach them.
CHALLENGE 1: NEW MARKETING TECHNOLOGIES AND ARTIFICIAL INTELLIGENCE
To understand their customers’ decision making and buying processes, marketers need holistic approaches and effective tools. The areas MarTech and Artificial Intelligence in particular, which deal with the collection, analysis and evaluation of data, should be among the topics that CMOs will be involved with in the coming years. However, a survey carried out by Smart Insights showed that just 6% of the marketing companies surveyed believe that they can keep pace with digital change. The main problem they cite is that their technical knowledge is not state of the art.
In order to advance the digital transformation in their company, marketers must therefore first intensively deal with their measures and their assessment. In particular the choice of a suitable marketing technology plays an important role. With the right technology, marketers can precisely measure the effectiveness of their activities and optimize internal processes.
Learn more: How do CMOs prepare for the impact of AI?
CHALLENGE 2: CORPORATE AND FINANCIAL RESPONSIBILITY
For a long time, the relevance of marketing and its participation in the revenue and growth of a company was highly underestimated. A marketing department was regarded as merely “nice to have”, but less as a necessity. Today, 80% of CMOs report that they feel the pressure to deliver ROI, revenue and growth. Marketers therefore have a financial responsibility. But how can CMOs justify their expenses and achieve desired results.
In order to be able to make successful investments, the most important metrics should be defined first. Marketers often drown in an abundance of data, because they record everything that can be measured without selecting it in advance. The right choice of data is crucial because it provides important insights into the efficiency of strategies and potential optimization needs. Marketers therefore need sophisticated data management that focuses on expenses, data and goals.
Learn more: 4 steps to tidying up the KPI chaos
CHALLENGE 3: DESIGNING CUSTOMER EXPERIENCE
The way in which customers interact with brands is subject to constant change. In search of a product or service, they switch back and forth between different devices and channels. Digital marketing has thus undergone a paradigm shift. For a long time, advertising focused on the product, however meanwhile the focus has shifted more and more towards a customer-centric view, where personalization is at the forefront. After all, the success of a product depends on the customer’s experience. The entertainment value of an ad, for example, will more likely influence a consumer’s purchase decision than a particularly favorable offer. This also allows marketers to differentiate themselves form their competitors.
Marketers should therefore always make important decisions by considering the response of their customers. This is also proven by statistics. A Forrester study by the Accenture Economics Intelligence Unit shows that brands that focus their marketing activities on the customer experience generate higher revenues compared to companies that do not.
The demands on CMOs are greater than ever. But with the right strategy and the right MarTech tools, outdated and ineffective methods can be overhauled, and your own performance improved. A customer-focused perspective promotes the brand experience and has a positive impact on revenue.
CMOs who succeed in mastering these challenges gain new insights and realize the opportunities and benefits of digital change for their companies.