The Evolving Role of CMOs in the Digital Era: Insights from the Gartner CMO Spend Survey
https://elementthree.com/blog/unpacking-gartners-2016-2017-cmo-spend-survey/
Introduction
In the fast-paced world of digital marketing, the role of Chief Marketing Officers (CMOs) has undergone a significant transformation. Gone are the days when marketing was solely about branding and advertisements. Today, CMOs are at the forefront of driving business growth, integrating technology, and enhancing customer experiences. The Gartner CMO Spend Survey 2016–2017 provides valuable insights into this evolving role of CMOs.
The Broadening Mandate of CMOs
The survey reveals an expansion in the CMO’s mandate. No longer confined to traditional marketing, CMOs now influence key business areas, including customer experience, technology spending, and profit and loss (P&L) performance. This shift marks a transition from a primarily promotional role to a more comprehensive, growth-oriented approach.
Digital Commerce
A Key Growth Driver Digital commerce has emerged as a critical growth driver, with 62% of companies indicating that it rolls up to the CMO. This shift underscores the importance of digital channels in driving sales and engaging customers. The modern CMO must therefore be adept at leveraging digital platforms to fuel business growth.
Technology Spending
On Par with CIOs In an era where marketing is increasingly driven by technology, CMOs are allocating substantial portions of their budget to tech. The survey suggests that marketing leaders allocate 27% of their expense budget to technology, nearly equaling the CIO’s technology spend. This trend highlights the growing interdependence of marketing and technology.
P&L Responsibility
A Sign of Increased Accountability The survey also finds that 75% of marketing leaders own or share P&L responsibility, signifying a greater accountability in driving business results. CMOs with P&L responsibility typically have larger budgets, reflecting trust in their ability to impact the bottom line.
Customer Experience
A Marketing Priority Despite the varied reporting structure of Chief Customer Officers (CCOs), marketing continues to play a vital role in shaping customer experience. This is particularly important in the digital age, where customer interactions are increasingly mediated by digital channels.
Balancing Short-Term and Long-Term Goals
One of the critical challenges for CMOs in the digital era is balancing the pursuit of short-term results with long-term strategic objectives. This involves nurturing profitable customer relationships while also achieving immediate marketing goals.
Conclusion
The Gartner CMO Spend Survey 2016–2017 paints a clear picture of the modern CMO as a multifaceted leader, driving growth, technology adoption, and customer satisfaction. As digital marketing continues to evolve, the role of the CMO will undoubtedly expand further, necessitating a blend of strategic vision, technological prowess, and customer-centric focus.
