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The New Role of the CMO: Chief Alignment Officer

No role in an organization has evolved more rapidly than the CMO’s. It used to be that owning branding, communications, and campaigns defined the job. Now, CMOs need to be experts on customers, marketing tools and advanced analytics, and business strategy. Brand management remains an essential duty, but in service of driving business growth. Most importantly, because a CMO’s work connects directly to sales, product development, IT, finance, and other parts of the organization, CMOs find themselves needing to play a growing role in aligning their organization around new ways of thinking and working that will help them engage customers more effectively.

For those in TL;DR mode, the quick takeaway is: CMOs are being stretched, so they might sometimes need a hug (but please ask first).

Here’s a by-no-means exhaustive look at some of the shifts that we’ve seen impacting how a CMO shows up:

From To
Voice of the Brand Voice of the Customer
Intuition & Instincts Data & Technology
Brand Management Brand Innovation
Strategy + Execution Alignment
Awareness Recognition

 

Voice of the Customer

The amount of information we have about customers is only increasing. How does a temperature between 70 and 75 degrees impact consumer behavior on Mondays vs. Fridays? What is the correlation between a new Netflix series and GPU buying decisions? What invisible patterns in customers can data now make visible? More and more, it’s up to the CMO to develop the customer insights that shape how a business goes to market. And because so many groups touch the customers, from sales to product to finance to corporate strategy, the level of collaboration required to align on these insights requires a significant investment.

Data & Technology

The increase in customer data a business can capture also gives rise to new suites of tools and technologies that a CMO can use to mine for insights, optimize campaigns, and deliver experiences across channels. When almost every brand action can be quantified, decisions about how to go to market are becoming increasingly data-driven. As a result, the CMO is responsible for leading the digital transformation of the marketing organization, which requires deep partnership with IT (among others) to develop the tooling and data models that align with the organization’s technology systems. While a CMO needs to rely on her or his instincts and intuition when it comes to decision making, increasingly they need to justify their strategies with that data when it points in a certain direction. The more fluent a CMO becomes in technology, the easier it becomes to reconcile data-driven insights with gut instincts.

Brand Innovation

More than anyone in the organization, a CMO needs to connect the dots between a brand’s legacy and its future vision. As much as products need to innovate, brands must as well to remain relevant: messages need to resonate with how the world is changing, and their expression needs to drive differentiation. But in doing this, a brand must also feel familiar and take advantage of the equity it’s built with audiences. As brand management becomes increasingly data-driven, brand innovation is also becoming more dependent on analyzing trends, creating new audience definitions and segmentations, and delivering next-level experiences that are hyper personalized and hyper-relevant. And these insights provide fuel for both brand and product innovation. The CMO that can use data to drive innovation across the organization is one that will stick around.

Awareness & Recognition

For years, marketing’s job was to be seen: build awareness, own share of voice, stay top of mind. That’s no longer where the real evaluation happens. Customers, investors, analysts, and recruits increasingly form a point of view about a company before anyone from the company ever speaks to them—often by asking an AI system what the company is. That system doesn’t call sales. It assembles an answer from whatever is already on the record: the website, the product pages, executive interviews, customer language, analyst coverage, and years of scattered marketing history.

When that record is current, consistent, and complete, the AI’s answer sounds like the company. When it’s stale, contradictory, or thin, the AI defaults to the nearest familiar category—and the company gets misunderstood, for example, seen as smaller, older or something other than it has earned the right to be.

This is the shift CMOs are living through right now. It’s not enough to be found. A company has to be recognized—accurately, consistently, and for what it has actually become, not what it used to be. That’s a brand problem before it’s a technology problem, and it’s quickly becoming one of the most consequential things a CMO owns.

Building Alignment

It’s not enough for a CMO to develop a winning marketing strategy and execute flawlessly. As organizations become increasingly customer-centric, a CMO needs to bring every function in the C-Suite into the conversation about how to drive growth. From gaining the full embrace of Chief Revenue Officer for their marketing strategies, to the creativity of the CTO as you make your strategies more data driven, to HR working to bring new talent to the table, to the head of Product working in partnership around how to claim new audience segments, and the CTO finding budget to drive the strategy forward, marketing has become increasingly a team sport.

It’s no wonder that CMO turnover is high, and those in their positions feel they’re continuously in the hot seat. While the complexity of marketing is growing and budgets are coming under increasing scrutiny, there’s never been a more exciting time to be leading a marketing organization. All the data organizations have been amassing and the tools ready to parse it can reveal truly amazing insights about customers and how to connect with them. But only if a CMO can enlist the organization in lending a hand in making this all happen. And this comes down to storytelling and building alignment.

We’ve worked with many organizations to craft what we call a Growth Manifesto—a strategic narrative that shows how the thinking that goes into brand development can open up new possibilities across an organization—from how people think about innovation to the collaboration required to bring new ideas to life. We’ve seen that a Growth Manifesto serves as an incredibly effective tool for building that alignment that is essential to getting every part of an organization living a new brand promise. While CMOs will always own the brand, communications, and marketing lanes of a business, as their role evolves, we’re seeing how they also need to become experts at building alignment between the functions that marketing depends on.

We think about that alignment challenge as closing the distance between the company a business has actually become and the company the market—human or artificial—is prepared to recognize, believe, and price. Closing that gap has quietly become one of the biggest jobs on a CMO’s plate.

If you have thoughts about the new challenges CMOs face today, please add to the conversation below. And if you’re thinking about ways to address specific marketing challenges in your business, we are always happy to help you think through how to approach the challenge.

Emotive Brand is a brand strategy and design firm for product-proven B2B technology and AI companies. We help close the distance between the company you’ve built and the company the market is prepared to recognize, believe, and price—so you’re understood, valued, and priced for what you’ve built.

Challenger Brands: B2B Challengers

Continuing the Challenge

This post is the second in our three-part series on challenger brands. You can read part one, “Challenger Brands: A Primer,” right here.

Previously, we spoke about adopting a challenger mindset. It’s one defined by ambition, agility, and a willingness to take risks. Most importantly, we noted how businesses are no longer competing against each other—they are competing against the category they are in and the expectations of what a customer experience feels like.

At a glance, these personality traits naturally lend themselves to the B2C world. Ask anyone to rattle off a few challenger brands and you’ll invariably get the same answers: Uber, Netflix, Spotify, Airbnb—and it makes sense. When you’re trying to rewire people’s preconceived notions, B2C is, by definition, the shortest path to the customer.

But it is by no means the only path. The worlds of B2B technology and AI companies and B2B2C are being transformed by challenger brands. Just look at ZipRecruiter, Zoom, Slack, or even Salesforce. If you can’t see it on the surface, it’s most likely occurring behind the scenes in their business strategy.

B2B Technology and AI Companies as Challengers

Founder of 500 Startups, Dave McClure, notes that

“The next bubble is not in tech where innovation and capital are never in short supply. Rather, the real bubble is in far-too-generous P/E multiples and valuations of global public companies, whose business models are being obliterated by startups and improved by orders of magnitude. As more Fortune 500 CEOs recognize and admit their vulnerability to disruption, expect them to hedge their own public valuations by buying the very same unicorns that keep us awake at night.”

Many legacy B2B companies end up following a similar lifecycle. They start off small and hungry, build a legacy off of their early innovations, ride the wave for as long as possible, and then go out and acquire innovation when they start to stagnate. The daily churn of operating a business makes it very difficult to ignite the same innovation that got you started. So, you import. To be clear, there’s absolutely nothing wrong with that. But it’s a strategy that ultimately puts your future in the hands of other creators.

Homegrown Innovation

Regardless of size, if B2B brands want to truly adopt a challenger mindset, they need to take active steps to continually foster their own innovation. Famously, Google has a 20% rule. Implemented by Google Founders Larry Page and Sergey Brin in 2004, it’s designed to give employees one full day per week to work on a Google-related passion project of their choosing or creation. It’s the same strategy that created Gmail, Google Maps, Google Talk, Google News, AdSense, and many others.

The point being, words like agile and innovative don’t have to be words that are only synonymous with startups. B2B companies can instill a challenger’s sense of agility through the behaviors and culture they nurture. If you’re wondering how a B2B brand knows if it should adopt a challenger mindset, there’s a wonderful diagram created by Michael Hay, a business leader with fifteen years at IKEA, that can help. Outlining four essentials for driving a successful change of strategy, it acts as a checklist for recognizing and delivering change.

need for change

Good Artists Copy; Great Artists Steal

At the end of the day, there are many lessons that B2B brands can steal from the challenger world. Are you leading with a strong story that unequivocally answers the question, “Why do you do what you do?” More than meet a singular need, are you meeting the needs of today and tomorrow better than anyone else? Are you talking with lead adopters at the front of the innovation curve and making them evangelists for your brand?

Perhaps the most important lesson that B2B brands can glean is in how they hire. As Adam Morgan writes,

“Employees at challenger brands require different qualities. They need to be mission-driven. They need to know why they get out of bed and go to work every morning and they need to be passionate about the problems the company is trying to solve. Being a maverick is also of far greater importance at a challenger, the opposite of at a larger organization where dissent is considered a flaw. Employees need to ask the provocative questions and not just take risks themselves, but also to be tolerant of risks that others might take.”

To learn more about how your product-proven B2B brand can benefit from adopting a challenger mindset, contact Tracy Lloyd at [email protected].

To finish reading our three-part challenger series, check out: Part Three—Challenger Brands: Design that Disrupts

Emotive Brand is a brand strategy and design firm for product-proven B2B technology and AI companies.