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Rebranding the marketing function
CMOs today might be unrecognizable to a marketing leader from a decade ago. Their ability to use data and technology to discern emerging trends, provide an elevated customer experience and drive growth have become foundational to their evolving role.
In our June 2024 Pulse Survey, CMOs say making their function a more strategic business partner to the CEO is one of their highest priorities. They recognize that today’s business models may not remain relevant in the business landscape of tomorrow, and they want to help lead the way in reinventing both their role and the business.
Prioritizing C-suite relationships
Only 43%
of CMOs say there’s strong consensus in the C-suite on the future company vision, compared to 59% of all executives
Marketing leaders understand the need to be aligned with the business to advance strategy and drive growth. But what do you do when company executives aren’t fully aligned? You step up as a stronger strategic leader.
CMOs are looking to carve out their evolving role as data-driven agents of growth. Their unique perspective and close connection to the customer makes them invaluable collaborators, although they may need to work on their visibility. While a considerable 40% of CMOs strongly agree that the value of marketing is understood by key decision-makers in their company, this number has declined from 54% in 2023. This downward trend may raise questions about the CMO’s level of strategic involvement in crucial conversations around business growth.
Perhaps in recognition of this, 78% of CMOs say that making their function a more strategic business partner to the CEO is a medium or high priority (39% high priority). Even more (86%) say improving teaming with other departments is a priority (38% high). One area ripe with opportunity is the CMO’s relationship with chief operating officers — this collaboration is key for organizations looking to reinvent. Introducing innovation in the customer experience adds complexity, affecting risk, quality and cost. COOs can help navigate this complexity and reimagine processes that drive organizational success.
What you can do
Drive growth in ways other executives cannot. CMOs have a creative mindset, strong communication skills and the ear of the customer. That makes them well suited to collaborate with the CEO to reinvent the business.
Forge a strong relationship with the CFO, too. CFOs can help marketers achieve measurable outcomes through coordination on key investments such as generative AI, which can boost efforts in personalization and customer experience.
Get more on this topic
- Executives are increasingly optimistic about the business environment and their companies’ ability to mitigate risk. Find out more.
- What are the top strategic priorities for sector executives?
- What else is important to CMOs right now?
Elevating CX with tech-powered teams
40%
of CMOs say personalizing the customer experience is a high priority
It’s no surprise that personalizing the customer experience remains a top priority for marketing leaders. Your consumers have more options than ever, and creating unique and meaningful interactions can help you stand out. Yet many CMOs think they lack the necessary resources. Seventy percent agree their company is behind their competition in adopting new technologies, compared to 55% of all executives.
This may be because marketers often find themselves playing catch-up. In 2022, roughly half (47%) of CMOs strongly agreed that their marketing budget would likely be cut before other departments. Today, 35% think the same. And the data show executives taking action. More than half of CMOs (58%) are planning to invest in generative AI (GenAI) in the next 12 to 18 months, and 78% agree they’ll use it to make changes to their business model.
GenAI can be a boon to productivity. It can help generate marketing content, review documents for risks and analyze data. But as companies adopt this new way of working, marketers see challenges. Nearly half of CMOs (45%) say understanding how GenAI will impact marketing is a major challenge. Further, 40% say achieving measurable value from marketing technology investments is a major challenge.
What you can do
As you deliver personalized marketing at scale, focus on results you can show the CEO and CFO. Show them metrics they care about: profit, revenue and ROI. Today’s technology makes it easier to assess your work in the context of your company’s bottom line.
Evaluate your existing tech stack and insist on proper use cases for new tech investments. Consider the organizational impact of these tech implementations, address change management and provide necessary training to boost adoption.
Building trust to find lasting customer loyalty
76%
of CMOs say the ability to comply with privacy regulations is a challenge
Privacy regulations and the inevitable deprecation of third-party cookies are clearly top of mind for today’s data-driven marketers. CMOs cite privacy compliance (along with GenAI) as their top challenge, with 45% saying it’s a major challenge. Perhaps not surprisingly, it’s also their highest priority. Nearly half (48%) are focusing on building trust with customers through privacy and consent. Marketing leaders, who have historically relied on third-party data for insights, should pivot to provide a personalized experience — with privacy in mind — that both attracts customers and fortifies trust.
Data collaboration can help fill the gaps needed to create robust customer profiles that inform campaigns and analysis. But having the right tools and a modern data strategy that supports this collaboration is imperative. Right now, 45% of CMOs strongly agree that they have the necessary data to meet changing customer needs, but only 38% say the same about using it effectively.
Data privacy isn’t the only area of concern for marketing leaders in building trust with consumers. Related to technology, 91% say more frequent and/or broader cyber attacks pose a moderate or serious risk to their company, compared to 79% of all executives.
What you can do
Take the opportunity to deliver unique consumer experiences by leveraging data. To meet the demand for quality data, reimagine how you obtain it through data collaboration and partnerships.
Collaborate with data officers and CISOs to set guardrails around data strategy. Leadership teams should possess a deep understanding of privacy, data governance and security.
Help communicate your company’s safeguards and compliance efforts. Communicate transparently and engage with stakeholders intentionally and often. This continuous work can strengthen trust, enhance reputation and foster alignment and purpose within the organization.
Get access to the complete survey response data and future insights
View the main Pulse Survey
Finding opportunity in reinvention
About the survey
Our latest PwC Pulse Survey, fielded May 15 to May 22, 2024, surveyed 673 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 80 were marketing leaders.
Past surveys
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