|Source: CMO Council|
Last month, the CMO Council published a report that provides several important insights regarding how senior corporate executives view the role and performance of marketing in their organization. Rate the State of Marketing: A C-Suite Scorecard was based on a survey of 120 senior management executives in a variety of leadership roles.
Thirty-eight percent (38%) of the survey respondents were with companies having more than $1 billion in annual revenue, and 18% were with companies having annual revenue of $501 million to $1 billion. Survey participants worked in more then 17 industry sectors, and 84% were with companies headquartered in North America.
The CMO Council study addressed two broad issues:
- What do senior leaders see as the primary roles and functions of marketing in their company?
- How do senior executives rate the performance of their marketing organization?
How Senior Executives View the Role of Marketing
The CMO Council survey included several questions designed to capture the views of senior business leaders about the primary purpose of marketing in their organization. The question that produced the most revealing insight related to performance metrics.
The survey asked senior executives to identify the top five metrics or KPI’s they would use to measure the value, contribution and performance of marketing. An overwhelming 80% of the respondents selected revenue and sales growth as one of their top five KPI’s. The second and third most frequently identified metrics were customer acquisition and profitability and customer satisfaction and retention, both of which measure essential drivers of revenue growth.
Other survey responses also demonstrate the importance senior company leaders place on revenue growth. For example, the survey asked participants to identify the top five areas of marketing operations in their company that need improvement. The following table shows the five areas most frequently selected by survey respondents.
As the table shows, demand generation and pipeline was the number one area of marketing that senior executives believe needs improvement.
The CMO Council also asked survey participants to identify the five most essential roles of the chief marketing officer in their executive team. More than half of the survey respondents placed the following roles in their top five:
- Customer experience advocate and champion (62% of respondents)
- Digital transformation/marketing automation leader (54%)
- Brand reputation custodian and value creator (51%)
- Maestro of communications and demand generation (51%)
- Primary revenue builder and growth strategist (40% of respondents)
- Architect of innovation and business expansion (34%)
- Go-to-market authority and pricing expert (12%)