Part 1 of 3
CMOs and CEOs are often misaligned on metrics, but Analytics can play a crucial role in building better relationships between the two by defining how to measure brand to demand. Ritesh Patel and Patrizia Vassallo explain how…
A challenging year
2023 was certainly a challenging year for leading brands in the B2B sector. CMOs were being asked to do more with less, and the importance placed on measuring brand-to-demand increased. Marketers were torn between focusing on brand and demand tactics, and strategically reallocating budget dollars to achieve the best results.
Ultimately, everyone wants to do a good job and be praised for steering their organization in the direction of success. We all like, and deserve, a pat on the back, but is there a risk that we fail to see the fuller picture by focusing solely on our own department? Siloed ways of working lead to a lack of joined up thinking, which is the opposite of where any company needs to be. Of course, distinct teams or stakeholders may have competing strategies, which in turn effectively leads to disjointed measurement strategies – which helps no one.
Unlock a deeper understanding with analytics
There is a way to resolve this and avoid a potential standoff between departments, and that’s by adopting a connected measurement experience across multiple customer touchpoints. Why? Because this enables measurement of customer engagements and interactions across every stage of the funnel, from brand awareness to demand generation, as well as everything in between.
CEOs who place marketing at the core of their growth strategy are twice as likely to have greater than 5% annual growth compared with their peers.
But in order to reap the best business-critical benefits from this approach, embedding a set of enhanced analytics from the get-go allows CMOs to unlock a deeper understanding of the target audience, and in the process, help elevate insights.
According to PwC, CMOs have been prioritizing customer experience, data-driven marketing, and digital transformation. They are also investing heavily in technology to enhance their marketing capabilities and improve customer engagement.
McKinsey goes on to state that: “CEOs who place marketing at the core of their growth strategy are twice as likely to have greater than 5% annual growth compared with their peers.”
Eradicating those disconnects will drive growth
So why isn’t everyone following this advice? What are the blockers? Indicators point to the major stumbling block being a disconnect between CEOs and CMOs in terms of growth responsibilities, the potential for marketing to drive growth, and the ability to align marketing measurement with business impact. CEOs and CMOs aren’t focused on the same metrics, nor do they always have the buyer’s journey front of mind. In other words, they aren’t running to the same finish line.
A strong measurement strategy will consider key touchpoints along the path to conversion, and to becoming a qualified lead. This will be a significant gamechanger on any organization’s path to success.
They anticipate challenges such as increased competition, changing customer expectations, and evolving technology will place additional demands on B2B marketers.
To ensure success across the board, all departments need to be on the same page. But is that likely to happen, and are things going to calm down within the marketing function? Possibly, but as 2024 starts to take shape, Forrester is predicting it’s going to be another turbulent year for B2B marketers. They anticipate challenges such as increased competition, changing customer expectations, and evolving technology will place additional demands on B2B marketers.
This will result in them having to adapt to these changes and find new ways to differentiate themselves in the market if they’re going to steal a lead over the competition.
A shift in mindset is required
When McKinsey asked CEOs and CMOs from the same companies what their top three marketing metrics were, they only agreed 50% of the time – thereby reinforcing this disconnect between the two functions. While CEOs are focused on business outcomes, such as year-over-year revenue growth and margin improvements, CMOs are more concerned with operational metrics, such as brand awareness and attribution.
In an ideal world, CMOs and CEOs would be on the same page. And there’s nothing to stop that happening – all that’s required is a shift in mindset, and the adoption of a measurement framework that’s connected with meaningful metrics, all centered around in-platform focused-efficiencies, and enhanced measurement indicators that reflect the user journey as well as pipeline activity.
This approach will showcase the impact of marketing on your business, and give a holistic, brand-to-demand view. Why? Because we in the marketing effectiveness world believe that attaining a measurement framework is crucial. It forms the starting point of a measurement story that will evolve over time and allow marketers to demonstrate the value of their efforts to all the stakeholders, including the CEOs, support future campaigns, and optimize future strategies.
This series of articles will explore the nuts and bolts of what marketing departments need to do to implement a fool-proof measurement framework and how to fuel growth. We’ll be featuring case studies, as well as a host of industry-led insights and opinions that will help shape the way marketing can drive brand to demand whilst keeping all stakeholders on side.
Ritesh Patel
VP of Analytics, Just Global
Patrizia Vassallo
Director of Analytics, Just Global
