The CMO's Growth-Driving Marketing Playbook Download The
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THE CMO’S GROWTH DRIVING PLAYBOOK SEPTEMBER 2018 INTRODUCTION The CMO Council, in collaboration with Deloitte, recently were “extremely poised to succeed” as the growth leader embarked on an initiative to investigate if and how chief their organizations expect them to be. What sets this marketing ofcers are embracing their roles as growth group apart from other marketing leaders? Do they drivers. According to new data revealed in the study, approach growth initiatives with specifc priorities? How “CMOs and the Spark to Drive Growth,” some do they overcome the challenges that continue to stymie marketers have adopted a short-term gains focus fueled other marketers? by traditional marketing activities such as demand generation, and campaign-driven marketing. Still others A closer look reveals that these leaders do, in fact, have embraced a more creative and engaging strategy prioritize, focus and collaborate diferently. What follows, fueled by storytelling and branding, positive progress in The CMO’s Growth-Driving Playbook, is a compilation the journey beyond a short-term gains focus, but these of insights drawn from this group. Their “plays”—common activities can only go so far. goals, mandates and approaches—provide a glimpse of how today’s marketing vanguard is helping advance the Yet the research also identifed a budding cohort of growth agenda and reshape the role of the modern CMO. marketers with a long-term growth mindset, who are taking marketing’s traditional role of Chief Brander and Storyteller even farther to help drive proftability. Indeed, 18 percent of the study’s respondents indicated they 02 1 DEFINE THE DIFFERENCE BETWEEN GAINS AND GROWTH any growth drivers not only defne growth—they spell out the diference between short-term gains and long-term growth and proftability. KEY SKILLS DRIVING THE GROWTH AGENDA GAINS = Short-term “pops” of engagement and transaction, typically resulting from eforts such as individual sales-enablement programs and demand- generation campaigns. DATA AND INTELLIGENCE ANALYSIS GROWTH = Long-term, sustainable expansion delivered through corporate-wide, revenue-focused strategies and decisions. MARKET INSIGHTS AND KNOWLEDGE Striving for gains focuses the CMO’s attention on storytelling and branding as the cornerstones for a HOLISTIC VIEW OF CX campaign-based model. Each story communicates the value of the business in an efort to engage an individual. While these can be efective, foundational activities, they typically are limited in their ability to drive BRAND BUILDING growth. Growth leaders, by contrast, often focus on the STORYTELLING IN A DIGITAL WORLD longer-term pursuit of sustainable revenue growth. These CMOs commonly seek to shape the landscape ahead by identifying new product strategies, 0% 20% 40% 60% global market expansion, M&A viability, and other opportunities. They also seek to improve operational efectiveness and efciency to better manage costs and Growth CMOs maximize margins for proftability. Other CMOs For the growth CMO, using data to gain a deep understanding of both customer and market can be critical. Storytelling remains an important vehicle, but Q: WHAT SKILLS HAVE HELPED YOU, PERSONALLY, TO SHAPE AND EVOLVE THE GROWTH AGENDA? customer insights can determine the plot. 03 DEFINE THE DIFFERENCE BETWEEN GAINS AND GROWTH 1 GROWTH LEADER PLAY SHOUMYAN BISWAS RECOMMENDATIONS Vice President of Marketing, FOR THE GROWTH CMO Flipkart • Clearly defne growth with key stakeholders from across the business • Share data-driven insights about At e-commerce retailer Flipkart, Shoumyan Biswas, Vice “Marketing will evolve to be the customer preferences and expectations President of Marketing , focuses on what he calls the voice of the customer and with stakeholders—especially the CEO, “gross business growth,” specifcally the gross COO, and CFO merchandise value or topline value to the business, experience, being responsible followed by the volume topline, or the number of for ensuring the end-to-end • Be an active participant in mapping transactions or units shipped. These two measures can experience.” growth, including identifying the be critical to the entire business, with leaders frequently viability of M&A opportunities asking, “Is your value business going up? Is your volume business going up?” • Focus on developing and implementing Biswas believes marketing is evolving to become the an end-to-end customer experience voice of the customer and will be responsible for strategy that connects short-term, ensuring the end-to-end experience. “The CMO’s role in campaign-driven gains to the long-term revenue growth will start to shift from focusing solely on corporate growth strategy the everyday customer funnel management, which is about tomorrow’s growth, and will instead look at how growth is achieved one or two quarters down the path. The CMO must be more strategic, not as tactical or short term.” 04 2 SPEAK THE LANGUAGE OF THE BUSINESS enerally, with a mandate to drive growth, CMOs should change the language in which they report results back to the business. Growth drivers have often shifted from more limited conversations MEASURING GROWTH: about campaign metrics to broader discussions about HOW THE GROWTH CMO ALIGNS WITH THE BUSINESS revenue, market share, customer lifetime value, and margin. Many of the growth drivers interviewed for this research advised that marketers should establish and embrace business metrics—not just marketing metrics—to gain more solid footing with senior leadership. Many growth 26% leaders also advocate a “one team” approach, in which 95% 76% 51% the business speaks, behaves, and engages with customers as one entity and not as a multitude of loosely connected parts. REVENUE GROSS MARGIN 49% 24% MARKET SHARE 37% 21% 35% 24% CUSTOMER RETENTION NET PROMOTER SCORE The Business Growth CMOs Q: HOW DOES THE ORGANIZATION DEFINE AND MEASURE “GROWTH”? Q: IN YOUR CURRENT ROLE, WHERE DO YOU PERSONALLY FEEL MOST PREPARED TO IMPACT IN THE NEXT 12 MONTHS? 05 SPEAK THE LANGUAGE OF THE BUSINESS 2 GROWTH LEADER PLAY MONICA DERETICH RECOMMENDATIONS Vice President of Marketing FOR THE GROWTH CMO and CRM, TechStyle Fashion Group (JustFab) • Establish revenue as the common language across all functions • Defne how specifc investments and At TechStyle, the company behind subscription fashion “As an organization, we are ... campaigns have improved the brands including JustFab and Fabletics, all dialogue committed to actively analyzing customer experience and accelerated starts and stops around “Her”--the customer and what or augmented growth she envisions for herself, according to Monica Deretich, revenue performance data and Vice President of Marketing & CRM within the JustFab looking for signals that identify • Measure the business, not how business. and support efciencies” marketing does business While the entire organization focuses on key proftability • Learn the lexicon of fnance, operations, metrics including revenue and lifetime value, data about The one-team mentality is evident in everything from and IT. As one CMO noted: “You don’t the member sits at the center of every business overarching business strategies to marketing-led have to be an expert, but you should be decision. “We are an extremely data-driven company,” acquisition and retention programs. “We build for the Deretich notes. “Yes, we collect data and feedback business in tandem, knowing that as we innovate and able to have an informed dialogue directly from our members so we can optimize her optimize experiences and strategies, we can foster about common business goals and experience and keep an eye on the market around us. collective buy-in from cross-functional teams.” requirements.” But as an organization, we are also committed to actively analyzing revenue performance data and Perhaps most important, this cultural outlook has looking for signals that identify and support efciencies.” resulted in the entire business, regardless of focus or function, speaking a universal language that is rooted in This analysis has centered the business around a data, measured by proftability, and laser-focused on the concept known internally as “one team.” “We’re one member. “Speaking in one voice for one team helps team at the end of the day and we are all tied to the prioritize initiatives, with results always appearing on the same bottom-line goals. One department achieving their same scoreboard with the rest of the company,” own initiatives means very little if the rest of the Deretich says. business is struggling,” Deretich explains. 06 3 CONNECT ACROSS FUNCTIONAL SILOS unctional silos” have long been highlighted as a A key, as growth-driving executives agree, isn’t to common constraint to success for today’s attempt to remove silo walls, which can threaten TOP CONSTRAINT marketer, blocking everything from the functional stakeholders and heighten a company’s development of an organization-wide customer aversion to risk. Instead, these executives actively TO SUCCESS experience strategy to the integration of comprehensive build connections, treating each group as a center customer data. of functional and tactical excellence that can be integrated and aligned into the overarching Silos, as some respondents point out, typically are built customer strategy. out of necessity to develop operational and functional 47% centers of excellence. However, their evolution into impenetrable fortresses often has more to do with corporate culture and politics than necessity. For many growth leaders, building connections