- The role of the CMO is under threat in an accelerating digital world.
- In a CMO Insider column, Raja Rajamanna writes that it's not too late for CMOs to demonstrate their influence.
- Leveraging artificial intelligence, focus, learning and greater ROI is a critical business requirement.
Anyone familiar with the history of marketing (and its past as a discipline capable of driving change through creativity and the human mind) understands that the industry is in an existential crisis.
Thanks to digital technology, the days of attracting customers through traditional stories and quality products seem like a distant memory. In contrast, marketers are skeptical about the contribution of marketing to business development and struggle to satisfy the limited attention span of consumers.
But I believe in the future of OCM if we make big changes... now.
In recent years, many Fortune 500 companies have eliminated the CMO position. Johnson & Johnson did just that in 2019 when it transitioned its business model. Two years later, Wells Fargo followed suit and focused its marketing efforts.
UPS and Walgreens recently joined a growing list of companies looking to combine their marketing and digital teams or move the marketing discipline into new positions such as chief growth officer, chief commercial officer or chief customer officer.
However, the core goals of GMOs remain more relevant than ever; engage, inspire and delight consumers, build trust and brand equity, and achieve measurable business results.
Good news. This paradigm shift also gives us new tools to connect with people, do good, and demonstrate our impact if we are up to the task.
Stay up to date with new technologies and your own artificial intelligence.
A recent Boathouse study found that nearly three-quarters of executives view their CMOs as courageous leaders leading their organizations forward. I truly believe that marketing can and should be at the forefront of innovation for any organization.
In the mid-1990s, marketing moved from a creative field based on psychology, design and aesthetics to one based on technology and data analysis. Today, marketers can use new tools to increase efficiency and reduce costs.
Think about the transformative impact of AI; Rather than replacing human input, AI can improve our effectiveness in improving the customer journey or improving targeting accuracy. Mastercard's AI-powered RFP engine is the most prominent example of this progress, increasing accuracy by turning a multi-week process into a four-hour effort.
This efficiency will allow us to refocus our time on creativity and human connections. As technology becomes ubiquitous, the real difference in the future will be creativity.
Find strength in purpose
In today's era of marketing (quantum marketing), targeting is no longer optional; This is the most important difference. A staggering 88% of people believe companies can have a positive impact on people's lives, but less than one in 10 believe brands are too effective to do so.
Brands that choose to do good and link it to their business results achieve significant results and build long-term trust among consumers.
Measure the effectiveness of your marketing
Marketing drives business, builds brands, creates competitive advantage, and acts as a catalyst for social good. However, convincing senior management of the enormous potential of marketing is a constant challenge.
It is important to provide evidence of this. There were plenty of headlines in January when the company cut its financial forecasts due to a marketing campaign that conflicted with its stated goals. With today's enhanced capabilities to improve accuracy and track results, we can clearly demonstrate our business impact, reclaim our seats at the table, and reinvigorate the marketing function.
However, the key to success is to actively develop the skills and growth of your team. Today's talent must be equipped with creative and technical skills so that we can harness the latest resources. Talent development can take many forms, including continuing education, mentoring programs, or job rotation outside of marketing.
The future of marketing is bright, but realizing its full potential requires dedicated efforts.
Raja Rajamannar is the Chief Marketing and Communications Officer and President of Healthcare at Mastercard.