Chief Marketing Officer: The most thankless job in the corporate world?

Few people I know would claim that being the Chief Marketing Officer of a company is a job without risks. Indeed, numerous articles in the business press point to an average length of tenure in a CMO position that is often measured in months rather than in years – indeed, the shortest length of time among all C-level jobs.

And now, a recently completed survey of CMOs  underscores just how wide-ranging the reasons are for those employment characteristics. Branding consulting firm Brand Keys tested a number of issues to see which are the ones that keep CMOs “awake at night.”

Three-quarters or more of the respondents to the Brand Keys survey reported that every factor presented was significant enough to cause them to lose sleep.  Leading the list with near-universal high-alert concern is ROI factors. Other factors of concern to nearly every respondent in the survey are big tech and data security issues.

Listed below is how each of the factors tested by Brand Keys turned out with CMOs in terms of “losing sleep” over them.

90%+ lose sleep worrying about:

  • ROI/ROMI factors
  • Big data, big tech and big security issues
  • Establishing trust with customers
  • Innovation, AI, technology and marketing automation developments
  • Consumer expectations regarding privacy and transparency

80%-90% lose sleep worrying about:

  • Managing social networking
  • Creating relevant advertising content
  • Successfully deploying predictive consumer behavior analytics/technologies
  • Dealing with consumer advocacy and social activism
  • Developing long-term strategies that align with corporate growth goals
  • Having the ability to engage with audiences – not just find them

At the “bottom” of the pile … 75%-80% lose sleep worrying about:

  • “Democratization” of the digital world and protecting brand equity within it
  • “Political tribalism” and its effect on brand reputation
  • Being relevant when tweeted about
  • Keeping consumers engaged with the brand
  • Creating better cross-platform synergies for marketing campaigns
  • Creating an “unlearning curve” to move away from legacy marketing metrics
  • Creating marketing synergies among different generational/age cohorts
  • Being replaced by the chief revenue officer

This last worry factor – losing their job – seems almost preordained given the tenuous circumstances more than a few CMOs deal with in their positions.

… and likely made more so because CMO’s are quick to be blamed when things don’t go well, even if they aren’t in the strongest position to effect the changes that may be needed. “Responsibility without authority” is the stark reality for too many of them.

What are your thoughts about the dynamics faced by CMOs in their companies?  Whether you speak from personal experience or not, I’m sure other readers would be interested in hearing your views.

 

Employee churn rates underscore the volatile nature of e-mail contact databases.

Most marketers are well-familiar with the challenges of e-mail list maintenance. In the business-to-business world in particular, e-mail databases can become pretty stale pretty quickly, due to the horizontal and vertical movement of employees inside organizations as well as jumping to other companies.

Whether they’re moving up or out, often they’re no longer good prospects.

Based on my experience, my personal rule of thumb has been that approximately one-fifth of any given list of B-to-B names will “churn” within a 12-month period, meaning that any such contact database will rapidly lose its effectiveness unless assiduously maintained.

And now we have a new report from Salesforce Research that confirms this basic rule of thumb.

Salesforce looked to LinkedIn, exploring this social platform’s data from more than 7 million records over a 48-month period to gauge the lifecycle of the typical “persona.”

The research considered not only changes that result in the deactivation of an e-mail address, but also circumstances where individuals may keep the same e-mail address but still should be removed as a target because a horizontal or vertical change within the same organization places them in a different employee function.

What the new research found was that the average annual B-to-B churn rate for such “personas” is ~17%.

That figure turns out to be fairly close to my basic rule of thumb based on years of observing not only e-mail contact databases, but also the postal mail databases we’ve worked with in my company or with our clients.

Beyond the broad average, there are some small but meaningful differences in the B-to-B churn rate depending on the product focus and on the type of employee function.

In high-tech fields, the average annual churn rate is higher than the average. And it’s across the board, too:  23% churn in marketing … 20% in sales and in HR personnel … 19% in IT, and 18% in finance.

People employed in the retail and consumer products industries also clock in at or higher than the overall churn average, but the annual churn rate is a tad lower in the medical and transportation fields.

Another interesting finding from the Salesforce evaluation is that annual churn rates are somewhat lower than the average for personnel at director levels and higher in companies (around 15%). For managers, the churn rate matches the overall average, while “worker bees” have a higher churn rate averaging around 20%.

Considering the critical importance of e-mail marketing efforts in the B-to-B environment, Salesforce’s finding that it takes only 4.2 years for an e-mail database to churn completely means that the value of these marketing assets will decline dramatically unless cultivated and maintained on an ongoing basis.

The volatile nature of e-mail contact databases also helps explain why so many companies have adopted a multi-channel approach to marketing, including interacting on social media platforms. Yes, those platforms do have their place in the B-to-B world …

The full report of the Salesforce findings can be downloaded here.