CMOs lack credibility with CEOs

The CMO Club recently polled its members about who has the most credibility with the CEO. Results show:

• 31% CFO
• 24% Head of Sales
• 13.8% CMO

While I'm not surprised to see CFO or Head of Sales ahead of the CMO, I am disappointed in the low percentage equated to CMOs—by CMOs. That said, I think CMOs are in a tough position where they've got to make the transition from vague marketing reports to hard-hitting proof points reflecting their contribution to business objectives on the CEO's agenda.

In response to the poll, The CMO Club asked respondents to provide some insight to their ratings. Their reasoning includes:

• CEO interest in the reports provided.
• Speaking the same language.

CEOs spend more time with CFOs and heads of sales because their priorities include managing the company's coffers and filling the company's coffers—ultimately increasing shareholder value.

If marketing wants to be considered a core pillar of their company's success, they need to pay some attention to perception. One of the best ways to do this is to build better relationships with those who do have the CEO's ear—the CFO and the head of sales.

Sort of like influencing the influencers.

Reports need to focus on things like:

• increase in sales-qualified leads
• increase in pipeline progression
• contribution to reduction of sales cycle 
• reduction in customer defections
• efficiency of budget spend related to outcomes produced

Focusing reports on lead generation numbers and growth in presumptive customer affinity doesn't mean anything unless it results in deals closed or customer contract renewals. For reports to merit attention, they must prove marketing initiatives are helping to produce business results.

This is why it's imperative for CMOs to work hand-in-glove with heads of sales. In order to gain insights that reflect high-impact contributions in reporting, marketing needs visibility across the sales process after the handoff. The farther into the pipeline marketing can provide assistance that enables sales to win more deals, faster, the more ammunition they have for hard-hitting reports CFOs will want to see.

When the CFO sees value in the efficiency of the budget spend in regards to the results produced, you've given them something to talk to the CEO about. And, you've safeguarded your budgets. When heads of sales can report higher sales, their professional status soars.

Think about this for a minute. Marketing spends a lot of time (or should) helping prospects and customers learn how to solve problems. In order to do that they learn the language thier buyers speak and they use it to increase relevance. They focus on high priority issues from the buyer's perspective.

Any of this ring a bell?

Well, why can't CMOs apply the same strategy to elevate their status with those who have the CEO's attention?

The more you help someone, the more they're inclined to repay the favor. That's human nature. Plus, they won't want you to stop.

If CMOs can get CFOs and heads of sales to sing their praises, CEOs will start taking notice of marketing as more than just a department that exists because, well, they're supposed to have one.

Update 5/12/09: suggested addition to report bullets up above by @treehousei via Twitter - hard dollar campaign ROI - Thanks Chris! Although often hard to do based on specific campaigns depending on sales cycle time if you're measuring throughput.

Comments

[Keith Bossey]

I think your point about CMO and CSO working hand in hand couldn't be more timely. CMO needs to be more metric driven, CSO needs to leverage CMO output since the buying process/selling process balance has shifted more towards buying (availability of information makes buyer more powerful). I'd venture to say that these two roles should be one.

[Ardath Albee]

Hi Keith,

Thanks for jumping in. I agree. As we exchanged on Twitter:

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@keithboss I agree. Wonder what it will take...

keithboss@ardath421 as Dave suggested in a comment on my blog, its about fiefdoms, need internal champion willing to break down the walls

@keithboss Agreed. Plus proving the two work better together than apart. Removing redundancies and inconsistencies to achieve more.

keithboss@ardath421 process improvement strategies like Lean are applied elsewhere in org, why not mktg and sales?

@keithboss Excellent point. It would help. Is it fear of messing with sales? Like if changed, it might break? Or slow down the numbers...

keithboss@ardath421 yes, I agree. "i don't know what they do over there, just leave them alone". sales also tries to keep people out

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What does everyone else think? Why do CMOs and CSOs fail to work together as a norm?