These four recent dynamics should give Marketing leaders and professionals moment for pause.
- The increased pressure on CEOs to achieve growth. Research from KPMG suggests that nearly 9 in 10 organizations “expect their CEO to lead the organization on a strategic growth trajectory.”
- The expectation of the C-Suite on Marketing to be an engine of growth. A study by the CMO Council and Deloitte found that “almost 70 percent of CEOs now expect CMOs to lead revenue growth.’
- The continued question by the C-Suite on whether Marketing is delivering value. A Forbes Insight Study revealed that 7 out 10 CEOs believe their company wastes money on Marketing initiatives. CMOs still struggle to quantify and communicate the value Marketing creates which is resulting in a marketing performance credibility gap with their C-Suite and boards.
- The rate of turnover among Marketing leadership. “2016 witnessed the highest level of marketing-leader appointments and turnover,” according to Russell Reynolds Associates. Forrester too predicts storms ahead with CEOs giving 30 percent of CMOs their marching papers this year. That means that 3 out of 10 marketers are already tagged for pink slips.
A very limited number of Marketing organizations can prove their contribution, value, and impact. How many? According the 2017 Marketing Performance Management (MPM) Benchmark Study, now in its 16th year, only 23 percent, or just slightly more than 1 in 5 Marketing groups. The number of Value Creators or BIC Marketing organizations seems to have stalled out while D-rated Marketing organizations continue to climb.
The 2017 MPM Benchmark study was conducted by VisionEdge Marketing in partnership with Hive9 and Valid USA. The online study was fielded March 1, 2017 through April 7, 2017. Data from 418 qualified survey responses was used in the analysis. Thirty percent of the participants reflected members of the C-Suite, including titles such as CEO, COO, CFO, and President. The participants represent companies of various sizes, spanning geographic locales, and a mix of B2B, B2C, or a combination of both. There were no statistical differences in results between roles, company type or size. The results of this study are 95 percent +/- 4.75 percent statistically projectable to Marketing organizations.
What do best-in-class marketers do better and differently that enables them to achieve Marketing excellence at their organizations?
To answer this question, we must first determine what is best-in-class. With that in mind, a key aspect of our research for the past 16 years has been the grade the C-Suite gives Marketing for its ability to measure Marketing’s value, impact and contribution to the business. Participants rate their Marketing organizations using a 100-point scale, where 100 is the highest achievable score. The scale is 90-100, 80-89, 70-79, and 69 or lower. Those Marketers who receive 90 and higher are rated an A, those 80-89 are rated a B, those 70-79 a C, and those 69 or lower a D. Based on 16 years of consecutive research, VisionEdge Marketing has been able to classify Marketing organizations based on this grade into three primary personas: Value Creators those that receive 90 or better, Sales Enablers, those that receive the 80-89, and Campaign Producers those that receive 79 or less.
Despite the emphasis on MPM and all the advances and investments in data, processes and technologies, almost two-thirds of Marketing organizations have room for improvement in terms of deriving insights from data and improving business and Marketing performance.
Before you say they have more money or resources, the data doesn’t support this claim. The Marketing budgets and technology of Value Creators reflects no greater percentage of revenue than their counterparts. What we can tell you, is that the pressure to be able to manage and measure Marketing’s contribution, value and impact is only increasing.In the 2011 study, two primary factors, alignment and accountability, were statistically significant characteristics of organizations comprised of Value Creators, the BIC Marketers. That has not changed. This years’ study focused on uncovering the subtle nuances within alignment and accountability. The 2017 study, conducted by VisionEdge Marketing in partnership with Hive9 and Valid USA, found that Marketing organizations proficient in five core competencies of performance management and how they employ Marketing Operations contribute to the ability of these Best-in-Class Marketing organizations. As a result, they produce better business results and earn greater credibility and more influence over business decisions.
What then do the elite marketers, the top 23 percent, do better and differently to achieve higher-marks from the C-Suite for their ability to measure and report on their contribution to the business? The results suggest that there are six active ingredients employed by the Value Creators are more proficient than their counterparts. Find out what these are and how you can acquire them in the Cook Up Your Best Marketing Performance webinar, June 14 at 10 am PT | 12 pm CT | 1pm ET.
Photo Credit: BE THE MACHINE Flickr via Compfight cc
Laura Patterson is known for her practical, no-nonsense approach to proving and improving the value of marketing. Inventive and engaging, she quickly gets to the heart of the matter to provide actionable recommendations and solutions. Because her 20-year career began in sales and now spans customer relationship management and Marketing with a capital “M”, her recommendations are always cross-functional friendly. Laura is a strategic marketer, data and metrics master. Her company, VisionEdge Marketing has helped hundreds of companies, in a variety of industries, fulfill their marketing potential and achieve competitive advantage. An early pioneer on the science side of marketing, Laura is recognized as one of the leading authorities in marketing measurement and performance, content management, operations, and data and analytics.
