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This blog discusses how the diminished role of the Chief Marketing Officer (CMO) has unfortunately pushed the customer to the background within many organizations. This shift has fragmented customer journeys and led to marketing being seen as merely a cost center, hindering true revenue growth. I propose that elevating the CMO back to a strategic position, empowering them as the "primary custodian of the customer," is crucial. By fostering deep collaboration across the C-suite, ensuring all departments focus on the "must-have-customer," and implementing aligned measurement systems, companies can re-establish customer-centricity and ignite their "Revenue Engine" for sustained growth.
Unleash your company's true potential by putting the customer, and your CMO, back at the heart of growth
I recently read the McKinsey article, "The CMO’s comeback: Aligning the C-suite to drive customer-centric growth," and it articulated a trend I've observed and been advocating against for some time. In recent years, there's been a concerning shift: the Chief Marketing Officer's influence has often waned. Once the main leader focused on understanding customer needs and championing their importance, the marketing function has, in far too many organizations, been relegated to a secondary role. This shift has had a negative impact, particularly in our increasingly complex, omnichannel world where customers navigate a multitude of brand touchpoints. When the advocate for the customer is sidelined, a company's ability to consistently attract and nurture its most valuable clients inevitably diminishes.
My own observations confirm that leaders have frequently come to view marketing primarily as a cost center, rather than a pivotal investment that directly fuels revenue. This perspective often leads to marketing budget cuts during challenging economic periods, tragically overlooking its immense potential to generate revenue by attracting new customers and significantly enhancing customer lifetime value (CLV). This, unfortunately, creates a widening gap between marketing initiatives and broader business goals. Consequently, organizations are finding it difficult to discover new paths to sustainable growth amidst economic instability and quickly evolving consumer behaviors.
What’s more troubling is the resulting ambiguity of customer accountability across the C-suite. As businesses rapidly evolve by establishing new specialized functions, the responsibility for the customer becomes fragmented across areas like marketing, sales, and digital. This fragmentation, in my view, creates a disjointed customer journey, where different departments, each with their own focus, inadvertently deliver inconsistent messages and experiences. When the critical task of acquiring and nurturing customers is theoretically everyone’s responsibility, in practice, it often becomes no one's.
My recommended path forward is clear: the CMO must be elevated again to an equal, strategic standing with other C-suite leaders and empowered as the primary custodian of the customer. Marketing leaders are uniquely suited for this crucial role because they possess a unique understanding of the customer. This isn't merely about parsing data; it involves a deep comprehension of the emotionally driven buying processes that truly motivate customers. As the repository of consumer insights, marketing departments are constantly analyzing market trends, refining customer segmentation, meticulously mapping buying journeys, and discerning purchasing preferences. They are uniquely positioned to ensure the entire organization remains intently focused on the "must-have-customer" – those indispensable clients who drive a disproportionate share of profits. By restoring the CMO to the strategic core of the C-suite, organizations can guarantee that the customer's voice is not only heard but becomes the very engine driving all strategic decisions.
For this strategic reorientation to genuinely succeed, CEOs must own the responsibility in strategically repositioning marketing as the primary driver of growth initiatives and ensuring that their executive peers genuinely recognize marketing's strategic contribution to overall business expansion. As I emphasize within my Revenue Engine Framework, the CEO must establish the strategic foundation and clear operational standards for all C-suite members. This commitment includes actively educating themselves on modern marketing principles and unequivocally acknowledging marketing's vital role as a growth investment, rather than just an expenditure.
Concurrently, CMOs must transition beyond a narrow, tactical perspective and embrace a broader, more holistic approach to business. This means prioritizing overarching business strategies and focusing on measurable strategic outcomes, rather than simply executing isolated campaigns. CMO’s need to clearly demonstrate marketing's tangible impact on the business, directly linking marketing metrics to broader financial objectives and demonstrable year-over-year revenue growth.
It is time for all leaders to undergo a crucial mindset transformation: concentrating on how their respective areas can contribute directly to revenue generation, rather than being perceived merely as expense centers. By aligning on critical measurements, methodologies, and testing protocols, every department can refine its performance tracking systems. This enables the translation of functional KPIs into business metrics that resonate across the entire C-suite. This cohesive, organization-wide approach is what truly tunes the Revenue Engine for optimal performance.
The CMO's resurgence is not simply about restoring a job title; it is about fundamentally re-establishing the customer as the central focus of the entire organization. By empowering the CMO to champion the "must-have-customer's" needs and fostering robust, collaborative relationships across the C-suite, companies can decisively optimize their Revenue Engine for sustained growth and thrive in today's dynamic market.