Should CMOs Concentrate on Brand Building or Business Growth?

Do you remember when Coca-Cola did away with their CMO in favour of a Chief Growth Officer? Then two years later they brought back the position. At the time, I asked if they were wise or foolhardy to make such a change, but they answered the question themselves!

In an interview with Marketing Week, their global vice-president of creative claimed that it had “broadened” the company’s approach to marketing. Obviously, this didn’t live up to their optimistic expectations. I think that other companies who followed suit, also realised that they need a CMO after all. However, their role has changed significantly. 

 

HOW MARKETING HAS CHANGED

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’re like me and are fascinated by how change happens, then I’m sure this complete history of marketing Infographic by Hubspot will be of interest.

With the arrival of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Their consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated their consumers with spammy emails, popups and “subtle” cookies for following their every move. No wonder the EU felt inclined to develop its GDPR (General Data Protection Regulation).

What has changed over the past five years is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen and their impact on marketing, include:

  1. Chatbots, especially through Facebook Messenger and WhatsApp, to catch consumers on the go with highly personalised messaging.
  2. The use of voice. With the battle between Amazon, Microsoft and Google in the voice search and commands domain, customers can get answers just by asking. This is a huge challenge for businesses because being on the first page of search results is no longer enough; you have to be first!
  3. Video is taking over social media, with its rapid rise on YouTube, Vimeo, Twitter and Facebook.
  4. Influencer marketing is giving way to customer journey mapping with the increased detail that IoT can provide. Many organisations have moved their marketing plans to mirror their customers’ path to purchase. Or rather paths, as personalisation continues to trump mass engagement.
  5. Zero-party data. As social media platforms have seriously reduced the collection of their subscribers’ data, brands are increasing their direct engagements with their consumers. Through polls, quizzes and competitions, they openly ask for consumers’ details, bypassing the need for cookies.

Have you taken these megatrends on board and adapted your marketing accordingly? If not, why not? 

 

BRAND BUILDING

In the past decade or so, many large CPG companies such as P&G  and Nestle renamed their Marketing departments as Brand Builders, in the hope of adapting to this new world. They failed, miserably.

I believe the reason they failed is that despite this name change, they continued to run their marketing in the same old way. Continue Reading

The Good, Bad and Downright Ugly Parts of a Head of Marketing Job

Listen on Apple Podcasts“Never miss an episode. Subscribe on Apple Podcasts to get new episodes as they become available.”

 

Did you know that the average tenure of a Head of Marketing position continues to fall, reaching just 41 months according to the latest Spencer Stuart research published by the WSJ?

It is still one of the shortest average terms of office of any chief in the C-suite, according to a recent report by Korn Ferry. But one piece of good news in the past year is that although conditions for CMOs have become more difficult since the coronavirus pandemic, “In many cases, CMOs are not being removed, but it’s been pretty dramatic layoffs beneath them” said Greg Welch, practice leader for marketing, sales and communication at Spencer Stuart.

So just how long have you been in your position?

The Bad News

A global survey by the Fournaise Marketing Group provides one possible explanation for the continued decline in tenure. It highlights the ongoing tensions between CEOs and CMOs. A huge 80% of CEOs don’t trust or are unimpressed with their CMOs, compared to just 10% for their CFOs and CIOs. Why is this?

Perhaps it’s because CEOs don’t understand the role of a CMO or is there still an issue with the ROI of the marketing budget? I’ll let you be the judge of this in your own situation.

Another piece of research by HubSpot reported that Marketing as a career suffers credibility issues as well. It ranked the most trustworthy jobs, with Doctor ranking number one and near the bottom, just above Car Salesman and well below Barista, was “Marketer”. Car salesmen? Really? That is scandalous!

The Opportunities

Let’s start at the beginning. What opportunities are there, that marketers can keep their jobs? Despite the short lifespan of a CMO, and while the position is plagued by high turnover, this could also be because CMOs are highly visible.

Therefore they can be targets for promotions or a steal by their industry competitors. Nice to feel wanted, isn’t it?

It is understandably important that a new CMO quickly makes an impact. More so than any other c-suite function, bar the CEO of course, who sometimes faces almost immediate criticism by shareholders and the financial world, upon being named.

Another piece of good news for the head of the marketing function is that being on the executive board they have access to resources. The bad news is that as the CMO is a member of the EB, management expects them to make (profitable) changes fast.

And even more so if they have just been hired! The board trusts the new CMO to analyse the situation, identify what needs to be done, develop the plan to do it and then take actions. And all of this in their first 3 months or so!

Are you or have you yourself been in exactly this situation? Tough isn’t it?

That’s why many CMOs hire a supportive advisor or sounding board such as myself to accompany them on this stressful early part of their journey.  Continue Reading

The Future of Brand Building is Customer Centricity

Marketing is an old profession. It’s been around for hundreds of years in one form or another. But with the advent of digital in the early 80’s, companies began taking a serious look at their marketing strategies.

Many organisations realised that it was time for a major overhaul of their primarily outbound strategies. Consumers no longer appreciated being interrupted in their daily lives, if they ever did!

However, even today, with the creation of inbound marketing strategies, they are still irritating their customers with spammy emails, intrusive pop-ups and over-complicated cookies, that gather far more information than most organisations will ever need or use.

Despite these changes CMOs remain one of the leading c-suite members who struggle to keep their jobs for more than four or five years. The reasons are many, but the post “Head of Marketing, How Can You Keep Your Job When Most CMOs Are Losing Theirs?” explains what you can do to ensure you only leave your position when you want to.

 

Brand Building

Many large CPG companies, such as P&G, Coca-Cola and Nestle, have changed the name of their Marketing departments in the past twenty years, to Brand Building. They hoped that it would revive sales and give new vitality to their communications to better engage their customers in the new social world. But most failed miserably, because they remained very much in a state of business as usual. They continued with the same processes and mind-sets. And with few exceptions, they prioritised thoughts about themselves and their brands, and rarely took their customers’ perspective.

Luckily a few other consumer goods companies realised that to satisfy the consumer they had to do things differently. They were the ones that moved to customer centricity. Or to be exact they started on their journey towards putting the customer at the heart of their business. Customer centricity is not a destination, because consumers are constantly changing and their satisfaction never lasts for long. It is a journey with the aim to satisfy and delight.

I think we have taught our customers far too well! They understand a lot more about “marketing” than they used to. They understand that companies have marketing plans and regular promotions, so they wait for the next price offs whenever they can.

They also realise that in today’s world, products have become more and more similar. Their format, colour or perfume may differ, but there are strong similarities in their performance.

That’s why consumers now often have a portfolio of brands from which they choose in many categories. They are far less likely to be loyal to only one brand than they used to be.

 

They have also come to expect constant innovation as they quickly adapt to the once novel idea and start searching for the next big improvement. According to Accenture’s “ Customer 2020: Are You Future-Ready or Reliving the Past?” almost a half of consumers believe that they are more likely to switch brands today compared to just ten years ago! Continue Reading

How the Best Marketers are Getting More Actionable Insights

Are you as busy as I am, as we plan on how we’re going to deliver on all our objectives before year-end?

The last quarter of any year is a stressful time indeed, but this post on actionable insights is a must-read if you want to start 2020 ahead of the competition!

I’ve just returned from running a two-day workshop in Japan. The topic was “Insight into Action with Impact”. One of the things that I loved about the workshop was that marketing was invited too. Even though market research and insight (MRI) groups generally report into marketing in most companies, it seems to me that they are often working on different planets! In many organisations, the collaboration between these two departments goes no further than project briefings and results delivery.

This is not the case with my client in Tokyo; this MRI group has a wonderful working relationship, not only with marketing but also with Channel, Sales, R&D, Finance and even Legal. They have understood that insight development is too important to be left to the market research team alone and have worked hard to build strong relationships with all the other departments in their organisation.

I am sure that many of you reading this, are asking why this is so important. It is NOT important, it is VITAL! Insights are the golden nuggets that we are all searching for. Successful companies depend upon deep customer insights to grow their business. They understand the power of engagement built on insight, to connect with and inspire their customers. And yet many companies continue to leave this to the insight team to develop and deliver on their own. It’s as if they believe that this group have some natural-born skill or magic that enables them to do it while others cannot. Don’t worry, we can all do it with the right training and a few tools.

Great companies understand the importance of insight generation and the challenges faced by everyone in developing them. This is why the best marketers search for greater collaboration. I always encourage the market researchers in my client companies to socialise with other departments, rather than sitting behind their computers all day. The best marketers already do this, do you?

I was encouraged to see that marketing have finally understood the importance of insights. In some recent research by Gartner CMOs selected market research and insights as just as important as marketing analytics and digital commerce (see graph below).

Better late than never I suppose, but it always amazes me that marketing could put anything ahead of insights. After all, every action they decide to take should be based upon deep knowledge and understanding of the customers targeted.

 

actionable insights supporting marketing strategy

 

If you are struggling to develop insights that will truly resonate with your consumers or customers, then I suggest you follow these eight tips that I shared with my client’s marketing and insight teams last month.

 

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Despite being some of the best marketers I know, they are still keen to progress their thinking and processes to embrace customer-centricity in every area of their organisation. Continue Reading

Today’s Toughest Marketing Challenge is Not Customer Satisfaction!

We all know how extremely demanding consumers have become in recent years. The offers of constant innovation and novelty have made us all more impatient and critical.

Today we want things better, faster and sometimes cheaper as well. And customer satisfaction is becoming insufficient to drive growth alone. Companies need to deliver more, a lot more!

I was recently in the US and as seems to be the norm these days, the hotel in which I stayed asked me to rate their performance afterwards. I completed their form, giving only four and five-star ratings, as I had been very satisfied with my stay, the hotel rooms, the staff and their services. Imagine my surprise therefore when I got the following email a day or so after submitting my review:

“Thank you for taking the time to complete our online survey regarding your recent stay at our hotel.

On behalf of our entire team, I would like to apologize for failing to exceed your expectations. Your satisfaction is important to us and we will be using the feedback you provided to make improvements to ensure we offer an exceptional experience for our guests in the future.

I hope that you will consider staying with us again so that we can have another chance to provide you with a superior experience.”

Shocking mail isn’t it? To think that a Hotel apologises for not exceeding my expectations! But I believe that is exactly why they get a 4 1/2 star rating on TripAdvisor. For them customer satisfaction is not enough; they want their guests to be enchanted, enthralled, excited, so that a return visit is a “no brainer”; no other hotel choice would make sense!

How do you treat your own customers, consumers and clients? Do you do just enough to satisfy them, or do you consistently look to exceed their expectations?

If you are a regular reader here – and I’d love to know why if you’re not, so I can do better in the future – you will know that I often talk about “surprising” and “delighting” our customers. These are not hollow words; there’s a very real reason why I use them. The reason is that our customers may be satisfied, but they will never stay satisfied for long.

The above personal example I give is one way that the hotel staff ensure they have enough time to correct whatever is not a “superior experience” as they term their own desired service level, and to continue to offer total customer satisfaction.

 

Here are a few examples of other companies who go above and beyond in terms of their own customer service. I hope they inspire you to do the same and to aspire to exceed customer satisfaction whenever and wherever you can.

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Amazon

I have to start with Amazon because they clearly mention in their mission statement that they want

“to be the Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”

Continue Reading

The New Way to Innovate You Must Start Using Today!

When I get several requests in the same week on exactly the same topic, I know something is happening in the marketplace. This week was one such occasion.

A Pharma company wants a presentation on it; a CPG company asked me to give a half-day workshop about the topic; a conference requested a keynote speech about it; a major US business school wants a guest lecture covering the idea  and a consumer goods company wants an article for their newsletter. What’s the topic? The new ways to innovate, that’s what.

With all this interest, and despite having written some popular posts in the past on best-practice innovation, such as “ How to innovate more creatively”, “How to get R&D as excited about consumer innovation as you are”  and “Never succeed at innovation: 10 mistakes even great companies make”, I thought I would summarise the latest trends around how to innovate more successfully today. So here are some ideas to get you thinking about the changes you might want to bring to your own innovation processes.

Customers react to new innovation1. Start with the customer in mind – always

So many organisations still have an innovation process that starts with R&D or operations. It’s time to reverse your innovation funnel and start with the customer. (>>Tweet this<<) What are their problems with current products and services; what do they dream of having? How are they compensating or compromising?

 

If I had asked people what they wanted, they would have said faster horses” Henry Ford

“People don’t know what they want until you show it to them” Steve Jobs

However, as Henry Ford and Steve Jobs remind us, customers don’t usually know what they want. They are usually very clear about what they don’t like, but they also often know the solution they are looking for – even if they don’t express it as such. It is our job to interpret what they are saying into what they need. Therefore, identify the result they want but not how they want to achieve it, otherwise you will be looking for that “faster horse”!

2. Stage-gate innovation is essential for a successful business

Today’s world is fast paced and customers never stay satisfied for long. What surprises and delights today, is ordinary and normal, if not tomorrow, at best in a couple of weeks or months. That’s why it’s vital to work on new product and service developments even before you launch your latest offering.

NEW INNOVATION STAGE-GATESMany companies today work with generation pipelines, with three, four or five stages of innovation preparation. This ensures that they are already working on the replacement of each product they launch, whether or not it’s a success.

3. Line extensions can only do so much

Innovations risks opportunities

According to the McKinsey article “ Reinventing Innovation in CPG“, real growth comes from ground-breaking innovations, not simplistic renovations. However, line extensions do provide the time for organisations to prepare their true innovations, while responding to today’s customers incessant desire for novelty. Continue Reading

STOP Emotional Innovation!

Last week, I posted about making innovations more emotional; if you didn’t see it, you can find it here. Today, I want to speak about the other side of emotional innovation; how to STOP some of your own emotions, when launching new products.

One Sunday last Summer I had been planning a lie-in, like most of us do when we don’t have to get up for work at the weekends. However, I was woken up very early by one of my cats who came to proudly show me that she had caught a bat! 

Both my cats love hunting and I have to say they are (too) good at it! They give me frequent “presents” that I discretely dispose of, unless of course they are alive, in which case I have to catch them and return them to the wild outdoors, whilst the two of them continue to sniff around the last place in which they had seen their prey.

Anyway, my cat Apricot – a female ginger – was really excited about her very rare capture, which is why she had woken me up to show me. Of course, I was less than enthusiastic about a bat flying around my bedroom at five in the morning! Luckily when I switched on my bedside lamp, the light quietened it down and when he stopped flying, to hang on the wall, I was able to catch him and put him back outside where be belonged.

 

Do your innovations excite you or your customer?

Now awake, my mind started musing on the very large differences in the reactions of my cat and me, to this event. She was excited, happy and proud; I was surprised, disappointed and irritated that I had to stop what I was doing – sleeping – to attend to her “present”.

I think something similar happens sometimes when companies launch new products or services. Everyone in the organisation gets excited about their innovation or renovation, are proud to have developed it and happy that after all the hard word, it is finally ready for launch. The customer on the other h and, can be surprised, which is great if this is accompanied by pleasure, or disappointed if the promise is not delivered. However, he might also be irritated if his usual br and or version has been replaced and is no longer available, or at least no longer on the shelf or store in which he usually finds it. We are in fact asking him to work, to change his habits, which no human being really enjoys, even when it is for the better.

 

5 Questions for winning innovations

So how can you make your new product development more customer-centric? By starting from your target customers’ perspective, and by answering these five questions:

  1. How are your customers currently using your product or service? What are their pain points if any; price, packaging, size, availability, sensorial experience – taste, aroma, colour, sound, feel?
  2. Who is currently changing or has already changed their habits to compensate for these pain points?
Continue Reading

When Did You Last Really Delight Someone?

Now just to be clear, I am not talking about your spouse or significant other, whom I assume you delight every day! I’m talking about your customers, consumers or clients; the ones whose satisfaction and delight makes your business grow. 

An article last year on Forbes Blogs detailed a discussion with Amex EVP of World Service Jim Bush, where he was quoted as saying “we have been taking them (customer service personnel) off the clock and tossing out the old, robotic scripts”.

He also mentioned that “we believe that great service is about what the customer thinks after every interaction”.

 

Delight or Delete

Did you know that if a customer contacts a service centre and is dissatisfied with the response they get, they are more than twice as likely to not repurchase your product or service as someone who had a complaint but did not contact the care centre? Customers who reach out to a company to complain, become fervent detractors if not satisfied by the response they get.

If they have taken the time to call, you need to do everything possible, not only to respond to their needs, but also to surprise and delight them, by “going the extra mile”, going beyond what they had expected, to solve their problem or answer their query. In this way they then become advocates and will share their experience with friends, family and even strangers over the Internet these days.

 

A personal example of ABCD Service

At the end of last year, I tested a few companies’ customer care services as I did online purchasing of my Christmas presents. One company’s products were delivered by the post office to the wrong address (an empty house) and when eventually found, the package had been completely ruined by the rain and snow.

I called the company, even though it was not directly their fault; they not only replaced the damaged goods, but sent them by first class post to ensure I got the parcel in time for Christmas. Now that is service ABCD (above and beyond the call of duty!) the story of which I happily shared with everyone over the festive season. You can be sure that I will use their services again and choose them over other suppliers in the future.

 

What more can you do for your Customers?

I wish more companies would start thinking like Jim Bush and treat every single customer as vital to the success of their business. Whenever a customer contacts you, by whatever medium and for whatever reason, you have a unique chance to engage one-to-one with them on their terms, and to surprise and delight them.

How are your own customer services personnel trained? Do they have a script to which the must adhere and targets of time or cost limitations to respond to each contact?

Here are some ideas on how to improve your Customers’ experience when they reach out to you:

  • Start by thanking the customer for having taken the time to call or write
  • Listen to everything the customer has to say before responding
  • Solve the issue if possible, or say how you are going to get it resolved, by whom and in what timeframe
  • Ask if there is anything else that the customer would like to ask or share
  • Then and only then may you invite the customer to respond to any questions that you would like to ask, if relevant, but keep it short
Please share this post with all your friends and colleagues; the more people that know how to do customer service right, the better we all will be!
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I hope you enjoy reading this blog post.

If you want me to catalyse your growth and profitability, just book a call.

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