Digital economy gives power to the CMO

Chief marketing officer at Malaysian Airlines, Dean Dacko, claims the rise of digital and ecommerce has given marketers the chance to command and control revenue in their organisation

The rise of digital commerce and consumer engagement is handing the power to control and command revenue to the CMO role.

That’s the view of Malaysian Airlines’ chief marketing officer (CMO), Dean Dacko, who recently caught up with CMO Australia to discuss the changing nature of customer engagement, how marketing chiefs ensure their organisations keep on top of it, and why infrastructure and technology are needed to fuel these efforts.

For Dacko, marketing’s relevance as a strategic contributor to the business was historically limited because CMOs couldn’t directly correlate their efforts to the bottom line.

“In the past, marketing was always seen as witchcraft. It was a very intangible thing you spent a whole lot of money doing, but no one really understood or measured it,” he said.

“Your level of importance [as a CMO] inside the management team, and your ability to get investment and buy in from your colleagues, particularly the CFO and CEO, was challenged by your ability to really be the key driver of revenue generation.”

Thanks to ecommerce, the ability to command and control how you make money as an organisation is changing the dynamics in the boardroom and with it, the importance of marketing as a discipline.

“The ecommerce platforms used to be controlled or otherwise delivered by the IT team – they built it and were responsible for it, then it was the responsibility of sales or finance as to how that ecommerce platform evolved,” Dacko said.

“Now it’s evolved towards marketing because by nature, it’s about understanding the relationship with the customer.

“How you attract, convert and ultimately capture the revenue derived by that [customer] relationship is all a function of marketing. All the different levers you employ and communications you use that drive those consumers into your own infrastructure to make that purchase, even if that infrastructure is managed by a third party, it’s much more due to the relationship that marketing controls now.”

As a result, power in the boardroom is shifting away from IT, sales and finance to marketing. “You can now start to show there’s a linear line between the customer and the bottom line,” Dacko added.

While individual verticals experience distinct consumer characteristics, Dacko claimed all CMOs need to come to grips with the reality of a rapidly evolving consumer dynamic.

“Consumers are constantly adopting new ways and means of determining how they’re going to make their purchase decision and ultimately, the type of relationship they have with a brand or product,” he continued.

“If you’re not engaged in understanding how you’re going to build the infrastructure, invest in the right personnel and technology, along with vision and strategy to meet the needs of that consumer, you will be left behind. And you’ll probably have a competitor that’s always one step ahead of you, more capable than you are of doing this.”

“No matter how big you are, how broad and deep you go and how much strength you believe you have as a brand, the reality today is that a consumer’s ability to change and select someone else, whether they be around the corner or around the world, is at their fingertips,” Dacko said.

“They hold all the power and you need to be investing in that kind of relationship and meet their needs in real time.”

Want to hear more from Malaysian Airlines CMO, Dean Dacko? Then sign up now to receive your complimentary copy of CMO’s forthcoming magazine: by emailing our subscriptions team.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Undoubtedly, Robotic Process Automation enables marketing teams to accomplish repetitive tasks with fewer resources at a great accuracy.

Raj

What marketers need to know about robotic process automation

Read more

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

Blog Posts

Attention marketers, it’s the small things that make a big difference

Marketers spend their careers searching for the formula that can improve the bottom line for their brands. Most new marketers also come into a role and feel like they need to put their own stamp on things.

Peter Pynta

CEO APAC, Neuro-Insight

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in