Customer trust, proving marketing's worth rise in State of the CMO results

Fourth annual State of the CMO research shines the spotlight on the evolving nature of the chief marketing officer role

A firm eye on customer trust, increasing confidence in proving marketing’s worth and changing customer technology purchasing dynamics are just a few of the key findings of this year’s State of the CMO research by CMO.

According to the fourth annual edition of the State of the CMO research program, the top customer priority identified by marketing leaders both before and in the midst of the COVID-19 crisis is having a trusted relationship with brands. This came in trumps over price, product quality and innovation.

In addition, more than seven in 10 respondents nominated ‘being customer-led’ as the primary growth driver for their organisations today.

Against this, this year’s report shows marketers playing a key role in leading the customer charge. Six in 10 said they oversaw the customer experience function within their organisations, along with customer analytics, while half those surveyed own CX strategy either in their own right, or jointly with executive peers.

Yet even as this push for customer emphasis grows, a gap was present between the CMO agenda, and how marketers are actually measuring success. For example, the majority of marketing leaders said they still use customer acquisition as the dominant metric for gauging success, against measures such as customer lifetime value.

When asked for specific metrics used to prove marketing’s value, campaign metrics by program came out tops (78 per cent), followed by sales revenue (71 per cent) and Web or mobile traffic (65 per cent).

Among other highlights of this year’s report is a double-digit rise year-on-year in chief marketing officers able to prove marketing’s ROI quantitatively, with nearly three-quarters confident in their ability to do so.

Unique to this year’s State of the CMO is also the look into how the COVID-19 crisis has impacted priorities, budgets and focus areas for marketing functions. When asked about marketing budgets in the COVID-19 environment compared to 2020 projected budgets, for example, more than half of respondents had experienced a decrease, with just shy of 50 per cent seeing budgets cut by at least 10 per cents.

However, it’s worth noting nearly 20 per cent said they’d seen their budgets increase during the crisis. When asked about how optimistic they were about the state of marketing right now, the majority of respondents were also found to be either ‘very optimistic’ or ‘somewhat optimistic’ despite the unprecedented challenges and operating environments we all find ourselves in at this time.

When it comes to customer technology procurement, a notable change seen year-on-year is a decrease in CMOs with sole purchasing decision-making power over procurement and sourcing. Just over one in five reported having sole purchasing decision-making power, down 10 per cent year-on-year, while 59 per cent reported joint purchasing decision-making power with the IT or digital team, a rise of 10 per cent compared to 2019.

The figures arguably highlight the maturing and growing scope of customer technologies, encompassing everything from campaign management, marketing automation and CRM tools, into whole-of-customer experience management across all functions of an organisation.

State of the CMO is an annual industry research initiative aimed at understanding how Australian marketing leadership is evolving. The CMO report looks into key aspects of the chief marketing officer position and function, encompassing the professional standing of the modern marketing leader, their technology procurement remit and investments, functional responsibilities, the extent of their roles and digital and customer owners within the business, and skills and priorities.

To access the full complimentary copy of the 2020 State of the CMO report, click here.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia


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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandateWe currently have Available FOB Rotterdam/Houston for JP54,D2, D6, JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Hi This is George, Thanks for sharing this nice information about foodpanda blockchain. During this pandemic situation food delivery indu...

George David

foodpanda launches blockchain-based out-of-home advertising campaign

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

An honest and hardworking conveyancer doesn't need a marketing strategy. His past clients will spread the word for him. These days the ho...

Bagen Andrea

What this millennial marketer is doing to shake up conveyancing

Read more

Blog Posts

Commissioning personas that get used

How to avoid the bottom drawer, and how to get value from the work you’ve paid for

Melanie Wiese

Chief strategy officer, Wunderman Thompson

Why It’s Going To Be A Bumper Holiday Season Despite the Pandemic

Behavioural science expert Dan Monheit, co-founder and strategy director of creative agency, Hardhat, writes that marketing chiefs should hold their nerve, as they have reason to be optimistic

Dan Monheit

Co-founder, Hardhat

Why marketing and UX teams must join IT on cyber security

For far too long, cyber security has been considered the sole domain and concern of the IT department, with other departments including marketing, UX and design, firmly entrenched in the belief it is not their concern. The reality could not be further from the truth. In fact, this view is dangerous as it could lead to irreparable brand damage and a lack of trust in consumer behaviour.

Nicki Doble

CIO, Cover-More Group

Sign in