The Role of the CMO

MARKETING & THE ROLE OF THE CMO

CMO's primary role is the designing & running of the marketing bowtie and optimizing marketing investment programs within the bow tie (van der Kooij).

MARKETING METRICS – CHOOSE MARKETING METRICS THAT RELATE TO BUSINESS OUTCOMES THAT THE CEO AND CFO CARE ABOUT REGARDING REVENUE AND PROFIT

Coauthor marketing metrics that drive business value ie ROI

Build process for marketing metrics:

Measure

Quantify

Communicate

The role of marketing metrics is to demonstrate how marketing actions affect revenue outcomes (ROAS model coauthored)

MARKETING ANALYTICS

Develop the link between marketing metrics and financial outcomes with ROAS model

ROI of total marketing spend is a strategic KPI

Managing a portfolio of marketing investments

The ability to coauthor KPIs, attribution & ROI model

Measure

Quantify

Communicate

MARKETING VALUE TO THE BUSINESS STRATEGIC OBJECTIVES

Know the impact of each marketing investment

Forecast outcomes to determine KPIs and benchmarks for that KPI (Coauthored ROI model)

Make the quantitative business case for a spend/buy

Test marketing vendors then compare which program has the best ROI then allocate more resources to that

THINGS FOR MARKETING TO WORK ON & MEASURE

● Increase LTV of customer and average check size per spend

● Decrease cost per acquisition

● Connect marketing to business outcomes (sales attribution)

ROAS IS THE KEY METRIC WHEN EVALUATING NEW VENDORS AND MARKETING PROGRAMS RATHER THAN COST CENTER METRICS LIKE CPL OR CPA

● ROAS is about driving business outcomes

● The ROAS model must model the revenue cycle and % conversion in each stage with the stages of:

● Lead creation (inbound)

● Appointment/consultation

● Conversion/sale

● Coauthored ROI models leads to closed deals - it transitions advertising from a cost center to an investment and ROI center

THE RELATIONSHIP BETWEEN MARKETING & SALES

Marketing when done well creates qualified lead flow for sales to work and close. Constantly adding new names to a pipeline, nurturing those and then handing them off to sales when they are ready to find a solution.

GOALS & BENCHMARKS

Set goals for each KPI and have a benchmark that we are measuring against throughout the bowtie & ROAS model

WHAT IS MARKETING?

Marketing is the building & running of the new client acquisition process/capability as well as the existing client retention & upgrade process/capability within the organization.

New client acquisition capability & existing client retention & upgrade capability is ultimately a funnel made up of touchpoints. The marketer thus must build the new client acquisition process within the organization as well as the existing client retention and upgrade process within the org.

First, the marketer has to engineer/design the funnel and then implement it within the organization. From there the marketer has to run the process or funnel in order to hit the corporate objectives.

THE ROLE OF THE CMO:

When building out the separate funnels for new customer acquisition and existing customer retention and upgrade, the CMO will often look to implement various solutions in order to do so. This means needing to evaluate new vendors in order to hit the corporate objectives of the organization.

I. DESIGNING THE CUSTOMER JOURNEY - Design of funnels to facilitate what type of lead? (Ideal is to isolate undecided buying intent from ideal demographics)

II. VENDORS TO DRIVE PEOPLE INTO THE FUNNEL

III. CPA & ROI TARGETS

IV. ATTRIBUTION METHODOLOGY

V. REPORTING, ANALYSIS & CONTROL- Comparing KPIs and ROI across platforms