One of the immediate outcomes of the just published IBM Institute for Business Value's study of 1,734 chief marketing officers is a collective sigh of relief among CMOs who have reviewed it, says Carolyn Heller Baird, director, Global CRM Research Leader at the Institute.
“The CMOs with whom we've shared the results tell us they're relieved to know they're not alone in helping their organizations cope with the fundamental shifts we're seeing in business,” observed Baird. “While we're still sifting through the data on an industry-by-industry basis, the CMOs are remarkably similar in terms of how they manage data, deliver value, foster lasting connections and measure results. In reviewing what their peers say, the CMOs feel validated and inspired.”
I can relate to that. As the CEO of an independent, midsized communications firm, I often feel alone in making decisions. So, I can empathize with the pressures that must weigh on the CMO of a Fortune 500 company.
And, while Baird says there are no dramatic differences between CMOs in the business-to-consumer and business-to-business spaces, she does see distinctions between chief marketing officers in emerging markets (i.e. Kenya, Croatia and Peru) vs. those in mature ones (i.e. The U.S., Germany and Japan).
“CMOs in emerging markets have fewer legacy issues and more flexibility. In many ways, they're starting from scratch,” Baird says. As a result, they can wear multiple hats and make multiple decisions. And, that has to be liberating.
Regardless of whether they find themselves in the Czech Republic or the United Kingdom, though, I have to believe every CMO wants to avoid the gaffe just made by their peer at Netflix. In fact, The New York Times says the corporation “…made a classic business mistake. In its reliance on data and long-term strategy, the company underestimated the unquantifiable emotions of subscribers who still want those little red envelopes, even if they forget to ever watch the DVD's inside.”
IBM confirmed that managing what they call 'the data explosion' was the top concern of CMOs and that many “struggle to develop customer insights because they primarily focus on understanding markets rather than individuals.” I believe far too many marketing and corporate communications executives depend solely on data to drive their decisions. The smartest ones know a mix of gut instinct and intuition are just as important in deciding their marketing mix; as is the elementary, but often overlooked, solution of simply putting oneself in a customer's shows and experience the brand from the outside in.
I don't know if the Netflix CMO felt alone when he made a huge decision relying solely on data and yesterday's strategy, but he'll most certainly be alone in resurrecting his career. Before he starts the journey, though, he might want to read the IBM report. It may prevent a similar mistake down the road.