What Does A CMO Do?

What a CMO Truly Does: More Than Just Marketing

The Chief Marketing Officer (CMO) role presents a fascinating paradox. This executive is tasked with the critical responsibilities of driving revenue, cultivating enduring brand loyalty that fuels future earnings, and frequently managing substantial data and technological infrastructures. Yet, this very C-suite position often experiences the shortest tenure. For some time, CEOs exhibited lower confidence in and trust of the CMO role, although recent data indicates a positive shift. The significance of this role and its wide-ranging duties sometimes contrast with the statistics surrounding those who hold the CMO title. Let’s examine the CMO position more closely, including its responsibilities, necessary qualifications, and more.

Defining the CMO

A CMO stands as the foremost marketing leader within an organization. This executive oversees the complete lifecycle of marketing and advertising initiatives, from initial planning and development to final execution. The rise of digital marketing has significantly broadened the CMO’s scope. Today’s CMO must be adept at data analysis, comfortable with technology, and possess a profound understanding of consumer behavior.

A Glimpse into the CMO’s Day

The allocation of a CMO’s time is influenced by factors such as the organization’s size and the nature and breadth of its offerings. However, a constant for any CMO is a significant amount of time spent in meetings, both physical and virtual.

Interestingly, a Deloitte report indicates that CMOs dedicate less than one-third of their time to direct interaction with their marketing teams – a mere 28%. Time spent collaborating with Sales and Operations each accounts for 16%, totaling 32%. IT, Human Resources, Research and Development, and Finance also feature in their cross-functional engagements. Beyond these collaborations, half of the surveyed CMOs identified the CEO as their most vital strategic partner outside of the marketing department. It’s therefore logical that “communicative” and “collaborative” emerged as the top two essential traits for senior marketers, according to Deloitte.

The CMO role can be demanding in terms of time commitment. CMOs participating in a forum discussion on their work hours offered varied perspectives. One estimated an average of 55 hours per week. Another noted that workweeks could range from 30 to 65-80 hours, with the longer durations being more typical. A third suggested 45 hours as a standard, punctuated by surges to 65-70 hours during budget preparation. Most emphasized the importance of establishing boundaries, highlighting that even if complete work-life balance was elusive, protecting time for family and personal interests was crucial.

Recurring demands and seasonal cycles significantly shape a CMO’s activities. Monthly reporting, annual budgeting, quarterly reviews, and numerous weekly meetings all dictate the immediate priorities of a CMO.

Essential Skills and Qualifications for a CMO

A CMO must possess strategic thinking capabilities, enabling them to analyze market trends, understand the competitive landscape, and grasp customer needs to formulate marketing strategies that align with overarching company objectives. Proficiency in analyzing consumer insights, market research, and other data is also paramount. Furthermore, a comprehensive understanding of all facets of digital marketing, encompassing social media, search engine optimization, search engine marketing, and email, is essential.

Beyond expertise in various marketing disciplines, an effective CMO must be a strong leader, manager, and communicator. Inspiring the marketing team and clearly articulating marketing strategies and their rationale to the executive team are equally vital. Simultaneously, the CMO needs the capacity to comprehend and manage granular details such as campaign performance and budgets.

A critical yet less tangible skill is the ability to cultivate innovation and creativity. To remain competitive and adapt to market shifts, the adoption of novel marketing approaches, new products, and emerging technologies is crucial. The CMO must not only be personally creative but also foster a team and environment where innovation flourishes.

CMO Background

While specific educational prerequisites for CMOs don’t exist, most candidates typically hold a business degree or an MBA, often with a specialization in marketing.

More significant than a particular degree is substantial experience in marketing and related fields. Companies seek a consistent history of success and leadership in prior roles. Industry-specific experience is often a requirement, though occasionally, a company aiming for a marketing transformation might seek a candidate from a different sector to introduce fresh perspectives and innovative tactics.

In today’s landscape, marketing technology is a key driver of marketing success. A CMO must possess a working knowledge of all technologies relevant to the company’s markets. This doesn’t imply being an expert user of every software but rather understanding how different technological components integrate. They must also be aware of the broader range of technology options available and recognize when upgrading the firm’s technology infrastructure will lead to improved performance.

The Indispensable Role of a CMO

Today, the value a CMO brings extends far beyond basic marketing tactics or brand oversight. The CMO plays a central role in propelling company growth and adapting to the rapidly changing business environment, heavily influenced by technological advancements and evolving customer behaviors.

The CMO’s responsibilities continue to expand, making the role increasingly complex and vital to a company’s success. Here are key ways a CMO impacts organizational outcomes:

• Strategic Vision and Leadership: Top CMOs are more than just marketers; they are strategic thinkers who identify market opportunities and align marketing strategies with the company’s broader goals.
• Customer Centricity and Insight: Understanding the customer is at the core of a CMO’s function. They delve into consumer psychology, preferences, and behaviors, employing various tools from traditional focus groups to modern neuromarketing techniques to understand drivers of customer decisions and loyalty. This enables the creation of products, services, and experiences that meet and exceed customer expectations.
• Brand Building and Reputation Management: A strong brand is invaluable, and CMOs are central to building and managing the company’s brand equity.
• Driving Revenue and Growth: CMOs directly influence the company’s financial performance. They develop and implement marketing strategies that boost sales, expand market share, and achieve sustainable growth. By analyzing consumer trends, CMOs identify new market opportunities and growth channels.
• Adapting to Technological Changes: Technology and customer usage patterns are constantly evolving. CMOs are crucial in keeping the company ahead of these technological shifts. They leverage digital marketing tools, social media, and data analytics to engage customers, personalize marketing efforts, and maximize marketing impact. Often, the CMO is a key driver of digital transformation within a company.

Typical CMO Compensation

The median salary for CMOs in the U.S. currently stands at $358,000, according to Salary.com. Bonuses can elevate this figure to $528,000. The top 10% of CMOs earn over $486,000 in base salary alone, or $792,000 including bonuses. Compensation varies based on company size, location, individual experience, education, and other factors. For instance, the median CMO salary in New York City is $620,000, or $930,000 with bonuses.

Internationally, CMO salaries tend to be lower than in North America. Data from Salary Expert indicates the median base CMO salary in the U.S. is $285,000. Comparing this to median base CMO salaries in other major economies (all figures in USD):

• Canada: $220,000
• Australia: $207,000
• Brazil: $134,000
• France: $151,000
• Hong Kong SAR: $205,000
• United Kingdom: $208,000

Top marketing executives at large corporations can earn significantly more than these averages suggest. According to Equilar, AT&T’s leading marketer, Lori Lee, received $9.7 million in 2022. Uber’s SVP for Marketing, Jill Hazelbaker, was compensated $8.2 million, while Coca Cola’s CMO, Manuel Arroyo, earned $7.4 million.

The same report revealed that top CMO compensation is increasing compared to other senior corporate roles. From 2018 to 2022, the number of marketing executives among the top five earners at public companies rose from 48 to 122, with over half of this increase occurring in the final year. Equilar attributes this to “a significant shift in the recognition and compensation of marketing leadership.”

CMOs and Customer Experience

An increasingly important area for CMOs is the creation of a cohesive customer experience that fosters brand loyalty. This encompasses diverse elements such as customer service, packaging, retail design, and sales. The CMO must maintain and enhance the customer experience even as technology evolves and customer behavior shifts.

When CMOs lack direct control over functions impacting customer experience, they must collaborate with and influence those who do to ensure a consistent and seamless journey.

A significant trend is the growing customer demand for a transparent omnichannel approach. In-store retail, curbside pickup, delivery, and e-commerce must integrate smoothly to minimize customer effort and maximize satisfaction.

While currently a smaller factor, virtual reality and augmented reality will increasingly reshape traditional customer touchpoints, potentially ranging from improved in-store navigation and product search to immersive VR shopping experiences.

The Evolving Landscape of CMO Roles

The CMO role is relatively new, emerging in the 1990s according to the Harvard Business Review. The 2000s brought significant change as the digital revolution reshaped company-customer interactions. This evolution continued with the advent of big data and a greater focus on personalization.

Today, we stand at the precipice of another major transformation in the CMO role. While marketers have utilized artificial intelligence tools for years, the rapid growth of generative AI promises to disrupt every marketing function. The CMO will be responsible for navigating a period of rapid and sometimes confusing change. New tools from both startups and established providers will offer novel capabilities but also present risks to customer and employee relationships.

Initial changes are already underway. Lower-level tasks traditionally performed by humans are being altered or even eliminated. Customer contact centers are undergoing significant transformation as AI augments or, in many cases, replaces human representatives. CMOs will need to manage this transition to capitalize on opportunities for enhanced customer experience through reduced wait times and faster, more accurate issue resolution. Simultaneously, premature implementation of unproven technology could lead to customer frustration and employee disengagement.

Other functions already being aided or replaced by generative AI include basic content creation and social media interaction.

An even more profound shift will occur as AI takes on higher-level tasks previously exclusive to humans – data analysis, report generation, brainstorming and ideation, application development, website design, graphic creation, and policy recommendations. Across the marketing function, a need for fewer personnel is likely, with remaining employees requiring skills in leveraging AI to achieve necessary outcomes.

CMOs will need to guide their organizations through this transition, maintaining productivity and results while addressing various human resource challenges, including upskilling some employees and managing departures of others.

Is the CMO Role a Promising Career Path for the Future?

Whether the CMO position or other senior marketing leadership roles represent a desirable career goal depends on the individual. Those uncomfortable with significant change and continuous learning might find more stability in less demanding roles.

The saying, often attributed (perhaps incorrectly) as a Chinese curse, “May you live in interesting times,” carries a negative connotation, implying periods of great trouble, upheaval, and danger.

However, if you are someone who can view “interesting times” through a positive lens, seeing them as periods of significant change and opportunity, then you might possess the qualities needed to thrive as a CMO.

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