IBM Study: CMOs Overwhelmed by Change

From Stretched to Strengthened, Insights from the IBM Global CMO Study, Download copy

CMOs are overwhelmed by the complexity of their jobs, and things are going to get more complicated in the future, according to a comprehensive survey released by IBM on Tuesday. IBM also provided recommendations on how CMOs can stay on top of their jobs.
CMOs are confronted by an array of changes, including the emergence of social media, increased connectivity, shifting populations, greater availability of technology, and more. "The really interesting dynamic there is that only 48 percent of them believe that they were in any position to handle that," said Craig Hayman, General Manager of Industry Solutions at IBM, in a Webinar co-sponsored by IBM and The CMO Site on Tuesday. (Register here to watch the replay of the 48-minute Webinar and receive a free copy of the 70-page report.)

"This is a good call to arms, call to action, as it were -- 'Look, I know that change is coming; I'd better get ready,' " he said.
What do CMOs need to do to get ready? IBM provided recommendations, based on results of outperformers in the survey. It starts with embracing, engaging with, and delivering to empowered customers.
"They own your brand. They are your brand," said Peter Korsten, vice president and partner, IBM Institute for Business Value. Korsten led the team that produced the study.
Brands need to embrace people as individuals, not just through statistical aggregations of the entire market. Most marketers are still getting information from aggregate tools such as market research, corporate strategy, and competitive benchmarking, rather than information about individuals, such as consumer reviews, online communications, and blogs, according to the IBM study.

Brands also have to ensure consumer data is safeguarded, Korsten said.
Next, brands need to deliver value to engaged customers -- not just information, but discounts and early advantages. "Customers love to share information, to demonstrate how they would like the product to be developed, and as a result be one of the first to get the product," Korsten said. These early customers will inform the company on how its products should be developed, and will also be the best first advocates of products, evangelizing to their friends.
To implement these goals, IBM recommended a three-step plan. First, create a small action team empowered to make changes. Staff the team with people passionate about changing marketing. Give them challenges and permission to innovate, Hayman said.
Next, CMOs need to build alliances with other C-level executives. Finally, they need to engage like the customer -- drop in on stores and sites, visit the call center, review recorded calls, and converse with customers on social media, spending the afternoon or evening reviewing brand sentiment on social media.
In the study, IBM spoke with more than 1,734 CMOs in a global survey from February to June 2011, interviewing them live in their offices for an hour. Interview subjects were in all the key industries IBM serves: Distribution (36 percent), financial services (24 percent), industrial (21 percent), communications (16 percent), and public (3 percent). Respondents came from Europe (35 percent), North America (17 percent), and Japan (4 percent), but most were in growth markets (44 percent).
There's lots more useful information in this meaty Webinar and report, so register now to devour them at your convenience.
What do you think are the biggest challenges facing CMOs, and how can CMOs meet those challenges?
— Mitch Wagner , Editor in Chief, The CMO Site
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