How CMOs Can Prove the Value of Marketing to the C-Suite

Good marketers know how to craft a compelling message. They’re skilled at delivering the right idea to the right audience at the right time. They understand the persuasive power of narrative. That’s why sometimes it’s surprising to hear marketers struggle to convey the importance of marketing to their CEO and members of the board. “It is a great irony that many CMOs are gifted storytellers but are unable to effectively communicate the value and impact of marketing within the enterprise,” Chris Ross, a vp and analyst at research firm Gartner, wrote in a report published last year. Nike’s Former CMO—Now Running Maserati—Shares 6 Pieces of Marketing Wisdom Only about half of marketing leaders believe they can prove the value of marketing, according to Gartner. This statistic lines up with recent survey results from research company NewtonX, which found many top marketers find it difficult to show a return on their investments. If they can't explain how their work benefits the business, marketers aren’t likely to earn much respect from their colleagues. They also tend to receive fewer resources when times get tough. At present, one in three marketers anticipate budget cuts in 2023 compared with 2022, according to trade group the CMO Council. IPG's media intelligence and investment firm Magna expects total U.S. ad spend to climb 3.4% to $326 billion this year. The latest annual forecast, however, is down from earlier estimates. In an exclusive interview with Adweek, Ross noted that while marketers have always wrestled with proving their worth, the issue has only grown in intensity as companies explore every opportunity to save a dollar. “I have some variation of this conversation with a client every single day,” Ross said. On May 22 at the Gartner Marketing Symposium/Xpo in Denver, Ross led a session offering advice to marketers attempting to defend their budgets and establish trust with their superiors. Here are some highlights from his presentation. Aligned goals First, the marketing department’s goals must align with the company’s goals. This may sound obvious, but it’s not happening everywhere. A recent Dentsu survey of North American CMOs, for example, indicates one of their biggest internal challenges involves navigating competing agendas among the C-Suite. “Most businesses have three to five things they're focused on,” said Ross. “You should be anchoring your strategy in those things.” This could mean raising brand awareness with a certain segment of the population. Or positioning a product in a way designed to steal market share from its chief rival. “The trick is to know what you need to measure so leaders across your company can understand marketing’s value to the overall business,” Michelle Crossan-Matos, CMO of Ulta Beauty, told Adweek. You've got to think in a methodical, structured, audience-centric way with your internal audiences.Chris Ross, vp and analyst, Gartner Another example is aiding the company’s efforts to attract and retain talented employees. Indeed, more b-to-b corporations are investing in brand marketing for this very reason. “In many organizations, HR is leaning a lot harder on marketing to help them define, promote and propagate their employer brand,” said Ross. At Georgia-Pacific, the manufacturer behind Dixie paper plates, Brawny paper towels and Quilted Northern toilet paper, the marketing capability aims to ground itself in the company’s business priorities prior to making any plans. “It all needs to flow together from the very beginning,” Laura Knebusch, Georgia-Pacific’s vp of consumer experience, told Adweek. “It's all in service of how the businesses has identified growth.” Consistent communication Once marketing’s objectives are intertwined with the company’s objectives, it’s crucial for CMOs to give the leadership team updates. Explain outcomes. Celebrate victories. Without a reminder, it’s easy for marketing’s good deeds to go unnoticed. “Sometimes when you’re communicating internally you have to say, ‘Hey, we're doing this body of stuff, and this body of stuff is intended to solve this business problem, which is part of this overall business strategy,’” said Ross. It’s possible, Ross added, for some CMOs to dazzle their peers with a charismatic presentation packed with insights, yet still fail to earn their trust because these presentations don’t happen on a regular basis. They’re too sporadic. There’s no ongoing dialogue. “The more you can consistently communicate in an unbiased way, the more you're going to build credibility,” said Knebusch. To help accomplish this at Georgia-Pacific, the company started doing its marketing mix modeling in-house about two years ago, Knebusch explained. It now has more control over the process and can report results of its ad spend more frequently. Similar to how marketers focus on reach and frequency when advertising to consumers, they should consider the same qualities when scheduling recurring meetings. Invite key people from departments who, though they may not know it, benefit from the latest marketing activities. And make sure to clarify why their presence is requested, as they might not see the potential for collaboration. Maybe exclude others who aren’t relevant and seem annoyed at the thought of another appointment appearing on their calendar. Not all internal stakeholders are critical to the marketing department’s success. This Could Be the ‘Golden Age’ of B-to-B Marketing A coherent message As all experienced marketers know, no story is told in a vacuum. No message is divorced from its medium. Therefore, marketers should use words, statistics and anecdotes that both matter and make sense to the group of people they’re addressing. “You've got to think in a methodical, structured, audience-centric way with your internal audiences the same way you think about it with your external audiences,” said Ross. Ross, for instance, recommends CMOs lean on data when making their case to their CEO or CFO, but don’t lean too hard. Slide after slide filled with charts and percentages can be overwhelming. Or just plain boring. Settle on a few headline metrics—such as $1 in ad spend equals $3 in revenue—and repeat it. Likewise, don’t assume granting managers access to a marketing dashboard will result in them visiting it, never mind grasping what it all means. Provide context. Explain what the numbers represent and why they’re significant. When trying to win over skeptics, marketers should also avoid marketing jargon. Don’t expect the head of R&D to know, or care, about the particulars surrounding last-touch attribution. Definitely eschew cliches and buzzwords that have lost their vigor. “As marketers, we are the worst at ruining language,” said Ross. “We take terms and abuse them to the point that they are meaningless.” Instead, use vocabulary that appeals to those in charge of increasing or decreasing the budget. Learn to think and talk like a CFO. Embrace their terminology, such as price elasticity and price premiums, to show you’re viewing the situation from their perspective. As Ulta Beauty’s Crossan-Matos put it: “When we all speak the same language with a foundation rooted in data, consensus is well within reach.”

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