For 25 years, CarMax has blended the virtual with the physical. Car shoppers research the models they’re interested in on the website or app, then come into the nearest dealership, take the car for a spin, sign the papers and drive away.
This hybrid business model has helped CarMax become the top used car dealer in the country, selling more than 720,000 vehicles and generating $17.2 billion in revenue last year.
This smooth-running click-and-mortar machine wouldn’t be possible without a strong partnership between marketing and technology, says CarMax CMO Jim Lyski. As a result, Lyski and CIO Shamim Mohammad have become the Click and Clack of corporate collaboration.
“If you’re going to do digital transformation, you have to be technically native,” says Lyski, who joined CarMax in 2014 after stints in the healthcare, insurance and fertilizer industries. “Being joined at the hip with our CIO allows both of us to understand technically what’s going to be required, from the database architecture through the marketing stack.”
This collaboration goes beyond simply attending the same meetings or jointly plotting product road maps. CarMax’s technology and marketing product teams share the same office space; since 2014, the company has created some two dozen cross-functional agile teams featuring software developers, user experience designers, data scientists and product managers.
Among the results: A product that allows car buyers to get pre-approval for loans, which went from testing to completion in less than six months, and the ability to view 360-degree photos of car interiors, a feature added earlier this year.
This level of collaboration—not just with technology but across the organization—is imperative for modern CMOs, says Jennifer Veenstra, a managing director with Deloitte Consulting.
“It’s extremely important for CMOs to create a partnership with other C-suite members, whether it’s the CFO, head of sales, business units or HR,” she says. “They need to be on the same page, working together.”
‘CMOs on steroids’
This is not an easy time to be a chief marketing officer. Expectations have never been higher, and your remit is broader than ever. You need to be both analytical and creative, tech savvy and people oriented. You must have your ears attuned to the voice of the customer and your eyes fixed on the bottom line.
“The CMO role is a lot more challenging than it was 15 years ago,” says John Abele, managing partner for the CMO practice at executive search firm Heidrick & Struggles. “We’re asking CMOs to be general managers and to lead a broader array of people within their portfolio. To think not just about what their ad or marketing spend is, but also about ROI and transformation within the organization.”
For example, marketing leaders are increasingly held responsible for the entire customer experience. But most control only a fraction of customer touch points, with little influence over things like sales, customer support, delivery, service or the actions of any channel partners.
As a result, we’ve seen a spurt of job titles like chief growth officer, chief customer officer, chief experience officer or chief brand officer—roles that Abele calls “CMOs on steroids.”
It’s an acknowledgment of the increased portfolio the job entails, as well as an effort to make the position more appealing to higher level management candidates, says Abele.
But it’s also a warning to existing CMOs that they’d better up their game and think more broadly about their role in the organization, says Michael Barnes, vp at Forrester Research.
“Either step up and take on more responsibility to drive growth, or you will absolutely be replaced or marginalized,” he says.
Buckets of data
REI’s Ben Steele knows the drill. Last month, he was promoted from chief creative officer, the specialty outdoor retailer’s equivalent of a CMO, to the newly created position of chief customer officer.
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