Technology budgets are increasingly being consumed by marketing projects. According to Laura McLellan, a research analyst at Gartner Inc, "By 2017, the average CMO would control more of the IT spend than would the average CIO." Whether that prediction holds or not, the trend is clear, and CIOs need to have a good understanding of what is important not only to the CMO but to every participant in the C-suite.
I asked Jeanne Hopkins, Chief Marketing Officer at Continuum for her thoughts on what the CIO needs to understand about marketing and how it fits into the enterprise as a whole. Hopkins offered 3 areas she believes are important to understand about the CMO's allegiances:
In the eyes of CEOs, nothing is more important than marketing. They feel that Marketing should lead the company and be the key driving force of business success. And, as a member of the C-Suite, CMOs need to be aligned across the organization, not just with the CIO.
- Aligned with Chief Revenue Officer - Marketing is not just an arts & crafts function, focused on trade shows and MarCom, any longer. Marketers are tied to revenue as part of their demand creation function and need to be closely aligned with Sales. According to the Aberdeen Group, "Highly aligned sales and marketing organizations achieved an average of 32% annual revenue growth - while less well-aligned companies reported an average 7% decline in revenue."
- Aligned with Chief Financial Officer - Marketing teams are focused on ROI, delivering revenue growth to maximize shareholder value. The new era in marketing accountability places an emphasis on demand generation, which will generate more profits for the business. In this role, Marketing provides insights and builds the machine that turns those insights into products, accompanied by stellar communication programs, and providing a superb brand experience to customers.
- Aligned with Chief Information Officer - There is an increasing need for CMOs to work in tandem with CIOs to manage the vast swaths of data generated in this new era. Technology is an enabler of any business and without an understanding of it, Marketers cannot contribute value to their organization.
Fran Malloy at CIO Magazine, said it best, "At its core, marketing is about communicating. And in today's hyper-connected world, communicating is about technology."
Clearly the CMO's alignment with the CIO is #3 on this list, and that positioning is indicative of the importance of the relationship.
