Does Your Company Need A CMO, A CDO, Or Both?

1- Creative Marketing Success 2015

Today, the market is more competitive than ever, and organizations face challenges not only in developing marketing strategies that outpace their competition but also in effectively reaching their customers through rapidly changing and advancing technologies.

At MarketPro, we help companies find the most experienced talent and innovative solutions to take their marketing to new heights. Our expert team of former marketing executives has intimate knowledge of the marketing challenges faced by today’s Chief Marketing Officers and the organizations they support.

With the increasing need for both a strong marketing program and digital capabilities, many organizations are faced with the dilemma of evaluating if they need to expand their marketing team and add a Chief Digital Officer to work alongside their Chief Marketing Officer (CMO). Each role has its own focus, but there are areas where their responsibilities can overlap, which can make the decision tricky. How do you decide the best fit for your company?

What To Consider When Choosing The Key Players In Your Marketing Team

Any company, regardless of size, that desires to sell its products and services and experience growth needs to have a strong head of marketing and a strategic marketing program. The title for this individual may be different depending on the size of your organization, but having the right talent in this role is key to your marketing success and the overall growth and health of your organization.

MarketPro has successfully conducted more than 350 Chief Marketing Officer executive searches, and our team has the expertise needed to assist your organization in determining the best structure for your marketing department and the ideal talent to fit your needs.

Whether your company needs both a CMO and a CDO comes down to how large the organization is, the type of business, and the company’s goals for the future. If you are a company whose growth potential relies on or is technology driven, then you may benefit from both an innovative CDO as well as a strong CMO.

Fortune 500 / Global 2000 companies are most likely to benefit from having both a full-time CMO and a CDO at the same time, while fast-growing and medium sized companies might be better served with an interim CDO to develop and implement digital initiatives, and then when the project is up and running, it can be turned over to the CMO and the in-house marketing team to monitor going forward.

Does Your Company Need A CMO And A CDO?

To decide if your company is at a point where a CDO would be beneficial, there are a few things to consider:

The Size And Complexity Of Your Organization

Larger companies with multiple departments and operations typically have more complex digital needs, so a dedicated CDO may be a good fit. Smaller companies need to find a CMO with strong digital expertise, a lifelong learner who really understands performance marketing.

The Organization’s Long-Term Objectives

If your company plans to overhaul current processes and implement digital solutions internally or to enhance the customer experience, a CDO would be critical in leading this initiative. If the overall strategy is to boost brand recognition, attract new customers, and grow revenue through more traditional marketing campaigns, having a strong CMO would be most important. However, if the company’s objective is to utilize channels such as social media and mobile phone apps to reach and engage customers with targeted marketing campaigns, it would require a close collaboration between a CMO and a CDO.

How Much Does Your Business Currently Rely On Technology

Think about how much your business relies on digital capabilities and if your industry is constantly changing. For companies that are driven by technology like e-commerce, digital media, rideshare services, etc., a CDO is essential to help them remain competitive. It is critical that industries such as these continue to drive digital innovation and improve their processes to remain relevant. In more traditionally based businesses, where technology is not as critical, a strong CMO may be all you need to steer your marketing efforts.

What Level Of Digital Capability Does Your Company Already Possess

It is also important to consider how advanced your company is regarding digital processes. If your company is still very reliant on traditional marketing channels, a CDO can work together with your CMO to help transition your marketing efforts to digital methods. A CDO can develop integrated strategies that use digital channels, data analytics, and automation tools to improve customer engagement and ultimately promote growth and revenue generation. If your organization is already heavily utilizing digital capabilities, a CDO can help take it to the next level.

If your company is still in the early stages of digital adoption, a CMO with digital skills might be enough, or you may want to consider using fractional CMO or CDO options depending on your company’s resources and budget.

Can Your Company Promote Harmony Between The Roles?

Someone in the CMO role can feel a bit apprehensive when their CEO begins talking about bringing on a CDO. After all, the CMO has worked very hard to reach their position and gain control over the company’s marketing team and initiatives. In a large organization, if the budget allows for it, having both a CMO and a CDO can be a great advantage, but it is critical that the responsibilities of each role are clearly defined. In some cases, the roles will overlap and will require collaboration to navigate successfully.

What Is The Difference Between The Roles Of CMO vs CDO?

Chief Marketing Officer (CMO)

The Chief Marketing Officer (CMO) is one of the hardest and most stressful of the C-Suite positions, which is why it typically has the shortest tenure. They carry an enormous amount of responsibility and are the driving force behind brand awareness and revenue generation. They must understand what the consumers want, which consumers can turn into customers for the organization, and how to effectively grab the attention of these customers, communicating messages that they respond to that lead to sales.

Additionally, they must be able to respond proactively to today’s rapidly changing market conditions, which requires intricate knowledge of current market trends, the changing habits of consumers, which channels these consumers are frequenting, what new technology has emerged that can improve the company’s marketing efforts, a good understanding of what the competition is doing, and more.

The CMO must continuously collaborate with other departments to ensure that the marketing strategy is aligned with the company’s goals and receives the support of the entire organization. They basically have to be strategic-thinking, creative wizards of all things.

Chief Digital Officer (CDO)

Digital platforms, like social media, search engines, and mobile apps, have totally changed the ways companies need to reach and engage with their target audiences. Staying relevant and ahead of the competition now requires a deep understanding of digital trends and how to best use data to create the right campaign and get it out to the right consumers.

A savvy CMO knows to stay relevant that they need to take advantage of digital tools and technology to enhance their marketing strategies, but this often requires a level of knowledge that is outside of their wheelhouse. This is where a Chief Digital Officer can step in and collaborate with the CMO to enhance, strengthen, and grow the organization’s marketing reach.

A Chief Digital Officer is responsible for guiding the digital growth of the organization and finding how to best use technology and data to improve the total operation of the company. This includes many initiatives, from communicating new ideas and digital plans within the company and ensuring it stays up-to-date with the latest technology to enhancing customer satisfaction and providing a seamless user experience from beginning to end.

The CDO would lead efforts to utilize data that will allow the company to make informed and strategic decisions that further their marketing initiatives. This individual would help investigate and find new technologies, provide company-wide training on digital tools, oversee the roll-out of new technology, and assist with hiring experts who are proficient in their use if needed.

MarketPro Can Help Solve Your CMO vs CDO Dilemma

At MarketPro we have helped organizations find the perfect solution to balance these positions. The CMO and CDO positions need to be in complete alignment, even more closely than the critical collaboration between the CMO and the CSO (Chief Sales Officer) because otherwise neither will be successful in their roles and the growth of the organization will suffer.

We have provided innovative solutions for many companies with various needs. We worked with a large organization with a strong CMO who was performing at a very high level and the company was experiencing growth but felt they needed to ramp up their digital technology. Their CMO didn’t have the knowledge or the time to devote to a large-scale digital initiative so we provided them with an interim CDO.

An interim CDO can be contracted for a specific period of time and after a year or eighteen months will have had time to implement significant digital transformation and then before their contract ends the program is rolled back under the CMO. We have seen much success with CMO’s embracing this type of interim help because the company’s goals are met and the CMO has the assurance they are not losing control of their department long term.

We have also seen success with placing both a CMO and a CDO but the organization must communicate the roles of each very clearly and the two individuals must both be in total alignment to achieve success.

Our Process

MarketPro can look at your organization’s growth goals, current markets, the strategies you are currently using, your level of data analytics, your current ROI, and more. Once we understand these dynamics about your organization we can take our 25 years of executive marketing experience and share our professional insights regarding the type of talent your company will need to reach or exceed their goals. Then we can find the perfect candidates that can make a significant contribution to your marketing strategy and your organization’s long term goals.

Contact MarketPro today to learn more about how we can help connect you with top-tier talent to elevate your marketing strategy and ensure your organization’s continued success in today’s competitive market.