- CMOs are still having trouble proving their value with their companies, according to a new survey from Gartner.
- The survey of 378 senior marketing leaders found that only 52% of them felt they were successful at both proving their value and receiving credit for helping meet the company’s objectives. The hardest executives to convince were CFO (cited by 40% of the respondents) and CEO (39%).
- Moreover, nearly half (47%) of the survey respondents said marketing continues to be viewed as an expense rather than as a strategic investment.
The most successful approach to proving value is to take a long-term holistic view, highlighting relationship metrics (such as lifetime customer value and customer acquisition cost). Return on transitional metrics (such as cost per acquisition and return on ad spend and operational metrics (such as stakeholder satisfaction and productivity of marketing resources).
“One of the significant challenges in proving marketing’s value is dealing with entrenched beliefs and lack of understanding and alignment,” said Joseph Enever, Senior Director Analyst in the Gartner Marketing practice, in a statement. “Overcoming this barrier requires CMOs to provide persistent education and communication efforts to reshape these outdated perceptions and highlight marketing’s critical impact on the bottom line.”
Of those who took these approaches, more than two-thirds were successful at proving marketing’s value and getting credit for business contributions. Sadly, only 41% of the survey’s respondents are taking this type of approach.
Additionally, CMOs who were more personally involved in data and analytics initiatives were more likely to prove their department’s overall value. Survey respondents who were involved in activities such as creating dashboards or developing measurement strategies were 1.4 times more likely to get credit for their work compared with those who conducted other activities.
The survey found that 62% of those who meet regularly with their highest-ranking marketing analytics leaders and team members, compared with only 30% who meet infrequently with those team members. Gartner’s research suggests investing in talent that has the ability to analyze data, generate insights and integrate that data would help CMOs better prove their values.
“CMOs must address these talent-related barriers to successfully prove marketing value and secure the recognition and investment it deserves,” Enever said. “By enhancing soft skills, bridging the analytical talent gap and strengthening technical expertise, CMOs can transform the marketing function into a powerhouse of strategic insights and impactful storytelling.”
