The Evolving Role of the B2B CMO

The landscape for business-to-business chief marketing officers (B2B CMOs) is undergoing a massive shift, driven by the rise of new technologies like generative AI and the growing need to build solid brands and enhance customer experiences. A report from EssenceMediacom reveals that B2B CMOs face increasing pressure to take on new responsibilities as their roles become more complex.

This transformation presents both challenges and opportunities for B2B CMOs. They must navigate a rapidly evolving tech landscape, prove marketing's impact on revenue, and champion the customer experience across their organizations. At the same time, they can lead their companies into a new era of growth and innovation. 

The key is embracing change, experimenting with new strategies, and staying laser-focused on delivering value to customers. Ready to dive into the details? Let's look at the key findings from the EssenceMediacom report and learn how to adapt to this new reality.

Increased Investment, Increased Responsibility

B2B companies now invest more in their marketing departments. The EssenceMediacom report surveyed 188 global marketing executives and found that 70% saw their budgets increase over the last three years, with 75% channeling the additional funds into data and technology. With this increased investment comes heightened scrutiny; 60% of CMOs said they face more pressure to prove marketing's impact.

CMOs also tackle new tasks. Analytics and performance measurement became new core responsibilities for 57% of respondents, while 45% said content development and distribution were increasingly added to their remits.

The CMO as the Voice of the Customer

B2B CMOs now serve as the "voice of the customer" in boardrooms. The report found that 62% of respondents agreed, "Over the last few years, I have seen a shift from a sales-owned customer experience to a marketing-owned customer experience." More than any other responsibility, B2B CMOs are asked to prove marketing impact, drive revenue from multiple sources (customer acquisition, retention, and renewal), and own data responsibilities.

Kristin Gower, EssenceMediacom's global B2B president, identified three core challenges CMOs must navigate: 

1. Marketing departments often outpace their organizations and must use this opportunity to drive cross-organizational innovation.
2. The rising importance of delivering customer-centric experiences to the B2B buyer.
3. There is a need to rewrite the rule book as marketers face increasingly complex ecosystems to gain buyer attention.

The Critical Role of Brand Building

The report found that understanding the customer buying journey remains challenging for most respondents as the task grows increasingly complex and anonymous. B2B companies don't always have the tech to support it. The report noted that technology within B2B companies remains "disconnected across departments due to conflicting priorities and objectives," with only 10% of B2B marketers saying their tech stack and performance was "mature."

Embracing Generative AI

B2B companies increasingly embrace generative AI as a cost- and time-efficient way to better target customers and serve them more relevant content, improving their experience and building brand awareness.

The report found that 60% of brand marketers use generative AI to create content, 48% for chatbots and virtual assistants, 44% to eliminate repetitive tasks, and 38% to personalize content.

Some believe B2B companies don't adopt new technologies like AI fast enough. The report found that the biggest challenge for U.S. marketers is understanding buyer needs because "only half say their organizations prioritize sharing audience data, while less than a quarter utilize AI to understand, segment, and target buyers."

The role of the B2B CMO is evolving rapidly, driven by new technologies, increased investment, and the growing importance of brand building and customer experience. To succeed in this changing landscape, CMOs must navigate complex challenges, prove marketing's impact, and embrace innovation.

As B2B companies continue to invest in marketing and adopt new technologies like generative AI, CMOs have a unique opportunity to drive growth and lead their organizations into the future. By serving as the voice of the customer, building strong brands, and leveraging data and technology, B2B CMOs can position their companies for success in an increasingly competitive market.