Gartner Identifies 3 Top Trends Likely To Affect CMOs in 2023
A new report from Gartner identifies three trends likely to have an impact on CMOs in the coming year. The report, “Chief Marketing Officer Leadership Vision 2023,” looks into CMO priorities, trends, and strategic actions to succeed in 2023 and beyond. The three major trends identified in the report are:
1) Shifting customer behaviors amplify uncertainty
2) Burdensome cross-functional collaboration yields worse organizational outcomes
3) Disruptive market dynamics erode traditional sources of brand value
“As CMOs enter 2023, the current environment demands a relentless focus on customer value, purposeful evolution of the marketing function, and continual optimization of brand value,” said Ewan McIntyre, chief of research in the Gartner Marketing practice. “To meet the enterprise mandate of driving growth amid continued disruption, CMOs must act decisively to prioritize their investments and their strategy for the year ahead.”
What follows are excerpts from the press release announcing the report. For the full announcement, click here. See below for information on Gartner’s free 1-hour webinar and ebook discussing the report.
Trend 1: Shifting customer behaviors amplify uncertainty
Amid inflation and economic uncertainty, customer demand and buying behaviors will fluctuate unpredictably. Inflation is driving cost-cutting behaviors, with 30% of consumers buying more store brands, and almost a fifth reducing in-person shopping visits in favor of digital buying, according to a Gartner survey of more than 1,500 consumers in September 2022. This will challenge established brands to maintain brand preference, premiums, and loyalty.
“Marketing leaders should create a digital customer value exchange to provide mutual value on digital channels throughout the full cross-channel journey,” McIntyre said. “Enhance the effectiveness of digital marketing by seeking opportunities for personalized engagements that genuinely help customers throughout their end-to-end customer journeys.”
Trend 2: Cross-functional collaboration yields worse outcomes
Strategic marketing priorities, such as innovation, customer experience (CX), and digital commerce have transcended functional boundaries and are now enterprise-wide priorities with complex cross-functional execution. Shared priorities may draw funding away from marketing departments that have yet to see their budgets return to pre-pandemic levels and taxes already strained marketing teams, resulting in lower performance against critical marketing goals.
“CMOs must adapt team structures and skills to advance new cross-functional operating models. Streamline operations, establish common KPIs, and orchestrate messaging throughout the customer experience for greater effectiveness of marketing, sales, and other customer-facing teams,” McIntyre said.
Trend 3: Disruptive market dynamics erode traditional sources of brand value
Traditional sources of brand value, such as brand reach, positive brand sentiment, or perceived differentiation are under pressure amid new forces: disruptive market entrants, heightened audience expectations, and the ease of digital learning about unfamiliar brands. Audiences face disruption at each stage along the traditional linear path to brand value: awareness, consideration, and brand loyalty.
“CMOs must redefine and quickly demonstrate the value of brand investments in a volatile environment,” McIntyre said. “The strongest driver of brand commitment is a single meaningful brand experience, even with unfamiliar brands.”
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