Tech companies and retailers have primarily led the way for customer-centric experiences in a digital world, but now organizations from more traditional sectors are finding that they too must adapt to the increasingly digital lifestyles of their consumers. Agility and the ability to pursue new ideas, fail fast and learn quickly — hallmarks of digital pioneers — have become even more critical for senior marketing leaders across industries. At Spencer Stuart’s West Coast CMO Summit, leaders from both area tech companies and global organizations from other sectors gathered to discuss how an innovative “Silicon Valley mindset” can help senior marketing leaders succeed in a fast-paced, digital environment and to share their insights into the evolution of the chief marketing role and their own personal experiences.
The West Coast CMO Summit panel featured Julie Bornstein, executive vice president and chief marketing and digital officer of Sephora, Guy Longworth, senior vice president of Sony PlayStation brand marketing at Sony Computer Entertainment America, and Jamie Moldafsky, chief marketing officer of Wells Fargo. Below are a few highlights from the discussion:
In driving innovation in a technology-focused world, marketing leaders can’t go it alone. Each panelist noted the importance of leaning on outside resources to stay in front of technology developments and to find inspiration. Whether meeting with startups or creating startup accelerators, panelists tap these new players for forward-thinking ideas on issues spanning e-commerce best practices, artificial intelligence and fraud monitoring. One panelist said, “It’s such an advantage for all of us in the Bay Area being so connected to the startup environment and all the technology companies around us. Our access keeps us ahead.”
Seizing opportunities today demands agility and greater risk tolerance. Gone are the days when organizations could take years to launch a new product or service. For example, Apple Pay has lit a fire under many partners to quicken their pace of adoption. For one panelist, the mobile payment vehicle caused the organization to rethink its entire product launch approach: “It forced us to rethink how we go to market, our willingness to take risks and the timeframe between piloting and launching. It might be OK to put a new feature out and not have it be 100 percent perfect on Day One, but be able to fix it and have it be perfect on Day Two — which is not a mindset that traditional retailers and financial services companies have had.” Another panelist noted how this type of change requires adaptable, agile talent. Rather than feeling frustrated and demotivated at the prospect of changing a point-of-sale system rapidly, the panelist’s team was excited to implement the change to Apple Pay: “When you hire people with the right mindset, they’re excited to be there and be part of the journey.”
Innovation can come from any source. “The notion of who gave you the idea and where it came from is becoming less important than just surfacing the ideas and opportunities,” said one panelist. Thus, CMOs need to create an environment that embraces and socializes ideas from all levels and functions of the organization. Additionally, social media has become a trove of firsthand customer insights that can translate into new products, services or better ways of doing things.
Companies need engaging content — and the talent to create it. In an era of constant connectivity, companies need compelling content to capture the attention of multitasking consumers. “You really need content that engages and excites people and encourages them to share it because especially with the younger generation, they’re not watching TV ads, they’re watching their second screen,” said one panelist. Content creation, especially for digital and mobile, is an increasingly important skill. In addition, content should not just be a priority for traditionally “creative” brands. One consumer company CMO was surprised to learn that one of the organization’s household products had a dedicated YouTube channel created by fans of the product with more than 20,000 videos uploaded by customers.
Technology is an enabler of the customer experience and engagement. One panelist’s company is focusing on customer relationship management in order to influence the customer journey and provide customers with targeted, tailored offers. Organizations across industries have also built platforms that allow for two-way conversations with consumers. After launching a controversial brand, one panelist found that the company’s online community provided a way to learn about and address customer concerns: “What’s great is we have a way to communicate back to the consumer and they just feel so much more part of the brand.”
For the next generation of CMOs, general management skills will become even more important. The rapid pace of change and technology advancements require that marketing leaders of the future are able to adapt quickly and embrace new technologies. “The role of the CMO has certainly become broader than it’s ever been and you need the ability to keep up with the change that’s going on with all the technology that’s available and the ways to communicate with your customer,” observed one panelist. “There’s been more change in the last three years as there has been in the last 10 and more in the last 10 than there’s been in the last 50.”
Much of this change has been driven by the proliferation of digital. As digital blurs the lines between functions, a holistic understanding of the business will become even more vital. “General management skills are going to be more and more important because with digital, the distinction between marketing and everything else is blurring,” noted one panelist. Another agreed that general management focus and the ability to run a business will be critical in a world where digital will become the norm versus a disruptor. Similarly, classic marketing skills will stand the test of time because the fundamentals (e.g., the value of the brand) have remained unchanged.