Article: “Part 6: Why Do B2B CMOs Fail So Quickly?”

From a podcast interview with the former CMO of a large enterprise organization and the current CEO of Proof Analytics, Mark Stouse

Introduction

Mark Stouse, former CMO and current CEO of Proof Analytics, challenges the notion of being a data-driven CMO and why CMOs fail so quickly. He argues that most CMOs are doing data wrong and must shift their focus to a more holistic approach to analytics. Through his extensive interviews with CEOs and CFOs, Stouse sheds light on the frustrations and concerns of business leaders regarding marketing’s lack of accountability and credibility. In this article, we will delve into the key themes discussed in the podcast and explore the implications of extending the tenure of B2B CMOs.

Rethinking Data-Driven Marketing

Mark Stouse opens the conversation by questioning the concept of being a data-driven CMO. He argues that relying solely on past data is like driving a car at 80 miles per hour while looking only in the rearview mirror. Instead, he proposes a shift towards a GPS-like approach, where marketers use analytics to forecast and optimize their strategies in real time. Stouse emphasizes the importance of understanding causality and the probabilistic nature of human behavior in marketing analytics.

“If you are data-driven, it is like driving your car at 80 miles an hour on the freeway looking only in the rearview mirror. You are guaranteed to crash.” – Mark Stouse

The Disconnect Between Marketing and Business

Stouse’s interviews with CEOs and CFOs reveal a deep frustration with marketing’s lack of accountability and credibility. Business leaders feel that marketing teams cannot prove their investments’ impact and often rely on flawed attribution models. The disconnect between marketing and the rest of the business leads to a lack of trust and confidence in marketing’s ability to drive results.

“I have total confidence that the CRO will make his number, but I have absolutely no trust in how he will do it.” – CEO

The Need for Business Acumen

To bridge the gap between marketing and the rest of the business, Stouse emphasizes the importance of developing business acumen among marketers. He suggests that CMOs should focus on understanding finance, analytics, and the overall business strategy. By speaking the language of the C-suite, marketers can gain credibility and become effective business leaders.

“You need to learn basic finance conversations. You need to learn analytics well enough to collaborate with people who do it for a living. You need to learn all of that kind of stuff.” – Mark Stouse

The Role of Analytics in Forecasting and Optimization

Stouse highlights the power of analytics in forecasting the impact of marketing investments and optimizing spend. He introduces the concept of AI-driven regression analysis that allows marketers to model different scenarios and refine their strategies based on real-time data. By using analytics to predict future outcomes, marketers can make data-informed decisions and demonstrate the value of their investments.

“You need to be able to show direct causality. If you can’t show direct causality, you don’t get to claim attribution.” – Mark Stouse

Why B2B CMOs Fail So Quickly: The Challenge of Time Lag in Marketing

One significant challenge in marketing analytics is the time lag between investments and results. Stouse explains that in B2B marketing, the impact of marketing efforts can take anywhere from two months to 18 months to materialize. This time lag often leads to misunderstandings and misjudgments, as marketing initiatives may appear ineffective when they are actually on track to deliver results. Marketers need to account for this time lag and set realistic expectations with the business.

“By the time these CMOs did their listening tour and revamped the brand or the website, they had used up a lot of their runway. When they started launching program investments earnestly, it looked like nothing was happening.” – Mark Stouse

Rebuilding Credibility and Trust

To regain credibility and trust, marketers must embrace transparency and accountability. Stouse suggests that marketers need to differentiate between what is factually based and what is mere jargon. Marketers can rebuild trust with the C-suite by using analytics to demonstrate the impact of their strategies and align marketing goals with business objectives.

“Show me the analytics. If the analytics aren’t there to be shown, then it’s not real.” – B2B CFO Quote

The Path to a Go-to-Market Revolution

Stouse’s interviews with CEOs and CFOs shed light on marketing leaders’ challenges and frustrations. The shift towards a more holistic approach to analytics and focusing on business acumen is crucial for marketers to regain credibility and drive results. By embracing causality, leveraging analytics for forecasting and optimization, and addressing the time lag in marketing, CMOs can become effective business leaders and quickly reverse the unfortunate cycle of failure.

The future of marketing lies in the ability to prove the value of investments and make data-informed decisions. As the business landscape becomes more competitive and the cost of capital rises, marketers must adapt and embrace a new era of accountability and transparency.