To say that chief marketing and chief financial officers have historically had a taut relationship is an understatement. CFOs often look at the marketing function as a soft cost — purely in terms of profit and expense. They typically don’t understand the ethereal nature of traditional marketing metrics, such as “brand awareness,” “positioning” and “shifting perceptions.”  In fact, the CFO party line on the marketing organization is that it has dodged financial accountability for far too long and after extensive investment.

In a down economy, that’s code for slash your budget or prove your worth.

CMOs need to take on the mantle of leadership and learn the CFO’s lexicon for return on investment.  By creating a data-driven culture, you can translate your creative strategies into terms the CFO can understand and support.

One of the best places to start this effort is with your web analytics. Websites consume corporate dollars, and it’s a reasonable demand to prove with cold, hard facts that the investment is worthwhile. Although more marketing departments are taking the reins of web analytics away from IT, most are still clumsily fooling around with it. Most organizations haven’t really figured out how to take advantage of this treasure trove of data.

It’s not for lack of trying. Forrester Research estimates that businesses will spend $953 million dollars on web analytics in 2014, with an average annual growth of 17% from 2009. Still, it likens web analytics to a teenager in terms of maturity in the corporate marketing sphere.

The challenge, therefore, is before you. Marketing has a reputation for being surrounded by data but often falling short of effectively leveraging it. CMOs need to shift their work from the more subjective, intuition-driven approaches to a more objective, analytical and data-driven operation.

In practical terms, the shift has four distinct tracts. You are closely watching data, such as traffic sources and volume increases, conversion and bounce rates, etc. But the next step is moving beyond tracking to data analysis. Link the experiences your targeted audience is having on your corporate websites with your marketing programs, using your traditional measurements. Explicitly connect your work to data from your analytics.

Next, cross over from being data-informed to data-driven. That is, make decisions and changes in your marketing programs based on that data. All of this is quite an undertaking, but you’re not done yet. The fourth element is presenting your analysis in ROI terms, aligning your marketing measures with corporate goals and objectives, including profit, growth and savings.

We’ve seen this changeover take place a few times, in which interim marketing executives go in and create web analytics programs where none existed previously and begin to make the shift toward data driving marketing decisions.

Both chief executives understand to a certain extent that there is a bit of intangible when it comes to marketing. A bit of magic, a dose of uncertainty and an unending quest for perfection in timing. Even CFOs grasp the concept of assumption. When justifying your need for marketing dollars,  consider a language soaked in fiscal responsibility and methodical analysis.

Web analytics is a good place to start, because of the web’s growing centrality to business. But it’s not the only place. In our next post, we’ll unpack more practical steps in shifting their culture and the other domains CMOs need to mine for data.

About MarketPro:

MarketPro is the leading interim marketing executive and marketing executive search firm in the United States. Whether your need is interim / contract or direct placement, we provide top companies with talent that exceeds expectations both functionally and culturally. Our recruiters know the best marketing talent, because they are experienced marketers. MarketPro places talent in all marketing related disciplines and does so in less time with a higher success ratio than anyone else in the industry.

Effective marketing is one of the most vital components to getting a startup off the ground. The problem, however, is that most venture-based startups don’t really have the capital to put a seasoned marketing executive in place. Instead, Venture Capitalist-backed startups typically bring in someone with often significantly less experience – and more fiscally palatable salary demands, of course – and throw them directly into the fire.

More often than not,  junior-level professionals simply  can’t develop the   marketing strategy needed for a significant start-up to be successful.   The practical ideas they generate are often very good, but less effective without the benefit of an senior-level perspective for the marketing direction of the company.

So how does a start-up get past these hurdles? Outsourcing the work to agencies or an independent consultant are often more costly than hiring a full-time executive. A much better option is to bring in someone on an interim basis, typically six to nine months, to work with the company’s chief officers in drafting a comprehensive marketing strategy. You get the benefit of having an experienced professional on your team at a crucial time in the company’s development without having to swallow the steep salary that an individual of that caliber would demand over the long haul.

It’s the same general principle as bringing in an experienced software architect at the beginning to help design the entire system. Once everything is in place, you have the flexibility to bring in lower-level employees to implement the ideas. Software development companies don’t have to pay coders anywhere near what they would have to shell out to keep a high-level software architect on the payroll. Marketing is no different. The junior-level employees have an important role to fill, but they are much more valuable to a startup because of their ability to put a plan into action.

About MarketPro:

MarketPro is the leading interim marketing executive and marketing executive search firm in the USA.  Whether your need is interim / contract or direct placement, we provide top companies with talent that exceeds expectations both functionally and culturally.  Our recruiters know the best marketing talent, because they are experienced marketers.  MarketPro places talent in all marketing related disciplines and does so in less time with a higher success ratio than anyone else in the industry.

By Bob Van Rossum

Great article in AdAge on how a CMO can benefit from having a Chief Marketing Technologist.  I agree with the author that now is the time to invest is such a role, it is actually the perfect use for an Interim Marketing Executive.  This allows the CMO the opportunity to utilize an outsider’s expertise to further develop the role for the maximum long-term organizational benefit.

Interim Marketing Executives are a growing trend allowing CMO’s the opportunity to navigate the changing landscape without the expense of a consulting firm.

By Bob Van Rossum

A recent article on www.cnn.com, entitled “Say goodbye to full-time jobs with benefits“, discusses the trend we are seeing towards an interim workplace.  Employers are looking to simply get work done, not necessarily add to headcount.  The article does a good job of describing the trend and why it exists.  Ultimately it understates how high up the corporate ladder this change is taking place and for how long the change will occur.

The fastest growing part of our business is our interim marketing executives.  Not necessarily the Chief Marketing Officer, but every position reporting to the CMO is now open for a discussion on whether it needs to be a permanent headcount or whether the needs of the corporation are better served by an interim professional.

Historically our contract staffing business has been more tactical (junior level) professionals and our executive search group handled placing marketing executives directly into corporations.  Currently our contract staffing business is experiencing growth, but it is at the senior strategic level where we are seeing the biggest shift.  Now for every two senior searches we engage in, one is for an interim marketing executive.  

This shift is significant and logical.  The world is changing quickly and as a CMO, the talent you need today might not be the talent you need a year from now.  Are you sure you want to invest in full-time headcount when the world around you dictates their skills might be less relevant to you in a year?  Do you really need an expensive marketing consultant when an interim marketing professional with strategy and implementation experience is available to you?  

The shifts in the marketplace regarding an increased pace of change and continued pressure on costs are here to stay, which means this trend is here to stay as well, long after unemployment dips back below 5%.

Thanks Elaine.

From the article in BrandWeek:

Marketers, then, may be worried, but Van Rossum said this new talent force is in no way a permanent replacement for or danger to the full-time CMO. 

“What we’re seeing is the CMOs themselves are looking for interim marketing execs to come in and fill in gaps in their current team,” he said.

By Bob Van Rossum

A recent BusinessWeek article discusses “The Disposable Worker”.  It does a great job describing the challenges facing today’s workforce.   But for the biggest brands, it shows a growing and necessary trend.  How do I compete on a global scale deploying talent on an as needed basis, increasing my flexibility and decreasing my cost?  Ultimately how does this trend impact how marketing is done inside the enterprise?

Marketing departments are required to provide ever increasing ROI with fewer resources and less budget.  This is difficult to do when you have a large headcount filled with too many generalists.  The marketplace is changing so rapidly it is impossible to keep the perfect balance of skills on your team.  CMO’s are increasingly turning to interim marketing executives to; build an analytics function, launch a new product / brand or handle merger integration. 

Reality is your headcount is lower than it has been in years leaving your team overworked.  Your internal team does not have the skills or bandwidth to handle a large influx of work and move from execution to strategy.  Outsourcing to an agency or consulting firm is too expensive and your results are limited by the talent they have on their team / bench.  Alternatively for significantly less money, you can have an interim executive who has direct industry experience working by your side on a daily basis. 

In the end you get much more than just a recommendation you would receive from a consulting process.  You get a recommendation from someone who knows what it is like to live in an enterprise like yours, so the recommendation is one that can be implemented and then they stay around for as much of the actual implementation as you see fit.

By Bob Van Rossum 

We are seeing many companies invest in senior level strategists in areas of innovation, brand, e-commerce, etc.   This makes perfect sense as both large and small organizations need to compete in the current economic climate but do not want to add to full-time headcount.  Bringing in a marketing consultant for 6 months allows you to move your company forward but not permanently increase overhead.

So if you find yourself in the position of needing some top notch talent to consult on your marketing needs, what should you be looking for?  Interestingly, not a consultant, you need a marketing practitioner. 

Marketing has changed so much in the past 5 years and the velocity of that change is increasing.  It is moving so fast, a lot of marketers (not just consultants) find themselves in a place where their skills are irrelevant.  Ultimately, since 2005 the big changes have happened inside corporate marketing departments, not at consulting firms.  Therefore, you do not want to hire a consultant who has not seen any of these changes first hand.  What you need is someone who has successfully moved the needle from inside a corporate structure.  They will readily understand where your company is, what challenges you face and how best to overcome them.  You want someone from outside your organization to bring in innovation and to take your company to a place it cannot go with the current team.  Face facts: you cannot possibly be assured of success if you choose and individual or firm who has failed to execute something in the past 5 years or longer.  So where are we drawing the line?  Ultimately somewhere in 2005, if you are looking at bringing in an individual or firm, study their bios carefully.  If they have done nothing but consulting since 2005 or longer, they are no longer relevant as an expert marketer.  They have been removed from the corporation at a time when you cannot possibly appreciate all the change from the outside. 

Fortunately this is good news, with consultants come oversized mark-ups, bring in an interim marketing executive to improve results while reducing cost.

By Bob Van Rossum 

Building an effective online marketing team is all about creating flexibility.  Best practices dictate you bring the function in-house yet create a team that can change as fast as the market.  Best structure is to hire a full-time employee who knows enough about each area drive maximum ROI from the team and bring in contractors to execute / implement.  Contractors provide flexibility in a world that is changing rapidly.   Traditionally contract staffing has been associated with only execution/implementation as a way to retain flexibility and reduce costs.  Increasingly organizations are realizing that they can also bring in executive level interim marketing talent from a Creative Director to a Digital Strategist to maximize your online presence and / or use of analytics. 

Online marketing teams are different depending on industry but ultimately all organizations need some basic functions.  With the proper strategy and execution, your marketing dollars will go farther online than they can in any other form of media.

Digital Marketing Strategy

Strategy matters, too often the interactive world is filled with the “ready, fire, aim” approach and significant dollars and opportunity are lost in the process.  Depending on the size of your organization you may need a strategist full-time or an interim practitioner, not a consultant, to come in and move your organization forward.

Search Engine Optimization / Search Engine Marketing

It is amazing how few organizations are really doing this well, considering the potential ROI from doing it properly.  This is the most cost effective form of advertising available in any medium and the longer you wait to institute best practices, the harder it will become to get results. 

Your SEO / SEM expert(s) will provide both natural and paid search services, to maximize awareness / leads from a minimum possible investment.  Including but not limited to, keyword advertising / ranking, keyword bidding, copy optimization.  Doing so across multiple platforms, while reporting on success / ROI and managing continual improvement. 

Online Media Buying and Planning

The complexities of online media buying, planning, tracking and reporting are daunting, here there is no substitute for experience.  The latest in online advertising options include geographically and behaviorally-targeted marketing.  The challenges of building and launching a successful online ad campaign have grown as have the rewards of doing it properly. 

E-Mail Marketing

A well thought out e-mail marketing team, starts with the realization that subject matter experts are needed and in great demand.  The ability to take outside lead lists or an internal database and design, test, deploy, measure results and make necessary improvements is critical to long-term success.  And that’s not all, reviewing creative to make sure messaging is consistent with core brand and CAN-SPAM compliant, while being a project management guru is a lot to handle.  So in a nutshell: bring in the best to set strategy, plan and measure to maximize revenue.

Public Relations (Online)

This is much more than someone to write, manage and publish online content.  This position is responsible for online messaging, including using guerilla marketing to leverage social media.  It is also important for organizations to have someone who can help them to understand what makes content newsworthy.  In a rush to be online, too many organizations are publishing content for content’s sake. 

Analytics

It is vital to measure, adjust and ultimately continually improve.  Proper analytics gives you the knowledge and power to increase revenue and build a better online brand.  Proper analytics programs include, online tracking, predictive analytics and segmentation, strategy, execution and reporting.  Big question is do you have someone who can interpret the data and merge your online and offline analytics to properly focus your overall marketing mix?

By Bob Van Rossum 

Having an agency (ad, pr, digital, etc.) is great if they are truly presenting you with something unique.  If you are doing tremendous mass advertising and your agency has incredible creative then you are in the right place.  Unfortunately getting an ROI from your agency partner is becoming increasingly difficult and certain pieces of the relationship structure work against it.  The distance between you and your agency presents challenges with communication and speed of execution.  Truthfully only 20 percent of organizations using an agency really need one.  The remaining 80 percent of companies gain a competitive advantage utilizing top talent on a contract basis to insource your agency. 

Top Reasons to Insource your Ad Agency:

1. 35% – 40% Cost Savings:  Why pay your agencies rent in addition to your company’s rent?  Looking at an agency’s overhead and markups, it’s easy to see how you can insource and push money to the bottom line. Or use this to your advantage to do more marketing and increase your top line. 
2. Higher Quality Marketing:  When you hire an agency, you are really hiring one or two people and paying for others you were unable to select, but have a real impact on the work.  As part of our insourcing model, you select exactly who you want for each role.  This provides greater depth and breadth of experience resulting in better work.  If you have someone who is no longer able to provide the level of work you require due to changing needs, you are able to immediately bring in someone new who can.    
3. Confidence:  The CMO who insources their marketing shows tremendous confidence in themselves.  What you are saying to the others on the Senior Management Team is you do not need to lean on your agency like a crutch.  You having confidence in yourself in turn is rewarded by the organizations increased confidence in you.  A natural byproduct of providing additional ROI.
4. Flexibility:  All areas of business are going through massive change that is simply magnified in marketing.  Utilizing on-demand marketing talent provides you the flexibility to turn on a dime.  Giving you the freedom to bring in new resources as your marketing mix changes, your business grows or needs to cut costs or a new area of expertise is required.  It is significantly easier to change out one or two team members as your needs change than to switch agencies and get the new agency up to speed.  In the end you are buying an opportunity to get the work done and saying good-bye to a fixed monthly retainer. 
5. Knowledge:    Imagine a marketing department and agency relationship with zero knowledge gaps.  Completely possible when you insource the agency, retaining the right to bring in the knowledge you need for only the time it is required.  From top creative talent to digital strategy to execution, you can have all the talent you need inside your four walls without the commitment to them as employees. 
6. Velocity:  What a treat to walk down the hall and talk to your Creative Director.  Opening up communication and encouraging collaboration between what has traditionally been your agency and what is your internal staff decreases the time it takes to get great work done.  The inhouse agency will hit the mark the first time more often. 
7. Better Communication:  In addition to increased velocity, having the MarketPro team at your location increases their ability to interact with your team and gives them access to knowledge about your company that it is impossible for someone at another location to have.  This increases the quality of the work, speeds up execution all while saving you about 40%.