Study: CEOs say that marketers lack business credibility
It is a harsh statement. It is a statement that undermines the value of leading marketers in the world. But it comes from their bosses: CEOs.
A majority of CEO’s believe that marketers lack business credibility. And it is not only that… Marketers are not the business growth generators they should be and are not focused enough on effectiveness. This is the key findings of a recent report „2011 Global Marketing Effectiveness Program“ by Fournaise Marketing Group. The report interviewed over 600 large corporation and SMB CEOs and decision makers in Asia, Australia, Europe, and the US.
Nearly three quarter (73%) of CEOs believe marketers are not able to demonstrate how their cross-channel marketing strategies and campaigns help to increase their organisations’ top line in terms of more customer demand, sales, prospects, conversions and market share.
However these findings sound like a slap in the face of marketers, the study makes also clear that vertical metric set-ups are still a challenge for companies. 77% of respondents admitted that they cannot connect EBIT, market valuation or revenues to marketing facts like brand equity, brand values or other marketing ROI metrics.
The study claims that 74% marketers rely too much on the creative element of their job, ‘arty’ and ‘fluffy’ thoughts and too much on their ad agencies to come up with the next big idea. I would like to add that very often publishers make up a lot of these ideas but appear to stay in second line to the client. Just a quick hint to CEO’s…
In some of my latest projects in the last five years, I have seen marketers asking for many and very detailed reportings. The interesting thing is that 70% of CEOs see marketing data marketers provide is hardly useful, or relate to or mean anything for their company’s P&L. Obviously, 69% of marketers say that their campaigns and strategies have an impact on business – but cannot precisely quantify.
“Until marketers start speaking the P&L language of their CEOs and stakeholders, and until they start tracking the business effectiveness of their strategies and campaigns to prove they generate incremental customer demand, they will continue to lack credibility in the eyes of their CEOs and will continue to be seen more as a cost centre than as an asset.”
Jerome Fontaine, CEO, Fournaise
For me one of the main interesting topics is that 74% of CEO’s find that marketers focus too much on the latest marketing hypes (i.e. social media 74%) without explaining the real value it brings to the business. In order to generate ROI, very often marketers are starting discussions with third parties or agencies about latest trends and then jumping on them immediately without even thinking about the ROI it might bring to the business – instead of focussing on where main revenue streams are coming from.
Now, the funny thing is that probably most of marketers won’t comment on these findings, I assume. Although it would help all marketers to start discussing now…