B2Bs & the CMO Problem: 5 Reasons Why Finding & Keeping an Effective CMO is so Difficult

In the fast-paced and ever-evolving world of B2B software, the role of the Chief Marketing Officer has never been more critical. Yet, it’s also a role plagued by high turnover and suffering from its own brand problem. This article explores the root causes of this challenge, drawing insights from Holly Rollo’s new book, Power of Surge: Five Ways to Transform Your B2B Software Business and Unleash Hidden Value. By understanding these underlying issues, B2B software CEOs can begin to reframe the CMO problem and create an environment where marketing leaders can truly thrive.

1. Misaligned Expectations About What Modern Marketing Is
   A root cause of CMO dissatisfaction is the misalignment between CEOs and CMOs can come down to understanding how marketing works in an AI-powered customer experience era. While CEOs often see marketing in traditional terms, based on how it operated in the past or at other companies, today’s modern CMO seeks to align a strategy that matches today’s ‘techsumer’ expectations – that may not fully align with the company’s current GTM model or functional org structures.

   Today’s marketing is not a vending machine and fails to acknowledge the complexity of the modern digital journey and the investments needed to build a customer led engine for growth. CMOs are attuned to these complexities and strive to align marketing efforts with a company’s business strategy that has precision focus on the segments that provide the best product/market fit and engages through the learn, try, buy, use stages of a customer lifecycle. This approach is customer-led and can often create friction and frustration when trying to fix processes, adopt new technology and get decisions made across the GTM.

2. Lack of Strategy
   A company only gets good marketing when marketing is based on a sound business strategy. Often companies have two problems in this area. First, many companies will state their strategy is ‘growth’, but that’s not a strategy, that’s a desired outcome. In essence, they haven’t formulated a strategy. Second, they will be executing a strategy that doesn’t match their company situation. For example, they will be trying to act like a market leader when they are actually a turnaround.

   Great marketing can only be done when a CMO has a business strategy to anchor to. Without it, the marketing program devolves into a bunch of disconnected marketing activities without good ROI. For a CMO to be helpful, they need to be engaged to help drive the business strategy from the outset as they can uniquely contribute to better market segmentation, strategic brand positioning, and creating a customer experience end-to-end across the marketing, sales, and customer success motions. CMOs leave because they aren’t successful doing their job and they absolutely can’t do their job without a good strategy.

3. Viewing Marketing as a Cost Center, Not as an Investment
   Viewing marketing as a cost center rather than a strategic investment is a recipe for mediocrity, particularly in the hyper-competitive B2B software industry. Differentiation is paramount in a crowded marketplace, and a strong marketing function is essential for breaking through the noise and outpacing competitors in digital scale, scope and speed of impact on buyers and customers.

   Today’s marketing is more of a utility in a complex web of digital engagements that is ‘always on’ instead of a quarterly vending machine. However, many CEOs struggle with ROI when applying vending machine thinking, especially when compared to the more immediate and tangible returns often associated with sales. This can lead to underfunding or cutting marketing initiatives, hindering the CMO’s ability to execute effectively more long-term, and thus, hindering their ability to deliver the ROI that executive teams and investors expect. It’s a vicious cycle.

   Companies aiming for rapid market share growth or those looking to establish leadership in a new category must be prepared to make significant and sustained marketing investments up front in both the sales activation and brand positioning components of a marketing plan. B2B companies rarely get the ROI they want because they rarely invest properly in both. No CMO strives for incrementalism, but that’s what you get when you are trying to use marketing as a vending machine.

4. Failure to Drive GTM Unity, Accountability, and Decision Authority
   Operating on dated paradigms and functional silos, companies can fail to get full GTM unity that leave many CMOs unable to be successful.

   The importance of radical unity across the GTM can’t be overstated in today’s digital customer-led experience. This goes beyond collaboration and ‘hand offs’ and requires a shared GTM model and a deep understanding of each function’s role in achieving those goals. This necessitates breaking down traditional silos between departments like sales, marketing, and customer success to drive specific KPIs across teams in who drives what conversions at what specific times in the customer journey. This goes one step beyond assigning each function lead, opportunity, renewal and expansion targets. It means driving accountability for clear conversion outcomes in the customer-led engagements.

   CMOs are often held accountable for results without being given the authority to make decisions on technology, process, and actions across the GTM to get the outcomes everyone wants. A CMO who constantly seeks approval for every decision will be slow, ineffective, and ultimately will become demoralized in their ability to impact change to get the job done. It is important to drive accountability and empower their CMOs to make informed, data-driven decisions in areas where they have the most situational awareness, as you would in sales or products.

5. Lack of Trust and Open Communication
   Perhaps the most significant factor contributing to the CMO problem is the lack of trust and open communication between the CEO and CMO. As with the relationship with your CFO, Head of Products and Head of Sales, establishing a relationship built on mutual respect, transparency, and a shared vision for success is critical.

   CMOs can often have unique ways to solve some of the company’s biggest challenges if they were involved in the discussions. They bring diversity, data and insights, creativity, and customer perspectives that can trigger great ideas. CEOs who bring CMOs into these discussions not only get better solutions to problems, but also build more trust and respect across the executive team.

   CEOs should view their relationship with their CMO as a partnership and actively support their CMO’s development, especially if you have put a first-time CMO in place or promoted a high potential. This might involve providing coaching support, sharing industry expertise, and advocating for the marketing function within the broader organization.

Reframing the CMO Problem 

Addressing the CMO problem requires a fundamental shift in how CEOs view and interact with their marketing leaders. CMOs are not simply taskmasters but strategic partners who, when empowered and supported, can significantly impact the company’s trajectory.CEOs can create an environment where CMOs can thrive, leading to longer tenures, stronger brand reputations, and ultimately, greater business success.

Written by Holly Rollo.