Survey of CMOs: Recession Fears Cause Companies to Double Down on Demand Activation

Despite Economic Headwinds, CMOs Optimistic about Emerging Tech Like AI, ChatGPT for Customer Targeting, Behavior Modeling

Chief Outsiders, the nation’s largest and fastest-growing firm offering fractional Chief Marketing Officer and Chief Sales Officer services delivered by executives with Fortune 500 experience, revealed the results from their fourth annual survey of its CMOs on their 2023 outlook – among the main findings: fears of recession are driving a shift to demand activation and away from long-term brand building.

“One of the key findings of our 4th annual survey of CMOs indicate that the current inflationary environment is having companies place a much greater emphasis on near-term sales, so we have a recalibration of the brand building / demand activation strategic mix, in favor of the latter,” said Art Saxby, founder, co-principal and CEO of Chief Outsiders. “The new emphasis on demand activation is very understandable. Of course, it is then the role of CMOs to make sure that in the current economic climate, companies do not forget to invest in their brands altogether.”

“CMOs believe safeguarding growth to be the highest priority for the C-Suite in 2023. They also see that CEOs increasingly give CMOs the responsibility to drive that effort, and it looks like this shift to a very strategic, even business-critical, role for the CMO will be permanent,” said Pete Hayes, CMO and co-principal of Chief Outsiders. “What will now help bring about the much desired growth? Our CMOs believe that revisiting market and competitive insights, refreshing strategy, and accelerating digital marketing capabilities will be three critical factors in helping companies grow in 2023.”

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The survey of 80 CMOs provides insights into the shifting CMO role in driving growth, the impact of technology and emerging trends, and the priorities for C-suite and private equity in the coming year. The survey also shines the light on the importance of customer experience, the impact of emerging technologies on marketing, and the trends in social media and DTC sales in 2023. Some specific insights that CEOs and other members of the C-Suite can draw from the survey include:

• AI and Machine Learning Revolutionary. AI and machine learning will be a game changing technology in 2023, and it will have the most impact on marketing regarding customer targeting and modeling customer behavior.
• Economy a Headwind to Growth. 84% of CMOs believe the economic and business climate of the next 12 months will negatively impact business goals. The economic climate will hamper the ability to meet performance expectations, citing inflation, talent issues, and supply chain issues.
• Sales & Marketing Misaligned. CMOs believe poorly defined strategy and corporate culture are the most likely causes of misaligned sales and marketing. Still, they believe that the relationship between sales and marketing has improved as companies rely on digital channels for demand generation.
• CMO Role in C-Suite Changing. 74% of CMOs believe there has been a shift in the past 12 months in the role CMOs are expected to play in driving growth, with the majority of CMOs believing there is more emphasis on immediate sales, less long-term thinking, and more short-term thinking. Most CMOs believe this shift is driven by changing customer behavior and increased competition. 75% of CMOs believe this shift in how CEOs view CMOs as growth drivers is permanent.
• Improved Perception of CMOs. 73% of CMOs believe they are viewed more positively by CEOs than in previous years.
• Market Research Driving Growth. CMOs believe that market research and competitive insights, strategy development and planning, and digital marketing will be the most significant driving factors in delivering growth.
• Growth Trumping Other Priorities. The majority of CMOs selected “Setting the growth agenda” as the highest priority for C-Suite / PE in 2023.
• Customer Experience a Competitive Advantage. CMOs believe that creating a best-in-class customer experience is a significant competitive advantage and that market research and competitive insights, strategy development and planning, and digital marketing will be the most significant driving factors in delivering growth.
• Video Popular on Social Media. Most CMOs believe that customers want to be communicated with over social media platforms through video. Most of them will make video content production a priority in 2023.
• LinkedIn and Instagram Most Popular. CMOs cited LinkedIn as their likely predominant social platform for B2B, and Instagram for B2C influencer campaigns in 2023.
• DTC Sales up in Retail. CMOs believe either Retail or Health Care will significantly increase DTC sales in 2023.
• Gen Z Caring about ESG. Most CMOs surveyed believe Gen Z is the most concerned about a brand’s stance on ESG when considering buying.

ChatGPT

Following the launch of ChatGPT, CMOs were also asked what value ChatGPT is most likely to offer marketers. They answered that ChatGPT and other generative AI applications will come of use especially in content creation and management. Market research and digital marketing came in second and third respectively.

“Marketing professionals should embrace AI for the many ways the technology can help them serve their clients efficiently,” said Hayes. “AI will not replace experienced marketers and everything they have to offer their clients, but marketers who are versed in AI will replace those who do not understand the technology.”

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