Starbucks still needs a CMO

Brian Niccol stepped into his role as CEO of Starbucks this week, and his appointment promises to revive the iconic coffee brand. But the move still leaves us questioning: where is the CMO?   

In March, Starbucks’ former global CMO, Brady Brewer, was promoted to CEO of Starbucks International, and the company eliminated the global CMO role.

But rather than interpreting this as a sign that the CMO role is irrelevant, it suggests the inextricable and increasing link between marketing and strategic business impact.

The CMO role is expanding, not contracting

Many large corporations have either changed the title or removed the CMO role entirely in recent years. This has often meant folding marketing leadership under other roles, like the COO, as did Etsy, which risks losing marketing’s creative perspective; or using new titles, like strategy and innovation director, as did Yorkshire Tea.

But this distraction misses the point that, as a core function of any business, marketing isn’t going away, but evolving.

As program director for The Conference Board’s Council for CMOs, I have seen the CMO role widen across companies, as marketing and business become inextricably linked. I’ve seen roles expand to include strategy-setting, growth, customer experience and personalisation, communications and PR, internal engagement and even culture.

As the remit of a marketer continues to change, the question is not whether the CMO role is becoming obsolete, but how marketers can position themselves to best align with business goals. 

Definition is key

Successful marketers understand the business first, the market second and how to connect the two to support growth. Alignment and strong relationships between marketing and the C-suite are business critical to achieve this.

Clearer definition of the CMO role—currently the C-suite post most open to interpretation—will help those in the position fulfill their potential. We all know what a CFO does, or a CHRO, but the CMO role varies the most across many the business, and from one organization to another. CMOs are always there to market, but the wider remit will vary based on the CEO’s imperatives. Giving the role structure and scope enables maximum impact and opportunity.

CMOs are the glue holding an organization’s image together, but their inward-facing value should not be overlooked. They can apply the same rigor internally as they do to the marketplace.

The power of C-suite alignment

To harness the CMOs potential, there must be alignment between it, the CFO and the CEO. CMOs are also finding and securing strong links with CHROs, as it becomes more challenging to attract talent; the CFO, since marketing must drive the bottom line; and the CIO, given the CMO’s reliance on all things data and analytics.

Forging effective partnerships with the C-suite is still a work in progress. The Institute for Real Growth reported that only 57% of global marketers claimed to have an influence on the business strategy. New results shared by the institute's founder show this figure increasing to 73%.

A universal language will help accelerate this shift, especially between the CMO and CEO. CMOs work best when they report directly to the CEO. When the CMO has the ear of the CEO, they can do great things together. It’s often why the CMO changes when a new CEO comes into an organisation.

Window to the customer

With the wealth of information at a CMO’s fingertips, they are the window to the customer, connecting brand and audience. It's why Burberry recently hired a new CMO with a focus on strengthening the brand amid declining sales.  

You can’t be the CMO of a FTSE350 company today unless you have an MBA. Without those creds in analytics, science and business, along with an understanding of how to merge the strategic and the creative, CMOs won’t succeed.

CMOs also bring a deep, nuanced understanding of the marketing function and how to connect the business to growth. Coca-Cola and McDonald’s both reinstated the CMO position within two years of scrapping it, in 2017 and 2019, respectively. It’s a recognition that the core competencies a CMO brings to the role are essential, and can only be honed through marketers’ specific training and experience.  

Marketing is the lifeblood of an organization, setting the direction for other functions and driving growth. Businesses best positioned for the future will invest in marketing, integrate it at the executive level and use the CMO resource most effectively. Building a brand is good for business; tell your CFO it’s worth the investment.

As for Starbucks? A well-defined CMO role could be the key to helping the brand regain its contemporary mojo. 

MaryLee Sachs is cofounder and U.S. CEO at Brandpie.