The Model For Modern Marketing

Licensed for individual use only
The Model For Modern Marketing

The Vision Report In The Marketing Innovation Playbook
by Shar VanBoskirk
March 8, 2019
Why Read This Report Key Takeaways

Companies need CMOs and their marketing teams Marketing Today Is Failing
to help drive customer-obsessed strategies. But Marketers today are brand despots or sales
even though they regularly interact with customers, vassals, neither of which help brands establish
most marketing functions still prioritize internal valuable relationships with empowered customers.
rubrics over solving customer problems. This
New Responsibilities Will Help Marketing Lead
report explains how CMOs should transform the
Owning three key responsibilities — customer
marketing functions at their firms into creators of
understanding, brand strategy, and brand
post-digital brand experiences and leaders of
experience — will free marketing up from the
enterprisewide customer obsession.
day-to-day minutiae that keep it from leading
This is an update of a previously published report; customer strategies today.
Forrester reviews and revises it periodically for
CMOs Must Motivate Marketing Transformation
continued relevance and accuracy.
Senior marketing leaders must catalyze a long-
term shift in marketing mindset, processes, talent,
and insights.
This PDF is only licensed for individual use when downloaded from forrester.com or reprints.forrester.com. All other distribution prohibited.
forrester.com
For CMOs

by Shar VanBoskirk
with Keith Johnston, Melissa Parrish, Carlton A. Doty, Caroline Robertson, Olivia Morley,
Alex Sobchuk, and Rachel Birrell
March 8, 2019
Table Of Contents Related Research Documents

2 Surprise! Marketing Isn’t All That Customer How People Choose
Obsessed
The Operating Model For Customer Obsession
Marketing Fails Its Purpose
Thriving In A Post-Digital World
3 The Customer-Obsessed Marketing Model
Responsibilities Establish Authority
Competencies Make Real These New

Responsibilities
Share reports with colleagues.
Recommendations Enhance your membership with
8 Convert Marketing Completely Research Share.
10 Supplemental Material
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For CMOs March 8, 2019
Surprise! Marketing Isn’t All That Customer Obsessed

Every day, demanding customers, unforeseen competition, and disruptive new technologies hammer
home that we have entered the age of the customer, where established business operations don’t
work.1 Yet most marketing functions still rely on decades-old methods that undermine their ability
to create post-digital brand experiences and help their firms become customer obsessed.2 CMOs:
Because you behaviorally target ads or apply account-based marketing, you presume the customer
is at the center of your marketing efforts. Au contraire! Instead of being customer obsessed, most
marketing functions are instead obsessed with:
›› Transactions. The direct responses of digital channels raised an expectation that every marketing
task should focus on the sale. But in the age of the customer, marketing by “tricking people into
buying a product you made” — in the words of Minsoo Pak, founder of digital agency Sparks
Grove — doesn’t work. Empowered customers expect immediate, customized brand experiences
beyond the purchase process.3 Stephanie Shore, CMO of digital print and design company MOO,
reminds us, “Most of us have to have a relationship with the customer outside of the transaction in
order to thrive.”
›› Sales success. Marketers who support B2B companies are no less beholden to transactions.4
Daniel Rodriguez, vice president of marketing for sales enablement technology firm Seismic,
explains, “Our marketing team supports the same goals as sales . . . not nuanced goals like
number of marketing-qualified leads.” In fact, just 40% of global senior B2B marketing decision
makers have responsibility for customer experience.5
›› Brand autocracy. Chanel has more social media followers than any other luxury brand, but it doesn’t
follow anyone back in order to preserve its exclusivity.6 We also believe in protecting your brand —
after all, brand is the most powerful influence over how people choose.7 But the age of the customer
requires brands to accommodate customer values, not stay sacrosanct.8 One director at a telecom
company told us that keeping a tight rein on brand assets fosters resistance and inefficiency — quite
the opposite of the speed and agility that characterize customer-obsessed firms.9
›› Day-to-day minutiae. CMOs own an increasing number of responsibilities like profit-and-loss

targets, operations, and customer satisfaction in addition to traditional duties like brand health,
acquisition, and retention.10 Juggling all these balls keeps a CMO busy — but it doesn’t allow
her time to lead. This, in turn, leads to bad talent management. It stunts CMO tenure and hinders
strategy and innovation.11 While 48% of CMOs know they should develop strategies for long-term
growth, 45% of them spend their time on tactics like reviewing campaign content.12
Marketing Fails Its Purpose
Prioritizing inside-out practices forsakes marketing’s purpose: to solve customers’ problems through
immersive brand experiences.13 Bad things happen when marketing isn’t customer obsessed:
© 2019 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 2
Citations@forrester.com or +1 866-367-7378
›› Customer experiences aren’t tethered to brand values. United Airlines painfully realized that
every customer interaction represents a brand and can impact sales, revenue, and stock price
as much as any marketing campaign.14 And while building “good” customer experiences helps,
“good” doesn’t represent all the nuances of your brand. Former SAP CMO Maggie Chan Jones
explains that, “every touchpoint, every interaction, even an employee’s action on social media will
impact the brand and therefore customer experience.”15
›› Marketing gets marginalized. CMOs who emphasize campaign creation over customer
obsession will lose ground to chief customer or digital officers with the sagacity to lead corporate
transformation. Diminished marketing functions face chronic budget scrutiny, lose funding, and
can’t woo top recruits.16 The number of UK companies with chief customer officers (CCOs) grew
by more than 600% between 2014 and 2017. The BBC created a CCO role, while Just Eat and TfL
replaced marketing leaders with customer journey execs.17
The Customer-Obsessed Marketing Model

Continuing with “business as usual” will sabotage your marketing function. Just 26% of business
executives think it’s extremely likely that their firms will be more profitable in the next five years if they
maintain their present management approach, corporate philosophy, and innovation strategy (see
Figure 1). Adjust the responsibilities and competencies of your marketing function to make it customer
obsessed (see Figure 2).
FIGURE 1 Few Businesses Expect To Advance Without Changing From “Business As Usual”
If you assume the same management approach, corporate philosophy, and

innovation strategies continue for the next five years . . .
(5 on a scale of 1 [extremely unlikely] to 5 [extremely likely])
My organization will be a top provider of

29%
its products and services
My organization will be more profitable in

26%
five years than it is today
My organization’s products and/or

24%
services will be best-in-class
My organization’s relationship with its

22%
customers will be stronger
My organization will be using the latest technology

21%
to provide better experiences for customers
My organization will be more innovative than

20%
other firms in our industry
Base: 1,024 business leaders

Source: Forrester’s Q3 2016 Customer-Obsessed Operating Model Online Survey
FIGURE 2 Customer-Obsessed Marketers Assume New Responsibilities
Customer
understanding
Mindset
Brand
experience
Insights Process
Talent
Brand strategy
Responsibilities Establish Authority
Too many CMOs fail to lead their firm’s customer strategies because they are spread too thin across
myriad lower-level tasks. CMOs: Use the following three responsibilities to define marketing’s purpose
within your enterprise and the scope of work your teams take on (see Figure 3).
1. Customer understanding. Marketing — not customer experience nor a business insights

function — should own responsibility for helping your firm become insights driven. Marketing must
know your customers; understand what they value and why; and advocate for them in product,
sales, service, and operational decisions. This duty stems from marketing’s close proximity to
the customer, its savvy for storytelling, and its management of customer insights (CI) — 48% of
global marketing decision makers say their analytics and CI teams report into the CMO or senior
marketing leader.18 Allbirds CMO Julie Channing uses data to solve customer problems and help
connect them to her brand.”19
2. Brand strategy. This traditional marketing duty is taking on an additional dimension as customers
today crave empathy and authenticity from brand relationships.20 Owning the brand strategy charges
marketing with defining its firm’s brand promise and how leaders, employees, and partners will live
up to it. When Mario Peshev, CEO of DevriX, built the company brand values into employee KPIs,
he reduced turnover by 30%.21 Davis Smith, CEO and founder of outdoor goods retailer Cotopaxi,
established the values his firm hires for and works to as: “Customer before company before self.”22
3. Brand experience. Brand experience means solving customer problems while also demonstrating
your brand promise in any physical or digital customer interaction.23 Now, CMOs needn’t formally
own all customer-facing functions (although some CMOs, like Clay Stobaugh of publisher John
Wiley & Sons, do). But they must ensure that marketing designs the customer experiences outside
of media and communications to consistently represent brand values. Agency Hill Holliday builds
offline experiences, digital utilities, and even new business models as well as media plans to meet
critical needs identified through customer journey maps.
FIGURE 3 Perform Work Tasks That Align With Marketing Responsibilities
Customer understanding
• Social media monitoring

• Traditional market research
• Behavioral data analysis
• Customer data collection
• Measurement and analytics
Brand strategy
• Brand definition and planning • Creative

• Talent management • Employee education
• Public relations • Employee incentives
• Process definition • Seller education
• Agency relations
Brand experience
• Media buying • Advocacy programs • Promotions

• Media planning • Direct mail • Partnership marketing
• Event management • Loyalty programs • Sales enablement
• PR/corporate communications • Inbound marketing • Channel management
• Campaign management • Content creation
Competencies Make Real These New Responsibilities
Marketing will need new competencies — ones that focus more on planning strategies than on counting
clicks — to deliver on these responsibilities. Mike Mothner, founder and CEO of digital agency
Wpromote, warns that it won’t be easy for CMOs to shift gears: “It’s hard to break that ‘marketing as the
last function’ mindset. But you can’t create post-digital experiences when marketing gets involved only
at the end of the process.” To establish your marketing function as the owner of customer
understanding, brand strategy, and brand experience at your firm, mature your capabilities in four areas:
›› Mindset. No operational adjustments will stick if you don’t first “rethink what you have previously
accepted as truth,” Mothner explains. Three rules define the new marketing mindset: Be human,
be helpful, be handy (see Figure 4). In practice, these rules adjust how marketing approaches its
work. Under Armour creates contextual utilities instead of just buying media.24 Southwest Airlines
limits customer stress rather than just coercing transactions. And Fossil, a watch and accessories
brand, uses advanced attribution to manage its inventory and acquisition strategy rather than just
managing dashboards.
›› Process. Even with the right mindset, you still have to change how you work. As Minsoo Pak
reminds us, most CMOs “do everything in the same old way and then are shocked when [they] don’t
grow.” Plan and budget with agility. The director at a telecom company we interviewed wants a
“finance bench on his team” to manage tradeoffs, not just budget compliance. Connect with sales,
service, product, and customer experience teams to solve customer problems cooperatively. Tami
Mohney, CMO of sporting goods retailer Modell’s, calls this “conducting” customer experiences.
National Geographic uses collaboration platform Trello to facilitate multidepartment projects.
›› Talent. Stock customer-obsessed marketing teams with what Stephanie Shore calls “the people
who change the business.” Build such a team by hiring staff with counterintuitive profiles. Shore
hired a former accountant into product marketing. Mike Mothner recruits screenwriters, comic
book artists, and video game data scientists. Also, train current staff on new responsibilities, and
delegate or automate nonstrategic efforts. This clears space for CMOs to unblock, provide for, and
reward their team — what Leslie Campisi, CMO of investment firm Anthemis, describes as “the
transformational stuff that only you can do.”25
›› Insights. We love how Lee Bryant, cofounder of change catalyst firm Postshift, characterizes
marketing as “a human sensor network that sends market signals back to the business.” Do this
by optimizing traditional research, customer analytics, and employee feedback while also enabling
direct lines to customers when possible. According to its latest annual report, Handelsbanken
customers are more satisfied than the average for the banking category — in part because
customer complaints are handled directly by bank managers, not a customer service line.26
Starbucks shows that customer-obsessed marketers also use customer understanding to inform
business decisions. It uses AI to study in-store transactions to aid product development and
pricing strategies.27
FIGURE 4 Three Rules Define The New Customer-Obsessed Marketer Mindset
Treat your customers as you

Human would your friends.
Helpful Solve customer problems.
Flex to accommodate changing

Handy market conditions.
Recommendations
Convert Marketing Completely

CMOs: Transforming your marketing function into a customer-obsessed one will enable post-digital
brand experiences that resonate with demanding, cross-platform customers. It will also secure your
spot as a leader of your firm’s overall pivot to customer obsession. So, get a move on with these to-dos:
›› Productize. Best practices already exist within marketing and its sister functions. Honestly audit
what marketing does today to identify the starting point of your transformation. Working with
Postshift, one UK accounting firm did this with a “business as a platform” approach. It used
technology and processes to make ad hoc methods easily doable across geographies. This “audit
and improve” outlook can also improve specific work efforts. Companies like GE Financial Services
conduct objective postmortem analyses to learn what went well or poorly on a given marketing
initiative in order to optimize future efforts.
›› Practice. Your assignment here is twofold. First, everyone in marketing, including the CMO, should
be fluent in the products, content, and communities your customers use so that you stay relevant
as their champion. When Stephanie Shore worked at Zipcar, she ensured her team regularly
took a Zipcar for a spin to absorb the user’s experience. And Vala Afshar, chief digital evangelist
at Salesforce, calls for B2B marketers to practice “mobile-only” behaviors and to internalize
how smart devices disrupt traditional sales cycles.28 Second, you must practice new customer-
obsessed marketing methods to find what works. UK insurance firm Aviva uses a “digital garage”
to test innovative approaches before rolling them out to the enterprise.
›› Promote. Ironically for a promotions body, marketing often acts as a service bureau, simply
responding to inbound requests from product or brand teams. CMOs: Showcase marketing to the
rest of your firm as the keeper of the customer and the architect of brand experiences.29 Stephanie
Shore advises, “Make it widely known . . . that you aren’t just ‘the guys who buy the ads’.” Sheryl
Jacobson, principal with Deloitte Consulting, says that, “Translating marketing for C-suite peers
requires speaking about the issues that matter most to different executives.”30
›› Provoke. Even harder than catalyzing a change to customer-obsessed marketing is

institutionalizing it.31 CMOs must provoke staff to assume a different discipline for the long haul.
Companies like Bosch apply behavioral change management to accommodate the psychological
reasons why humans accept or reject change.32 Dutch nursing care provider Buurtzorg involves all
employees in its strategic direction by asking them to submit solutions to client problems via an
online portal. And Nordstrom gained staff buy-in to a new digital strategy by using a value-stream-
mapping workshop to show everyone where they contributed to customer success.33
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Supplemental Material
Survey Methodology
Forrester’s Q3 2016 Customer-Obsessed Operating Model Online Survey was fielded in July and
August 2016. This online survey included 1,024 respondents in a leadership role from companies with
500 or more employees in the US, UK, and Germany. Research Now fielded this survey on behalf of
Forrester. Survey respondent incentives include points redeemable for gift certificates.
Companies Interviewed For This Report
We would like to thank the individuals from the following companies who generously gave their time
during the research for this report.
Anthemis Modell’s
Megan Kent Branding Group MOO
Postshift T3
SapientRazorfish T-Mobile
Seismic Wpromote
Sparks Grove
Endnotes
1
Meeting empowered customers’ needs requires a fundamental reset of day-to-day operations. See the Forrester
report “The Operating Model For Customer Obsession.”
2
The post-digital future has arrived with its different customer behaviors, attitudes, and business practices. However,
decades-old habits forged in the mass marketing era still underpin most marketing plans. See the Forrester report
“Thriving In A Post-Digital World.”
3
Hyperadoption — a common customer behavior brought about by digital disruption — makes your customers crave
new, stimulating experiences. See the Forrester report “Will People Really Do That?.”
4
B2B marketers overly focus on sales; building brand affinity matters in their industries as well. See the Forrester report
“Drive B2B Brand Value With Emotion And Experience.”
5
Source: Forrester Analytics Global Business Technographics® Marketing Survey, 2018.
6
Source: George Aliferis, “How Chanel Became the Most Social Luxury Brand,” Luxury Society, August 25, 2017
(https://www.luxurysociety.com/en/articles/2017/08/how-chanel-became-most-social-luxury-brand/).
There is no more important position to hold than being an anchor brand, no matter your industry or primary decision
7
type. Anchor brands are reference points against which buyers compare every other option. And anchor brands are the
go-to when a user can’t make up her mind (which is most of the time). See the Forrester report “How People Choose.”
8
A great product is no longer sufficient to guarantee strong sales and loyal customers. Today’s empowered consumers
not only reject corporate irresponsibility but also seek brands that proactively promote beliefs and values aligned with
their own. See the Forrester report “Align With Consumers’ Values To Win Their Hearts And Wallets.”
9
Customer-obsessed firms are customer led, insights driven, fast, and connected. See the Forrester report “The
Operating Model For Customer Obsession.”
10
CMOs manage a portfolio of objectives. See the Forrester report “Five CMO Priorities For Driving Customer Obsession.”
11
Source: Christine Crandell, “What’s Going to Keep CMOs Awake at Night in 2019,” MarTech Advisor, January 25,
2019 (https://www.martechadvisor.com/articles/bi-ci-decision-science/whats-going-to-keep-cmos-awake-at-night-
in-2019/).
12
Source: Sophia Bernazzani, “The Evolution of the Strategic CMO [Infographic],” HubSpot blog, January 10, 2017
(https://blog.hubspot.com/marketing/strategic-cmo-infographic).
13
The post-digital world adjusts marketers’ purpose, scope of responsibility, dimension of insight, source of insights,
technology outlook, and measurement goals. See the Forrester report “Thriving In A Post-Digital World.”
14
United Airlines experienced severe customer backlash, which resulted in financial loss, after video footage of flight
staff dragging a passenger off a flight went viral. According to reports, the company lost $1.4 billion in value overnight.
Source: Shep Hyken, “Customer Experience Is The New Brand,” Forbes, July 15, 2018 (https://www.forbes.com/sites/
shephyken/2018/07/15/customer-experience-is-the-new-brand/#206a62727f52).
Source: Steve Olenski, “Should CMOs Lead Customer Experience? One Former CMO Says Maybe,” Forbes, March
15
19, 2018 (https://www.forbes.com/sites/steveolenski/2018/03/19/should-cmos-lead-customer-experience-one-former-

cmo-says-maybe/#1ce232005bff).
Source: Sarah Vizard, “Are chief customer officers just CMOs in disguise?” Marketing Week, August 30, 2018 (https://
16
www.marketingweek.com/2018/08/30/chief-customer-officers-cmo-in-disguise/).
Source: “Massive Potential: Q&A With Coca-Cola Chief Growth Officer Francisco Crespo,” brandchannel, November
17
13, 2018 (https://www.brandchannel.com/2018/11/13/5-questions-coca-cola-cgo-francisco-crespo/).
When asked where analytics and customer insights report into at their organizations, 48% of global marketing decision
18
makers reported “to the CMO or senior marketing leader,” and 7% reported “to the market research organization.”
Source: Forrester Analytics Global Business Technographics Marketing Survey, 2018.
Source: Billee Howard, “Ask The CMO: A Conversation With Allbird’s Julie Channing On Igniting A Brand
19
Movement,” Forbes, February 25, 2018 (https://www.forbes.com/sites/billeehoward/2018/02/25/igniting-brand-

movement/#22d33082589).
People today trust each other more than they trust institutions. So, when a brand demonstrates values similar to
20
theirs, they notice. See the Forrester report “Thriving In A Post-Digital World.”
Source: “Maintaining Company Culture When Scaling: Eight Methods Every Entrepreneur Should Know,” Forbes,
21
January 7, 2019 (https://www.forbes.com/sites/theyec/2019/01/07/maintaining-company-culture-when-scaling-eight-

methods-every-entrepreneur-should-know/#72410a324fd2).
Source: “2017 Final Agenda: Tuesday Agenda,” Shoptalk, March 21, 2017 (http://2017final.shoptalk.com/agenda/
22
tuesday).
Your most desirable customers don’t trust shallow branded messages but are exposed to more of them than other
23
customers because of their perpetual digital connections. So, you must demonstrate your brand promise — don’t just
talk about it. See the Forrester report “Create Marketing Your Customers Can Use.”
See the Forrester report “The Power Of Customer Context.”

24
Customer-obsessed leaders excel on five dimensions. See the Forrester report “Leadership In The Age Of The
25
Customer.”
“Our combination of personal service, local presence and high-quality digital services remains popular among
26
customers. In its customer satisfaction surveys for the year, the independent research company EPSI Rating (which
includes the Swedish quality index SKI) found that Handelsbanken’s customers are distinctly more satisfied than the
average banking customer in each of our six home markets.” Source: Sustainability report, 2018,” Handelsbanken,
2018 (https://mb.cision.com/Main/3555/2740639/992151.pdf).
Source: Kamalika Some, “Starbucks Relies on AI Powered Customer Insights to Drive Growth,” Analytics Insight,
27
February 1, 2019 (https://www.analyticsinsight.net/starbucks-relies-on-ai-powered-customer-insights-to-drive-

growth/).
Source: Heike Young, “New Data: The Connected Customer’s Wants and Needs in 2017,” Salesforce blog, January 4,
28
2017 (https://www.salesforce.com/blog/2017/01/data-the-connected-customers-wants.html).
Source: Julie Kollman, “Where does marketing fit within the C-suite and the boardroom?” Kantar UK, January 24, 2019
29
(https://uk.kantar.com/business/brands/2019/where-does-marketing-fit-within-the-c-suite-and-the-boardroom/).
Source: “Translating Marketing Into the Language of the C-Suite,” The Wall Street Journal, June 1 2018 (https://
30
deloitte.wsj.com/cmo/2018/06/01/translating-marketing-into-the-language-of-the-c-suite/).
Even the most customer-obsessed firms must work to sustain their customer-focused strategies for the long term. See
31
the Forrester report “The Customer Obsession Assessment.”
More and more companies are turning away from command-and-control change management approaches to ones
32
that leverage behavioral psychology instead. PwC’s The Change Trifecta helps explain this new discipline. Source:
“The Change Trifecta,” PwC, 2012 (http://www.pwc.com/us/en/people-management/publications/assets/pwc-change-
trifecta.pdf).
If you want your employees to live your values, you need to manage them the right way. Consider the journey of
33
Courtney Kissler, former vice president of eCommerce and store technologies at Nordstrom: She discovered that
employees didn’t understand how their work related to customer value, so the retailer conducted a value-stream-
mapping workshop that helped employees see where they added value and where they didn’t. Nordstrom was able
to cut 60% of the activities interfering with creating customer value and boost employee motivation. See the Forrester
report “Five Secrets Of Customer-Obsessed Cultures.”
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