2021 CMO Market Insight Study - Market Trends, Growth Insights from Fortune 500 Leaders - Chief Outsiders
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2021 CMO Market Insight Study
Market Trends, Growth Insights from Fortune 500 Leaders
CMOs Who’ve Led Over 1,100 Companies are Positive on
Accelerating Economy, Opportunities for Growth
2021
CMO Market
Insight Study
About this study:
• 68 CMOs with Fortune 500 experience
• Experience with over 1,100 enterprise and
mid-market companies
• Sharing perspectives of their client company
CEOs and marketplaces
3/1/2021Summary of Key Findings
CMOs Optimistic on Accelerating Economy, Growth Opportunities
48% 35.6% 62.5%
said economic said economic believe marketing
conditions will be a conditions will be a budgets—which fuel
positive for business negative for companies’ go-to-
performance in 2021, businesses in 2021 market growth—will
even amid COVID-19. be increased over
This is a 20% positive last year.
shift from 2020
3/1/2021Summary of Key Findings
Pandemic More of an Opportunity than Threat for Business.
43% 38.9% 47.2%
say the pandemic say the pandemic has believe government
has been an been a threat for measures to combat
opportunity for companies, especially pandemic will have
companies, mainly those unable to positive impact on
due to their ability conduct their companies, though
to go digital business online some industries will
not benefit
3/1/2021Summary of Key Findings
Companies Much More Prepared to Strategically Pivot Post-COVID 19
• The vast majority of CMOs (91.6 percent) say companies are far
more prepared to strategically pivot now, as compared to before the
pandemic. COVID-19 essentially forced businesses to reevaluate
their go-to-market strategy, supply chain and other key structural
processes. Now these companies are much more nimble and able to
change course amid a shifting landscape.
3/1/2021Summary of Key Findings
Marketing Not Just About Solving Problems. It’s About Growth.
• Marketing plans and CMOs are a crucial part of every business
operation, but they’re changing. Marketing is no longer just about
solving customer engagement or sales funnel problems: it's more
and more about growth, and CMOs are expected to adapt. CMOs
will be collaborating more and more with other organizational
entities—R&D, sales, IT, and customer service—to meet growth
goals.
3/1/2021Summary of Key Findings
Organic Search, Content Marketing, Email Marketing Top Digital Priorities
• The CMOs believe most company digital marketing spend in 2021 will be aimed at gaining organic
searches, content marketing, and email marketing. They said a big focus will be on digital content like
blog posts, videos and case studies. And they think the most vital capabilities supporting marketing
strategy will be creating stronger customer experiences, better market research, and overall, more
thoughtful marketing tactics.
Predictive Qualification
On a similar note, the CMOs said customer modeling and
of customer prioritization
engagement tactics cannot be overlooked.
behavior of leads
Meanwhile, they think advancements in
predictive analytics (AI) will have a broad
Customer targeting
effect on the following: and segmentation
3/1/2021Summary of Key Findings
Attracting Growth-Minded CEOs Key Growth Challenge Facing PE
• The CMOs said that the biggest growth challenge facing private equity
portfolio companies in 2021 will be attracting growth minded
executives focused on strategy. They view this as a bigger hurdle than
even COVID-19. It’s especially important for GPs to get this right
because LPs will be even more demanding of growth in 2021 than they
were in 2020, especially since many portfolio companies need to make
up for last year’s losses.
3/1/2021Summary of Key Findings
Retailers to Increasingly Use DTC Techniques to Challenge Amazon’s Dominance
• In a shift from last year, the CMOs’ outlook is relatively positive for retailers
amid Amazon’s domination of e-commerce, this despite AMZN’s massive
growth over the past 12 months due in part to the pandemic. Only 11 percent
of CMOs expressed a negative outlook. In regard to how to approach the
ecommerce giant’s dominance, they are of the opinion that direct-to-consumer
strategies (DTC) are the best way for businesses to thrive. Secondarily, they
think companies should focus on retail platforms with a narrower focus, as well
as working within Amazon’s parameters to deliver results.
3/1/2021COVID-19 and the Economy
Positive Economic Impact and Shift
• 48.5 percent believe there will be a How do your clients’ view the economy impacting
their business performance in 2021?
positive or significantly positive
40.00%
impact (up from 35 percent last
35.00%
year) while only 36 percent of CMOs
30.00%
believe economic conditions will
25.00%
have negative or significantly
20.00%
negative impact on 2021 business
15.00%
performance (down from 44 percent
10.00%
in 2020). This is a significant swing
5.00%
year-over-year.
0.00%
Significant Slight It’s negligible Slight positive Significant No opinion /
negative negative impact positive do not know
impact impact impact
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Pandemic More Opportunity Than Threat
• More than 43 percent say the
Would you say COVID-19 has been a threat or an
pandemic has been an opportunity
opportunity for your clients’ business?
for companies, while slightly less
30.00%
than that (38.9 percent) say it’s been
25.00%
a threat.
20.00%
15.00%
10.00%
5.00%
0.00%
Significant Slight threat It’s negligible Slight Significant No opinion /
threat opportunity opportunity Do not know
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Pandemic Impact More Positive than Negative
• On the issue of the pandemic’s
What is the likely impact of the COVID-19 pandemic
impact on meeting business over the next year on your ability to help your clients
meet business performance goals? (economic and
performance goals in 2021, 38.9 budgetary outlooks amid the impact of lockdowns on
percent say it’s slightly or marketing performance)
35.00%
significantly positive, while 27.8
30.00%
percent believe it’s going to be 25.00%
negative for companies. 31.9 20.00%
15.00%
percent say it’ll be negligible.
10.00%
5.00%
0.00%
Significant Slight negative It’s negligible Slight positive Significant No opinion /
negative impact impact positive Do not know
impact impact
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Government Assistance Helpful
• On the government’s continued Do you expect the government’s continued COVID-
measures to combat the pandemic, 19 measures to have an impact on your clients’
businesses in 2021?
almost 47.2 percent believe it’ll 45.00%
either be slightly positive (41.7 40.00%
35.00%
percent) or significantly positive (5.6 30.00%
percent) for companies, while 15.3 25.00%
20.00%
percent say it’ll be negative. 33.3
15.00%
percent believe it won’t have any 10.00%
5.00%
affect.
0.00%
Yes, a very Yes, a Yes, a Yes, a very No impact No opinion /
positive somewhat somewhat negative Do not know
impact positive negative impact
impact impact
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Marketing Strategy and
BudgetsMore Customers Want to Buy Online
• Only 15 percent of businesses believe How has COVID-19 changed the buying journey of
buyers are not making (some your clients’ customers?
35.00%
percentage) of their decisions to buy
30.00%
online. 33 percent of businesses 25.00%
believe 51-100 percent of their 20.00%
customers’ buying decisions are made 15.00%
10.00%
online.
5.00%
0.00%
76-100 51-75 percent 26-50 percent 1-25 percent No buying No opinion /
percent of of buying of buying of buying decisions are Do not know
buying decisions are decisions are decisions are made online
decisions are now made now made now made
now made online online online
online
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Pandemic Has Significant Impact on Strategy
• 83.3 percent say that the pandemic How has COVID-19 impacted your clients’ marketing
strategy / tactics for 2021?
has significantly (44.4 percent) or 50.00%
somewhat (38.9 percent) affected 45.00%
40.00%
companies’ marketing strategies. Less
35.00%
than 14 percent think it’s been 30.00%
negligible or no impact at all. 25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Significantly Somewhat Negligible Not at all No opinion / No opinion /
Do not know Do not know
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Companies Much More Prepared to Pivot
• 91.6 percent say companies are much Would you say your clients are now more or less
prepared for strategic pivots to help navigate through
more prepared (45.8 percent) or 2021?
somewhat more prepared (45.8 50.00%
45.00%
percent) to strategically pivot in 2021. 40.00%
Less than 2 percent are less prepared. 35.00%
30.00%
5.6 percent remain the same as before
25.00%
the pandemic. 20.00%
15.00%
10.00%
5.00%
0.00%
Much more Somewhat No difference Not as Really not No opinion /
prepared prepared prepared prepared Do not know
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021CMOs Changing Roles
Marketer Skills Must Span Strategic to Tactical
Top 5 capabilities companies will Top 5 things CMOs will be
look for in marketers in 2021: expected to manage in 2021:
1. Strategy development and planning 1. Company growth strategy
2. Sales and marketing alignment 2. More of the sales funnel
3. Customer experience and insight 3. Digital technology selection
4. Brand strategy and tactics 4. Customer engagement tactics
5. Content creation and management 5. Account-based tactics
Capabilities Companies Need Expectations on CMOs
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Companies Continue to Evaluate In-House
• 26.9 percent of businesses are expected to bring more marketing agency work in-house in 2021,
reducing costs. That’s down from 35 percent in 2020. Meanwhile, more than 65 percent of CMOs think it’s
unlikely or very unlikely.
How does “in-housing” affect How likely are businesses to bring more of
marketing spend over time? their marketing agency work “in-house”
35.00% within the next year?
30.00% 60.00%
25.00% 50.00%
20.00% 40.00%
15.00% 30.00%
10.00% 20.00%
5.00% 10.00%
0.00% 0.00%
Spend Spend stays Spend No opinion / Very likely Likely Unlikely Very unlikely No opinion /
increases the same decreases Do not know Do not know
3/1/2021
2021 CMO Survey – © Chief Outsiders 2021Digital
Digital Advertising (Still) on the Rise
• Digital advertising expected to increase in Will your clients increase digital ad investments
in 2021?
almost 94 percent of businesses in 2021. 70.00%
That’s up from 80 percent last year.
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
It’s very likely It’s likely It’s unlikely It’s very unlikely No opinion /
Do not know
3/1/2021Digital Proficiency Not as Daunting in 2021
• 78.5 percent of CMOs see difficulty in staying How difficult do you expect it will be over the
ahead of technological advancements. That’s next year to stay ahead of new technological
advancements, remain competent in
down from 88 percent a year ago. multiple programs, and avoid long-term
experience debt?
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
It’ll be very It’ll be difficult It will be easy It will be very No opinion /
difficult easy Do not know
3/1/2021Direct & Digital Priorities and Challenges
Top 5 Sectors that will see the Most Direct- Top 5 Digital Spending Priorities for Companies
to-Consumer (DTC) or Direct-to-Business 1. Organic search
2. Content marketing
(DTB) Increase in 2021:
3. Email marketing
1. Healthcare
4. Paid search
2. Retail 5. Social media
3. Entertainment
Top 5 Digital Content Tactics for CMOs in 2021:
4. Financial services 1. Blogging
5. Travel and hospitality 2. Video
3. Case studies
4. eNewsletters
5. Webinars and online events
3/1/2021Private Equity
CMOs See Top Talent Challenge for PE Top 5 key growth challenges for private equity portfolio companies in 2021: 1. Attracting growth minded talent 2. Adopting sales and marketing technology 3. COVID-19 lockdowns and other measures 4. Retaining talent 5. Unfavorable legislation and trade barriers 3/1/2021
Pressure to Grow PortCos Increasing
Will PE firms be more demanding of growth
• 75 percent of CMOs see private from their portfolio companies in 2021?
80.00%
equity limited partners being 70.00%
more demanding of growth in
60.00%
50.00%
2021. That’s up from 61 percent 40.00%
30.00%
last year. 20.00%
10.00%
0.00%
Yes No Same No opinion / Do
not know
3/1/2021Marketing Owns Most of PortCo Pipeline
For portfolio companies, what percentage
• 31.7 percent of CMOs think that of sales will marketing own in 2021? How
far down the sales pipeline will customers
customers will be 60 percent be before engaging the sales team?
35.00%
down the sales pipeline before 30.00%
25.00%
engaging with the sales team. 20.00%
16.7 percent think it’ll be 40 15.00%
10.00%
percent down the pipeline. 5.00%
0.00%
+- 20% +- 40% +- 60% +- 80% No opinion /
Do not know
3/1/2021About Chief Outsiders
• Chief Outsiders, LLC is a nationwide "Executives-as-a-Service" firm, with more than 75 part-time, or
fractional, Chief Marketing Officers (CMOs) engaged from coast-to-coast. Unlike other strategic
marketing and management consulting firms, each CMO has held the position of VP Marketing or
higher at one or more operating companies. Chief Outsiders have served on the executive team of
over 1,100 client companies to drive growth strategy and execution plans for a fraction of the cost
of a full-time executive.
• Because of its market-based growth plans, quality of leadership, and experienced team, Chief
Outsiders has been recognized for the past seven years by Inc. Magazine as one of the 5,000
fastest growing privately held companies in the US and was recognized in 2019 as a Forbes Small
Giant. Chief Outsiders’ CEO Art Saxby and Principal Pete Hayes are the co-authors of “The Growth
Gears: Using a Market-Based Framework to Drive Business Success,” an Amazon #1 best-seller for
business owners and CEOs. For additional information about the companies who trust Chief
Outsiders as their premier source for business growth acceleration, click here.
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