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The Gist
- Data literacy is essential. CMOs must be adept at interpreting complex data to make informed decisions and craft data-driven marketing strategies.
- Personalization drives engagement. Leveraging AI for personalized marketing can significantly enhance customer satisfaction and loyalty.
- AI integration requires leadership. Effective CMOs must guide their teams in adopting AI technologies that align with strategic business goals.
CMOs must blend traditional marketing expertise with modern technological skills to drive growth and innovation. As marketing continues to evolve rapidly, the role of the CMO continues to evolve, requiring a deep understanding of data analytics, digital marketing and strategic leadership.
This article explores the top AI skills essential for CMOs, highlighting how these competencies can help navigate the complexities of contemporary marketing and lead their businesses to success.
From Brand Custodians to Growth Catalysts
The role of the CMO is undergoing a profound transformation, spurred by the rapid integration of advanced technologies and the evolving expectations of modern consumers. Today’s CMOs are no longer confined to being the guardians of brand image and customer engagement; they have become critical drivers of business growth, leveraging data-driven decision-making and strategic innovation to propel their organizations forward.
This transformation necessitates a blend of traditional marketing expertise with cutting-edge AI skills. Understanding and predicting consumer behavior, optimizing marketing campaigns and delivering highly personalized customer experiences have all become intricately linked with AI technologies. Consequently, mastering these AI capabilities is essential for CMOs who aim to remain competitive and relevant in an increasingly dynamic marketplace.
The convergence of marketing and AI offers unprecedented opportunities for CMOs to elevate their strategies and achieve measurable results. By leveraging the power of AI, CMOs can gain deeper insights into consumer preferences, automate and refine marketing efforts and create more engaging, personalized interactions at scale. This not only enhances customer satisfaction but also drives significant business growth, positioning AI-savvy CMOs at the forefront of the industry.
Now let's get into some top skills for today's CMO.
Related Article: Preparing CMOs for the Next Decade of Marketing Leadership
Data Literacy and Analytics
Data literacy is an indispensable skill for CMOs in the age of AI. Understanding and interpreting data is no longer the domain of data scientists alone; CMOs must also be adept at making sense of complex data sets to extract actionable insights. This proficiency enables them to take advantage of consumer data for informed decision-making and strategic planning, ensuring that marketing initiatives are both effective and efficient.
Kristi Melani, CMO at Telesign, a provider of phone number, SMS and identity verification APIs, told CMSWire that the integration of AI is enabling her business to analyze its data more quickly, providing insights that inform its campaigns and help it to understand its customers better.
"We’ve been able to personalize our messaging, optimize our content and predict customer behavior with greater accuracy,” said Melani. “This transformation has not only improved our efficiency but has also strengthened our ability to build and maintain trust with our audience."
Leveraging data effectively involves more than just understanding numbers; it requires the ability to translate data into meaningful narratives that can guide marketing strategies and tactics. CMOs must be proficient in using data to identify trends, measure campaign performance and predict consumer behavior, allowing for more personalized and impactful marketing efforts.
CMOs should be well-versed in a variety of tools and techniques for data analysis. Familiarity with platforms such as Google Analytics, Tableau and advanced CRM and CDP systems is essential. Additionally, understanding machine learning (ML) algorithms and statistical methods can significantly enhance their ability to derive insights from data. This combination of skills empowers CMOs to not only interpret data but also to craft strategies that are data-driven and results-oriented.
“To be effective, CMOs must develop skills in data analysis, AI-driven marketing automation and machine learning,” said Melani. “Understanding how to best utilize AI tools to gain customer insights and enhance personalization is crucial. These skills enable CMOs to stay ahead of industry trends and foster a culture of innovation.”
Personalization and Customer Insights
Personalized marketing has become a cornerstone of effective customer engagement. Consumers today expect brands to understand their preferences and deliver tailored experiences. For CMOs, leveraging AI to gather and analyze customer data is essential in meeting these expectations and driving loyalty.
Heidi Bullock, CMO at Tealium, a CDP provider, told CMSWire that AI can help enable a higher level of personalization in marketing by understanding patterns and making decisions faster, so teams can tailor content, recommendations and advertising to individual customers based on their behaviors, preferences and past interactions.
"This level of personalization improves customer engagement and satisfaction, leading to higher conversion rates and customer loyalty," said Bullock.
AI technologies excel at collecting and interpreting vast amounts of customer data from various touchpoints, such as online interactions, purchase history and social media activity. This data provides deep insights into customer behavior, preferences and needs, enabling CMOs to create highly targeted marketing strategies.
Bullock said that when it comes to AI, enhanced personalization is a straightforward area with which marketing teams can start.
“Even creating a personalized experience for a customer vs. a potential customer can be impactful,” Bullock explained. “AI can be used to create richer segments based on a broader and more current set of criteria, and then teams can leverage the best recommendations for those segments.”
Implementing AI-driven personalization involves several techniques. Predictive analytics can forecast customer behavior and suggest personalized product recommendations, while ML algorithms can segment audiences more accurately than traditional methods. These tools allow marketers to deliver content, offers and experiences that resonate on an individual level.
Dan Shust, director of AI and experience innovation for health & wellness marketing agency Parallel Path, told CMSWire that when used correctly, AI tools and platforms allow marketing teams to work smarter and faster by accelerating and automating routine tasks.
"The more interesting impact is in how AI allows our work to be more data-driven and therefore predictive and personalized at scale," he said. "For example, AI-powered research tools allow teams to explore customer sentiment instantaneously allowing for broader and deeper exploration and tailoring of the outcomes."
For example, Starbucks uses AI to analyze customer purchase patterns and preferences, allowing them to send personalized offers through their mobile app, resulting in increased customer engagement and sales. Similarly, Netflix employs sophisticated AI algorithms to recommend content based on individual viewing habits, enhancing user satisfaction and retention. More recently, Nike, Calvin Klein and Lululemon reduced online returns by using Fytted’s clothing measurement solution, which uses AI to analyze over 50 body measurements in order to recommend the right size for apparel, reducing the number of online returns by 40%.
Related Article: The Unforeseen Consequences of Relying on AI in Marketing Strategies
AI-Powered Content Creation
The advent of AI-powered tools has heavily impacted content creation, making it easier and faster for CMOs to generate marketing, email and advertising copy. AI can produce high-quality content at scale, ensuring consistency and relevance across all marketing channels.
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Many AI tools are available for generating such content. These platforms can create compelling marketing copy, email campaigns and advertisements tailored to specific audience segments. In addition, these AI-driven tools use natural language processing (NLP) to create messages that resonate with the target audience, saving time and resources. The use of prompt engineering has enabled CMOs to become experts at crafting the perfect prompt to obtain the specific content they need, using the brand’s voice, from generative AI chatbots.
Bullock said that AI can suggest content improvements, generate basic write-ups and even test different versions of content to determine which performs best with different audiences. “This is another easy area for teams to start on that can provide a big efficiency gain," she said.
Prompt engineering is a very useful skill for CMOs, as it's crucial to ensure that AI-generated content aligns with the brand's voice and style. CMOs must oversee the content creation process to maintain consistency in messaging and tone. This involves setting clear guidelines for the AI tools and frequently reviewing the output to ensure it meets the brand’s standards.
Shust said that more important than becoming an expert prompter or deeply proficient in any specific AI tools, today’s CMOs need to have a very good base-level understanding of AI, how it works and how quickly the technology is advancing. "This will help them make informed decisions regarding focus, investment and ethics as AI evolves," said Shust.
Strategic Leadership and AI Integration
Incorporating AI into broader marketing strategies is a critical responsibility for modern CMOs. As AI becomes more integral to business operations, CMOs must ensure that these technologies are fully integrated into their overall marketing plans. This integration involves aligning AI initiatives with business objectives and ensuring that AI-driven insights and tools enhance the effectiveness of marketing campaigns and customer interactions.
Amanda Cole, CMO at Bloomreach, an AI-driven ecommerce personalization platform provider, told CMSWire that the CMO role is evolving significantly to meet today's marketing standards, which are much more technologically demanding and customer-centric.
"Creativity alone will no longer be enough," she said. "CMOs must be digitally adept, align closely with the CEO's strategic vision and collaborate effectively with finance and product teams.” Cole related that the success of the modern CMO lies in extending their influence beyond the marketing department to help steer the company's strategic course.
Leading teams to adopt and adapt AI technologies is another essential aspect of strategic leadership. CMOs must foster a culture of innovation and continuous learning within their teams, encouraging marketers to embrace AI tools and methodologies. This might involve providing training, resources and support to help team members understand and use AI technologies effectively. Encouraging collaboration between data scientists, marketers and technologists is also crucial to maximizing the potential of AI.
Several brands have successfully implemented strategic AI initiatives. For instance, Procter & Gamble uses AI to optimize its advertising spend by analyzing consumer data and predicting the most effective channels and messages. This strategic use of AI has improved the efficiency and impact of their marketing efforts.
Related Article: Why 93% Ignore AI in Marketing
Ethical Considerations and AI Governance
Addressing ethical issues in AI use is paramount for CMOs, who must navigate the complex landscape of data privacy, bias and transparency. As AI-driven marketing strategies become more prevalent, it's essential to ensure that these technologies are used responsibly and ethically. This involves recognizing and mitigating potential biases in AI algorithms that could lead to unfair or discriminatory practices. CMOs need to be vigilant about the ethical implications of AI and proactively work to build trust with their customers.
Allison Cerra, CMO at digital banking solutions provider Alkami, told CMSWire that ethical AI is perhaps the most challenging aspect of leveraging AI, as it requires combining soft and hard skills to manage AI models that may otherwise be subject to unintended bias or other ethical concerns.
"While data analysts and scientists will remain in short supply for the foreseeable future, CMOs should also consider their talent needs for inspecting and monitoring AI models for their effectiveness in both driving the right results…and in driving results the right way," Cerra said.
Ensuring data privacy and security is a critical component of ethical AI governance. Consumers are increasingly concerned about how their data is collected, stored and used. CMOs must prioritize robust data protection measures and compliance with regulations such as the GDPR and CCPA. This includes implementing strong encryption, regular security audits and transparent data handling practices. Clear communication about data usage policies can help build consumer trust and loyalty.
Establishing guidelines for responsible AI use involves creating a framework that governs how AI technologies are deployed within the organization. This includes setting standards for transparency, accountability and fairness in AI operations. CMOs should develop and enforce policies that ensure AI is used in ways that align with the company’s values and ethical standards. Regular reviews and updates to these guidelines can help keep pace with evolving technologies and regulatory compliance.
For example, IBM has implemented a comprehensive AI ethics framework that guides their development and use of AI technologies, emphasizing fairness, transparency and accountability. Similarly, Microsoft has established principles for responsible AI, focusing on inclusiveness, privacy and security. In addition, in 2019, Adobe established an AI Ethics Review Board to ensure accountability, responsibility and transparency in all of its AI endeavors.
By addressing these ethical considerations and establishing strong AI governance practices, CMOs can take advantage of AI’s power while maintaining consumer trust and adhering to ethical standards. This balanced approach ensures that AI contributes positively to the business and society at large.
“Being adept at managing AI ethics and ensuring transparency in AI usage helps build trust both within the team and with customers,“ Melani related.
Final Thoughts on CMO Skills
As AI continues to reshape the world of marketing, CMOs must evolve their skill sets to stay ahead. Mastering data literacy, digital marketing expertise, personalization techniques, AI-powered content creation and strategic AI integration are crucial.
Equally important are the abilities to navigate ethical considerations, implement proper AI governance and foster a culture of continuous learning and adaptation. By developing these essential AI skills, CMOs can lead their businesses to new heights of innovation, efficiency and customer engagement.
