The evolving role of the CMO is changing for SMEs. Accordingly, recent research conducted by McKinsey & Company consultancy, shows that only 50% of Chief Marketing Officers (CMO’s) are involved in strategic planning for the small-to-medium sized enterprises (SMEs). McKinsey partners Stewart and Robinson found that particular revelation “startling.”
Firstly, and by definition, vetted and experienced CMOs in the enterprise should be the most familiar, therefore aligned, with the customer’s end-to-end journey.
Secondly, let’s face it- the current global business environment is currently running wild with uncertainty! All things considered: supply chain sourcing issues, up-and-down tariff’s, geopolitical theatre and fragmented customer behavior just to name a few! Another key point and not to be overlooked is the rapid ascension of agentic and generative artificial intelligence or Ai.
How the CMO in SMEs is Re-Igniting Customer-Centric Growth
Before we jump in, McKinsey authors’ suggest that it is imperative to focus on the relationship between the CEO, CFO and CMO. Certainly, in periods of uncertainty and disruption, it’s much easier to focus on efficiencies, productivity and cost control. Also, in the immortal words of my most famous business mentor, “you just can’t save your way to prosperity.”
Accordingly, placing the customer at the center of the growth equation is vital. Besides, a CMO is simply not flexing their capabilities if they limit themselves to branding and communications initiatives.
2.3X better
Accordingly, McKinsey research suggests that companies that involve the CMO in strategic decision making perform 2.3X better than those that don’t. As I have noted, if I am the CEO presently wearing the “dual hat” of CMO, I might be inclined to reconsider the value proposition.
Chiefly, it’s imperative that the CFO, CEO and CMO be on the same page. Correspondingly, the CMO is singularly held accountable for customer acquisition and retention. You might be asking, “how does the CFO fit into all of this?” Emphatically, in well run organizations, CFO’s should be the third leg of the stool since they are accountable for both resource allocation and financial investment in competing objectives. Further, have you ever heard the old axiom; “if everyone is accountable for customer acquisition and retention, then no one is.”
Further, up to 80% of surveyed CEO’s will tell you that marketing is underfunded. In fact, from 2024 to 2025, marketing spend was 9.1% to 7.7% of sales revenue Y-o-Y. Only 35% of surveyed companies actively manage revenue and margin growth KPI or OKR’s.
Since the role of the SMEs, where do we go from here?
1.) Let’s face it. Be tat as it may, a lot of CEOs have never worn the CMO hat. If your enterprise doesn’t presently have a CMO on the payroll, or you think that you can’t afford one, hire a Fractional CMO!
2.) The custody of the end-to-end customer journey belongs to the CMO. This includes product and/or services offerings and sales into the channel (s).
3.) The very best CMOs in SMEs adopt a “holistic” General Manager’s mindset that interlocks the CEO, CFO and CMO roles.
Finally, CMOs in SMEs have calculated a customer’s lifetime value
4.) Come up with measurable KPI’s and monitor them! With revenue growth and profit margin growth near the top of the food chain! Establish your measurements, your goals and objectives and forecast the impact on your P&L. Remember, “what gets measured gets done.”
5.) Know your customer’s lifetime value.
6.) Establish a regular cadence for discussion by the members of the three-legged stool.
7.) Cultivate supporting talent to get the job done and hold them accountable to results.
