Three trends for CMOs in 2023: Gartner

As 2023 nears, marketers need to set the agenda for the year ahead with a major focus in driving growth in a continuing volatile environment.

A new Gartner report, highlights the three major trends that will impact marketers next year. These include shifting customer behaviours, burdensome cross-functional collaboration and disruptive market dynamics.

Ewan McIntyre, chief of research in the Gartner Marketing practice said as CMOs enter 2023, the current environment demands a relentless focus on customer value, purposeful evolution of the marketing function, and continual optimisation of brand value.

He said, “In order to meet the enterprise mandate of driving growth amid continued disruption, CMOs must act decisively to prioritise their investments and their strategy for the year ahead.”

Shifting customer behaviours amplify uncertainty

Amid inflation and economic uncertainty, customer demand and buying behaviours will fluctuate unpredictably, Gartner said.

Inflation is driving cost-cutting behaviours, with 30 percent of consumers buying more store brands, and almost a fifth reducing in-person shopping visits in favour of digital buying, according to a Gartner survey of more than 1,500 consumers in September.

This will challenge established brands to maintain brand preference, premiums and loyalty, according to Gartner. 

In addition, the majority of consumers and B2B buyers will increasingly withhold the personal data necessary to effectively track demand or respond with multichannel engagement, exacerbating CMOs’ data challenges.

McIntyre said, “Marketing leaders should create a digital customer value exchange to provide mutual value on digital channels throughout the full cross-channel journey.

“Enhance the effectiveness of digital marketing by seeking opportunities for personalised engagements that genuinely help customers throughout their end-to-end customer journeys.”

Cross-functional collaboration yields worse outcomes

Strategic marketing priorities, such as innovation, customer experience (CX), and digital commerce, have transcended functional boundaries and are now enterprise-wide priorities with complex cross-functional execution.

Gartner said shared priorities may draw funding away from marketing departments that have yet to see their budgets return to pre-pandemic levels and taxes already-strained marketing teams, resulting in lower performance against critical marketing goals.

“CMOs must adapt team structures and skills to advance new cross-functional operating models. Streamline operations, establish common key performance indicators (KPIs), and orchestrate messaging throughout the customer experience for greater effectiveness of marketing, sales, and other customer-facing teams,” McIntyre said.

Disruptive market dynamics erode traditional sources of brand value

Traditional sources of brand value, such as brand reach, positive brand sentiment, or perceived differentiation are under pressure amid new forces: disruptive market entrants, heightened audience expectations, and the ease of digital learning about unfamiliar brands, Gartner explained.

Audiences face disruption at each stage along the traditional linear path to brand value, awareness, consideration and brand loyalty.

“CMOs must redefine and quickly demonstrate the value of brand investments in a volatile environment,” McIntyre said. “The strongest driver of brand commitment is a single meaningful brand experience, even with unfamiliar brands.”