In today's rapidly evolving business landscape, chief marketing officers (CMOs) are facing unprecedented challenges and opportunities. To shed light on how CMOs can leverage innovation to stay ahead, we surveyed over 1,900 marketing leaders to learn their perspectives and plans around shifts in CX and published our findings in the Global CMO Navigator: CX Edition. The following series of questions and answers highlight some of our findings to address common concerns and provide actionable insights.

Q: How significant is the expected impact of innovation on future revenue?

A: The impact is substantial. Almost two-thirds of CMOs believe that within the next five years, at least half of their business revenue will come from offerings that don't currently exist in their portfolio. Even more striking, some CMOs anticipate that 70% or more of their revenue will be generated from products, services, or solutions that have yet to be developed. This underscores the critical importance of innovation in shaping future business success.

Q: Why is investing in innovation so crucial for CMOs? 

A: Investing in innovation is essential for several reasons: 

• Future readiness: By developing new offerings, companies can stay relevant in a rapidly changing market.
• Competitive advantage: Innovation allows businesses to differentiate themselves and capture new market segments.
• Revenue growth: As traditional revenue streams may decline, new offerings can drive future growth.
• Customer satisfaction: Innovative products and services can better meet evolving customer needs and expectations.

Q: What strategies are CMOs prioritizing for this transformation?

A: Our data shows that 51% of CMOs intend to rely on mostly new strategies to chart the path forward. The graph below showcases what those are, with “launching new experiences to expand the aperture of our target audience” being the most-pursued strategy.

To make these transformation strategies possible, CMOs should focus on areas like: 
 

• Data readiness: Partner with the CIO to break down data silos and create a central place for business teams to access the data for activation.
• Data-driven decision making: Leverage advanced analytics (and eventually AI) to identify market trends and customer needs.
• Cross-functional collaboration: Work closely with R&D, product development, sales, and service teams to align innovation efforts.
• Customer-centric innovation: Place customer needs at the center of the innovation process.
• Ongoing digital transformation: Continuously invest in emerging digital technologies to enable new business models and offerings.

Q: How can CMOs foster a culture of innovation within their organizations?

A: To cultivate innovation, CMOs can: 

• Implement innovation labs or incubators within the marketing department.
• Launch an “Academy” for emerging tech; bring in education and hands on opportunities for marketing teams.
• Provide resources, platforms, and most importantly, time for employees to explore new ideas.
• Recognize and reward innovative thinking and successful initiatives.
• Collaborate with startups and external partners to bring fresh perspectives.

Q: What role does technology play in driving innovation for CMOs? 

A: Technology is a crucial enabler of innovation for CMOs: 

• AI and machine learning: These technologies can not only help identify new market opportunities and personalize customer experiences, but also provide internal efficiencies to free up more time for marketers to be more strategic. At the time of our research, only 29% of CMOs reported that their organizations had adopted AI across the entire business and were ready for future innovations.
• IoT and connected devices: Connecting the digital and physical worlds is more important than ever for marketing. These types of technologies enable this possibility at all touchpoints as they open new avenues for product development and data collection.
• Augmented and virtual reality: Getting out of the “website” box, these technologies can create immersive brand experiences and innovative product demonstrations.

Q: How can CMOs balance short-term results with long-term innovation?

A: Balancing short-term and long-term goals is a common challenge. CMOs can address this by: 

• Allocating a specific percentage of resources to innovation projects.
• Setting clear KPIs for both short-term performance and long-term innovation efforts.
• Securing stakeholder buy-in for innovation by building a business case to define the importance and long-term value of the initiative.
• Implementing a portfolio approach that includes quick wins and longer-term, transformative projects.

Q: What skills should CMOs develop to lead innovation effectively?

A: To drive innovation, CMOs should focus on building out their technical aptitude. The future requires that all C-Suite individuals be technical to execute on the ways of working. Some important focus areas should be:

• Data analysis and interpretation skills
• In-platform training and code knowledge 
• Technology and automation capabilities 
• Creative problem-solving abilities

As the business landscape continues to evolve at an unprecedented pace, CMOs must embrace innovation as a core strategy. By recognizing the potential for new offerings to drive future revenue, prioritizing the right strategies, and fostering a culture of innovation, CMOs can lead their organizations to success in an increasingly dynamic market.