Marketing is Always Under Scrutiny…
The short tenure of CMOs in B2B tech companies isn’t a coincidence; it’s the result of several factors that, when combined, create the perfect storm for turnover. It comes as no surprise that the importance of the marketing function means that its performance and output are constantly under review and subject to scrutiny when sales performance stalls. Gartner’s 2023 study, “CMO Strategic Planning Survey,” says a CMO’s tenure in B2B tech startups is 18-24 months, especially in Series A-C companies. This is often due to misalignment with the CEO or founders and difficulties in short-term pipeline conversions. In addition to examining the reasons why CMOs are often on the firing line, I’ve outlined the top practical steps they can take to extend their tenure.
Misunderstood, Misaligned and Marginalised
CMOs are the most frequently replaced executives in tech startups and the least understood hire. Getting the balance right between long-term brand building and short-term lead generation is a CMO’s biggest challenge, and one that causes the most friction. This high turnover undermines planning, execution and consistency, which can be very disruptive to a startup’s growth. The CMO role is often misunderstood, with founders expecting overnight results in lead generation, but rarely providing the resources or time needed to support the function.
Founders with a tech background especially, tend to favour investing in hiring new technical staff, such as software engineers, and growing the technical or operational departments. This is usually at the expense of investing in something they don’t understand, such as marketing and sales. All team members must be aligned with the CEO and founders, but this is sometimes easier said than done, potentially leaving the CMO isolated, marginalised and with little room to manoeuvre. This can be a very lonely place to be but despite working hard and in good faith to deliver results, the inevitable outcome may have already been decided.
Top 5 Reasons Why CMOs Have Short Tenure
1. Unrealistic Expectations
Tech startup CMOs are expected to deliver immediate results. The pressure to show ROI on marketing initiatives quickly can lead to hasty decisions or worse, a premature exit. If the support, budget or tools are not available to execute the strategy effectively the outcome is likely to be unfairly harsh on the individual.
2. Rapidly Changing Market Conditions
The tech industry is one of the most dynamic and constantly changing, as new competitors emerge, customer needs shift and marketing channels evolve. CMOs are expected to keep pace with market trends and must regularly adapt their strategies. They must also keep pace with the latest marketing technologies and techniques, all of which can be exhausting and lead to burnout or the sack if results aren’t forthcoming.
3. Poor Alignment with Sales
A common issue is the friction that can exist between marketing and sales teams. If marketing isn’t generating the leads that sales can convert easily, the CMO is often the first to be scrutinised. Even if the issue is the failure of sales to close deals, it’s still more likely that patience will run out with the CMO first. Sales conversion, provided the pipeline is replenished regularly, is unlikely to be a marketing issue. Even if marketing is struggling to generate new leads, the first question to ask is: Is the budget adequate and where is it being spent? Then there needs to be a review of the messaging, targeting and overall proposition: is it still relevant to the audience or is something amiss? These factors can be easily reviewed and tactics adjusted accordingly, as they are required to be on an ongoing basis anyway. However, in many cases, that doesn’t seem to matter, and the outcome for the CMO can be inevitable, even without understanding if there is a deeper problem.
4. Poor Cultural Fit
A CMO who doesn’t seem to fit the company culture won’t last long. For example, someone who is more used to working in large corporations, where everything is organised and highly processed, will find the chaos of a startup very foreign and alienating. Many tech firms have a significant bias in their staffing numbers towards more technical roles, and marketing can often be a single individual trying to vie for attention and support against all the background noise. A tech founder is more likely to pay attention to the parts of the business they understand and care most about most, with less involvement, appreciation and resources made available to both marketing and sales.
This can leave a startup at a distinct disadvantage when trying to win new business against competitors with better resourced go-to-market teams. Also, marketers tend to be less self-promoting than their sales counterparts, who often shout the loudest and wield the most influence, ensuring they are prioritised for new hires and their requests get actioned. Sales teams regularly pull marketing in multiple directions with their knee-jerk demands. If a marketing leader conflicts with the sales team, the outcome will likely be decisive against the CMO.
5. Dealing With Ambiguity
CMOs are required to execute the most important and visible work for a startup, despite a lack of support and resources. Despite this, they are expected to navigate a new market, niche or product category and make sense of it with little to no context or reference points. When starting a new marketing job in a startup, there are many questions but few answers, so a CMO must be comfortable working in an environment of ambiguity.
I’ve often described startup life as a voyage of discovery, but at the same time a CMO must build a brand, make an impact and produce sales opportunities from thin air, as if pulling a rabbit from a hat. Generating leads for a new tech startup is akin to a magic trick, and for sales to win a new client is like performing a small miracle. You need a bit of luck, and certainly some friendly contacts willing to take a chance on your tech solution along the way.
Adrenalin Fuelled Ride
I don’t mean to make the role of the CMO sound impossible and unrewarding, because for the right individual, it is still one of the most exciting professions. However, it’s better to go into these situations with your eyes wide open and be fully alert to the possible pitfalls that could limit your effectiveness or even put your position at risk. While you need to have enough experience to know what to do, producing results for a new startup is like walking an untrodden path, as it has no precedent.
Top 5 Ways CMOs Can Extend Their Tenure
1. Balance the Short and the Long Game
While you might be under pressure to deliver quickly, it’s still important to create and execute a balanced strategy that’s sustainable. CMOs must focus on long-term brand building alongside the more short-term priorities of the business, such as lead generation and doing everything possible to help sales convert prospects into customers. Company cash flow is the lifeblood of any business, and everyone in the team fails if revenues don’t keep up and goals are not achieved.
2. Rally the Troops
Marketing success is a team and cross-departmental effort and getting buy-in from all key stakeholders is critical, especially those in the leadership team. Support from other departments and external agencies is also important and must be regarded as extensions of the marketing team, giving you access to wider skills and capability. Keeping everyone informed, onside and involved is a skill every CMO must master.
3. Stay Positive, No Matter What
Being relentlessly optimistic might seem naive, but it’s a powerful tool in a highly stressful environment. Staying positive and resilient can help any CMO deal with the inevitable ups and downs they will face.
4. Know When to Adjust Tactics
CMOs must always be think ahead and plan for the future. If you had to spend last year’s budget again, what would do you differently? If you had more budget to spend this year, what are the top three things you would do that you couldn’t do before? Considering questions like these helps you to prepare for new ideas, concepts and campaigns. Keeping a close eye on marketing metrics and how you are performing means you are more ready to adjust when the time is right, sometimes that flexibility is what saves your job.
5. Build Relationships from the Top
One of the most important factors in a CMOs tenure is the relationship you establish with key stakeholders, such as the CEO, founders, the board and the sales team. A healthy situation that is supportive and respectful will make all the difference. If the company’s leadership and sales team value your work, then you have a strong position that can sustain many of the inevitable bumps in the road ahead. However, as soon as you no longer feel appreciated and supported, it’s time to start thinking about and preparing to move on, so when the time comes to leave, it’s on your terms.
Final Whistle
The role of a CMO in a B2B tech startup is not for the faint of heart. It’s a high-pressure, high-stakes game where the expectations are intense and unrelenting. The key to success is balancing short-term demands with long-term vision, while maintaining close alignment with key stakeholders, motivating the team and staying adaptable in the face of constant change. If all else fails, channel your inner Ted Lasso by staying optimistic, focusing on continuous learning, and remembering that every challenge is just another chance to prove your worth, both on the playing field and in the boardroom.
You may want to read: “Why the Tech CMO is the New Football Manager.”
