You’ve seen the carousel at the fair – the never-ending circle of wooden animals that seems like child’s-play at first glance. It’s a simple enough attraction, but since it only stops briefly (if at all) to allow new riders, timing is vital to keep from tripping upon entry. Being in the best position to jump on the platform ensures you’ll be the one who ultimately grabs the brass ring.

Getting the timing down is undoubtedly the trickiest part – and this analogy is especially true in sales. Knowing when a prospect is most likely to buy is the holy grail of business development.

After years of tracking industry shifts and forecasting sales opportunities, our team at WinmoEdge has created and molded our own algorithm to predict new business. How? Well, we spend A LOT of time monitoring the industry, but more specifically honing in on certain new business triggers we know lead to change (aka a sales opportunities).

One thing we know about timing is that a new CMO is the No. 1 indicator of an impending agency review. Having advance knowledge of new decision makers will give you the upper hand when looking for potential accounts and revenue. For example, if you know that department store CMOs tend to leave their post after 35 months and that Company X’s current CMO has been with the company for 30 months, it might behoove you to keep the company on your radar since a regime change may happen shortly.

While there are many reports that speculate on the average CMO tenure, we knew Winmo housed an impressive 22 years of CMO data. We decided to run our own report – not only on general CMO tenures, but how they might differ by industry. For those in sales, having this depth of information – to know when to reach out to a CPG CMO vs a Financial CMO – would be industry-leading intelligence for our clients.

We looked at over 1400+ CMO tenures across 1100+ companies from the industries WinmoEdge reports on the most, including CPG, financial services, restaurants and retail.

Overall findings

1. The average CMO tenure is 38 months; median is 27 months.

   We found that the average CMO tenure is 38 months (3.2 years), while the median tenure is around 27 months (2.25 years). It is important to know both of these numbers because while the average is the central or typical value of the data set, it is more susceptible to selection bias and is easily skewed. The median, however, is the value at the mid-point of the data set – other values have an equal probability of falling below or above this value. In data sets with outliers, such as 10-year tenures, the median is the best way to describe the data.

   Clients should consider the space between these to values as a “sweet spot” of sorts. As we mentioned, CMO shifts are the No. 1 indicator of looming change and being able to predict when these shifts will happen can help whittle down your prospecting lists. Agency readers will want to form relationships with new CMOs and their teams to get in on pitches; media sellers will want to know when new campaign dollars might be available.
   

2. CMO’s have half the time to make an impact.

   According to a 2016 Equilar study, the average CEO tenure is 88 months. Compare this to our report, which shows CMO tenures around 38 months. This gives CMOs roughly half the time of their CEO to make an impact on the brand.

   With such a short runway, CMOs must hit the proverbial ground running as soon as they join a new company. Having the inside track on CMO shifts will allow you to reach out before your competition, ensuring you are top-of-mind when reviews are initiated or new revenue becomes available. Even knowing that a CMO has left a company can be beneficial; engaging with lower ranking team members will likely lead to an introduction once a new CMO is announced.
   

3. As digital marketing capabilities advance, CMO tenures will continue to shorten.

   The marketing landscape is always changing: CMOs are no longer simply a brand ambassador, setting strategy for traditional buys. The rise of digital advertising has created a demand for CMOs with digital expertise, and those who cannot change with the times usually find themselves crushed under its wheel.

   Keep in mind, as well, that ROI on digital advertising is available much faster than with traditional channels, and CEOs/CFOs who do not perceive money as being well spent will ax the one who is responsible. Today’s top markets have much more on their plate than their predecessors and dropping just one ball could spell the end of the ride.

   To get full details on our CMO Lifecycle Report and learn the different tenures by industry, download our report here.

Step aside Cupid! There’s a flurry of CMOs breaking up with brands and we’re here to make it right.

Like any other national holiday centered around love and chocolate-covered deliciousness, no one should be left out in the cold- including big brands. So, we’ve decided to play matchmaker and help mend the broken hearts of five brands that recently went through CMO breakups.

Keep in mind, with any CMO breakup, this typically signals that major agency roster changes are likely to occur in the next 6-18 months. That means that now is the time to start wooing these brands if you want to catch their eye or land some potential new business. They could be your perfect match!

Just a few weeks after Mark Zuckerberg announced that Facebook would limiting the ads on the platform to focus more on family and friends, CMO Gary Briggs decided it was time to see other people. Briggs announced that he would be stepping down from his position, but won’t be leaving until the new CMO comes in and gets situated, however long that may take.

Either way, Briggs will be leaving and a new CMO will be coming in, so changes are coming. That also means advertising, media and other work could be up for grabs, especially given Facebook’s issues since 2016. Start contacting lower level marketing positions (director and VPs), who can help refer you to the new CMO once he/she starts. Your competition for work will include WPP’s Mindshare, which has handled media since 2016. Creative is handled in-house.

Sellers – Facebook attracts a wide range of users to appeal to as many advertisers as possible. Thus, they run traditional and digital ads all year on a variety of platforms. ISpot reports a 2017 national TV spend of $12.1 million. 2016’s spend was $36.6 million.

Request a trial to access the decision maker info for Facebook here

 

Becky Gebhardt, Lands’ End‘s CMO and chief creative officer decided things weren’t working and left the struggling retailer at the end of 2017. She departed just as Gill Hong and Sarah Rasmusen joined as chief merchandising officer and e-commerce SVP, respectively.

Currently, LE is on a mission to shift spend into “more effective channels,” so look for more direct marketing, in addition to continued digital and print media. Note that LE is planning on opening standalone stores in fiscal 2018 and announced a new partnership with The Weather Channel last November.

Per Pathmatics, LE spent $262,000 on digital display ads in 2017. This is down from the $761,000 spent during 2016. Sellers, while 2016’s spend was targeted to fashion and female-focused sites, 2017 spend shifted into coupon and deal sites. LE does not currently spend on national TV ads, according to iSpot.

Agency and maretch readers – Lands’ End handles traditional marketing in-house, while Dentsu Aegis’s 360i,  Atlanta is responsible for digital media buying and planning, search and mobile, according to Winmo. Be sure you are getting pitches together and engaging the team now.

LE has struggled to reach new and existing customers and could be looking for new partners and ideas to reach its target audience through refreshed initiatives.

Request a trial to access the decision maker info for Lands’ End here

 

Struggling Mattress Firm should be on your prospecting radar after Sicily Dickenson, CMO for only about a year, resigned (I think it went something like “It’s not you, it’s me”). The mattress retailer appears to be bouncing back quickly, already looking for her replacement while marketing VP Christy Sherrick runs the show. Also, six-year CEO Ken Murphy is stepping down. Effective March 1, he will be replaced by Steve Stagner, who has been with Mattress Firm for more than 20 years and is currently executive chairman and chairman of the board.

Major struggles plus changes at the C-suite are a big sign of marketing vendor roster changes to come within the following 18 months, especially when a CMO is involved. Now’s the time for agencies who can handle this account to get on their radar. Stay engaged with those who could be involved in the procurement process and refer you to the new CMO.

Competition down the line will include Spark Foundry (media) and Droga5 (creative), both of which recently won the account. So, agencies and martech readers with omnichannel retail client experience should begin reaching out to get on the company’s radar. Focus on strategies that will help Mattress Firm battle e-commerce upstarts such as Casper, Ghost Bed, Cocoon, Tuft & Needle and myriad others.

Sellers – Mattress Firm’s rising marketing budget includes TV, digital, outdoor, print, radio and social media. Before departing, Dickenson said her yearly marketing budget was $360 million, and spend has been going up since 2015. Spending should (but you never know with these guys) decrease as they shutter underperforming stores, but there’s still a ton of revenue to secure here. (Unless, according to this conspiracy, they have a money laundering operation going on).

National TV buys dominate the retailer’s ad budget. ISpot reports a 2017 national TV spend of $73.3 million, most of which went to female oriented networks and shows (see program targeting right). 2016’s spend was only $26.7 million.

Pathmatics reports a 2017 display spend of $14.8 million, almost double the $12.5 million allocated in 2016. Top ad destinations were youtube.com, my.xfinity.com, crackle.com, mysynchrony.com and answers.com.

Sellers with high engagement rates among female first-time homeowners and renters may have an edge securing revenue. Historically, their top advertising periods are Q3 and Q4.

Request a trial to access the decision maker info for Mattress Firm here

 

We set our eyes on Lavazza early last year after hiring Brad Armistead as CMO for North America, but recently learned that he left the company late last summer. Maybe Armistead thought it was a summer fling and Lavazza wanted more. Either way, this puts the premium Italian coffee producer on edge. We’re still checking to see if a new decision maker has been appointed, but in the meantime, stay top-of-mind with marketing lieutenants who can refer you to the new CMO once he or she starts.

Agencies and martech readers with beverage experience, especially those with expertise engaging upscale consumers, should have an advantage securing potential work. Competition may include WPP’s MediaCom, which was hired to handle media in 2016.

Sellers – their primary marketing channels include earned/owned media, digital, TV, social media, local marketing around locations and sponsorships (Golden Globes, Wimbledon, art galleries, etc.). Armistead said last year that his marketing budget was $6 million.

Foodie and entertainment sellers will likely have an advantage securing revenue, based on their recent digital ad targeting. Like most coffee brands, the bulk of their ad budget runs during Q3-Q4.

ISpot reports a 2017 national TV spend of $867,359, though the bulk of this came from their Wimbledon sponsorship.

Pathmatics reports that Lavazza’s display spend last year was $939,100, down $1.3 million from 2016. Top ad destinations include youtube.com, foodandwine.com, hollywoodreporter.com, people.com and eonline.com.

Request a trial to access the decision maker info for Lavazza here

 

Mercy Corps, a Portland, OR-based global humanitarian aid agency, is on the hunt for a new CMO after Dara Royer, who was in the position for just under four years, left in July. She’s chief communications officer at Syracuse University now, and it seems like she’s really happy (Mercy is doing great without her – they’re FINE everything is FINE). In the interim, Mercy veteran Graham Craft, VP of corporate and foundation partnerships since 2014, is leading the department as chief development and marketing officer to lead the department.

Agency and martech readers – since the nonprofit is looking for a new CMO, don’t expect immediate marketing roster changes. However, like we’ve said before, changes could be on the way 6-18 months after hiring a new CMO, so PR and/or digital agencies with nonprofit experience should start getting on Mercy’s radar now. Engage C-suite and lower level marketing personnel, who may be involved in the procurement process, or, at the very least, can refer you to the new decision maker.

Sellers – Mercy’s marketing presence includes a mix of digital, fundraising events, outdoor, print, social, cause marketing and email marketing. They also rely on the help of their partners, including Cisco, Google, Starbucks, TripAdvisor and the BIll & Melinda Gates Foundation.

Further, their ad spend went up considerably in 2017. Pathmatics reports that display alone last year was $890,600, up $640,200 from 2016. Top ad destinations were tripadvisor.com, cnn.com and slickdeals.net.  Last year’s budget was placed through Infectious Media (65%), directly (28%) and MediaMath (7%).

Like most nonprofits, Mercy runs most of its ads during Q4-Q1 to cash in on people who are in the giving spirit during the holidays (although, the new tax reform could change this). Otherwise, look for campaigns tied to humanitarian efforts to spur donations. For example, ads now centered around the ongoing Syrian refugee crisis.

Request a trial to access the decision maker info for Mercy Corps here

Updated: August 6, 2019

“Reach out,” they said…” It will be fun,” they said. Reaching out to a prospect can be fun if you are able to turn that outreach into a new business win. However, more than 40% of salespeople say prospecting is the most challenging part of the sales process.

Winning more business being typically comes down to two things: defining the right opportunity and asking the right questions to seamlessly close the deal.

How do you reach out to a prospect?

Sharon Napier, CEO of Partners + Napier, hosted a webinar with us and discussed this in detail. According to Sharon, it all begins with being able to identify the RIGHT opportunity, while also focusing on business you can actually win. Successful new business professionals are able to identify these opportunities by asking really good questions, allowing them to build relationships early on and uncover key insights to help them close the deal later.

According to our research, which you’ll see below, during a four month period 7% of people will exit their current company. So, if you’re already wasting too many hours hunting down qualified prospects, imagine repeating that awful cycle every four months.

Start off by asking engaging questions to understand your prospect’s fit and value. Questions like:

• • “What are you seeking to change about your current agency relationships?”
  • “Where do you want to see your brand/business in the next year? The next three years?”
  • “What is your anticipated budget for this initiative?”

This set of questions get prospects talking about their brand in a new and refreshing way. Not only does this give you a better idea of what they’re looking for, but it allows the prospect to really think about what hasn’t worked for them and why they may need something different.

Asking the Right Budget Questions

When it comes to budget, getting them to share this information is critical because it will allow you to provide realistic expectations from the start. This also allows you to understand why relationships may not have worked in the past – if a brand has a very low budget for an outsourced service, this could explain why the brand isn’t happy with work their current partner/vendor/agency is providing. Uncovering their needs will allow you to provide a tailored solution that is the right fit for your prospect’s need and budget, while highlighting the value you provide.

This leads to the next step, which is ask questions to better understand what your prospect wants. These include questions such as:

• • “What are the top three things you are looking for in a partner like us?”
  • “How would you want us to behave as a partner?”

Not only does this set up the prospects expectations of you from day one, but it also allows you to understand the needs of your prospect and establish if you are the right fit, and then, if you are, explicitly define your capabilities and your offerings. It might be tempting to cater your services based on all your prospects’ needs, but this is a slippery slope that may result in a client that you can’t satisfy long term. Make sure you clearly define your offerings to avoid this.

Finally, once you have established that this piece of business is right for both you and the prospect, it’s important to establish your odds of actually winning the business. You can do that by asking questions such as:

• • “What does the competitive field look like?”
  • “How many vendors/companies/agencies have you worked with before?”
  • “Does anything stand out as a disadvantage?”

These questions are not only crucial to understanding where you stand in the process, but it also allows you to address hesitations, clarify any concerns and understand the prospect’s criteria for selecting a product or partner. It’s also important to do research ahead of time. Use specific examples for asking why something you do may come across as a disadvantage to your prospect.

Why Is Asking the Right Questions Important to the Selling Process?

Aside from winning new business, why is asking the right questions important to the selling process? Well, it allows you to invest your time wisely in the right opportunities to increase your closing odds. By increasing your time with the RIGHT opportunities, ultimately decreases your time with the WRONG opportunities, allowing you to focus on the relationships that are worth investing in further. It also allows you to qualify prospects faster, uncover timely opportunities, and invest in building valuable relationships with the opportunities that may need more nurturing to exponentially increase your firm’s odds of closing more new business, faster.

Now that you know the right questions to ask, make sure you’re asking the right person. Find decision maker emails, direct dials and more with Winmo! Start your free trial today!