Transforming Marketing Organizations for Growth: A Blueprint from Northwestern Mutual
In our vibrant and fast-paced city of Chicago, the way businesses structure their marketing teams is becoming a hot topic. As companies strive to adapt to a more digital, customer-centric, and agile environment, the age-old question arises: what’s the best way to organize a marketing team that truly boosts revenue?
It turns out, there’s no one-size-fits-all answer. Just like snowflakes, **marketing organizations** are unique, shaped by various factors including their specific business models, growth strategies, and the channels through which they reach their customers. Recent academic research even highlights ten key design considerations when building a marketing organization that performs well.
Understanding theChallenges
Frank Findley, Executive Director of the Marketing Accountability Standards Board (MASB), notes that many companies are struggling to define how marketing adds value. This has led some organizations to deprioritize marketing initiatives, causing a ripple effect on revenue growth. He emphasizes that various obstacles—including fragmented ownership of growth resources and complex performance measurements—can hinder the marketing function’s ability to foster growth.
Moreover, misalignment among executive roles complicates things further. If a Chief Marketing Officer (CMO) is meant to drive growth but only has control over advertising, without any say in innovation or corporate strategy, it can be nearly impossible for them to deliver the desired results. This is a point well articulated by Professor Kimberly Whitler, who examines the intricate relationships in high-level marketing roles.
Design Principles for Growth
On a positive note, Malcolm Teo, the CMO of Northwestern Mutual, has taken on these challenges head-on. During her first 18 months on the job, she has implemented a comprehensive structural transformation aimed at unlocking new value and driving growth for the nearly 170-year-old company.
According to Teo, her vision for marketing begins with value creation. “It’s crucial for our strategy to align with the business,” she explains. For Northwestern Mutual, a vertically integrated financial services firm, the marketing strategy serves multiple purposes: building brand awareness, assisting financial advisors, and generating demand for its services—all while creating lasting relationships with consumers.
The Key to Teo’s Success
Lynn Teo’s success stems from designing a custom marketing organization that harnesses existing strengths within her team, focusing on the intersections that drive value. Her organization is positioned to navigate key tensions and trade-offs while delivering exceptional customer experiences. She considers teamwork vital and states that a well-connected team can significantly improve customer lifetime value and business outcomes.
Bridging Gaps and Promoting Collaboration
One of the remarkable features of the organization Teo has built is the coordination among various functions within marketing. For example, aligning brand and product marketing with client marketing has allowed for deeper customer relationships while driving the sales process. Teo notes, “We need to utilize our paid, owned, earned, and shared media in a highly coordinated manner to ensure we achieve a full-funnel strategy.”
This not only maximizes their marketing efforts but also ensures they are all moving towards the same goal. For instance, the insights derived from both consumer behavior and advisor feedback help tailor their future campaigns effectively. This includes addressing the unique financial needs of various demographics, from millennials to retirees.
Measurement and Adaptability
Teo believes in embracing the imperfections of available data rather than allowing it to impede progress. “While we seek full-funnel analytics and complete attribution, we cannot let the lack of perfect data stall us,” she explains. Instead, they work with existing information to track leading indicators and refine their strategies.
This adaptable mindset has proven successful; in 2024, Teo’s team reported a staggering 40% increase in lead volumes and a rise in delivered plans and client sales. Teo’s innovative approach to transforming marketing from a back-office function into a growth engine is indeed proving effective.
The Future of Marketing
As marketing continues to evolve, the case of Northwestern Mutual serves not only as a model for effective organization but as an encouraging message for businesses everywhere. It underscores the importance of teamwork, value creation, and adaptability in achieving growth in today’s complex marketplace.
On November 7th at the Digital Marketing in Financial Services Summit in New York City, Lynn Teo will share her experience further, providing valuable insights into transforming marketing structures to drive superior customer experiences and growth.
As we navigate this changing marketing landscape together, it’s clear that learning, adapting, and working collaboratively will become the cornerstones for future success.
