Marketing Capabilities Excellence: Developing Your Marketing Capability Program & Academy

Marketing capabilities is a term commonly used but not always clearly understood, so let us begin by clarifying our definition.

Marketing capabilities refers to the combination of skills, knowledge, processes, tools, ways of working, and practices that a marketing team needs to deliver effective marketing and drive overall business performance.

In this context, a capability is how the team provides value to the business as a whole. It may be the combination of the skills, knowledge and effective execution by team members. For example, an effective email marketing strategy requires a range of skills - copywriting, design, segmentation, personalisation - and the tools to put it into practice.

These combined skills, knowledge, processes, and tech define what a marketing team and organization can achieve. So, an organization that is looking to personalize email marketing at scale, and do so effectively, needs to have the capabilities in terms of skills, knowledge, tech, and processes to put this into practice.

Marketing capabilities is often closely tied in with broader digital transformation initiatives. As companies look to integrate digital tech and ways of working across the business, it’s also crucial to consider the range of competencies required to drive this transformation forward.

Capabilities are also closely tied to enablement and operations functions, which often drive the selection, adoption and effective use of technology. These functions include marketing and sales enablement and operations.

Competencies refer to the individual ability - skills and knowledge and talent - required to carry out a task, while capabilities are the collection of competencies that organizations can draw upon, and which can impact business outcomes.

Much like marketing operations, the sales enablement function can help to drive sales transformation, enabling teams to gain a deeper understanding of buyer behavior, and enabling more effective engagement across digital channels through technology and training.

Key areas of focus for driving up capabilities include data management and quality, automation of key processes to free up salespeople, tech management, as well as the adoption of AI to improve analytics and insights, drive efficiency, and improve sales coaching.

Digital transformation is high on the agenda and sales enablement has emerged as a critical discipline, empowering go-to-market professionals with the right content, tools, resources, and knowledge they need to excel in an increasingly complex and competitive marketplace.

Winnie Palmer, EMEA Head of Marketing, Seismic

Growth marketing

Growth marketing is an omnichannel approach which prioritizes the customer experience. By using data and experimentation, growth marketing seeks to achieve and maintain sustainable growth. It aims to not only acquire customers but retain them by delivering tailored messaging and experiences across the entire buyer journey.

It’s important to distinguish growth marketing from growth hacking here. Growth marketing may borrow some features from hacking, such as data-driven thinking, rapid testing, experimentation, and exploring low-cost channels, but the focus is different.

Where ‘hacking’ focuses almost solely on acquisition, growth marketing cares about what happens afterwards. It places importance on the entire customer journey, from acquisition to retention and referral, using data, analytics, and customer insights to optimize every aspect of the marketing funnel.

It often involves cross-functional collaboration, with teams working closely together to achieve common growth goals and more self-sustaining growth through advocacy.

The popularity of this model stems from the need to drive sustainable growth, and to be efficient with budgets. In addition, marketers now have more data than ever, and more channels to play with.

Two well-known examples of companies which have not only achieved strong growth, but also managed to sustain this over many years, are HubSpot and Slack.

• HubSpot. A champion for the growth flywheel, HubSpot is fully invested in creating repeatable and sustainable growth. Using inbound techniques, feedback loops, providing highly-valuable tools and resources for free, HubSpot is not only able to acquire new users, delight and retain them, but turn them into advocates that refer their product within their network.
  
  This full funnel approach means HubSpot has enjoyed sustained revenue growth, with a reported $883.0 million in total revenue for 2020, a 31% increase year-over- year. As of 2023, HubSpot serves more than 194,000 customers in more than 120 countries.
  
  
• Slack. Slack experienced huge growth in its early days, which it has managed to sustain. After launching a 100% free beta product labelled ‘preview version’, they acquired 8,000 users in the first 24 hours. Two weeks later that was up to 15,000. By the time they launched publicly a year later, they had 285,000 Daily Active Users (DAUs), and hit 1M+ DAUs the next year.
  
  Among other things, their success was due to simple innovative thinking through the use of the ‘preview’ label, with the alternative ‘beta’ deemed to have negative connotations. They incorporated virality loops that encouraged users to invite colleagues for collaboration and feedback loops from their Product Qualified Leads (PQLs) for product improvements. They actually listened to and responded to every piece of feedback received from their PQLs and waited until they had trust from their users before introducing a paid upgrade.

Planning capability programs require a structured approach that involves assessment, planning, implementation, and continuous improvement.

Effective execution requires commitment from both the leadership and the marketing team, along with a willingness within the organization to adapt and evolve with the changing marketing landscape.

The diagram below shows the role of marketing capabilities in the context of overall business vision. The capabilities program may be undertaken as part of a digital transformation initiative, and will take a lead from the marketing strategy laid down by the CMO.

Marketing capabilities leaders should be closely aligned with the CMO’s vision and operating model. This enables gaps in capabilities to be identified accurately and programs to be designed around the marketing team’s training needs, targets, and ways of working.

The dark blue areas show the responsibilities of the CMO and marketing team, from setting strategy to overall leadership. The enablement provided by the marketing team ensures that capabilities are embedded and can be put into practice.

The responsibilities of marketing capabilities leaders are indicated by the light blue areas.

The marketing capability manager will work in coordination with, and in support of, the overall marketing function, with the academy focus aligned with the marketing team’s requirements.

It is these areas that we’ll focus on in the rest of this report. First by looking at the design and execution of a marketing capabilities program, then in more detail on academies.

Each layer would include various elements, contributing to the strength and stability of the overall strategic ‘structure’.

Using this method to visually represent the layers and elements of marketing capabilities offers a unique and insightful way to understand the complex interplay of skills, strategies, audits, and tools that drive marketing capability excellence. A roadmap to a successful program.

Each brick symbolizes a specific component of the marketing capabilities program, categorized into layers that reflect the core structure of an effective marketing organization.

The resulting structure provides a framework to understand how different aspects of marketing capabilities interact and contribute to the overall strength and adaptability of the program and overall strategy.

As you explore these layers, consider it a roadmap to building a robust marketing foundation, aligning each element with your organization’s specific goals and needs.

Many leading data-driven marketing organizations are nurturing their marketing capabilities through structured, strategic training programs, delivered through marketing academies.

To navigate the complexity of modern marketing, organizations need a robust and dynamic ecosystem of learning. This is where the concept of a marketing capability academy comes into play - a centralized, systematic approach to elevating the skills and competencies of marketing teams.

An advanced marketing capabilities function is pivotal in steering the academy towards impactful outcomes. This mature function strategically identifies and bridges skills gaps, aligning the academy’s curriculum and learning experiences with organizational goals and market trends. It fosters a dynamic, integrated learning environment, ensuring the academy’s offerings are not only comprehensive but also responsive to evolving marketing demands.

Essentially, the maturity of the function amplifies the academy’s effectiveness, embedding a culture of continuous learning and strategic development within the marketing team. A basic assessment of the marketing capabilities function can be viewed in the diagram below.

Create a steering committee for your capabilities academy

Design & develop

Build capability frameworks. To achieve your target capabilities, create comprehensive frameworks. These frameworks should include clear definitions, performance indicators, and ownership for each marketing competency. Such clarity fosters accountability and ensures everyone understands their role in developing the academy.

Invest in learning & development. Your team’s skills and knowledge are the building blocks of your capabilities. Develop learning and development plans for individuals and teams. Investing in skill-building not only enhances your marketing capabilities but also empowers your team members to grow professionally.

Train for processes & technology. To support your target marketing capabilities effectively, remember to train for enablement. The marketing capabilities leader needs to train teams to operate in the existing marketing framework.

This will help streamline workflows, eliminate bottlenecks, and leverage the latest martech solutions to drive efficiency and effectiveness.

Allocate resources wisely. Effective resource allocation is key to delivering a successful marketing academy. Distribute budget, personnel, and time strategically across various academy activities. Ensure that every resource contributes towards the delivery of enhanced marketing capabilities.

In an industry where change is the only constant, LXPs enable marketers to access the latest trends and strategies through various formats and promote social learning and collaboration.

The agility and flexibility allowed by LXPs allows for quick adaptation to new marketing skills, fostering a continuous learning culture.

Peer-to-peer learning

Peer-to-peer learning can offer a range of valuable benefits. It can foster a collaborative environment where marketers share real-world insights, diverse perspectives, and practical experience.

This approach facilitates the exchange of industry-specific knowledge, innovative strategies, and best practices among peers. Marketers can learn from each other’s successes and challenges, enhancing their problem-solving skills and adaptability.

Peer-to-peer learning also promotes a sense of community, fostering a collaborative culture within the marketing team. It accelerates skill development by tapping into collective expertise, making the training experience more engaging, relevant, and conducive to practical application.

Organizations can facilitate peer-to-peer learning in several ways: 

• Internal collaboration. Establish structured channels for collaboration, encourage regular team meetings, knowledge-sharing sessions, and collaborative projects.

• External connections. Networking events, mentorships programs, guest speakers, and online industry communities can enrich the learning experience, bringing in a wider range of expertise

• Learning intranet / LXP. Create online forums and collaborative platforms that enable marketers to share articles, resources, and industry updates.

Agile and continuous learning

Agile and continuous learning contribute to a culture of experimentation, ensuring that individuals and organizations can remain relevant and competitive.

With continuous upskilling and awareness of emerging trends, organizations can foster innovation and adaptability. Employees become more versatile, and capable of taking on diverse tasks, leading to increased job satisfaction and retention.

There are several factors to consider here:

PESTLE

PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis provides a comprehensive framework for understanding and responding to external factors that can impact marketing strategies and operations and helps marketers assess the macro forces influencing their industry.

In the last few years, we’ve seen the introduction of key legislation around the world which has had a direct impact on marketing. Data privacy laws such as the EU’s GDPR, and CCPA in the US have forced marketers to change the way they gain consumer consent for marketing purposes, handle data securely, and require a new range of skills for marketing teams.

Monitor customer insights

Integrating this practice into continuous marketing learning helps marketers to remain agile, customer-centric, and competitive in an evolving marketplace. It empowers them to make data-driven decisions, deliver personalized experiences, and adapt to changing customer behavior.

For example, changes in consumer behavior observed during the pandemic, such as increased adoption of digital channels and greater content consumption, forced marketers to place greater emphasis on digital experiences. When customer behavior reverted back towards pre-pandemic levels, marketers needed to rethink again.

Review marketing performance

Regularly assessing marketing performance provides valuable data on what works and what doesn’t. It allows teams to identify areas for improvement, both in terms of performance and opportunities for further upskilling. It helps marketers to continuously evaluate and improve.

Monitoring channel KPIs such as email open and click rates can enable marketing teams to assess the underlying competencies required to improve performance, and subsequent training needs. For example, teams may need upskilling in areas such as copywriting, email design, and A/B testing.

Tracking tech trends

Tech moves fast, and new forms of technology offer opportunities for marketers to improve performance and gain an advantage over competitors.

In the last 25 years, marketers have witnessed new tech and services which have completely altered the practice of marketing, including:

• Search. The launch of Google in 1998 and its subsequent dominance of online searches has driven the growth of SEO as an essential inbound marketing channel.

• Social media. Facebook launched in 2004, and Twitter in 2006. These may not have been the first social channels, but their widespread adoption, and the subsequent launch of rival social platforms has meant that social media is now a key part of marketing strategy.

• Mobile and apps. The first iPhone went on sale in 2007, and ushered in a whole new channel for marketers, one which cannot be ignored when creating content and campaigns.

• Video. YouTube’s launch in 2005, and the popularity of other video platforms such as TikTok and Instagram created huge opportunities for marketers, and has driven the need for skills around video marketing.

• AI. AI technology has been around for some time, but the launch of ChatGPT in 2022 has helped to turbo charge the adoption of AI. As with Google, Facebook, YouTube and the iPhone, AI will drive the need for marketers to adapt strategies and adopt new skills.

As tech evolves, so does marketing. The rise of Google drives marketers to adopt content marketing techniques, while YouTube’s success has meant marketers have needed to add video production to their skillset.

When changes to Google’s algorithm, Instagram’s rules, or new iPhone features can directly affect strategy, and demand the development of new skills, it’s vital marketers to closely track trends in technology.

Measurability

Measuring the impact of the marketing capability academy is essential to gauge the effectiveness of training, allowing organizations to make informed decisions, gain buy- in for further investment, and establish a culture of continuous improvement through assessment and training.

Many of the marketing capabilities professionals we interviewed during research for this report were able to measure adoption and engagement, the impact on individuals, and some KPIs. However, connecting training to business impact remains a key challenge for many organizations.

There are four main maturity levels of measurement for marketing capability training:

1. Learning adoption

The most basic level of measurement includes measures such as adoption rates among employees, which enables organizations to see how many people have completed training.

Surveys can be used before and after training to gauge employee satisfaction with training content and methods, and to assess the impact of training. NPS scores can assess employees’ experience of training sessions.

Proficiency tests can also be used to measure the improvement in specific competencies.

Learning platforms can also gather data in areas such as frequency of use, and engagement with content.

2. Individual career development impact

At an individual level, self-assessment can be used on an ongoing basis, which allows employees to rate their competencies in various areas. Qualitative interviews with learners can explore the role that training has played in their professional growth.

Training impact can also be linked to existing KPIs so that improvements in areas such as lead generation, conversion rates, and customer engagement can be at least partly attributed to training.

Using feedback from peers, managers, and subsequent career progress, on-the-job performance can be assessed to see how skills learned have been put into practice.

Retention of key staff is another important measure. Higher retention rates among trained employees may indicate career development satisfaction.

3. Marketing ROI & KPIs

By establishing a baseline before training, organizations will have a starting point for comparison, so that marketing ROI, as well as individual and team KPIs can be assessed over time.

KPIs such as acquisition costs, customer lifetime value, lead quality, and conversion rates can be assessed after training to gauge the impact of training on these measures.

Through a systematic evaluation of marketing ROI and KPIs before and after training, organizations can quantify the impact of their training programs on marketing performance, enabling them to demonstrate the value of the investment, and helping to improve future training initiatives.

4. Business impact

Tying training directly to business outcomes is challenging, and many organizations have yet to master this.

One important step is to align training objectives with business goals, as this increases the likelihood of favorable and measurable outcomes.

In some cases, where training leads to the addition of specific marketing capabilities to a team, such as the ability to use a key category of marketing technology, or specific channel knowledge, then it can be possible to tie it directly to results.

Not all training outcomes are easily measured, and often one of the most valuable impacts of training is to embed a desire to learn and improve, which can spread around the company.

 7. Conclusion