CMO Insights: How Marketing Can Take the Lead

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As this is my first blog post of the year, I’d like to focus your attention on the power of positivity.  Don’t gag! Seriously, the first step to getting something big (or little) accomplished is believing that you can.  Conversely, if you harbor negative thoughts about a particular challenge chances are you will outright fail and then fall back on the easy out, “I knew that wasn’t going to work.”  So, let’s be positive people.  Positive about setting a few really big goals and positively committed to achieving them.

Which is a perfect segue into my conversation with Elisabeth Charles, the CMO of Athleta.  I’ve known Elisabeth for at least 4 years having met her at a CMO Club Summit. At that time, she was CMO at Petco and part of cabal of indomitable San Diego-based women CMOs that rivaled any group in the country for smarts and talent but were distinguished more by their gregarious positivity.  Amazingly, within a few months of each other, each of these ladies found themselves looking for their next opportunity, not with a “woe is me, how could this happen?” attitude but instead excited about facing new challenges and stretching their wings.

Since then, all have gotten one step closer to their dream jobs, especially Elisabeth. As CMO of Athleta, which is based in Northern California, Elisabeth can rarely be seen not wearing her new brand.  This is not an affectation.  Elisabeth has always been athletic and committed.  Wearing Athleta serves multiple purposes. It shows she’s proud of her employer.  It helps her experience the brand and be better prepared to talk with the designers especially since she gets a lot of feedback from other women about her attire.  And perhaps most importantly it sets an example for her team–don’t just market the brand, be the brand.  That’s the kind of positive message that made Elisabeth an easy choice for the CMO Club‘s Leadership Award.  (And of course, I’m quite positive you’ll enjoy our interview below.)

Drew: How would you describe / or how have others described your leadership style?

I am a leader who supports and drives change. It’s important to not be afraid to ask tough questions and be willing to challenge the status quo in order to move companies forward.  In order to do this, I try to be extremely diplomatic, collaborative and respectful of the past as I look towards the future.  I have very high standards and am extremely results driven, but also seen as compassionate and fair.

Drew: Do you have any role models that you’ve admired over the years and if so, what did you pick up from him/her?  
I admire visionaries who are purpose driven and able to build a vibrant business with strong company culture, while also doing good in the world.  Some of my role models in this regard are Howard Schultz, John Mackey, Kip Tindell and most recently Jessica Alba.

Drew: Can you talk about some of the actions you took as a leader in the last couple of years that were particularly challenging?  
Leading change at brands is always challenging.  You are asking employees to take a hard look at their business and acknowledge that they have to change what they’ve been doing to redefine where they are going.  It’s especially hard to do this with successful companies who may not fully accept the need to change.  But as they say, “change or die.”

Drew: How important is your peer to peer network to your on-going success?  What are the biggest benefits of having a peer network?
My peer to peer network is invaluable to my on-going success.  I rely on my peers, especially at The CMO Club, to help share best practices as well as challenges they are facing and how they are addressing them.  It’s great to tap into approaches that you would not have thought of on your own, as well as gain confidence that you can solve difficult issues with peer advice.

Drew: What’s the best advice you’ve been given to guide personal / career success?
Do what you love and work where you are rewarded for your natural strengths. Many of us chase the ultimate job or that next promotion or higher salary without really exploring how strong a fit the company’s culture is with our own values.  Don’t stay in a role where you are undervalued or unhappy – life is too short!

Drew: Looking ahead to 2016, what is the single biggest challenge that you¹d like to overcome?
The biggest challenge I’d like to overcome is driving greater brand differentiation for Athleta in a very crowded and competitive atleisure space.  But I love challenges, so I am looking forward to an exciting year of change and taking some risks.

How to Bring CSR and Social Media Together for Good

I had the pleasure of meeting Elisabeth Charles at The CMO Club Summit in LA this October.  As CMO of Petco she has orchestrated a number of innovative marketing programs to actively engage pet owners.  Learning that Elisabeth was on the board of HABRI, the Human-Animal Bond Research Initiative, I thought she would be a great person to discuss how companies can do well be doing good and extended these activities through social media.  Turns out, this time, I was barking up the right tree.

DN: Do you think being recognized as a good corporate citizen is increasingly important to a brand like yours? Why?
Good corporate citizenship is very important to Petco – it’s built into the fabric of our entire business. Everything we do is guided by our vision for Healthier Pets.  Happier People.  Better World.

We established our non-profit organization, the Petco Foundation, in 1999 and have since raised more than $80 million in support of some 7,500 local animal welfare partners across the country. Each year, we also help save the lives of more than 250,000 animals through adoption events in our stores.  Through the Petco Foundation, we also support spay and neuter efforts, animal-assisted therapy programs and humane education. Working hand-in-hand with the Foundation, our Petco and Unleashed by Petco stores serve as the first and largest national pet food bank in the country. Designated collection bins located in each of our stores allow customers to donate pet food that directly benefits pet parents in need in their local community.

As a company, we’re also increasingly adopting more sustainable business practices. We strongly believe that if it’s good for the planet, it’s good for pets and people, too.  Earlier this year, Petco became one of the only non-grocery store retailers to be recognized by the U.S. Environmental Protection Agency as an Energy Star Leader for reducing our energy consumption by more than 10 percent across our entire business. Additionally, our Planet Petco line of products offers pet parents the ability to choose high-quality, more sustainable products that utilize recycled and reclaimed materials and renewable resources. These are just a few examples of what we do as a company today. It’s an ongoing process and we’re always striving to do more in this important area of corporate social responsibility.

DN: Is there a fine line between “doing good” as a company and talking about it so much that is seems insincere?
You absolutely have to be sincere and authentic in what you are doing and saying, and you must also be fully committed, rather than doing something only half way. A company’s goodwill efforts should be far more than just a marketing campaign. For Petco, all of our “do-gooding” is centered around what we believe is the right thing to do. The programs we create and support reflect our company’s values and the passion our associates have for people and pets.

DN: Is there a particular Petco goodwill/charitable program that you are particularly proud of?
There are many charitable programs that we get involved in, so it is hard to name just one.  A newer program that really took off this year was our National Pet Food Bank program and our National Pet Food Drive. Just in the program’s second year, this year’s drive ran for two weeks (late October-mid November) in all of our Petco and Unleashed by Petco stores. During the national drive, we encourage customers to pick up an extra bag or can of pet food during their shopping trip, or bring unopened food from home, and donate it via the collection bins in our stores. Also for the second year, Hill’s Science Diet supported our efforts by matching 100,000 pounds of donated food during the drive. In just two weeks, we collected nearly 350,000 pounds of pet food – a more than 60 percent increase over last year – to help financially strapped pet parents feed their pets during the holiday season. The Petco Foundation Pet Food Bank is a year-round program, but it’s very exciting to see how generous our customers are during the national drive leading into the holiday season.

DN: I noticed you personally are working with an organization called HABRI.  Can you talk what and why you are doing this?
Petco is excited and proud to be a founding sponsor of HABRI, the Human-Animal Bond Research Initiative. Other founding sponsors are the American Pet Products Association and Pfizer Animal Health.  We got involved because we passionately believe that pets enrich our lives and we want to help generate formal, widespread scientific recognition of the positive role pets play in our lives.  HABRI’s mission is to support research, education and other charitable activities that validate the positive impact the human-animal bond can have on the integrated health of families and communities, by consolidating, organizing and sharing existing scientific research into the human-animal bond in partnership with Purdue University.

DN: Goodwill activities seem to translate well into social media.  Have you found this to be case and/or how do you see good will programs evolving next year?
Absolutely.  We actively use social media (especially Facebook) to engage our fan base, which is now nearing 600,000 likes, to support our charitable causes.  In general, we find that goodwill posts and campaigns featuring authentic stories perform very well in social media.  Positive campaigns with an altruistic call to action perform remarkably better (up to 100 percent more feedback) in user interaction on social properties than promotional campaigns or transactional posts. Human interest stories and, of course, anything to do with pets, are the second most shared and clicked upon posts/tweets/videos.

In October, we hosted our first ever National Adoption Reunion Weekend. Fans online were asked to submit stories about how their adopted pets had changed their lives and were given the opportunity to raise funds for the Petco Foundation through Foursquare check-ins. The social portion of the campaign performed very well, driving the most organic Twitter growth and retweets for a campaign we  have seen to date, the most views on a non-commercial video on YouTube, more than 57,000 photos uploaded on Flickr and more than 3,000 likes across three blog posts. Needless to say, we were very pleased with the results.

DN: I’m a big fan of Pedigree’s “dogs rule” campaign and their pet adoption program.  Have you partnered on “good will” programs with any of the brands that you carry and if so, what are the advantages of this approach?
Every month, we host a National Adoption Weekend when adoption events are held in all of our stores across the country. Each monthly weekend event is sponsored by one of our vendor partners.  We’ve also joined forces with several of our vendor partners for in-store fundraisers to support mutual charitable interests, including Blue Buffalo for Pet Cancer Awareness and Natural Balance for National Guide Dog Month.   I think programs like this are a huge win-win when we are able to work together to help improve the lives of pets and pet parents, and when we all know the funds raised are going to important work that we mutually care about.