The relationship between marketing and finance can at first seem adversarial: marketing spends the money that finance budgets. Financial KPIs are often misaligned with those of marketing where quantifying the value of marketing efforts resists the strict formulations that business demands. A recent study by Forrester even goes as far as declaring that a “fundamental disconnect” exists between the 2 departments with over 60% of marketing and finance professionals reporting that the other team does not understand their goals and objectives .
Your CFO and CMO really should be in a marriage of equals, or BFF at least. Alignment between marketing and finance teams ensures not just a greater understanding of each other’s role and the value it holds but is an investment towards no more missed marketing opportunities. A collaborative marketing and finance approach identifies marketing as a growth hub that drives business efficiency and growth in the long-term and protects its value to the entire C-suite.
Below, Think Beyond explores why CFO and CMO are a match made in business heaven and outlines how data technology can help align marketing and finance forces in your business.
If you’d like to speak with one of our qualified marketeers direct, call Think Beyond on 01625 682110 for an informal discussion.
CFO and CMO – a match made in business heaven
Marketing and financial investments really are remarkably similar. Just as pensions and savings accrue interest over time, marketing requires patience and time to mature. Lead nurturing, quality scores, search engine optimisation do not occur overnight.
However, the business world is often lacking in patience and companies can be quick to cut marketing budget when results do not immediately materialise or fall outside of wider business KPIs. The issue here spirals: marketing is not only undervalued but underfunded; lost traction equates to lost revenue both now and in the future.
It is here that a good CFO can help support the CMO. A good CFO understands that cutting marketing budgets damages investment and leads to lost opportunities. A good CFO can become marketing’s biggest advocate and help senior management to understand the long-term strategic value of marketing and why metrics such as newsletter sign-up and nurture programmes matter.
By working together, the CFO and CMO can create a mutual cycle of growth – just as finance feeds marketing, marketing feeds business growth – finance’s aim.
A data formula for integrating marketing and finance
Aligning marketing and finance teams must start from a culture of mutual understanding. As Forrester’s study highlights, one of the key barriers to an effective relationship between the departments is a lack of shared metrics.
Leveraging the latest data analytic technology and implementing measurement tools can bridge this gap and actively nurture the relationship between marketing and finance. The multi-channel, multi-device nature of customer journeys creates complex attribution paths that demand accurate analysis if business results are to align with marketing tracking data. Technology can provide the analysis and integration that is required to create transparency, collaboration and efficiency across not just marketing and finance but the entire company.
Managing change and providing business with solutions form part and parcel of our business consultancy service at Think Beyond. Our qualified marketeers work with senior management teams on all aspects of business strategy and can support your business with your marketing plan, data analytics, technology and automation integrations right through to providing you with board level Marketing Director as a Service (MDaaS). We want to help take your business further.
To find out how Think Beyond could strategically partner with your business, call 01625 682110.
Or, complete an online contact form and a member of our friendly team will be in touch.