Build financial acumen in marketing, agree on metrics that matter, determine customer value and better manage marketing spend.
Want to experience greater return on marketing investments and grow more revenue? Marketers need to think beyond their creative side. Strong financial and analytical capabilities equip today's marketing organization to create winning solutions that find and keep customers while also staying within tight budgets and proving the value of marketing's role. Partnership with the finance organization for business alignment and the C-suite's buy-in on campaigns has never been more important.
Working together with mutual respect, chief marketing officers (CMOs) and chief finance officers (CFOs) can ensure that decisions related to marketing spend are data-driven and reflect both good fiscal management practices and the unique needs of a function that must be responsive to changing customer and market demands.
Read our four articles below to learn more. Each will help you understand marketing investment management challenges, advantages in collaboration, and steps to get started on the journey toward a stronger relationship between marketing and finance.
In today’s fast-changing, highly competitive environment, marketers need to know more than how to create and measure great customer experiences. They need to know how to manage their current and future spending in a way that aligns with the organization’s broader financial goals. Marketers need to better understand the basics of a balance sheet, how to create a budget, manage accounts, and determine relevant KPIs.
At the same time, finance needs to train some of its own people to really understand the nuances and the language of marketing and how marketing initiatives relate back to financial performance. The goal is mutual understanding and appreciation of roles and responsibilities between marketing and finance, which, in turn, can create a stronger business and brand overall.
To establish marketing metrics that can truly help drive an organization’s financial and business performance forward, CMOs and CFOs must work together. A coordinated approach based on a mutual appreciation of each other’s contributions, a balanced set of KPIs, and a commitment to continuous improvement are essential for ensuring that a company’s marketing initiatives are well positioned to create long-lasting value.
Given customer demand for more personalized and high-value experiences, companies need to understand where they should focus their attention to get the most value from each customer. By working together to develop a robust and well-supported calculation for measuring and predicting customer lifetime value (CLTV), CMOs and CFOs will be in a better position to make decisions on the best places to invest to build profitable, long-lasting consumer relationships.
In today’s business world, marketing functions need to get the most from every dollar they spend. By working collaboratively, CFOs and CMOs can ensure they are managing marketing investments in ways that are more efficient without compromising on the need to be agile, creative, and responsive. This will only lead to a more successful company overall.
To learn more about these topics and how KPMG can help your business develop performance-driven marketing solutions, contact Jason Galloway.