Research shows that executives at the highest-growing companies are strongly aligned on measuring marketing’s impact—making a powerful case for chief financial and marketing officers to join forces.
While the chief financial officer (CFO) and chief marketing officer (CMO) routinely look for growth opportunities, their role-based mandates may not always align. For instance, CFOs are often under pressure to translate various organisational initiatives into financial terms, with a view toward shorter-term markers (such as quarterly earnings reports). Similarly, CMOs want to tie the impact of their marketing initiatives to business outcomes, but there are challenges. For example, while brand value is undoubtably a long-term financial asset, it’s difficult to measure, much less in the short term.
However, Deloitte’s research shows that some CMOs and CFOs are finding ways to collaborate more effectively.1 Most promisingly, we found a strong correlation between C-suite alignment on marketing performance metrics and revenue growth: The highest-growing companies routinely indicated that C-suite leaders agree upon marketing metrics (79%) relatively more, compared to lower-growth companies (55%) (figure 1).
To achieve similar results as high-growth brands, CMOs and CFOs can start by identifying where the biggest disconnects happen—and then restructure processes to capture marketing value more easily. For example:
By building a shared understanding early, and working together, CFOs and CMOs can be better positioned to demonstrate the true value marketing delivers to the enterprise.
CFOs know finance transformation can be difficult and time-consuming. But they also know it’s an effective way to keep up with the changing needs of the business. Whether it’s technology disruption, business model innovation, or a new industry ecosystem, Deloitte helps finance organisations look ahead to what’s next while keeping the ship on a steady course.