A New CFO–CMO Collaboration Paradigm
Listen to this article

The current macroeconomic scenario requires thoughtful decision making and accurate measures on the return of each initiative. The focus on financial-driven metrics has been particularly challenging for marketing functions as they try to overcome the misconception of being a cost center and prove their multiplier role for the business.

Three groups of corporate barriers hinder marketing’s ability to establish itself as a source of value creation: Data collection and integration complexity; lack of integrated and shared business KPIs; and existing organizational structure and governance models.

The new CMO and CFO collaboration paradigm unleashes marketing’s potential. To make the most of the collaboration, the two functions must adopt a customer-centric approach and identify clients’ current and potential value—both in the short- and long-term—by embracing the notion of customer lifetime value (CLV) and using advanced marketing technology tools.

The new paradigm can overcome corporate barriers with the following solutions:

  • Data collection and integration: gathering first-party data; integrating different sources of information within a customer data platform; and using machine learning algorithms
  • Integrated and shared business KPIs: identifying and monitoring performance marketing KPIs (business-driven, customer centric) in real time with a marketing and finance dashboard; measuring “intangible” brand marketing campaigns both with simple models such as NPS and awareness as well as more complex ones like multi-touch attributuion and marketing mix modelling
  • Organizational structure/governance: embedding the relationship between CFO and CMO to allow for cross-fertilization of competencies between functions; and developing more sophisticated budgeting tools such as outcome-based budgeting for performance marketing and financial planning for branding initiatives

Ready to talk?

We work with ambitious leaders who want to define the future, not hide from it. Together, we achieve extraordinary outcomes.