When CMOs and CFOs Align Their KPIs, They Deliver More Value
CMOs are under intense pressure to increase revenue and improve efficiency. The problem is that many of their traditional KPIs–reach, impressions, engagement rates, brand lift studies–are useful for marketers but don’t connect directly to business results. CFOs, CEOs, and the board care about profit, forecasting stability, and capital allocation. They want to know: If we spend an additional $2 million on marketing next quarter, how much incremental revenue can we expect? And how confident are we in that number? When CMOs can’t answer that question clearly, it leads to misaligned expectations and under-leveraged marketing budgets. But when organizations align marketing and finance around measurement, they can cut waste and do a better job of investing in what actually works.
CMOs are under intense pressure to increase revenue and improve efficiency. The problem is that many of their traditional KPIs–reach, impressions, engagement rates, brand lift studies–are useful for marketers but don’t connect directly to business results. CFOs, CEOs, and the board care about profit, forecasting stability, and capital allocation. They want to know: If we spend an additional $2 million on marketing next quarter, how much incremental revenue can we expect? And how confident are we in that number? When CMOs can’t answer that question clearly, it leads to misaligned expectations and under-leveraged marketing budgets. But when organizations align marketing and finance around measurement, they can cut waste and do a better job of investing in what actually works.
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