Deja Vu in Marketing: Bridging the Gap between CFOs and CMOs

By Ed Davis
Director, International Client Relationships, BBN Ltd

In recent years, a fascinating trend has emerged in the corporate world. CFOs exhibit greater confidence in marketing’s ability to generate revenue than CMOs. A recent survey highlights this disparity, with CFOs expressing 30% more confidence in marketing’s revenue-generating potential than their marketing counterparts. This revelation is not just surprising; it’s a wake-up call for marketing leaders across industries.

The Growing Confidence Gap

It’s perplexing to see this confidence gap widen over the years. As a marketing professional who has observed this trend since 2005, I find it disheartening. Why are CFOs more optimistic about marketing’s impact than the very leaders within the marketing department? The answer lies in the perception and strategic positioning of marketing within organisations.

Marketing leaders often struggle to assert their influence on the organisation’s broader strategy. This struggle is exacerbated by a lack of courage in managing leadership, organisational dynamics, agency relationships, and technology. The executive team, too, has its share of misconceptions. Many in the C-Suite erroneously view marketing as a switch to be flipped to generate immediate sales, similar to the sales team’s quarterly targets. This misunderstanding fuels unrealistic expectations and undermines marketing’s true value.

Reasserting Marketing’s Influence

To address this issue, marketing leaders must evolve. They must transition from being seen merely as creative minds to strategic thinkers—adept economists and strategists. Yes, it’s daunting for many who ventured into marketing to escape the quantitative rigour of their education, but it’s necessary.

Unlike sales, which often operate on a quarterly or annual cycle, marketing operates on a timeline measured in years. This fundamental difference should be communicated effectively to senior management. Marketing leaders must illustrate how long-term strategies and brand-building efforts drive sustainable revenue growth. By aligning marketing objectives with business goals, they can secure a seat at the senior management table.

Speaking the Language of Business

One critical step in reasserting marketing’s influence is to speak the language of business. Marketing leaders should avoid jargon and instead provide investment-like analyses of their programs. Terms like “attributes” and “conversions” must be translated into metrics and KPIs that the C-Suite can easily grasp and rally behind.

Marketing leaders can build credibility by showcasing the impact of marketing investments in concrete terms. Even if the results aren’t always quantifiable to the exact percentage, demonstrating a clear link between marketing activities and business outcomes will command respect and influence.

Embracing the Role of Revenue Generators

Ultimately, marketing leaders must embrace their role as revenue generators. This involves guiding their organisations towards long-term success through strategic brand management and innovative marketing practices. It’s about moving beyond traditional roles and becoming integral drivers of business growth.

Marketing should not be confined to a support function; it should be a core component of the company’s growth strategy. By forging strong alliances within the organisation and advocating for its strategic importance, leaders can bridge the confidence gap between CFOs and CMOs.

Conclusion

The confidence gap between CFOs and CMOs in marketing’s revenue-generating potential is a call to action for marketing leaders. It’s time to evolve, embrace strategic roles, and communicate the true value of marketing in business terms. By doing so, marketing leaders can secure their influence within the organisation and drive sustainable success in an ever-evolving marketplace.

Note: This post is based on the editorial initially published in B2B Marketing’s 2024 Agency Benchmarking Report (May 2024). If you want to review the B2B agency league tables, and other editorials, please download the PDF by clicking on the button below.