“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”
Those words are attributed to John Wanamaker, a US department store merchant who exemplified the feelings of many a CFO.
Finance and marketing relations within a business can often be fractious.
CFOs are focused on the brass tacks, how much money in dollars and cents the various branches of a business can bring in, and CMOs are generally seeking to loosen the purse strings of their financial counterparts.
And whenever there is an economic slump or a business is experiencing financial difficulties, it’s often the marketing budgets that are cut the quickest.
So how do you increase the chances of positive finance and marketing relations?
“Any modern marketing guy needs to have a good relationship with his CFO and his finance team,” says Mark Hardy, CMO of group messaging platform Viber.
He continues: “It’s not just about the fact that they’re [CFOs] paying the dollars, if there’s a good working relationship where the two of you understand the vision and the business objective, what are we trying to do? Where are we spending the dollars? What worked, what didn’t?
Having everyone on the same page benefits both the marketing and finance departments and the business as a whole.
CFOs are chiefly concerned with ROI, and having a good relationship with the CMO can help the whole business understand: “How is the money being spent and could it have been spent better?”
To learn more about the importance of maintaining harmonious finance and marketing relations, watch the video clip from the interview with Mark Hardy, above.