CMOs vs. CFOs: How to improve the relationship between marketing and finance according to Google
A new study from Google warns that sometimes marketing and finance executives have very different strategic priorities
The relationship between Chief Marketing Officers (CMOs) and Chief Financial Officers (CFOs) is crucial for business growth. However, according to a new study by Google, NewtonX, and the consulting firm Project X Initiative, differences in their approaches can hinder effective and profitable collaboration.
The research, based on interviews with 250 senior executives in Europe, reveals that while both agree that marketing drives long-term growth, short-term financial pressures make it difficult to align objectives.
How can CMOs and CFOs plan for the long term together?
One of the key findings of the study is that marketing and finance executives have very different strategic priorities. While CMOs emphasize brand building and long-term positioning, CFOs prioritize immediate profitability and cost efficiency. This gap is reflected in their perception of collaboration: only 43% of marketing leaders believe there is a shared understanding of strategy, compared to 61% of financial leaders.
To improve this relationship, CMOs should involve CFOs early in key discussions about resource allocation and brand investments. Joint planning and regular reviews will help align their strategies and ensure a balanced approach between immediate results and sustained growth.
How to align marketing and financial KPIs?
Another major challenge is the disconnect between marketing metrics and key financial performance indicators (KPIs). The study reveals that 42% of CFOs find it challenging to measure the long-term impact of campaigns, while 32% of CMOs struggle to link marketing performance to financial outcomes.
To overcome this barrier, it is crucial to establish a common evaluation framework. CMOs can use metrics such as Customer Lifetime Value (CLV) and incremental revenue to demonstrate how their strategies contribute to financial goals. By doing so, they can justify marketing investments and strengthen collaboration with their financial counterparts.
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Why is a shared data and AI strategy key?
The quality and integration of data are also points of friction between marketing and finance. According to the study, one-third of CFOs face data integration issues, making it difficult to make decisions based on reliable information. This also impacts the ability to leverage artificial intelligence (AI) tools, which rely on high-quality data to provide accurate, real-time analysis.
To improve collaboration, CMOs can consolidate customer data into a shared platform and align data sets with agreed-upon KPIs. This will allow CFOs to connect financial performance with marketing results, optimizing resource allocation and maximizing return on investment (ROI).
How to build a relationship of trust between CMOs and CFOs?
Ultimately, effective collaboration between marketing and finance teams is based on a mutual understanding of their respective goals. To achieve this, it is essential to foster open communication and establish joint planning and evaluation processes. By bridging the gap between their priorities, CMOs and CFOs can unlock marketing’s true potential and drive sustainable business growth.
