What your CFO thinks of your marketing pitch

 This week, we sat down with our own CFO, Brent Longval, to find out how finance really evaluates marketing. The gap between these two functions is real, but it's mostly a language problem, and today, we discuss how to close it.

 

Only 2.6% of corporate board directors have marketing experience.  

Research shows that S&P 1500 boards are dominated by finance and legal experts, while marketing voices are nearly absent. However, firms that include directors with marketing experience see significantly higher revenue growth compared to those focused solely on cost control.  

 

What finance actually needs from marketing.

 

Why is there tension between marketing and finance in the first place?

It mostly comes down to time. Finance closes the books every month. Marketing is building something that takes 12 to 24 months to show up in the numbers. Neither side is wrong. They're just optimizing for different time frames.

What is a CFO actually looking at each month?

For a growth-centered business, it’s all about how many new deals are in the pipeline, whether revenue is tracking according to plan, and whether the business is profitable. If your marketing pitch doesn't connect to at least one of those, you're speaking a foreign language.

Brand investment is a tough pitch. How do you make it land?

Be honest about timelines. Sales activation captures today's demand, but most potential customers aren't buying yet. Brand is how you stay on their radar until they are. Fund only sales, and you're invisible to the majority. Fund brand, and you're the only name they think of when it matters.

What should marketers stop saying to finance?

"It's hard to measure." Walk in with a measurement plan instead. Showing you're willing to be held accountable earns more trust than hedging on whether the results will show up.

 

Listen in on our discussion.

"When and How Board Members with Marketing Experience Facilitate Firm Growth" 

This peer-reviewed study analyzed over 64,000 board member biographies from S&P 1500 companies and found clear evidence that marketing experience at the board level drives revenue growth.

Read the article.

 

Great marketers speak finance. Great CFOs speak marketing. 

"You will only be great at marketing if you understand finance and marketing's effects on financial outcomes. Conversely, you will only be great at finance if you understand marketing."  

—   David W. Stewart, marketing scholar 

 

This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts.