Unlocking the Power of Synergy: How to Foster Truly Collaborative CMO-CFO Relationships

According to a recent study conducted by the CMO Council and KPMG, only 22% of Chief Marketing Officers (CMOs) consider their partnership with Chief Financial Officers (CFOs) to be truly collaborative. The research also revealed that about 26% of marketing leaders view their relationship with finance as "indifferent" and 7% perceive it as "hesitant". The report, titled 'Marketing & finance: Fuelling innovation or falling behind?', explores the barriers to collaboration between marketing and finance, while also emphasizing the advantages of effective collaboration.

The report highlights that joint ownership of customer data is crucial for effective decision-making in marketing, emphasizing that only 18% of marketing leaders strongly believe that both finance and marketing have equal access to customer data and transactional information. It emphasizes that a lack of collaboration between the two departments hampers a brand's ability to respond quickly to disruptions.

In order to demonstrate the positive impact of marketing on the entire business, the report suggests that leaders of marketing teams should approach their finance counterparts with technology investments that benefit both sectors. This recommendation aligns with the advice given by former CFO Michael Snape and current CMO Pete Markey of Boots, who emphasized the importance of effective collaboration and the need for marketers to consistently communicate the broader benefits of marketing efforts to the finance team, rather than solely treating them as a source of funding.

Other senior marketers have shared with Our Website that speaking to finance departments in their language has benefited them personally. Jennifer Chase, the executive vice-president and CMO at SAS, notes that understanding how to discuss the financial impact of marketing has made her a more valuable asset to the overall business.

In order to achieve this, it is important to demonstrate performance and effectiveness. According to a report by the CMO Council, 87% of marketers who have a collaborative marketing-finance partnership are satisfied with their ability to measure performance. On the other hand, only 57% of marketers with a less collaborative relationship share the same level of satisfaction.

The importance of goal-oriented collaboration within brands is emphasized, as it allows marketing and finance to work together to address any industry disruptions. According to a study, 27% of marketers believe that there should be increased collaboration on metrics and objectives. Additionally, 25% recognize the need for better alignment on priorities and incentives, while 22% highlight the significance of risk assessment. Furthermore, 11% of respondents suggest that there should be enhanced collaboration on timetables.