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Revenue and growth will always drive the financial agenda, which is why the role of Finance in Marketing Procurement needs to focus on collaboration for shared success.
Revenue and growth are high on the agenda for both the Chief Marketing Officer (CMO) and Chief Financial Officer (CFO). However, whilst this commonality exists, there can often be a disconnect regarding the perception of value.
The CFO and Chief Procurement Officer (CPO) will have a different expectation from what they consider to be the value of marketing and spend versus what the CMO perceives as value or return on investment (ROI).
Ideally, there should be a collaboration on what determines the success of marketing and constitutes a good return on investment. The conversation around marketing spend should include all areas of expertise, with each department offering insights and data to realise the potential of marketing spend entirely.
Finance & Marketing
The CFO has visibility into the business’s fiscal health, making them an invaluable source of insight and expertise. When Marketing collaborates more closely with Finance, they can potentially:
- Understand more about the business priorities and how marketing can effectively align with them.
- Improve the communications between Marketing, Procurement and Finance, so there is an understanding of the growth opportunities.
- Share knowledge, metrics and insight to ensure all departments are on the same page.
- Leverage their shared commitments to growth and ROI to manage marketing budgets and spend more efficiently.
We often see that when Marketing uses the same language as Finance, many traditional bumps in the road can be avoided. Finance will want to see the data as it provides demonstrable evidence and can be relied upon as a single source of truth.
Finance & Marketing Procurement
Finance and Marketing Procurement speak the same language. They have a shared commitment to achieving measurable ROI and ensuring the correct suppliers and processes are put in place and that every cent spent is being spent wisely.
That said, Marketing Procurement does have its own priorities and expectations that can benefit from a richer relationship with Finance. With a mutual recognition that marketing spend and budgets are fully optimised, that money is being saved, more value is being extracted, and an advanced ROI is being delivered. There’s a mutual understanding that wastage is at a minimum, and no money is being left on the table regarding negotiations.
Collaboration between Marketing Procurement and Finance also ensures the full picture is presented. There are more opportunities to identify cost savings and efficiencies in the process, often leading to time and resource savings.
Bringing the conversation together
Finance is focused on the bottom line. Marketing is focused on growing the brand. These goals are essentially the same when unpacked.
This means there is immense potential for collaboration and improved budgeting. How?
Through Intelligent Marketing Procurement Data
The answer always lies in the data.
When all teams have access to reliable data, they all have a line of sight into how budgets can be aligned to the objectives and how the metrics are being calculated.
Data shines a light on marketing spend and delivers measurable savings opportunities to the business. Savings can translate into improved budgets and additional value in the future.
When Marketing and Marketing Procurement can demonstrate the due diligence they have undertaken thanks to data, they provide the CFO with everything they need to ensure the focus is on the bottom line and an advanced ROI is being delivered.
Using data relevant to Finance, Marketing and Marketing Procurement builds a more robust, collaborative relationship, which will positively impact the business.