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Trust Me I’m a CMO and other things your CFO doesn’t want to hear
James
Thomas
CMO
Allocadia
@Thomas_44
Bryan
Semple
CMO
Smartbear Software
@VK_Bryan
“Trust Me,
I’m a CMO…”
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James Thomas • CMO, Allocadia
• VP Marketing, Talemetry
• VP Product Marketing, SAP
• VP Product Management BusinessObjects
• Product Manager, Crystal Decisions
MarTech Stackie Award
Best MarTech Company
@ JThomas_44
Bryan Semple • CMO, SmartBear Software
• Instructor, MarketingProfs
• CMO, VKernal (acquired by Dell)
• VP Marketing, Onaro (acquired by NetApp)
• Egnera, FairMarket, Trellix, Sybase
@ VK_Bryan
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1. Context – making marketing count
2. The CFO/CMO relationship
3. Changing the conversation
Q&A
Agenda TL;DR
Have the right answer to
the CFO’s questions.
“Trust me” doesn’t cut it.
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A CMO walks into a board meeting…
Bryan: James: Board meeting
[Insert story – focus on pain point / emotion] In today’s world marketers must make every dollar count.
More
responsibility
More
channels
Changing
Buyer habits
More
complexity
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In today’s world marketers must make every dollar count. $290,000,000,000
- Marketing spend in 2016
“Third consecutive year of
marketing budget increases…” – Gartner 2016-2017 survey
Mo’ money,
mo’ problems.
Marketing is no longer
a pure spending game.
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In today’s world marketers must make every dollar count. Marketers must understand
what’s working and what’s not,
and prove business impact.
WHY CMO + CFO ALIGNMENT IS CRITICAL
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“So, where is
your marketing
budget going,
exactly?”
• Marketers must understand what’s working and what’s not.
And prove business impact.
The average
CMO’s tenure is
half that of other
executives.
Source: 2016 Korn Ferry study
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It’s not just about budget.
Ally in the boardroom
Shared obligation to support the business
Bi-directional relationship
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• Marketers must understand what’s working and what’s not.
And prove business impact.
Set the Right Expectations
Marketing
contribution
0% 100%
• Marketers must understand what’s working and what’s not.
And prove business impact.
High-performing firms are
3X more likely to align Marketing and Finance
Static / flat Expecting revenueincreases
0%
10%
20%
30%
40%
50%
60% 57%
27%
- Allocadia 2017 Marketing Performance Management
Benchmark Maturity Study
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(REALLY?)
THE STATE OF THE
CMO / CFO RELATIONSHIP
• Marketers must understand what’s working and what’s not.
And prove business impact.
Only 14% of
Marketing
organizations see
Finance as a trusted,
strategic partner…
- Allocadia 2017 Marketing Performance Management Benchmark Maturity Study
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CHANGING THE CONVERSATION
• Marketers must understand what’s working and what’s not.
And prove business impact. WHAT we measure
HOW we measure &
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#INBOUND17
Only 21% of marketers
are able to point all
measurements to
Marketing’s contribution
to revenue.
- Allocadia 2017 Marketing Performance Management Benchmark Maturity Study
Only 6% of marketers
feel their measurements
help determine the next
best marketing action.
- Allocadia 2017 Marketing Performance Management Benchmark Maturity Study
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Revenue isn’t everything.
What we think the
CFO cares about
What they really care
about
What they definitely
DON’T care about
Revenue sourced Budget variance / accuracy Headcount
Pipeline sourced CAC ratios (SaaS) Program / channel dollar spend
Pipeline influenced Balance with corporate objectives Vanity metrics (social followers)
Cost of marketing
Webinar registrants
Sales metrics (MQL, SAL)
Press mentions
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Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
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Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
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Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
• Marketers must understand what’s working and what’s not.
And prove business impact.
ATTRIBUTION INVESTMENT
PLANNING
“What did this Marketing
activity do for me?”
“Where should I invest
budget dollars to drive
the most impact?”
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Business Value
Metrics
Programmatic ROI
Hitting Spend Plan
Waste and Fraud
Contract / Legal Compliance
CFO + CMO
TRIANGLE OF TRUST
Avoid Focus on
What did I get for my spend? What is working and what is not?
Is marketing pulling its weight? How can Marketing impact the
business tomorrow?
What have you done for me lately? Where should we spend our next $?
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Let’s talk about
marketing
program spend…
Let’s talk about
CAC by product…
FROM: TO:
HOW TO GET THERE
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82% use spreadsheets for critical operations:
Planning Budgeting Measuring
Marketing Performance Management
2017 #Stackies
Award Winner
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MSFT Tech Stack
2017 #Stackies Award Winner
The Wild West of Marketing investment data.
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• Marketers must understand what’s working and what’s not.
And prove business impact.
Be the best source of spending
information.
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• Marketers must understand what’s working and what’s not.
And prove business impact. Be the best source of spending information.
• Marketers must understand what’s working and what’s not.
And prove business impact.
Marketers Must Run Marketing
Like a Business
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5 ways to improve the CFO/CMO relationship:
1. Lead with data
2. Speak the language of the business
3. Do what you say – spend to plan
4. Give visibility
5. Act like a strategic partner
Ask me anything at the Post-Presentation Huddle!
2017 Marketing Performance
Management Benchmark Study
Cloud software that gives marketers confidence
in where to invest their next dollar.
bit.ly/mpm-report Get in touch:
