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1、Economic Adversity Will Test Their Resolve for Collaboration and InnovationMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?2 2023 CMO Council All rights reserved.TABLE OF CONTENTSIntroductionWillingness To CollaborateFuture Focused Mindse
2、tCapabilities:Innovation,Agility,Collaboration,PerformanceCustomer Data as Common LanguageOvercoming ObstaclesKPMG Expert CommentaryFiserv:Megan PannierVitamin Shoppe:Nadina GuglielmettiSchneider Electric:Shonodeep ModakAgios Pharmaceuticals:William Lumpkin3689819SECTION 2:SECTION 1:SOUND
3、 OFFCOLLABORATION&ALIGNMENTMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?3 2023 CMO Council All rights reserved.Economic headwinds have arrived,and chances are,youre not prepared.According to this study,only 10%of marketing leaders strongly believe their marketing investments,whose reins ar
4、e often held by finance,position them to emerge from economic turmoil ahead of the competition.Worse,marketers know finance puts budgets,including the marketing spend,under the microscope in times like these.Yet marketing is expected to help the company weather the storm,get ahead of disruption,and
5、zigzag to the customer sweet spot.If you want to right the ship,youll need to allow for agility and innovation.Further,our study also found that only 16%of marketing leaders feel very confident in their marketing-finance alignment to make fast and agile investments.Too many marketers are unsatisfied
6、 in their ability to innovate.If marketing and finance wish to successfully navigate economic headwinds,theyll need to redefine their working relationship and align on financially responsible growth strategies that prioritize smart,realizable,innovative investments.INTRODUCTIONYOUR CURRENT MARKETING
7、 INVESTMENTS POSITION YOU TO EMERGE FROM ECONOMIC TURMOIL AHEAD OF THE COMPETITION10%STRONGLY AGREE 56%AGREE27%SOMEWHAT DISAGREE 6%STRONGLY DISAGREE Only 10%of marketing leaders strongly believe their current marketing investments position them to emerge from economic turmoil ahead of the competitio
8、n.MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?4 2023 CMO Council All rights reserved.CHALLENGE:DIFFERENT PERSPECTIVESFor better alignment,marketing leaders will have to more closely align with finance leaders.Marketers have cited the following areas where deeper collaboration is needed:Fo
9、r Uptempo CMO Jim Williams,overcoming different perspectivesor rather,siloed perspectivesis the key to unlocking marketings agility,velocity,and ability to pivot.Stronger connections between budget and marketing planning,execution,and performance lift the“fog of marketing,”he says,and give visibilit
10、y across marketing and finance teams.“Once you have that visibility,it becomes much easier to activate your programs and campaigns and move at the speed that the market desires,”Williams says.WHATS AT STAKEWhen a CMO has earned a seat at the leadership table and is seen as a business driver,the CMO
11、is likely to enjoy a higher level of confidence in their investments.Theyre generally more satisfied with marketings relationship with finance when it comes to four cornerstone capabilities:A strong marketing-finance connection makes marketers more innovative.CMOs and CFOs who work well together cit
12、e marketing analytics,machine learning,and automation as immediate areas of focus in the next 12 months,making them more predictive and able to quickly meet changes in market and buyer behavior.However,CMOs and CFOs who lack strong alignment arent very confident in their marketing investments and ar
13、e overwhelmingly dissatisfied with cornerstone capabilities.After marketing analytics,theyre focused on short-term,business-as-usual investments in brand marketing,digital media and search,social media,etc.27%METRICS&GOALS25%PRIORITIES&INCENTIVES22%RISK ASSESSMENT11%TIMETABLESInnovationAgilityCollab
14、orationPerformanceMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?5 2023 CMO Council All rights reserved.CHARACTER TRAITS OF COLLABORATIONSo what makes a good marketing-finance relationship?Our study found that co-ownership of customer data(along with ease of sharing)plays a central role.More
15、 than ever,marketing budgets and investment decisions rely on data validation.Marketing and finance need to be working off the same data insights.But theres a long way to go in achieving that goal.WHAT YOULL LEARNWith economic adversity and uncertainty ahead,the CMO Council and KPMG embarked on an e
16、xtensive study to understand how marketing and finance can redefine their working relationship to align on financially responsible growth strategies.We explore areas of alignment such as co-ownership of customer data,how to better align,use of a common language,and more.We also show how a better mar
17、keting-finance relationship can impact innovation,agility,collaboration,and performance of their investments.Only 18%of marketing leaders strongly believe both finance and marketing have the same timely access to insightful,reliable,accurate,and integrated customer data,transactional information,and
18、 market intelligence to inform marketing investments.Key Action Recommended:Recognize that unlocking innovation in your marketing strategy requires collaboration across business functions and executive buy-in.It is not a siloed endeavor.OUR METHODOLOGYOur findings are based on a survey of over 275 m
19、arketing leaders across industries and geographies.Additionally,we conducted in-depth interviews with marketing executives from Schneider Electric,The Vitamin Shoppe,Fiserv,Agios,and others.MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?6 2023 CMO Council All rights reserved.Very WillingIndi
20、fferentWillingHesitant22%45%26%7%Better marketing-finance alignment can only happen when theres a true willingness to collaborate,which isnt always the case.A third of marketing leaders rate their current CMO-CFO partnerships willingness to collaborate as indifferent,even hesitant.Whats needed is a
21、mutual understanding of how marketing and finance can help drive the business.Marketing and finance should align in practical areas that will put them on the right path to achieve this goal.Our study found that the top three most important areas for marketing-finance alignment are:Data and the long
22、game bode well for marketing given its dependence on data and visibility into leading and lagging indicators and levers for success over longer periods.WILLINGNESS TO COLLABORATEOnly 22%of CMO-CFO partnerships are very willing to collaborate.IS YOUR CMO-CFO PARTNERSHIP WILLING TO COLLABORATE ON INVE
23、STMENTS,GOALS,AND METRICS?Data-driven decisioning Long-term investment strategyCustomer lifetime valueMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?7 2023 CMO Council All rights reserved.“In our organization,marketing is the only function that can see across all the different customer segme
24、nts and businesses,from the lens of the customer,beyond financial quarters,Modak says.“Were able to help finance get a lot more visibility into leading and lagging indicators,improve the process,and identify emerging challenges.”Sales incentives,too,are a roadblock to collaboration.Will a salesperso
25、n get paid more or less if they acknowledge marketings involvement,such as providing buyer-intent signals?These and other wrinkles need to be ironed out before redefining a relationship.“A lot has to be built from the ground up,and its going to be bumpy,”Modak says.(For more,see“Executive Perspectiv
26、e:Schneider Electric,”pg.16.)“Were able to help finance get a lot more visibility into leading and lagging indicators,improve the process,and identify emerging challenges.”Shonodeep Modak,CMO Energy Management at Schneider ElectricKEY ALIGNMENT AREAS BETWEEN MARKETING AND FINANCEData-Driven Decision
27、ingShort-term investment strategyCustomer Lifetime ValueOtherLong-term Investment StrategyDigital PromotionPrice Optimization24%20%19%15%14%5%2%MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?8 2023 CMO Council All rights reserved.CMOs and CFOs who are willing to work together cited machine l
28、earning and automation as the second most important area of focus over the next 12 months.Among CMOs and CFOs who arent as willing to collaborate,machine learning and automation ranked fifth below business-as-usual efforts such as brand marketing,digital media and search,and social media marketing.W
29、hat does this mean?Willingness for better marketing-finance alignment and collaboration yields machine learning innovation and enhances business resilience and navigation through market uncertainty.Machine learning makes marketing more predictive,while AI and automation perform marketing tasks more
30、efficiently when budgets tighten.Key Recommendation:Approach your finance counterpart with technology investments that add value to both your Marketing and Finance sectors.Show how investment in your marketing strategy will drive value for all functions of your business.FUTURE-FOCUSED MINDSETAREAS O
31、F FOCUS IN THE NEXT 12 MONTHS FOR NAVIGATING ECONOMIC CHALLENGESWILLING TO COLLABORATENOT-SO-WILLING TO COLLABORATE21%21%16%11%13%14%16%18%10%11%16%18%6%7%2%1%Marketing AnalyticsMachine Learning and AutomationSocial Media MarketingBrand MarketingPurpose BrandingDigital Media and SearchMobile Marketi
32、ngOtherMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?9 2023 CMO Council All rights reserved.Marketing and finance departments willing to collaborate are more confident in their investment capabilities and prospects of emerging from economic turmoil ahead of the competition.Those who arent s
33、o willing to collaborate risk falling behind.The gap is extreme.Our study split survey respondents into two groups depending on:1.How they rated their current CMO-CFO partnerships willingness to collaborate on financial investments2.Their shared goals3.Metrics to achieving marketings goalsThose who
34、answered“willing”or“very willing”were put in one group,and those who answered“indifferent”or“hesitant”were put in another.(For more,see“Willingness To Collaborate,”pg.5.)We then asked each group how they ranked their performance in four critical marketing-finance investment capabilities:1.Innovation
35、:The ability for marketing and finance to invest in emerging MarTech,particularly AI and machine learning2.Agility:The ability for marketing and finance to shift and optimize spend in order to achieve desired outcomes3.Collaboration:The ability for marketing and finance to work together,that is,fina
36、nce informing marketing on spend and vice versa4.Performance:The ability for marketing and finance to track and measure performance of marketing investmentsCAPABILITIES:INNOVATION,AGILITY,COLLABORATION,PERFORMANCECMO-CFO PARTNERSHIP PERFORMANCE SCORECARDVery SatisfiedSatisfiedDissatisfiedVery Dissat
37、isfiedWilling to CollaborateNot-so-Willing to Collaborate11%1%75%31%14%64%1%5%16%2%60%25%20%61%3%12%24%1%54%47%21%46%1%6%25%4%62%53%11%39%2%5%AgilityAgilityInnovationCollaborationCollaborationPerformanceMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?10 2023 CMO Council All rights reserved.On
38、ly 16%of marketing leaders feel very confident in their marketing-finance alignment to make fast and agile investments.CAN YOUR CMO-CFO PARTNERSHIP MAKE AGILE INVESTMENT DECISIONS?16%Very Confident36%Confident9%DoubtfulINNOVATION We define innovation as the ability for marketing and finance to inves
39、t in emerging MarTech,particularly AI and machine learning.This is especially important because AI and machine learning can help companies identify and get ahead of disruptions in markets and buyer behavior when economic adversity hits.(For more,see“Future Focused Mindset,”pg.6.)Our study found that
40、 76%of marketers in a marketing-finance partnership that are willing to collaborate were either satisfied or very satisfied in their ability to innovate.Only 27%of marketers in a partnership that are less willing to collaborate said the same thing.AGILITY We define agility as the ability for marketi
41、ng and finance to shift and optimize spend in order to achieve desired outcomes.This might mean making changes to in-flight campaigns,moving investments to another channel,or pivoting to different MarTech.Our study found that 86%of marketers in a marketing-finance partnership that are willing to col
42、laborate were either satisfied or very satisfied in their ability to be agile.Only 32%of marketers in a partnership that are less willing to collaborate said the same thing.Somewhat Confident39%MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?11 2023 CMO Council All rights reserved.COLLABORATI
43、ON We define collaboration as the ability for marketing and finance to work together,that is,finance informing marketing on spend and vice versa.This is not just a willingness to collaborate but includes a sound structure,process,and governance.Our study found that 78%of marketers in a marketing-fin
44、ance partnership that are willing to collaborate were either satisfied or very satisfied in their ability to collaborate.Only 48%of marketers in a partnership that are less willing to collaborate said the same thing.PERFORMANCE We define performance as the ability for marketing and finance to track
45、and measure performance of marketing investments.This provides a foundation for whats working,whats not,and enables marketing and finance to make better investment decisions in the future.Our study found that 87%of marketers in a marketing-finance partnership that are willing to collaborate were eit
46、her satisfied or very satisfied in their ability to measure performance.Only 57%of marketers in a partnership that are less willing to collaborate said the same thing.To be fair,tracking and measuring performance is a challenge for practically every marketer.Key Recommendation:Identify where your re
47、lationship falls with respect to Innovation,Agility,Collaboration,and Performance.Prioritize the steps that need to be taken to improve its standing.COLLABORATION&GOVERNANCEWilling to CollaborateNot-so-Willing to Collaborate40%9%Marketing and Finance Collaborate on Investment Initiatives9%20%Investm
48、ent Initiatives are Devised and Approved by a Separate Function27%22%Marketing and Finance Establish and Conduct Their Investment Initiatives Separately24%49%Marketing Must Get Approval From Finance on Investment Initiatives“Theres this expectation in digital that everything is easily measured,and i
49、ts just not.This is where I think some of the friction happens between marketing and finance and other roles.”Nadina Guglielmetti,VP,GM,Marketing,The Vitamin ShoppeMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?12 2023 CMO Council All rights reserved.Only 18%of marketing leaders strongly bel
50、ieve both finance and marketing have the same timely access to insightful,reliable,accurate and integrated customer data,transactional information,and market intelligence to inform marketing investments.A key challenge is a lack of co-ownership of customer data.Only one in four marketing leaders say
51、 customer data is co-owned and shared seamlessly between marketing and finance.“Im heavily reliant upon the people who control or have access and understanding of the data to inform the business cases that were building to support the investments that were making,”says William Lumpkin,vice president
52、 of U.S.Sales and Marketing at Agios Pharmaceuticals.To be clear,this isnt just a marketing and finance problem.Marketing and sales also need to share customer data insights,yet 25%of marketing leaders say customer data is owned in silos by marketing and sales,and more than 40%of marketers say data
53、control lying elsewhere in the organization is a main barrier to data access.Key Recommendation:Strengthen your relationship with your finance functions by integrating customer data across Marketing,Sales and Finance.Give your CFO visibility into what they are approving investment for.CUSTOMER DATA
54、AS COMMON LANGUAGE“Im heavily reliant upon the people who control or have access and understanding of the data to inform the business cases that were building to support the investments that were making.”William Lumpkin,VP of U.S.Sales and Marketing,Agios PharmaceuticalsOWNERSHIP&ACCESSCUSTOMER DATA
55、 IS.Owned by a separate function and shared seamlessly between Marketing and FinanceCo-owned and shared seamlessly between Marketing and FinancePrimarily owned by Marketing with limited access to FinanceOwned in silos and not shared across functions31%26%22%17%Conversely,22%of marketers admit custom
56、er data is primarily owned by marketing with limited access to finance.MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?13 2023 CMO Council All rights reserved.The top three major hurdles that stand in the way of better marketing and finance alignment are:Metrics and goals Priorities and incen
57、tives Risk assessmentMaking meaningful progress requires a collective effort and willingness from both parties to overcome them.One of the key underlying problems is that return on investment(ROI)from marketing spend isnt easy to define.Even if marketing and finance agree on a metric for measuring R
58、OI,they might not agree on the formulation of the metric.At The Vitamin Shoppe,for instance,marketing and finance differed in the calculation of the cost per acquisition.“There was a kind of thumb wrestling on whos right,whos wrong,”The Vitamin Shoppes Guglielmetti says.“We had to sit down,decide on
59、 the methodology,and get to a number together.Im very lucky that our CFO understands that its not so linear.”OVERCOMING OBSTACLESWHAT FACTORS RESTRAIN BETTER MARKETING-FINANCE ALIGNMENTLess than 12%of enterprise leaders are seen as highly strategic and adept at evaluating and implementing new techno
60、logies for competitive gain and growth.“A lot of times,its the halo effect where you cant directly tie a marketing action back to a financial impact.”Megan Pannier,VP,Marketing and Analytics,FiservOther2%Pipeline Structure6%Language7%Timetables 11%Risk Assessment22%Priorities/Incentives25%Metrics/Go
61、als27%MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?14 2023 CMO Council All rights reserved.JASON GALLOWAYPrincipalCustomer Advisory,KPMG LLPCustomer Advisory Leader and Marketing Consulting LeadOur surveys key finding:Only 10%of marketing leaders strongly believe their marketing investment
62、s,whose reins are often held by finance,position them to emerge from economic turmoil ahead of the competition.EXPERT COMMENTARY FROM KPMGMARK GLAIDPartner,AdvisoryKPMG LLP Finance TransformationJASON GALLOWAY:A strong relationship between marketing and finance is crucial for a companys success and
63、profitability.It ensures effective targeting,clear ROI,and transparent budgeting.Making sure that marketing can relay their success in a“language”that finance speaks leads to more cooperation and investment,and leads to better alignment on strategy and metrics.This has a direct impact on both depart
64、ments success.MARK GLAID:The marketing-finance relationship is a critical one and,generally speaking,just as important as the relationships among other functional areas.The degree of importance is also likely linear to the amount of investment in play,which in turn is dependent on industry economics
65、 and consumer buying behavior.Marketing and finance need to closely collaborate and work toward the strategic goals of the company.Finance needs to understand the approach the marketing team is putting in play and how that investment will earn returns commensurate with the risk.HOW IMPORTANT IS THE
66、MARKETING-FINANCE RELATIONSHIP?WHY DOES IT MATTER?MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?15 2023 CMO Council All rights reserved.JASON GALLOWAY:To start,getting intentional around communication.Traditionally,finance and marketing only sync up around quarter-end,but establishing more
67、consistent touchpoints can create clarity for both parties.A big facet of this communication is speaking a common language that keeps everyone informed across functions.On top of keeping finance informed of current performance,the CMO can benefit from outlining short-and long-term strategies.A clear
68、 view into the plans of the marketing function and a great understanding of current performance allow for better overall buy-in from the finance team,which ultimately has the final say on budget.MARK GLAID:It all starts with having a common understanding and alignment around the corporate strategy a
69、nd supporting initiatives.The CMO and CFO need to work together to build a marketing strategy and the related KPIs that track the risk and return profile of the various initiatives that support the broader corporate strategy.WHAT STEPS CAN CMOS TAKE TOWARD A BETTER MARKETING-FINANCE RELATIONSHIP?JAS
70、ON GALLOWAY:Although marketing and finance typically attract different types of people,they share common objectives.Overcoming cultural differences is key to fostering a symbiotic relationship where both functions drive toward common goals.Strong marketing campaigns with business buy-in can drive th
71、e bottom line,leading to confidence in marketing investment by finance.Strengthening the relationship can offset cultural differences and push both functions forward.MARK GLAID:This goes back to aligning on a shared set of initiatives that are taken from an outside-in perspective and align to the co
72、rporate strategy.Additionally,each function needs to understand the others perspective better.For example,the CFO needs to understand the customer base and key industry trends.The CMO needs to better understand the risk and return of various different investments as well as the other financial ambit
73、ions and risks in the short and long term.HOW CAN MARKETING AND FINANCE OVERCOME THEIR CULTURAL DIFFERENCES?JASON GALLOWAY:Achieving balance between marketing and finance may not have a clear sign,but prioritizing the relationship leads to certain changes within the organization.One function will be
74、 aware of whats happening within the other,including short-and long-term strategies,performance,and current initiatives.A balanced relationship is characterized by alignment in strategy,consistent communication,and a common language between functions,rather than a specific metric.A focus on these as
75、pects indicates balance between marketing and finance.MARK GLAID:Common set of KPIs.Well-designed processes that were developed together.Sharing data and insights with each other.WHAT ARE SIGNS THAT THE MARKETING-FINANCE BALANCE HAS BEEN ACHIEVED?MARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIN
76、D?16 2023 CMO Council All rights reserved.Despite advancements in attributing sales to marketing activities,truth is,marketings value is still somewhat of a mystery.“A lot of times,its the halo effect where you cant directly tie a marketing action back to a financial impact,”says Megan Pannier,vice
77、president of Marketing and Analytics at Fiserv.“Yet marketing is under a microscope,and finance wants to the know the return on investment.”Elusive ROI stands in the way of better marketing and finance alignment.Marketing and finance often struggle to agree on what metrics matter or how they should
78、be calculated.They differ on priorities,incentives,and risk assessment.However,there are ways to close gaps with data.More consumers and businesses are using digital tools for finance,and the consequent data capture can provide some proof about a marketing programs impact on adoption and usage of di
79、gital services.EXECUTIVE PERSPECTIVE“Weve done studies with financial institutions to showcase the value of a digitally engaged customer versus a nondigitally engaged customer,”Pannier says.“The additional profit,expense savings,products per household,all of that value that a digitally engaged custo
80、mer brings to the financial institution supports the investment in creating better digital experiences.”Its important to establish the value of marketing not as an incremental revenue driver but a fundamental part of the revenue engine.In other words,marketing should be baked into finances revenue f
81、orecast.“We came to an agreement with finance that marketing doesnt drive revenue on top of what finance forecasts,rather if were not marketing,not increasing year over year,were not going to hit the forecast,”Pannier says.“I know a lot of folks struggle with the relationship between marketing and f
82、inance,and I feel like were in a really good spot.Hopefully,others can get to this place.”I know a lot of folks struggle with the relationship between marketing and finance,and I feel like were in a really good spot.Hopefully,others can get to this place.”MEGAN PANNIERTitle:VP,Marketing and Analytic
83、s,Digital Solutions and Digital PaymentsCompany:FiservIndustry:Financial ServicesMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?17 2023 CMO Council All rights reserved.Retail marketing has always been accountable to results because its a much more nuanced role,says Nadina Guglielmetti,vice p
84、resident,general manager of marketing at The Vitamin Shoppe.Its her job to drive customer traffic and engagement across multiple channelsoffline,online,the appand deliver results that show marketings value.Thats not to say measuring marketing performance is easy,even over digital channels where cust
85、omer engagement can be captured.“Theres this expectation in digital that everything is easily measured,and its just not,”Guglielmetti says.“This is where I think some of the friction happens between marketing and finance and other roles.”Her sentiments are echoed in our study:44%of marketing leaders
86、 in marketing-finance partnerships who arent very willing to collaborate say theyre dissatisfied with their ability to measure marketing performance.If digital customer engagement can be captured,why is measuring marketing performance so difficult?The problem lies in the different ways marketing and
87、 finance understand how metrics are calculated.EXECUTIVE PERSPECTIVEAt The Vitamin Shoppe,marketing and finance initially couldnt agree on cost per acquisition.“There was a kind of thumb wrestling on whos right,whos wrong,”Guglielmetti says.“We had to sit down,decide on the methodology,and get to a
88、number together.Im very lucky that our CFO understands that its not so linear.”Guglielmetti says her CFO is curious and open to learning about marketing,customers,and the customer journey.That curiosity has enabled a positive,collaborative relationship.Of course,there are still sticking points.Many
89、marketing leaders,including Guglielmetti,cite a challenge to get testing budget.“Marketing needs to throw things against the wall,test five things,maybe only one is going to help propel the business,”she says.“Thats the challenge with investments from finance.Theres often not really a willingness to
90、 test new channels where the results are uncertain.Thats why a strong relationship with the finance team is keythe more they are involved in testing,modeling,the more likely they will trust marketing efforts.”We had to sit down,decide on the methodology,and get to a number together.Im very lucky tha
91、t our CFO understands that its not so linear.NADINA GUGLIELMETTITitle:VP,GM,MarketingCompany:The Vitamin ShoppeIndustry:RetailMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?18 2023 CMO Council All rights reserved.Schneider Electrics drive to bring innovative products,software,and digital sol
92、utions to market has brought finance and marketing closer than ever before.Today,finance regularly engages with marketing on strategic investment decisions concerning launches.“Ive noticed a significant increase in the time Im spending with my finance counterpart,collaborating on how we can grow ROI
93、 for new product innovations,”says Shonodeep Modak,CMO of Energy Management at Schneider Electric.Finance looks to marketing because marketing has its finger on the pulse of markets and buying behavior.Marketing can identify levers for success and drive awareness and purchase interest in a product p
94、ortfolio.Marketing performance metrics can complement financial performance metrics by providing leading indicators such as product configurator web traffic that signals how new product interest is tracking toward its business case objectives.“In our organization,marketing is the only function that
95、can see across all the different customer segments and businesses,from the lens of the customer,beyond financial quarters,Modak says.“Were able to help finance get a lot more visibility into leading and lagging indicators,improve the process,and identify emerging challenges.”EXECUTIVE PERSPECTIVETog
96、ether,marketing and finance collaborate on marketing investments and implement tracking to make sure new products are getting the right ROI.“You can have the most incredible product,but as we all know,if nobody hears about it,your chance of success is small,”Modak says.“Working more closely with fin
97、ance,we are driving the evolution of our financial metrics.As an example,the transformation from traditional software selling to software as a service(SaaS)shifts performance metrics from licensing to recurring revenue and other SaaS key performance indicators.Traditional software is sold through ch
98、annels and installed on site,so we lose some visibility into the sale,installation,and users.With SaaS offerings,Schneider Electrics marketing team provides direct insights into customer purchases,which helps finance with powerful leading indicators and improves our businesss understanding of custom
99、er behavior.”“Our SaaS product teams are turning heavily to marketing,because the entire customer journey does not require a physical salesperson anymore,”Modak says.“The maturity level on software has pulled marketing more and more into the equation.”In our organization,marketing is one of the few
100、functions that can see across all the different customer segments and businesses,from the lens of the customer,beyond financial quarters.SHONODEEP MODAKTitle:CMO Energy ManagementCompany:Schneider ElectricIndustry:EnergyMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?19 2023 CMO Council All r
101、ights reserved.There are signs that the finance function is increasingly aligned with marketings drive to be agile and innovative with its investmentsthat is,marketing needs a testing budget.Marketing has to be constantly testing hypothesis and learning whats working,what isnt,because market dynamic
102、s and buyer behavior are always changing.“More and more,Im seeing finances appetite for short-duration,small marketing investments to test hypothesis before making deeper commitments and bigger investments,”says William Lumpkin,vice president of US Sales and Marketing at Agios Pharmaceuticals.“Ultim
103、ately,everybody in the company is working toward the same goal.”To be fair,many marketing leaders say its a challenge to get finance to free up more testing budget because of the elusiveness of testings ROI.Out of a half-dozen tests,only one may yield a learning that will help propel the business.Lu
104、mpkin says marketings relationship with finance is built on benchmarks and data,including the formulation of hypotheses.This EXECUTIVE PERSPECTIVEmakes it easier for finance to sign off on small tests and experiments that look for early signals that support the hypothesis.“I can have a dialogue with
105、 the CFO and talk about the business in a way that deepens understanding of what were doing,”Lumpkin says.“In turn,the CFO can leverage an enterprise mindset to help us think differently about how were approaching things.”Few,if any,marketing decisions are made based on a marketers or finance execut
106、ives personal feeling.There is a business case for everything,Lumpkin says,and the finance partner is instrumental in helping to optimize and refine that business case.“Im heavily reliant upon the people that control or have access and understanding of the data to inform the business cases that were
107、 building to support the investments that were making,”Lumpkin says.More and more,Im seeing finances appetite for short-duration,small marketing investments to test hypothesis before making deeper commitments and bigger investments.WILLIAM LUMPKINTitle:Vice President U.S.Sales and MarketingCompany:A
108、gios PharmaceuticalsIndustry:PharmaceuticalMARKETING&FINANCE:FUELING INNOVATION OR FALLING BEHIND?20 2023 CMO Council All rights reserved.In the new rules of business,speed and scale are table stakes.Increased expectations to stay relevant,continuously adapt,work smarter,grow faster,and deliver sust
109、ainability are constant pressures.Companies are realizing the key to accomplishing these expectations is to rapidly realign around the customers evolving needs in this increasingly digital world.This demands a continuous capability that requires a truly collective approach.KPMG Customer Advisory can
110、 help you transform the way your front office engages customers.Combining business experience with functional acumen,we provide you with deep financial analysis,robust customer insight,market intelligence,and strategic business direction to help you generate ROI from your investments in customer cen
111、tricity.Learn more at visit.kpmg.us/CustomerAdvisoryThe Chief Marketing Officer(CMO)Council is the only global network of executives specifically dedicated to high-level knowledge exchange,thought leadership and personal relationship building among senior corporate marketing leaders and brand decisi
112、on-makers across a wide range of global industries.The CMO Councils 16,000-plus members control approximately$1 trillion in aggregated annual marketing expenditures and run complex,distributed marketing and sales operations worldwide.In total,the CMO Council and its strategic interest communities in
113、clude more than 65,000 global executives in more than 110 countries covering multiple industries,segments and markets.For more information,visit www.cmocouncil.org.Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.The
114、KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurat
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