Ep 12 - The CMO who couldn’t answer the CFOs question.

I was in a boardroom a few months ago, sat on a quarterly review meeting with a business I’d been advising. The CFO, quite a calm guy, no drama, asked the CMO one question “What’s the cost of acquiring a customer this quarter, and how does it compare to last quarter?”The CMO froze - not because she didn’t have the data, she had tons of data. She had a 40-slide deck full of it ready to present impressions, reach, engagement, stats, follower, growth, email, open rates, website sessions, bounce rates, top performing posts, all of it, but she couldn’t answer the one question the CFO actually asked. Here’s what’s going on in so many businesses right now. The marketing team is producing beautiful reports. The CMO is presenting dashboards from six different platforms, and none of it rolls into one single number that CFO can drop into a spreadsheet and work with. When the board is making decisions about where to put the next dollar of investment, they’re not weighing up reach against pipeline. They’re weighing up marketing against sales, hires against product development, against R&D, and marketing loses the argument every single time when it can’t speak in a language of finance, the modern CMO has to learn to translate. That’s every campaign, every channel, every activity - it has to have a traceable revenue number that sits in the same system the CFO is using not a marketing attribution tool that produces its own version of the truth, the actual finance system. And if you can’t answer the CFOs question about the cost of acquisition, lifetime, value, payback period and contribution margin to your top campaigns, you’re not running marketing. You’re running a content operation, there’s a difference.If you’re a CEO or you’re watching your CMO present dashboards that don’t connect to the P&L it’s a warning sign. The fix isn’t more dashboards, the fix is rewiring the measurement so that marketing activity and revenue are in the same conversation. Email me [email protected], or find me on LinkedIn. Let’s have a conversation about how to simplify the measurement and get marketing speaking the language of finance. Step away from vanity metrics and into the numbers CFO actually cares about.If you’re a CMO realise that we’ve got a different job to do today than we did yesterday. As a CMO in the modern marketing world, it’s about connecting revenue to the marketing activity that’s being produced. That’s what’s going to keep your job longer than the average one and a half year position. Side note… You know, a CFO, on average, is around 4.5 years in tenure. The average CMO is a 1.5. Start talking the language of finance, and you’ll keep your job. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.cmofieldnotes.com