It’s budget time: when CMO’s & CFO’s dance the dance of “chicken & egg.” If the CFO increases marketing budget, how many more eggs will be produced? And has the CFO heard it all before?
On the flip side, if the CMO has already demonstrated what marketing investments produce results, and at what ROI (down to the penny)…the CFO is happy to increase marketing budget.
In CFO speak: it’s called “matching principle.”
In CMO speak: it’s called attribution.
In shareholder speak: it’s called accountability.
CFO’s get fired up about marketing accountability.
With marketing accountability, marketers get more budget (and keep their jobs longer).
How much more budget?
After one full year of using attribution, marketing budgets increase 30%.
After two years, they increase 39%.
Because CFO’s see a regular, accountable process of advanced measurement similar to what CFO’s refer to as activity-based accounting. Attribution is the CFO’s libation. Happier because a process of accountability exists (and budget increases).
Because the median ROI improvement of marketing spend is 15%
The math: 15% improvement which costs 1-7% of spend = about a 3x return on money.
Is the stock market delivering 3x returns?
Are banks delivering 3x returns?
For CFO’s, attribution = libation because of process and proof.
Pour a little more: 30% more.