Why Finance and Marketing Must Align for Long-Term Success

The Gist:

• Speak the language. Build trust by learning finance’s metrics and embedding financial priorities directly into your marketing strategy.

• Foster transparency. Open communication and strategic alignment allow finance and marketing to manage risks and maximize returns together.

• Balance perspectives. Navigating finance’s caution and marketing’s creativity leads to innovations that drive sustainable, long-term growth.

As the market continues to reward companies for prioritizing sustainable growth rather than rapid growth at all costs, data-driven decision-making has become an especially critical skill for leaders across the organization. Leaders who make decisions based on data and not instinct are better positioned to win in both the short- and long-term.

This is critically important for marketers in particular. Often viewed as an adversary to finance due to natural tensions over spending, marketers must take the lead in building a stronger partnership. Here are four ways to help finance and marketing build that bridge.

Speak the Language of Both Finance and Marketing

One of the most critical steps marketing leaders can take to create a healthy relationship with finance is to learn how to speak the language of finance. This doesn’t just mean learning how to calculate and communicate marketing activities in financial terms; it also means embedding financial thinking into the marketing strategy itself.

When marketers first enter a marketing leadership position, it can be daunting to realize just how non-negotiable business outcomes and financial metrics really are. This reality requires marketers to move beyond less quantifiable goals like “building brand awareness,” which can too easily be defined by vanity metrics. Even generating a certain number of leads isn’t enough to prove a campaign’s success; real value is defined by how efficiently those leads convert into paying customers at a profitable rate.

Instead, marketers need to focus on measurable objectives tied directly to revenue, customer acquisition cost (CAC) and ROI. This requires a more analytical approach to every aspect of marketing, including how resources are allocated, how programs are funded and how results are evaluated after completion. Marketing leaders who perform best in this environment have learned the languages of both storytelling and data.

Related Article: Finding the Goldilocks Zone of Marketing Measurement

Prioritize Open Communication and Strategic Alignment

Speaking the language is a non-negotiable first step. But simply sharing reports over email or holding regular meetings isn’t going to cut it; it’s also important to intentionally create and nurture an environment in which both teams feel empowered to ask questions, challenge assumptions and create clear expectations around what’s a possibility or priority.

For marketing leaders, this includes being transparent about the risks associated with a new campaign or initiative, especially if it means admitting the potential for failure. CFOs, in turn, must be willing to recognize and accept that there are nuances to marketing and brand building that extend beyond immediate financial metrics. By creating a dialogue where both sides understand the other’s goals and challenges, finance and marketing can work together to mitigate risks and maximize returns.

When these two departments are strategically aligned, marketing initiatives can be more effectively funded and scaled. Finance gains a clearer understanding of the marketing investments being made and how those investments drive growth, while marketing gains credibility by demonstrating its direct contribution to the company’s bottom line.

Navigate the Departments’ Differing Perspectives

Of course, speaking the same language and being transparent doesn’t mean finance and marketing suddenly share the same priorities. As mentioned above, finance departments tend to be risk-averse, valuing predictability and control. Meanwhile, marketers often thrive on experimentation and measured risks. These differing perspectives can lead to tension, but they can also lead to innovation when managed with care.

As a marketing leader, acting as the bridge between the departments often requires a thick skin and the ability to defend your initiatives with data. But being a total bulldog won’t get you anywhere, either. You need to listen closely to the finance team’s apprehensions and priorities, and then you can address concerns and inspire confidence that your proposed marketing investments are aligned with broader business objectives.

Sometimes, this requires adjusting expectations or timing for marketing initiatives. A new campaign idea may be brilliant, but it’ll never see the light of day if it doesn’t align with the current financial reality. The key is to remain flexible, keep the company’s long-term objectives at the forefront and make sure that short-term decisions don’t undermine future growth.

Play the long game, be willing to compromise and remember that at the end of the day, you’re on the same team.