The finance team is hesitant about budgeting for a marketing initiative. Can you convince them of its value?

If you are in marketing you should already know how to tweak your messaging and comms as per your audience. Since your audience here is Finance team, it's best to stick to numbers. Talk about the expected ROI of the campaign in the short terms and the long term. Show clear improvements in hard metrics like repeat revenue, CAC and CLTV and half of your job is done. All you have to do in a nutshell is to quantify the future monetary increments with this current investment in the campaign and the finance team will give you more than what's needed :)

It comes down to Key Performance Indicators. When I present a marketing plan to a client, their first question is, "will this work?". My job as the CMO is to help my product marketing team translate KPIs into company impact for the client. If your communication cadence is up to par with your teams, you will have capable teammates who can easily and masterfully answer any value-prop questions that may arise.

"When times are good, you should advertise... When times are tough, you should advertise!" The same is true for marketing. This is the ultimate no-brainer. Investing in marketing is essential for your company's sustainable growth. It boosts product visibility, differentiates our brand, and communicates unique benefits, driving sales and customer retention. Effective marketing educates our audience, builds trust, and encourages loyalty, creating a ripple effect that enhances profitability. Aligning marketing initiatives with business goals ensures a strong ROI.

Marketing is not merely a cost center; it is a strategic investment that drives revenue growth, brand awareness, and customer loyalty. Maybe they will satisfy with this statement

In my experience, marketing is indeed an investment rather than just an expense. A well-executed marketing strategy amplifies product visibility, differentiates a brand in a crowded market, and communicates unique benefits to the target audience. This creates a ripple effect, enhancing sales, customer retention, and ultimately profitability. By clearly articulating the potential return on investment and presenting a strategic plan that aligns with business objectives, it becomes evident to the finance team that marketing is a catalyst for sustainable growth.

Te comparto 3 formas en las que el Marketing impacta los ingresos: 1. El marketing genera FLUJO DE CAJA: Las acciones de corto plazo generan ingresos porque ATRAEN nuevos clientes, REAVIVAN a los existentes y REDUCEN LA FRICCIÓN en los cierres de ventas. 2. El marketing genera RENTABILIDAD: Las marcas desconocidas desaparecen. El marketing crea conciencia de marca, interés y posicionamiento. Una marca fuerte RETIENE los clientes. Es MÁS RENTABLE venderle a un cliente recurrente que venderle a uno nuevo. 3. El marketing es SOSTENIBILIDAD FINANCIERA: Brinda OPORTUNIDADES, identificando NUEVOS mercados, nichos y tendencias. GARANTIZA INGRESOS FUTUROS al desarrollar la oferta, sincronizándola a las necesidades cambiantes del mercado.

In my experience, marketing directly influences revenue generation. Effective marketing campaigns drive sales by reaching new customers and re-engaging existing ones. By increasing brand awareness and interest, marketing efforts make it easier for the sales team to close deals. Additionally, marketing helps identify new market opportunities and develop products or services that meet evolving customer needs. When marketing strategies are connected to revenue outcomes, it becomes easier for finance teams to appreciate the tangible benefits of allocating budgets towards marketing initiatives.

Marketing initiatives are essential for brand differentiation and customer loyalty, which directly impact long-term profitability. By investing in marketing, you are essentially investing in the future success of the company. For example, a well-executed social media campaign can create brand advocates who not only make repeat purchases but also refer new customers. Seeing marketing as a strategic investment rather than a cost is crucial for sustaining growth and remaining competitive in the market.

In my experience, investing in marketing is crucial for long-term growth. While some results are immediate, many strategies lay the groundwork for future success. Brand-building campaigns, for example, may not produce instant sales but enhance brand reputation over time. Additionally, though customer acquisition costs can be high initially, the long-term benefits, viewed through customer lifetime value, often outweigh these costs. Marketing is not just about immediate returns but about ensuring sustained growth.

CLIENTES PARA TODA LA VIDA, es algo que a todos nos interesa y emociona. El marketing es uno de los mejores amigos de ese futuro. No solo busca resultados inmediatos, sino que también construye una base sólida para el crecimiento a largo plazo. Uno de los mejores indicadores para calcular esta clase de retorno es el del Valor de Vida del Cliente (LTV - Lifetime Value): El marketing ayuda a adquirir clientes a un costo inicial, pero el valor que aportan a lo largo de su relación con la empresa supera con creces ese costo. Y la única forma de garantizar este LTV es a través de la creación de marca, la fidelización de clientes y la adquisición de nuevos clientes, contribuyendo de manera permanente al éxito sostenible de la empresa.

Investing in marketing is essential for your business's long-term growth. Marketing boosts product visibility, differentiates your brand, and builds trust, driving sales and customer retention. While some results are immediate, strategies like brand-building yield long-term benefits, creating a reputable image and reducing future acquisition costs. Viewing marketing through the lens of customer lifetime value highlights its true impact. Marketing is about setting the stage for sustained growth and ensuring a strong return on investment, crucial for your company's success.

Marketing is an investment in the future success of the company. Just like planting a tree, it may take time to see the fruits of your labor, but the growth potential is exponential. Take the example of Apple, who invested heavily in marketing their products in the early days, which has now solidified them as a global leader in technology. Trust in the process and the long-term benefits will far outweigh the initial costs.

Marketing is an essential investment for growth, not just a cost. By aligning marketing goals with financial objectives, we can demonstrate measurable ROI and track performance. For example, if we invest in a social media campaign, we can track leads generated and conversions to show direct impact on revenue. By shifting the focus from just cost to value creation, we can show the finance team the strategic importance of marketing in driving business results.

Uno de mis clientes tiene como su meta principal llegar a 1 billón en ventas anuales para el siguiente año. Y ante una meta tan clara, es muy fácil hacer una simple pregunta que nos garantiza alinear estratégicamente cada una de las decisiones de marketing que debe tomar la empresa: ¿Cómo nos acerca esa acción de marketing al billón? Responder esta pregunta se convierte en un hábito y cada cosa que hacemos, así como el tiempo que le dedicamos a ello, tiene claramente identificado ese norte. Si algo no nos acerca con claridad al billón, simplemente no lo hacemos. PD: Puedes cambiar "marketing" en la pregunta, por cualquier área de la empresa: compras, ventas, finanzas, etc. Y el objetivo por el que tengas. Te va a ser muy útil.

A marketing plan that aligns with your business goals is essential for achieving strategic objectives. Marketing efforts support the company's vision and mission by targeting key areas such as entering new market segments. For instance, marketing can drive awareness and generate leads in these new segments. By tying the marketing plan directly to strategic milestones, every dollar spent can advance the business' broader objectives, making it easier for finance to justify the investment and see its value in achieving your company's goals.

Showcasing the potential return on investment (ROI) of the marketing initiative can help the finance team understand its value. Providing data on similar past campaigns that led to increased sales, brand awareness, or customer retention can paint a clear picture of the impact marketing can have on the company's bottom line. Demonstrating a concrete ROI projection based on realistic metrics and benchmarks will give the finance team the confidence they need to approve the budget for the marketing initiative.

Customer Lifetime Value (CLV) is the sum of all the revenues from a customer during his/her relation with the company, diminishing the impacts of the costs to acquire and retain the customer. An initiative that serves marketing and particularly helps in customer loyalty and repeat business is expected to increase CLV substantially. I shared a case study with the Company explaining how a loyalty program drove up our CLV 30%, I explained the long-term, financial advantages of the proposed initiative, by showing how it would strengthen customer loyalty, and its cycle that leads to repeat purchases. This evidence use to give a official approval for the finance team.

Approach this the same way you would address a marketing challenge, think of your finance department as the consumer/customer you are trying to win over. What problem are they trying to solve and how can you help them? Understanding their motivations and goals will help you tailor your proposal to overcome their objections and apprehension. I’ve found it invaluable to speak their language, so avoid marketing jargon, use quantifiable facts. Offer to collaborate on KPIs to jointly identify what success looks like.

Marketing initiatives are essential for reaching target audiences, driving brand awareness, and ultimately increasing revenue. By investing in strategic marketing campaigns, businesses can differentiate themselves from competitors and generate long-term customer loyalty. For example, a well-executed social media campaign can result in increased website traffic and lead generation, ultimately impacting the bottom line positively. It's crucial for the finance team to understand the value of marketing in driving business growth and staying competitive in the market.