• by Jim Ogle , July 12, 2024

Gartner finds that marketing  budgets are only 7.7% of total revenue, down from 9.x% last year. CMOs have been frustrated by tighter scrutiny from the CFO, the CEO and even the board of directors, who have adopted a “prove it or lose it” mentality, where CMOs lose budget if they can’t show performance lift.

Communicating the importance of marketing at board meetings, and providing decision-makers with the right information to give them confidence, are critical tasks for marketers -- but difficult. One study found that only 26 seats in the Fortune 1000 were held by former CMOs, with the majority focused more on finance and industry expertise. This often leaves CMOs feeling like they’re speaking a different language from the rest of the team.

CMOs need to bridge the communication gap, and CFOs can become a valuable resource for doing it.

Work with the CFO early and often.From their understanding of the company’s “ideal customer profile” to the data and technology that works best for demand generation marketing, CMOs are experts. However, these details are often lost on board members, so it’s better to focus on topline goals and broader strategies.

CMOs can benefit from forging a closer relationship with their CFO well before the board meeting. The CFO talks regularly with board members and usually has a sense of what elements are most important to convey. With these regular meetings, CMOs have time educate the CFO on complex details that go into a marketing plan. And the CFO can work with marketing leaders to make sure they’ve got a solid measurement strategy in place.

When it comes time to present to the board, the CFO will know enough to help the CMO “level up” the conversation to the most vital details, showcase measurable results, and connect marketing to elements the board cares about most.

Learn “board speak.”Every board is different. A private tech company might have a board that includes successful entrepreneurs and technology experts. A company owned by a private equity firm will have a board of financial experts. Knowing the areas of expertise and priorities of the different board members can help marketing leaders with their communication.

Once marketers identify the board’s focus, presenting marketing as an integral part of the strategy can help marketers narrow down their story to the elements that are most relevant.

Data is usually a key to communication success. Examples of direct connections between marketing activity and a key company goal creates a clear picture of the marketer’s value.

Finally, CMOs need to avoid setting expectations that could end up biting them. Board meetings happen only once per quarter, and board members don’t have a lot of context. Showcasing a daring new branding campaign or promising to complete a data integration by the next board meeting can set the marketer up for trouble.

Remember, board members are people, too. Finding the data and details that work best to create a connection gives board members confidence in the CMO.