Digital transformation continues to gain momentum, permeating corporations and organizations of all types and sizes, and deploying across functional areas. Digital transformation is defined as the use or adoption of technology, software and systems to improve and automate processes. The promise of Digital Transformation is disruption, new business models, productivity, cost savings, speed, and ideally improved financial results.
Back to our title, like other functional areas, digital transformation is embraced by marketing and finance; providing new opportunities for collaboration between previously “siloed” or even adversarial departments. Following are details on how marketing and finance can collaborate, along with the Top 10 Marketing key performance indicators (KPIs).
Today, marketing technology (MarTech), marketing automation, and Customer Relationship Management (CRM), supports detailed and timely reporting including analytics, sales conversion data, return on marketing investment (ROMI), and other KPIs (Top 10 Marketing KPIs below). While finance and accounting employ Business Intelligence (BI), Financial Planning & Analysis tools (FP&A), and other tools that support advanced sales and profitability analysis.
Before digital transformation, marketing and finance collaboration may have been limited to budgeting, forecasting, annual or perhaps strategic planning. Finance likely viewed marketing as a cost center.
With digital transformation, marketing and finance can more thoroughly integrate marketing, business, financial, and strategic planning. Marketing and finance can meet and report frequently, sharing real-time information. Marketing and finance can work as a team, investing in marketing programs and campaigns that achieve key performance indicators (KPIs), and reducing or eliminating initiatives that do not “measure up”. Let’s take a look at some of the top KPIs.
Top 10 Marketing KPIs
- Sales conversions
- Lead registrations
- Return on Marketing Investment (ROMI)
- Website analytics: unique visitors, traffic sources, bounce rates, etc.
- Email: open rates, click through rates (CTRs), bounce rates
- Paid Search: cost per click (CPC), sales conversions
- Search engine optimization (SEO): Domain Authority, keyword rank, etc.
- Social media listening and analytics
- Average Sales Cycle
- Customer Acquisition Cost (CAC)
Marketing and Finance Collaboration Roles and Skills
Modern marketing employs analytics, tests and optimizes campaigns, and reports on KPIs to accounting and finance teams to truly collaborate on achieving mutual objectives. This is typically the role of the Chief Marketing Officer (CMO), VP Marketing, or Marketing Director.
On the finance side, the roles might include the Chief Financial Officer (CFO), Controller, or Vice President titles. Modern Marketers and Contemporary Controllers, working together via digital transformation.
Where do you get these skills? Marketing curriculums increasingly offer digital certifications. In accounting and finance, continuing education and professional certification is often required. Member associations like the Controllers Council, have programming and resources that support digital transformation.