In the past, the marketing and accounting functions within a company were not frequent collaborators save the annual budgeting or forecasting process. Today, thanks to technology, software and systems, marketing and accounting teamwork is not only possible, but effective.
Similar to other functional areas, digital transformation is deployed by marketing and accounting, supporting teamwork between functions that were perhaps working against each other. Following are examples of marketing and accounting collaboration along with a list of the Top 10 Marketing Metrics.
Now Marketing Automation (MA), allows for timely reporting including website analytics, sales conversion measures, and ultimately Marketing Return on Investment (MROI), and other metrics (view Top 10 Metrics below). Meanwhile accounting and finance employ Financial Planning & Analysis tools (FP&A), Business Intelligence (BI), and other software to deliver in-depth analysis and reporting.
Without system and process automation, marketing and accounting collaboration may have been limited to forecasting and budgeting. In the past, it’s fair to state that accounting viewed marketing merely as a cost center.
With system and process automation, marketing and accounting can more thoroughly integrate marketing, business, financial, and strategic planning. Marketing and accounting can collaborate by sharing real-time information, along with more frequent reporting. Marketing and accounting can work as a team, making decision on investments in marketing initiatives and programs that achieve key objectives, while reducing or eliminating campaigns that fall short of goals. Following are some of the Top Marketing Metrics.
Top 10 Marketing Metrics
- Sales revenue
- Sales lead registrations
- Marketing Return on Investment (MROI)
- Website analytics: visitors, pageviews, bounce rates, etc.
- Email metrics: open rates, click through rates (CTRs), unsubscribes
- Paid Search: cost per click (CPC), keyword rank, conversion rates
- Search engine optimization (SEO): Moz Rank, organic traffic, local SEO, etc.
- Social media engagement
- Sales conversion rates
- Customer Lifetime Value (CLV)
Marketing and Accounting Harmony
Modern marketing measures and reports analytics, tests and optimizes campaigns, and reports on key metrics to accounting and executive management in collaborative environment, focused on achieving mutual objectives. This is typically the role of the VP Marketing, Chief Marketing Officer (CMO), or Marketing Director.
For the accounting function, titles might include the Controller, Vice President of Accounting, Chief Financial Officer (CFO), or VP Finance. Marketing executives working with accounting executives with a common objective, often sales growth and profitability.
So how can marketing and accounting professionals attain the necessary skills to manage these increasingly digital processes? Marketers can be active in members associations like the Construction Marketing Association, and American Marketing Association, including professional certification. Accountants can participate in continuing professional education (CPE), and professional certification via CPA societies and member communities like the Controllers Council.
Additional Resources:
It’s Time to Bring Accounting into Marketing (BetterWayCPA.com)
Business Intelligence for Marketing – A Shiny New Silver Bullet (Modern Marketing Partners)
Marketing and Finance – From Adversaries to Allies (Chief Marketer)