Marketing has never really been able to prove its worth to the people who hold the budget.
It goes into the budget meeting, the finance director asks what we got for the money, and marketing can’t give a straight answer.
It’s not for lack of trying. It has gone after revenue for as long as I can remember, claiming the pipeline, taking the credit for the deals. But it can’t own revenue. Revenue gets closed by sales and booked by finance. So marketing ends up arguing for something it can’t hold, and it loses that argument every time. First to be cut, last to be defended.
I think it’s been chasing the wrong thing. There are two numbers marketing can actually own: what it costs to win a customer, and what that customer is worth. Most businesses still can’t put them on a page.
When you can, the whole conversation changes. You stop defending activity and start talking about money, which is the only thing the finance director was ever interested in.
I’ve come to think it’s the biggest gap in marketing. It’s what I write about here, and what the book I’m working on is about.
So, honestly. Could you tell your finance director today what it costs to win a customer, and what one is worth? Most can’t. If you can, I’d like to hear how.