article | January 3, 2018
5 Ways a CMO Gains the CEO's Trust
The battle for budget dollars is heating up as Q1 begins. While many companies have locked down on their 2018 budgets, many have not. A surprising 3 in 5 companies will not have a finalized budget until the end of Q1. This means budget dollars are in flux and executives everywhere are engaged in the annual hyper-active horse trading that takes place to get what they need.
To prepare for a solid interaction with your CEO about the marketing budget, download the 20 CMO Budget Validation Questions checklist.
Marketing is typically the most underfunded, and in some cases starved, function within a B2B company. Unlike other functional leaders, CMOs struggle to show a return on invested capital (ROIC). This is true even though they have more tools and analytics than ever before. For most CMOs, it’s not a lack of tools that get in the way of demonstrating ROI or ROIC. Instead it boils down to sharpening their budgeting capabilities.
A recent study found that nearly two thirds of all CMOs still attempt to create and present budgets based entirely on qualitative inputs. “It feels right”, “everyone else is doing it”, and, “we just know” are a few of the comments spoken in board rooms as CMOs work to justify their budget requests. Of course, these meetings most always include two Chief Financial Officers, the current CFO, and the CEO, who 70% of the time was a former CFO. These personas operate with different challenges, objections, goals, and priorities than the CMO. For a CMO to be effective in securing his or her budget dollars, they must understand what’s important to their boss. Additionally, we strongly recommend the CMO establish a meaningful relationship with their CFO partner. Once crated, this serves as a force multiplier with the CEO.
Here are 5 ways a CMO can improve his/her relationship with the CEO to produce better outcomes:
Before meeting with your CEO, prepare for a solid interaction about the marketing budget. Download the 20 CMO Budget Validation Questions checklist.