# How Predictive Marketing Analytics Empowers Financial Leadership
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-11-03
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How Predictive Marketing Analytics Benefit CFOs and Drive Growth
Meta Description: Discover how predictive marketing analytics can align finance and marketing, put customers at the centre of decision-making, and drive organisational growth
URL: https://financedigest.com/how-predictive-marketing-analytics-empowers-financial-leadershiphtml

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**Phil Crothers**, Chief Marketing Officer, BrightTarget

The role of the CFO is changing from “cost authority to business value architect”, as Accenture neatly put it [\[i\]](#_edn1). 73% of finance leaders say they’ve been more engaged with strategy over the past two years; financial management is no longer the CFO’s sole domain:

_“Finance 2020 – tomorrow’s digital finance organisation – is a radical departure from the status quo. It deals in analytics and forward-looking decisions to create value and [manage risk](https://www.financedigest.com/audit-finds-holes-in-ecbs-management-of-bank-credit-risk.html "Audit finds holes in ECB’s management of bank credit risk"). \[…\] It trades [reporting](https://www.financedigest.com/organic-fertilizer-market-where-should-participant-focus-to-gain-maximum-roi-exclusive-report-by-future-market-insights.html "Organic Fertilizer Market | Where Should Participant Focus To Gain Maximum ROI | Exclusive Report By Future Market Insights") the past for predicting the future.”_

[CFOs need](https://www.financedigest.com/cfos-need-to-embrace-todays-technology-for-tomorrows-success.html "CFOs need to embrace today’s technology for tomorrow’s success ") to add greater strategic value in order to become core decision-makers, responsible for driving organisational growth.

Right now though, three major barriers prevent finance executives from realising their full leadership potential, which can be solved through the adoption of [predictive marketing analytics](https://www.financedigest.com/predictive-analytics-a-new-way-of-insuring-success.html "Predictive analytics: a new way of insuring success"). Focus on these three main benefits for CFOs..

- **[Predictive marketing analytics](https://www.financedigest.com/transportation-predictive-analytics-and-simulation-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Transportation Predictive Analytics And Simulation Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027") align Finance and Marketing**

Traditionally, the [finance and marketing](https://www.financedigest.com/digital-marketing-for-finance-and-insurance-firms-is-changing-are-you-ready.html "Digital marketing for finance and insurance firms is changing — Are you ready?") relationship has been a difficult one. This prevents the fruitful collaboration needed to [drive growth](https://www.financedigest.com/increasing-adoption-of-ar-and-vr-in-gaming-expected-to-drive-growth-of-the-global-ar-and-vr-market-through-2025.html "Increasing Adoption of AR and VR in Gaming Expected to Drive Growth of the Global AR And VR Market through 2025"). As Forrester observes:

_“Marketing and finance share the goal of increasing [revenue](https://www.financedigest.com/sports-nutrition-market-share-revenue-and-average-worth-by-makers-shared-in-an-exceedingly-latest-analysis-report.html "Sports Nutrition Market SHARE, REVENUE, AND AVERAGE WORTH BY MAKERS SHARED IN AN EXCEEDINGLY LATEST ANALYSIS REPORT") but often have different perspectives and key performance indicators without a shared understanding of their relationship. In many cases, marketing struggles to demonstrate its value to the finance team, which results in underfunded marketing departments that can’t produce the business results finance leaders are most focused on.” [**\[ii\]**](#_edn2)_

Marketing feels they’re not getting recognition for their achievements. Finance [sees marketing](https://www.financedigest.com/the-avocado-oil-market-to-see-through-explicit-advancements.html "The Avocado Oil Market To See Through Explicit Advancements") as an endless cost centre. This is not an easy fix. Forrester [research shows 78% of respondents agree that marketing-finance alignment](https://www.financedigest.com/clear-aligners-market-competitive-research-and-precise-outlook-2020-to-2030.html "Clear Aligners Market Competitive Research and Precise Outlook 2020 to 2030") is vitally important, but only 15% feel that the two departments currently work together towards shared goals.

At the very core of this rift is an inability to measure the [impact of marketing](https://www.financedigest.com/the-impact-of-consumer-spending-on-the-market.html "The Impact of Consumer Spending on the Market") in wider financial terms. That’s where [predictive marketing](https://www.financedigest.com/predictive-analysis-to-be-one-of-the-pathways-of-the-aesthetic-workstations-market.html "Predictive Analysis to be one of the pathways of the Aesthetic Workstations Market") analytics steps in.

Advanced predictive creates a centralised metric that [brings marketing](https://www.financedigest.com/global-agricultural-equipment-market-will-bring-in-us-131-6-bn-by-end-of-2024.html "Global Agricultural Equipment Market will bring in US$ 131.6 Bn by End of 2024") and finance onto the same page: Customer Lifetime Value, CLV, which represents predicted lifetime revenue in quantitative financial terms.

CLV allows [marketing to see which accounts are most worth](https://www.financedigest.com/automotive-gas-charged-shock-absorbers-market-worth-will-reach-us-2-9-bn-in-2021-grow-at-overall-compound-annual-growth-rate-cagr-of-5-0-between-2021-and-2031.html "Automotive Gas Charged Shock Absorbers Market worth will reach US$ 2.9 Bn in 2021, grow at overall compound annual growth rate (CAGR) of 5.0% between 2021 and 2031") targeting so it can better focus its efforts, and in turn build a better business case for reinvestment; and finance can see exactly where revenue is coming from, through a clear, centralised dashboard. Finance [executives get complete future-based oversight of marketing](https://www.financedigest.com/surgical-hand-access-port-market-executive-summary-introduction-sizing-analysis-and-forecast-to-2028.html "Surgical Hand-Access Port Market Executive Summary, Introduction, Sizing, Analysis And Forecast To 2028") performance towards tangible financial goals – so they can make better decisions about the wider business.

- **Predictive [marketing analytics put customers](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view") at the centre of business decision-making**

Smart organisations understand the importance of a customer-centric business model, and prioritise metrics like customer loyalty as [key drivers](https://www.financedigest.com/packaging-and-textile-industries-key-driver-for-digital-printer-market-demand-2021.html "Packaging And Textile Industries : Key Driver For Digital Printer Market Demand 2021") for long-term profitability.

However, this customer-centric [business model has traditionally been at odds with the legacy finance](https://www.financedigest.com/is-it-risky-to-use-bridging-finance-for-my-business.html "Is it risky to use bridging finance for my business?") function. Finance [focuses on quantitative financial metrics like cost](https://www.financedigest.com/cost-of-living-in-focus-as-australias-election-race-hits-final-stretch.html "Cost of living in focus as Australia’s election race hits final stretch"), profit and revenue. There’s little space for metrics like customer loyalty within that model – which has held financial [leaders back](https://www.financedigest.com/to-get-employees-back-in-the-office-business-leaders-must-do-their-homework.html "To get employees back in the office, business leaders must do their homework").

[Predictive marketing](https://www.financedigest.com/urinalysis-market-is-predicted-to-experience-noticeable-growth-by-2024.html "Urinalysis Market is Predicted to Experience Noticeable Growth by 2024") analytics provide rigorous, quantitative metrics that can be trusted. Businesses can embrace a more customer-centric [approach that’s driven](https://www.financedigest.com/the-global-biological-drugs-market-to-be-driven-by-the-non-stoical-approach.html "The Global Biological Drugs Market To Be Driven By The Non-Stoical Approach") by, not detached from, firm financial insight.

- **Predictive [marketing analytics dissolve data](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-medical-tapes-market.html "Interoperability of data to accelerate the Medical Tapes Market") silos**

Data silos reduce visibility [across the business](https://www.financedigest.com/eliminating-financial-leaks-across-your-business.html "Eliminating financial leaks across your business"), stopping CFOs from developing a unified forward-looking narrative. CFO.com reports more than 70% of surveyed finance executives rank their biggest 2017 goal as supporting business decision-making – but over 90% say they need to do more with financial and operational data to help make those decisions [\[iii\]](#_edn3).

Predictive marketing analytics overcomes this hurdle by giving CFOs centralised oversight that transcends individual departments. This centralised data forms a unified narrative for the CFO to form insights that drive [business strategy](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate"). This narrative relies on Customer Lifetime [Value and allows unifying the business around](https://www.financedigest.com/industrial-flooring-market-is-anticipated-to-expand-at-a-cagr-of-over-4-during-the-forecast-period-of-2020-2030-to-be-valued-around-us-12-4-bn-by-2030.html "Industrial Flooring Market is anticipated to expand at a CAGR of over 4% during the forecast period of 2020-2030, to be valued around US$ 12.4 Bn by 2030") customer-centric goals. With these insights, CFOs can better allocate resources, better forecast, and even identify new [market possibilities](https://www.financedigest.com/antimicrobial-protection-additives-for-adhesives-market-incredible-possibilities-growth-analysis-and-forecast-to-2028.html "Antimicrobial Protection Additives for Adhesives Market Incredible Possibilities, Growth Analysis And Forecast To 2028").

The hurdles that prevent financial executives being better [strategic leaders are overcome with predictive marketing](https://www.financedigest.com/anti-snoring-devices-and-snoring-surgery-market-strategic-analysis-to-understand-the-competitive-outlook-of-the-industry-2024.html "Anti-snoring Devices and Snoring Surgery Market Strategic Analysis to Understand the Competitive Outlook of the Industry, 2024") analytics. The sector is picking up pace rapidly though, as Forrester validates with its June 2017 ‘Forrester Wave™: Predictive Marketing Analytics for B2B Marketers Q2 2017’ report [\[iv\]](#_edn4).

The comprehensive report, downloadable here, lends significant credibility to predictive, emphasising “Early PMA adopters are seeing their efforts turn into real, measurable results”.

[\[i\]](#_ednref1) Accenture Strategy, Finance 2020: Death by Digital

[\[ii\]](#_ednref2) Forrester, How Aligning Finance and Marketing Will Drive Business Success

[\[iii\]](#_ednref3) CFO.com, CFO’s Top Goal for 2017: Better Analysis and Reporting

[\[iv\]](#_ednref4)“ [BrightTarget Cited as a Strong Performer for Predictive Analytics for B2B Marketing”](http://www.brighttarget.com/forrester-wave-predictive-analytics-report/)


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