Eric Westerkamp, CEO at CaliberMind, discusses the widening gap between CEOs and CMOs in B2B, challenges in demonstrating marketing's value to sales, navigating ROI hurdles, building trust through data-driven decisions, and exploring correlations in marketing activities on online advertising platforms.
Marketers struggle to show impact on revenue; need to bridge gap between CEOs and CMOs.
Collaboration between sales and marketing is essential; aligning activities with revenue generation is crucial.
Deep dives
Growing Gap Between CMOs and CEOs
The growing gap between CMOs and CEOs is attributed to the increasing data-driven nature of organizations, particularly tech firms. CEOs and CFOs heavily rely on data for decision-making, focusing on metrics like net revenue retention and gross revenue. This data-driven approach contrasts with the challenges faced by marketers in showcasing the effectiveness of their strategies, especially in linking marketing efforts to revenue growth. The trust issue between CEOs and marketers arises from the difficulty in providing concrete data-driven evidence of marketing's impact on financial outcomes.
Alignment Between Marketing and Sales
Historically, marketing and sales operated in silos with defined funnels, leading to limited interaction between the two functions. However, recent trends have blurred these boundaries as tasks like outbound email campaigns have shifted towards sales teams. The challenge lies in effectively connecting the various marketing activities with lead generation and sales conversions, highlighting the need for better alignment and collaboration between marketing and sales teams. Marketers struggle to demonstrate the holistic impact of their efforts, particularly in translating activities into tangible revenue outcomes for sales representatives.
Challenges in Demonstrating Marketing ROI
Measuring marketing ROI presents significant challenges, especially in comparison to sales metrics that are more straightforward to calculate. The concept of top-down ROI, where marketing budgets are tied to specific channel efficiencies and revenue projections, is complex for marketers to execute. Demonstrating bottom-up ROI by tracking individual channel costs and efficiencies is hindered by factors like personnel and agency expenses. The disconnect between CMOs and CFOs stems from the difficulty in aligning marketing metrics with revenue goals and establishing a clear understanding of how marketing investments contribute to overall financial performance.
Eric Westerkamp, CEO at CaliberMind, joins our host, Camela Thompson, Go-To-Market Thought Leader and B2B Insights Expert, in this episode of the Revenue Marketing Report. Eric shares why marketers aren’t trusted by the CEO and what they can do to bridge the gap.