Neustar Research Reveals Lack Of Collaboration Between Finance And Marketing Departments

Neustar, Inc. (NYSE:NSR), a trusted, neutral provider of real-time information services, today released the findings of a commissioned study conducted by Forrester Consulting, which discovered that many companies lack collaboration between their marketing and finance departments. Although marketing and finance recognize the value that improved collaboration can have, both departments view the business in vastly different ways and lack alignment on key metrics. This research is particularly insightful as improved collaboration between marketing and finance could drive greater marketing efficiency and improve overall business results.

In today's fast-paced business environment, a disconnect in objectives between marketing and finance can not only hinder collaboration, but also result in missed opportunities with better reaching customers and achieving business goals. Recognizing the need to work together, 78 percent of respondents said it is very or critically important that marketing and finance teams are aligned on business objectives, including revenue growth and profit margins. Yet only 15 percent of executives said marketing and finance plan and work collaboratively toward shared goals. Even more striking, only 36 percent of companies considered their marketing KPIs and overall business KPIs to be very well connected.

According to the research, the heart of the disconnect stems from a lack of mutual understanding of each department's actual charter and top-down processes. For example, 41 percent of companies said that marketing budgets are determined by the finance team based on a derived number from the revenue/earnings goals, which can be a frustrating way to devise marketing budgets for marketers. The lack of a shared language and metrics continues to create extreme challenges for CMOs and CFOs, as does the increasing amount of data points across people, places and things. Most executives cited difficulties in integrating systems that track marketing campaigns with systems that track business results as a top challenge hindering collaboration. CMOs have a unique opportunity to demonstrate the business impact of effective marketing but only if the right tools, technology, and people are in place.

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