A focus on the top line and customer experience (CX) has increased in importance as companies seek out innovative growth opportunities. But a collaborative relationship between CFOs and chief marketing officers (CMOs) is lagging at many organizations.

The report Marketing and Finance: Fueling Innovation or Falling Behind?, released on Sept. 20 by the CMO Council and KPMG LLP, delves into the friction between the two departments. 

“There’s this expectation in digital that everything is easily measured, and it’s just not,” Nadine Guglielmetti, VP and general manager of marketing at The Vitamin Shoppe told the CMO Council. “This is where I think some of the friction happens between marketing and finance and other roles.”

A survey found that less than half (45%) of CMO-CFO partnerships are “willing” to collaborate on investments, goals, and metrics, and just 22% are “very willing.” Meanwhile, 33% are indifferent or hesitant. Among CMO-CFO partnerships that are indifferent or hesitant to collaborate, only 27% are satisfied with their ability to innovate.

“It is true that CX and CLV [customer lifetime value] measures, frequently underpinned by things like Net Promoter Score, are becoming more crucial to companies’ growth strategies,” says Jason Galloway, principal and US Customer Advisory COE Lead, at KPMG. “However, marketing frequently does not get the credit it is due in driving those measures. This stems from marketing’s inability to have a clear picture of what it is spending money on, and how that spending impacts the KPIs the CFO cares about.”

The research found the top three most important areas for marketing-finance alignment are: data-driven decision making (including visibility into leading and lagging indicators), long-term investment strategy, and customer lifetime value. 

But then the question arises: Who owns the customer data? Just 26% of respondents say customer data is co-owned and shared seamlessly between marketing and finance. Twenty-two percent of marketers admit customer data is primarily owned by marketing with limited access to finance. And 31% say the data is owned by a separate function and shared seamlessly between marketing and finance, while 17% say it’s owned in silos and not shared across functions. 

The findings are based on a survey of over 275 marketing leaders across industries and geographies, and in-depth interviews with marketing executives. The report recommends integrating customer data across marketing, sales, and finance, and giving the CFO visibility into what they are approving investment for. 

But there are CFOs who’ve been successful in creating a collaborative bridge between finance and marketing, like e.l.f. Beauty CFO Mandy Fields. She told me earlier this year, “I’m super involved in marketing. I’m the BFF to our CMO.” In August, the company reported 18 consecutive quarters of growth.

Have a good weekend.

Sheryl Estrada
sheryl.estrada@fortune.com

Leaderboard

Some notable moves this week:

Scott DeGhetto was named CFO at Hawaiian Electric Industries Inc., effective Oct.1. DeGhetto will take over from Paul Ito, who will become CFO of Hawaiian Electric Industries’ utility. Ito is replacing the utility’s current CFO, Tayne Sekimura, who will retire on Sept. 30. DeGhetto most recently served as managing director of power, utilities and renewable energy at Moelis & Company.

Kate Thomson was named interim CFO at oil and gas company BP p.l.c. Murray Auchincloss, the company’s CFO since July 2020, has taken on the role of interim CEO. Thomson is currently BP’s VP of finance for production and operations. She has worked at the company for 19 years, previously holding several senior financial roles, including group treasurer and head of group tax. 

Bryan Castellani was named EVP and CFO at Warner Music Group Corp. (Nasdaq: WMG), effective Oct. 16. Castellani succeeds WMG's long-time CFO Eric Levin, who is retiring. Castellani was previously EVP of finance for Disney Media and Entertainment Distribution. Before that, he served as EVP and CFO of ESPN.

John Gardiner was named CFO and COO at Pantheon, a SaaS-based website operations platform. Gardiner has more than 30 years of experience. He previously served in leadership roles including ZoomInfo president and CFO at Sitecore.

Tom Vadaketh, EVP and CFO at Bausch Health Companies Inc.(NYSE/TSX:BHC) resigned from his role to pursue another opportunity, effective Oct. 13. The company has initiated a formal search process to identify Vadaketh's permanent replacement. If a successor isn't in place before Vadaketh's departure, the company intends to appoint John S. Barresi, who is currently serving as the SVP, controller and chief accounting officer, to the role of interim CFO. 

Olga Tsokova was named CFO at Manufacturers Bank, a subsidiary of Sumitomo Mitsui Banking Corporation (SMBC) Americas Holding Inc., a member of the SMBC Group. Before joining Manufacturers Bank, Tsokova served as EVP and deputy CFO and chief accounting officer at First Republic Bank (currently part of JPMorgan Chase).

Stephen D. Yarad was named CFO and treasurer at AlTi Global, Inc.(Nasdaq ALTI), a global wealth and asset manager, effective immediately. Yarad joins AlTi from MFA Financial, Inc., where he served as CFO and treasurer. Before joining MFA, he was an audit partner in the New York financial services practice of KPMG LLP.

Big deal

From mid-August through Sept. 14, three retailers filed for bankruptcy protection, while the median default risk fell, according to S&P Global Market Intelligence data.

Pegasus Home Fashions Inc., a home products manufacturer, Noble House Home Furnishings, LLC, a furniture company, and women's apparel retailer Triad Catalog Co., LLC all filed for bankruptcy during the mid-August to mid-September period. Noble House Home Furnishings announced it had entered into a definitive agreement with GigaCloud Technology Inc. on Sept. 12 with plans to sell its assets for $85 million.

As of Sept. 14, 22 retailers have filed for bankruptcy in 2023, more than the yearly totals for 2021 and 2022, according to the report. 

Courtesy of S&P Global Market Intelligence

Going deeper

Here are a few Fortune weekend reads:

"Goldman Sachs has found the secret to a successful IPO listing: Here are the two traits investors need to look for" by Eleanor Pringle

"Mergers and acquisitions are becoming more science than art as CEOs turn to AI for answers" by Andrea Guerzoni

"Housing market affordability is so strained that this Fortune 500 homebuilder is offering a fixed 4.25% mortgage rate in some communities" by Lance Lambert

"Elon Musk thrives in a state of ‘war,’ according to his new biography. One expert says the world’s richest man may be addicted to risk-taking" by Alexa Mikhail

Overheard

"Despite the staggering innovation all around us, AI is still in its infancy. If we hope to continue to benefit from the promise of AI, we need to focus considerable time and energy on addressing the risks."

—Chris Hyams, CEO of Indeed, writes in a Fortune opinion piece on how AI is changing the way we find jobs and how we work.