Isn't it time agencies, CMOs and the Finance departments all spoke the same language?

“Are you ready to launch ?? your brand to new heights? We all know that marketing is the backbone of the business, but does everyone else? (Absolutely NOT! We're looking at you, finance)

(Before I start, let me be frank about the above quote – it’s not mine, and there’s clearly a little more than just marketing that contributes to the success of any business).

It was only yesterday that I received this ‘opener’ in an email (aimed at the B2B category) and, as co-founder of Yolk Creative, a branding and advertising agency in London, I did question whether it’s time for those in the brand finance / procurement departments – who are responsible for holding on to those tight, tight purse strings – to receive less of a kicking from us creative / marketing lot. Tough gig, right?

Well, yes and no. But this made me think more about what are the main reasons for these departments – specifically in the B2B space – potentially seeing marketing investments as the corporate equivalent of throwing good money after bad? And, as agency folk, how do we assist the marketing department in their challenge to convince their ‘purse string holders’ that what they/we are proposing is for the greater good of their business?

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The 'frivilous’ factor

We are more than aware that the finance department is the guardian of financial responsibility and with hawklike eyes watch over every pound and penny rattling around the business. There is little room to be frivilous. And so, when marketing swan in requesting ￡￡￡s to develop a new brand campaign, build out new digital presence, splash it on bus sides, billboards, and the occasional YouTube ad, it’s enough to make finance break out in hives.

Procurement also shares this cautious nature, however with an added layer of thriftiness. Their job is to get the best deal possible, to negotiate every last detail down to the bone.

Communicating the financial value that a strong brand adds to a business means being able to speak their language and will avoid awkward procurement responses akin to the collective gasp of a roomful of tea connoisseurs who’ve just seen someone put milk in first. (Irrespective of the research carried out by Dr Stapley)

Failing that reach for the antihistamine.

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ROI. ROI. ROI.

If there’s one thing the finance department loves more than a good balance sheet, it’s a clear return on investment (ROI). And in all honesty, rightly so. It’s their bread and butter, the thing that justifies their very own existence. And from our perspective we are only as good as our last job, therefore should be collectively invested in driving good return for our client, or otherwise we’re not keeping up our side of the deal and fulfilling our role as that supporting agency.

But when it comes to marketing, especially B2B brand-building campaigns, working collaboratively to develop a balanced branding strategy that includes short-term performance and long-term brand building activities is paramount. Additionally, it’s important to establish measures that demonstrate ROI, ensuring that the value of brand-building efforts is clear and compelling. Sure, sales might increase, but was it really because of that marketing campaign, or was it just a lucky break? From a marketing+agency relationship perspective, it clearly all needs to point back to the former – luck is simply not measurable.

From finance’s perspective, if you can’t measure it, it might as well not exist. Brand equity, customer loyalty, and market perception might as well be fairy tales made up by us agency sort. In their world it’s all about the numbers, and marketing is sometimes unfairly seen as ‘the colouring in department’ – where everything’s a bit too fluffy.

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Permission to use the ‘C’ Word

No. I’m not going there!! Control.

Being in control, with no sudden surprises, is something that both finance and procurement will cherish more than presenting a positive year end profit and loss spreadsheet to their board.

Occasionally, marketing carry the reputation for being a bit ‘maverick’ with their unpredictable campaigns and last-minute requests, and suddenly the carefully controlled world of finance and procurement is flipped upside down – driving them into all sorts of spin.

Play them at their game. Create systems, agree on marketing/brand+agency processes to ensure that the company’s resources are managed efficiently and effectively. And manage every potential expectation throughout the whole process, and if that requires calling a meeting that includes finance and procurement – bloody well do so! ?

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Fear of the unknown

Let’s be honest, branding, marketing, advertising can seem like some sort of dark art, especially for those not in the know, or quite as close to it as others within the business. To some of those in finance or procurement – not all I may add – it can be a little like trying to explain Test Cricket to an American; there’s a lot of nodding and positive noises, but deep down it’s all a bit of a mystery - and nothing like baseball. It is imperative not to get caught up in ‘marketing jargon’ and ensure you not only understand ‘their language they use’, but converse in it too.

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Once bitten, twice ‘bye’

Everyone has baggage – you’re only as good as your last job (have I said that before ??)? – and for most finance and procurement departments, that baggage comes in the form of previous marketing disasters, or flopped campaigns (that haven’t hit the ROI metrics, for example). Maybe they’ve dealt with creative agencies who promised gold yet delivered them glitter.

These bad experiences hurt (and bloody hell do they three times more when budgets are tight and everything is under the microscope) and are hard to overcome, making them wary of any future marketing expenditures when marketing+agency comes knocking with that next big campaign idea. “Once bitten. Twice BYE!”, is a mantra that could be framed in many finance and procurement offices across the UK. They certainly won’t allow history to repeat itself, as they are already of the mindset that whatever is proposed is doomed to fail – it’s more than their jobs worth.

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Brands who saw the light

Despite my witterings above (some potentially a bit cynical – will leave that to you to decide), there are clearly numerous UK and global B2B brands (and of course B2C) that recognise the importance of investing in marketing and brand building.

Brand equity isn’t just some airy-fairy concept; it’s a tangible asset that can make or break a company. Volumes of evidence out there demonstrate if you don’t invest in branding, marketing or advertising – or simply drop your marketing - you’ll very likely experience a drop from your customer / consumer.

Howden, Wise, Xero and Salesforce didn’t become household names by accident - they invested heavily in marketing and brand building, understanding that these efforts would pay off in spades. (More to read about this in Chapter 6 of our opinion piece ‘How to make brands mean business’ – see download at end of this article)

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Finding Common Ground

So, where does this leave us? Are B2B finance and procurement departments in the UK set to view marketing with cynical suspicion forever and a day? Not necessarily, but I believe that the key lies in communication and collaboration.

With marketing+agency standing side by side they need to do a better job of speaking the language of finance and procurement - explaining the potential ROI in terms they understand, demonstrating the long-term value of brand building, and, importantly, owning up to the risks involved.

Whilst finance and procurement could benefit from loosening the reins just a little, acknowledging that ‘short-termism’ is not necessarily beneficial for a brand and that investments take time to bear fruit, and understanding that not all value is immediately measurable in pounds and pence.

In the end, it’s about balance. Brand building, marketing, and advertising are crucial to a company’s long-term success. So, while these departments may approach marketing investments potentially a bit too cautiously, let’s hope they also approach them with more open minds – one that recognises the potential for brand and business success when strategy blends with creativity.

Yolk Creative London Ltd's insights piece entitled ‘How to make your brand mean business’ explores how B2B businesses are increasingly waking up to the power of brand to support business growth.

?Find out who is making it work, why and by how much. And don’t miss the useful 6 unbranded slides at the end of the doc that will support the case for investing in brand.

https://thisisyolk.co.uk/how-to-make-a-brand-mean-business