CFOs are often skeptical, viewing loyalty as a cost center for customers who would buy anyway. To overcome this, brands must move beyond vanity metrics and use attribution models that directly tie every loyalty campaign and strategy to incremental revenue on the P&L statement.
Instead of demanding a large budget upfront, CMOs should partner with the CFO on a pragmatic, step-by-step journey. At e.l.f. Cosmetics, the marketing budget grew from 6% to 24% of net revenue over six years by proving the ROI of each incremental increase, building a strong case for continued investment over time.
The key to justifying brand marketing isn't a perfect dashboard, but internal education. A marketing leader's primary job is to explain to the CFO and sales team that buying decisions are not linear and are influenced by multiple, often unmeasurable touchpoints over time.
Loyalty isn't just about rewarding existing customers. A key, sophisticated metric is its ability to convert "category heavy splitters"—customers who shop across multiple brands in a category—by offering a superior, personalized experience that shifts their spending.
To prove brand's financial impact, connect it to the three core levers of Customer Lifetime Value (CLV). A strong brand lowers customer acquisition costs, increases retention, and supports higher margins through pricing power. Since aggregate CLV is tied to firm valuation, this makes brand's contribution tangible to a CFO.
Executives are indifferent to the philosophical nuances of new measurement models. To convince them to abandon legacy metrics like MQLs, frame the change around what they care about: cost of growth, CAC payback, EBITDA, and overall business risk, not just better marketing data.
Instead of justifying brand building as a defense against AI-driven commoditization, frame it as an offensive move that builds long-term value. A strong brand shortens sales cycles and increases customer lifetime value, directly impacting revenue and making it a proactive investment that resonates with CEOs and CFOs.
To justify creative budgets to a CFO, translate creative quality into hard metrics. Strong creative increases demand (lowering CAC), boosts retention (increasing LTV), and reduces the risk of costly cultural backlash (cost avoidance), positioning creativity as a core business growth driver.
To get buy-in from financial stakeholders, translate the 'soft' concept of brand love into hard metrics. Loved brands can command higher prices, maximize customer lifetime value, and reduce customer acquisition costs through organic advocacy, proving brand is a tangible asset.
Effective marketers speak the language of the C-suite. Instead of focusing only on customer empathy and brand resonance, they must translate those goals into concrete business metrics like a higher sales baseline or lower customer acquisition costs to gain internal alignment and budget.
To demonstrate value, platform teams must explicitly connect contributions to top-line business metrics. Use internal newsletters to show how a new service directly enabled an uplift in a key metric like Net Promoter Score, making the platform's ROI undeniable.