There are many hurdles and challenges that modern businesses face, and business leaders are particularly struggling with the problem of department silos. A department silo is a department that is relatively detached from the rest of the organization, doing it own thing, delivering results, and not really bothering or interacting with any of the other teams.
Now, having a department silo in your company is not the worst thing, but modern business leaders should focus on boosting cross-department collaboration in order to deliver better results. Accounting is usually one of those departments that you can use to fuel other processes, especially sales, support, and digital marketing.
In fact, there is much more to the relationship between accounting and digital marketing than you might think. When brought together, these two departments can help you ensure business success in 2021 and the years to come. Here are the five key tips to fuel marketing through your accounting department.
Prepping and handling financial statements
First things first, it’s important to understand the processes in accounting that can fuel your marketing efforts. You’re primarily using accounting to ensure compliance, manage taxes and keep your books clean, of course, but you can also leverage the financial statements and reports to make smarter marketing decisions – more on these reports in a bit.
Given the fact that your accounting experts are prepping and analyzing all financial statements, they have a unique opportunity to scrutinize your marketing and sales processes from a different perspective. Your accounting experts can monitor the marketing trends and industry averages, keep track of all expenses and investments, and scale the cost of your marketing and advertising up or down accordingly. This ensures that you stay within your budget and break even every month.
Creating more detailed and insightful reports
To fuel your marketing efforts, you not only need to monitor your expenses and investments, but also leverage the insights generated by your accountants to make smarter marketing decisions over the long term. That said, your marketing department is already, or at least it should be, creating detailed reports of their advertising and various other marketing campaigns. These reports serve to infuse valuable data into the decision-making processes, and discover optimal ways to acquire and retain customers.
Now imagine how much more impactful these reports can be if your accountants were to weave their unbiased data into the reporting process. With their insights and calculations, you can completely change your approach to marketing, optimize your strategies, or at the very least automate parts of your digital marketing to optimize expenditure and output. To do this, though, you have to focus heavily on your marketing expenses.
Accounting can optimize marketing expenses
One of the most important roles that accounting has in your marketing processes is the optimization of financial expenditure. Firstly, your accountants need to identify all financial leaks in your company, and trace them to your marketing department. These experts can help identify the exact areas where marketing might be wasting money, which is imperative for optimizing your campaigns in the local market.
In Australia for example, one of the most competitive business environments, experienced accountants in Sydney and other high-value markets know how to analyze sales and marketing trends to go beyond the typical KPIs and determine exactly what marketing can do differently to become more profitable and impactful. Whether you are working with an in-house accounting department or an outsourced team, make sure to leverage their expertise to optimize marketing expenses better than ever before.
Maximizing the ROI of marketing campaigns
One of your top priorities should be to maximize the return on investment for all your marketing efforts, and you can only do that by acting on relevant and accurate data. While your marketers are more concerned about the overall impact of their campaigns and how many customers or leads you have generated, your accountants are more concerned about the broader ROI.
With the ROI report created by your accounting team and your marketing department, these teams can complement each other and identify opportunities in customer acquisition and retention. Given the fact that your accountants have a deep understanding on various performance metrics that your marketers might overlook, this is a unique opportunity to maximize the spending of your marketing dollars with minimal waste. In the short and long term, this means a higher overall ROI.
Evaluating the lifetime value of every customer
Last but not least, your marketing department is not only tasked with attracting leads, but attracting the best leads that have the highest potential. In other words, your marketers are always trying to maximize the lifetime value of each customer through their campaigns and their customer relationship management strategies and tools. What’s important to know is that accounting can help maximize and optimize this value for each customer.
With their unique insights and key performance indicators, accountants can identify customers with a low lifetime value, or a CLV that will pay off too slowly to be considered as a viable investment on your part. This can save marketing a lot of time and effort, and help shift their campaigns towards more lucrative prospects and opportunities. Your accountants can help set up baselines and KPIs for the lowest feasible customer lifetime value, which will allow you to identify lucrative leads from the start, allowing you to invest in developing them or move on to other prospects.
In the end, it’s easy to see that accounting and marketing can be the ultimate duo if your goal is customer acquisition and retention. Be sure to leverage the power of your accounting team to craft better marketing strategies and take your business forward this year.