Despite marketers’ attempts at achieving financial accountability, only 7% of senior-level financial executives say they are satisfied with their company’s ability to measure marketing ROI, according to survey findings from Carat’s Marketing Management Analytics (MMA) and Financial Executives International (FEI).
The FEI survey also showed that less than 20% of financial executives said they have full cooperation and an open dialogue with marketing in order to establish metrics. Less than 10% said their company had a separate budget allocated for measuring marketing effectiveness.
The nationwide survey, conducted in November 2006, also found that only one in 10 senior-level financial executives report confidence in marketing’s ability to forecast its impact on sales. The study surveyed 150 members of FEI, a worldwide association of senior corporate financial executives.
In contrast to the low level of satisfaction among financial executives, an April 2006 survey of senior-level marketers by MMA and the Association of National Advertisers (ANA) found that nearly one-fourth (23%) were satisfied with their company’s ability to measure ROI. Also, a quarter of the marketers surveyed said they were confident that they could forecast marketing’s impact on sales.
Attitudes of financial executives also lagged behind marketing executives’ regarding forecasting. Though one-third of marketers in the MMA-ANA survey agreed they could forecast the impact on sales of a 10% budget cut, only 16% of financial service executives expressed agreement with that statement.