Why the CFO Should Be Funnel Savvy
The revenue funnel isn’t the sole domain of sales or marketing. CFO’s should be as familiar with their company’s funnel structure and metrics as any sales executive or marketing executive. Here’s why.
1. Funnel modeling tools provide the best way for marketing, finance, and sales to talk the same language during planning and reporting.
2. The variables of the funnel make up the actual metrics of the revenue engine. These variables are the levers and dials over which management has control.
3. The funnel, over time, enables the sales forecast to be made with higher and higher degrees of accuracy.
4. Requests for more resources from Marketing and Sales can in part be justified or refused based on funnel economics
CFO’s should be trained in the use of sophisticated funnel modeling tools right along side their marketing and sales colleagues.
An excellent source of this training is the FunnelAcademy(tm), which includes comprehensive training on sizing a funnel and measuring progress. It also includes the most robust funnel modeling tool I’ve ever had the pleasure to use.
Chuck Besondy is a principal at One Accord Partners and is co-author of Leadership on Demand: How Smart CEO’s Tap Interim Management to Drive Revenue. You can read more about Interim Sales and Marketing Management by Chuck Besondy at his blog The Sales Funnel Fanatic.
