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.

2 replies
  1. Ken Kaufman
    Ken Kaufman says:

    I completely agree. The ability for a CFO to really understand and accurately forecast the marketing and sales processes mandates their deep understanding of and participation in the sales funnel model!

  2. Bruce Lyman
    Bruce Lyman says:

    Not sure how it is that CFO could ever not be included in the funnel process. The sales/marketing/finance heads all need to be around the same table with the same toolset aiming at the same objectives. On the other hand beware the CFO that wants to make the funnel his exclusive tool.


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