When Creativity Meets Numbers: Do Marketers Need to Be Financially Literate?

When Creativity Meets Numbers: Do Marketers Need to Be Financially Literate?

Marketing is an industry where your creativity is your biggest asset. But no matter how great an idea you come up with, you must be realistic and practical about its execution.

Especially when bringing ideas to the boardroom, you must be confident in your budgets, resources, and finances. Otherwise, you risk losing all credibility.

So, how can marketers make a better impression on the people who control budgets? One growing area many marketers can improve upon is “financial fluency.” 

Financial fluency has become an essential ingredient to successful marketing. Read on to discover why knowing the ins and outs of your figures can help elevate your next campaign.

Just what is financial fluency? And why is it essential now?

Financial fluency is understanding how money works. This includes skills like managing cashflows, making safe investments, and learning to budget.

Without a proper financial structure, a business is sure to fail. It will have an uneven balance sheet or unstable cash flow, overspend, or become a victim of a financial scam.

Financial fluency is particularly important in marketing, as it focuses you on making a good return on investment. Despite the usefulness of such skills, there seems to be a distinct lack of them within the industry.

A survey by Marketing Weekly found that 69% of marketers think there’s “room for improvement” with financial fluency. One in five reportedly said they found a lack of skills a major industry issue.

So, how can financial fluency benefit marketers? And why should it become a priority for you in the future?

Four benefits to better financial fluency in marketing

Every business, especially marketing, can greatly benefit from improving its financial fluency. The four core benefits include:

  1. Trustworthiness and credibility

A marketer’s primary job is to convince customers to invest. But to get that far, it’s important to convince key stakeholders of their business. They won’t fund or support your ideas and vision if they can’t follow them.

A solid financial foundation is one way to make a great impression. Better financial fluency will make you seem trustworthy. Senior officials will take you seriously. Your marketing team will also be able to share in and add to your vision.

An easy way to improve upon this is knowing your business’s current financial state. You should also forecast future cash flows for the months ahead. Your budgets should be reasonable and practical, with concrete reasons behind each figure. Investors will be reassured you can deliver a return on investment.

  1. Professional development

Financial fluency is fast becoming a sought-after skill in the workplace. For marketers looking to stay relevant, now is the time to upskill. Experts predict a 16% increase in demand for finance skills by 2028.

Getting a firm understanding of financial concepts is key to futureproofing your career. You should manage budgets according to the letter and mitigate financial risks. This can help you remain competitive and react to emerging trends within marketing.

  1. Better decision-making

Marketing can be a volatile industry, where things change overnight. Appreciating how money works can also help marketers take better financial risks. This, in turn, leads to better marketing decisions.

For example, studying financial data in your niche can help you promptly shift your campaigns. This can mean readjusting your budget to reduce spending or even pausing a campaign to rethink a strategy.

Moreover, having a clear financial understanding can help you seize new opportunities. You may notice a change in the price of services or recognize an influx of capital. New funds could be used to support areas of marketing campaigns that show the most promise.

  1. Reduced susceptibility to financial scams

Another part of basic financial skills is learning about emerging financial fraud. Scammers target marketers to steal money and sensitive information about campaigns.

Scams can include phishing attacks that trick marketers into giving away financial information. Or marketers might simply be overcharged for services, adding unnecessary budget costs.

Improving financial fluency means marketers can be aware of “deceptive practices.” They can bolster the security of their business accounts and recognize untrustworthy communications. This will protect the business from a costly attack.

Some final thoughts on financial fluency

Marketing must be sensible to be effective, and it must be reasonable to be investable. The best ways to do this are to base your ideas on financial facts and improve financial fluency.

Financial fluency is all about knowing how money works and how best to use it. Improving these concepts will make you more competitive and confident in your work. You’ll also be able to manage financial risk and also avoid common financial scams. Best of all, you’ll futureproof your career for the changing times ahead.

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