why, what, and of how marketing measurement
TRANSCRIPT
Why, what, and how of marketing measurement
March 2013
Why?
Proactive, integrated measurement leads to insights that:• Assess the value, focus and precision
of campaign and overall progress.• Benchmark performance.• Gauge market trends.• Evaluate target audience
information.
Insights then allow for
optimal alignment of marketing activities with corporate objectives and strategic goals, not just those for marketing..
Gains include:• Defining better strategies.• Optimizing spend.• Making better decisions.
What?
Measurement is only the starting point.The real goal isn’t collecting data. It’s gaining
.actionable intelligence.
That is, that will drive making better business decisions and improving marketing
effectiveness.
insights
The best analysts have
bolstered with horizontal business
expertise.
They show the story behind the
numbers.
interpretation excellence
Activities Reach Relevance / Impact Outcomes Worth
What activitieswere performed
to achieveresults?
Did you reachyour audience?
How manyimpressions,web visits,
reports,attendees, etc.
weregenerated?
Were yourelevant to youraudience? Were
you credible? Did your ideas and
messages resonate? Did you
drive conversation?
What business results did you
achieve? Awareness?
Engagement?Reputation?
Leads? Sales? Loyalty?
Advocacy?
What is the estimated dollar
value of your communication
efforts? What was the ROI?
Quantity/Output Quality/Outtakes Business Impact Value/Efficiency
Here’s the marketing measurement vision…
How?
9
• Build a benchmark system incorporating industry standards with your own spin on important marketing activities needing insights.
• Goal is to provide overall guiding principle(s) for marketing measurement.• Bonus – Benchmark marketing forecasting
for modeling revenue forecasts.
1. Establish best practices for measurement.
• Determine the right technology platform to support your measurement practice.
• Look for solutions that will facilitate attributing marketing results across multiple customer touch points and campaigns.
• Recommended: Integration capabilities into CRM system.
2. Determine the right supporting technology.
• Automation Must-Haves:
• Centralized marketing database.
• Time series analytics (trending of historical data). Must hurdle big data challenge and be able to store data for at least 1-2 years.
• Basic reporting for non-analysts (Dashboards best for ease of use, build custom report builder, etc.).
• Advanced reporting and dashboards for in-depth business analysts (spreadsheet-like and charts are most effective.).
• Data export capabilities to Excel and Access.
2. Determine the right supporting technology.
• Visualize the right metrics mix of:• Traditional marketing metrics (ad metrics,
PR metrics, direct mail/email, etc.).• Web metrics.• SEO metrics.• Social monitoring and metrics.
2. Determine the right supporting technology.
• Goal is to link marketing outcomes to business results to assesses the value, focus and precision of marketing campaigns and activities.• Must understand business objectives so you
know what the relevant business outcomes are.
3. Define campaign-specific measurement plans
• Design marketing campaigns to be measureable.• Define marketing activities/processes along
entire marketing activity life cycle for campaign. Plan for measurement throughout.
3. Define campaign-specific measurement plans
• Plan for determining ROI: • Define Key Performance Indicators that
support campaign success based on • Marketing operations, • Social analytics, and • Business results.
3. Define campaign-specific measurement plans
• Determine how you will measure marketing results and how you will convert those into business results.• Ex. of marketing results: Increased awareness,
higher web visitations.• Ex. of business results: Increased sales
revenues, lower customer acquisition costs.
4. Determine measurement framework
• Avoid measurement pitfalls:• Vanity metrics (“Feel good” metrics with no ties
to business results).• Quantity without consideration to quality.• Efficiency without consideration for
effectiveness.
4. Determine measurement framework
• Take active role in revenue forecasting.• Design measurement to forecast your
company’s revenue by modeling how marketing leads will convert to sales over time.
5. Bonus – Marketing forecasting
Measurement challenges
Challenge – Information hoarders.Solution – • Create a shared vision.• Foster a culture that recognizes information sharers
as valuable subject matter experts. Reward collaborators with:• Financial incentives.• Personal incentives.
• Keep people focused.
Solution – Use Measurement to turn marketing into revenue center from cost center. Show how revenue contributions will outpace spending.
Challenge – Budgetary – How do we pay for measurement?
Closing thoughts
If you want to: Define better
marketing strategies that align with corporate objectives.
Design more effective marketing tactics.
Optimize spending. Make better
decisions….
…then it’s time to build marketing
measurement into your activities…
…or use an agency with a strong measurement
practice.
Who?
For other clients, she defines technology requirements that will heighten business effectiveness.
Kathy Herrmann builds better businesses.
She propels businesses as a T-shaped pro with vertical penetration in diverse types of data analysis and horizontal experience in marketing, sales, customer service, and operations.
For some clients, she improves business performance by providing results-focused data insights into customer activity and behaviors, or into operational activities.
