Q5  Key marketing metrics
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Q5 Key marketing metrics

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    Q5  Key marketing metrics Q5 Key marketing metrics Presentation Transcript

    • KEY Marketing Metrics
      Simon Johnstone
      simon.johnstone@quali5.net
      www.quali5.net
      www.twitter.com/simonjohnstone
      +65.81834022
    • Takeaways
      Plan for Success
      Maintain Financial Records
      Measure Strategically
      Use the data to learn and change
      Sample – Internal Revenue Metrics
      Sample - Internal Effectiveness Metrics
      Continuous improvement
      Pipeline Forecast - Key to CxO Respect
      Checklist - What not to do
    • Plan for Success
      Approach
      Start with a complete marketing investment plan
      Get agreement from key stakeholders
      Focus on what the decisions the metrics will drive .. e.g. “improving ROI”
      Quantify goals expected outcomes / impact - (Keeps CFO off your back)
      Assign up front Marketing goals, internal benchmarks, targets, KPI's
      Step 1 – believe that the CFO’s PO justifies an answer to .. “If I get this money what would I expect to get back form this“
      Step 2 – establish an agreed ROI mechanism / template with CFO
      NB: Remember that ROI needn't always be +ve … depending on the objectives , but by establishing this – More likely to get CFO to support investment.
      Step 3 – use it routinely – each program should have an ROI Plan
      Document assumptions in a spreadsheet
      Having a spreadsheet before asking for money – means you are talking CFO language – this gives you credibility and ”air cover”
    • Maintain Financial Records
      CxO’s care about revenues & profits (external metrics)
      Identify key drivers
      Model
      Set targets up-front before spending money
      Use performance vs. targets to adjust goals
      P-D-C-A: continuous improvement cycle
    • Measure Strategically
      Pick Maximum 5 Metrics ONLY
    • Use data to learn & change
      More important to operationalize ROI in DNA of the marketing organization
      Intangibles, metrics and data just as important … - Marketing is not just about DG and Revenue – its about insight, direction and the future
      Gather other key internal data points. For internal consumption
      Communicate
    • Internal Revenue / Biz Outcome Metrics
      Quality Is Better than Quantity
    • Internal Effectiveness Metrics
      Quality Is Better than Quantity
    • Continuously Improve
      Communicate to all parts of the organization– via tools – what's learned, what's urgent, and what's relevant – what's coming next and what we will do next
      Weekly physical dashboard near a coffee machine…. Create the excitement
      Publish topline – bottom-line and intangible performance
      Alignment of Mktg objectives to company objectives
      Continue to work on refining these
    • Pipeline Forecast - Key to CxO Respect
      At sales & board meetings – most of the discussion is about sales forecasts… you need to be part of this discussion with sales
      Sales is good at forecasting short term – very bad at long term … ( e.g. top of funnel )
      Marketing should own the top of the funnel - this is a leading indicator of future sales success
      To do this – you need to model this and forecast what you see the future environment looking like – using data
      This is an area that I have some expertise in .. But I have not included this in this slide Deck – Better to discuss Face on Face
    • Checklist - What Not to do
      Do other metrics rather than business metrics
      Measuring what is easy
      Focusing on quantity and not quality
      Measuring activity not results
      Measuring efficiency not effectiveness
      Measuring cost –
      remember marketing is an Investment area not a cost Centre
    • Loyalty and Customer Profitability
    • It requires funds for both acquisition & retention
      Effect of Retention on Customer Profitability
      Cumulative Impact of Retention Focus
      5x
      Bain and Co : Credit Card Industry Example
      Average
      Great Retention