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