Your SlideShare is downloading. ×
Achieving the Marketing  Performance Advantage Improving Effectiveness & Accountability
Agenda <ul><li>Who are Chadwick Martin Bailey and CMG Partners? </li></ul><ul><li>The State of Marketing Performance Manag...
Chadwick Martin Bailey and CMG Partners CMG Partners  is a strategic marketing consulting firm that helps marketers get mo...
Marketing ROI to the Rescue? <ul><li>Business Intelligence, Dashboards, Marketing Effectiveness and their cousins have bee...
The State of Marketing Performance Management <ul><li>Based on CMG Partners and CMB Research with 400 CFO, CEO and marketi...
First, a Definition Marketing Performance Management (MPM): The disciplined practice of  effectively  measuring, learning ...
Lots of  interest in measurement… –  those that aren’t tend to have marketing models built on referrals Same number are at...
But very few are doing it well…or seeing impact Only ¼ believe it has had a positive impact on business results Among thos...
Many feel they don’t have the r ight  data and processes in place to make better marketing decisions “ We don't often tie ...
Many appear stuck in the basic measurement phase www.marketingperformanceadvantage.com
And Marketers may be Overconfident in Progress Only 13% of VP of Marketing believe that measurement is a huge challenge fo...
Why Invest in Marketing Performance Management? <ul><li>Given the struggles of many, why do Marketing Performance Manageme...
The Marketing Performance Advantage Companies who have truly invested in Marketing Performance Management are more likely ...
The Marketing Performance Advantage <ul><li>CMO tenure is longer than the average </li></ul><ul><li>Marketing plays a more...
MPM leads to better decision making at many levels Ways in which marketing performance management has improved businesses ...
Successful marketing performance management drives business success <ul><li>Those with successful MPM practices are more l...
What We Can Learn From These Companies That Are Truly Excelling <ul><li>Best practices for successful implementation and u...
Five Best Practices of Companies that Excel at MPM Index = 100 Best Practice #1: Build Senior Management Buy-In www.market...
Best Practice #1: Build Senior Management Buy-in <ul><li>What can we learn from these companies: </li></ul><ul><li>They be...
What Does This Mean for Your Marketing Performance Practices? Current Marketing Performance Practices Improved Marketing P...
Five Best Practices of Companies that Excel at MPM Index = 100 Best Practice #2: Align With Strategic Objectives www.marke...
Best Practice #2: Align with Strategic Objectives <ul><li>What can we learn from these companies: </li></ul><ul><li>Cross-...
Five Best Practices of Companies that Excel at MPM Best Practice #3: Make Targeted Investments Index = 100 www.marketingpe...
Best Practice #3: Make Targeted Investments in Technology, Data, and Skill Sets  <ul><li>What can we learn from these comp...
Five Best Practices of Companies that Excel at MPM www.marketingperformanceadvantage.com Best Practice #4: Clear Processes...
Best Practice #4: Establish Clear Processes to Ensure Insights are Being Used <ul><li>What can we learn from these compani...
What Does This Mean for Your Marketing Performance Practices? Process  is the bridge that turns Measurement Insights into ...
Five Best Practices of Companies that Excel at MPM Best Practice #5: Use Insights Beyond Marketing www.marketingperformanc...
How Are Organizations Using Marketing Performance to Drive Improvement in Areas Outside of Marketing? <ul><li>To increase ...
Best in Class Performers  www.marketingperformanceadvantage.com Use Using beyond marketing Process Ensuring action Select ...
Questions? www.marketingperformanceadvantage.com
Contact Information -- www.marketingperformanceadvantage.com Helping Companies Capture the Marketing Performance Advantage...
About this Research <ul><li>Details about the study on which this presentation is based </li></ul>
Sample and Methodology <ul><li>Population </li></ul><ul><ul><li>CFO, CEO and marketing employees of companies with 100+ em...
Most Respondents Come from Large Companies
Over Half (60%) are Marketing Managers or Directors of Marketing; 20% are C-Level
Almost Half Work in Both the B2B and B2C Space Other mentions include: Education, Entertainment, Transportation and Real E...
Examples of Marketing Performance Management in Action
How some clients have approached specific MPM Issues www.marketingperformanceadvantage.com Prior to the launch of a new ad...
How some clients have approached specific MPM Issues www.marketingperformanceadvantage.com A Latin American carrier wanted...
Upcoming SlideShare
Loading in...5
×

Getting the Marketing Performance Advantage

940

Published on

It’s no secret that marketing leaders and their organizations are under increasing pressure to demonstrate their value to their businesses, especially in today’s tough economic environment; the effectiveness of marketing efforts can prove the key differentiator in highly competitive markets.

So, what sets successful marketing organizations apart from their less successful peers? This landmark study surveyed more than 400 companies across a variety of industries and company sizes to determine some of the key attributes of successful marketing organizations, and to understand what marketing practices they have in play...

Published in: Business, Health & Medicine
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
940
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • “ The CEO needs to believe that marketing drives ROI.” SVP, CMO of regional bank
  • Starts with having data, but adds on the technology and having the right talent . EATON example: We have a client now supplying equipment to the data center world with very aggressive sales goals. However, the data that links prospects, to opportunities to closed orders to historic sales sits in the locked file cabinet of a grizzled 30-year veteran who sits in final product testing over in the plant – not anywhere near marketing. Here’s a company pursuing an $100M+ opportunity with data yet without the technology and skill sets to transform that data into meaningful insights. And yes – you are correct in assuming that senior level buy-in and strategic alignment was also lacking. But the ingredients are there – they just need to unlock, connect and use them. We have a client now supplying equipment to the data center world with very aggressive sales goals. However, the data that links prospects, to opportunities to closed orders to historic sales sits in the locked file cabinet of a grizzled 30-year veteran who sits in final product testing over in the plant – not anywhere near marketing. Here’s a company pursuing an $100M+ opportunity with data yet without the technology and skill sets to transform that data into meaningful insights. And yes – you are correct in assuming that senior level buy-in and strategic alignment was also lacking. But the ingredients are there – they just need to unlock, connect and use them. Strong measurement architecture to “filter out the noise” and guide technology requirements Involve marketing in the selection and implementation of CRM and ERP systems to ensure they meet marketing’s requirements Use of “dashboard” solutions to aggregate data and track marketing initiatives and results. Skill Set Hire talent from outside that bring experience and expertise in marketing analytics. Continuous training and education for the existing marketing team
  • Transcript of "Getting the Marketing Performance Advantage"

    1. 1. Achieving the Marketing Performance Advantage Improving Effectiveness & Accountability
    2. 2. Agenda <ul><li>Who are Chadwick Martin Bailey and CMG Partners? </li></ul><ul><li>The State of Marketing Performance Management </li></ul><ul><li>Why bother? </li></ul><ul><li>The Five Practices that Drive a Marketing Performance Advantage </li></ul><ul><li>Examples from the trenches </li></ul>www.marketingperformanceadvantage.com
    3. 3. Chadwick Martin Bailey and CMG Partners CMG Partners is a strategic marketing consulting firm that helps marketers get more out of their growth opportunities, customer relationships, and marketing investments. For over a decade, CMG has helped companies get more out of their marketing investments by using its marketing expertise to translate market and business insights into actionable programs and ultimately business results. Chadwick Martin Bailey is a top 50 custom market research firm that helps leading companies strengthen their brand position, identify new opportunities, drive customer loyalty, and optimize marketing initiatives.  CMB has over 25 years of experience using advanced market science to help companies build and track brands, determine and optimize the effectiveness of communications, and calculate the return on various marketing channels and campaigns. . www.marketingperformanceadvantage.com
    4. 4. Marketing ROI to the Rescue? <ul><li>Business Intelligence, Dashboards, Marketing Effectiveness and their cousins have been industry buzzwords for a while now. </li></ul><ul><li>They have buzz because they serve a self-interest of marketers – to demonstrate the value marketing delivers (or is it creates?) to and for their organizations. </li></ul><ul><li>CMG and CMB (yes, we’re two different firms) were curious about these elements: Outside of the noise are they actually creating an advantage in the marketplace for those who adopt them? </li></ul>www.marketingperformanceadvantage.com
    5. 5. The State of Marketing Performance Management <ul><li>Based on CMG Partners and CMB Research with 400 CFO, CEO and marketing employees of companies with 100+ employees interested in measuring the performance of their marketing initiatives </li></ul>
    6. 6. First, a Definition Marketing Performance Management (MPM): The disciplined practice of effectively measuring, learning from, and improving marketing strategies and tactics over time. www.marketingperformanceadvantage.com
    7. 7. Lots of interest in measurement… – those that aren’t tend to have marketing models built on referrals Same number are attempting to link marketing measurement to financial performance And few (only 18%) state that it is not a priority at the corporate level www.marketingperformanceadvantage.com 75% of all companies are highly interested in measurement 7% 21% 45% 27%
    8. 8. But very few are doing it well…or seeing impact Only ¼ believe it has had a positive impact on business results Among those interested in measurement, 3/4 are not using the info to its fullest www.marketingperformanceadvantage.com Only about 1/5 of all companies excel at marketing performance 7% 21% 45% 27%
    9. 9. Many feel they don’t have the r ight data and processes in place to make better marketing decisions “ We don't often tie the results of surveys to action plans” “ We don't have senior level buy-in due to the lack of hard data results against programs” “ Difficult to find talent who can think strategically and manipulate data” “ Each department works independently and does not team together” “ Not sure what the right data is and data gathered is not trusted” “ We tend to act more on gut and react quickly to changes/opportunities we see in the market. Don’t really have a formal insight gathering process” “ The process takes too long to implement any findings” www.marketingperformanceadvantage.com
    10. 10. Many appear stuck in the basic measurement phase www.marketingperformanceadvantage.com
    11. 11. And Marketers may be Overconfident in Progress Only 13% of VP of Marketing believe that measurement is a huge challenge for the organization, while 38% of marketing directors, and 61% of CFOs believe measurement to be a huge challenge “ A successful CMO must have a CFO counterpart who sees marketing as an ROI driver, not a cost driver.” VP of marketing, mid-sized manufacturer
    12. 12. Why Invest in Marketing Performance Management? <ul><li>Given the struggles of many, why do Marketing Performance Management? </li></ul>
    13. 13. The Marketing Performance Advantage Companies who have truly invested in Marketing Performance Management are more likely to be successful than those who have not….it truly does lead to a marketing performance advantage . www.marketingperformanceadvantage.com
    14. 14. The Marketing Performance Advantage <ul><li>CMO tenure is longer than the average </li></ul><ul><li>Marketing plays a more central role in the organizations’ strategy and execution </li></ul><ul><li>They are more likely to be market leaders, and to be gaining share </li></ul><ul><li>Most importantly – if you don’t, you are leaving $ on the table </li></ul>Companies who have truly invested in Marketing Performance Management are more likely to be successful than those who have not….it truly does lead to a marketing performance advantage . www.marketingperformanceadvantage.com
    15. 15. MPM leads to better decision making at many levels Ways in which marketing performance management has improved businesses www.marketingperformanceadvantage.com “ We no longer spend money just because someone wants to do something. We only invest where there is a commitment to drive results. ” “ We've had a continual increase in our revenue over the time measured.” “ We know which areas to focus on, for instance which events are most successful and can put more of our budget toward those areas.” “ It has encouraged better employee performance , and it has shown us the best ways to apply our promotional expenditures.” “ Refining the frequency and messaging based on customer behavior.” “ Better aligned goals across the organization; better results , both financial and membership gains as well as improved customer satisfaction . Best practices shared in our other locations.” “ Streamlined number of tactics, focusing on the ones that deliver best results. ” “ It leads to better marketing practices , allows us to get the most impact for our dollar and has allowed us to modify our publishing program to areas that are most profitable.”
    16. 16. Successful marketing performance management drives business success <ul><li>Those with successful MPM practices are more likely to be market leaders, and either maintaining or gaining market share. </li></ul>Market Share Market Position
    17. 17. What We Can Learn From These Companies That Are Truly Excelling <ul><li>Best practices for successful implementation and use of market performance measurement </li></ul>
    18. 18. Five Best Practices of Companies that Excel at MPM Index = 100 Best Practice #1: Build Senior Management Buy-In www.marketingperformanceadvantage.com
    19. 19. Best Practice #1: Build Senior Management Buy-in <ul><li>What can we learn from these companies: </li></ul><ul><li>They believe in marketing </li></ul><ul><li>Leadership is data and results driven </li></ul><ul><li>Culture of accountability </li></ul><ul><li>Strong marketing leadership </li></ul><ul><li>Ability to demonstrate results </li></ul>Of the companies that are seeing the most significant impact to their business… 71% have strong senior level buy-in and support for marketing performance management www.marketingperformanceadvantage.com
    20. 20. What Does This Mean for Your Marketing Performance Practices? Current Marketing Performance Practices Improved Marketing Performance Practices Cost efficient options Steps to Building Senior Management Buy-in www.marketingperformanceadvantage.com Incrementally Demonstrate Value 1 Educate through Benchmarking 2 Find an Executive Champion 3
    21. 21. Five Best Practices of Companies that Excel at MPM Index = 100 Best Practice #2: Align With Strategic Objectives www.marketingperformanceadvantage.com
    22. 22. Best Practice #2: Align with Strategic Objectives <ul><li>What can we learn from these companies: </li></ul><ul><li>Cross-functional planning </li></ul><ul><li>Strong internal communication </li></ul><ul><li>Marketing plan linked to financial plan </li></ul><ul><li>Personal goals and incentives linked to business goals and objectives </li></ul><ul><li>Measurement structure is aligned with the business objectives </li></ul>Of the companies that are seeing the most significant impact to their business… 80% excel at linking their marketing activities to strategic objectives of the company www.marketingperformanceadvantage.com
    23. 23. Five Best Practices of Companies that Excel at MPM Best Practice #3: Make Targeted Investments Index = 100 www.marketingperformanceadvantage.com
    24. 24. Best Practice #3: Make Targeted Investments in Technology, Data, and Skill Sets <ul><li>What can we learn from these companies: </li></ul><ul><li>Data & Technology </li></ul><ul><ul><li>Strong measurement architecture to “filter out the noise” </li></ul></ul><ul><ul><li>Involve marketing in the selection and implementation of CRM and ERP systems </li></ul></ul><ul><ul><li>Use of “dashboard” solutions to aggregate data and track marketing results </li></ul></ul><ul><li>Skill Sets </li></ul><ul><ul><li>Hire talent from outside that brings missing experience and expertise </li></ul></ul><ul><ul><li>Provide ongoing training and education for the existing marketing team </li></ul></ul>www.marketingperformanceadvantage.com
    25. 25. Five Best Practices of Companies that Excel at MPM www.marketingperformanceadvantage.com Best Practice #4: Clear Processes for Insights into Action Index = 100 Five Best Practices of Companies that Excel at MPM
    26. 26. Best Practice #4: Establish Clear Processes to Ensure Insights are Being Used <ul><li>What can we learn from these companies: </li></ul><ul><li>Marketing leaders focus on process development </li></ul><ul><li>The importance of process has seeped in the fabric and culture of the marketing team </li></ul><ul><li>Collaboration and teamwork across functions has enabled improved decision making </li></ul><ul><li>Discipline and accountability are norms </li></ul><ul><li>There is a thirst for continuous improvement …good is not good enough </li></ul>www.marketingperformanceadvantage.com
    27. 27. What Does This Mean for Your Marketing Performance Practices? Process is the bridge that turns Measurement Insights into Actionable Improvements Bridging the Process Divide www.marketingperformanceadvantage.com Measurement Insights Marketing Improvement At its most fundamental level, effective processes address: Who is involved Roles & Responsibilities Decision Framework Cadence / Timing
    28. 28. Five Best Practices of Companies that Excel at MPM Best Practice #5: Use Insights Beyond Marketing www.marketingperformanceadvantage.com Index = 100
    29. 29. How Are Organizations Using Marketing Performance to Drive Improvement in Areas Outside of Marketing? <ul><li>To increase alignment with finance in budget planning, and justifying spend </li></ul><ul><li>To drive new product development and improve service & support through timely market insights </li></ul><ul><li>To increase alignment with sales through better data, information, and communications </li></ul><ul><li>To improve the customer experience through improved operations, customer care, and marketing </li></ul><ul><li>To motivate employees by demonstrating wins </li></ul>Merchandising Marketing is helping to drive alignment and improvement across the organization: 3% 12% 9% 21% 17% 15% 9% 14% www.marketingperformanceadvantage.com
    30. 30. Best in Class Performers www.marketingperformanceadvantage.com Use Using beyond marketing Process Ensuring action Select Investments Vested in supporting tools and resources Strategic Alignment Measuring what matters Commitment Leadership Buy In
    31. 31. Questions? www.marketingperformanceadvantage.com
    32. 32. Contact Information -- www.marketingperformanceadvantage.com Helping Companies Capture the Marketing Performance Advantage Our joint CMG/CMB project teams combine the best in marketing science with the best in marketing strategy and operations expertise to help companies improve their marketing performance. Our professionals share a collaborative approach and a passion for helping clients tackle critical business opportunities. From coaching and feedback on how to tackle your big marketing measurement and management issues, to developing new, insight-driven strategies and tactics, we help companies get more from their marketing. Courtnie Ross Sr. Director CMG Partners Phone: (703) 289.9987 Email: [email_address] Rich Schreuer Senior Vice President Chadwick Martin Bailey Phone: (617) 350-8922 Email: RichS@cmbinfo.com
    33. 33. About this Research <ul><li>Details about the study on which this presentation is based </li></ul>
    34. 34. Sample and Methodology <ul><li>Population </li></ul><ul><ul><li>CFO, CEO and marketing employees of companies with 100+ employees </li></ul></ul><ul><ul><ul><li>Must be interested in measuring the performance of their marketing initiatives </li></ul></ul></ul><ul><li>Sampling Frame & Size </li></ul><ul><ul><li>Data was collected through an online research panel </li></ul></ul><ul><ul><li>Fielding took place in April 2009 </li></ul></ul><ul><ul><li>400 interviews </li></ul></ul><ul><ul><li>Questionnaire Respondents provided by e-Rewards Market Research </li></ul></ul>
    35. 35. Most Respondents Come from Large Companies
    36. 36. Over Half (60%) are Marketing Managers or Directors of Marketing; 20% are C-Level
    37. 37. Almost Half Work in Both the B2B and B2C Space Other mentions include: Education, Entertainment, Transportation and Real Estate
    38. 38. Examples of Marketing Performance Management in Action
    39. 39. How some clients have approached specific MPM Issues www.marketingperformanceadvantage.com Prior to the launch of a new ad campaign, we tested whether or not the bank would actually deliver its promises to customers through their experiences. The bank failed on one key promise - Partnering. Training programs were adapted and the promise was pulled from the campaign until delivery was assured. The Acquisition Marketing department wanted to be more efficient about how they targeted a key segment. An audit of existing acquisition marketing programs focused on determining the relative marketing performance of each program; each program was reviewed for customer mix, customer value, segmentation and of course ROI budget, as well as measurement methodology and experiment designs. As a result, the marketing department was able to cut underperforming programs and save $5.7MM of ineffective marketing spend and develop dashboards to track key performance indicators for future programs. Sprint also was able to improve their own analysis and measurement methodologies going forward for lasting performance improvements. Brown Forman wanted to determine if its Jack Daniels NASCAR sponsorship was delivering a positive ROI. Based on a marketing performance tracking study, we quantified the incremental sales generated by the sponsorship leading to an ROI calculation. We also identified changes needed in local activation to improve financial return.
    40. 40. How some clients have approached specific MPM Issues www.marketingperformanceadvantage.com A Latin American carrier wanted to understand differences in branding and marketing strategies across its four regional markets -- Brazil, Argentina, Peru and Mexico. A complete audit of each market’s brand strategy, marketing strategy, creative execution and measurement methodologies helped identify best practices, areas for improvement by market, and areas for greater efficiencies across markets (e.g. customer insight). A marketing communications effectiveness benchmark identified experiential driving events as having a strong impact on widening the bottom of the purchase funnel, and delivering a positive ROI. Based on the research, Mercedes Benz instituted an extensive campaign of varying experiential driving events. We used systematic measurement to identify the types of events with the strongest ROI and focus continuous efforts.

    ×