Marketing Effectiveness Measurement replaces Budget Envy
Report
Paul LaughlinFollow
Feb. 26, 2015•0 likes•1,264 views
1 likes
Be the first to like this
Show More
views
Total views
0
On Slideshare
0
From embeds
0
Number of embeds
0
Check these out next
Marketing Effectiveness Measurement replaces Budget Envy
Feb. 26, 2015•0 likes•1,264 views
1 likes
Be the first to like this
Show More
views
Total views
0
On Slideshare
0
From embeds
0
Number of embeds
0
Download to read offline
Report
Business
Presentation on Measuring Marketing Effectiveness which I presented at #CAI2015 in London on 25 Feb 2015. A review of that event can be found at: http://customerinsightleader.com/events/event-cai2015/
Paul LaughlinFollow
Recommended
The First Steps to Successful Account-Based MarketingSangram Vajre
Engage Your Sellers. Inspire Your Customers (SAVO)SAVO
Peter gracey sales hacker slides finalSales Hacker
Rethinking Your Ad Spend: 5 Tips for intelligent digital advertisingChartio
Intelligent Marketing Solutions: Where to Begin and Whysbmoser
The 5 Metrics for Growing Your Team EffectivelySales Hacker
Marketing Effectiveness Measurement replaces Budget Envy
- Paul Laughlin, Managing Director, Laughlin Consultancy Marketing Effectiveness Measurement replaces Budget Envy #CAI2015 © Laughlin Consultancy Ltd, not to be used without permission.
- Klondike Goldrush © Laughlin Consultancy Ltd, not to be used without permission.
- Klondike Goldrush © Laughlin Consultancy Ltd, not to be used without permission.
- Two types of marketers © Laughlin Consultancy Ltd, not to be used without permission.
- One type of size comparison © Laughlin Consultancy Ltd, not to be used without permission.
- Our digital goldrush ❖ How many Twitter Followers? ❖ How many Facebook Fans/Likes? ❖ Has your video ‘gone viral’ on YouTube? ❖ How many downloads of your latest app? ❖ How many site/blog visits? ❖ How many people saw your commercial? ❖ Are we being recommended? © Laughlin Consultancy Ltd, not to be used without permission.
- What a business should measure ❖ Turnover is vanity… ❖ ROI before investments ❖ Return On Marketing Expenditure © Laughlin Consultancy Ltd, not to be used without permission. ❖ ROME = ( ΔRevenue – ΔCosts) / ΔMarketing Spend
- Measuring profit © Laughlin Consultancy Ltd, not to be used without permission. • Fully costed marketing • Sales caused by marketing • Historical data on sales from different levels of marketing spend • Max increase in sales achievable by marketing • Marketing spend needed to achieve 50% of max • Gross margin on sales • % of costs that are fixed From “Marketing Payback” Robert Shaw & David Merrick:
- Two types of Marketing © Laughlin Consultancy Ltd, not to be used without permission. • Brand building • Awareness & Consideration • Maintaining Share of Voice • Social normally TTL (from LinkedIn ads to broadcast YouTube) ATL BTL • Targeted communications • Personalised & timed • Driving action, often to buy
- Econometrics for ATL © Laughlin Consultancy Ltd, not to be used without permission. • Statistical technique(s) to help assess which of many possible factors are key drivers of sales results, combine them in a quantitative model and then use to predict the future • Business input • Base • Ad-stock • ‘Halo effects’
- Experimental Method for BTL © Laughlin Consultancy Ltd, not to be used without permission. Response Data (all channels) Contact History F2F/Service Call Centre Website Outbound eMail/DM Social STEP 1 Data Gathering STEP 2 Matching Back Response Contact History STEP 3 Considering rela onship and other drivers Brand Rela onship Learning from Econometrics Marketing attribution includes considering multi-media attribution & multi-channel view of value Targeted + Contacted Untargeted + Contacted Targeted + Not Contacted Untargeted + Not Contacted
- You need insight Customer Data Customer Research Customer Analysis Database Marketing Feel & Measure Target Marketing Converge Evidence © Laughlin Consultancy Ltd, not to be used without permission.
- Marketing Attribution © Laughlin Consultancy Ltd, not to be used without permission. Incremental Modelled Financial Reporting Market Position Media Tracking
- Budget Allocation step 1 ❖ Annual Marketing budget: ❖ functional unit allocation ❖ share of revenue allocation ❖ share of voice allocation © Laughlin Consultancy Ltd, not to be used without permission. ❖ ‘Rightsize’ the budget ❖ Optimising ROME
- Budget Allocation step 2 ❖ Optimal allocation across: ❖ Products/Markets ❖ Brands ❖ Purchase Funnel © Laughlin Consultancy Ltd, not to be used without permission. ❖ Comparing ROME contributions ❖ Consider evidence for media interdependencies
- Credibility requires Accountability ❖ Use the language of profit ❖ Use ROME with Finance ❖ Converge evidence ❖ Rigorous budget allocation © Laughlin Consultancy Ltd, not to be used without permission.
- linkedin.com/in/paullaughlin paul@laughlinconsultancy.com +44 (0)7446 958061 Contacting me: customerinsightleader.co m laughlinconsultancy.com @LaughlinPaul © Laughlin Consultancy Ltd, not to be used without permission.
Editor's Notes
- I hope that was helpful, please feel free to get in touch. I’ve put all my contact details up there. The first web address is for a blog that I created to support & inform customer insight leaders, with regular updates, so feel free to have a look at that as an immediate follow-on to this presentation. I’m Paul Laughlin, thanks for listening and I will be around until after the conference if you’d like to chat further. Thank you.