Marketing Performance @ The House Of Marketing

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Marketing Performance @ The House Of Marketing

  1. 1. How to measure and improve your marketing performance The road to Performance driven Marketing Bringing the hard science into marketing February 2009 www.thom.eu
  2. 2. Source: Marketing NPV
  3. 3. Measuring return is the solid n°3 challenge for Belgian marketeers 43% Differentiate from competition Building customer loyalty and trust Measuring return on marketing efforts Building a strong brand Communicating through online media Innovation, Product development & R&D Increase the efficiency of marketing processes Identifying all customer’s “moments of truth” Realizing an integrated communication-mix Integrating online & offline marketing initiatives 38.5% 38.4% 37.3% 36.3% 35.1% 32.5% 30.3% 30.2% 28.5% % of respondents Source: The House of Marketing 2008 Yearly Marketing Survey, Belgian marketing community, N=714 respondents Not in 2007 Top 5 Legend: In 2007 Top 5
  4. 4. Marketing challenges 2004 2006 2007 2008 Differentiation from competition Building customer loyalty and trust RoMI Communicating through online media Building a strong brand Innovation Efficiency of marketing processes Knowing all customers’ moments of truth Realizing an integrated communication mix 1 n.a. 1 4 7 6 n.a. 4 n.a. 2 1 3 8 4 6 7 8 5 1 2 6 5 4 3 9 8 7 1 2 3 4 5 6 7 8 9 Ranking of marketing challenges (according to % of occurrence) 2005 2 8 3 1 n.a. 6 n.a. 9 n.a. … just as it has been over the past 5 years Source: The House of Marketing 2008 Yearly Marketing Survey, Belgian marketing community, N=714 respondents
  5. 5. Marketing still has little impact in the boardroom Respondents (%) Total sample 100% 41.6% 24.9% 22.9% 4.5% 2.3% 1% Sales Marketing Finance Production R&D HR According to you, which department has the biggest impact in the boardroom? 2.9% Others Source: The House of Marketing 2008 Yearly Marketing Survey, Belgian marketing community, N=515 respondents
  6. 6. To improve boardroom impact, marketeers need to measure and display the return on marketing efforts What should be improved to increase marketing impact in boardroom? (1) What should be improved to increase marketing impact in boardroom? (2) Better metrics Make results visible Better communication Marketing orientedness board Network with other departments Boost financial skills Techical product knowldge 51.7% 38.2% 37% 26.9% 22.5% 20.4% 11.1% 12.5% 12.5% 21.1% 20.4% 23.4% 46.9% 35.2% 32% 60% 0% 0% 60% N = 387 N = 128 Boost financial skills Techical product knowldge Network with other departments Marketing orientedness board Make results visible Better communication Better metrics <ul><li>Measured among respondents who think marketing has the biggest impact </li></ul><ul><li>Measured among respondents who think marketing does not have the biggest impact </li></ul><ul><li>Source: The House of Marketing 2008 Yearly Marketing Survey, Belgian marketing community, N=515 respondents </li></ul>
  7. 7. Even CEOs confirm the importance of these metrics and communicating results What should be improved to increase marketing impact in boardroom? 50% 38.3% 36.2% 26.6% 20.2% 16% 14.9% 0% 60% Better metrics Make results visible Better communication Marketing orientedness board Network with other departments Boost financial skills Techical product knowldge Source: The House of Marketing 2008 Yearly Marketing Survey, Belgian marketing community, N=94 respondents
  8. 8. Using financial ROI pays off Companies with sound ROI management expect to outgrow competition (1) Marketing departments able to prove return get higher allocated budgets (2) ROI not used ROI used To what extent do you expect to outgrow your competition? % respondents (TOP 2) 42% 66% To what extent is sufficient budget allocated to the marketing department? ROI not used ROI used % respondents (TOP 2) 29% 51% Sources : (1) Lenskold 2008 Marketing ROI & Measurement study (2) VisionEdge Marketing MPM Survey 2008
  9. 9. Typical issues that indicate ROMI interest <ul><li>High marketing budget but no financial evaluation on return of the various marketing activities is done </li></ul><ul><li>Quantification of marketing performance lacking to steer decision process. Quantified priority setting for new campaigns is needed </li></ul><ul><li>Interest to revise marketing budget allocation process: to be based on expected return rather than percentage of revenues or last year’s figure. Difficulties to convince CFO/CEO to approve planned marketing activities </li></ul><ul><li>Challenge to balance short term sales objectives versus long term strategic brand positioning objectives </li></ul>
  10. 10. From our experience, companies face five challenges to improve marketing performance <ul><li>Aligning marketing metrics with business objectives </li></ul><ul><li>Balancing brand building & sales conversion </li></ul><ul><li>Calculating Marketing ROI, report & assess </li></ul><ul><li>Accessing the right data & bridging data gaps </li></ul><ul><li>Setting up the right capabilities within your organization </li></ul>Results Objectives Data management & Measurement Capabilities Do Check Plan <ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Actions </li></ul></ul>3 1 2 3 4 5 Boost your efficiency & increase customer value by addressing these challenges Source and © The House of Marketing 2009 www.thom.eu 1 4 3 5 2
  11. 11. The House of Marketing’s approach in marketing performance <ul><li>Gap analysis of marketing effectiveness vs. best in class: </li></ul><ul><ul><li>Customer interview checklists </li></ul></ul><ul><ul><li>Scoring & benchmarks </li></ul></ul><ul><ul><li>Identification of improvement areas </li></ul></ul>360° QuickScan Starting point Dashboards <ul><li>Strategic model mapping brand position to value creation: </li></ul><ul><ul><li>Interviews </li></ul></ul><ul><ul><li>Data collection & data mining </li></ul></ul><ul><ul><li>Analysis of strategic options </li></ul></ul>Value Capturing <ul><li>Quantify return & prioritize marketing campaigns & projects: </li></ul><ul><ul><li>Define business objectives </li></ul></ul><ul><ul><li>Calculate costs & investments </li></ul></ul><ul><ul><li>Decide metrics to use </li></ul></ul><ul><ul><li>Build the ROI model </li></ul></ul>Marketing ROI Source and © The House of Marketing 2009 www.thom.eu <ul><li>Define performance metrics: </li></ul><ul><li>Define business objectives per department and process </li></ul><ul><li>Define dashboard structure and KPI, targets to reach and measurement process </li></ul><ul><li>Monitor performance </li></ul>
  12. 12. The House of Marketing has a unique approach by combining a holistic marketing view with in depth quantitative modeling. <ul><li>Based on its unique position in the market, combining marketing and consulting expertise, The House of Marketing is perfectly placed to offer ROMI </li></ul><ul><ul><li>Holistic marketing view to link Marketing Performance to strategic objectives, segmentation and go to market planning </li></ul></ul><ul><ul><li>Analytical skills & quantitative comfort to select the metrics that matter, to bridge data gaps and to build financially sound models </li></ul></ul><ul><ul><li>Specific in-house expertise backed up by a solid financial background with proven impact for clients across B2B and B2C sectors </li></ul></ul><ul><ul><li>Neutral , unbiased view, unlike competitors such as SW vendors or advertisement agencies </li></ul></ul>
  13. 13. For more information on marketing performance management, contact <ul><li>Johan Goossens </li></ul><ul><li>[email_address] </li></ul><ul><li>+32 (0)496 55 12 26 </li></ul><ul><li>The House of Marketing </li></ul><ul><li>www.thom.eu </li></ul><ul><li>To receive a copy of our 2009 Yearly Marketing Survey, please register as a member on www.mingle.be </li></ul><ul><li>(you will receive our Marketing Buzz newsletter) </li></ul>

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