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17/02/14

Marketing goals and
measurement
Roope Ruotsalainen
Chief Digital Officer
Frankly Partners, Finland
17/02/14

Marketing objectives.
What for?
Marketing goals & digital success

Data is everywhere.
Analytics is everywhere.

Frankly Partners

17/02/14
Marketing goals & digital success

Frankly Partners

Marketing communication is
3 380 000 000 € industry in Finland.
Money...
Marketing goals & digital success

Frankly Partners

Challenge: semantics.
Is it a cost or an investment?

17/02/14
Marketing goals & digital success

Frankly Partners

17/02/14

Few problems:
1.  Marketing objectives are not reflecting b...
Marketing goals & digital success

Frankly Partners

17/02/14

-  My display advertising sucks.
-  Why?
-  It costs more t...
Marketing goals & digital success

Frankly Partners

How to master the measurement?
1.  From anarchy to hierarchy
2.  Only...
17/02/14

1. From anarchy
to hierarchy
Marketing goals & digital success

Frankly Partners

If it is possible to measure,
it doesn’t mean it’s useful to measure....
Marketing goals & digital success

Frankly Partners

17/02/14

Coupons prited (#)

Total revenue (eur)

Coupons used (%)

...
Marketing goals & digital success

Frankly Partners

Business objectives
are marketing objectives.

17/02/14
Marketing goals & digital success

Frankly Partners

And objectives & measurement
goes always hand-in-hand.

17/02/14
Marketing goals & digital success

Frankly Partners

Marketing measurement – typical categories of metrics

Reach

Respons...
Marketing goals & digital success

Frankly Partners

17/02/14

Marketing measurement – typical categories of metrics

Reac...
Marketing goals & digital success

Frankly Partners

17/02/14

Marketing measurement – typical categories of metrics

Reac...
Marketing goals & digital success

Frankly Partners

The big picture:
build hierarchy in order to understand
what actually...
17/02/14

2. Only actionable
knowledge
Marketing goals & digital success

Frankly Partners

Actionable knowledge?
= knowledge, that leads to action.

17/02/14
Marketing goals & digital success

Frankly Partners

17/02/14

Actionable knowledge?
Objectives and measurement matters on...
Marketing goals & digital success

Frankly Partners

Process.
React hourly, daily, weekly, monthly.

17/02/14
Marketing goals & digital success

MODELLING
- the big picture

•  How different
variables affect the
sales and other
outc...
Marketing goals & digital success

Frankly Partners

Hey, I’ve forecasted that this week
there’s less demand than normally...
Marketing goals & digital success

Frankly Partners

17/02/14

Measurement doesn’t matter.
The action you take matters.
17/02/14

3. Leadership of
the data age
Marketing goals & digital success

Frankly Partners

Digitalization changed the game
of the analytics

17/02/14
Marketing goals & digital success

Frankly Partners

92 % of all the data in the world
has been created during past 2 year...
Marketing goals & digital success

Frankly Partners

17/02/14

“With data-driven insights, companies can
achieve 10 % to 3...
Marketing goals & digital success
ONLINE
DISCUSSIONS

Frankly Partners

SEASON

MARKET

UNEMPLOYMENT
CONSUMER
INDEX

GAS P...
Marketing goals & digital success

Frankly Partners

17/02/14

But measurement, data, analytics and insights

are nothing,...
Marketing goals & digital success

Frankly Partners

It’s about asking right questions.
It’s about asking “why”, not “what...
Marketing goals & digital success

Frankly Partners

17/02/14

After asking “why”, ask predictive questions.
“How I should...
17/02/14

In summary…
Marketing goals & digital success

Frankly Partners

17/02/14

1.  Business objectives are marketing objectives
2.  Choose...
17/02/14

Thank you!
follow @ruotsalainenr
more presentations at slideshare.net/roope
Roope Ruotsalainen
Chief Digital Off...
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Marketing objectives, measurement and metrics - the road to success

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How to success in marketing by setting objectives and metrics?
Presentation at Mailbow/Mikare seminar in Tallinn 18.2.2014.

Published in: Marketing
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Marketing objectives, measurement and metrics - the road to success

  1. 1. 17/02/14 Marketing goals and measurement Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland
  2. 2. 17/02/14 Marketing objectives. What for?
  3. 3. Marketing goals & digital success Data is everywhere. Analytics is everywhere. Frankly Partners 17/02/14
  4. 4. Marketing goals & digital success Frankly Partners Marketing communication is 3 380 000 000 € industry in Finland. Money well spent? 17/02/14
  5. 5. Marketing goals & digital success Frankly Partners Challenge: semantics. Is it a cost or an investment? 17/02/14
  6. 6. Marketing goals & digital success Frankly Partners 17/02/14 Few problems: 1.  Marketing objectives are not reflecting business objectives 2.  Objectives and their measurement are not connected 3.  Irrelevant things are measured
  7. 7. Marketing goals & digital success Frankly Partners 17/02/14 -  My display advertising sucks. -  Why? -  It costs more than it generates sales. -  Ok, but what was the its objective and role? -  I wanted to generate awareness. -  Should you then measure awareness?
  8. 8. Marketing goals & digital success Frankly Partners How to master the measurement? 1.  From anarchy to hierarchy 2.  Only actionable knowledge 3.  Leadership of the data age 17/02/14
  9. 9. 17/02/14 1. From anarchy to hierarchy
  10. 10. Marketing goals & digital success Frankly Partners If it is possible to measure, it doesn’t mean it’s useful to measure. 17/02/14
  11. 11. Marketing goals & digital success Frankly Partners 17/02/14 Coupons prited (#) Total revenue (eur) Coupons used (%) Total profit (eur) # sold items Sent emails (#) # of clients Cost of marketing Emails opened (#) Product returns (%) Pages visit Emails opened (%) Visits Avg. /time per visit New visits Emails clicked (#) Emails clicked (%) Ecom revenue (eur) Channel’s share of total revenue Ecom conversion (%) Display ad impressions Display ad CONV % Display ad CTR % Cost per click Avg. purchase (eur) SEM CONV % SEM clicks (#) Most popular content/pages SEM Cost per click SEM CTR % Site search most popular KW’s Facebook followers (#) Facebook post reach (#) TV ad contacts (#) TV ad cost per contact TV ad OTS opportunity to see
  12. 12. Marketing goals & digital success Frankly Partners Business objectives are marketing objectives. 17/02/14
  13. 13. Marketing goals & digital success Frankly Partners And objectives & measurement goes always hand-in-hand. 17/02/14
  14. 14. Marketing goals & digital success Frankly Partners Marketing measurement – typical categories of metrics Reach Response Result 17/02/14
  15. 15. Marketing goals & digital success Frankly Partners 17/02/14 Marketing measurement – typical categories of metrics Reach Response Metrics explaining what happens and why it happens Result Metrics / measurement for objectives
  16. 16. Marketing goals & digital success Frankly Partners 17/02/14 Marketing measurement – typical categories of metrics Reach Response Result How many saw? How many reacted? How much sales? Site: visitors Email: open rate Site: form submission Email: completion rate Site: conversion rate Email: acquisition rate
  17. 17. Marketing goals & digital success Frankly Partners The big picture: build hierarchy in order to understand what actually happens. 17/02/14
  18. 18. 17/02/14 2. Only actionable knowledge
  19. 19. Marketing goals & digital success Frankly Partners Actionable knowledge? = knowledge, that leads to action. 17/02/14
  20. 20. Marketing goals & digital success Frankly Partners 17/02/14 Actionable knowledge? Objectives and measurement matters only, if action takes place after measuring.
  21. 21. Marketing goals & digital success Frankly Partners Process. React hourly, daily, weekly, monthly. 17/02/14
  22. 22. Marketing goals & digital success MODELLING - the big picture •  How different variables affect the sales and other outcomes SCENARIOS AND OPTIMIZATION •  What is optimal budget, what is optimal marketing mix Frankly Partners ALLOCATION •  Allocating budget and marketing mix accordingly 17/02/14 FOLLOW-UP AND REACTION •  Measuring the actions and reacting to achieve best results
  23. 23. Marketing goals & digital success Frankly Partners Hey, I’ve forecasted that this week there’s less demand than normally! Hmm, okey. Good to know. Let’s keep on going without changes. 17/02/14
  24. 24. Marketing goals & digital success Frankly Partners 17/02/14 Measurement doesn’t matter. The action you take matters.
  25. 25. 17/02/14 3. Leadership of the data age
  26. 26. Marketing goals & digital success Frankly Partners Digitalization changed the game of the analytics 17/02/14
  27. 27. Marketing goals & digital success Frankly Partners 92 % of all the data in the world has been created during past 2 years 17/02/14
  28. 28. Marketing goals & digital success Frankly Partners 17/02/14 “With data-driven insights, companies can achieve 10 % to 30 % improvements in marketing performance, yet maintain their existing budgets.” - Nichols, on Harvard Business Review
  29. 29. Marketing goals & digital success ONLINE DISCUSSIONS Frankly Partners SEASON MARKET UNEMPLOYMENT CONSUMER INDEX GAS PRICE DIRECT MAIL ACTIVATION PRINT ADS TV COMMERCIALS SO-ME 17/02/14 MARKETING SEARCH BEHAVIOUR SOCIAL RECOMMENDATION SERVICE USAGE VISITS TO BRICK&MORTAR REVENUE SEARCH (SEM/SEO) PR DIALOGUE MOBILE APPS CLIENT SERVICE EARNED MEDIA PROMOTIONS POINT OF SALE ADVERTIS ING MARKETING REVENUE SOLD ITEMS MARGIN MARKET SHARE CLIENT LIFE-TIME VALUE DIGITAL SERVICES PRICING PRODUCT LAUNCHES PROMOTIONS Source: Harvard Business Review PRICING BUSINESS COMPETITORS
  30. 30. Marketing goals & digital success Frankly Partners 17/02/14 But measurement, data, analytics and insights are nothing, without re-thinking leadership.
  31. 31. Marketing goals & digital success Frankly Partners It’s about asking right questions. It’s about asking “why”, not “what”. 17/02/14
  32. 32. Marketing goals & digital success Frankly Partners 17/02/14 After asking “why”, ask predictive questions. “How I should optimize the budget within the product portfolio?” “Which budget maximizes the revenue and profit?”
  33. 33. 17/02/14 In summary…
  34. 34. Marketing goals & digital success Frankly Partners 17/02/14 1.  Business objectives are marketing objectives 2.  Choose only relevant indicators 3.  Hierarchy: reach – response – results 4.  Actionable knowledge: always react 5.  Analytics is about asking “why”
  35. 35. 17/02/14 Thank you! follow @ruotsalainenr more presentations at slideshare.net/roope Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland

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