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/

1. Paul Laughlin, Managing Director, Laughlin Consultancy
Marketing Effectiveness
Measurement replaces
Budget Envy
#CAI2015
© Laughlin Consultancy Ltd, not to be used without permission.

2. Klondike Goldrush
© Laughlin Consultancy Ltd, not to be used without permission.

3. Klondike Goldrush
© Laughlin Consultancy Ltd, not to be used without permission.

4. Two types of marketers
© Laughlin Consultancy Ltd, not to be used without permission.

5. One type of size comparison
© Laughlin Consultancy Ltd, not to be used without permission.

6. 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.

7. 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

8. 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:

9. 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

10. 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’

11. 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

12. 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.

13. Marketing Attribution
© Laughlin Consultancy Ltd, not to be used without permission.
Incremental
Modelled
Financial
Reporting
Market
Position
Media
Tracking

14. 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

15. 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

16. 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.

17. 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.