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MARKETING
EFFECTIVENESS
MARKETING
EFFECTIVENESS
MARKETING
EFFECTIVENESS
 How do you know if you are healthy?
MARKETING
EFFECTIVENESS is effective?
 How do you know if you marketing
MARKETING
EFFECTIVENESS on investment?
 Which will give a higher return
MARKETING
EFFECTIVENESS Marketing Organization
 2010 = Evolve into Performance Driven

 Performance Driven—Emphasis on a consistently high level of
   achievement while maintaining quality and promoting competition

 How do we get there?
 1. Set clear standards
 2. Align resources, policies, and practices
 3. Understand achievements and failures
 4. Measurable and specific outcomes
 5. Analyze performance at:
     1. Strategic
     2. Operational
     3. Tactical
 6. KPIs and Business Metrics
MARKETING
EFFECTIVENESS
MARKETING
EFFECTIVENESS
 Don’t gather data: Link Marketing Activity to Business Outcomes


 Types of Metrics
 1. Activity Based—hits, click-through rates, page views, etc…
 2. Operational—cost per lead, channel margin, conversion rate,
    average customer acquisition cost
 3. Outcome-based—market share by segment, customer attrition,
    pipeline contribution
 4. Leading-indicator—brand preference, share of wallet, net
    advocacy, competitive rate of growth
 5. Predictive—propensity, lifecycle, and attach rate
MARKETING
EFFECTIVENESS

 1.   Improved Lead Generation
 2.   Higher Customer Retention Rates
 3.   Incremental Revenue Growth
 4.   Shorter Sales Cycles
 5.   Less Expensive Customer Acquisition
 6.   Growing Value of Existing Customers


 1. Brand Equity
 2. Growing Market share
MARKETING
EFFECTIVENESS
 6 Steps toward Marketing Effectiveness
 1.   Stop reporting simply on Activities
 2.   Conduct a Metric Audit
 3.   Set Goals
 4.   Improve Metric Competency and Proficiency
 5.   Use Metrics to guide Business Decisions
 6.   Foster a Culture of Accountability

 Recent CMO Council survey found that:
 93% attempt to measure marketing performance, but only 1 in
   10 said they do it effectively
 Key take away…
 Measure right things, right ways, efficiently, consistently, and
   accountably
MARKETING
EFFECTIVENESS

1.   Begin Linking Marketing with Business Outcomes
2.   Develop Metric Gathering Processes
3.   Determine best Metrics to Measure and Track
4.   Create Dashboards and Reports
5.   Move from Deficient/Competent to Proficient
MARKETING
EFFECTIVENESS
What every company wants:
1. Dominant Player in the Market
2. Retain Customers and increase their lifetime value
3. Increase it’s Shareholder Value

To do the above, we must understand where we are effective in our
  marketing and continuously improve our processes

Get away from measuring the effectiveness of our marketing on how
  we “look and feel” and link marketing with business outcomes
MARKETING
EFFECTIVENESS
MARKETING
EFFECTIVENESS

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Marketing Effectiveness

  • 1.
  • 4. MARKETING EFFECTIVENESS How do you know if you are healthy?
  • 5. MARKETING EFFECTIVENESS is effective? How do you know if you marketing
  • 6. MARKETING EFFECTIVENESS on investment? Which will give a higher return
  • 7. MARKETING EFFECTIVENESS Marketing Organization 2010 = Evolve into Performance Driven Performance Driven—Emphasis on a consistently high level of achievement while maintaining quality and promoting competition How do we get there? 1. Set clear standards 2. Align resources, policies, and practices 3. Understand achievements and failures 4. Measurable and specific outcomes 5. Analyze performance at: 1. Strategic 2. Operational 3. Tactical 6. KPIs and Business Metrics
  • 9. MARKETING EFFECTIVENESS Don’t gather data: Link Marketing Activity to Business Outcomes Types of Metrics 1. Activity Based—hits, click-through rates, page views, etc… 2. Operational—cost per lead, channel margin, conversion rate, average customer acquisition cost 3. Outcome-based—market share by segment, customer attrition, pipeline contribution 4. Leading-indicator—brand preference, share of wallet, net advocacy, competitive rate of growth 5. Predictive—propensity, lifecycle, and attach rate
  • 10. MARKETING EFFECTIVENESS 1. Improved Lead Generation 2. Higher Customer Retention Rates 3. Incremental Revenue Growth 4. Shorter Sales Cycles 5. Less Expensive Customer Acquisition 6. Growing Value of Existing Customers 1. Brand Equity 2. Growing Market share
  • 11. MARKETING EFFECTIVENESS 6 Steps toward Marketing Effectiveness 1. Stop reporting simply on Activities 2. Conduct a Metric Audit 3. Set Goals 4. Improve Metric Competency and Proficiency 5. Use Metrics to guide Business Decisions 6. Foster a Culture of Accountability Recent CMO Council survey found that: 93% attempt to measure marketing performance, but only 1 in 10 said they do it effectively Key take away… Measure right things, right ways, efficiently, consistently, and accountably
  • 12. MARKETING EFFECTIVENESS 1. Begin Linking Marketing with Business Outcomes 2. Develop Metric Gathering Processes 3. Determine best Metrics to Measure and Track 4. Create Dashboards and Reports 5. Move from Deficient/Competent to Proficient
  • 13. MARKETING EFFECTIVENESS What every company wants: 1. Dominant Player in the Market 2. Retain Customers and increase their lifetime value 3. Increase it’s Shareholder Value To do the above, we must understand where we are effective in our marketing and continuously improve our processes Get away from measuring the effectiveness of our marketing on how we “look and feel” and link marketing with business outcomes