The document discusses improving marketing accountability and effectiveness to impact business performance. It outlines six common reasons why marketing accountability efforts fail, including not measuring what matters and not focusing on decision making. The document recommends classifying existing marketing investments based on effectiveness, increasing spending on proven effective investments, and using experimentation to validate unproven investments. It also stresses the need for capabilities, processes, analytics, and data to systematically improve marketing accountability over time.

1. Marketing Effectiveness – Improving Accountability and Returns to Impact Business Performance Kelley Quain Troia, Senior Director, Wal-mart Margaret Beck, Vice President, Williams-Sonoma Aseem Chandra, Senior VP, Omniture Michael Dunn, CEO, Prophet

2. CEO’s Want More Slide measurability transparency predictability

3. “ Half the money I spend on advertising is wasted; the trouble is, I don't know which half” John Wanamaker pioneer of the modern department store Slide The Gordian knot of marketing

4. Don’t Measure What Matters Failure to measure why investments succeed or fail Inability to separate sales response from brand building impact Don’t Focus on Decision Making Silo-based view of investments managed differently within the organization Lack of actionable fact base and processes to reallocate investments by effectiveness Insufficient capabilities and skills to analyze data and recommend improvements Slide Why marketing accountability efforts fail

5. What’s required? Excellent performance across all 6 value levers A rigorous system to hold the levers of marketing accountable

6. The first imperative… Figure out what you know Classify your existing marketing investments based on your current “effectiveness” understanding Budget $50M Proven To Be Ineffective Proven To Be Effective Unproven But Strategic Unproven & Non-Strategic Savings ? Horizon 1: Diagnostic Findings Budget Horizon 2: Findings in Action Increased by reinvesting wasted spend Ineffective Due To Execution Fix ineffective execution through capability building Qualify new activities through experimentation Use structured testing to validate unproven strategic spend $44M

7. Start at the top… Be disciplined about articulating a clear path to value Marketing Intent Change in Perceptions, Availability, Incentives Present & Future Business Results : Revenue, Profit, Share Value-Creating Behaviors : Penetration, Loyalty, Multiple Purchase, Recommend Present & Future Business Results : Value-Creating Behaviors Marketing Intent A Clear Path to Value…

8. Go home or get real… Assess your real and perceived barriers to better measurement Five common barriers have been identified that typically get in the way of better measurement Time- Poor Analytics- Poor Process/ Governance- Constrained Data- Poor Capability- Constrained The Experts Harried, but Trying Horsepower Seeking Not a Priority Tactical Outsourcer Data Starved Which segment best describes your company?

9. Test and control… Build a smart & pervasive experimentation capability Adopt an experimentation mindset to both close your knowledge gaps around current investments and qualify new activities

10. A holistic path forward… Systematically build and improve capabilities, processes, analytics Analytics Processes Capabilities Data & IT Systems Analysis & Metrics Strategy & Content In-Market Execution

11. Slide The broader horizon… great marketing decisions and bottom line growth

12. Slide Every Journey… Begins with the First Few Steps We are at ground zero 1. Find the money and put it in the right buckets 2. Take a first pass at effectiveness evaluation using existing data & tools 3. Commit to a 2-pronged agenda of analytics and experimentation to close your knowledge gaps We made a few attempts but have stalled 1. Do an audit of capabilities, process and analytics to identify key barriers 2. Put a program in place to address the most pressing barriers 3. Get a clear win by decisively answering 1 or 2 of the highest priority investment questions We want to turn this into a competitive weapon 1. Embrace experimentation as a critical core competency 2. Focus on efficient processes and tight linkages across the value levers 3. Tackle the sales vs. equity response measurement challenge with gusto