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Why, What, and of How Marketing Measurement
This document discusses the why, what, and how of marketing measurement. It explains that proactive measurement leads to insights that assess campaign value and focus, benchmark performance, gauge market trends, and evaluate audiences. These insights allow optimal alignment of marketing with strategic goals. Measurement is the starting point for gaining insights that drive better business decisions and marketing effectiveness. The document provides guidance on establishing best practices, determining supporting technology, defining measurement plans for campaigns, and determining a measurement framework. It also discusses challenges like information hoarding and how to address them.
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Why, What, and of How Marketing Measurement
- 1. Why, what, andhow of marketing measurement March 2013
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- 3. Proactive, integrated measurementleads to insights that: • Assess the value, focus and precision of campaign and overall progress. • Benchmark performance. • Gauge market trends. • Evaluate target audience information.
- 4. Insights then allowfor optimal alignment of marketing activities with corporate objectives and strategic goals, not just those for marketing.. Gains include: • Defining better strategies. • Optimizing spend. • Making better decisions.
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- 6. Measurement is onlythe starting point. The real goal isn’t collecting data. It’s gaining . That is, that will drive making better business decisions and improving marketing effectiveness.
- 7. The best analysts have bolsteredwith horizontal business expertise. They show the story behind the numbers.
- 8. Activities Reach Relevance / Impact OutcomesWorth What activities were performed to achieve results? Did you reach your audience? How many impressions, web visits, reports, attendees, etc. were generated? Were you relevant to your audience? Were you credible? Did your ideas and messages resonate? Did you drive conversation? What business results did you achieve? Awareness? Engagement? Reputation? Leads? Sales? Loyalty? Advocacy? What is the estimated dollar value of your communication efforts? What was the ROI? Quantity/Output Quality/Outtakes Business Impact Value/Efficiency Here’s the marketing measurement vision…
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- 10. • Build abenchmark system incorporating industry standards with your own spin on important marketing activities needing insights. • Goal is to provide overall guiding principle(s) for marketing measurement. • Bonus – Benchmark marketing forecasting for modeling revenue forecasts. 1. Establish best practices for measurement.
- 11. • Determine theright technology platform to support your measurement practice. • Look for solutions that will facilitate attributing marketing results across multiple customer touch points and campaigns. • Recommended: Integration capabilities into CRM system. 2. Determine the right supporting technology.
- 12. • Automation Must-Haves: •Centralized marketing database. • Time series analytics (trending of historical data). Must hurdle big data challenge and be able to store data for at least 1-2 years. • Basic reporting for non-analysts (Dashboards best for ease of use, build custom report builder, etc.). • Advanced reporting and dashboards for in-depth business analysts (spreadsheet-like and charts are most effective.). • Data export capabilities to Excel and Access. 2. Determine the right supporting technology.
- 13. • Visualize theright metrics mix of: • Traditional marketing metrics (ad metrics, PR metrics, direct mail/email, etc.). • Web metrics. • SEO metrics. • Social monitoring and metrics. 2. Determine the right supporting technology.
- 14. • Goal isto link marketing outcomes to business results to assesses the value, focus and precision of marketing campaigns and activities. • Must understand business objectives so you know what the relevant business outcomes are. 3. Define campaign-specific measurement plans
- 15. • Design marketingcampaigns to be measureable. • Define marketing activities/processes along entire marketing activity life cycle for campaign. Plan for measurement throughout. 3. Define campaign-specific measurement plans
- 16. • Plan fordetermining ROI: • Define Key Performance Indicators that support campaign success based on • Marketing operations, • Social analytics, and • Business results. 3. Define campaign-specific measurement plans
- 17. • Determine howyou will measure marketing results and how you will convert those into business results. • Ex. of marketing results: Increased awareness, higher web visitations. • Ex. of business results: Increased sales revenues, lower customer acquisition costs. 4. Determine measurement framework
- 18. • Avoid measurementpitfalls: • Vanity metrics (“Feel good” metrics with no ties to business results). • Quantity without consideration to quality. • Efficiency without consideration for effectiveness. 4. Determine measurement framework
- 19. • Take activerole in revenue forecasting. • Design measurement to forecast your company’s revenue by modeling how marketing leads will convert to sales over time. 5. Bonus – Marketing forecasting
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- 21. Challenge – Informationhoarders. Solution – • Create a shared vision. • Foster a culture that recognizes information sharers as valuable subject matter experts. Reward collaborators with: • Financial incentives. • Personal incentives. • Keep people focused.
- 22. Solution – Use Measurementto turn marketing into revenue center from cost center. Show how revenue contributions will outpace spending. Challenge – Budgetary – How do we pay for measurement?
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- 24. If you wantto: Define better marketing strategies that align with corporate objectives. Design more effective marketing tactics. Optimize spending. Make better decisions….
- 25. …then it’s timeto build marketing measurement into your activities… …or use an agency with a strong measurement practice.
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- 27. For other clients,she defines technology requirements that will heighten business effectiveness. Kathy Herrmann builds better businesses. She propels businesses as a T-shaped pro with vertical penetration in diverse types of data analysis and horizontal experience in marketing, sales, customer service, and operations. For some clients, she improves business performance by providing results-focused data insights into customer activity and behaviors, or into operational activities.
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