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
