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The Marketing Measurement Checklist

THE MARKETING MEASUREMENT CHECKLIST: HOW TO INTELLIGENTLY ANALYZE THE SUCCESS OF YOUR MARKETING How Lead Generation Marketers Measure Marketing Programs A surprising 87% of senior marketers 45% do not feel confident in their ability Measure a to impact the sales forecast of single attribute their programs. Measure a single attribute across multiple programs and people 20% 1 out of 5 marketers Employ NO tracking do not measure their marketing results at all. While measuring 11% Use test and marketing ROI can be difficult, control groups it is certainly not impossible. Use Market Mix Modeling The following is a guide to help you track the right way and avoid getting lost in the numbers. How to Guide Your Measurement Insight Many Chief Marketing Officers (CMOS) believe they have For example, only 44% of qualified marketers know what already achieved total accountability. However, chances a 10% increase in their marketing budget could do for their are that your department could still use some improvement. company. To gauge your level of insight, Try to answer the following questions: 5 C FIVE QUESTIONS TO GUIDE YOUR MEASUREMENT INSIGHT 1. What are your 2. What impact 3. Compared to - Which are 5. What questions specific objectives for would a 10% change in relevant benchmarks appropriate targets do you still need to marketing investment your marketing budget (historical, competitive, for improving revenue answer with regard to and how will you connect (up or down) have marketplace), how leverage (defined as dollars of profit over dollars of marketing your knowledge of the your investments to on your profits and effective are you at return on marketing incremental revenue margins over the next converting marketing investments? What and profit? year? The next three investment into revenue and sales spend) are you going to do years? Five? and profit growth? over the next few years? to answer them? Which initiatives will get you there? The Stages of Marketing Accountability Chief Marketing Officers (CMOS) faced with the necessity of becoming accountable for their marketing efforts often go through the five common stages of marketing accountability. THESE ARE: > DENIAL > SELF-PROMOTION COMMON THOUGHT PROCESS: COMMON THOUGHT PROCESS: "Marketing is an art, not a science. It can't be "Hey, come look at all these charts and graphs!" measured. The results will come; trust me!" To appear accountable, the CMO begins putting together In the first stage, the CMO might deny the need reports from every easily measured metric available such to be accountable for results, resulting in isolation as website page views, press release downloads, and from other departments. search engine rankings. These reports still lack a direct connection to revenue or profit. > FEAR > ACCOUNTABILITY COMMON THOUGHT PROCESS: "What if my marketing activities don't COMMON THOUGHT PROCESS: impact the bottom line? Will I lose my job?" "Revenue starts with marketing." Marketing accountability reveals both poor and stellar This is the stage when the CMO learns how to connect performance. In this stage, the CMO is scared marketing to the revenue pipeline, and produces information of discovering how they are doing. relevant to the CEO, CFO and other top company executives. The final stage should be the end goal of every marketing > CONF USION department, as the CMO can begin showing his or her direct COMMON THOUGHT PROCESS: impact on the company's profit, and achieve the respect "I know I should measure marketing results, of the entire organization. but I just don't know how." The CMO accepts that they need to begin measuring results and implements some basic metrics, but doesn't know exactly how to gain a holistic understanding of how their efforts are effecting bottom line results. When Metrics Go Wrong Sometimes it can be hard to tell which metrics are the most meaningful, and which are not as important. With so many numbers you could be measuring, it's very easy to end up measuring the wrong things. SOME PRACTICES TO AVOID INCLUDE: FOCUSING ON ACTIVITY, NOT RE SULTS VANITY METRICS Focusing on "feel-good" metrics that sound impressive to other people, but don't make a solid contribution to the Marketing activity shows itself in money spent, making it very company, is a mistake. These include things like Facebook easy to measure. Results can be a lot trickier, but if you can't likes, retweets, and press release impressions. tie your sales and revenue to your marketing efforts, the costs could start looking like a waste. MEASURING WHAT IS EASY Measuring direct impact on revenue or profit can be difficult, FOCUSING ON and some marketers choose to focus on other metrics that EFFICIENCY INSTEAD are easier to quantify. This is okay to do sometimes, but you OF EFFECTIVENESS should never ignore difficult, yet important, revenue metrics. There is a difference between effectiveness metrics (doing the right things) and efficiency metrics (doing - possibly the FOCUSING ON QUANTITY, NOT QUALITY Barely half of all marketers focus on measuring lead quality, wrong - things well). For example, having a packed event is no good if it's full of all the wrong people. choosing instead to focus on quantity. Unfortunately, ignoring quality can lead to programs that look good on the surface but don't deliver profits. Picking The Right Metrics To avoid falling into the trap of using the wrong metrics, you nee to know and understand the right metrics to measure. MEANINGFUL METRICS CAN BE DIVIDED INTO THREE MAIN CATEGORIES: LL. MARKETING $ $$ PROGRAM REVENUE PERFORMANCE PROFIT PER METRICS: METRICS: CUSTOMER: The aggregate impact The incremental contribution The lifetime value of on company revenue. of individual marketing programs. an incremental customer. Lead generation Conversion rate vs. Size of prospect database BUSINESS PERFORMANCE vs. target trend or benchmark METRICS AND KPIS: Marketing contribution Cycle time forecast DIAGNOSTIC Investment Response rates Expected contribution METRICS: forecast Pipeline Lift over control group contribution Program ROI LEADING Average Investment to Retention rates INDICATORS: selling price acquire a customer. Products per customer Marginal cost to serve Net promoter scores WHEN DEVELOPING YOUR METRIC MEASUREMENT PLAN, KEEP THE FOLLOWING BASIC RULES IN MIND TO HELP GUIDE YOUR APPROACH: Choose no more than five metrics to measure. Any more can cloud your focus. Measure success versus goals for those metrics for every campaign, in every channel. Measure and show trends for each metric over time to gauge improvement level. Always be sure to recognize top contributors to achieved goals. Marketo SOURCES: MARKETO.COM, LENSKOLD, VISIONEDGE, MARKETINGZNPV, DG2MM.

The Marketing Measurement Checklist

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As marketers in this day and age we should all be aware of the importance and growing pressure to measure and demonstrate marketing’s ROI. A surprising 87% of senior marketers do not feel confident...

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