Marketing Effectiveness

MARKETING EFFECTIVENESS

MARKETING EFFECTIVENESS

MARKETING EFFECTIVENESSHow do you know if you are healthy?

MARKETING EFFECTIVENESSHow do you know if you marketing is effective?

MARKETING EFFECTIVENESSWhich will give a higher return on investment?

MARKETING EFFECTIVENESS2010 = Evolve into Performance Driven Marketing Organization

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

How do we get there?1. Set clear standards2. Align resources, policies, and practices3. Understand achievements and failures4. Measurable and specific outcomes5. Analyze performance at:

1. Strategic2. Operational3. Tactical

6. KPIs and Business Metrics

MARKETING EFFECTIVENESS

MARKETING EFFECTIVENESS

Don’t gather data: Link Marketing Activity to Business Outcomes

Types of Metrics1. Activity Based—hits, click-through rates, page views, etc…2. Operational—cost per lead, channel margin, conversion rate,

average customer acquisition cost3. Outcome-based—market share by segment, customer attrition,

pipeline contribution4. 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 Generation2. Higher Customer Retention Rates3. Incremental Revenue Growth4. Shorter Sales Cycles5. Less Expensive Customer Acquisition6. Growing Value of Existing Customers

1. Brand Equity2. Growing Market share

MARKETING EFFECTIVENESS

6 Steps toward Marketing Effectiveness1. Stop reporting simply on Activities2. Conduct a Metric Audit3. Set Goals4. Improve Metric Competency and Proficiency5. Use Metrics to guide Business Decisions6. 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 effectivelyKey take away…Measure right things, right ways, efficiently, consistently, and

accountably

MARKETING EFFECTIVENESS

1. Begin Linking Marketing with Business Outcomes2. Develop Metric Gathering Processes3. Determine best Metrics to Measure and Track4. Create Dashboards and Reports5. Move from Deficient/Competent to Proficient

MARKETING EFFECTIVENESSWhat every company wants:1. Dominant Player in the Market2. Retain Customers and increase their lifetime value3. 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