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Metrics, Measurement, Paradigm Shift

Shift your Marketing metrics to improve accountability.

Marketing measurement should be an integral part of every marketer’s job and every company’s culture. Metrics are not a means to an end. Rather, they are the be all and end all. If Marketing measurement is not accepted and supported in your organization, a paradigm shift is required. What is a paradigm shift? Colloquially, this term denotes a change from one way of thinking to another. It means a transformation, a metamorphosis or an intellectual revolution!

Before you can begin this transformation, it is necessary to define the metrics that will allow you to understand, track, and manage the cause-and-effect relationships that determine the value of your company. Selecting the right metrics will allow you to assess the organization’s marketing performance and contribution. There are a number of critical elements the organization needs in order to measure Marketing performance, such as:

  • The analytical acumen to develop a measurement framework that will link all marketing activities to consistent performance metrics
  • Access to complete, accurate and timely marketing data
  • Effective systems, tools and processes

Companies create dashboards and scorecards using the measures and metrics to provide a visual representation into the organization’s performance and to help understand how it is doing against key objectives. Good dashboards enable you to measure, monitor and manage the processes and activity for which you are accountable. Good dashboards use measures to translate objectives into visual indicators of performance. Scorecards and dashboards succeed or fail with the quality of their metrics. Therefore, organizations must develop marketing metrics carefully, collaboratively and with room for flexibility to improve and refine them over time.

10 Characteristics of Effective Marketing Metrics

Be More Effective with Your Marketing Metrics

  1. Aligned –  Effective metrics and KPIs are always aligned with business outcomes
  2. Measurable – You can actually calculate the measure
  3. Actionable –  Effective metrics and KPIs enable the organization to make decisions and take action
  4. Controllable – You can control the movement of the measure
  5. Easy to Understand
  6. Balanced & Linked – Balanced and be linked to each other.
  7. Transformative –  Provide insights that enable the organization to make positive changes.
  8. Standardized – Based standard definitions, rules and calculations.
  9. Contextual – Puts performance in context.
  10. Relevant – Matters to the business

If you can only choose 5 – Choose These Characteristics

Selecting the right metrics begins with ensuring that Marketing objectives are properly aligned with the organization’s business outcomes.  Selecting metrics that meet all 11 characteristics may be too much too soon. At the very least make sure your Marketing metrics reflect these five:

  1. Relevant – Is the metric defined within a business context that explains how the metric score correlates to improved business performance?
  2. Measurable – Is there, or can there be, a process that quantifies a measurement for this metric?
  3. Controllable – Does the metric reflect a controllable aspect of the business process? When the measurement is not in a desirable range, some action to improve the data should be triggered.
  4. Reportable – Does the metric’s definition provide the right level of information to the data steward when the measured value is not acceptable?
  5. Actionable – When documenting a time series of reported measurements does the organization gain insight into what action to take that will result in improvement efforts over time?

As a species, human beings are resistant to change. By taking steps to identify the criteria and metrics that best evaluate your department’s initiatives, you will become an agent of change and play an important role in expanding the awareness of your company culture and your business opportunities.

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To learn more about how your Marketing organizations can achieve best-in-class performance measurement and management, become recognized as a Center of Excellence and experience the benefits that follow, check out the findings from the latest MPM benchmark study.For more resources on Marketing Metrics, please visit our Marketing Accountability page in our Learning Center.

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