Its often very difficult to link a specific Marketing activity to a specific sale – hence the focus on attribution models. Generally it takes a number of touches and conversations over a period of time to move a target from contact to customer. An IDC survey revealed only two out of the 90 companies surveyed had overall Marketing ROI measurements. Focusing your Marketing metrics strictly on ROI is doing a disservice to both your company and the profession.

There are a number of valuable Marketing metrics that can be used to measure your  Marketing’s contribution and value to your business outcomes other than ROI. Measuring Marketing consistently is among the top challenges faced by marketers in Marketing studies.

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The key to establishing Marketing metrics is to understand the business outcomes and how Marketing directly impacts these. Once you know your organization’s outcomes you can create a Marketing Impact Model that ties each marketing initiative and program to a specific business outcome. In this way you can establish metrics related to value and impact to efforts such as these:

• Customer satisfaction as it relates to cross selling or up-selling.
• Customer retention as it relates to share of wallet.
• Qualified opportunities as it relates to customer acquisition time and costs.

The point is to select metrics that are connected to meaningful business outcomes. 

Six Attributes of a Good Marketing Metric

Once you define each metric, make sure it passes muster by verifying whether it meets these six attributes. The more a metric meets all six, the more likely it is go to serve you well.

1. Reliability: Does the metric give you the same results consistently when what you’re measuring doesn’t change?
2. Validity: Does it measure what it was intended to measure?
3. Responsiveness: Does the value of the measure change when actual changes occur in the real world
4. Cost/Benefit: Is it worth measuring? Do the benefits of the measurement outweigh the costs to collect and analyze the data needed to determine the measurement
5. Comprehension: Is the metric easy to understand? The more complicated the metric and the harder it is to understand, the less likely it will be used.
6. Balance: Are there a number of metrics that measure all aspects of the business?

Learn more about how to make your marketing more measurable and prove the value of your marketing.

FAQ:

• Customer satisfaction (cross-selling, up-selling)
• Customer retention (share of wallet)
• Qualified opportunities (acquisition time and cost)
  Select metrics directly connected to meaningful business results.

• Reliable: Consistently delivers the same result under unchanged conditions.
• Valid: Measures what it is intended to measure.
• Responsive: Changes reflect real-world changes.
• Cost/Benefit: Worth the effort to measure.
• Comprehensible: Easy to understand and use.
• Balanced: Covers all key business aspects.

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