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Begin Your Performance Measurement Journey

The journey to becoming a performance-driven Marketing organization begins with embracing performance measurement and management. Marketing performance measurement and management (MPM) is about how you approach transforming your Marketing into a more effective and efficient organization. When you decide that your Marketing activities, strategies, tactics, and metrics must first align with business outcomes as opposed to sales revenue, you have embarked on the MPM journey. This decision is a decision about effectiveness – doing the right things.

Alignment is the first stop on your Marketing Performance Measurement Journey

Once you address alignment you are well on your way to addressing accountability. When you are in alignment you begin to see the relationship between the work and investments of Marketing with business results. Accountability encompasses a variety of facets, including measurement. With so many measures and metrics to choose from, measurement can often become one of the most challenging hurdles to overcome. As a result, many organizations succumb to selecting measures that are easiest to obtain.

Like what, you ask? Measures associated with website traffic, page views, search engine rankings, social media followers and engagement, and content consumption. These measures play an important role, but alone they will not connect Marketing to the business. Measures around leads and leads converted to deals are certainly critical measures for connecting Marketing to demand – but again these measures will not help Marketing demonstrate how Marketing is impacting market growth, outdistancing the competition and achieving category ownership, affecting adoption of new products, increasing customer lifetime value, or other critical measures of business success.

When Marketing can connect its work and investment to these outcomes then Marketing takes its place at the strategy and decision-making table. These kinds of measures require Marketing to take its measurement efforts up a notch.

Research suggests that lack of data, lack of research and resources, lack of process, poor analytical skills, and the cost of a continued effort are among the reasons efforts associated with this type of measurement often falter. The following 6 tips will help you keep any Marketing measurement effort going.

Keep Your Marketing Measurement Journey from Stalling

Six Tips to Keep Your Measurement Initiatives from Stalling

  1. Develop and present a business case. Every initiative in the company begins with a business case. The business case should articulate the value to the business for investing in a Marketing measurement initiative. The business case should help identify success factors, technology/resource requirements, costs, risks, the downside of forgoing the effort, etc. The business case shows the merit of the initiative and serves as the basis for whether to pursue the initiative. If the business case does its job well, then it will be easier for you to secure the resources, skills, etc., you need for a long-term effort.
  2. Balance short-term results with long-term value. Customers, brands, and reputation are company assets and hold long-term value. Marketing is responsible for these assets. Therefore your measurement initiative should focus on both measuring how and where the money is best spent to grow the value of these assets. Work with the executive team and Finance organization to decide how Marketing can impact the value of these assets. This conversation will make it easier to secure support and financing for the long-term.
  3. Engage Finance. You should see a Marketing measurement initiative as an opportunity to create collaboration between Marketing and Finance. With the Finance department’s support you will have a better chance of securing the investments you need for data, research, and analytical tools.
  4. Collaborate with peers. Business units, sales and customer service can bring additional data and insights to the measurement process. Smart Marketing leaders enlist the support of their peers and fold them into the effort.
  5. Hone the team’s analytical and data skills. Many marketing professionals have managed to avoid data and analytics. Scientific hypothesis formulation, experimental decision, and statistics are skills every marketer needs in order to compete today. It is OK if you don’t have the internal skills at the outset – there are third parties that can get your measurement efforts going. However, be sure the third-party transfers knowledge during the project so that your team has the skills to sustain a measurement effort once it is underway.
  6. Put skin in the game. People perform based on how they’re compensated. Link part of every Marketing team member’s compensation to performance and measuring that performance.
Improve your Marketing accountability and measurement.

Take your Marketing performance management up a notch.

Take Your Marketing Measurement Up a Notch!

With the increased emphasis on Marketing accountability, you may need to modify or upgrade your Marketing metrics, monitor Marketing Performance, and develop and utilize Marketing dashboards to communicate and measure Marketing contribution, impact and value. Ready to take your Marketing measurement up a notch? Let’s start a conversation today on how you can improve what you measure.

 

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