Begin Your Performance Measurement Journey
The journey to becoming a performance-driven organization begins with marketing performance measurement and management. Marketing performance measurement and management (MPM) is a marketing paradigm that calls for alignment of marketing activities, strategies, tactics, and metrics with business outcomes in order to make marketing more effective and efficient.
Over fifteen years of research reveals that many marketers struggle with aligning marketing to the business and marketing accountability. This checklist will help you discern whether you need to recharge your alignment and accountability efforts.
With the increased emphasis on Marketing Accountability, you may need to modify or upgrade your Marketing Metrics and Key Performance Indicators, monitor Marketing Performance, and develop and utilize Marketing Dashboards to communicate and measure marketing performance. Marketing measurement takes systems, tools, processes, and a culture of accountability.
Six Tips to Keep Your Measurement Initiatives from Stalling
Research suggests that lack of data, lack of research and resources to maintain an ongoing measurement effort, lack of process, poor analytical skills, and the cost of a continued effort are among the reasons many marketing measurement initiatives stall out. These 6 tips will help you keep your measurement efforts going:
- 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.
- 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 easier to secure support and financing for the long-term.
- 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.
- Collaborate with peers. The 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.
- Hone the team’s analytical and data skills. Many marketing professionals have managed to avoid data and analytics. Scientific hypothesis formulation, experimental decision, 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 your team has the skills to sustain a measurement effort once it is underway.
- 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.
Take Your Marketing Measurement Up a Notch!
Ready to take your marketing measurement up a notch? Contact us to upgrade your marketing alignment, metrics and measurement skills, processes, and capabilities!