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Why, What, and of How Marketing Measurement


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Kathy Herrmann shows why your company needs to measure marketing, as well as what it involves and how to set up your practice.

Published in: Business, News & Politics
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Why, What, and of How Marketing Measurement

  1. 1. Why, what, and how ofmarketing measurementMarch 2013
  2. 2. Why?
  3. 3. Proactive, integrated measurement leadsto insights that:• Assess the value, focus and precisionof campaign and overall progress.• Benchmark performance.• Gauge market trends.• Evaluate target audienceinformation.
  4. 4. Insights then allow foroptimal alignmentof marketing activities withcorporate objectives andstrategic goals, not justthose for marketing..Gains include:• Defining better strategies.• Optimizing spend.• Making better decisions.
  5. 5. What?
  6. 6. Measurement is only the starting point.The real goal isn’t collecting data. It’s gaining.That is, that will drive making betterbusiness decisions and improving marketingeffectiveness.
  7. 7. The best analystshavebolstered withhorizontalbusinessexpertise.They show thestory behind thenumbers.
  8. 8. Activities ReachRelevance /ImpactOutcomes WorthWhat activitieswere performedto achieveresults?Did you reachyour audience?How manyimpressions,web visits,reports,attendees, etc.weregenerated?Were yourelevant to youraudience? Wereyou credible? Didyour ideas andmessagesresonate? Did youdriveconversation?What businessresults did youachieve?Awareness?Engagement?Reputation?Leads? Sales?Loyalty?Advocacy?What is theestimated dollarvalue of yourcommunicationefforts? What wasthe ROI?Quantity/Output  Quality/Outtakes  Business Impact  Value/EfficiencyHere’s the marketing measurement vision…
  9. 9. How?9
  10. 10. • Build a benchmark system incorporatingindustry standards with your own spin onimportant marketing activities needinginsights.• Goal is to provide overall guidingprinciple(s) for marketing measurement.• Bonus – Benchmark marketing forecastingfor modeling revenue forecasts.1. Establish best practices for measurement.
  11. 11. • Determine the right technology platform tosupport your measurement practice.• Look for solutions that will facilitate attributingmarketing results across multiple customertouch points and campaigns.• Recommended: Integration capabilities intoCRM system.2. Determine the right supporting technology.
  12. 12. • Automation Must-Haves:• Centralized marketing database.• Time series analytics (trending of historical data). Musthurdle big data challenge and be able to store data for atleast 1-2 years.• Basic reporting for non-analysts (Dashboards best for easeof use, build custom report builder, etc.).• Advanced reporting and dashboards for in-depth businessanalysts (spreadsheet-like and charts are most effective.).• Data export capabilities to Excel and Access.2. Determine the right supporting technology.
  13. 13. • Visualize the right metrics mix of:• Traditional marketing metrics (ad metrics,PR metrics, direct mail/email, etc.).• Web metrics.• SEO metrics.• Social monitoring and metrics.2. Determine the right supporting technology.
  14. 14. • Goal is to link marketing outcomes to businessresults to assesses the value, focus and precisionof marketing campaigns and activities.• Must understand business objectives so youknow what the relevant business outcomes are.3. Define campaign-specific measurement plans
  15. 15. • Design marketing campaigns to bemeasureable.• Define marketing activities/processes alongentire marketing activity life cycle forcampaign. Plan for measurementthroughout.3. Define campaign-specific measurement plans
  16. 16. • Plan for determining ROI:• Define Key Performance Indicators thatsupport campaign success based on• Marketing operations,• Social analytics, and• Business results.3. Define campaign-specific measurement plans
  17. 17. • Determine how you will measure marketingresults and how you will convert those intobusiness results.• Ex. of marketing results: Increased awareness,higher web visitations.• Ex. of business results: Increased salesrevenues, lower customer acquisition costs.4. Determine measurement framework
  18. 18. • Avoid measurement pitfalls:• Vanity metrics (“Feel good” metrics with no tiesto business results).• Quantity without consideration to quality.• Efficiency without consideration foreffectiveness.4. Determine measurement framework
  19. 19. • Take active role in revenue forecasting.• Design measurement to forecast yourcompany’s revenue by modeling howmarketing leads will convert to sales overtime.5. Bonus – Marketing forecasting
  20. 20. Measurement challenges
  21. 21. Challenge – Information hoarders.Solution –• Create a shared vision.• Foster a culture that recognizes information sharersas valuable subject matter experts. Rewardcollaborators with:• Financial incentives.• Personal incentives.• Keep people focused.
  22. 22. Solution – UseMeasurement to turnmarketing into revenuecenter from cost center.Show how revenuecontributions will outpacespending.Challenge – Budgetary –How do we pay formeasurement?
  23. 23. Closing thoughts
  24. 24. If you want to: Define bettermarketing strategiesthat align withcorporate objectives. Design moreeffective marketingtactics. Optimize spending. Make betterdecisions….
  25. 25. …then it’s time to buildmarketingmeasurement into youractivities……or use an agency witha strong measurementpractice.
  26. 26. Who?
  27. 27. For other clients, she defines technology requirements thatwill heighten business effectiveness.Kathy Herrmannbuilds better businesses.She propels businesses as a T-shaped pro with verticalpenetration in diverse types of data analysis and horizontalexperience in marketing, sales, customer service, andoperations.For some clients, she improves businessperformance by providing results-focuseddata insights into customer activity andbehaviors, or into operational activities.
  28. 28. KathyHerrmann571-236-7929info@kathyherrmann.comwww.kathyherrmann.comLinkedIn