The key objective of an organization’s marketing efforts is to develop satisfying relationships with customers that benefit both the customer and the organization. In recent years, the marketing field has undergone a tremendous amount of change and has welcomed many challenges. The study – Digital Distress: What Keeps Marketers Up at Night? – polled 1,000 marketing professionals in the US and revealed that marketers expressed low confidence in how their companies’ marketing programs are performing. Only 40% think their company’s marketing is effective. The report further revealed that they are under constant pressure of measuring marketing impact, and 68% of respondents feel more pressured to show a return on investment (ROI) on their marketing spend.
Despite several initiatives and advances, marketers feel the pressure and are anxious about understanding how to create a good marketing strategy that would involve managing complexity and measuring real impact. Today, more than ever, CXOs are holding marketing accountable for setting and achieving specific financial objectives. Every marketer, in some capacity, is responsible for ensuring the growth and success of an organization. Although this task is, in fact, quite exciting, it can also be daunting, crazy, and confusing all at the same time! Possibly, every marketer often ends up spending sleepless nights, juggling multiple tasks, wondering how to “show the money”.
Identifying the right set of marketing metrics that can help marketers communicate their story to the CXOs is of paramount importance. These metrics will aid in driving all marketing decisions and quantifying business impact and ROI. With the right set of marketing metrics, a marketer can answer questions like – How are our marketing initiatives performing today? How about in the long run? What can we do to improve them? Are our marketing resources properly allocated? Are we devoting time and money to the right channels? How do our marketing activities compare with our competitors’? But how do you define the right set of metrics and boost marketing efforts?
Not everything that counts can be counted. Not everything that can be counted counts.
– Albert Einstein
Undoubtedly, because of data management tools and analytics, tracking of marketing effectiveness is no longer considered a burden. However, marketers are still not able to establish the right set of metrics that can ensure that the company’s money is spent on the right strategies and tactics. BRIDGEi2i has created a unique metrics measurement framework that will help you in ending the conundrum revolving around metrics measurement.
Marketing Metrics Framework
The first step in identifying the right set of metrics is to do an assessment of where you are at the moment in terms of your measurement maturity. This should include getting a comprehensive view of:
- Internal indicators like business priorities, data availability, analytics readiness, current measurement process, and historical benchmarking
- External indicators like benchmarking and industry trends
This will give you a 360-degree understanding of what stage of measurement maturity you are in and help you define the right set of metrics you should focus on. Also, it will give you a clarity of vision and expose the gaps and ground you need to cover to become a data-driven marketing organization.
External and Internal Benchmarking
Benchmarking is important – it’s like the mirror that tells you how good you look today. Competition benchmarking helps a marketer gain insights about trends across the industry and how your peers are thriving. It provides the organization with the valuable context that can be used as a yardstick to set meaningful targets and long-term vision to the measurement objectives.
Internal benchmarking unearths new insights, data sources, and problems that you didn’t know existed. Also, it saves you from the trouble of reinventing the wheel and avoiding a lot of trial and error associated with trying out various measurement combinations. Not just that, it gives you historical data points you can use as baselines to compare your current performance vis-a-vis past performance. Hence, benchmarking is an essential ingredient to defining the set of right metrics and future roadmap.
Classification into Stages
After completing the assessment of your measurement maturity, prioritize the set of metrics and put yourself into any of the following stages:
- No standard metrics
- Basic metrics
- Business outcome metrics
- Forward-looking metrics
This framework provides a 360-degree comprehensive view about your marketing spend, more transparency to the measurement process, contextual insights that are actionable, and simplified adoption.
Defining the Right Set of Metrics
Each marketing department has its own unique set of gaps in defining the right set of metrics. The marketing department may have a powerful database but lack analytical tools and capabilities. It may have a seasoned in-house team but lack the right strategy. Filling in these gaps will help every marketer achieve the right set of metrics. Once a marketer is able to nail these metrics, marketing efforts can be improved and customers can be reached in new and innovative ways.
As you continuously evolve and hone your metrics measurement system over time, you have to refine it so it gets better and better. When a company strategically invests time and financial resources in designing the right metrics, it sets itself on the path to success and rapid growth.
Download BRIDGEi2i’s How to Get the Right Set of Marketing Metrics for a guided, step by step, logical approach to take you through the process of identifying the marketing metrics best suited for your organization.