Professional Documents
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Executive Summary:
Introduction 3
Conclusion 12
Introduction
Over the past 10 years there has been a distinctive shift in Marketing
activities; budgets are only being allocated to investments that can
produce measurable returns, such as sales support and lead generation.
In a time of Sarbanes-Oxley compliance, repeatable controls, processes,
and policy & procedures, have been implemented to ensure
accountability.
Customer
Product
Brand
Channels
Efficiency
Organizational Development
Environment (macro-economic)
Once the key metrics have been established to highlight performance for
that aspect of marketing, data can be sorted by: geography, business
unit, markets, or any other relevant perspective.
There are numerous reasons why you should consider improving your
performance measurement system for marketing.
Next, we will examine these stages and provide practical advice to help
you with each step of the implementation.
First, determine the goals & objectives of your project plan. Ensure you
have alignment with the general business strategy, and create high-level
goals that will resonate with your sponsors at the executive level.
Having a detailed roadmap of your project will ensure that you stay on
track, gain momentum as you achieve milestones, and manage
expectations accordingly. Many performance measurement initiatives
have failed as a result of improper planning up-front. To minimize risk,
be sure you invest the time to document what you are trying to
accomplish.
While you are mapping your knowledge base and gaps, you will develop
hypotheses about the relationships between key data and predictive
insights. For example, you may draw parallels between client
satisfaction and customer retention rates which influences profitability.
The whole goal of a Marketing Dashboard is to help you understand the
casual links between marketing performance and business results.
After you have documented what you need to know, assess the value &
cost to obtain that information. Pluck the low-hanging fruit that is high
value & low cost; disregard completely what is low value, high cost;
ignore the low value, low cost; and work slowly towards the information
that is high value, high cost.
Over time, you will test & refine your hypotheses regarding the causal
chains, eliminate redundant measures, sort, prioritize, and learn which
are truly the most effective indicators of performance. Keep structure in
mind, as it will be easier to glean insight and identify patterns if your
metrics are organized in a sensible way. In the end, you will likely focus
on 10-20 key metrics that help you operate more efficiently &
effectively.
Your metric for effectiveness can now be the actual change in CBV for
each period compared to the expected change in CBV. If a particular
initiative, like CRM, is expected to increase CBV by a certain amount,
you can now measure the effect of that program based on a real
increase in CBV. Similarly, marketing efficiency can be defined as
change in CBV/dollar spent.
Given that strong brands produce returns over a longer period of time,
you need to develop a method of calculating brand equity and track its
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The successful link between your Activities and Brand Image depends on
how clear, differentiated, and consistent your messages are. Gaining a
positive Brand Equity relies on having competitive advantages that are
relevant to your market, and ensuring that you are correctly positioned
in the mind of your customers & prospects. Understanding why
customers buy from you, or from your competitors, will help you adjust
your activities to maximize economic value.
Your Brand Scorecard should track how effective your activities are at
developing brand imagery; how your imagery creates the right attitudes
and beliefs; and how these equities are creating tangible returns in the
form of Customer-Base Value (CBV). It is essential that you define, test,
and demonstrate clear links between each of these stages, if you are to
continue to obtain funding for long-term Branding programs.
There are many software tools in the market that can assist you with
collecting & organizing data, building reports, and establishing your
Marketing Dashboard. Some companies will find it suitable to build an
internal Marketing Dashboard solution with help from the I/T
department; most will find it easier to implement a standardized, proven
solution, in the form of an on premise or on-demand platform. Click
here to request more information on how to select the right MPM
solution for your business.
If you don’t want to invest in a software solution, try using our Sales
and Marketing Performance Dashboard to collect, analyze, and
communicate key performance indicators and metrics for sales &
marketing.
Customers
Branding
Advertising & Public Relations
Events & Tradeshows
Direct Marketing
Website & Online Marketing
Sales
Marketing Collateral
Channel Sales
Pricing & Discounts.
Conclusion
Now that you know what Marketing Dashboards are, what benefits they
bring, and have an understanding of the high-level implementation Best
Practices, discuss this initiative with Senior Management.