In order to establish a comprehensive and integrated marketing perspective, your company must have the discipline to rigorously measure the performance of its present marketing activities. These measurements lay the foundation for performance improvement.

Companies must recognize that there are a few essential objectives that must be set and met if they are to produce valid metrics on an ongoing basis and successfully rely on them to drive improved sales and profits. The following three principles must guide a measurement-driven marketing performance culture:

Measurement Must Be Relevant

The most highly sought-after financial outcomes for companies may include increased shareholder value, revenue and profit growth. To achieve these financial results, a company’s marketing must target more immediate performance objectives. There must be strong linkages between key measures such as customer satisfaction, cross-selling or campaign response rates and the financial results it seeks to produce.

These links are not as obvious as one might think. Even marketing campaigns that are apparently successful may not be truly successful if outcomes are misaligned with objectives. Consider a no-interest financing campaign for new cars that generates tremendous response, but merely eliminates all profit margin on the purchase.

Measurement Must Be Visible

Essential to the continuing success of today's marketing organizations is their ability to determine and clearly communicate the impact of their activities. While it is clear that most companies have important benefits to gain from smart marketing measurement, it is hardly certain what the most relevant metrics of marketing performance might be, since it varies from one company to another.

The level of resources that must be devoted to the measurement task will also vary. This wholesomely depend on industry dynamics, the size of marketing budgets overall, and each organization's existing proficiency in measurement.

Marketers must put their best effort into measuring the outcomes of their current marketing activities and investments. This is the critical foundation on which marketing improvement, and, perhaps innovation will emerge. Marketers must measure to determine where they should invest, and where performance improvements are necessary.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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