By M. Isi Eromosele
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
- Measurement
must be visible
- Measurement
must drive improvement
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.
Measurement Must
Drive
What many marketing executives most need is a comprehensive
decision making framework to help assess various marketing initiative options
in a diligent and rigorous way. This framework can help guide judicious
investments, enabling marketers to compare and assess outcomes, and then
reinvest for maximum returns.
Measurement enables us to test our assumptions, discover what
is working and what is not, and continually refine our performance. Measurement
is not simply about accountability.
Marketing measurements should drive new improvements and
performance gains. Such measures can help us generate growth in customer value
and take the actions necessary to ensure that the marketing organization is
performing at peak levels.
Marketing leaders can take action to ensure they are
maximizing the return on their marketing investments. They may discover that
they need to shift resources from
customer acquisition to customer development. They may find
they need greater skills and expertise in terms of customer segment analysis and
management. They may learn that the marketing organization is not aligned with key
channels.
M. Isi Eromosele is the President | Chief Executive Officer | Executive
Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance
Copyright Control © 2012 Oseme Group
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