By David Isaacson, Strategy Director
It’s a natural reaction to crisis mode: laser focus on short-term wins ensuring organisations can keep running during challenging times. But this can create a one-dimensional view of an organisation’s success and the marketing levers that led to it.
In a series of four blog posts, I’m going to explore more powerful ways to measure and leverage marketing effectiveness. Today, I’ll explore ways of simplifying measurements while gaining greater insight from them.
Unsurprisingly, effectiveness measurements now largely favour short-term indicators of performance, pushing teams to focus on communication KPIs at the expense of those that can demonstrate the impact of marketing on long-term growth.
And there is considerable value there, of course. Digital early indicators can provide marketers with informed insights that help them optimise and deliver efficiencies across multiple channels. The information that can be measured at the click of a button is becoming the primary ROI currency in which marketing trades, and it can have a profound impact on effectiveness – as our article How Data Has Transformed Marketing explains.
Powerful though short-term performance indicators can be, however, they rarely support the marketing function in reporting their end-to-end ROI to the organisation.
I would argue, then, that a rebalance of measurement is overdue. So let’s turn our attention away from click-through rates and cost-per-clicks for a moment to explore a simpler but more enlightening way to approach measurement.
Used effectively, these three strategic levers can help you get buy-in from leaders within your organisation, defining the performance of marketing at the organisational level before moving into KPIs and audience data.
1. Marketing impact on the organisation
Defining marketing’s impact on growth will reinforce and rebalance short- and long-term metrics and place marketing back in command of performance. Supported by a strong marketing strategy, real impact can be defined at the organisational level, by exploring the following simple effectiveness insights:
- Brand awareness within the category
- Brand value / advocacy
- Customer lifetime value
- Growth % vs category growth
- Share of voice vs share of growth
- Budget ROI year on year
2. Communications performance
This is where the role of early indicators can have the most impact. Analyse them over the long-term to inform and define the performance of integrated campaign work, exploring the following performance insights:
- End-to-end customer journey metrics through the funnel
- Mixed-media modelling to remove bias on last-click attribution
- Cost per acquisition
- Channel performance metrics
- Campaign ROI
3. Deeper customer insight
Prospects and customer advocacy are what connect short- and long-term effectiveness together in a way that makes sense for the marketing team. Dig deep into the psyche of prospects and customers to truly understand your customer – read our blog on the power of customer insights on an organisation’s performance to see the value in this. That means considering the following data:
- Persona performance – ABM (Account Based Marketing) strategy focused
- Customer retention and upsell (increase in customer lifetime value)
- Customer advocacy / NPS results
Just considering these three crucial levers will put your marketing in a stronger position for the long-term growth of your organisation. Over the next three posts in this series, I’ll look at what really works in measuring effectiveness, the role of audiences and advocacy, and how to pull it all together to refresh your approach to measuring effectiveness.