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MMS2 PDF

This document discusses marketing metrics and how to effectively measure marketing performance. It begins by covering the importance of aligning metrics with business objectives and outcomes. Next, it defines what metrics are and lists characteristics of good metrics such as being meaningful to customers and driving appropriate action. The document then discusses strategies for aligning business units' metrics and goals with overall organizational objectives. Finally, it emphasizes the importance of marketing metrics for understanding what is truly driving business results and optimizing performance.

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Tejesh Patel
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179 views

MMS2 PDF

This document discusses marketing metrics and how to effectively measure marketing performance. It begins by covering the importance of aligning metrics with business objectives and outcomes. Next, it defines what metrics are and lists characteristics of good metrics such as being meaningful to customers and driving appropriate action. The document then discusses strategies for aligning business units' metrics and goals with overall organizational objectives. Finally, it emphasizes the importance of marketing metrics for understanding what is truly driving business results and optimizing performance.

Uploaded by

Tejesh Patel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Marketing Metrics

Unit 1 – 3 hrs
• The alignment of business objectives,
• Strategies and Metrics;
• The potential gap between metrics and
business outcomes,
• People, planet and profit,
• The importance of marketing metrics,
• Measuring market effectiveness.
What are Metrics
• Measuring system ------that quantifies a trend,
dynamic or characteristic.
• all disciplines, practitioners use metrics ---explain
phenomena, diagnose causes, share findings and
project the results of future events.
• Throughout the worlds of science, business and
government, metrics encourage rigor and
objectivity.
• They make it possible to compare observations
across regions and time periods.
• They facilitate understanding and collaboration.
Characteristics of a good metric:
Characteristics of a good metrics
• Drives appropriate action.
• Meaningful to the customer (member, donor etc).
• Simple, understandable, logical and repeatable.
• Clearly defined.
• Data that’s economical to collect.
• Shows how organizational goals and objectives
are being met.
Aligning Business Units to
Organizational Objectives
• Define organizational goals
• Identify how each business unit
contributes toward reaching
organizational goals
• Develop strategy to achieve goals
within each business unit
• Identify bottlenecks and improve inter-
connected processes among business
units
• Align employee performance to
maximize business unit support in
reaching organizational goals
• Ensure technology investments support
organizational goals
• Optimize system performance utilize
business intelligence automate
reporting capabilities
• Develop performance measure that
drive decision making and progress
toward organizational goals
4 Broad Alignment areas
• Division/departmental performance
alignment
• Workforce performance alignment
• Financial performance alignment
• Resource performance alignment
Common pitfalls to avoid when aligning
performance to strategy
• Inflexibility
• Insufficient vertical alignment
• Insufficient horizontal alignment.
Common obstacles to organizational
alignment
• Organizational culture resists performance
management efforts
• Departments don’t share information
• Lack of vendor integration
• Insufficient information
• Access to information
• Lack of accountability
Strategies and Metrics
• Businesses are obsessed with financial results
because they tell what has happened. But
rarely do businesses fully understand all the
reasons for their financial results.
Marketing performance metrics measure the factors
that are actually driving profits and helps in strategic
implementation in the market.
Barriers to Getting Started Using
Marketing Metrics
• They are too complex and too difficult to use.
• They do not solve my business’s problems.
• There are too many; I don’t know where to
start.
• I do not have the data nor the budget to gather
the data.
• I do not have the time for this type of work.
Successful Plan Implementation
The potential gap between metrics and
business outcomes
• Outcome vs Output

Customers can purchase a new product you just released.


The much more
reliable area of How many sales came in as a
focus Create a campaign on result of this campaign?

Website + Social media Accounts = Sale (Outcome)

Outputs
To Avoid gaps
You can’t pick
your data, but you
must pick your
metrics

Metrics are only


valuable if you Beware of vanity
can manage to metrics
them

Organizations
Search for right
become their
metrics
metrics
Data Vs Metrics
• Understand the difference between numbers
and numbers that matter
Difference between numbers and
numbers that matter
People, planet and profit
The importance of marketing metrics
• Cost to Generate Traffic
• Marketing spending metrics (CPI, reach, frequency, share of
voice).
• Visitor acquisition KPIs (Source of visitor, return visitor,
unique visitor)
• Site Effectiveness Measurements
• Conversion Metrics
• Buyer Metrics (Average order value, CLTV)
• Revenue (Multi channel and e-commerce marketers)
• Customer Loyalty & Profitability
• Profitability and ROI (Channel Margin, Sales Target, Net
Profit, ROS, ROI, NPV, ROMI)
You’re probably spending moneyon areas that
reap no real return oninvestment
Half the moneyyou spendon marketing is
wasted. The problem is, whichhalf?
?
?

?
If only that moneycanbe better allocated to
other areas with proven marketingeffectiveness

The potential upsides are very handsome


Metrics that help measuring marketing
effectiveness
• Unique Visitors
• Page Views
• Search Engine Traffic
• Bounce Rate
• Conversion Rate
• Inbound links

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