The brand new Marketing Performance Management Survey, conducted by ITSMA, VisionEdge Marketing and Forrester, found that even though marketers believe that the marketing organization’s ability to measure and report the contribution of its programs to the business has improved and the number of “A” marketers has had a slight upward trend, less than a third of marketers earn an “A” from the C-suite for marketing’s ability to demonstrate its value and contribution to the business.
Survey invitations were emailed during March and April 2013 to the ITSMA, VEM, and Forrester communities. In addition, survey invitations were extended via social media outlets such as Twitter and LinkedIn. 424 people completed the survey and the data was analyzed by marketing performance grade:
- A’s: Marketing demonstrates contribution to the business (Grade: A);
- Middle of the Pack: Marketing makes a difference, but contribution not measured (Grade: B);
- Laggards: Marketing may have an impact, but not known if impact is material (Grade: C/D).
Here are the Key Findings of the Survey:
- Less than 10% of CEOs use marketing data to make business decisions and most marketers are not confident that they are using and reporting the right metrics.
- More than half of marketers are not confident that they know which metrics and outcomes its key stakeholders care about.
- Few marketers use data and analytics as a predictive tool, and few marketers are using metrics and analytics to produce the expected results (business outcomes).
- Many marketers are immature when it comes to using dashboards and models.
- Marketers are primarily reporting:
2. Operational efficiency, not effectiveness;
3. Past performance, not predictive insight.
- The “A” marketers are significantly better at demonstrating:
2. Improving its operational efficiency (doing things right);
3. Communicating how marketing is impacting the business.
- The “A” marketers are more proficient at using data to build analytical models.
- Current dashboards are designed to analyze, track, and monitor performance, yet few marketers are satisfied with their current tools.
- Even the “A’s” average only a 7.3 out of 10 for satisfaction.
- These Best-in-Class “A” marketers:
2. Understand how the business leaders evaluate marketing effectiveness;
3. Connect marketing activities to business results;
4.Produce actionable marketing dashboards;
5. Present marketing’s dashboard to the executive team;
6. Use data and analytics to report past history and as a predictive tool;
7. Employ analytics talent;
8. Invest in analytical tools;
9. Build analytical models;
According to VisionEdge Marketing, there are three questions that every marketer needs to ask their business leaders:
- What specific, measurable business outcome will this program impact?
- How do you expect this program/activity to contribute (what needle needs to move and how far)?
- How will we know and measure that this program achieved the objective(s)?
Further, marketers need to set quantifiable performance targets, e.g.:
- Increase revenue;
- Get more customers;
- Build stronger relationships at senior executive levels at existing accounts;
- Increase brand equity;
- Increase thought leadership downloads.
Marketers should also establish a clear data chain between marketing activities, marketing objectives, and business outcomes:
Source: 2013 ITSMA/VEM/Forrester - Marketing Performance Management Survey: Executive Summary