According to the Leapfrog Marketing Institute’s 2016 Planning Report, CMOs still find it hard to prove and measure ROI. When asked to what degree their budgets must produce measurable ROI, only one in 10 marketers said 75 percent or more of their budget is accountable — a dramatic drop from 2015, when 40 percent of marketers stated they were planning to measure ROI at that top quartile.
Jason Wadler, chair of the Leapfrog Marketing Institute, says, “Despite the increased priority to measure the impact of their campaigns, CMOs have expressed a downward shift in accountability. Although there is a desire for every marketing dollar to be accountable, it is very hard to achieve that level of measurement.”
Allocadia recently released The Essential Framework for Optimizing Marketing Performance — a report providing guidance on how organizations optimize marketing performance to prove that elusive marketing ROI and make better future decisions. To run your marketing organization like a high-functioning business, this week I’ve collected five tips to up-level your company’s marketing performance management.
Embrace Agile Measurement
“An average of only 36% of companies are extremely confident in their ability to measure ROI of a given channel (37% among digital channels). This is a huge problem given that every month, there are entirely new channels being created that challenge marketers with unknown, unmeasured opportunities. With this rate of change in the market and the explosion of new channels, CMOs need an agile approach for faster testing, measurement and ultimately an ROI-driven approach. Further, as users’ behaviors change, marketers are struggling to identify the right consumer engagement strategies because they cannot flex and adapt quickly enough to the myriad new connection points and channels.” – Read more at Forbes.
Apply the 80/20 Rule
“The one constant in marketing is change, which means you can’t expect the same techniques that work today to work forever. The most productive marketing departments apply the 80/20 rule to their marketing strategy, using proven techniques 80% of the time to ensure a robust return and devoting 20% of their initiatives to more experimental campaigns. This approach recognizes that markets, products, customers and competitors are not static and sets the company up to identify and capitalize on emerging trends, but it requires the ability to analyze individual campaigns as well as the effective campaign types to accurately gauge ROI.” – Read more at Chief Marketer.
Find Adaptable People Who are Good with Data
“Finding the right people for the changing environment is our biggest challenge. We’re hunting for the perfect combination of the data nerd and someone who can take that information, synthesize and present it like a marketer. It’s a balance between the left brain and the right brain. We hire a lot of MBAs into our brand teams and a lot of media people into our media and content teams, but we’re still struggling with bringing in people who understand and can work with data.” – Read more at Digiday.
Use Data to Enhance Campaign Performance
“It’s clear that first-party data can have a significant impact on campaign performance — but when the technology to collect, cleanse and organize that data becomes the bottleneck, advertisers must be more creative to stay competitive. Some companies are realizing the potential that second- and third-party data can bring to their marketing efforts. However, the misconception remains that data from within a company’s own walls is inherently more valuable, which isn’t always true.” – Read more at Marketing Land.
Measure the Saturation Point
“There are diminishing returns if you spray-and-pray for more conversions. At some point, your customer is convinced: She is going to convert (or not), it’s just a matter of when and where. Dig into the data to discover that saturation point, then curb programs accordingly. Pinpointing your saturation points both saves money and builds brand equity by limiting the consumer annoyance factor.” – Read more at MarketingProfs.
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