The study authors contend that most marketing metrics don't do a good job of communicating the value of marketing for three reasons.
- They measure marketing activities, but not important business outcomes.
- They measure operational efficiency, but not the effectiveness of marketing.
- They measure past performance, but they don't provide predictive insights about future outcomes.
- It must measure the performance of individual marketing activities and programs so that marketers can make investment and marketing mix decisions that will maximize results.
- It must enable marketers and other business leaders to evaluate how well their company's marketing strategy is working.
- It must support both strategic and tactical decision making.
- It must enable marketing leaders to measure the efficiency and effectiveness of operational marketing activities and processes.
- Financial and non-financial measures
- Metrics for leading and lagging performance indicators
- Measures that focus on the strategic impact of marketing and metrics that support tactical decision making
- Measures of ultimate business outcomes and measures of activities, outputs, and intermediate outcomes
- Revenue and cost metrics
In my next post, I'll describe what a balanced scorecard for marketing looks like.