With a dashboard of marketing metrics and analytics, defense contractors can measure marketing's link to revenues and profits.
John Wanamaker (1838-1922), retailer and marketing pioneer famously complained, "Half of the money I spend on advertising is wasted; the trouble is, I don't know which half."
Wanamaker's frustration has long been the lament of marketers who want to know which of their marketing mix elements are effective (and which are not effective).
In a study by MarketingNPV, the 2 most common questions asked by non-marketing executives are:
- "Does our marketing generate any value for shareholders?"
- "How do we know that marketing really works?"
With marketing metrics and analytics, companies are beginning to get a much better measure of marketing's effectiveness.
In "The Definitive Guide to Marketing Metrics & Analytics" by Marketo, the ebook explains how companies can begin to answer questions such as:
What are the most important marketing metrics for me to use?
How can I measure my various marketing programs' impact on revenue and profit?
How can I best communicate marketing results with my executive team and board?
Which personnel, procedural, and cultural changes need to occur within my organization so I can implement marketing measurement?
Marketing metrics and analytics are improving in part because the role of marketing is changing. In today's online world, marketing is responsible for up to 70% of the customer's buying process. When the the first contact with sales is made, the prospect has already completed most of the buying cycle. This means that marketing and sales are having to rethink how they work together to generate revenue.
Traditionally, marketers have tracked soft metrics like brand awareness, TV/radio ratings points, impressions, organic search rankings, etc. The problem is that those metrics have not been connected to hard metrics like pipeline, revenue and profit.
CEO's and boards don't care about 99% of the metrics that marketers track - but they do care about revenue and profit growth.
For defense contractors, the 2 financial metrics recommended in the guide:
- Revenue Metrics - Marketing's aggregate impact on company revenue.
- Marketing Program Performance Metrics - The incremental contribution of individual marketing programs.
Establishing marketing metrics are a time- and cost-intensive commitment, but the payoffs can be enormous:
When you strategically invest your time and financial resources in developing a marketing measurement model, you position yourself for future success. You'll optimize your overall program mix and prune individual top-performing programs to increase company sales, profits and market share.
Click here to download a copy of the 70-page ebook "The Definitive Guide to Marketing Metrics and Marketing Analytics," or view the SlideShare presentation below.