In 2000, the Advertising Research Foundation probably didn’t realize that their report about marketing’s ability, or lack thereof, to measure its value and contribution would initiate numerous studies, conferences, and products on the topic. This year’s joint VEM/ITSMA Marketing Performance Management Survey* , which looks at how marketers and C level executives would rate marketing’s value, revealed that 85 percent of the nearly 400 study participants are seeing increased pressure for marketers to measure marketing’s value and contribution.
A key component of the annual study looks at the comparison of the number of marketers earning an ‘A’ grade from the C-Suite for their ability to impact the business and measure their value with their counterparts who are falling short. The grades remained relatively consistent with prior years, with only a quarter of the marketers earning an ‘A’ for their ability to measure and report the contribution of marketing’s programs to the business.
By now one would think this journey would be nearing completion, but there appears to still be plenty to learn. Over the years, the study has revealed that ‘A’ marketers exhibit a number of differences from their colleagues–they are better at alignment, accountability, analytics, automation, assessment, and alliances. The investments in these capabilities and how they approach the work of marketing has enabled them to serve as value creators for their organizations. On the other hand, the marketers in the “middle of the pack” focus more on enabling sales, and the laggards operate primarily as campaign or program producers. In this day and age, with all the technology that marketers have at their fingertips, it begs the question “Why can’t ‘B’ and ‘C’ marketers get close to C-level executives and show their value?”
Become a Value Generator
Marketing organizations that create value are proactive. The ‘A’ marketers hold themselves accountable for contributing to business outcomes even if senior leadership doesn’t. They believe it is their responsibility to identify, investigate, evaluate, recommend, and prioritize market and customer opportunities. These marketers implement continuous change to maximize the organization’s success, and enable it to stay abreast or ahead of market, customer, and competitor moves. ‘B’ and ‘C’ marketers don’t seem to do that, don’t ask the right questions, or don’t know how to show their value.
Make Marketing Performance Management a Priority
According to the data, organizations that are performing well when it comes to customer value and business growth, are those where the marketers excel at performance management. ‘A’ marketers prioritize performance management, establish a clear roadmap for performance improvement, and focus on aligning marketing to the business not just sales. They have regular two-way dialogue with senior leadership and are motivated to select and report on the metrics that matter most.
Here are three qualities of this elite group that any marketing organization can emulate:
- Be a business person first, a marketer second
- Provide customer and market insight to inform business strategy, in addition to enabling sales
- Tap experts to hone skills and improve capabilities
Join the conversation with VisionEdge Marketing and ITSMA in our webinar, The Link Between Performance Management and Value Creation, Tuesday, June 17th, from 10:00-11:00am CST.
*VEM has been conducting the survey for 13 years. ITSMA has co-sponsored the survey for the past three years.
This year, numerous studies of the marketing discipline and numerous articles highlighted the challenge and need for marketing to capture, manage, synthesize and leverage data and analytics. Marketing organizations around the world want to become more data-driven, but the explosion and rapidly growing volume of data as well as the lack of effective tools make this difficult. In the meantime, they are revamping their organizational lineup, adding more analytical talent and capabilities that enable them to boil oceans of data and produce mountains of reports.
Access to this information and refined analytical and process skills create an opportunity for marketers to generate business-relevant insights. Having the necessary skills and technological infrastructure are becoming table stakes to successfully compete and serve customers. These capabilities are evolving into the building blocks of every marketing organization’s foundation. Today, marketing leaders use data, analytics, metrics, and modeling to tackle point problem and to enable organizational change. To be effective change agents, marketing leaders need to move from being a blocking and tackling organization to taking a more holistic approach — one that integrates analytical, process, strategy, planning, and performance management expertise.
Being a change agent is a noble aspiration, but what does that entail? Change agents are catalysts. A successful change agent improves the organization’s ability to achieve a higher degree of output. When acting as a change agent, marketing leads the creation of a vision of what could or should be. Marketers then identify what it takes to realize this vision and go about amending or replacing strategies, procedures, and processes that are obstacles to achieving the vision. We operate on two planes — one where the organization currently is, and the other being the ideal state.
Since marketing should be the antenna for the organization — gathering and interpreting the signals — we are in a better position to act as change agents. The business environment is always changing, and therefore, the company that can create, manage and master change has the greatest potential to thrive. Being a change agent means more than just coming up with a brilliant idea — it is about bringing the idea to life and engaging the rest of the organization. Creating, managing and mastering change is a skill. The skills we have in marketing to connect and engage with external customers and prospects are the same skills we need to connect with and engage people within the organization. That’s what gives marketers an advantage as change agents. The steps we use to impact and drive change externally also enable marketing to impact and drive change internally.
These vital steps are:
1. Link change explicitly and tightly to real performance outcomes. Change is not for the sake of change; change should improve business performance. The result of change should be concrete, specific, quantifiable, business outcomes.
2. Develop concrete initiatives that support the outcomes and focus on what it will take for these initiatives to affect the organization’s operation in a positive way.
3. Include the human dimension in your calculations. People do what people do. They embrace, they resist, they obstruct, and they rise to the occasion. Listen closely. People dodge drafts. Find ways to enroll people into the process.
4. Develop and market the message. When we sell to different market groups, we develop appropriate campaigns. Employ this approach inside. Segment your internal markets and tailor the message accordingly. Leverage both the informal and formal networks.
5. Disruption is an important part of the process. Being a change agent means you’re going to discomfit people around you. You’re going to interrupt the “way we do things.” As change agents you must be able to step outside of your own comfort zone if you want to take people outside of theirs. Key to being a change agent is producing and keeping a healthy tension alive in the organization.
Here’s an important point to remember about being a change agent — the first person who must change is you. A change agent models the way. We must live the vision we see and the behavior it requires if we want others to do so. The rest of the team will be watching us. We must develop the skills and techniques to change how we work if we’re going to help others acquire the skills and techniques to change how they work. Being on the front line enables us to capture, manage, and synthesize market and customer data sooner and faster. As a result we are ideally situated to use analytics, metrics, and process to act as organizational change agents.
Considering our purpose as marketers, we should be placing customers at the center of our marketing efforts. That’s truer today than ever before, because customers have more choices, more control, more ways to connect, and more access information. No wonder marketers everywhere are scrambling to develop content and make use of the myriad of channels to reach and connect with prospects and customers.
Many marketers have gotten so caught up in the creation of content, however, that they have forgotten how important it is to match marketing content with the customer buying journey and life cycle. Content delivered in the right channel at the wrong time can be a wasted touch point.
Too few marketers have mapped their customer’s buying journey and moved from profiles to personas, and therefore few clearly understand their customer’s life cycle. Because keeping a customer is more cost effective and profitable than acquire a new customer, knowing both the buying journey and the customer life cycle is important.
The Customer Life Cycle
One common definition of customer lifecycle is “the progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service.” The key point is to recognize that the life cycle defines an ongoing relationship and continuous dialogue.
Forrester defines the customer life cycle as follows: “The customers’ relationship with a brand as they continue to discover new options, explore their needs, make purchases, and engage with the product experience and their peers.” In our company, we talk about the Six Cs associated with this process:
Whether you use this approach or another, the premise of the customer life cycle is the same: Capture potential and existing customers’ attention, preference, purchase, and loyalty.
As marketers, we can and should use the customer lifecycle as the basis for every marketing investment decision we make that’s designed to acquire, retain, up-sell, cross-sell, and create customer advocates. Only by understanding the customer life cycle can marketers make better decisions about the additional marketing investments of time, people, and cash on customer-targeted efforts.
Content and Life Cycle
The purpose of content marketing is to deliver high-quality, relevant, and valuable information to prospects and customers in the right channel at the right time to drive profitable customer action. Content marketing is not the same as running a campaign. Content marketing looks more like publishing, where you serve as the architect of useful and compelling information that will inform, educate, engage, and entertain customers and prospects. Content marketing is part of the marketing mix, not a substitute for it.
If you serve more than one market or region, and your product requires a consultative approach, you will likely have multiple customers and will therefore need to map content to multiple buying journeys and life cycles. Perhaps the following examples will help bring this point home.
Let’s say you currently market and sell a technology product to IT buyers and decision-makers in the federal government. Your research suggests that there may be a strong growth opportunity in the Emergency 911 system—a quasi-governmental system. If you didn’t map the customer buying journey, you might assume that the buying process for the Emergency System was the same as for any other government agency. And you might also assume that the profile of the IT buyer at these sites would be the same as the IT buyer at the agency. Only by mapping the buying process would you learn that these are two very different personas and two different buying processes with different marketing content implications. White papers and tradeshows may be far more important in the early stages of the government-agency buying process, whereas webinars and videos of the system in use are more important in the early stages of the buying process for the emergency services sites.
How can we record this process when most customer buying journeys and lifecycles are not linear? Though it is impossible to completely capture and monitor the entire buying journey and decision, mapping the process helps you capture channel preferences and interactions. You may not be able to know exactly which colleague, analyst, online and offline channels a customer used, or which publication informed the decision, but mapping the buying journey and customer life cycle will give you insight into when and how they are influenced.
Mapping the Journey and Life Cycle
The approaches to mapping differ. Regardless of the approach you take, you should include input from all internal people who are in contact with customers (Sales, Marketing, Customer Service, and Product Marketing) as well as input from the customers themselves. The mapping process should take into account the following:
- Initial triggers that lead to first contact
- Steps they take (industry reports, product reports and reviews, white papers, demos, etc.) and the conversations (analysts, colleagues, event encounters, call centers, salespeople, etc.) they engage in to solve their problem and find a specific solution
- Steps and experiences leading up to their purchase (the RFP, reference calls, pilots, etc.)
- Steps associated with the purchase and consumption (the on-boarding process, purchasing processes, implementation, invoicing, etc.)
- Ongoing experience and reaction to their purchase (problem resolution process, new product offers, community participation opportunities, etc.)
Once you’ve mapped the process and organized each step into the appropriate stage, you can begin to match marketing content with the buying process and life cycle. Two important benefits of the mapping initiative are improved Marketing and Sales alignment and a more behaviorally based opportunity-qualification process.
Matching Mix, Content, Channel, and Life Cycle
The links between marketing activities, content, and the customer buying process and life cycle will become clearer once you complete the mapping process. You’ll realize that different programs and content will be more valuable and appropriate at different stages depending on the customer process. The map will serve as a guideline for improving the utility of your mix and the content you use to connect and engage with customers and prospects, as well as to enhance existing customer relationships.
For example, you may learn from the mapping process that traditional in-person events and presentations are far more valuable at creating contacts and connections for a specific segment than social media and blogs are. Your map may reveal that webinars with industry experts are a viable touch point for consideration for some customer segments while online chats with existing customers and traditional telemarketing are more effective for other segments. Through the process, you may learn that traditional e-newsletters are ideal for staying connected with one set of customers, whereas an online community with guest posts is better for another. Marketing will then need to select the program and build the content that supports the preferred channel for particular touch points in the process.
Jamie, the VP of Marketing at one of our manufacturing companies, in a recent conversation expressed excitement about securing someone from the finance group to support marketing data and analytics. “It took 2 years of lobbying but now we’ll be able to make better and more informed decisions,” said Jamie. To which I replied, “Awesome!”
Then, in my usual fashion, I asked a series of rapid-fire questions:
- What decisions are you hoping to make and in what priority order?
- What and where is the data that they will be accessing?
- What is the data capture and management plan?
- Is he just going to start delving into the data( A.K.A. boiling the ocean to see what treasures await) or are there specific insights about customers or the market that you want to gain?
- How will his contribution be measured?
- Is his role specifically digging into and analyzing data- and if so for what?
- Will he serve your team in a broader capacity a.e marketing ops, performance management and reporting?
Well, you can see the line of questioning.
Jamie said, “Whoa, I didn’t really think about what he was going to do or how, I just knew we needed someone who was comfortable with data and analytics because this isn’t my strong suit.” I said, “Adding this capability to your team is a great win, and demonstrating how it will prove and improve the value of marketing will create an even more important win. Now that you have this person, it might be a good idea to take some time to think about and decide function’s scope, role, purpose, etc.”
Jamie said, “Yeah, these are good questions and getting off on the right foot and in the right direction is really important for the team and for him. It almost took a miracle to get this person; we won’t get a second chance at it.”
Jamie asked if we could schedule a meeting next week to discuss things further. I said, “Of course, it would be our pleasure. In the meantime, your person may find our Marketing Operations: Enabling Marketing Centers of Excellence and from Intuition to Wisdom: Mastering Data, Analytics and Models white papers helpful .” As we set a date for our next call, Jamie said in closing, “ Downloading these as we speak.”
None of us would agree to play a card game with cards missing from the deck; we would know that the odds of winning would be significantly diminished. Yet surprisingly, many marketers are willing to implement marketing programs sans analytics.
In the past few weeks I have attended several marketing conferences. At each event, marketers are talking enthusiastically about how to make Web sites, SEO, social media, email campaigns, and mobile better. However, there is very little conversation about how to be smarter. Analytics is an essential card — actually an ace — in every marketer’s deck for enabling fact-based decisions and improving performance, and most importantly, for being smarter.
While the ace alone has value, when played with other cards its power is truly revealed. And when it comes to analytics, the other card is data. Yes — we have all heard the common complaint about the elusiveness of quality data. Unfortunately, data quality has been an issue in organizations for so long that it has now become the ready excuse for why marketers cannot perform analytics. To harness the power of your analytics card, identify your data issues and create a plan to address them.
Another reason that you may overlook this missing card in your deck is that guessing or gut instinct has been working well enough. Unfortunately, this approach may not suffice in the long-term and your “luck” may run out as organizations push to make “smart” decisions. As marketers, analytics is our opportunity to actively contribute to fact-based decisions. Through analytics, marketers achieve new insights about customers, markets, products, channels, and marketing strategy, programs and mix. It also enables marketing to help improve performance, competitiveness, and market and revenue growth.
As the importance of analytics gains momentum, marketers with analytical acumen will be in great demand. According to some resources, the complexities of data analysis and management are becoming so enormous that there is a shortage of people who are able to conduct analysis and present the results as actionable information. Taking the initiative and honing your analytical capabilities will enable you to make sure you have this ace in the deck — and preferably, in your hand.
Most of us are already working with a time and resource deficit. Try to find a way each quarter to bolster you analytical skills. Attend a conference, read a book, take a class, and bring in experts you can learn from. Here are some key analytical concepts and skills to add:
· Quantitative Decision Analysis
· Data Management
· Data Modeling
· Industry and Competitive Analysis
· Statistical Analysis
· Predictive Analytics and Models
· Marketing Measurement and Dashboard
If you can build your analytics strength, you’ll always have an ace in your pocket.
If you’re like us, you probably have one of those piles on your desk that keeps being moved from one corner to another. You know that pile you need to get to but avoid because it will take some real effort to tackle. For many marketing professionals, marketing accountability, analytics and ROI are in this pile. Not too long ago at a marketing conference where Laura was speaking, the organizers had set up round tables with specific topics for discussion over breakfast. Laura was sitting at the measuring marketing ROI (return on investment) table (of course, where else would I be sitting?) which was strategically located right next to the buffet line. While she was sitting there waiting for people to join her, she kept hearing people say, “Oh measuring marketing,that’s just too hard.” There were hundreds of marketers attending this conference, and about 2 dozen tables of 10 were set to accommodate the early risers. Yet only four other brave souls joined her.
We must stop avoiding this topic and tackle the pile. As Sylvia Reynolds the CMO of Wells Fargo says, “Marketing must be a driver of tangible business results…we must start with the goal in mind and a clear way to measure that goal.” ROI is important for accountability–besides being able to justify spending and enable us to run the marketing organization more effectively and efficiently, knowing what is and isn’t working helps marketing achieve greater influence and serve in a more strategic role. Various surveys suggest that over a third and as much as 42% of marketing budgets are not adequate enough to achieve the outcomes and impact expected.
Perhaps your organization like many others is in the thick of budget planning. A key part of budget planning is to establish and validate the money you plan to spend. The more aligned marketing is with the outcomes of the organization and the more the plan includes performance targets and metrics, the more likely you will be allocated the budget you need to achieve the expected results.
So what does it take to tackle this Marketing Accountability pile? Here are six affordable steps any marketing organization can take to start whittling away at the marketing accountability and measurement pile.
1. Focus. Nothing of importance miraculously gets done on its own. To effectively tackle the marketing measurement pile will take all of Covey’s seven habits: from taking a proactive approach and beginning with the end in mind, that is the outcomes you are expected to impact, to keeping the effort a priority when other things present themselves as urgencies to making marketing measurement a win/win for you, your team, and the rest of the organization. More than likely, you are going to need a cross-functional team to tackle this pile – people from finance, sales, IT, operations, etc. working collaboratively together to define the metrics and hunt down and organize the data.
2. Plan an attack. You know that age old question, “How do you eat an elephant?” The answer being, “One bite at a time.” This is true for the marketing accountability and ROI question. If this is a new effort for you, you need to break it into manageable pieces. Quantify your objectives, decide how you will measure them, collect the data that you need to meet the objectives, establish a baseline, gain commitment to the measurement plan, and finally, measure.
3. Get data: “Data is the new creative,” declares Stephan Chase of Marriott Rewards. Establishing metrics, determining effectiveness, understanding efficiencies, all take data. Without data you cannot monitor and measure results. And don’t assume that you have the data that you need to measure your objectives. For example, if you want to measure how many new customers you interest in a new product, you may find that you need first to determine what a “new” customer is. This may require different views of your existing customer records or new strategies for evaluating.
4. Analyze: Once you have the data, the challenge is to generate insights that facilitate fact based decision making. One of the most valuable applications of data and analytics is in leveraging your metrics. The metrics are what enable continuous improvement as you strive to achieve and set new performance standards. Just looking at numbers doesn’t tell you as much as evaluating trends or creating statistical models that help you identify an optimized approach to your marketing efforts. Consider looking at your measurements for what isn’t immediately obvious such as what might have happened if that campaign had gone to the three bottom deciles of customers?
5. Use a systematized process: You may need to set up systems and processes that enable you to capture and track results on an ongoing basis. Many organizations put a substantial amount of energy into initiating these programs and then let them fizzle as other priorities surface. It takes both process and discipline to sustain a measurement effort. Systems help you automate a process so that the process can become a manageable part of your day-to-day operations. Today every marketing organization is moving at a breathless pace. Implementing test and control environment can keep you from having a fatal, head on collision
6. Train. Many marketers are unaccustomed to living in a metrics-based environment. You may need to invest in measurement, analytics, as well as data training and skills development. Start by taking a skills inventory. Find out who in the organization has data management, analytics and measurement skills. Decide what skills they need to perform at your expected levels. Develop training that fills the skill gaps. Doing this in-house allows you to tailor to your needs, but consider courses from universities, associations and external consultants to fill out your requirements.
Moving marketing performance metrics from the “too hard to” pile to the “we can do it” pile can reap rewards for the entire organization.
For more information on Marketing Alignment and Accountability, download our Free White Paper: Charting a Course for Marketing Effectiveness: Alignment & Accountability