Measure Results

measureRESULTS

Accurate, consistent and long-term measurement not only determines the results of specific marketing efforts, but also builds credibility for the marketing team as a whole. Marketing used to be known for spending recklessly and emphasizing measurement to build a case for spending money; now, the hard-nosed marketing results driven by accurate measurement builds a new level of trust and partnership with executive management.

Effective measurement approaches are characterized by:

“Going broad and narrow” — not only examining the change in overall customer behavior driven by the specific program, but also examining the effects on specific segments and even individual customers. This approach identifies which customers were successfully motivated to change behavior, permitting the program to be more targeted in subsequent iterations.
“Going short and long” – effective measurement not only looks at the short-term impact of a specific effort, but also examines the long-term changes. For example, did the customers brought in with a specific acquisition programs turn into low-value promotion seekers, or did they become Best Customers? Looking at annual and lifetime value of a marketing effort helps to prioritize efforts and avoid short-term wins that come with long-term costs.
Consistency with other financial measurements in the company. By putting marketing investments in similar format and structures as other company investments, Marketing is able to set performance benchmarks consistent (or superior) to other company investments. Also, the buy-in of the Finance Department reduces obstacles to executive buy-in on results and implications.