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WHITE PAPER SEPTEMBER 2005
TM
ConnectusDirect
Designing Accountability:Marketing Measurement and Marketing Intelligence
By Dan GibbonsEcommerce StrategyConnectus Direct Solutions
MANAGING THE CUSTOMER RELATIONSHIP LIFECYCLE ONLINEWHITE PAPER SEPTEMBER 2005
MANAGING THE CUSTOMER RELATIONSHIP LIFECYCLE ONLINE
Executive Summary More Than Measurement
Marketers are being urged now more than At some level, marketing will always fail to be ever to prove their worth. Senior manage- accountable, because at some level it is about ment is demanding that all marketing ex- things that cannot be measured. The speci?c penditures have a clear objective, and that reasons, for example, why an individual con-these objectives be quanti?ed and meas- sumer chooses to believe in a particular brand ured. Few believethat the ROI of every mar- might have a lot to do with a long chain of keting dollar can be isolated;however, there cause and effect, very little of which can be is a broad consensus that marketing is not quanti?ed. It would be false to propose that all doing enough to demonstrate its value. of the uncertainties will one day be removed.
The demand for accountability in marketing Despite these uncertainties, though, and par-has given rise to an increased focus on mar- ticularly at the most senior level, accountabil-keting data, and the use of marketing data ity is demanded of marketers now more than to demonstrate the value of particular activi- ever before. The proliferation of ways to col-ties, such as advertising campaigns. Online lect and manage customer data is a large part marketing, CRM and SFA systems, as well of this demand, in that the expectation now as the traditionally data-centric approach of is that companies must use this data to de-direct marketers, mean that more data than liver better returns on each marketing dollar ever before is available to tell corporations spent.who they are talking to and how consumers are responding. This white paper addresses the topic of Mar-keting Intelligence (MI), and the extent to In the context of the wealth of available which a properly deployed MI strategy can marketing data, new acronyms such as MPM transform both the information available to (Marketing Performance Measurement) are marketers about the effectiveness of their being used to articulate the need for corpo- spend, and their ability to better direct this rations to embrace marketing measurement spend to enhance ROI. as a de?ned and rigorous discipline. As this paper illustrates, marketers need to This paper discusses both the bene?ts and focus on three core components in their ap-the pitfalls of the increased focus on mar- proach to MI: Strategy, technology and ac-keting measurement, and describes how a countability. Giving appropriate attention and comprehensive Marketing Intelligence strat- resources to each of these components is ul-egy can be used to report on the full spec- timately what allows marketers to develop an trum of marketing activities. Particular em- MI approach that produces long-term value.phasis is placed on the value of measuring more than just direct response marketing, and on methodologies for organizing mar-keting data so that the in?uence of brand building and other indirect forms of market-ing can be fully understood and optimized.
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SEPTEMBER 2005 WHITE PAPER SEPTEMBER 2005
MANAGING THE CUSTOMER RELATIONSHIP LIFECYCLE ONLINE
The Consequences of Being Unaccountable
It's quite ironic that marketing, the industry responsible in part for the image of the brands it manages, has an image prob- ...there is clear linkagelem. It is perceived by many senior executives and boards of between accountable directors as a black hole of wasted money, with no discernible proof that it works or doesn't. "marketing and increases in
Consider the following: the marketing budget. In
As recently as 2003, only one of the top 20 companies in the 2004, for example, Fortune 500 (General Electric) even had a Chief Marketing Of?cer. companies that
Only ?ve FTSE 100 companies have dedicated marketing di- comprehensivelyrectors on their boards. measured marketing At the world's 100 largest branded companies, the average results increased their tenure of a Chief Marketing Of?cer is under two years.1. marketing budgets by an The consequence of this perception is not just ... [download for more]
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