Which Metrics are Best for Your Marketing Organization?

It’s wonderful to see so many folks focused on Marketing metrics and accountability. The past few weeks we’ve fielded a lot of questions on selecting Marketing metrics. Here’s how this conversation typically begins.

An email arrives with this plea, “our CXO (insert CEO, CFO, COO, your pick) wants us to develop an X metric (insert customer, growth) that will show how Marketing is impacting the business. We’re thinking about one of these (there’s usually a list something like customer loyalty, rate of customer acquisition, brand preference, Marketing ROI), which one should we use?”

Often, this results in a quick call where we ask questions such as, “What motivated your CXO to request this metric?” What does your company need to accomplish to achieve success? How will they know Marketing made a difference?

Yes, there are categories of metrics every Marketing organization needs but the specific metrics right for your organization varies.  

These three scenarios will help explain why:

Scenario 1

Let’s say you’re in an organization that has solid market share across the product portfolio in all the primary segments. The leadership team wants to grow faster than the competition in existing markets, where you already have a strong presence.

For this company, growth depends on customers continuing to prefer and refer your brand, retaining customers and expanding your footprint within the existing customer base.  These will become the foundation for Marketing’s objectives and metrics.

Scenario 2

Let’s say you’re in an organization where revenue from new products being brought to market is how the company plans to achieve its organic growth goals. These new products reflect new categories for your company and they will be initially released into existing markets where there is the opportunity for the products to be purchased from existing and new customers in these markets.

While there is competition, this company will be a first mover. For this company, growth depends on the adoption of these new products, achieving category ownership, customer preference and adoption, and ultimately, a different set of objectives and metrics for Marketing.

Scenario 3

Let’s say you’re in an organization that faces significant and highly-regarded competition. Your company’s products are well known and used by a highly specialized finite number of end customers who are all very professional and connected to one another.

The company primarily depends on partners to drive growth. For this company’s success is dependent on partner’s and end users preferring and recommending the products. Marketing’s objectives and metrics will be tied to these success factors.

It’s not how many metrics you have. In some instances, you will need several, in others, maybe only one. The key is to have the metrics directly linked to the outcomes.

Outcomes first – then metrics. Once you select the metric that connects your Marketing objective to the business outcome, make sure every effort associated with the objective has a quantifiable customer-centric performance target. This is the only way to build the chain of measurements and metrics that link the work of Marketing directly to business results.

Need further consultation into how to tune up your metrics and measures? Read our blog article discussing the subject. Feel free to add in a question in the comments. 

Often, this results in a quick call where we ask questions such as, “What motivated your CXO to request this metric?” What does your company need to accomplish to achieve success? How will they know Marketing made a difference?

Yes, there are categories of metrics every Marketing organization needs but the specific metrics right for your organization varies.  

These three scenarios will help explain why:

Scenario 1

Let’s say you’re in an organization that has solid market share across the product portfolio in all the primary segments. The leadership team wants to grow faster than the competition in existing markets, where you already have a strong presence.

For this company, growth depends on customers continuing to prefer and refer your brand, retaining customers and expanding your footprint within the existing customer base. These will become the foundation for Marketing’s objectives and metrics.

Scenario 2

Let’s say you’re in an organization where revenue from new products being brought to market is how the company plans to achieve its organic growth goals. These new products reflect new categories for your company and they will be initially released into existing markets where there is the opportunity for the products to be purchased from existing and new customers in these markets.

While there is competition, this company will be a first mover. For this company, growth depends on the adoption of these new products, achieving category ownership, customer preference and adoption, and ultimately, a different set of objectives and metrics for Marketing.

Scenario 3

Let’s say you’re in an organization that faces significant and highly-regarded competition. Your company’s products are well known and used by a highly specialized finite number of end customers who are all very professional and connected to one another.

The company primarily depends on partners to drive growth. For this company’s success is dependent on partner’s and end users preferring and recommending the products. Marketing’s objectives and metrics will be tied to these success factors.

It’s not how many metrics you have. In some instances, you will need several, in others, maybe only one. The key is to have the metrics directly linked to the outcomes. Outcomes first – then metrics.

Once you select the metric that connects your Marketing objective to the business outcome, make sure every effort associated with the objective has a quantifiable customer-centric performance target. This is the only way to build the chain of measurements and metrics that link the work of Marketing directly to business results.

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