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EFFECTIVE MARKETING
DASHBOARDS
Table of Contents
Executive Summary 3
Introduction 4
Executive Summary
Measuring marketing performance has become a top priority for almost
every organization, yet most do not have a comprehensive system in place.
Introduction
Over the past 10 years there has been a distinctive shift in Marketing A simple approach to measuring performance is implementing a
activities; budgets are only being allocated to investments that can Marketing Dashboard. This report will define Marketing Dashboards,
produce measurable returns, such as sales support and lead generation. highlight their benefits, and provide high-level Best Practices for imple-
menting an integrated performance measurement system.
In a time of Sarbanes-Oxley compliance, repeatable controls, processes,
and policy & procedures have been implemented to ensure accountability. Before implementing any MPM solution, be sure to read our summary,
Get Ready to Measure Marketing Performance and complete the
This cultural shift is spreading into Marketing as senior executives
Dashboard Readiness Assessment.
have witnessed increased efficiency & effectiveness by standardizing,
measuring, and benchmarking key metrics in functions like Finance, IT, If you are already measuring your marketing performance, use our
Sales, and Operations. Marketing Measurement Maturity Assessment to benchmark your
strengths & weaknesses and identify areas for improvement.
Structured processes and analytics are new for most Marketing depart-
ments, so it is no wonder that in a recent CMO Council Survey, Marketing
Performance Measurement was highlighted as a significant priority by
over 90% of the companies.
Strikingly, less than 14% of these companies reported having any type
of comprehensive system to measure Marketing. Those who did have
systems in place significantly outperformed their competitors in revenue
growth, market share, and profitability.
Use Key Marketing Metrics Dashboard to define, track, and VIEW RESOURCE
report on your key marketing metrics.
IMPLEMENTATION BEST PRACTICES IMPLEMENTING EFFECTIVE MARKETING DASHBOARDS BEST PRACTICES GUIDE 7
Work backwards from the business objectives to identify what In the initial stages of your dashboard, you may have an alarming number
marketing needs to do to support these goals. If market share is of key performance indicators that have been highlighted. A typical
the key performance indicator, attempt to find that kind of infor- company will have anywhere from 25-40 of these measures, based on
mation so you can put a stake in the ground. Alternatively, if you the 7 key categories of metrics.
are in a mature market, your key benchmarks might be focused Over time, you will test & refine your hypotheses regarding the causal
on client retention or superb customer service. chains, eliminate redundant measures, sort, prioritize, and learn which
After you have documented what you need to know, assess the are truly the most effective indicators of performance.
value & cost to obtain that information. Pluck the low-hanging Keep structure in mind, as it will be easier to glean insight and identify
fruit that is high value & low cost; disregard completely what is patterns if your metrics are organized in a sensible way. In the end, you
low value, high cost; ignore the low value, low cost; and work will likely focus on 10-20 key metrics that help you operate more effi-
slowly towards the information that is high value, high cost. ciently & effectively.
Following is an example of a matrix that you can use to map Most companies are able to effectively measure direct mail, telemar-
your knowledge needs. keting, and internet marketing, as many software tools have these
capabilities. While these areas are certainly important, don’t forget
High
that branding, channel marketing, sales & marketing collateral, adver-
Do now Do Over Time
Value tising, and market research represent a significant portion of marketing
budgets, and therefore need to be analyzed and measured.
Low Ignore Never Do
Value Build momentum with the easier areas to measure, but don’t omit the
other aspects.
Low Cost High Cost
IMPLEMENTATION BEST PRACTICES IMPLEMENTING EFFECTIVE MARKETING DASHBOARDS BEST PRACTICES GUIDE 10
Instead of focusing on return on investment for each marketing Your metric for effectiveness can now be the actual change in CBV
program individually, establish a Customer-Base Value (CBV) for each period compared to the expected change in CBV. If a partic-
benchmark that you can monitor to track results. Work with ular initiative, like CRM, is expected to increase CBV by a certain
Finance & Accounting to agree on the calculation for Custom- amount, you can now measure the effect of that program based on a
er-Base Value. real increase in CBV. Similarly, marketing efficiency can be defined as
change in CBV/dollar spent.
Take the total number of customers and multiply that by the net
present value of these customers (gross profit contribution) over Both efficiency and effectiveness measures are best analyzed from
their average lifetime. a historical perspective and compared to targeted goals. Setting and
refining goals and expectations will help your organization continuously
Be conservative with your estimates and only take into account
improve and advocate performance measurement.
the products that your customers are currently purchasing or
expected to continue purchasing. It may take a few passes to Once you have developed your CBV benchmark, you are in a position
have everyone agree on the formula, but once you have this to analyze the return on short & long-term marketing investments from a
benchmark you can start measuring performance over various financial perspective.
periods of time.
IMPLEMENTATION BEST PRACTICES IMPLEMENTING EFFECTIVE MARKETING DASHBOARDS BEST PRACTICES GUIDE 11
6 The successful link between your Activities and Brand Image 7 Select a Marketing Performance
depends on how clear, differentiated, and consistent your Measurement Solution
messages are.
There are many software tools in the market that can assist you
Gaining a positive Brand Equity relies on having competitive with collecting & organizing data, building reports, and estab-
advantages that are relevant to your market, and ensuring that lishing your Marketing Dashboard. Some companies will find it
you are correctly positioned in the mind of your customers & suitable to build an internal Marketing Dashboard solution with
prospects. help from the IT department; most will find it easier to implement
a standardized, proven solution in the form of an on-premise or
Understanding why customers buy from you, or from your
on-demand platform.
competitors, will help you adjust your activities to maximize
economic value. Click here to request more information on how to select the
right MPM solution for your business.
Your Brand Scorecard should track how effective your activities
are at developing brand imagery; how your imagery creates the If you don’t want to invest in a software solution, try using
right attitudes and beliefs; and how these equities are creating our Sales and Marketing Performance Dashboard to collect,
tangible returns in the form of Customer-Base Value (CBV). analyze, and communicate key performance indicators and
metrics for sales & marketing.
It is essential that you define, test, and demonstrate clear links
between each of these stages if you are to continue to obtain Key areas in our dashboard include:
funding for long-term Branding programs. Customers
Branding
Use customer satisfaction surveys, customer relationship
management tools, and internal/external branding exercises Advertising & Public Relations
to gather the metrics & knowledge you need to add a Brand Events & Tradeshows
Scorecard to your Marketing Dashboard. Direct Marketing
Website & Online Marketing
Sales
Marketing Collateral
Channel Sales
Pricing & Discounts
ANALYST BOTTOM LINE IMPLEMENTING EFFECTIVE MARKETING DASHBOARDS BEST PRACTICES GUIDE 13
Fortunately, there are many skilled experts who have helped If you decide that monitoring the performance of your depart-
companies transform under-performing marketing departments ment is not a top priority, at least you will be aware of how
into strategic, aligned, and accountable profit centers. many other market-leading companies are operating.
www.demandmetric.com
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