It seems like every other email newsletter I receive has
articles regarding metrics about social, mobile, engagement, likes, content
views, GRP’s and the like. And I’m not
disputing the point of each of these are important in their own universe…. And
if you can connect them, all the better.
However, let’s go back to the fundamental reason for
marketing.
“All marketing investments, across ALL
areas/functions/businesses, etc. is to do one thing…SELL”
If the above weren’t true, why would the board of directors,
management and shareholders agree to marketing budgets? Marketing is a fundamental investment with
both short and long-term financial goals.
Short-term – sell product immediately, drive leads for sales, increase
eCommerce traffic…. Long-term – build the brand, create advocates for the
brand, drive high value leads, increase price, etc.
Which brings me to my concern…it seems to me we’ve taken our
eye off the ball on the metrics which truly matter and support the reason for
marketing investments. So what top-level investment metrics should we regain focus
on? My key ones include:
1. Incremental Gross/Net Revenue per total
marketing dollars spent
2. Customer Acquisition Cost
3. Both #1 and #2 but revenue per marketing
employee
4. Customer Cross Sell Ratio
5.
Recency/Frequency/Monetary Value customer model
– check out Don Libey’s extensive research on this model
6.
Customer Satisfaction Levels – get down to
specific detail items you’re working on and track them consistently
7.
Customer Lifetime Value
8.
Marketing Investment Payback Time
9.
Customer Attrition Rate
10.
Customer Segmentation Model and Marketing
Investment
Certainly,
I have additional ones I could list, but keeping things simple--the above 10 help
focus your investments, strategy and executions on the things which matter. In addition, when the boss calls you in the
office, you speak management language vs. the marketing babble.
Scott
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