Page 18 - AeM_July_2014
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BEST PRACTICES & STRATEGIES
Marketing analytics are
indispensable for better
management and performance
For management and business plans, parameters are Number of new customers;
widely used to permanently control the business suc-
cess based on its compliance. So, if there are any devi- Sales by target groups and product segments;
ations, it’s possible to implement countermeasures Satisfaction of the sales agents/customers with the
quickly. Do you apply this to your marketing plans as marketing campaign (B2C);
well? Customer Loyalty Index.
Data tracking - a part of our daily lives
The rendering of marketing metrics allows a trade-off
We know about the healthy values for blood pressure, between rival marketing campaigns based on the return
body weight, etc. in order to avoid major health risks, on marketing investments. Regardless of the scope of
but what about our business? Do you deploy monitoring the measurement process, a continuous monitoring
procedures here as well to test the effectiveness and process is necessary to profit most of it, which includes
efficiency? the information gathering, analysis and the reporting.
If a company does not determine key performance indi- Internal communication of the marketing perfor-
cators, it inevitably gets caught in a danger zone. Same mance as a success factor
as the way the performance of the company or manage-
ment plan should constantly be measured, there can’t It sounds so obvious, but in reality it is not so common
be successful marketing without an ongoing review of that the performance data (desired and actual values of
defined parameters. the indicators) are communicated to the entire market-
ing organization and the management. However, this
should be done in a concise, easy to understand and
Higher satisfaction with the marketing investment
visual manner, so that all parties can then quickly real-
ize what approach works and what improvements need
Besides helping the corporate performance, continuous- to be implemented. And if the marketing efforts were
ly keeping an eye on marketing metrics brings the
recognition of marketing an essential step forward and successful, the communication serves both the motiva-
assures more influence in the company’s decision mak- tion of the employees and confirms to the management
ing process. the competence of the marketing organization.
Unfortunately, most marketing departments still didn’t In addition, a not to be underestimated advantage of
realize that -as many surveys prove – many not even the marketing performance tracking is the higher quality
see the advantage of marketing measurements and of cooperation with the sales organization. Especially
their significant impact on the satisfaction of their CEOs the tactical marketing actions (price, promotion) require
regarding marketing investment. a close cooperation with the sales teams and their re-
sults and therefore assessment should be based on
"hard" facts. Thus, it can be stated clearly what suc-
It is the task of marketing to define a strategy and make
use of data analytics to achieve the sales targets: It may cesses or failures the sales of products are based on
and any unjustified accusations of the marketing organ-
be medium-term (e.g. higher awareness) or short-term
measures (e.g. promotion, exhibition participation). ization should therefore be a thing of the past.
However, in order to measure the success of the invest-
ment made, the key performance indicators (KPI) for the Systematic tracking of valuable information over a time
systematic and continuous identification (tracking) must period improves the effectiveness of tactical marketing
be specified: It can be about brand or company aware- activities. In fact, it creates the possibility to identify and
ness, purchase and willingness to pay, market share of measure the key drivers of the marketing and sales
the products or customer penetration. success, determines the strategic advantages of the
company, and predicts the financial impact of a market-
ing investment.
Particularly, a brand’s strategic decisions, that must be
defined in the medium- and long-term, require a finan-
cial accountability. But for all short-term measures, such Not taking up any measurements in marketing means
as promotion and direct marketing, the objectives of to work blindly, which is simply irresponsible, especially
course need to be defined in advance, as well. since the times when marketing budgets have been
determined solely by cost factors and not by sales suc-
cess and efficiency are long, long over. ◊
Examples would be:
Response rate of the targeted customers and non- By Daniela La Marca
customers/target groups;
18 Asian eMarketing July 2014 - Marketing Analytics
Marketing analytics are
indispensable for better
management and performance
For management and business plans, parameters are Number of new customers;
widely used to permanently control the business suc-
cess based on its compliance. So, if there are any devi- Sales by target groups and product segments;
ations, it’s possible to implement countermeasures Satisfaction of the sales agents/customers with the
quickly. Do you apply this to your marketing plans as marketing campaign (B2C);
well? Customer Loyalty Index.
Data tracking - a part of our daily lives
The rendering of marketing metrics allows a trade-off
We know about the healthy values for blood pressure, between rival marketing campaigns based on the return
body weight, etc. in order to avoid major health risks, on marketing investments. Regardless of the scope of
but what about our business? Do you deploy monitoring the measurement process, a continuous monitoring
procedures here as well to test the effectiveness and process is necessary to profit most of it, which includes
efficiency? the information gathering, analysis and the reporting.
If a company does not determine key performance indi- Internal communication of the marketing perfor-
cators, it inevitably gets caught in a danger zone. Same mance as a success factor
as the way the performance of the company or manage-
ment plan should constantly be measured, there can’t It sounds so obvious, but in reality it is not so common
be successful marketing without an ongoing review of that the performance data (desired and actual values of
defined parameters. the indicators) are communicated to the entire market-
ing organization and the management. However, this
should be done in a concise, easy to understand and
Higher satisfaction with the marketing investment
visual manner, so that all parties can then quickly real-
ize what approach works and what improvements need
Besides helping the corporate performance, continuous- to be implemented. And if the marketing efforts were
ly keeping an eye on marketing metrics brings the
recognition of marketing an essential step forward and successful, the communication serves both the motiva-
assures more influence in the company’s decision mak- tion of the employees and confirms to the management
ing process. the competence of the marketing organization.
Unfortunately, most marketing departments still didn’t In addition, a not to be underestimated advantage of
realize that -as many surveys prove – many not even the marketing performance tracking is the higher quality
see the advantage of marketing measurements and of cooperation with the sales organization. Especially
their significant impact on the satisfaction of their CEOs the tactical marketing actions (price, promotion) require
regarding marketing investment. a close cooperation with the sales teams and their re-
sults and therefore assessment should be based on
"hard" facts. Thus, it can be stated clearly what suc-
It is the task of marketing to define a strategy and make
use of data analytics to achieve the sales targets: It may cesses or failures the sales of products are based on
and any unjustified accusations of the marketing organ-
be medium-term (e.g. higher awareness) or short-term
measures (e.g. promotion, exhibition participation). ization should therefore be a thing of the past.
However, in order to measure the success of the invest-
ment made, the key performance indicators (KPI) for the Systematic tracking of valuable information over a time
systematic and continuous identification (tracking) must period improves the effectiveness of tactical marketing
be specified: It can be about brand or company aware- activities. In fact, it creates the possibility to identify and
ness, purchase and willingness to pay, market share of measure the key drivers of the marketing and sales
the products or customer penetration. success, determines the strategic advantages of the
company, and predicts the financial impact of a market-
ing investment.
Particularly, a brand’s strategic decisions, that must be
defined in the medium- and long-term, require a finan-
cial accountability. But for all short-term measures, such Not taking up any measurements in marketing means
as promotion and direct marketing, the objectives of to work blindly, which is simply irresponsible, especially
course need to be defined in advance, as well. since the times when marketing budgets have been
determined solely by cost factors and not by sales suc-
cess and efficiency are long, long over. ◊
Examples would be:
Response rate of the targeted customers and non- By Daniela La Marca
customers/target groups;
18 Asian eMarketing July 2014 - Marketing Analytics
