Marketing analytics

Marketing performance measurement (MPM), or marketing performance management, is the systematic management of marketing resources and processes to achieve measurable gain in return on investment and efficiency, while maintaining quality in customer experience.

Marketing performance management is a central facet of the marketing operations function within marketing departments.

Marketing performance management relies on a set of measurable performance standards, a pointed focus on outcomes, and clear lines of accountability (i.e. roles and consequences). Measurement management is based on six success factors: 1) alignment, 2) accountability, 3) analytics, 4) automation, 5) alliances, and 6) assessment.

Alignment of marketing activities and investments to business outcomes occurs when a marketing organization establishes a direct connection between marketing activities, investments and business outcomes.

Alignment begins with customer insights, to ensure that the marketing performance management approach will be rewarded by the marketplace. Alignment with enterprise objectives ensures that marketing efforts are in sync with what the company is striving to achieve. Enterprise goals can be cascaded to the business unit level and then to the department level to maintain consistency and drive synergy both horizontally and vertically. Marketing objectives that are developed this way can be cascaded to all of the marketing sub-functions for alignment.

Accountability is the monitoring and measurement of the achievement a person, group, or organization makes to deliver specific, defined results relating to the enterprise’s objectives. This requires selecting the right metrics, integrating performance targets, and producing actionable reports

Accountability includes making a commitment to a particular action, accepting responsibility for completing that action, and then disclosing the level of performance against your commitment. Accountability requires commitments, metrics, and consequences (positive and negative).

Measurable performance standards are called metrics, which are the cornerstone of accountability. They encompass Activity, Output, Operational, and Outcome categories:

To manage causes and effects, managers identify Leading Indicators and Lagging Indicators:

Marketing performance can be reported in a wide variety of formats (verbal, pictorial, graphic, tabular, text, dashboard), which are used for accountability and decision-making. Ideally, reports revisit past commitments or forecasts, to enable learning and refinements for future performance.

Dashboards are particularly important in marketing performance management, visually displaying multiple metrics on a single screen or page. This allows managers to monitor performance at a glance, and to be alerted when performance varies significantly above or below expected levels. Ideally, dashboards show the relationships between leading and lagging indicators. This can empower people at every managerial level.

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Wikipedia