Marketing Performance

Manage Marketing as a Business Process and Deliver Results

Marketing Performance Management

The success of our marketing performance just like any performance management system depends on the metrics that drive the measurements and decision making as we manage our businesses on a daily basis. Our perception and actions depend on how we decide about the ways moving forward. What is good performance? What is unacceptable performance? What is great performance? The way we answer these questions about our business performance management will have a great impact on our business success.

It's all about Setting the Right Marketing Performance Metrics

By defining and using the most appropriate marketing performance metrics for your business, you will be able to track the results and success of all marketing initiatives in your organization. Have we set the right budget? What is the ROI on our latest campaign? What are the most profitable sales channels? What will happen if we allocate more resources into Social Media Marketing? Marketing Performance Measurements are very important because they help your business move in the right direction.

Reevaluate your Marketing Performance Measurements

From time to time every manager has to step back ad reevaluate the way she manages her business. Am I able to identify what is working and what is not given the current marketing strategy and initiatives? Can I continue measuring the marketing performance in the same way or do I need to make any changes to our marketing performance system and metrics?

Marketing Metrics based on your Marketing Activities

Usually businesses use marketing performance metrics that are activity based.  They try to track "marketing performance" by counting and reporting the trends and results based on the actions taken by the target market. This group of marketing metrics include activities that are easy to measure and available such as internet marketing performance metrics. We can easily track the number of clicks, page loads, visitors, members and purchases. However a more effective marketing performance management can be achieved by measuring and monitoring the business outcomes instead of actions.

Marketing as a Business Process

Marketing Managers should focus on the marketing efficiency and efficacy as a whole.  The most powerful marketing metrics are those which measure the outcomes the marketing has on the customer acquisition rate, the performance share, the rate of adoption of new products and services, the average value of each order, the improvement in the frequency of customer purchasing, the net advocacy and loyalty, the volume and share of business, the customer engagement, the margin, the market, and the rate of growth in comparison with the competition. These are long-term marketing performance and strategic business performance metrics which will help you manage marketing as a business process. For example, the activity based marketing metrics such as number of clicks per day are short term and limited and can be misleading.