What basket of measures, scorecard or dashboards help you to measure marketing investments effectively?
Our invited panel shared their different approaches to this Holy Grail question and their experiences on how chosen metrics drive different results and behaviours
The most important outcome of all…
- The key marketing effectiveness question never to lose sight of – how does this turn into money (or quantifiable social benefit)?
- Our responsibility is to set the metrics that matter to measure marketing investments and their impact on profit or social benefit.
- It’s not about outputs, it’s about outcomes leading to the end outcome of profitable growth.
- The focus should be on clear business metrics that relate to profitable growth, meaningful business outcomes, not ‘vanity metrics’.
“Unless the conversation starts and ends with profitable brand growth, not just buying share, nothing actually moves.”
John Kearon Brainjuicer timecode 17.48
- Requires you to create a model, showing how the various elements of the marketing communications ecosystem will work together to deliver this for your organisation.
- Demands a focus within this on behavioural measures – what consumers actually do, not what they say they’ll do.
The Power of the Brand
- The brand is (almost always) the engine of profitable growth – the power of the brand is a key KPI and we need to monitor the power of the brand to create the desire/ predisposition to buy one brand over another (this is the pivot to brand value which in turn is the pivot to growth).
- Brand distinctiveness (or difference), emotional and/or functional, is a key metric within this – brand distinctiveness is what justifies the price premium. In measuring and optimising activity around this, emotional measures are vital, ‘if you feel nothing, you do nothing’.
- ‘The brand is the customer experience’ – so profitable growth demands a strategic, holistic, long-term approach.
- But never forget that the brand is there to serve the business – a means not the end.
“There is a difference between differentiation and distinctiveness that it is important to know.”
Nigel Gilbert TSB timecode 31.50
Long-term vs Short-term
- Nigel Gilbert of TSB talked about avoiding the ‘Doom Loop’ characteristic of businesses dominated by a tactical, short-term focus. Rather the job of marketers (and business leaders more broadly) is to define and create a ‘Boom Loop’, based on a long-term strategic purpose (and monitor/ optimize as you go).
- The TSB Boom Loop includes increased customer satisfaction and new customer consideration, brand distinctiveness (‘Britain’s Local Bank’), reduced acquisition costs and churn, attracting high value loyal customers, a culture of customer service through the business, increased customer advocacy (NPS).
- Every business needs to define it’s own Boom Loop. In doing this it’s necessary to balance the short and long-term, but you ‘win in the long-term’ – in the short-term it’s about monitoring progress on a regular basis towards the longer-term goals set plus optimisation, experimentation and learning.
Creating a common currency of measurement
- A challenge, raised by Peter Chadwick of Vodafone, is to get measurement across all media onto an equal footing, focused on ROI/ contribution to growth – without a ‘common currency’ it’s impossible to properly judge and measure marketing investments.
“When we started looking at the ROI problem, we were staring at a situation whereby we had inconsistent methods of evaluating different types of media”
Peter Chadwick Vodaphone timecode 20.51
(Chair) Nigel Gilbert Chief Marketing and Communications Officer TSB
Peter Chadwick Brand Strategy Manager Vodafone
Keith Coni Head of Insight & Evaluation Government Communication Service, Cabinet Office
Nigel Hollis Chief Global Analyst Kantar Millward Brown
John Kearon Chief Juicer BrainJuicer
“Just what the industry needs, great collaboration between clients and agencies on the topics that drive business growth.”
Bridget Angear, Joint Chief Strategy Officer at AMV BBDO
“It’s great to see the IPA in the UK bring the whole industry and particularly the trade bodies together to focus on effectiveness. This new Marketing Effectiveness initiative will enable people across the industry to work together to build on best practice.”
David Wheldon, Chief Marketing Officer, RBS
“Effectiveness is a team sport, so it was great to see the industry in the widest sense, come together. In an increasingly diverse and fragmented world, only by using all parts of the brain will we solve effectiveness challenges and design our campaigns to deliver short and long term value. That’s why what happens next is important – if the IPA can help facilitate progress on this with a long-term initiative around Marketing Effectiveness, we’ll definitely crack it.”
Bart Michels, Global CEO Kantar Added Value and Country Leader Kantar UK
“The time spent at #EffWeek was extraordinarily effective. It was great to hear the diverse views from all areas of the industry. All tied together with the common themes of accountability and effectiveness.”
Andrew Canter, Global CEO, BCMA
“It has been a privilege to be part of the inaugural Effectiveness Week. The agenda is one which we at O2 UK feel passionately about. To see and hear perspectives across the industry demonstrates how the breadth of marketing effectiveness is increasingly being valued within businesses. Data, insight, social, customer experience, test and learn, ROI, these are all fundamentals and were covered expansively at the event”.
Sandra Fazackerley, Marketing & Consumer, Telefónica UK Limited
“The full week of effectiveness events brought into clear focus the need for marketers to use data and insight to achieve the key business objectives of growth and profits. Marketers today are in a better position to quantify their knowledge of customers and measure the ability of investments in marketing to increase brand and shareholder value.”
Chris Combemale, Group CEO, DMA