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Laggards, Stivers & Leaders

October 14, 2009

It’s been a while since submitted a post however an article I read inspired me to share.

I hope this creates some good dialog within your organiztion.

“For years, marketers have chased the Holy Grail of marketing: To deliver the right message to the right person at the right time through the right medium. Yet, most structure their company around their products or business lines. As a result, they lack a holistic view of their customers and communicate with them from multiple silos. To be successful, marketers must become more customer-centric — which requires the organizational clout and strategic remit to establish customer experience and customer value as key performance indicators. Adopting a customer-centric approach allows marketers to develop strategies that maximize total customer value, ensure consistent management of the customer experience, and provide responsible governance of customer communications.”

How customer centric is your marketing?

“We struggle to measure customer engagement. We don’t have a system to manage it,in part because nobody has singular responsibility for managing it. Unfortunately, it’s just not a priority.” (A senior marketer at a high-tech company)

Do you track the “impact” of your marketing activity?

When this question was asked to the head of marketing of a CPG company they honestly state……….

“We do try to track the impact of our marketing activity, but to a large extent we are winging it — we make decisions based on past history, personal preferences, and what our agencies say is working for other clients. Frankly, it’s a lot of trial, error, and guesswork.”

Does measurement drive you budget allocation?

Studies show measurement doesn’t drive budget allocation. Despite the claim that they rely on a systematic approach to marketing measurement, almost two-thirds of marketers (64%) Integrated, Customer-Centric Marketing allocate budget across marketing disciplines based on historical spending, and 56% do so simply based on planned activity (i.e., they use direct mail for acquisition purposes. Why? Because that’s what they do). Media mix modeling — which allows marketers to understand the incremental impact of specific media and activity — is employed by less than a third of respondents.

Marketers are missing the point more than half of the time. When calculating attribution — such as deciding which marketing activity to “credit” for a transaction — more than half of the respondents attribute activity to the most recent touchpoint. If a prospect or customer saw a TV ad, received a direct mail piece, received three emails, and then searched for an item and bought it from their company, the entire “credit” for driving the sale would be
allocated to the firm’s search engine marketing efforts or activity.

Only a third of marketers calculate fractional attribution through models across their activity. Far from enjoying a systematic and consistent approach to marketing measurement, marketers’ entire approach is broken. They emphasize financial criteria, which they fail to measure in a robust and accurate manner, and then they use those findings to plan their budgets for their next campaigns.

Could there be a better way?

If your interested in reading this full article you can click here and download it from Merkle’s site.

Source: A commissioned study conducted by Forrester Consulting on behalf of Merkle, Inc., August 2009

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