Many, many of our clients struggle with the issue of managing the effectiveness of their marketing efforts. While there is no one way to do this well, there are some key principles we have found that help organizations get a handle on this issue.
- Metrics should be directly linked to the strategy or the current major priorities of the business. Measure what’s important.
- There should be no more than 10-15 metrics on the dashboard. Fewer metrics are even better.
- Metrics should be updated on a regular basis to account for changes in company strategy and market dynamics. Continually update to ensure you’re measuring what’s important.
- Metrics should be clearly defined to ensure a common understanding of what exactly is being measured. Make sure everyone in the company agrees on the definition of each item being measured.
- Metrics should be externally focused wherever possible. Don’t fall into the trap of focusing on yourself instead of your market.
- Metrics should meet the following criteria:
- easily measured at a low cost (automatic data collection)
- collected as part of the normal process
- measurable against past performance and/or competitive performance
- resistant to manipulation or gaming
To get your Ph.D. on marketing measurement, visit the Marketing Science Institute http://www.msi.org/.