This week, VisionEdge Marketing released the findings of it’s 8th Annual Marketing Performance Measurement and Management (MPM) survey. The finding that resonated with me the most was the disconnect between Marketing Leadership and CEOs.
Only 17% of CEOs would give marketing an ’A’ where as 48% of Marketing Leadership thinks this is the grade they would receive.
At the heart of this, Marketing has been unable to clearly articulate the value it brings to the business. While Marketing is building programs and activities to drive toward business goals, communicating impact is hampered by an inability to measure performance effectively. So, as metrics that are tracked to see if functional and operational goals (response rate, lead volume, etc) at campaign and program levels are showing desired results, they aren’t being linked to executive metrics. When CEOs want to know about Marketing’s impact on the business, Marketing is talking about the details.
Marketing does recognize that there are issues as they express dissatisfaction with the ability to measure and track marketing performance. The marketing operations function has reached a maturity level within marketing organizations and dashboards if not implemented are part of the plan for 2009. However, analytic skills, process, tools, and data all need further focus to implement a best practices approach. Training would help to get Marketing to connect activities to the business faster and with less missteps, however, little training budget is available as part of MPM initiatives.
In a down economy, Marketing cannot afford to be perceived as marginally effective and CEOs may be shooting themselves in the foot by reducing marketing budgets and resources. Marketing needs to build tighter alignment between what it measures to business outcomes and show the value it brings, as well as how it is moving business forward.
*I partnered with Laura Patterson, the President of VisionsEdge Marketing, to help with data analysis and writing this report. While the full report is for sale, I am not receiving any portion of the profits. My role was only in the creation of the report.
