2012 brite nyama marketing roi study
TRANSCRIPT
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Marketing ROI in the Era of Big Data:
The 2012 BRITE/NYAMA Marketing in
Transition Study
Center on Global Brand Leadership
David Rogers Don SextonColumbia Business School Columbia Business School
New York American Marketing Association
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Introduction
The 2012 BRITE-NYAMA Marketing in Transition Studywas conducted in early 2012 by
Columbia Business Schools Center on Global Brand Leadership and the New York American
Marketing Association (NYAMA), in preparation or Columbias annual BRITE conerence
on brands, innovation, and technology. The study was made possible with support rom
Research Now and GreenBook.
The aim o the study was to gain a better understanding o changing practices among large
corporate marketers in the ollowing areas: data collection and usage, marketing measurement
and ROI, and the integration o digital and traditional marketing.
The survey ound both widespread adoption o new digital tools, and support or the use o
new data to drive marketing decisions and measure marketing ROI. However, signicant gaps
exist between desire and execution as companies strive to measure marketing ROI. The overall
picture o marketing by large corporations revealed signicant need or improvements in theuse o data, the measurement o digital marketing, and the assessment o marketing ROI.
Sample fndings:
91%ofseniorcorporatemarketersbelievethatsuccessfulbrandsusecustomerdata
to drive marketing decisions
Yet,39%saytheirowncompanysdataiscollectedtooinfrequentlyornotreal-timeenough
And51%saythatalackofsharingcustomerdatawithintheirownorganizationis a barrier to eectively measuring their marketing ROI
Largermsaremuchlesslikelytocollectnewformsofdigitaldatalikemobiledata
(19%),thantheyaretocollecttraditionalcustomersurveydatasuchasondemographics
(74%)andattitude(54%)
85%oflargecorporationsarenowusingsocialnetworkaccounts(e.g.brandaccountson
Facebook,Twitter,Google+,Foursquare)asamarketingtool
65%ofmarketerssaidthatcomparingtheeffectivenessofmarketingacrossdifferent
digital media is a major challenge or their business
37%ofrespondentsdidnotincludeanymentionofnancialoutcomeswhenaskedtodenewhatmarketingROImeantfortheirownorganization
57%arenotbasingtheirmarketingbudgetsonanyROIanalysis
22%areusingbrandawarenessastheirsolemeasuretoevaluatetheirmarketingspend
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Methodology & Survey Questions
253corporatemarketingdecisionmakers,director-levelandabove,weresurveyedonline
betweenJanuary27andFebruary8,2012.Theseprofessionalsareemployedatlargecompanies(90%haveaglobalannualrevenueofover$50million;45%areover$1billion).Respondents
werefromdiverseindustries:42%werefromcompaniesthatwereprimarilybusiness-to-business
(b2b),28%primarilybusiness-to-consumer(b2c),and30%acombinationofb2bandb2c.
Research Now conducted this survey on behal o Columbia Business School and the New York
American Marketing Association. Survey respondents represent a random sample o marketing
proessionals selected rom a panel o individuals in the US who have online access to the
Internet. Research Nows panel members are invited to participate in market research surveys
viae-mailinvitation,andarevalidatedthroughabyinvitationrecruitmentprocess.
Adownloadablecopyofthisresearchreport,andacompletelistofthesurveyquestionscanbe
ound online at: http://gsb.columbia.edu/globalbrands/research/brite-nyama-study
Table of Contents:
Methodology & Survey Questions .......................................................................page3
Findings:
The Failure o Big Data or Marketing So Far .................................................page 4
Marketers Adopt New Digital Tools, But Struggle to Measure Them .................page 7
ROI Marketers Know They All Need It, But Cant Even Agree What It Is ........page 10
Conclusions ...................................................................................................page15
About the Authors ...........................................................................................page16
Acknowledgements .........................................................................................page16
About the Research Partners ............................................................................page 17
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The Failure of Big Data for Marketing So Far
A vast and increasing volume o digital data is being generated today by customers, by businesses,
by devices and processes. The growth o this big data has ueled the rise o analytics rms, both
new startups and established technology companies. [See The Age o Big Data, New York Times,Feb11,2012]Thesermsaimtohelpbusinessharnessdatawithnewtoolstomineit,analyzeit,
andtrackitinreal-time.Thepromiseofbigdataistoallowforbetterdecision-makingateverylevel
ofeveryorganizationretailers,manufacturers,serviceproviders,evengovernmentsandNGOs.
In our study, we sought to measure how much progress has been made so ar in eorts to use
data or marketing. Has the excitement around big data presaged a shit in how marketers conduct
their business? We ound that so ar, big data in marketing is still a work in progress. In many
organizations,theeffectiveuseofdataformarketingdecisionslagsbehindthedesiretodoso.
Following are our key ndings.
0 10 20 30 40 50 60 70 80
Demographic data
Customer transaction data
Customer usage data
Social media content createdby customers and targets
Social network ties and influencebetween customers and targets
Customer mobilephone/device data
74%
64%
60%
35%
33%
19%
Table 1
Types of date collected
by marketers
Question: Which of the
following kinds of customer
data does your marketing
department collect or
have access to?
Digital Data
Traditional data
All marketers want to be data-drivenNearlyallcorporatemarketingleaderstoday(91%)believethatsuccessfulbrandsusecustomer
data to drive marketing decisions. This sentiment is extremely consistent, with no industry
measuredbelow83%.AmongrespondentswhoareattheCMOleveloftheirorganizations,
agreementroseto100%.
But many are not collecting the data they needTheuniversaldesiretobedata-drivenisnotyetmatchedbyaconsistentefforttocollectthedata
necessarytomakethesereal-timedecisions.29%reportthattheirmarketingdepartmentshavetoo
little or no customer/consumer data. This problem is particularly acute in some industries, such as
consumermanufacturing,where39%reporttheproblem.
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Thenewgenerationofbigdataanalyticsispredicatedonaccesstofrequentandrecentdata,notthe
quarterlyomnibussurveypanelsoftraditionalmarketresearch.Andyet,whendataiscollectedby
marketers,itisoftennotappropriatetoreal-timedecisionmaking.39%ofmarketerssaythattheir
dataiscollectedtooinfrequentlyornotreal-timeenough.
The promise o big data is also based on integrating new types o data generated by online activity,
such as mobile computing and social media. However, marketers today are still much less likely to
collectnewformsofdigitaldatalikecustomermobiledevicedata(19%collectit),andsocialmedia
data(35%),thantheyaretocollecttraditionalcustomersurveydataondemographics(74%),usage
(60%),andattitudes(54%).Thisgapislesspronouncedinlargerrms,however.Companieswithover$25billioninrevenuesare40%likelytocollectmobiledata,and42%likelytocollectdata
on social media conversations.
And i they do collect the data, they may not be sharing and utilizing it eectively.Collecting data is not the only hurdle that marketers must overcome in order to become more
data-driven.Twoinvemarketers(39%)admitthattheycannotturntheirdataintoactionable
insight.Andsheerquantityofdatadoesnotappeartobethekeyproblem:36%reportthatthey
have lots o customer data, but dont know what to do with it.
39%ofmarketerssaytheycantturntheirdata
into actionable insight
0 10 20 30 40 50 60
We have too little or nocustomer/consumer data
Our data is collected too infrequentlyor is not real-time enough
The lack of sharing data across our organization is anobstacle to measuring the ROI of our marketing
We are not able to link our data together at thelevel of individual customers
We arent using our data to effectively personalizeour marketing communications
29%
39%
51%
42%
45%
Table 2
Biggest challenges to use
of big data for marketing
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One o the biggest obstacles to turning data into actionable insight may be a lack o eective
data sharing across departments and divisions o the company. In the past, departments such
as sales, marketing, customer service, public relations, and supply chain, might each have had
their own datasets which they managed separately. But the promise o big data analytics is based
on the ability to link these datasets together, in order to better understand interactions between
rm,customer,andbusinesspartners.Marketersrecognizethis:87%agreethatcapturing
and sharing the right data is important to eectively measuring ROI in their own company.
For the majority o corporate marketers, though, this kind o data sharing is not yet happening.
Overhalf(51%)saythatalackofsharingcustomerdataacrosstheirownorganizationposesan
obstacle to their eectively measuring marketing ROI. Interestingly, this problem is more likely
tobereportedbymarketersbelowtheVPlevel(56%),vs.moreseniormarketingleaders(32%).
This dierence may refect that the diculty o sharing data across departments is a problem
or those in the trenches, but less visible to CMOs and heads o marketing.
Linkingshareddataatthecustomer-leveliscriticalforthegoalsofbigdata:effectivetargeting
andpersonalizationofmarketingeffortswheretheywillmattermost.Unfortunately,many
companiesarenotyetachievingthesegoals.42%ofmarketersreportthattheyarenotabletolinkdataatthelevelofanindividualcustomer.Nearlyhalf(45%)arenotusingdatato
personalizetheirmarketingcommunications.Andwhilemostcompaniesareabletotargettheir
high-valuecustomers(amorelongstandinggoal),28%stilldonotknowwhichhigh-value
customers to ocus their marketing on.
Recommendations:
In order to leverage the opportunities o big data, marketers need to improve their ability to:
Collectmeaningfulcustomerdatafromavarietyofsources,includingreal-timedata
LinkthatdatatometricsdevelopedformeasuringmarketingROI
Sharedataacrosstheorganization,linkingdatasetstogetheratthecustomerlevel
Utilizethisshareddatatoeffectivelytargetandpersonalizemarketingeffortstocustomers
51%ofallmarketerssaythatalackofsharing
customerdataacrosstheirorganizationisan
obstacle to eectively measuring their ROI
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Marketers Adopt New Digital Tools,But Struggle to Measure Them
The global adoption o mobile computing, social media, and digital content (rom YouTube toblogs to ebooks) has transormed consumer behaviors and opened up new opportunities or
marketing in every industry. Marketers today ace an array o new digital tools that can be
harnessed or marketing purposes, rom branded apps or smartphones, to online video channels,
to their own branded presence on social networks like Facebook. All o these digital tools produce
data,oftenasatantalizinglypublicdigitalfootprintbycustomers.Thatfactraisestheprospect
o much more accurate marketing measurement in an increasingly digital world. However, digital
data does not necessarily make it easier to link digital marketing to clear business objectives or
to measurements o marketing ROI.
In our study, we sought to measure how marketers are using the latest digital tools, and how
eectively are they being measured. How widely have the newest digital media been adoptedby corporate marketers? And are new datasets making it easier or rms to measure marketing
ROI,ornot?Wefoundthatdigitalmediaare,indeed,beingadoptedquiterapidlyformarketing
purposes, but developing metrics or them is posing challenges or marketers seeking to
integrate their traditional and digital marketing eorts. Following are our key ndings.
20 30 40 50 60 70 80 90 100
Sponsorship & events
Email marketing
Digital content
Social network accounts
Print advertising
Direct mail
TV & radio ads
Mobile ads (app/SMS)
90%
89%
87%
85%
85%
74%
59%
51%
Table 3
Adoption rate of new
digital tools vs establishedchannels for marketing
Digital tools
Traditional tools
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The newest digital marketing tools are catching up quickly in widespreadcorporate adoptionMarketers across industries are rapidly adopting many o the latest digital tools or marketing.
Thevastmajority(85%)arenowmarketingviatheirownbrandaccountsonsocialnetworks
likeFacebook,Twitter,Google+,andFoursquare.Thisisevidentacrossindustries,andeven
78%ofb2bcompaniesreportedusingsocialnetworkmarketing.Retailandtravel/leisureare
among the highest adopting industries. Among the lowest are industrial manuacturing and
the healthcare/pharmaceutical industry, which was slow to adopt social networks due to its
regulatoryenvironment.Still,noindustryreportedlessthan70%adoption.
87%ofrmsnowcreatemarketing-purposeddigitalcontentinvariousforms:whitepapers,
blogs, videos, podcasts, as well as branded phone apps and games. Adoption is higher, not
surprisingly, in the communications & publishing industries, but also in technology/electronics,
and nancial services. B2B rms are slightly more likely than b2c rms to use such content
(90%vs82%).Retailisamongthelowestusersofdigitalcontentformarketing,despitenotable
casesofsuccessamongsomebrick-and-mortarretailers.
Evenmobileadvertising(adswithinmobileapps,orviaSMSmessage)hasbeenadoptedby51%
o marketers. Financial services and travel/leisure were among the industries most likely to use it.
Althoughstillnewerandlessstandardizedthansomeotherdigitalmarketingtools,mobile-only
adshavebeenadoptedby76%ofthelargestrms,withrevenuesover$100billionannually.
But these tools are among the least likely to be measured or ROI(despite their prousion o data)Marketing measurement, however, has not kept up with the rapid pace o adoption or new digital
media. In particular, measurement o digital marketing with nancial metrics (such as market
share,revenue,prot,orlifetimecustomervalue)islagging.Only14%ofthosecompaniesusing
socialnetworkmarketingaretyingtheseeffortstonancialmetrics.Andonly17%ofcompanies
using mobile advertising are tying it to nancial metrics. By contrast, rms use nancial metrics
tomeasure41%oftheiremailmarketing(alonger-establisheddigitaltool),and47%oftradi-
tional direct mail marketing.
and marketers are struggling to compare their eorts across their various digital media.As the number o marketing tools expands, the challenge o measuring and comparing them
grows.70%ofCMOsreportthatacross-platformmodelforROIisamajorgoalfortheir
business.Butcompaniesadoptingdigitalmarketingndthisgoaldifculttoreach.60%of
companies report that comparing the eectiveness o marketing across their dierent digital
media is a major challenge.
Page 8
Getting traditional and digital marketing to work
bettertogetherremainsamajorgoalfor77%of
marketing departments
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Some o this is because digital marketing tools are oten measured with metrics that are
uniquetotheme.g.retweetsmeasurecustomerengagementonTwitter,whereaslikes
andsharesmeasureitonFacebook.Thesechannel-specicmetricscreateaparticular
measurement problem: comparing digital marketing eorts is oten like comparing apples
to oranges. As shown in Table 4, digital marketing channels are much more likely
(vs. traditional marketing channels) to be measured with metrics that cannot be easily
compared with other channels.
Thesechannel-specicmetricsposeanobstacletotheintegrationofdigitalandtraditional
marketinginasinglemeasurementmodel.Unsurprisingly,77%ofmarketersreportthat
getting their traditional and digital marketing to work better together is still a major goal or
theirbusiness.Theissueisbeingconsideredattheorganizationallevelaswell:50%of
companiesreportthattheyhaverecently,orsoonwill,re-organizetheirmarketingdepartments
to improve the integration o traditional and digital.
0 10 20 30 40 50
Social network accounts
Digital content
Email marketing
Mobile ads (app/SMS)
Direct mail
Print advertising
TV & radio ads
Sponsorship & events
48%
32%
30%
27%
23%
21%
20%
19%
Table 4
Use of channel-specific
engagement metrics for
different marketing channels
Digital channels
Traditional channels
Recommendations:In order to eectively harness the capabilities o new digital tools, marketers need to:
Setclearbusinessobjectivesforanydigitalmarketingeffort
Developavarietyofmetricsfornewdigitaltoolsfromaudiencemetrics,toengagement
metrics, to nancial metrics
Developmodelsthatlinkchannel-specicdigitalmetrics(likeretweetsorFacebook
interactions) to universal metrics, including your key perormance indicators (KPIs)
Continuouslyinnovatenewmeasurementmodels,asnewdigitaltoolsandmarketing
rapidly evolve
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ROI Marketers Know They All Need It,But Cant Even Agree What It Is
Inthisstudy,wetriedtolearnwhichorganizationsbelievethattheyaredoingwellwithrespectto measuring marketing ROI. What are they doing that allows them to succeed in measuring
marketingROI?WhataresomeofthebarriersorganizationsfaceinmeasuringmarketingROI?
How does knowing their marketing ROI aect how they view and use metrics?
WefoundthatsomeorganizationsaresatisedwiththeirabilitytomeasuremarketingROI.They
have achieved that success through leadership and persistence. In turn, their knowledge o their
marketing ROI allows them to base their marketing spending decisions on a nancial oundation.
Marketers think that they should be measuring their marketing ROI Marketersknowthattheyneedtojustifytheirdecisionsnancially.70%saythattheirmarketing
effortsareundergreaterscrutinythanever.39%gosofarastosaythattheyconsideritimportant to spend only on marketing activities where the nancial eects can be measured.
but many managers arent measuring marketing ROI either consistently or eectively.Only43%oforganizationsareestablishingtheirmarketingbudgetsbasedonmarketingROI
analysis.Bycontrast,68%basetheirmarketingbudgetsinpartonhistoricalspending,
and28%ongutinstincts.Whenitcomestospecicmarketingspendingdecisions,21%
areusingnancialmetricsforlittleornoneofthosespecicdecisions,and7%aremaking
all or most o those spending decisions with no metrics at all.
Instead o marketing ROI, managers continue to use many traditional metrics such as recall,
brand avorability, purchase intention, and willingness to recommend. O those using somekindofuniversalmetric,22%makeallormostoftheirmarketingdecisionswithbrand
awareness alone.
What organizations are satisfed with their measurement o marketing ROI?Overall,45%oftheorganizationssurveyedaresatisedwiththeirabilitytomeasuremarketing
ROI. Those most likely to be satised with their ability to measure marketing ROI are large
organizations(55.5%)-salesof$25billionormore-andserviceorganizations(48.8%).
Only33.1%ofconsumerproductorganizationsandonly26.1%ofindustrialproduct
organizationsaresatisedwithhowtheymeasuremarketingROI.
Satisfactiondependsonyourviewpoint:54%ofCMOsaresatisedwiththeirabilitytomeasuremarketingROI,butonly43%ofthosebelowthevicepresidentlevelaresatised
perhaps because they are closer to the problem o determining how to most eectively
measure marketing ROI.
57%arenotbasingtheirmarketingbudgets
on any ROI analysis
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To what extent is marketing ROI used or decision-making?Among the roughly hal o marketers that are very or somewhat satised with their ability to measure
marketingROI,57%usemarketingROIfortheirbudgetdecisionsand59%usenancialmetricsto
evaluatetheirmarketingspend.54%goasfarastosaytheyconsideritimportanttotrytospend
only when they have nancial metrics.
Understanding what marketing ROI isIntheorganizationssurveyed,however,managersdonotappeartohaveaconsistentunderstandingof
whatmarketingROIis.WhenaskedtodenemarketingROI,37%oftherespondentsdidnotmentionnancialeffectsand82%didnotmentionthatROIconsistsofbothnancialreturnandspending.
31%thinkthatjustmeasuringtheaudienceyoureachismarketingROI.Evenwhenprompted,19%
do not think that measuring the nancial impact o our marketing is marketing ROI.
InplaceofmarketingROI,manytraditionalmeasuresareused.37%oftherespondentsclaimedthat
they used brand awareness as a universal metric to make marketing decisions. More troubling, o
thoseusingbrandawareness,morethan60%saiditwastheironlymarketing ROI measure. To be
useul, brand awareness must be coupled with some measure o brand perception. Brand awareness
by itsel is a lagging indicator o brand strength. Using it as the sole or main measure to make
marketing decisions is truly managing by looking in the rear view mirror.
How can an organization improve its ability to measure marketing ROI?SpecicactionsappeartoimprovetheabilitytomeasuremarketingROI(Table5).Companiesare
much more likely to be satised with their marketing ROI measurement i they provide incentives to
both their employees and to their research vendors. Compensation is the most eective incentive or
employees while setting objectives is most eective or vendors most likely because i the vendors
achieve objectives, they might expect repeat business.
0 10 20 30 40 50 60 70
Performance objectives
Compensation plans
Recognition programs
Performance objectives
Compensation plans
46.3%
24.2%
63.1%
54.8%
67.8%
60%
15.5%
25.8%
13.6%
11.4%
Table 5
Incentives and satisfaction
with ability to measure
marketing ROI
Satisfied
Dissatisfied
Incent employees
Incent marketing vendors
37%ofrespondentsdidnotincludeanymention
o nancial outcomes when asked to dene what
marketingROImeantfortheirownorganization
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0 10 20 30 40 50 60 70 80 90
Culture
Leadership
Data
Tools
Skills
Process
72.4%
52.2%
88.9%
51.0%
87.3%
52.6%
81.8%
56.1%
77.1%
47.1%
81.5%
49.0%
Table 6
Importance of drivers and
barriers to measuring
marketing ROI
Drivers
Barriers
All the respondents considered leadership and data the most important drivers o success
inmeasuringmarketingROI(Table6).Whilelittledifferencewasfoundintheuseofdataby
those satised and not satised with their ability to measure marketing ROI, there appear to
bedifferencesinleadership.OrganizationssatisedwithmeasuringmarketingROItendto
usemoremetricsingeneralthanorganizationsthatarelesssatised(Table7)andtheir
leaderssetmeasurableobjectivesformarketingactions(Table8).
0 10 20 30 40 50 60 70 80
Set measurable objectivesfor all campaigns
Audience metrics
Channel engagementmetrics
Universal engagementmetrics
Financial metrics
No metrics
56.1%
21.1%
60.0%
20.0%
75.0%
18.8%
54.3%
14.3%
58.6%
21.2%
11.8%
58.8%
Table 7
Use of metrics and
satisfaction with ability to
measure marketing ROI
Satisfied
Dissatisfied
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0 10 20 30 40 50 60
Important tospend only when have
financial metrics
All right if somemarketing measured only
with engagement
Some aspects of marketing
cannot be measured
Marketing metrics acceptedby finance
If cut marketing by 10%,know sales impact
54.0%
21.0%
47.8%
26.3%
46.7%
26.2%
57.9%
18.7%
48.6%
26.8%
Table 8
Attitude toward metrics
and satisfaction with ability
to measure marketing ROI
Satisfied
Dissatisfied
Achieving success in measuring marketing ROIMeasuringmarketingROIformostorganizationsisaworkinprogress.Thefactormosthighly
associatedwithsatisfactionwithmeasuringmarketingROIistimespentworkingonit(Table9).
There appears to be a clear learning curve or understanding how to measure marketing ROI.
ContinuingtoworkonmeasuringmarketingROIdoesmovetheorganizationforward.Inaddition,
organizationssatisedwiththeirabilitytomeasuremarketingROItendtostaythere,whileother
organizationscanmovefromdissatisfactiontosatisfaction,evenovertwoyears.Among
organizationssurveyed,22%ofthosedissatisedbecamesatisedaftertwoyears,whileonly
3%ofthosewhoweresatisedbecamedissatisedoverthesameperiod.
0 10 20 30 40 50 60 70
8.3%
46.2%
51.2%
63.8%
Table 9
Years spent measuring
marketing ROI and satisfaction
with ability to measure
marketing ROI
Satisfied
0
Years
1-2 Years
3-5 Years
More than 5 Years
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OutcomesOrganizationsthatreportsatisfactionintheirabilitytomeasuremarketingROIutilizeitintheir
decisions, but they also understand that all decisions need not be made with marketing ROI
(Table8).Asonewouldexpect,theyaresavvierwithrespecttothenancialeffectsoftheir
marketing decisions and, or example, are more likely to be able estimate the nancial impact
o any cuts in their marketing budgets.
RecommendationsAbove all, get started. Start with the basics o determining marketing ROI so you will
createthelargestimpactonyourorganization:
Makesureyoureusingsomekindofmetricsonmostofyourmarketing.
Bereadytoinvestingettingsomekindofdatarelevanttoyourmeasures.
Makecoordinatingyourtraditionalanddigitalmediacampaignsagoal.
Setspecicmeasurableobjectivesforallyourcampaigns.
PutROIinstatedobjectivesforallyourvendors(sotheyknowyourexpectations
to retain them or to cut them loose).
LinkmarketingROItoemployeecompensation,perhapsabonus.
Starttodayasthepayoffandlearningcurvewilllikelytakeafewyears.
Then, move on to ROI best practices:
Makesureyourmarketingmetricsareacceptedbynance.
Makesureyourdatais:timely,actionable,linkedatthecustomer-level,
usedtopersonalizemarketingandtargetcustomers.
Shareyourdataacrossyourorganization.
22%areusingbrandawarenessastheirsole
measure to evaluate their marketing spend
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Conclusions
Chie Marketing Ocers ace a dynamic and challenging environment or marketing today. They
will nd no simple answers to eectively measuring marketing ROI amidst the growth o big data
and new digital marketing tools. Innovative marketing and eective measurement will both be
worksinprogressthatrequireleadership,agility,andconstantlearning.
To lead eectively, CMOs should ocus on ve key leadership imperatives:
1. Set objectives frst. It is critical that all marketing eorts be ocused on delivering on
key business objectives, or KPIs (key perormance indicators). Even with new technologies
likesocialnetworksandmobileadvertising,experimentationneedstoquicklygiveway
to ocused strategies linked to clear objectives that are set in advance.
2. Design metrics to ensure marketing is linked to those objectives. Once objectives are set,marketers need to develop appropriate metrics or any marketing eort that will be able
to measure whether and how it is succeeding. Last years metrics should not determine
what this years objectives can be. (I know how to measure it, so that must be my goal.)
Rather, marketers must be prepared to develop new metrics and new measurement models
as they develop innovative marketing programs, in order to clearly tie these to their
intended objectives.
3. Gather the right data or those metrics. Once metrics are set, they should be used to identiy
whattypesofdataarerequired.Marketersmustavoidthetemptationtoanalyzeorpurchase
data simply because it is available, brand new, or being promoted by a vendor. By starting
rom dened marketing objectives, and rom the metrics chosen to measure them, marketerscan clearly identiy which data they need, and which they do not.
4. Communicate to the entire organization what your objectives are, and how they are being
measured. With a process or eective marketing measurement in place, it is essential that
all relevant sta be aligned. That includes knowing what the rms key marketing objectives
are, knowing how they are being measured, and responding to incoming data in order to
continuously improve marketing eorts, and innovate new ones.
5. Evaluate and reward employees in part on how well objectives are achieved. Once employees
understandtheorganizationsmarketingobjectivesandthemetricsbeingusedtomeasure
them, evaluation and compensation should be linked in part to their measurable success.
By demonstrating that measurable results matter to everyone in the marketing department,CMOs give all employees the initiative to show leadership o their own at every stage o
the marketing process.
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About the Authors
David Rogers is the Executive Director o BRITE at Columbia Business School
and the aculty director o the schools Executive Education program on
Digital Marketing Strategy. He is the ounder and host o the Center on
Global Brand Leaderships acclaimed BRITE conerence on brands, innovation
andtechnology.Rogersisawidelyrecognizedleaderondigitalstrategyand
brands,knownforhisuniqueinsightsintocustomernetworks.Hislatestbook
is The Network Is Your Customer: 5 Strategies to Thrive in a Digital Age,
published by Yale University Press.
Rogers speaks at conerences worldwide on the ways that digital technologies
are transorming business strategy. He received the award or Brand
Leadershipatthe2009WorldBrandCongressandhasappearedonCNN,
CNBC, Marketplace, Reuters, MSN Money, and Channel NewsAsia. David
has advised and consulted on marketing and digital strategies or leadingcompanies in the consumer packaged goods, technology, pharmaceutical,
food&beverage,telecom,hospitality,non-prot,andmediaindustries.
Contact:[email protected]
Don Sexton is Proessor o Marketing and Proessor o Decisions, Risk, and
Operations, and Faculty Director, Center or International Business Education
and Research, Columbia University. His articles have appeared in numerous
journals such as the Harvard Business Review, Journal o Marketing, Journal
ofMarketingResearch,andManagementScience.Hisbest-sellingbooks,
Marketing 101 and Branding 101, have been translated into several languagesincluding Chinese, Turkish, Russian, Vietnamese, Polish, Romanian, and
Indonesian. Dons most recent book, Value Above Cost: Driving Superior
Financial Performance with CVA, the Most Important Metric Youve Never
Used(Wharton), explains how marketing drives nancial perormance and is
also available in Chinese.
HeservesontheboardoftheNY-AMA,isPresident-ElectoftheAssociation
forInternationalBusinessEducationandResearch(aconsortiumof33
universities), and is an advisor to the Marketing Accountability Standards
Board. He received the 2011 Marketing Trends Award or his work on
marketing and branding strategy. Don is the ounder o The Arrow Group,
Ltd., a company that has provided consulting and training services to such
companiesasGE,IBM,Unilever,Pepsi,Sony,DuPont,Pzer,Volkswagen,
Citibank,Boeing,andVerizon.Contact: [email protected]
Acknowledgements
Special thanks are due to Randall Ringer, President o the New York American Marketing Association, or proposing
this project, championing it, assembling the necessary partners, and guiding our eorts with expert advice and insight.
The study would not have been possible without the critical support o Leonard Murphy (GreenBook), Morgan Buckley
(Research Now), and Matthew Quint (Columbia Business School Center on Global Brand Leadership). Special thanks
to Kartik Pashupati and Melanie Courtright (Research Now) or the survey programming and elding, and to Sylvia Chu
and Michael Dudley (Verse Group) or the visual design o this report.
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About the Research Partners
The Center on Global Brand LeadershipwasfoundedatColumbiaBusinessSchoolin1999andhas grown into the leading global orum on brands. The mission o the center is to turn the
research and intellectual capital o academias oremost thinkers on branding into practical
toolsandinsightsforreal-worldapplication.TheCenterhasworkedwithawiderangeofsponsor
companies to develop a variety o thought leadership including: conerences, case studies, videos
and webinars, and sponsored research. More details at http://globalbrands.org. The Centers
fagship BRITE conerence on brands, innovation, and technology presented was ounded in
2008andispresentedeachspringatColumbiaUniversity.BRITE12includedJohnHayes
(CMO, American Express), Marc Speichert (CMO, LOreal USA), and Bob Gareld (host o On
the Media, editor or Ad Age). More details at: http://www.BRITEconerence.com
The New York American Marketing Association (NYAMA) helps marketing proessionals navigate
to success in todays dynamic business environment. We serve the marketing community by
giving members opportunities to push the boundaries o marketing, expand their skills and
exchange ideas with other experienced proessionals. The BRITE/NYAMA study is one example o
how we are contributing to the advancement o marketing. More details at: http://nyama.org
Research Now is the leading global online sampling and online data collection company. With
over6millionpanelistsin38countriesworldwide,ResearchNowenablescompaniestolisten
to and interact with real consumers and business decision makers in order to make key business
decisions. Research Now oers a ull suite o data collection services, including social media
sampling,andoperatestheValuedOpinionsPanelande-Rewards Opinion Panels. The
companyhasamultilingualstafflocatedin24ofcesaroundtheglobeandhasbeenrecognized
or our consecutive years as the industry leader in client satisaction. Visit www.researchnow.com
to learn more.
GreenBook brings stimulating, practical, and timely resources to marketers and market
researchersonbothsidesofthetable.Throughitstargetedmulti-mediaplatform,GreenBook
oers eective marketing and lead generation opportunities to businesses that communicate
with buyers and users o market research. More details at: http://www.greenbook.org
Center on Global Brand Leadership