New Model for Marketing Measurement

A few days ago, I posted about the marketing automation recommendations from the Raab Associates report Lead Management: Get Started with a New Strategy for Buyer-Centric Marketing and Selling. Another nugget from that report was their 4-pronged model for marketing measurement, which, if fully implemented, would enable marketers to measure their results more comprehensively than most do today, including both their “old” and “new” media. Raab Associates suggest metrics in the following four areas:

  • Operational - these are metrics that track whether your campaign resulted in the desired behavior or not. Some examples are email open rates, online ad-to-landing page click through rates, and print ad-to-800 number call in rates. These metrics would typically be used by marketing to dissect individual program successes and failures, and to generate learnings that will improve later programs.
  • Funnel - these are metrics that track the progress of prospects through the sales process. They typically are tied to CRM stages, and track first how many prospects moved from one stage to the next, and second how quickly they did so. These metrics would be used both by sales and marketing to determine what the pipeline looks like at any given point in time and to create forecasts for future sales.
  • Engagement - these are metrics that track the investment that prospects are making in their relationship with the company. For example, opening an email is a very basic level of engagment, but downloading a white paper, sitting through an online demo or recorded webinar represents a much higher level of investment, and might indicate a greater propensity to buy. These metrics would typically be used for lead scoring, sales prioritization, and by individual sales reps to determine how to approach the prospect.
  • Financial - these metrics require matching marketing costs to business results to calculate, for instance, ROI, cost-per-lead, cost-per-sale. Many firms struggle to do this, but it’s imperative that they persevere and find a way. Otherwise, marketing and executive leadership will never be able to make smart decisions about whether and how to invest scarce resources in the marketing effort.
  • We are quickly approaching the end of the year, and I know many marketers will soon be thinking about their new year’s resolutions. For those marketers seeking improved performance in 2010, upgrading their measurement capabilities might be a great place to start.

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