Brands that adopt measurement programs and test and learn can achieve up to 75% more in return-on-investment (ROI) gains than those that don’t, according to the latest report from Analytic Partners’ ROI Genome. This means that for brands that want to get ahead and futureproof for tomorrow, the winners will be those that are proactive rather than reactive in measuring their overall business beyond campaign performance.
In the context of privacy challenges and the demise of third-party cookies, marketers not only have to rethink their approach to targeting but also to measurement. Many brands are looking to future-proof their measurement approaches. But what does the way forward look like? And how can business leaders act now to prepare for tomorrow?
While it might seem obvious, measurement should be tied to marketing and business objectives and a clear set of key performance indicators (KPIs). Too often the measurement of marketing and campaign effectiveness is determined by ease of access performance metrics and not strategic KPIs. It’s time for marketers to take a step back, look holistically and challenge old habits.
By creating a foundation of a clear strategy that defines what needs to be achieved, brands can then develop a holistic measurement framework to drive real business impact. By providing a 360-degree view of marketing activities and beyond and leveraging consistent metrics such as incremental sales or impact on brand metrics, businesses can focus on moving the needle where it matters most.
Implementing a robust, adaptive, analytics-based framework to uncover actionable intelligence, such as Analytic Partners’ Commercial Mix Analytics, allows brands to be better equipped to adapt to disruptions, evolve in their connections with audiences, and thrive by measuring and optimizing performance.
“Marketing has always been complicated, but in recent years it has evolved with increasing complexity and brought us into an unprecedented ecosystem,” says Mike Menkes, senior vice-president of Analytic Partners. “With more data and metrics available than ever before, the understanding of marketing and its impact has also become increasingly misunderstood.”
Here are four actions all marketers can take now:
Identify your KPIs: build a clear view into both short- and long-term success metrics. By focusing only on immediate short-term conversion and downplaying lasting impacts, brands are setting themselves up for losses.
Make it omnichannel: comprehensively measure online and offline business drivers across channels and ecosystems. Don’t use siloed approaches or performance metrics for budgeting decisions. Measurement must include a full view of direct and indirect impacts and synergies.
Balance brands and performance: while short-term gains and lower-funnel strategies can seem like quick wins, an outsized focus on performance marketing can come at the expense of brand and new customer acquisition. Balance it with brand messaging to foster sustainable sales and brand growth.
Experiment and adapt: as disruption becomes the norm, marketers need to test and learn to adapt quickly and unlock value. This is true for testing new and evolving channels, new approaches, or testing to stay on top of changing consumer behaviors, competitive pressures or other disruptions.