Marketing metrics – Part deux

This is an update on my previous entry on marketing metrics.  Kinda extra thoughts.

First, you really need to look at your process and figure out those areas you CAN measure.  I’ve worked for a couple of firms where we wanted to measure some metric but couldn’t because the systems just can’t deliver the data.  Don’t try to follow a lead to revenue if it’s a broken chain like I mentioned in my previous posting.  So figure out what you can measure.

Second, figure out what you SHOULD measure.  If you don’t have the math/finance background, find someone who does.  Engage an analyst who knows your database.  Try to find those actions that lead to revenue.

Third, and by far the most important step, engage the CFO or someone on that team to help you develop the metric.  Finance knows (or should know) what drives the company revenue and profit.  The closer you can tie your activities to revenue and profit the better off you (hopefully!) will be.  In addition, and perhaps most significantly, the CFO can help you sell your metrics to executive management.  They need to buy into the measures or you’re still a cost sink.

In the past, I’ve had, how should I put it….rambunctious relations with executive management at several of my employers because I couldn’t understand why they would be so stupid as to not understand what marketing does and how it significantly benefits the company.  But, as I “matured,” I realized that upper management has a lot of pressures on them.  And, if they are any good (which isn’t always the case), they rely on metrics to help drive their decisions.  You really need to get to know and embrace numbers.  If you are scared, take a finance or statistics class.  But you need to move in this direction.

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