A study by Prophet found that “as few as 19 percent of companies can consistently and accurately determine what they are getting – if anything – from untold millions in marketing spending.”
It’s this kind of mystery that can affect the relationship between the CMO and the rest of the C-Suite.While most organizations realize marketing plays a critical role in the organization, the intangible nature of marketing contributes to the marketing ROI mystery.When organizations are looking for “silver bullets” to improve results and reduce costs, the marketing organization that avoids the discipline associated with accountability sits in the cross-hairs. And these CMO’s might find themselves at the mercy of the C-Suite who typically take arbitrary actions such as cutting budgets or changing personnel to effect change.
Creating an accountability initiative is the first step to building a bridge between marketing and the rest of the organization. These four steps will help you solve the mystery of where’s the ROI:
* apply more science to your organization,
* embrace performance management,
* set performance targets for your objectives and programs, and
* measure marketing’s contribution, effectiveness, and efficiency.
For more on this topic check out:
The Science Side of Marketing and the Emergence of Marketing Operations
Managing Marketing Performance: The Role of Data, Analytics and Metrics
Setting Performance Targets: The Ins and Outs in 10 Steps
Which Metrics Measure Marketing’s Impact on Business and Influence Strategic Direction?
We leave you with this thought from John Rohn as you continue on your MPM journey.
“Discipline is the bridge between goals and accomplishment.”