Measuring impact is a universal struggle for marketers. More than 60% of Fortune 1000 CMOs claim they cannot quantify the impact of marketing in either the short or long term. There is a whole spectrum of suffering that ranges from having no idea where to begin, to marketers up to their knees in reports but feeling like they aren’t doing enough. This all speaks to a bigger problem…
A few times each year, reports come out with similar statistics: the majority of marketers cannot quantify their impact. And every year, marketers commiserate in the knowledge that they are not alone in struggling to measure impact. But learning that others struggle with the same issue isn’t galvanizing marketers into action. Instead, they are lulled into a false sense of security that they are part of a universal marketing problem. This should not be the industry’s response. And the problem isn’t going to fix itself.
It’s an open secret that all marketers have struggled with measurements at some point in their career. Everyone understands that metrics are necessary to demonstrate marketing’s value and impact to the company. But the problem is focusing on the right metrics. The Gartner 2018-19 Spend Survey shows that while CEOs are interested in revenue, profitability, and market share, CMOs are focused on tracking voice, awareness, and brand metrics. Those are important metrics within marketing to be sure, but are they the metrics CMOs should be using to communicate with the rest of the company?
Marketing needs measurements that help them tell a succinct accountability story to the rest of the C-suite. But they also need measurements that will help them to make better decisions. To address both needs, Marketing needs to employ a hierarchy of measurements. A foundation of core spend data and tactical results measurements like attribution are great for showing marketing organizations where to optimize activities. This builds to advanced measurements like pipeline sourced by Marketing which in turn leads to measuring business impact and ROI. These are the ultimate metrics that are relevant across the company and Marketing should use to communicate their impact.
Another open secret? Not all of us are waiting for the problem of measuring impact to sort itself out. Allocadia has taken steps to address the problem head-on and help marketers get on track creating and measuring and optimizing impact).
Struggling to measure impact doesn’t have to be a universal problem. What are you going to do with your team to change that?