With the proliferation of digital channels, marketing is undergoing a tremendous evolution. As a result, marketers at progressive organizations are redirecting their efforts and concentrating on a more holistic understanding of marketing performance.
To drive response and determine the appropriate marketing mix in this new paradigm, marketers must adopt a fresh approach to understand how to influence prospects and customers. By doing so, marketers can maximize marketing spend and generate stronger return on investment.
Five core strategies are needed to measure marketing effectiveness. Let's look at them, as well as at some key implementation tactics and ways to overcome the most-common challenges marketers face during execution.
1. Plan ahead and design a response-attribution infrastructure to support all channels
Many organizations treat marketing measurement as an afterthought of campaign planning. However, measurement and reporting are critical items on the campaign-planning agenda. Up-front planning ensures the appropriate tracking and testing conditions.
Different channels require different tracking mechanisms, but there are some common questions that should be addressed:
- What types of campaigns (acquisition, conversion cross-sell, etc.) will be tracked?
- How do cross-channel communications and campaigns roll up into a single program?
- What information is available to match a response, and should response metadata be enhanced?
- How will metadata be managed for direct-marketing and indirect-marketing campaigns?
When a marketing program uses multiple channels, the campaign hierarchy must account for each channel along with the appropriate rollups so that measurement aligns with business goals. Each level within the hierarchy should be well defined and understood by stakeholders prior to campaign implementation. Defining those structures after the launch of the campaign, even if possible to do, greatly increases the effort and frequently equates to inconclusive outcomes.
2. Create control groups for a more-accurate measurement of campaign lift