Despite advances in data, analytics, and technology, only 26% of marketers are capable of determining their impact on their business, according to the latest joint VisionEdge Marketing (VEM) and ITSMA Marketing Performance Management (MPM) Survey.
The 13th Annual MPM Survey, launched by VEM in 2001, captured input from 380 respondents. The research findings provide insights on Marketing's performance measurement and management challenges and best-practices.
Making the Grade
A key component of the annual study is the number of marketers earning an "A" grade from the C-suite for their ability to measure and report marketers' value to the business. What separates "A" marketers from the rest of the pack? In particular, "A" marketers...
- Make performance management a priority
- Have a well-defined and documented road map for continuous performance improvement
- Select metrics that measure business outcomes rather than effort and activity
- Build dashboards that effectively communicate business outcomes and marketing results
Value Creators vs. Program Producers
Marketers who earn an "A" have aligned their marketing objectives with business priorities, enabling them to select the right metrics. These best-in-class marketers are leaders who make the market and offering decisions that create value both for customers and shareholders.
Marketers in the middle of the pack—those who earn a "B"—tend to focus exclusively on enabling sales. The "B" marketers emphasize mapping the buyer journey and producing a steady stream of leads. Although that's important, there is more to marketing than feeding the sales pipeline.
The laggards, marketers who receive lower grades, are more likely to be perceived to be good at producing marketing campaigns rather than producing business results.
Companies with "A" marketers outperform their peers.
Specifically, 63% of companies with "A" marketers reported increased customer share of wallet, compared with 48% of marketers in the middle of the pack and 38% of laggard marketers.
As for new business growth, 54% of the companies with "A" marketers confirmed improvements in their win rates, compared with 39% and 25% of companies with "B" and laggard marketers, respectively.
For more from the VEM and ITSMA Marketing Performance Management Survey, see the following infographic: