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Marketing metrics for an evolving world


Recent research by LinkedIn, ‘The Long and Short of ROI’ revealed that over 70% of digital marketers claim to be measuring ROI today, but 63% do not feel very confident in their measurements. While everyone is debating what to measure, the right question to ask is when to measure or who we are sharing these metrics with. 

As marketers, you know that while you have pivoted your well-strategized 2020 plans, the next order of business is to make growth happen under these extraordinary conditions. The question is, what is the most effective new way to do so while supporting, engaging and enabling your customers?

Adaptive strategies have propelled several brands towards a healthy growth trajectory, hinging mainly on striking the right balance between brand and demand marketing. However, a precursor to investing your increasingly precious marketing budget in both long-term brand building and short-term demand generation is ensuring executive buy-in. Many marketers can confirm that convincing the CFO to allocate funds for demand generation is relatively easy, but justifying marketing spends on brand building is not quite simple.

With our current access to a plethora of measurement tools, you are indeed measuring. But are your measurement metrics yielding actionable answers to accelerate business growth? While everyone is debating what to measure, the right question to ask is when to measure or who we are sharing these metrics with. A recent research by LinkedIn, ‘The Long and Short of ROI’ revealed that while over 70% of digital marketers claim to be measuring ROI today, over 63% do not feel very confident in their measurements. 

As marketers, you know that while you have pivoted your well-strategized 2020 plans, the next order of business is to make growth happen under these extraordinary conditions. The question is, what is the most effective new way to do so while supporting, engaging and enabling your customers?

Adaptive strategies have propelled several brands towards a healthy growth trajectory, hinging mainly on striking the right balance between brand and demand marketing. However, a precursor to investing your increasingly precious marketing budget in both long-term brand building and short-term demand generation is ensuring executive buy-in. Many marketers can confirm that convincing the CFO to allocate funds for demand generation is relatively easy, but justifying marketing spends on brand building is not quite simple.

With our current access to a plethora of measurement tools, you are indeed measuring. But are your measurement metrics yielding actionable answers to accelerate business growth? While everyone is debating what to measure, the right question to ask is when to measure or who we are sharing these metrics with. A recent research by LinkedIn, ‘The Long and Short of ROI’ revealed that while over 70% of digital marketers claim to be measuring ROI today, over 63% do not feel very confident in their measurements. 

Ashish Agrawal, Head of Digital Marketing at Zycus shares, “Identifying and reporting on both short-term and long-term KPIs not only conveys the complete story but also keeps the management informed about the overall impact and immediate effectiveness of marketing campaigns. For branding campaigns, an increase in brand searches is a good indicator of campaign effectiveness. as it showcases an increased interest in the brand. From a performance marketing standpoint, while we of course measure ‘cost per conversion’ at the end of the sales cycle, we also look at ‘cost per marketing qualified lead’ and ‘cost per newly acquired opportunity’. This helps track the optimal cost of acquiring a net new lead with a high probability to convert into business, which keeps the management convinced about the effectiveness of the demand generation & account-based marketing campaigns.”

Share your impact beyond marketing
Marketers currently share the results of their measurement within their own teams and with other marketers, probably because they talk the same language. However, it is time to make your measurement work for you by sharing it with a wider circle. The benefits of a strong brand to enhance financial metrics are not properly understood and your measurement statistics can help remedy that. So, who else needs to know? 64% of digital marketers say that they need to demonstrate ROI to justify marketing spends and get approval for future budget requirements. Data and the right metrics can be very persuasive — an invaluable asset for internal buy-in. Consequently, sharing successful campaign performance with the CFO is an imperative.

Prakash Ramnath, AVP – Global Marketing & Partnerships at Ramco Systems believes that “Beyond the traditional marketing KPIs, there are business metrics across brand & demand generation initiatives that can influence and impact every stage of the buyer journey. Identifying them and orchestrating the marketing organization around them yields holistic growth and market success. At Ramco, we continuously measure marketing team’s impact to driving business with these metrics and articulate strategic value with both internal & external stakeholders.” 

When it comes to measuring ROI, it is necessary for marketers to distinguish between ‘long data’ and ‘big data’. Long data is considered to be metrics that have been given the time to tell an authentic story — one that gives us a signal rather than create noise. Big data, on the other hand, places the focus on real-time reading and the short-term impact. If marketers adopt the ‘long data’ approach to ROI, they will be more inclined to share their ROI metrics within their organization to make better marketing investments.

A slower economy does not have to mean that businesses need to settle for lower ROI. But making growth happen in this volatile, evolving world needs a new set of dynamics that essentially hinge on new definitions of success and collaborative efforts between the marketing and finance functions. 

Ref : 

https://brandequity.economictimes.indiatimes.com/news/marketing/marketing-metrics-for-an-evolving-world/78420266 )