Essay on Selecting the Right Metrics

715 Words Apr 6th, 2012 3 Pages
101
Selecting the Right Marketing Metrics

1. The Lowdown ----------------------------------------------------------------------------------Marketing metrics can serve as an important means of assessing and communicating marketing performance, yet many marketers struggle to determine which metrics are the “right” ones to deploy. One factor that makes metrics selection particularly challenging is that, unlike other business functions, there is no generally accepted set of metrics for marketing. Adding to the metrics selection challenge is the vast number of possible marketing metrics that have been identified over the past few years—it’s really no wonder that marketing metrics selection can appear so daunting. Despite these obstacles,
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2. Develop a specific list of key questions to guide metrics selection. Along with a clear definition of marketing objectives, key questions can be an effective focal point for metrics selection. It’s helpful to take a “divide and conquer” approach— categorize key questions and define supersets of possible metrics for each category. This ensures you will develop a list of metrics candidates that is well-balanced and comprehensive. 3. Assess potential value AND cost. As you prioritize the list of potential metrics, make sure to think about each metric along the dimensions of both potential value as well as acquisition cost. This enables you to quickly identify the obvious “winners” (high value, low cost) and “losers” (low value, high cost), allowing you to focus maximum attention on those metrics that require deeper evaluation.

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Engage key stakeholders in an iterative process to refine the metrics list and definitions. In order to be effective, metrics must be perceived as providing a valid, credible representation of performance. Obtaining meaningful participation from senior management, sales, operations, finance, and any other important stakeholders is an excellent way to build the organizational acceptance that is required for any successful marketing metrics initiative. Whenever possible, look for opportunities to engage and build alignment across the organization.

4. The

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