It’s Hard to Measure What’s Invisible
- AUTHOR Jay Jennison
- March 6, 2013
- No Comments
Recently, I noticed a trend of disparity between the metrics that marketing departments are held accountable for vs. the metrics that are truly meaningful to CFOs and CEOs for decision making purposes. Understandably so, marketing departments must focus on the metrics that they are held accountable for since this is how performance is measured. That being said, these metrics are not always the ones that show the most insightful information and Marketing is often limited by what they are able to report on due to incomplete or partial data sets. After all you can’t measure what you can’t see! The goal should ultimately be to prove Marketing’s contribution to sales, overall revenue, and most importantly establish credibility with the most important decision makers internally. Therefore the challenge is two-fold for marketing departments:
1) Identify the metrics that will help establish credibility with top leadership.
2) Adapt processes and measurements to produce the metrics.
I stumbled on a great article by Mike Volpe, CMO at Hubspot, that offers some insight into what metrics CEO/CFO’s are most interested in. I found Mike’s last two metrics of Marketing Originate Customer Percentage (percentage of new customer’s that originated from leads that marketing sourced) and Marketing Influenced Customer Percentage (% of customers that had any interaction with marketing activity) to be most intriguing. While these are key metrics that help Marketing differentiate itself from Sales and definitively prove its contributions, many companies struggle with this due to basic campaign disassociation from their opportunities in salesforce.com. You can’t measure what you can’t see, BUT once Marketing builds these basic foundations of data within Salesforce, they will be afforded a world of possibilities. Mike has given us a great framework for marketing metrics that we should focus on – find out how to achieve some of these things via Full Circle CRM.