Why CMOs need data, not feelings, to succeed
- AUTHOR Kristina Knight
- February 13, 2015
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Advertising campaigns have never had hard physical data to connect how a new customer came to buy a product. Instead most have relied on questions like ‘how did you learn about Product X’ to determine if campaigns were succeeding. One expert weighs in on the fallacy behind that approach.
Marketing departments are confusing spaces for many executives. The employees there have a kind of short hand, there is always an abundance of energy and there has been, in the past, no hard-and-fast rules about weighing their performance. That, says one expert, is changing.
“In many companies the marketing department is the last department where the CEO does not require performance reporting or clear accountability. Here’s why. In the time of Mad Men, the creative was the key driver of marketing programs. Marketers created physical advertisements in magazines and billboards and physical direct mail delivered by the US Postal Service. The results of these programs were very difficult to assess and most were measured by a question from the sales team – “how did you hear about us?” With the invention of the Internet, online advertising and emails have become the standard and for B2B marketing 68% of the customer journey is digital, according to analyst firm SiriusDecisions. And consequently you would think all companies would measure their marketing since Internet clicks should be easy to count,” said Bonnie Crater, CEO, Full Circle CRM.
Unfortunately the addition of digital data and customer profiles haven’t made the job to campaign analysis simpler because the automated systems used to measure and analyze campaign performance can get lost during the input phase. Crater also notes that the addition of marketing scientists to the marketing department mx has sometimes muddied the waters because the artists to develop campaigns and the scientists who analyze performance often have differing views of what is important about that campaign.
That doesn’t mean, however that marketing scientist should not be used. Crater believes these workers can be a huge help in brands’ ability to reach and engage customers.
“By avoiding measuring their department’s performance, CMOs risk wasted budgets on unsuccessful marketing campaigns. And inefficient marketing adds burden to a company’s expenses and limits growth in revenue. In the end, companies that don’t measure their marketing, will not be competitive with companies that gain key insights by monitoring their marketing data and optimizing their revenue engines,” said Crater. ” New tools such as Full Circle CRM are now available to address the issues faced by modern marketers. These kinds of tools optimize the data that is delivered from the marketing automation system and ensure that the outcome of every response is tracked and measure for a complete record of every campaign result. With the tools now available, it’s now the CMOs job to leverage the marketing data so they no longer rely on “gut feelings” and have solid data to back up their investment decisions.”