Description:

The economy is slowing, IT services organizations are being hit hard, and marketing has gone under the microscope. Traditionally, management has viewed marketing as an expense rather than an investment. Further, senior managers often question marketing's direct impact on revenue generation. Consequently, marketing can easily be seen as "discretionary" spending when the economy turns down.

Services marketers, of course, understand that marketing to acquire and keep customers is a critical investment in corporate success. The perception gap on expense vs. investment puts marketers on the defensive, however. Marketers need more effective ways to communicate the value of marketing, justify resource allocation, and demonstrate the tangible fruits of their labor.

This ITSMA Update examines the challenges of measuring marketing results and the primary methods used by IT services marketers today. The Update then outlines a balanced scorecard approach to marketing metrics, and highlights best-practice examples from five companies. Finally, the Update explains ITSMA's own Services Marketing Performance Index (SMPI), a multi-dimensional tool used to benchmark marketing performance relative to other IT services firms, and to track year-to-year improvement.