Featured Research: Take the First Step to Improve Your Marketing Performance

If you could make just one change to significantly improve your marketing organization’s ability to measure and manage performance, what would it be? According to the ITSMA/VEM Marketing Performance Management Survey, alignment is critical to marketing.

One quarter of the 405 marketers who participated in the ITSMA/VEM survey reported that the CEO would give the marketing organization an A for implementing initiatives that enable the company to achieve its objectives. What are these “A” marketers doing differently? It all starts with alignment.

Best-in-class marketers are better at aligning marketing’s objectives with the goals of the business and are able to both measure and communicate their contribution, thereby more clearly demonstrating marketing’s impact and value to the leadership team.

The aspect of alignment that marketers seem to find most challenging is measuring marketing’s contribution. 90% of the “A” marketers strongly agree or agree that they are good at measuring their contribution, compared to only 51% of the middle of the pack marketers and 38% of the laggards.

What is it about measuring marketing’s contribution that marketers find so difficult? There are two key components to the challenge:

• Measuring what matters. While it is important to measure marketing activity to track programs and campaigns and fine tune them, these are not the metrics business leaders and sales executives care about. Business leaders want metrics related to business outcomes such as market share, category ownership, and customer equity. They want to understand, for example, how marketing is impacting service contract attach rates and pipeline contribution in a way that affects these overarching outcomes.
• Connecting the dots. Marketing needs to illustrate direct line-of-sight from marketing activities and investment to the business outcomes. Marketing may be producing “a lot of stuff” and business outcomes may be improving, but how do we know that that marketing’s activities are what made the difference? Alignment and data chains are the answer. Start with the business objectives and desired outcomes. Based on the business outcomes, what are marketing’s objectives? What do the business leaders expect marketing to do? What does marketing need to do to achieve its objectives?

Marketers who are able to demonstrate their value and contribution to the business reap significant benefits. First and foremost, with the financial benefits of marketing investments clear, marketing is less likely to see budget cuts. Marketing is also more satisfied with its relationships with and reputations among the business leaders. Marketing is more confident with its ability to allocate resources to maximize effectiveness. And finally, marketing is better able to predict the outcomes of campaigns and programs.

For the full version of this article, read Take the First Step to Improve Your Marketing Performance.

For more information, read The Path to Better Marketing Results, attend the Mastering the Six Principles of Marketing Performance Management online briefing or view an easy-to-read infographic.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation.ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London, Mumbai, and Tokyo. Learn more at www.itsma.com.