During my last post, I talked about the third new A of marketing, i.e., Appropriate. This week, I want to talk about a topic that’s near and dear to my heart: Analytic.
To recap, I believe the new four A’s of marketing is an approach that every marketer needs to adopt in order to overcome big-bang disruptions associated with new models, new technologies, and the new mindset of customers (see my previous posts on the New 4 A’s of Marketing).
In an article from HBR, entitled “The Ultimate Marketing Machine”, after ten thousand CMOs interviews, researchers discovered the following: 52% of high performing marketers leverage analytics for marketing effectiveness.
I can only assume they are also part of the 13% – that is, the 13% of marketers that are prepared to face big-bang disruption (see previous post). Perhaps unsurprising, Analytics is the quintessential glue that ties together the other A’s of new marketing.
Analytics is essential for Agility – how else can you make smart – indeed BETTER decisions?
It’s also critical for Accountability. In fact, analytics provide the very foundation for marketing attribution and measurement.
Appropriate (i.e., personalization and relevance) at scale is only possible with predictive analytics (propensity could be understood to be the likelihood for this message to be appropriate).
And yet, and YET Analytics seems hard. Scary. Expensive. Data-driven marketing is moving out of the back office into the boardroom. It is driving the best marketing – period. And it need not be expensive – start with specific business opportunities (or use analytics to identify where there is opportunity). Then plan, execute, measure and repeat.
At a recent Argyle conference, I had the opportunity to moderate a panel discussion on how data is aiding marketers navigate the omni-channel landscape. Many of the marketers in the room were talking about how much time they spend rehashing data. What was concerning is that a large contingent expressed lack of clarity regarding what is important (analysis paralysis). The successful CMOs and other marketing executives were pointing to a need to clearly define measurement objectives and subsequently, marketing metrics and arrive at a decision quickly. Being Analytic is not just discovering, but it is deciding and doing too.
To sum it up: Be Analytic. Be a Hero.
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During my last post, I covered the first new A of marketing, Agility. Today’s post will cover the notion of Accountability.
Traditionally, marketing has been viewed as a cost center, rather than a revenue generating machine. And when called to account for their budgets and performance, the traditional marketer may have shrugged their shoulders.
Marketers of the world, gone are the days of shrugging your shoulders, repeating the famous John Wanamaker quote and laughing it off like you don’t have a care in the world. For those of you unfamiliar with the quote: “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”
No disrespect to John Wanamaker. He did, after all, hire the first full-time copywriter in history! However, an increase in marketing budgets requires an increase in responsibility. My dear old-school marketer: your days are numbered. It’s time to make the CFO your new BFF. According to Gartner, leaders in marketing are securing larger budgets. Much of this is for digital marketing, but much of this spend will be allocated on marketing technologies. Consequently, the need prove value is ever increasing.
The marketing hero has the opportunity to demonstrate Accountability by measuring and reporting on her progress. By showing conversions. By proving revenue uplift. By justifying Return on Marketing Investment (ROMI).
This is not an easy feat. Marketers have been discussing performance measurement, marketing metrics and attribution for years.
New research from webmarketing123 and compiled by eMarketer blew me away: 38% of marketers do not leverage an attribution model. What?
Even more interesting: a majority of marketers that DO have an attribution model in place are only considering last touch, first touch, or first and last touch. The customer journey is not something that your average marketer has wrapped her arms (or head?) around today.
There may be a business or two out there that operate via a single channel. But I’m hard pressed to come up with one right now. So, marketers, if your customer is on a journey, multi-channel, omni-channel and digital, your measurement plan needs to be too. And you need to prove it works.
Cross-channel attribution is the best way to show your CFO that you are Accountable. That you know exactly the cost of customer acquisition (CAC). That you need X budget to achieve Y revenues. And then, impress him even more by exceeding those goals.
Be Accountable. Be a Hero.
Next time, I’ll cover the third A of new marketing: Appropriate.