What to measure – and why?
Often when we meet with CMOs they tell us about their frustrations on how to follow up or measure the results of their marketing activities. Everyone agrees on the importance – but they are struggling with where to begin. Much of this frustration is based on the abundance of information from so many different sources. Where to start, everything seems to be important?
A good starting point is to reflect about what decisions you want to make. And then to analyze what data you need to make those decisions. For example, if you want to verify if a new marketing campaign is on track and to decide if you need to take any actions, you will need a first, basic indication, for example hits on a website. You also need a reference, to compare that number of hits with a previous campaign that was successful. Now it becomes obvious what data we need for this decision; historical data and current data on the number of hits on the website and an example of a successful campaign to compare with.
When you have this information you can make a fact based decision on whether to run the campaign as planned or if you need to make any changes. Now, lets assume that the first indications shows that the campaign is not working as planned, you will probably make some changes.
But to make these changes you need to understand the impact, on budgets, resources and other activities. If you need to reschedule other activities, what will the impact be on other strategic initiatives, on other campaigns. By following a decision process like this, you will get a good understanding of your actual needs for information and data. Even though this is a very simplified example, it highlights how you can identify the need for KPI:s based on your needs, rather than what is available.
Information and data by itself is of little value – until you need it to make a decision.