101
Selecting the Right
Marketing Metrics
1. The Lowdown
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Marketing metrics can serve as an important means of assessing and communicating marketing
performance, yet many marketers struggle to determine which metrics are the “right” ones to
deploy. One factor that makes metrics selection particularly challenging is that, unlike other
business functions, there is no generally accepted set of metrics for marketing. Adding to the
metrics selection challenge is the vast number of possible marketing metrics that have been
identified over the past few years—it’s really no wonder that marketing metrics selection can
appear so daunting. Despite these obstacles, many marketing organizations have successfully
developed and implemented effective marketing metrics programs, by following the focused,
incremental, and iterative process outlined below.
2. Why do I need to know about it?
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More than ever senior management is holding marketing accountable for setting and achieving
specific financial objectives. A key component to marketing success has become the ability to
credibly demonstrate the impact of marketing initiatives on key financial outcomes, such as
incremental sales, customers, and margin. Metrics that are perceived as objective, organizationally
relevant, and numerically credible can be a powerful “story telling” tool for marketers, particularly
in their communications with financially oriented senior management.
3. Where to start?
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1. Begin by defining the role of marketing in your organization.
What is marketing supposed to deliver for your company? More customers? Better brand
equity? More qualified leads? Customer satisfaction? Once you have confirmed the specific
objective