Businesses use enterprise data and metrics to manage business performance and drive efficiencies across the organization. But when it comes to marketing, there has always been a bit of the “black box” effect. Marketing is the one major budget item that traditionally has been the hardest to understand and measure from a traditional business performance standpoint.
Quarterly and annual reviews provide some idea of how the money is being spent, and frequency, reach, target rating points, media impressions and clip counting are among the longstanding measures of marketing effectiveness. But these are becoming less and less informative as the world moves at Internet speed.
Now CMOs can create the same level of visibility into their marketing spend that other operational areas have done for years. The efficiency of marketing – especially spending on advertising – can be improved by analyzing customer “conversations” carried out across social networks and other channels. Advanced techniques and capabilities are available now to capture the pulse of the marketplace as never before.
Armed with this information, CMOs can work with their CFOs more closely to identify — really, for the first time — the minimal effective amount of spending needed to drive the greatest market awareness. This new form of “marketing intelligence” can dramatically reduce “spray and pray” spending and contribute more effectively to earnings per share improvement. In this way, both CMOs and CFOs will understand and track — with far greater accuracy — marketing’s accretive value to the enterprise and shareholders.