2012 Brite Nyama Marketing Roi Study

7/31/2019 2012 Brite Nyama Marketing Roi Study

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Marketing ROI in the Era of Big Data:

The 2012 BRITE/NYAMA Marketing in

Transition Study

Center on Global Brand Leadership

David Rogers Don SextonColumbia Business School Columbia Business School

New York American Marketing Association


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Introduction

The 2012 BRITE-NYAMA Marketing in Transition Studywas conducted in early 2012 by

Columbia Business Schools Center on Global Brand Leadership and the New York American

Marketing Association (NYAMA), in preparation or Columbias annual BRITE conerence

on brands, innovation, and technology. The study was made possible with support rom

Research Now and GreenBook.

The aim o the study was to gain a better understanding o changing practices among large

corporate marketers in the ollowing areas: data collection and usage, marketing measurement

and ROI, and the integration o digital and traditional marketing.

The survey ound both widespread adoption o new digital tools, and support or the use o

new data to drive marketing decisions and measure marketing ROI. However, signicant gaps

exist between desire and execution as companies strive to measure marketing ROI. The overall

picture o marketing by large corporations revealed signicant need or improvements in theuse o data, the measurement o digital marketing, and the assessment o marketing ROI.

Sample fndings:

91%ofseniorcorporatemarketersbelievethatsuccessfulbrandsusecustomerdata

to drive marketing decisions

Yet,39%saytheirowncompanysdataiscollectedtooinfrequentlyornotreal-timeenough

And51%saythatalackofsharingcustomerdatawithintheirownorganizationis a barrier to eectively measuring their marketing ROI

Largermsaremuchlesslikelytocollectnewformsofdigitaldatalikemobiledata

(19%),thantheyaretocollecttraditionalcustomersurveydatasuchasondemographics

(74%)andattitude(54%)

85%oflargecorporationsarenowusingsocialnetworkaccounts(e.g.brandaccountson

Facebook,Twitter,Google+,Foursquare)asamarketingtool

65%ofmarketerssaidthatcomparingtheeffectivenessofmarketingacrossdifferent

digital media is a major challenge or their business

37%ofrespondentsdidnotincludeanymentionofnancialoutcomeswhenaskedtodenewhatmarketingROImeantfortheirownorganization

57%arenotbasingtheirmarketingbudgetsonanyROIanalysis

22%areusingbrandawarenessastheirsolemeasuretoevaluatetheirmarketingspend


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Methodology & Survey Questions

253corporatemarketingdecisionmakers,director-levelandabove,weresurveyedonline

betweenJanuary27andFebruary8,2012.Theseprofessionalsareemployedatlargecompanies(90%haveaglobalannualrevenueofover$50million;45%areover$1billion).Respondents

werefromdiverseindustries:42%werefromcompaniesthatwereprimarilybusiness-to-business

(b2b),28%primarilybusiness-to-consumer(b2c),and30%acombinationofb2bandb2c.

Research Now conducted this survey on behal o Columbia Business School and the New York

American Marketing Association. Survey respondents represent a random sample o marketing

proessionals selected rom a panel o individuals in the US who have online access to the

Internet. Research Nows panel members are invited to participate in market research surveys

viae-mailinvitation,andarevalidatedthroughabyinvitationrecruitmentprocess.

Adownloadablecopyofthisresearchreport,andacompletelistofthesurveyquestionscanbe

ound online at: http://gsb.columbia.edu/globalbrands/research/brite-nyama-study

Table of Contents:

Methodology & Survey Questions .......................................................................page3

Findings:

The Failure o Big Data or Marketing So Far .................................................page 4

Marketers Adopt New Digital Tools, But Struggle to Measure Them .................page 7

ROI Marketers Know They All Need It, But Cant Even Agree What It Is ........page 10

Conclusions ...................................................................................................page15

About the Authors ...........................................................................................page16

Acknowledgements .........................................................................................page16

About the Research Partners ............................................................................page 17

Page 3


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The Failure of Big Data for Marketing So Far

A vast and increasing volume o digital data is being generated today by customers, by businesses,

by devices and processes. The growth o this big data has ueled the rise o analytics rms, both

new startups and established technology companies. [See The Age o Big Data, New York Times,Feb11,2012]Thesermsaimtohelpbusinessharnessdatawithnewtoolstomineit,analyzeit,

andtrackitinreal-time.Thepromiseofbigdataistoallowforbetterdecision-makingateverylevel

ofeveryorganizationretailers,manufacturers,serviceproviders,evengovernmentsandNGOs.

In our study, we sought to measure how much progress has been made so ar in eorts to use

data or marketing. Has the excitement around big data presaged a shit in how marketers conduct

their business? We ound that so ar, big data in marketing is still a work in progress. In many

organizations,theeffectiveuseofdataformarketingdecisionslagsbehindthedesiretodoso.

Following are our key ndings.

0 10 20 30 40 50 60 70 80

Demographic data

Customer transaction data

Customer usage data

Social media content createdby customers and targets

Social network ties and influencebetween customers and targets

Customer mobilephone/device data

74%

64%

60%

35%

33%

19%

Table 1

Types of date collected

by marketers

Question: Which of the

following kinds of customer

data does your marketing

department collect or

have access to?

Digital Data

Traditional data

All marketers want to be data-drivenNearlyallcorporatemarketingleaderstoday(91%)believethatsuccessfulbrandsusecustomer

data to drive marketing decisions. This sentiment is extremely consistent, with no industry

measuredbelow83%.AmongrespondentswhoareattheCMOleveloftheirorganizations,

agreementroseto100%.

But many are not collecting the data they needTheuniversaldesiretobedata-drivenisnotyetmatchedbyaconsistentefforttocollectthedata

necessarytomakethesereal-timedecisions.29%reportthattheirmarketingdepartmentshavetoo

little or no customer/consumer data. This problem is particularly acute in some industries, such as

consumermanufacturing,where39%reporttheproblem.


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Thenewgenerationofbigdataanalyticsispredicatedonaccesstofrequentandrecentdata,notthe

quarterlyomnibussurveypanelsoftraditionalmarketresearch.Andyet,whendataiscollectedby

marketers,itisoftennotappropriatetoreal-timedecisionmaking.39%ofmarketerssaythattheir

dataiscollectedtooinfrequentlyornotreal-timeenough.

The promise o big data is also based on integrating new types o data generated by online activity,

such as mobile computing and social media. However, marketers today are still much less likely to

collectnewformsofdigitaldatalikecustomermobiledevicedata(19%collectit),andsocialmedia

data(35%),thantheyaretocollecttraditionalcustomersurveydataondemographics(74%),usage

(60%),andattitudes(54%).Thisgapislesspronouncedinlargerrms,however.Companieswithover$25billioninrevenuesare40%likelytocollectmobiledata,and42%likelytocollectdata

on social media conversations.

And i they do collect the data, they may not be sharing and utilizing it eectively.Collecting data is not the only hurdle that marketers must overcome in order to become more

data-driven.Twoinvemarketers(39%)admitthattheycannotturntheirdataintoactionable

insight.Andsheerquantityofdatadoesnotappeartobethekeyproblem:36%reportthatthey

have lots o customer data, but dont know what to do with it.

39%ofmarketerssaytheycantturntheirdata

into actionable insight

0 10 20 30 40 50 60

We have too little or nocustomer/consumer data

Our data is collected too infrequentlyor is not real-time enough

The lack of sharing data across our organization is anobstacle to measuring the ROI of our marketing

We are not able to link our data together at thelevel of individual customers

We arent using our data to effectively personalizeour marketing communications

29%

39%

51%

42%

45%

Table 2

Biggest challenges to use

of big data for marketing


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One o the biggest obstacles to turning data into actionable insight may be a lack o eective

data sharing across departments and divisions o the company. In the past, departments such

as sales, marketing, customer service, public relations, and supply chain, might each have had

their own datasets which they managed separately. But the promise o big data analytics is based

on the ability to link these datasets together, in order to better understand interactions between

rm,customer,andbusinesspartners.Marketersrecognizethis:87%agreethatcapturing

and sharing the right data is important to eectively measuring ROI in their own company.

For the majority o corporate marketers, though, this kind o data sharing is not yet happening.

Overhalf(51%)saythatalackofsharingcustomerdataacrosstheirownorganizationposesan

obstacle to their eectively measuring marketing ROI. Interestingly, this problem is more likely

tobereportedbymarketersbelowtheVPlevel(56%),vs.moreseniormarketingleaders(32%).

This dierence may refect that the diculty o sharing data across departments is a problem

or those in the trenches, but less visible to CMOs and heads o marketing.

Linkingshareddataatthecustomer-leveliscriticalforthegoalsofbigdata:effectivetargeting

andpersonalizationofmarketingeffortswheretheywillmattermost.Unfortunately,many

companiesarenotyetachievingthesegoals.42%ofmarketersreportthattheyarenotabletolinkdataatthelevelofanindividualcustomer.Nearlyhalf(45%)arenotusingdatato

personalizetheirmarketingcommunications.Andwhilemostcompaniesareabletotargettheir

high-valuecustomers(amorelongstandinggoal),28%stilldonotknowwhichhigh-value

customers to ocus their marketing on.

Recommendations:

In order to leverage the opportunities o big data, marketers need to improve their ability to:

Collectmeaningfulcustomerdatafromavarietyofsources,includingreal-timedata

LinkthatdatatometricsdevelopedformeasuringmarketingROI

Sharedataacrosstheorganization,linkingdatasetstogetheratthecustomerlevel

Utilizethisshareddatatoeffectivelytargetandpersonalizemarketingeffortstocustomers

51%ofallmarketerssaythatalackofsharing

customerdataacrosstheirorganizationisan

obstacle to eectively measuring their ROI


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Marketers Adopt New Digital Tools,But Struggle to Measure Them

The global adoption o mobile computing, social media, and digital content (rom YouTube toblogs to ebooks) has transormed consumer behaviors and opened up new opportunities or

marketing in every industry. Marketers today ace an array o new digital tools that can be

harnessed or marketing purposes, rom branded apps or smartphones, to online video channels,

to their own branded presence on social networks like Facebook. All o these digital tools produce

data,oftenasatantalizinglypublicdigitalfootprintbycustomers.Thatfactraisestheprospect

o much more accurate marketing measurement in an increasingly digital world. However, digital

data does not necessarily make it easier to link digital marketing to clear business objectives or

to measurements o marketing ROI.

In our study, we sought to measure how marketers are using the latest digital tools, and how

eectively are they being measured. How widely have the newest digital media been adoptedby corporate marketers? And are new datasets making it easier or rms to measure marketing

ROI,ornot?Wefoundthatdigitalmediaare,indeed,beingadoptedquiterapidlyformarketing

purposes, but developing metrics or them is posing challenges or marketers seeking to

integrate their traditional and digital marketing eorts. Following are our key ndings.

20 30 40 50 60 70 80 90 100

Sponsorship & events

Email marketing

Digital content

Social network accounts

Print advertising

Direct mail

TV & radio ads

Mobile ads (app/SMS)

90%

89%

87%

85%

85%

74%

59%

51%

Table 3

Adoption rate of new

digital tools vs establishedchannels for marketing

Digital tools

Traditional tools


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The newest digital marketing tools are catching up quickly in widespreadcorporate adoptionMarketers across industries are rapidly adopting many o the latest digital tools or marketing.

Thevastmajority(85%)arenowmarketingviatheirownbrandaccountsonsocialnetworks

likeFacebook,Twitter,Google+,andFoursquare.Thisisevidentacrossindustries,andeven

78%ofb2bcompaniesreportedusingsocialnetworkmarketing.Retailandtravel/leisureare

among the highest adopting industries. Among the lowest are industrial manuacturing and

the healthcare/pharmaceutical industry, which was slow to adopt social networks due to its

regulatoryenvironment.Still,noindustryreportedlessthan70%adoption.

87%ofrmsnowcreatemarketing-purposeddigitalcontentinvariousforms:whitepapers,

blogs, videos, podcasts, as well as branded phone apps and games. Adoption is higher, not

surprisingly, in the communications & publishing industries, but also in technology/electronics,

and nancial services. B2B rms are slightly more likely than b2c rms to use such content

(90%vs82%).Retailisamongthelowestusersofdigitalcontentformarketing,despitenotable

casesofsuccessamongsomebrick-and-mortarretailers.

Evenmobileadvertising(adswithinmobileapps,orviaSMSmessage)hasbeenadoptedby51%

o marketers. Financial services and travel/leisure were among the industries most likely to use it.

Althoughstillnewerandlessstandardizedthansomeotherdigitalmarketingtools,mobile-only

adshavebeenadoptedby76%ofthelargestrms,withrevenuesover$100billionannually.

But these tools are among the least likely to be measured or ROI(despite their prousion o data)Marketing measurement, however, has not kept up with the rapid pace o adoption or new digital

media. In particular, measurement o digital marketing with nancial metrics (such as market

share,revenue,prot,orlifetimecustomervalue)islagging.Only14%ofthosecompaniesusing

socialnetworkmarketingaretyingtheseeffortstonancialmetrics.Andonly17%ofcompanies

using mobile advertising are tying it to nancial metrics. By contrast, rms use nancial metrics

tomeasure41%oftheiremailmarketing(alonger-establisheddigitaltool),and47%oftradi-

tional direct mail marketing.

and marketers are struggling to compare their eorts across their various digital media.As the number o marketing tools expands, the challenge o measuring and comparing them

grows.70%ofCMOsreportthatacross-platformmodelforROIisamajorgoalfortheir

business.Butcompaniesadoptingdigitalmarketingndthisgoaldifculttoreach.60%of

companies report that comparing the eectiveness o marketing across their dierent digital

media is a major challenge.

Page 8

Getting traditional and digital marketing to work

bettertogetherremainsamajorgoalfor77%of

marketing departments


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Some o this is because digital marketing tools are oten measured with metrics that are

uniquetotheme.g.retweetsmeasurecustomerengagementonTwitter,whereaslikes

andsharesmeasureitonFacebook.Thesechannel-specicmetricscreateaparticular

measurement problem: comparing digital marketing eorts is oten like comparing apples

to oranges. As shown in Table 4, digital marketing channels are much more likely

(vs. traditional marketing channels) to be measured with metrics that cannot be easily

compared with other channels.

Thesechannel-specicmetricsposeanobstacletotheintegrationofdigitalandtraditional

marketinginasinglemeasurementmodel.Unsurprisingly,77%ofmarketersreportthat

getting their traditional and digital marketing to work better together is still a major goal or

theirbusiness.Theissueisbeingconsideredattheorganizationallevelaswell:50%of

companiesreportthattheyhaverecently,orsoonwill,re-organizetheirmarketingdepartments

to improve the integration o traditional and digital.

0 10 20 30 40 50

Social network accounts

Digital content

Email marketing

Mobile ads (app/SMS)

Direct mail

Print advertising

TV & radio ads

Sponsorship & events

48%

32%

30%

27%

23%

21%

20%

19%

Table 4

Use of channel-specific

engagement metrics for

different marketing channels

Digital channels

Traditional channels

Recommendations:In order to eectively harness the capabilities o new digital tools, marketers need to:

Setclearbusinessobjectivesforanydigitalmarketingeffort

Developavarietyofmetricsfornewdigitaltoolsfromaudiencemetrics,toengagement

metrics, to nancial metrics

Developmodelsthatlinkchannel-specicdigitalmetrics(likeretweetsorFacebook

interactions) to universal metrics, including your key perormance indicators (KPIs)

Continuouslyinnovatenewmeasurementmodels,asnewdigitaltoolsandmarketing

rapidly evolve


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ROI Marketers Know They All Need It,But Cant Even Agree What It Is

Inthisstudy,wetriedtolearnwhichorganizationsbelievethattheyaredoingwellwithrespectto measuring marketing ROI. What are they doing that allows them to succeed in measuring

marketingROI?WhataresomeofthebarriersorganizationsfaceinmeasuringmarketingROI?

How does knowing their marketing ROI aect how they view and use metrics?

WefoundthatsomeorganizationsaresatisedwiththeirabilitytomeasuremarketingROI.They

have achieved that success through leadership and persistence. In turn, their knowledge o their

marketing ROI allows them to base their marketing spending decisions on a nancial oundation.

Marketers think that they should be measuring their marketing ROI Marketersknowthattheyneedtojustifytheirdecisionsnancially.70%saythattheirmarketing

effortsareundergreaterscrutinythanever.39%gosofarastosaythattheyconsideritimportant to spend only on marketing activities where the nancial eects can be measured.

but many managers arent measuring marketing ROI either consistently or eectively.Only43%oforganizationsareestablishingtheirmarketingbudgetsbasedonmarketingROI

analysis.Bycontrast,68%basetheirmarketingbudgetsinpartonhistoricalspending,

and28%ongutinstincts.Whenitcomestospecicmarketingspendingdecisions,21%

areusingnancialmetricsforlittleornoneofthosespecicdecisions,and7%aremaking

all or most o those spending decisions with no metrics at all.

Instead o marketing ROI, managers continue to use many traditional metrics such as recall,

brand avorability, purchase intention, and willingness to recommend. O those using somekindofuniversalmetric,22%makeallormostoftheirmarketingdecisionswithbrand

awareness alone.

What organizations are satisfed with their measurement o marketing ROI?Overall,45%oftheorganizationssurveyedaresatisedwiththeirabilitytomeasuremarketing

ROI. Those most likely to be satised with their ability to measure marketing ROI are large

organizations(55.5%)-salesof$25billionormore-andserviceorganizations(48.8%).

Only33.1%ofconsumerproductorganizationsandonly26.1%ofindustrialproduct

organizationsaresatisedwithhowtheymeasuremarketingROI.

Satisfactiondependsonyourviewpoint:54%ofCMOsaresatisedwiththeirabilitytomeasuremarketingROI,butonly43%ofthosebelowthevicepresidentlevelaresatised

perhaps because they are closer to the problem o determining how to most eectively

measure marketing ROI.

57%arenotbasingtheirmarketingbudgets

on any ROI analysis


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To what extent is marketing ROI used or decision-making?Among the roughly hal o marketers that are very or somewhat satised with their ability to measure

marketingROI,57%usemarketingROIfortheirbudgetdecisionsand59%usenancialmetricsto

evaluatetheirmarketingspend.54%goasfarastosaytheyconsideritimportanttotrytospend

only when they have nancial metrics.

Understanding what marketing ROI isIntheorganizationssurveyed,however,managersdonotappeartohaveaconsistentunderstandingof

whatmarketingROIis.WhenaskedtodenemarketingROI,37%oftherespondentsdidnotmentionnancialeffectsand82%didnotmentionthatROIconsistsofbothnancialreturnandspending.

31%thinkthatjustmeasuringtheaudienceyoureachismarketingROI.Evenwhenprompted,19%

do not think that measuring the nancial impact o our marketing is marketing ROI.

InplaceofmarketingROI,manytraditionalmeasuresareused.37%oftherespondentsclaimedthat

they used brand awareness as a universal metric to make marketing decisions. More troubling, o

thoseusingbrandawareness,morethan60%saiditwastheironlymarketing ROI measure. To be

useul, brand awareness must be coupled with some measure o brand perception. Brand awareness

by itsel is a lagging indicator o brand strength. Using it as the sole or main measure to make

marketing decisions is truly managing by looking in the rear view mirror.

How can an organization improve its ability to measure marketing ROI?SpecicactionsappeartoimprovetheabilitytomeasuremarketingROI(Table5).Companiesare

much more likely to be satised with their marketing ROI measurement i they provide incentives to

both their employees and to their research vendors. Compensation is the most eective incentive or

employees while setting objectives is most eective or vendors most likely because i the vendors

achieve objectives, they might expect repeat business.

0 10 20 30 40 50 60 70

Performance objectives

Compensation plans

Recognition programs

Performance objectives

Compensation plans

46.3%

24.2%

63.1%

54.8%

67.8%

60%

15.5%

25.8%

13.6%

11.4%

Table 5

Incentives and satisfaction

with ability to measure

marketing ROI

Satisfied

Dissatisfied

Incent employees

Incent marketing vendors

37%ofrespondentsdidnotincludeanymention

o nancial outcomes when asked to dene what

marketingROImeantfortheirownorganization


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0 10 20 30 40 50 60 70 80 90

Culture

Leadership

Data

Tools

Skills

Process

72.4%

52.2%

88.9%

51.0%

87.3%

52.6%

81.8%

56.1%

77.1%

47.1%

81.5%

49.0%

Table 6

Importance of drivers and

barriers to measuring

marketing ROI

Drivers

Barriers

All the respondents considered leadership and data the most important drivers o success

inmeasuringmarketingROI(Table6).Whilelittledifferencewasfoundintheuseofdataby

those satised and not satised with their ability to measure marketing ROI, there appear to

bedifferencesinleadership.OrganizationssatisedwithmeasuringmarketingROItendto

usemoremetricsingeneralthanorganizationsthatarelesssatised(Table7)andtheir

leaderssetmeasurableobjectivesformarketingactions(Table8).

0 10 20 30 40 50 60 70 80

Set measurable objectivesfor all campaigns

Audience metrics

Channel engagementmetrics

Universal engagementmetrics

Financial metrics

No metrics

56.1%

21.1%

60.0%

20.0%

75.0%

18.8%

54.3%

14.3%

58.6%

21.2%

11.8%

58.8%

Table 7

Use of metrics and

satisfaction with ability to

measure marketing ROI

Satisfied

Dissatisfied


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0 10 20 30 40 50 60

Important tospend only when have

financial metrics

All right if somemarketing measured only

with engagement

Some aspects of marketing

cannot be measured

Marketing metrics acceptedby finance

If cut marketing by 10%,know sales impact

54.0%

21.0%

47.8%

26.3%

46.7%

26.2%

57.9%

18.7%

48.6%

26.8%

Table 8

Attitude toward metrics

and satisfaction with ability

to measure marketing ROI

Satisfied

Dissatisfied

Achieving success in measuring marketing ROIMeasuringmarketingROIformostorganizationsisaworkinprogress.Thefactormosthighly

associatedwithsatisfactionwithmeasuringmarketingROIistimespentworkingonit(Table9).

There appears to be a clear learning curve or understanding how to measure marketing ROI.

ContinuingtoworkonmeasuringmarketingROIdoesmovetheorganizationforward.Inaddition,

organizationssatisedwiththeirabilitytomeasuremarketingROItendtostaythere,whileother

organizationscanmovefromdissatisfactiontosatisfaction,evenovertwoyears.Among

organizationssurveyed,22%ofthosedissatisedbecamesatisedaftertwoyears,whileonly

3%ofthosewhoweresatisedbecamedissatisedoverthesameperiod.

0 10 20 30 40 50 60 70

8.3%

46.2%

51.2%

63.8%

Table 9

Years spent measuring

marketing ROI and satisfaction

with ability to measure

marketing ROI

Satisfied

0

Years

1-2 Years

3-5 Years

More than 5 Years


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OutcomesOrganizationsthatreportsatisfactionintheirabilitytomeasuremarketingROIutilizeitintheir

decisions, but they also understand that all decisions need not be made with marketing ROI

(Table8).Asonewouldexpect,theyaresavvierwithrespecttothenancialeffectsoftheir

marketing decisions and, or example, are more likely to be able estimate the nancial impact

o any cuts in their marketing budgets.

RecommendationsAbove all, get started. Start with the basics o determining marketing ROI so you will

createthelargestimpactonyourorganization:

Makesureyoureusingsomekindofmetricsonmostofyourmarketing.

Bereadytoinvestingettingsomekindofdatarelevanttoyourmeasures.

Makecoordinatingyourtraditionalanddigitalmediacampaignsagoal.

Setspecicmeasurableobjectivesforallyourcampaigns.

PutROIinstatedobjectivesforallyourvendors(sotheyknowyourexpectations

to retain them or to cut them loose).

LinkmarketingROItoemployeecompensation,perhapsabonus.

Starttodayasthepayoffandlearningcurvewilllikelytakeafewyears.

Then, move on to ROI best practices:

Makesureyourmarketingmetricsareacceptedbynance.

Makesureyourdatais:timely,actionable,linkedatthecustomer-level,

usedtopersonalizemarketingandtargetcustomers.

Shareyourdataacrossyourorganization.

22%areusingbrandawarenessastheirsole

measure to evaluate their marketing spend


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Conclusions

Chie Marketing Ocers ace a dynamic and challenging environment or marketing today. They

will nd no simple answers to eectively measuring marketing ROI amidst the growth o big data

and new digital marketing tools. Innovative marketing and eective measurement will both be

worksinprogressthatrequireleadership,agility,andconstantlearning.

To lead eectively, CMOs should ocus on ve key leadership imperatives:

1. Set objectives frst. It is critical that all marketing eorts be ocused on delivering on

key business objectives, or KPIs (key perormance indicators). Even with new technologies

likesocialnetworksandmobileadvertising,experimentationneedstoquicklygiveway

to ocused strategies linked to clear objectives that are set in advance.

2. Design metrics to ensure marketing is linked to those objectives. Once objectives are set,marketers need to develop appropriate metrics or any marketing eort that will be able

to measure whether and how it is succeeding. Last years metrics should not determine

what this years objectives can be. (I know how to measure it, so that must be my goal.)

Rather, marketers must be prepared to develop new metrics and new measurement models

as they develop innovative marketing programs, in order to clearly tie these to their

intended objectives.

3. Gather the right data or those metrics. Once metrics are set, they should be used to identiy

whattypesofdataarerequired.Marketersmustavoidthetemptationtoanalyzeorpurchase

data simply because it is available, brand new, or being promoted by a vendor. By starting

rom dened marketing objectives, and rom the metrics chosen to measure them, marketerscan clearly identiy which data they need, and which they do not.

4. Communicate to the entire organization what your objectives are, and how they are being

measured. With a process or eective marketing measurement in place, it is essential that

all relevant sta be aligned. That includes knowing what the rms key marketing objectives

are, knowing how they are being measured, and responding to incoming data in order to

continuously improve marketing eorts, and innovate new ones.

5. Evaluate and reward employees in part on how well objectives are achieved. Once employees

understandtheorganizationsmarketingobjectivesandthemetricsbeingusedtomeasure

them, evaluation and compensation should be linked in part to their measurable success.

By demonstrating that measurable results matter to everyone in the marketing department,CMOs give all employees the initiative to show leadership o their own at every stage o

the marketing process.


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About the Authors

David Rogers is the Executive Director o BRITE at Columbia Business School

and the aculty director o the schools Executive Education program on

Digital Marketing Strategy. He is the ounder and host o the Center on

Global Brand Leaderships acclaimed BRITE conerence on brands, innovation

andtechnology.Rogersisawidelyrecognizedleaderondigitalstrategyand

brands,knownforhisuniqueinsightsintocustomernetworks.Hislatestbook

is The Network Is Your Customer: 5 Strategies to Thrive in a Digital Age,

published by Yale University Press.

Rogers speaks at conerences worldwide on the ways that digital technologies

are transorming business strategy. He received the award or Brand

Leadershipatthe2009WorldBrandCongressandhasappearedonCNN,

CNBC, Marketplace, Reuters, MSN Money, and Channel NewsAsia. David

has advised and consulted on marketing and digital strategies or leadingcompanies in the consumer packaged goods, technology, pharmaceutical,

food&beverage,telecom,hospitality,non-prot,andmediaindustries.

Contact:[email protected]

Don Sexton is Proessor o Marketing and Proessor o Decisions, Risk, and

Operations, and Faculty Director, Center or International Business Education

and Research, Columbia University. His articles have appeared in numerous

journals such as the Harvard Business Review, Journal o Marketing, Journal

ofMarketingResearch,andManagementScience.Hisbest-sellingbooks,

Marketing 101 and Branding 101, have been translated into several languagesincluding Chinese, Turkish, Russian, Vietnamese, Polish, Romanian, and

Indonesian. Dons most recent book, Value Above Cost: Driving Superior

Financial Performance with CVA, the Most Important Metric Youve Never

Used(Wharton), explains how marketing drives nancial perormance and is

also available in Chinese.

HeservesontheboardoftheNY-AMA,isPresident-ElectoftheAssociation

forInternationalBusinessEducationandResearch(aconsortiumof33

universities), and is an advisor to the Marketing Accountability Standards

Board. He received the 2011 Marketing Trends Award or his work on

marketing and branding strategy. Don is the ounder o The Arrow Group,

Ltd., a company that has provided consulting and training services to such

companiesasGE,IBM,Unilever,Pepsi,Sony,DuPont,Pzer,Volkswagen,

Citibank,Boeing,andVerizon.Contact: [email protected]

Acknowledgements

Special thanks are due to Randall Ringer, President o the New York American Marketing Association, or proposing

this project, championing it, assembling the necessary partners, and guiding our eorts with expert advice and insight.

The study would not have been possible without the critical support o Leonard Murphy (GreenBook), Morgan Buckley

(Research Now), and Matthew Quint (Columbia Business School Center on Global Brand Leadership). Special thanks

to Kartik Pashupati and Melanie Courtright (Research Now) or the survey programming and elding, and to Sylvia Chu

and Michael Dudley (Verse Group) or the visual design o this report.


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About the Research Partners

The Center on Global Brand LeadershipwasfoundedatColumbiaBusinessSchoolin1999andhas grown into the leading global orum on brands. The mission o the center is to turn the

research and intellectual capital o academias oremost thinkers on branding into practical

toolsandinsightsforreal-worldapplication.TheCenterhasworkedwithawiderangeofsponsor

companies to develop a variety o thought leadership including: conerences, case studies, videos

and webinars, and sponsored research. More details at http://globalbrands.org. The Centers

fagship BRITE conerence on brands, innovation, and technology presented was ounded in

2008andispresentedeachspringatColumbiaUniversity.BRITE12includedJohnHayes

(CMO, American Express), Marc Speichert (CMO, LOreal USA), and Bob Gareld (host o On

the Media, editor or Ad Age). More details at: http://www.BRITEconerence.com

The New York American Marketing Association (NYAMA) helps marketing proessionals navigate

to success in todays dynamic business environment. We serve the marketing community by

giving members opportunities to push the boundaries o marketing, expand their skills and

exchange ideas with other experienced proessionals. The BRITE/NYAMA study is one example o

how we are contributing to the advancement o marketing. More details at: http://nyama.org

Research Now is the leading global online sampling and online data collection company. With

over6millionpanelistsin38countriesworldwide,ResearchNowenablescompaniestolisten

to and interact with real consumers and business decision makers in order to make key business

decisions. Research Now oers a ull suite o data collection services, including social media

sampling,andoperatestheValuedOpinionsPanelande-Rewards Opinion Panels. The

companyhasamultilingualstafflocatedin24ofcesaroundtheglobeandhasbeenrecognized

or our consecutive years as the industry leader in client satisaction. Visit www.researchnow.com

to learn more.

GreenBook brings stimulating, practical, and timely resources to marketers and market

researchersonbothsidesofthetable.Throughitstargetedmulti-mediaplatform,GreenBook

oers eective marketing and lead generation opportunities to businesses that communicate

with buyers and users o market research. More details at: http://www.greenbook.org

Center on Global Brand Leadership

Documents

2012 Brite Nyama Marketing Roi Study