A study we did recently among the CEO’s and Marketing Directors in Finland found that
1) 93% of CEO’s and Marketing Directors in Finland see data-driven marketing as crucial to the success of their company, and
2) The TOP 1 concern was the how to measure the profitability of marketing reliably. (read more of the research here)
We were very excited due to the results. First, because adapting data driven approaches will mean good things for marketing and companies in Finland; and second, because the tools for reliable marketing performance measurement are there at peoples grasp, whether your target is short term revenue gains or long term brand impact (and following revenue gains), or both.
What Are the Gains You can Expect from Adopting Basic Data Driven Marketing Approaches?
It is no wonder that companies see data driven marketing as crucial to their success.
Based on the examination of over 300 marketing ROI measurement and optimisation projects, the gains from using data as the base of marketing decision making can be over +25% improvement in marketing ROI in the 1st year, with and average improvement being +18%.
Take a look at the infograph below, on how the results split between different types of results and changes done to the marketing mixes:
You can read more of the study the infograph is based on in this article. To hear more of the benefits data driven approaches we’d recommend you to view the video where McDonald’s Finland describes how they have built competitive advantage through data driven marketing and how important part of the process marketing mix modeling is.
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How Can You Measure Marketing Performance Reliably?
At its best marketing is measured in an end-to-end approach: from activity to financial results, and everything between. This might sound like a long cry, but is actually relatively easy to accomplish.
We also encourage to measure marketing at the macro level – meaning measuring marketing effectivity across all channels and parts of activity mix, and at the micro level – meaning measuring effectivity on a channel or activity level.
Why like this? Based on all the client engagements we have done this gives the best overall possible results for return on investment and is agile enough for companies wanting to adapt to the current pulse of their customers and competitors (meaning sometimes even real-time measurement).
How do you then go about measuring the overall effectivity of marketing? The key pain point of CEO’s and Marketing Directors in Finland.
Take a look at this this step-by-step presentation on how the effectivity of marketing is constructed with example report on the benefits a marketing mix performance analysis project (in Finnish only for the moment, sorry for this).
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