Establishing a metrics mindset to improve effectiveness and guide marketing decision making.
Marketing, long considered a cost center, has come under increased scrutiny in recent years. Company finance officers are asking marketing leaders to demonstrate a positive return on investment for each marketing program and for the marketing budget as a whole. At the same time marketing departments lack the tools to track and measure results and have not universally embraced using ROI analysis to track program results.
MarketSphere sponsored the 2009 Lenskold Group Marketing ROI and Measurement Study to further understand how marketers implement marketing governance and how they organize their marketing operations. 41% of companies surveyed have still not adopted financial ROI measurement practices, while others only depend on traditional financial measures like “percent over/under budget” or traditional marketing measures like response rate and conversion rate to explain performance. The report shows a clear correlation between companies that are “highly effective and efficient” marketers and the use of financial ROI measurement. As well, many of these same companies have a marketing operations department charged with marketing governance, project management, shared services, and a liaison role with marketing finance and IT.
MarketSphere helps companies track and manage their marketing investments through implementation of marketing resources management software applications, through collection and analysis of financial and operational data, and through establishment of best practices for marketing governance. As well we help companies collect program results information that, when paired with marketing budgetary information, helps marketing executives decide the mix of investment in marketing tactics that yield the highest possible return on investment.
On the cost side, MarketSphere Marketing Supply Chain professionals help companies manage marketing spend. Through a thorough analysis the marketing supply chain, MarketSphere identifies opportunities for consolidation of services and vendors, and works with a company’s procurement department to reduce the cost of marketing programs.
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