July 9, 2013

The 15 Metrics Every Marketer Should Know

“Organizations that embrace marketing metrics and create a data-driven marketing culture have a competitive advantage that results in significantly better financial performance than that of their competitors” – Mark Jeffery.

Big Data is more than just a buzzword. As was pointed out in our latest whitepaper, Reclaiming Marketing Innovation, the Modern CMO imperative, most of the talk around is still around managing rather than mining it, but surely, big data will change marketing forever. It will change strategies, interactions and channels.

According to the Gartner report, by the year 2017, CMOs will spend more on IT than their counterpart CIOs. Marketing is becoming increasingly technology-based. Harnessing and mastering Big Data is now the key to achieving competitive advantage. Many marketing budgets already are larger –and faster growing –than IT budgets.

As pointed out by Nancy Costopulus, CMO of the AMA:

“Marketers need to better communicate with IT by helping them understand what the real business need is and the rationale to support it.  Marketers also must demonstrate to IT that the business strategy is at the forefront and that the customer is at the center of their decisions.  On the other side, IT needs to better understand that marketers are ultimately responsible for business growth and innovation and join forces for the best road to success.”

It is crucial for the CMO and CIO to work together for the better of their organization.

This leads me to our next blog series, which was inspired by the book, Data Driven Marketing, the 15 Metrics Everyone in Marketing Should Know, by Mark Jeffery. In this book, Jeffery lists out the 15 most important metrics that Marketers should be using. Our team at Covalent Marketing is extremely passionate about data and we want to share our love of data with our wonderful readers. Therefore, each member of our team has put together a summary of one of these 15 metrics, to show how you can use them to continue towards innovation and quality in almost any organization.

The 15 metrics we’ll be discussing over the next month and a half include:

The essential non-financial metrics:

Brand Awareness Test Drive Churn Customer Satisfaction Rate Take Rate

The essential financial metrics:

Profit Net Present Value Internal Rate of Return Payback Customer Lifetime Value

The “new – age marketing metrics”

Cost Per Click Transaction Conversion Rate Return on Ad Dollars Spent Bounce Rate Word of Mouth

So come on back to our blog every Monday, Wednesday and Friday through August 14th and check out the metric we are talking about and why your marketing department should look into it!