• Marketing Crisis in Confidence?

    For the typical company, more than 8% of revenue is reinvested in marketing each year to assure that new customers and markets are acquired, existing customers remain loyal, and revenue streams continue to grow.As customers grow more empowered via on-line resources and ecommerce, marketing becomes even more important to achieving revenue and growth goals, making it more critical than ever to get the marketing investments right.

    Marketers Not Getting Respect They Deserve

    However, recent studies indicate that senior executives feel these significant marketing investments are less than efficient or effective.

    Ever more skeptical and frugal executives are asking serious questions as to whether marketing investments are paying off. A decided lack of confidence in marketing exists amongst C-level executives.

    Executives are seeking accountability, questioning whether marketing is meeting goals, such as:

    • Driving revenue growth?
    • Increasing customer retention and loyalty?
    • Improving brand image and sentiment?
    • Increasing competitive advantage?
    • Operating efficiently, generating expected benefits from incremental investments?

    Often the answers to these critical questions are not available, leading to the current crisis in confidence.

    Quantifying how marketing is meeting goals and driving business contribution is crucial, yet most marketers fall short on expected accountability requirements. This is clearly illustrated in a VisionEdge/Marketo study, where  CEOs were asked how well their marketing departments were doing in managing their budgets and delivering on business goals, and 67% of the CEOs gave their marketing departments a B or C – mostly because of issues in accountability versus actual performance

    However, recent studies indicate that senior management feels these significant marketing investments are less than efficient or effective.

    As a marketer, you know that your campaigns are delivering good results, and that additional investments could generate big rewards. So how can you remove the skepticism and gain the respect you deserve from senior executives?

    According to Forrester, the answer is economic justification – with over 75% agreeing or strongly agreeing that their “ability to track marketing ROI gives marketing more respect.”

    The Bottom Line

    Marketing investments are a significant budget line item. As such executives looking to improve the bottom-line are sure to look to marketing to contribute their fair share to belt tightening.

    Unfortunately, most marketers do not make a good case for maintaining and growing their budgets. Most rely on reporting soft performance measurements – failing to tie marketing investments to top line growth and bottom-line improvements. This has led to a severe crisis in confidence.

    With C-level executives more skeptical and frugal than ever before, best practice marketers are stepping up to deliver accountability measures beyond the typical activity and lead generation performance, quantifying how marketing has helped to drive tangible competitive advantage and ROI.

    Tom Pisello, The ROI Guy, and Chairman and Founder of Akonna, has been developing measurement software for ROI and economic justification for the past 20 years.  Tom’s newest creation, Akonna, is an emerging Saas provider for measuring, proving and improving the ROI of marketing campaigns and social media efforts.  For more information about Akonna, please visit www.akonna.com.

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